the world bank public sector capacity and...

The World Bank Public Sector Capacity and Performance for Service Delivery (P145261)

Regional Vice President: Makhtar Diop Country Director: Paul Noumba Um

Senior Global Practice Director: Deborah L. Wetzel Practice Manager/Manager: Guenter Heidenhof

Task Team Leader: Ragnvald Michel Maellberg

REPORT NO.: RES24580

DOCUMENT OF THE WORLD BANK

RESTRUCTURING PAPER

ON A

PROPOSED PROJECT RESTRUCTURING

OF

PUBLIC SECTOR CAPACITY AND PERFORMANCE FOR SERVICE DELIVERY

APPROVED ON MARCH 31, 2014

TO

REPUBLIC OF NIGER

GOVERNANCE

AFRICA

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ABBREVIATIONS AND ACRONYMS

AFD: Agence Française de Développement (French Development Agency) AfDB: African Development Bank AFRITAC: African Regional Technical Assistances Centers BCEAO : Banque centrale des états de l’afrique de l’ouest (Central Bank of the West African States) BL: Budget Law CPIA: Country Policy and Institutional Assessment DLI: Disbursement Linked Indicator DLR: Disbursement Linked Result EEP: Eligible Expenditure Program ENAM: Ecole nationale de l’administration et de la magistrature (National School of public administration and

judiciary) EU: European Union FA: Financing Agreement FM: Financial Management FSEJ: Faculté des sciences économique et juridique (University for economics and legal sciences) FTPS: Fund Transfer and Payment Systems GPSA: Global Partnership for Social Accountability GTZ: German Technical Cooperation Agency HR: Human Resource HRM: Human Resource Management HRMIS: Human Resource Management Information System IDA: International Development Association IDP: Internally Displaced People IMF: International Monetary Fund ISR: Implementation Status and Results Report LASDEL: Laboratoire d’Etudes et de Recherches sur les Dynamiques Sociales et le Développement Local (Center for

Studies and Research on Social Dynamics and Local Developement) M&E: Monitoring and Evaluation MoP: Ministry of Planning MTEF: Medium Term Expenditure Framework NMES: National Monitoring and Evaluation System NOC: Network Operations Centres NSI: National Statistics Institute OCED: Organization for Economic Cooperation and Development PCDS: Public Sector Capacity and Performance for Service Delivery PCU: Project Coordination Unit PDO: Project Development Objective PEFA: Public Expenditure and Financial Accountability PFM: Public Financial Management PIM: Public Investment Management PMIS: Procurement Management Information System PPF: Project Preparation Facility PR: Performance Report RBF: Results Based Financing


SDI: Service Delivery Indicator SDR: Standard Drawing Right SICA : Système Interbancaire de Compensation Automatisé (Interbanking automatic compensation system) SIGMAP: Système Intégré de Gestion des Marchés Publics (Integrated Public Procurement Management

Information System) SORT: Systematic Operations Risk Rating Tool STAR: Système de Transfert Automatisé de Règlement (Automatic transfert of payment system) TSA: Treasury Single Account UEMOA: Union économique et monétaire ouest africaine (WAEMU) UoM: Unit of Measure USAID: United States Agency for International Development US$: United States of America Dollar VAT: Value Added Tax WAEMU: West African Economic and Monetary Union


BASIC DATA

Product Information

Project ID Lending Instrument

P145261 Investment Project Financing

Original EA Category Current EA Category

Not Required (C) Not Required (C)

Approval Date Current Closing Date

31-Mar-2014 31-Dec-2018

Organizations

Borrower Responsible Agency

Republic of Niger Ministry of Finance

Project Development Objective (PDO)

Original PDO The project development objective is to strengthen public investment management capacity and civil servant performance evaluation processes in targeted ministries in order to improve service delivery outcomes Summary Status of Financing

(US$ Millions) as of 07-Jun-2016

Ln/Cr/Tf Approval Signing Effectiveness Closing Net

Commitment

Disbursed Undisbursed

IDA-H9310 31-Mar-2014 29-Apr-2014 29-Sep-2014 31-Dec-2018 40.00 4.34 32.64

Policy Waiver(s) Does this restructuring trigger the need for any policy waiver(s)? No

I. PROJECT STATUS AND RATIONALE FOR RESTRUCTURING


A. SUMMARY

1. This restructuring paper seeks the approval of the Executive Directors for the restructuring of the Niger Public Sector Capacity for Performance for Service Delivery Project – PCSD (P145261/Grant Number H931-NE). The proposed level 1 restructuring includes: (i) a revision of the Project Development Objective (PDO) and the results framework; (ii) a revision of the components and activities; (iii) a revision of the implementation arrangements; (iv) an extension of the closing date from December 31, 2018, to December 31, 2020; and (v) a reallocation of proceeds. The proposed restructuring seeks to align the project with emerging priorities of the Government of Niger and to address issues that have resulted in implementation delays during the first two years of the project and weak results. The project does not have any audit reports or Interim Financial Reports overdue. The activities to be carried out during the extended period of time has been identified and a procurement plan, reviewed and found to be satisfactory to IDA, has been prepared for the implementation of these activities. The proposed modifications of the project are consistent with the Government’s formal request to restructure the PCSD1. The Financing Agreement will be amended. After the approval of this extension, the age of the project will be six years and nine months.

B. PROJECT STATUS AND RATIONAL FOR RESTRUCTURING

2. The project financed with an IDA grant of originally US$40 million equivalent of SDR 26.1 million with the objective to “strengthen public investment management capacity and civil servant performance evaluation processes in targeted ministries in order to improve service delivery outcomes”, was approved by the Board on March 7, 2014. It was signed on April 29, 2014 and was declared effective on September 29, 2014. Originally, the project was structured around two components; one component based on results based financing for programs for service delivery (US$25 million) and one providing financing for technical assistance (US$15 million).2

3. The Government requested to revise the design, the institutional arrangement and funding allocations of the project taking into account challenges in implementation and new policy priorities. This restructuring of the project was requested by the Government of Niger in the letter to the World Bank dated March 2, 2016. This restructuring is justified by the slow progress towards the achievement of project results due to shortcomings in the project’s design, complex implementation structure, weaknesses in the implementation capacity and lack of ownership by the project’s beneficiaries. It is also based on the Government’s new reform priorities focusing on (i) improving Human Resource Management (HRM); (ii) consolidating the ongoing Public Finance Management (PFM) reforms; and (iii) strengthening revenue mobilization. At the request of the Government, the restructured project will move from the initial focus on civil servant performance and public investment management to assisting the administration in addressing fundamental challenges in Niger’s public finance management system. The new strategic orientation of the project is also reflected in changes of the project’s institutional anchoring from the Ministry of Planning to the Ministry of Finance with the latter overseeing revenue mobilization, PFM and the

1 Letter 0325/MEF/DGER dated March 2, 2016 2 The first component supports activities identified in 12 selected Eligible Expenditure programs (EEPs) that are part of the Nigerien Government’s annual budget and address public sector capacity as well as reform priorities in sector programs. Funding of the EEPs is results-based and depends on the achievement of the program results measured against 13 Disbursement Linked Indicators (“DLIs”). The second component seeks to facilitate the achievement of the program results by focusing on capacity development and technology. Funding of this component is input based and not linked to the DLIs.


expenditure management side of HRM reforms. The dialogue related to the restructuring of the project started in September 2015 and resulted in the official request for the restructuring in March 2016.

4. The Project Development Objective and Implementation Progress were both rated Moderately Unsatisfactory in the last Implementation Status Report (ISR). This is a reflection of the low level of disbursements, in total only 12 percent two years following Board approval3. No disbursements have been made under the Results Based Financing (RBF) component (Component 1). Under the Technical Assistance component (Component 2), only one key activity, the Service Delivery Indicator (SDI) Survey for Health and Education, has been carried out as well as some trainings and study tours and the establishment of the Project Coordination Unit (PCU). The achievement of the PDO and the implementation progress has been undermined by a number of factors:

a. A complex project design. Despite the project’s innovative approach focused on results based financing and change management, it had a number of weaknesses related to its design: (i) complex institutional arrangements involving a Ministerial level steering committee, a technical steering committee, a Project Coordination Unit, as well as 13 results teams, responsible to manage the 13 Disbursement Linked Indicators (DLI) and 12 Eligible Expenditure Programs (EEP), involving more than 40 Ministries and institutions and with a special focus on Agriculture, Health and Education; (ii) a weak link between the results based financing component and the technical assistance component, as well as a weak link between activities to be funded by the EEPs and the DLIs; (iii) an intricate results based financing mechanism with insufficient clarity in terms of rules, procedures and responsibilities for implementing EEPs and achieving DLI in a low capacity environment with little RBF experience; (iv) the absence of a sufficient number of numerous budget codes for the EEPs hampering the budgeting, execution and release of funds triggered by several DLIs; (v) the lack of mechanisms to prepare, implement and monitor the EEPs and the activities they were supposed to finance; and (vi) an overly ambitious results framework (RF) composed of 33 indicators of which 13 DLIs. Additionally, several indicators were beyond the scope of the project and 40 percent of the DLIs could not be measured by existing Government systems in a timely manner contributing to significant disbursement challenges.

b. Institutional instability. Since the project was approved, there has been a high level of institutional instability. The Ministry of Finance and Planning was first merged to a Ministry of Economy and Finance in August 2015 and then split into a Ministry of Finance and a Ministry of Planning following the Presidential and Legislative elections in the spring of 2016. This has resulted in two protracted periods of temporary institutional attributions and responsibilities which adversely affected project decision-making.

c. Low level of technical preparedness. Delays in implementing the Project Preparation Facility (PPF) resulted in a low level of technical preparedness at project start with insufficiently defined activities and the absence of a credible procurement plan. Furthermore, following a lengthy recruitment process of the Project Coordination Unit (PCU) staff, the Unit was only fully operational a year after the project’s Board Approval. Additionally, the steering committee, charged with the project’s oversight, coordination and strategic decisions, was only established late in March 2015 and has met once since it was established.

d. Limited ownership of the initial project design. Insufficient stakeholder involvement during preparation of the original project combined with little experience with results based financing instruments led to a low level of ownership of the initial project design. Additionally, an inadequate level of communication and coordination among the project stakeholder led to a lack of regarding the project implementation which further reduced

3 As of August 2016, the project’s disbursement was at 11.6 percent (SDR 3 million (equivalent to US$4.3 million at the August 2016 exchange rate) out of the signed amount of SDR 26.1 million (equivalent to US$36.5million at the August 2016 exchange rate)). Due to exchange rate fluctuations the project financing in US$ diminished from US$40 million in March 2014 to 36.5 million in August 2016.


stakeholder ownership of the project. Project beneficiaries consequently found it difficult to implement the project.

5. Government has confirmed its commitment to improving revenue performance and managing public finance, as well as human resources by enhancing administrative and technical capacity in view of strengthening the administration’s service delivery capacity; this features as the cornerstone of the restructured project. The recent increases in wage bill spending and transfers, compounded by a weak performance in revenues due to shortfalls in natural resource and custom revenues, has placed fiscal pressure on the Government, hampered economic growth and limited the possibility to expand service delivery. The newly elected Government considers the restructured project as an important instrument in its effort to pursue fiscal consolidation, critical PFM reforms and human resource management reforms as reflected in its 2017 budget orientation. In accordance with the 2009 Western Africa Economic and Monetary Union (WAEMU) directives, which have been transposed in Nigerien law, the Government seeks to shift towards multi-year program based budgeting. The proposed restructured project puts a particular emphasis on supporting these reforms as well as reforms targeting improved tax and customs administration, human resource and wage bill management. Moreover, the project’s new strategic orientation was confirmed by its stakeholders at a series of seminars that sought to discuss and endorse the objectives of the project.

6. In July 2016, the World Bank and the authorities agreed on restructuring principles. The agreement was to revise the PDO and components, project institutional anchoring, activities and funding arrangements, results monitoring framework, and as a result a consolidation of the procurement plan. The restructured project supports reforms that (i) set the groundwork for effective performance based human resource management by focusing on the management of the public sector wage bill and basic human resource management; (ii) focus on core aspects of public finance management (budget procedures, information technology, public investment monitoring and evaluation, treasury management and payments systems); (iii) address Government’s priorities on domestic resource mobilization by enhancing the value added tax (VAT) system; and (iv) build synergies to other programs and project such as the Development Policy Lending Series, education and health sector projects and other projects supporting governance reforms (including the Global Partnership for Social Accountability (GPSA) funded project “Budgets are More than Money In, Money Out”).

II. DESCRIPTION OF PROPOSED CHANGES

7. The changes presented for Board approval of the proposed Level 1 restructuring are: (i) a revision of the Project Development Objective (PDO) and the results framework; (ii) a revision of the components and activities; (iii) a revision of the implementation arrangements; (iv) an extension of the closing date from December 31, 2018 to December 31, 2020; and (v) a reallocation of proceeds. The proposed changes seek to address the issues that have adversely affected project implementation over the past two years. Implementation arrangements will also be modified to reflect the new institutional setup. Owing to implementation time lost during the initial phase of the project a 24-month extension of the closing date of the project is requested. The restructured project remains fully aligned with the World Bank’s Country Partnership Strategy for 2013-2016 (Report number 76232) for Niger by supporting its cross cutting pillar on governance and capacity building for public service delivery.

C. PROJECT DEVELOPMENT OBJECTIVE AND RESULTS FRAMEWORK


8. The original Project Development Objective (PDO) is “to strengthen public investment management capacity and civil servant performance evaluation processes in targeted ministries in order to improve service delivery outcomes.”

9. The revised PDO is “to strengthen public finance and human resource management to improve service delivery capacity in selected sectors”. The new PDO reflects Government’s renewed commitment to consolidate core public finance and human resource management reforms that are broader than “public investment” management and, hence, will build the foundation to support public investment management. As the prerequisites for the “civil servant performance evaluation processes” are not yet in place (comprehensive and accurate database for civil servants and employees of the State, management tools, information systems including payment systems), the restructured project will focus on capacity building to better manage HR, thus building the foundation for performance evaluation. In addition, the restructured project will target public sector agents, including civil servants, contract workers and alternative civil service workers (“service civic”), in lieu of the initial project’s scope focusing on “civil servants. Moreover, the project is narrowing its focus to targeted Ministries and Agencies in Education and Health as pilots to enhance processes and management systems – notwithstanding, support to broader structural reforms that will benefit the overall administration. Lastly, the restructured project does not focus on “service delivery outcomes” but on capacity delivery, which will impact service delivery outcomes in the medium and longer term.

10. To achieve the revised PDO, the restructured project reflects a shift in approach compared to the original project (see Chart 1). The restructured project will support the Government in strengthening core capacities of public sector agents while building the necessary operational systems for public and human resource management to create the needed foundation for sustained reform implementation. In doing so, it will directly support (i) the modernization of human resource management including wage-bill management; (ii) identifying training needs in the administration and tailoring the supply of training accordingly, using local institutions to provide the training; (iii) piloting incentive systems for teacher deployment; (iv) planning and budgetary processes including budget-program reforms; (v) public investment management; (vi) procurement processes, execution and control; (vii) tax and customs administration reforms including reforms to improve the VAT system; (viii) cash management and treasury payment systems; (ix) budgetary and treasury information systems; (x) the setup of a national monitoring and evaluation system; (xi) access to information and improved transparency and, (xii) leadership enhancement and support to change management in the public sector. It will be measured through the revised Results Framework (see Annex 1).

Chart 1: Key changes in the project


11. In line with the proposed PDO revision, a modified results framework (RF) is proposed which takes into account the changes in project activities and components and that will better reflect project outputs and outcomes. Following the principle of a simplified, coherent and measurable RF with a clear articulation of expected outputs and outcome, the following changes are proposed: (i) introducing five new PDO indicators that are outcome orientated and relevant for the revised PDO instead of the original six PDO indicators; (ii) replacing the 13 Disbursement Linked Indicators (DLIs) and 12 Eligible Expenditure Programs by one new DLI which is output oriented to ensure the timely disbursements and one Eligible Expenditure Program; (iv) replacing the 25 intermediate indicators by 12 new intermediate indicators as the former have become either irrelevant or are difficult to measure; and (v) taking into account the slow implementation pace, introducing new targets that reflect measurable and realistic results.

Table 1: Original and new PDO Indicators Type Original project Restructured project PDO 1 Investment budget execution rate (%) (outcome) Share of public sector agents paid through the

new HRMIS, in % (outcome) PDO 2

Proportion of civil servant managers appointed by Decree in the Ministries of Finance, Planning and Civil Service that are evaluated on the basis of results-based individual performance contracts (%) (Outcome)

Expenditure outturn in education, in % (outcome)

PDO 3 Increase in irrigated cereal crop production (tons) (impact)

Expenditure outturn in health, in % (outcome)

PDO 4 Utilization rates of curative care (%) (impact) VAT efficiency, in % (outcome) PDO 5 Primary Completion Rate (PCR) (disaggregated for

girls) (%) (impact) Access of the public to the budget documentation, (outcome)


Type Original project Restructured project PDO 6 Direct Project Beneficiaries, (number), of which

female (%)(output)

Table 2: Revised Eligible Expenditure Programs (EEP) and Disbursement linked Indicators (DLI)

Sector Original project Restructured project

HRM – Public administration

EEP 1: Development of Human Resources Performance Evaluation System

Sector: PFM reforms EEP 1: Support to reforms of the tax and customs administration DLI: Key reforms of the tax and customs administration

DLI 1: Procedures for open, competitive and merit-based performance management have been designed by the Civil Service Ministry together with High Commission for State Modernization in accordance with the Civil Service Organic Law (Law 2007-26 dated July 23, 2007) (output) DLI 2: Proportion of civil servant managers appointed by decree in the Ministries of Finance, Planning and Civil Service that are evaluated on the basis of results-based individual performance contracts. (outcome) DLI 3: Number of ministries in which results-based action plans (performance contracts) linked to the PDES have been developed. (output)

Public Financial and Investment management.

EEP 2. Establish coherent and realistic global and sector MTEFs EEP 3.Strengthen capacity for planning and execution of public procurement EEP 4: Rationalize and improve cash flow management EEP 5: Strengthen capacity for planning, programing, monitoring, and evaluation of development programs. DLI 4: A National Medium Term Expenditure Framework rated with a score of C or higher (using the PEFA PI-12 standards of the 2012 Public Expenditure and Financial Accountability Assessment) is included in the Budget Law adopted by the National Assembly. (outcome) DLI 5: Rate of execution of investment budget of the Ministry of Agriculture. (outcome) DLI 6: Rate of execution of investment budget of the Ministry of Health. (outcome) DLI 7: Rate of execution of investment budget of the Ministry of Primary Education. (outcome)

Agriculture

EEP 6: Improve productivity and revenue generation in irrigated areas EEP 7: Improve productivity of rain-fed agriculture DLI 8: Proportion of cultivated land on which certified improved seeds are used. (impact) DLI 9: Area under small scale irrigation (additional hectares compared to previous year). (impact)

Health EEP 8 : Improve staff deployment across the country


EEP 9: Improve provision of medicines and key medical inputs EEP 10: Governance and Leadership DLI 10: Proportion of integrated health centers with staffing levels according to the established national norms. (impact) DLI 11: Frequency of stock outs based on the reference list of the most essential medications at the level of the integrated health centers. (outcome)

Education

EEP 11. Improve teacher deployment and management EEP 12. Information System and M&E DLI 12: Teacher/student ratio. (impact) DLI 13: Proportion of qualified teachers. (impact)

D. COMPONENTS AND ACTIVITIES

12. The proposed change of the components refers to introducing a functional orientation of the components around Human Resource Management, Public Financial Management and Change Management; this requires the replacement of the two initial components by three new components. The initial components one “Supporting Programs for Service Delivery Results” and two “Technical Assistance for Capacity Development” will be dropped and replaced by the following three components: (1) “Improve Human Resource Management”; (2) “Strengthen Public Financial Management” and (3) “Change Management» (see Table 3 below). The structure of the new components has been designed to improve clarity in terms of reform areas supported by the project and available financing, which is expected to facilitate project implementation. There are strong linkages between the HRM and PFM component and the change management component will provide complementary assistance to HRM and PFM reforms. Activities that will be funded under the proposed restructured project have been clearly identified and formulated to ensure that they will contribute to the achievement of the project’s objective (see Table 4 below). A detailed description by component is presented in Annex 1.

Table 3: Financing of the Original Components and proposed changes (million)

Original Project US$4 SDR Proposed changes Restructured Project US$5 SDR

#1. Supporting Programs for Service Delivery Results

25.0 16.3 Dropped

#2. Technical Assistance for Capacity Development

15.0 9.8 Dropped

New #1. Improve Human Resources Management

15.0 9.8

New #2. Strengthening Public financial Management

12.9 8.4

New #3. Change Management

12.1 7.9

Total Cost 40.0 26.1 Total Cost 40.0 26.1

4 Exchange rate of February 2014 (original exchange rate) 5 Exchange rate of February 2014 (original exchange rate). Due to exchange fluctuations, the total amount in US$ at current exchanges is US$36.5 million.


13. Table 4 provides details of the proposed changes in components and activities.

Table 4: Summary of proposed changes in components and activities Original project Restructured project

Component 1 – DROPPED: Supporting Programs for Service Delivery Results No activities have been implemented under this component. Initial activities will be either mainstreamed across all three new components or will be dropped. The original project supported under this component: A.) Core public sector reforms (i) for the development of a HR performance evaluation system and (ii) in the areas of coordination, PIM systems, formulation, M&E of projects and programs and establishment of budget management tools. (i) Most activities will be continued under the new Component 1. The development of results-based performance contracts for civil servant managers will be dropped as the new project will pilot an institutional approach to performance management. (ii) Most activities will be revised and continued under the three new Components, including all training related activities (Component 1), procurement plans, cash flow management, the establishment of a database of investment projects and the improvement of the information system (Component 2). B.) Agriculture sector to (a) enhance agricultural productivity and revenue generation in irrigated areas and (b) improve productivity of rain-fed agriculture. The sub-activity related to enhancing sectoral capacity in public investment will be conducted under Component 2. All other activities addressing agriculture productivity will be dropped given the project’s revised scope. C.) Public Health to (i) improve HR deployment, (ii) provide medicines and key medical inputs and (iii) promote governance and leadership. Activities related to competent HR and provision of medicines and key medical inputs have been dropped while others related to the reform of the pharmaceutical agency SONIPHAR and planning, M&E, governance and leadership have been revised and transferred to the new Component 1 and 2. D.) Education to (i) improve teacher deployment and management and (b) strengthen information system and

Component 1- NEW – Improve Human Resources Management (HRM) This Component will host activities initially planned under both original Components 1 and 2. It will support the modernization of the HRM by updating the regulatory framework. Initial activities pertaining to training of public servants on public administrations, such as planning, budgeting, budget execution, M&E, procurement, tax management and customs administration will also be conducted under this component. It will launch the dissemination and public debate on the social service indicators in the education and health sectors. The component will introduce new activities: The project will (i) develop and implement the National HR and Management strategy and focus on modernizing HR planning and management tools; (ii) roll out the integrated HRM Information System (HRMIS) in target ministries at the central and regional level; (iii) carry out a large scale biometric identification operation to register all government employees; (iv) pursue the introduction of a pilot incentive system to improve staff deployment in the education sector and (iv) conduct a study about the pooling of teachers in higher education.


Original project Restructured project M&E. Both activities will be pursued under the new Components 1 and 3. Component 2 – DROPPED: Technical Assistance for Capacity Development. Only three activities under this Component were implemented (establishment of the PCU, one SDI survey in the education and health sector and some training including study tours covering areas such as PEFA and HRM).

The original project supported under this component:

A.) Information Systems and Equipment: (i) upgrading the planning and M&E systems in selected ministries, (ii) interconnecting planning and financial management systems; (iii) consolidating the information systems managed by the National Statistical Institution (NSI), (iv) development of a one-stop customs and anti-money laundering information management systems and (v) three SDI surveys.

Most activities aiming to install and upgrade modern information systems will be transferred to Component 3. Support to the NSI will be provided as part of the support to establishing the NMES. The development of a tailored one-stop customs and anti-money laundering information management systems will be dropped as it is not part of the new project’s scope. The project will also fund one rather than three SDI surveys. The dissemination of the SDI data and debate, initially planned under the original project, will be conducted under the new Component 1.

B.) Change Management, including (a) the application of change management tools and (b) training and coaching in leadership, results-based management, and rapid results (with the focus of strengthening of change communications, performance evaluation, internal organization and administrative procedures).

All related activities will be revised under the Component 3 with the objective to identify realistic and achievable activities adopted to the country context.

C.) Training, strengthening (a) the capacities of civil servants in targeted areas and (b) national training institutions, including when needed, establishment of partnerships with foreign institutions.

Component 2 –NEW- Strengthening Public Financial Management (PFM)

The activities will be refocused to ensure timely implementation and alignment with Government’s priority reforms. Activities pertaining to budget planning, programming and execution will be aligned with the new budget program reform. Additionally, the component will focus on capacity building in procurement, revisions of the procurement regulation and installing the SIGMAP to enhance procurement execution. Activities in support of treasury management will focus on the operationalization of electronic fund transfer and payment systems (FTPS) and the introduction of the Treasury Single Account (TSA). As planned in the original project, public investment M&E will be strengthened by (i) setting up a comprehensive database of internal and externally funded public investment programs and (ii) developing tools for the assessment of these programs to facilitate mandatory preliminary studies (economic and technical feasibility, and environmental and social impact) and (iii) conducting an evaluation of the 2014-2019 investment programs.

New activities aiming to (i) strengthen tax and custom administration with a special emphasis on VAT reforms (ii) increase transparency and control in procurement including publishing of procurement information and audits and (iii) improve external control (conducting of audits of ANAB, SONIPHAR, performance audits and preparing financial accounts) will be also introduced to support Government in undertaking key reforms.

Component 3 –NEW “Change Management”

This component will continue to pursue the following activities: (i) the improvement of the information system by setting up data centres and focusing on pooling of e-governance systems, (ii) setting up a national M&E system including support to the Directors of Studies and Planning, (iii) conducting performance audits in selected ministries, (iv) promote


Original project Restructured project All training related activities will be transferred to Component 1

D.) Technical assistance for coordination, planning, programming, M&E, improving (a) the coordination function of MoP, (b) investment planning and programming, (c) M&E of projects and programs and (d) support to project implementation.

Taking into account the new operational and institutional set up of the project, all activities have been revised and mainstreamed across the three new components (notably under HRM, budget planning, procurement, IT and change management).

E.) Project Implementation Support, including the strengthening of the operating capacity of the M&E unit of the MoP.

This activity has been dropped. Training and TA activities will be conducted for the M&E Unit under the components “Improve HRM” and “Change Management”.

leadership and change management through training, seminars and exchange programs with other countries and (v) access to information, support in publication and dissemination of basic budget documents, internal and external communication on the reforms supported by the project and support to enhance the work environment

14. Project funding arrangements are better geared towards the implementation of the components and adapted to the needs expressed by the project stakeholders during the restructuring process. The proposed changes in the funding arrangements imply a substantial scaling down of the results-based financing (RBF) approach. This is justified by: (i) the client’s request to use RBF on a limited scale so that the concerned Ministries and Agencies can gain more experience in using the instrument; (ii) the technical challenges related to the use of RBF in a limited capacity environment and in a context of substantial macroeconomic and fiscal risk; and (iii) the significant share of technical assistance and training in the project.

15. As a result, under the restructured project, RBF will be piloted in support of reforms of the tax and customs administration, allowing the administration to gain experience in RBF. The implementation of RBF supported reforms, implemented under the new component 2, will be complemented with targeted technical assistance and will be managed by the existing reform unit in the Directorate General of Tax in the Ministry of Finance. Total RBF will represent 5.0 percent of total cost of the project and will finance eligible expenditures, against reaching the four targets of the DLIs. Eligible expenditures are limited to salaries and allowances of civil servants of the Ministry of Finance of which the Directorate General of Tax and the Directorate General of Customs are part of. This will allow to fund the staffing cost related to implementation of the reforms in the tax and customs administration that are supported by the project. All other financing in the restructured project will use standard World Bank procedures towards training, goods and services.

16. Building on the project’s initial broad training concept, the new design focuses on large-scale customized public service training in Niger. The project support will focus on strengthening the national training institutes in public administration, economy and public financial management and increasing training customized to the needs of the administration to improve public sector agent’s skills and qualifications.


E. INSTITUTIONAL ARRANGEMENTS

17. The proposed changes of the institutional arrangements are (i) the institutional anchoring of the Project Coordination Unit (PCU) at the Ministry of Finance; (ii) the revision of the composition of the Steering Committee; (iii) the replacement of the initial results teams and by the existing reform unit within the Directorate General of Tax as the results team in charge of implementing the RBF; (iv) the creation of technical counterparts in targeted institutions and; (v) the reduction in the number of targeted beneficiary.

a. Given the revised attributions of the Ministry of Planning and Finance6, the experience of the Ministry of Finance in implementing reforms and the strong focus on Public Expenditure and Revenue Administration reforms of the restructured project, the PCU of the restructured project will be anchored with the Ministry of Finance under the responsibility of the Permanent Secretary in the Ministry of Finance. The staffing of the PCU (Coordinator, Deputy Coordinator, M&E Specialist, Financial Management Specialist, Accountant, Procurement Specialist and Procurement Assistant) will remain the same as in the original project. To ensure a more operational Steering Committee, the restructured project’s Steering Committee, presided by the Ministry of Finance, will be composed of Permanent Secretaries of the project’s targeted beneficiaries (Ministries of Planning, Finance, Civil Service and Administrative Reforms, Health and Education). The members of the Steering Committee will meet twice per year to validate and authorize yearly activity plans, progress and annual reports submitted by the PCU.

b. The reform unit in the Directorate General of Tax will be the results team in charge of implementing the RBF, executing eligible expenditures and achieving DLI targets with support from the PCU. It will replace the existing results teams initially set up to manage the achievement of the 13 DLIs of the original project.

c. To further promote ownership and to ensure adequate coordination the Directors of Studies and Planning in the Ministries of Finance, Planning, Civil Service and Administrative Reforms, Education and Health will be designated as technical counterparts which will be responsible for the implementation of the project’s activities. This arrangement will replace the technical focal points in the original project.

d. The targeted beneficiary under the restructured project will include the following ministries and institutions: Finance, Plan, Civil Service and Administrative Reforms, Education, Health. The restructured project will also provide support and work in close collaboration with other institutions such as the High Commission for the Modernization of the State, the National Training Institute for the Public Administration (ENAM), the Faculty of Economic and Social Sciences, the High Commission for Information and Communication Technology (ICT) and the Court of Audit. Given the nature of certain of the reforms supported by the project other Ministries, institutions and agencies will also benefit from the project.

F. PROJECT EXTENSION

18. The Government has reaffirmed its commitment to the proposed restructuring and completion of the project. An extension of 24 months is requested to ensure successful project completion. It will also allow the implementation of key HRM and PFM reforms, such as the roll out of the Biometric census of state employees, the development/deployment of Human Resource Management and Wage Information Systems and the installation of electronic fund transfer and payment systems. Finally, the restructured and extended project will help foster greater budget transparency and enhance service delivery capacity. The PCU is in compliance with World Bank’s financial management requirements, and there are no overdue audits or financial reports.

6 Decree 2016-208/PM of May 11th 2016 charges the Minister of Finance to develop and implement in collaboration with concerned Ministries Public Expenditure and Finance Reforms.


19. Reallocation of proceeds will reflect the proposed changes in project scope, approach, structure and activities. Project funding has been allocated to the three new components of the project (see Table 3). The financing allocation by category has also been modified to reflect changes in the level of RBF supported by the project (see Table 5). IDA will finance Eligible Expenditure Programs in the amount of US$1.93 million which will cover basic salaries and allowances of employees of the Minister of Finance of which the Directorate General of Tax and the Directorate General of Customs are part of. This will allow to finance staffing costs related to the implementation of the reforms of the tax and customs administration. Eligible Expenditures financing will be disbursed upon fulfillment of the DLI targets (see Table 6) and against evidence of actual expenditures. The disbursement schedule has also been revised to reflect the changes in the restructured project (See Table 7).

Table 5: Allocation of Financing by Category in the Original and Restructured Project

Category

Original Project

Disbursement as of

August 2016

Percentage of Expenditures

to be Financed

Restructured Project

Percentage of Expenditures

to be Financed

SDR* US$7* SDR* US$8

* 1. Aggregate amount allocated to financing of DLI Financing of Eligible Expenditure Programs (EEP)

16.3 25 0% 100% including taxes 1.26 1.93

100% excluding taxes

2. Goods, Non-Consulting Services and Consultants’ Services, including Training and Operating Costs

9.15 14 18.6% 100% including taxes 24.84 38.07


3. Refund of Preparation Advance 0.65 1 0 100%

including taxes 0 09 100% excluding taxes

Total 26.1 40 11.61% 100% including taxes 26.1 40


*In million

20. The revised financing amount allocated to the Results Based Financing (RBF) will be disbursed upon evidence of the achievement of the Disbursement Linked Results (DLR) of the Disbursement Linked Indicator (DLI), Key reforms of the tax and customs administration, presented in Table 6. The evidence will be verified by an independent auditor. The disbursements will be made against incurred eligible expenditures, audited by an independent auditor. Eligible Expenditures are limited to wages and benefits of civil servants of the Ministry of Finance (MoF). No later than March 31st of each year, until the Closing Date, the Recipient shall provide documentary evidence to the Association: (a) that a budget line (with the indication of the relevant budget codes) for each of the EEPs is included in the Recipient’s budget law (and maintained in the successive modifying budget laws); and (b) that there is no change in the EEP of the Project and in the underlying activities to be supported by

7 Exchange rate of February 2014 (original exchange rate). 8 Exchange rate of February 2014 (original exchange rate). Due to exchange fluctuations, the total amount in US$ at current exchanges is US$36.5 million. 9 The amount disbursed on the Project Preparation Advance was SDR 321.28/US$477.85.


the Association under such EEP. No withdrawal will be made prior to the effectiveness of the grant. Withdrawals are subject to satisfactory EEP spending and assessment reports. The disbursement amounts linked to each DLR are capped up to the amount associated to each DLR as presented in Table 6. The DLI/DLR verification protocol is presented in Annex 2. The independent verifier will be recruited no later than six months following the restructuring.

Table 6: Disbursement Linked Results– Eligible Expenditure Disbursement Linked Indicator (DLI)/ Disbursement Linked Results (DLR)

Financing of Eligible Expenditures SDR (million) US$ (million)10

DLI: Key reforms of the tax administration

DLR 1. The tax reform unit in the Directorate General of Tax (Direction Générale des Impôts) in the MoF has been operationalized with appropriate staffing.

0.18 0.28

DLR 2. A strategic action plan for the Tax Directorate (Direction Générale des Impôts) has been adopted

0.36 0.55

DLR 3. Ministerial decrees have been adopted to operationalize VAT reimbursement system.

0.36 0.55

DLR 4. The results of the User Survey of the Performance of the Tax Administration published on MoF website and at least one local newspaper.

0.36

0.55

Total 1.26 1.93

Table 7: Revised Disbursement Schedule Year Original Revised11

2014 0 0 2015 2,559,916 2,281,407 2016 7,985,748 4,468,517 2017 20,965,026 7,989,340 2018 8,489,310 8,488,397 2019 8,618,474 2020 8,153,865

10 Exchange rate of February 2014 (original exchange rate). Due to exchange fluctuations, the total amount in US$ at current exchanges is US$1.75 million. 11 Applying exchange rate of February 2014 (original exchange rate).


21. A new procurement plan was developed to reflect revised components and activities. To accelerate project implementation, the number of procurement activities have been limited. Procurement Guidelines and use of procurement methods follow the original project design and have been maintained in the restructured project.

G. AMENDMENTS TO THE LEGAL AGREEMENT

22. The Financing Agreement (FA) was amended to reflect the above proposed restructuring. The PDO, project description, institutional arrangements, monitoring, reporting and evaluation, financing, disbursement arrangements and closing date have all been revised in the amended agreement to reflect the proposed restructuring outlined above.

H. ECONOMIC AND FINANCIAL ANALYSIS

23. Given the nature of the operation, direct and indirect economic and social benefits of this capacity-building project are difficult to quantify. Nonetheless, it is expected that the project’s activities will contribute to (i) improved revenue collection; (ii) increased resource savings through better managed expenditures including the wage-bill and a more efficient and equitable use of resources at the central and local levels; (iii) enhanced human capital in the administration; and (iv) improved transparency and accountability by supporting Government’s decision-making and management of public resources. The project will support Niger’s HRM and PFM reform agenda by focusing on capacity building of public institutions and improved management processes and procedures. Improved capacities to prepare and execute policies, public programs and budgets, combined with improved resource allocations, cost-effective procurement, monitoring, evaluation and oversight that feed back into decision-making, are intended to support Government in achieving its development objectives. Several measures have been taken to ensure that activities will be efficiently delivered including: i) a reduced number of sectors that will be focused on in the project; ii) focus on reforms that have been identified as key bottlenecks; iii) a reduced number of beneficiaries and activities which will allow to not spreading the resources too thinly; and iv) extensive stakeholder consultations to ensure commitment to the reforms and activities implemented with support from the project.

I. TECHNICAL ANALYSIS

24. The proposed revised project design builds on significant analytical work. The updated project design is informed by a series of recent analytical work conducted to identify potential bottlenecks and entry points for Government’s public sector reforms. During the restructuring phase, analytical notes were produced on the new budget reform, the tax and custom administration, human resource management, the treasury, external control, change management and the administration’s information systems. These have provided an important input for the new project design. The preliminary results of the ongoing PEFA assessment as well as recent analytical reports by AFRITAC/International Monetary Fund (IMF) on the treasury customs and tax administration, by the Overseas Development Institute on teacher deployment in Niger, Laboratoire d’Etudes et de Recherches sur les Dynamiques Sociales et le Développement Local (LASDEL) on public sector employees’ behavior/public sector political economy also informed the design of the proposed restructured project. Lastly, it has also been influenced by a number of lessons from past World Bank experiences in Niger, including from the two first years of implementation of the project.

J. ENVIRONMENTAL AND SOCIAL ANALYSIS


25. The environmental category of the original project remains unchanged and potential benefits identified during project appraisal remain relevant. The project is not expected to have any adverse environmental or social impact and its original category “C” is maintained. Training of public sector agents remains a cornerstone of the restructured project and may contribute to staff redeployment and development of new skills. The project promotes women participation in training which can address gender disparities and may lead to better job opportunities for women. The rapid results initiative is expected to generate benefits of local capacity building and improved access to information. Lastly, the restructured project puts an emphasis on improving access to information and transparency, which, in turn, will support the publication of basic budget documents and service standards. This may yield positive results in terms of better accountability, improved service-delivery and more inclusiveness in public debates.

K. RISK

26. The overall risk rating for the proposed restructured project is Substantial. Major sources of project risk and their respective risk ratings are presented in Table 8. Risks deemed to be substantial are political and governance, macroeconomic, technical design of project, institutional capacity for implementation and sustainability and security risk. All other risks are deemed moderate.

Table 8 Systematic Operations Risk rating Tool (SORT) Category Risk Rating 1. Political and governance Substantial 2. Macroeconomic Substantial 3. Sector strategies and policies Moderate 4. Technical design of project or program Substantial 5. Institutional capacity for implementation and sustainability Substantial 6. Fiduciary Moderate 7. Environmental and social Low 8. Stakeholder Moderate 9. Other (security) Substantial Overall Substantial

27. Political and Governance Risk is substantial. The political situation is, overall, stable. Elections were organized in the spring of 2016. The incumbent President was reelected for a second term and his coalition obtained a majority in the Parliament. The election process was contested by opposition parties who boycotted the elections. The authorities are in the process of preparing a new development plan which has broad support: the Program for Economic and Social Development is expected to be adopted in 2017. The overall governance as measured by indexes such as World Wide Governance Indicators, the Mo-Ibrahim Index, the Country Policy and Institutional Assessment (CPIA), the Open Budget Index and the Fragile States Index is weak and below regional averages. The trend for most of the indexes is stagnant though, some progress has recently been achieved on the Open Budget Index and the World Wide Governance Indicators. Niger ranks 99/167 on Transparency International’s 2015 Corruption Perception Index, compared to rank 123/178 in 2010 reflecting efforts in recent years to curb corruption including by the national anti-corruption agency. Cases of high-level corruption in donor-funded operations are rare. Most of the high-level political decisions, such as adopting laws and regulations, have been adopted such as the WAMEU Directives on PFM. During the stakeholder consultations undertaken in the restructuring phase, strong commitment was expressed to implement the reforms that will be supported under


the revised project. The project includes support to change-management and leadership development which is expected to mitigate the risk of resistance to reform.

28. Both macroeconomic and security risks are substantial. Despite improvement over the past months, the security situation remains complex. Niger has been experiencing attacks from Boko Haram for several years. Two major attacks in June 2016 indicate an increasing security threat, and prompting the authorities to seek support from Chad. The Government has responded to the mounting threat of Boko Haram attacks by stepping up security spending and its collaboration with regional and international partners on security issues, but this is producing significant fiscal imbalances and slowing down growth. Recent falls in revenues have also contributed to increasing the macroeconomic risk. The restructured project is designed to mitigate these risks by supporting improved public financial management including support to tax and customs administration reforms. The World Bank’s Development Policy Lending Operation also contributes to mitigating these risks by supporting reforms in view of more efficient fiscal management, which will create fiscal space that may be needed to accommodate new emergency responses such as assistance to refugees and IDPs without threatening other essential public spending. Overall, the macroeconomic and security situation could result in a slowed down reform pace and could cause delays in implementation of certain activities such as the biometric census of state employees.

29. Sector strategies and policies risk is moderate. Niger is currently implementing its third PFM strategy which is adequate for the purpose of the restructured operation and which is consistent with its National Development Plan. Following the ongoing PEFA exercise, a new PFM strategy will be developed. Funding to implement the strategy has overall been adequate. Other sectors targeted by the restructured operation including Health and Education also have strategies adequate for the restructured project, consistent with the National Development Plan and overall adequately funded.

30. Technical design risk of the restructured project is substantial. The technical design of the restructured project has been simplified and clarified compared to the original design and has been informed by extensive analytical work and accompanied by continuous policy dialogue. The reforms are nevertheless technically complex. The risk is mitigated by the technical assistance provided through the project. The client has also quite extensive experience in implementing the kind of reforms supported by the project and the technologies and processes used in the design have been used successfully.

31. Institutional Capacity for implementation and sustainability risks are substantial. The operation is implemented by a well-staffed PCU. It is anchored in the Ministry of Finance who has the prime responsibility of implementation of public financial management reforms and experience in implementing such reforms. The PCU has the capacity to implement the project and will be getting additional support from technical assistance. Monitoring and evaluation systems for the restructured project have been established and M&E reports are submitted on a regular basis. However, the implementation capacity of sector ministries is generally low, and interagency coordination could be significantly improved. The institutional arrangements in the restructured project combined with technical assistance, training including support to change management, communication and leadership are expected to mitigate institutional capacity for implementation risks.

32. Fiduciary Risk is moderate. The PCU is fully staffed with fiduciary personnel responsible for financial management and procurement. A computerized accounting system is in place as well as a manual of procedures. Data control of FM systems are however low and to mitigate this risk, technical assistance will be provided to the PCU. The last years, some delays have been observed in the preparation and adoption of the annual budget and work program. The PCU has timely submitted interim financial reports and audit reports. No audit reports are outstanding and they are of acceptable quality. And audit recommendations are being addressed. A new


procurement plan has been prepared. Procurement delays have been observed and to mitigate this risk an additional consultant has been recruited to assist the PCU and the beneficiaries with procurement.

33. Environmental and Social risk is low. The project does not finance activities that are expected to have adverse social or environmental impact.

34. Stakeholder risk is moderate. The reforms supported by the project received strong support from stakeholders consulted during the restructuring phase and the objectives of the restructured project are overall well understood by the stakeholders. Nevertheless, certain reforms such as the census of state employees, reforms targeting improved teacher deployment could meet opposition from stakeholders. Resistance to PFM reforms, including tax administration reforms could also be encountered. The project’s support to change management, leadership development and communication is expected to mitigate these risks. Support to the reforms are also provided by several Development Partners including the International Monetary Fund (IMF) including AFRITAC, the European Union (EU), the African Development Bank (AfDB), USAID, AFD, GTZ, Belgium Technical Cooperation.

III. SUMMARY OF CHANGES

Changed Not Changed

Change in Implementing Agency ✔

Change in Project's Development Objectives ✔

Change in Results Framework ✔

Change in Components and Cost ✔

Change in Loan Closing Date(s) ✔

Change in Financing Plan ✔

Reallocation between Disbursement Categories ✔

Change in Disbursements Arrangements ✔


Change in Disbursement Estimates ✔

Change in Systematic Operations Risk-Rating Tool (SORT) ✔

Change in Safeguard Policies Triggered ✔

Change in Legal Covenants ✔

Change in Institutional Arrangements ✔

Change in Procurement ✔

Change in Implementation Schedule ✔

Other Change(s) ✔

Change in Economic and Financial Analysis ✔

Change in Technical Analysis ✔

Cancellations Proposed ✔

Change of EA category ✔

Change in Financial Management ✔

Change in Social Analysis ✔

Change in Environmental Analysis ✔ IV. DETAILED CHANGE(S)

IMPLEMENTING AGENCY Implementing Agency Name Type Action

PROJECT DEVELOPMENT OBJECTIVE

Current PDO The project development objective is to strengthen public investment management capacity and civil servant performance evaluation processes in targeted ministries in order to improve service delivery outcomes

Proposed New PDO The revised project development objective is "to strengthen public finance and human resource management to improve service delivery capacity in selected sectors".


RESULTS FRAMEWORK Project Development Objective Indicators

PDO_IND_TABLE

Investment budget execution rate Unit of Measure: Percentage Indicator Type: Custom Baseline Actual (Current) End Target Action

Value 49.50 75.00 Marked for Deletion

Date 31-Dec-2012 31-Dec-2018

Proportion of civil servant managers appointed by Decree in the Ministries of Finance, Planning and Civil Service that are evaluated on the basis of results-based individual performance contract Unit of Measure: Percentage Indicator Type: Custom Baseline Actual (Current) End Target Action


Date 31-Dec-2014 31-Dec-2018

Increase in irrigated cereal crop production Unit of Measure: Tones/year Indicator Type: Custom Baseline Actual (Current) End Target Action


Date 31-Dec-2013 31-Dec-2018

Utilization rates of curative care Unit of Measure: Percentage Indicator Type: Custom Baseline Actual (Current) End Target Action


Date 31-Dec-2012 31-Dec-2018

Primary Completion Rate (disaggregated for girls)


Unit of Measure: Percentage Indicator Type: Custom Baseline Actual (Current) End Target Action


Date 31-Dec-2012 31-Dec-2018

Primary completion rate for girls Unit of Measure: Percentage Indicator Type: Custom Breakdown Baseline Actual (Current) End Target Action


Date 31-Dec-2012 31-Dec-2018

Direct project beneficiaries (number), of which female (%) Unit of Measure: Number Indicator Type: Custom Baseline Actual (Current) End Target Action


Date 30-Jun-2014 31-Dec-2018

Direct project female beneficiaries Unit of Measure: Number Indicator Type: Custom Breakdown Baseline Actual (Current) End Target Action


Date 30-Jun-2014 31-Dec-2018

Share of public sector agents paid through the Human Resource Management Information System (HRMIS) Unit of Measure: Percentage Indicator Type: Custom Baseline Actual (Current) End Target Action

Value 40.00 85.00 New


Date 31-Dec-2015 31-Dec-2020

Expenditure outturn in education Unit of Measure: Percentage Indicator Type: Custom Baseline Actual (Current) End Target Action

Value 40.00 22.00 New

Date 31-Dec-2015 31-Dec-2020

Expenditure outturn in health Unit of Measure: Percentage Indicator Type: Custom Baseline Actual (Current) End Target Action

Value 50.00 26.00 New

Date 31-Dec-2015 31-Dec-2020

VAT efficiency Unit of Measure: Percentage Indicator Type: Custom Baseline Actual (Current) End Target Action

Value 30.00 34.00 New

Date 31-Dec-2015 31-Dec-2020

Access of the public to the budget documentation Unit of Measure: Percentage Indicator Type: Custom Baseline Actual (Current) End Target Action

Value 20.00 52.00 New

Date 30-Dec-2016 31-Dec-2020

Intermediate Indicators IO_IND_TABLE


Procedures for open, competitive and merit-based performance management have been designed by the Civil Service Ministry together with HCME in accordance with the 2007 Civil Service Organic Law (Loi 2 Unit of Measure: Yes/No Indicator Type: Custom Baseline Actual (Current) End Target Action

Value No Yes Marked for Deletion

Date 31-Dec-2014 31-Dec-2015

Number of ministries in which results-based action plans (performance contracts) linked to the PDES have been developed. Unit of Measure: Number Indicator Type: Custom Baseline Actual (Current) End Target Action


Date 30-Jun-2014 31-Dec-2018

National MTEF of acceptable quality is included in the Finance Law and adopted by the National Assembly. Unit of Measure: Yes/No Indicator Type: Custom Baseline Actual (Current) End Target Action


Date 31-Dec-2013 31-Dec-2015

Adoption of sector MTEFs of acceptable quality in the Ministry of Health, the Ministry of Agriculture and the Ministry of Primary Education) Unit of Measure: Yes/No Indicator Type: Custom Baseline Actual (Current) End Target Action


Date 30-Jun-2014 31-Dec-2018

Proportion of the National Investment Program included in the Investment Budget Unit of Measure: Percentage Indicator Type: Custom


Baseline Actual (Current) End Target Action


Date 30-Jun-2014 31-Dec-2018

Average rate of execution of public procurement commitment plans in the Ministry of Planning, the Ministry of Finance, the Ministryof Civil Service, the Ministry of Agriculture, the Ministry of Healt Unit of Measure: Percentage Indicator Type: Custom Baseline Actual (Current) End Target Action


Date 30-Jun-2014 31-Dec-2018

Average rate of execution of the National Monthly Treasury Plan Unit of Measure: Percentage Indicator Type: Custom Baseline Actual (Current) End Target Action


Date 30-Jun-2014 31-Dec-2018

Rate of execution of investment budget of the Ministry of Agriculture Unit of Measure: Percentage Indicator Type: Custom Baseline Actual (Current) End Target Action


Date 30-Jun-2014 30-Jun-2014

Rate of execution of investment budget of the Ministry of Health Unit of Measure: Percentage Indicator Type: Custom Baseline Actual (Current) End Target Action


Date 30-Jun-2014 31-Dec-2018


Rate of execution of investment budget of the Ministry of Primary Education Unit of Measure: Percentage Indicator Type: Custom Baseline Actual (Current) End Target Action


Date 30-Jun-2014 31-Dec-2018

Proportion of cultivated land on which certified improved sees are used Unit of Measure: Percentage Indicator Type: Custom Baseline Actual (Current) End Target Action


Date 31-Dec-2013 31-Dec-2018

Area under small scale irrigation (additional hectares compared to previous year) Unit of Measure: Hectare(Ha) Indicator Type: Custom Baseline Actual (Current) End Target Action


Date 30-Jun-2014 31-Dec-2018

Proportion of local health centres with staffing levels according to the established norms. Unit of Measure: Percentage Indicator Type: Custom Baseline Actual (Current) End Target Action


Date 31-Dec-2013 31-Dec-2018

Frequency of stock outs based on the Reference List of the most essential medications at the level of the integrated health centers Unit of Measure: Percentage Indicator Type: Custom Baseline Actual (Current) End Target Action



Date 31-Dec-2013 31-Dec-2018

Teacher/Student ratio Unit of Measure: Number Indicator Type: Custom Baseline Actual (Current) End Target Action


Date 30-Jun-2014 31-Dec-2018

Proportion of qualified teachers Unit of Measure: Number Indicator Type: Custom Baseline Actual (Current) End Target Action


Date 31-Dec-2013 31-Dec-2018

Publication of SDI results (Media reports) Unit of Measure: Number Indicator Type: Custom Baseline Actual (Current) End Target Action


Date 30-Jun-2014 31-Dec-2018

Percentage of ministries that have established dashboards Unit of Measure: Percentage Indicator Type: Custom Baseline Actual (Current) End Target Action


Date 30-Jun-2014 31-Dec-2018

Proportion of planners, budget analysts, financial controllers, procurement specialists trained Unit of Measure: Number


Indicator Type: Custom Baseline Actual (Current) End Target Action


Date 30-Jun-2014 31-Dec-2018

High level seminars on Change Management for Development carried out Unit of Measure: Number Indicator Type: Custom Baseline Actual (Current) End Target Action


Date 30-Jun-2014 31-Dec-2018

Orders enacted as a result of High level seminars Unit of Measure: Number Indicator Type: Custom Baseline Actual (Current) End Target Action


Date 30-Jun-2014 31-Dec-2018

Ministries implementing Rapid Results Initiatives (RRI) aligned with PDES Unit of Measure: Number Indicator Type: Custom Baseline Actual (Current) End Target Action


Date 30-Jun-2014 31-Dec-2018

Average number of RRIs per ministry implementing RRIs aligned with PDES Unit of Measure: Number Indicator Type: Custom Baseline Actual (Current) End Target Action


Date 30-Jun-2014 31-Dec-2018


Average rate of completion of RRIs per ministry implementing RRIs aligned with PDES Unit of Measure: Percentage Indicator Type: Custom Baseline Actual (Current) End Target Action


Date 31-Dec-2013 31-Dec-2018

Coaches supporting the implementation of RRIs all along. Unit of Measure: Number Indicator Type: Custom Baseline Actual (Current) End Target Action


Date 30-Jun-2014 31-Dec-2018

HR and wage regulations, procedures and information management systems Unit of Measure: Text Indicator Type: Custom Baseline Actual (Current) End Target Action

Value Obsolete RF HRMIS deploye New

Date 31-Dec-2015 31-Dec-2020

HR and wage regulations, procedures and information management systems Unit of Measure: Text Indicator Type: Custom Breakdown Baseline Actual (Current) End Target Action

Value

Regulatory framework and information systems obsolete

Roadmap for the modernization of Human Resource Management adopted

New

Date 31-Dec-2015 30-Dec-2016

HR and wage regulations, procedures and information management systems Unit of Measure: Text


Indicator Type: Custom Breakdown Baseline Actual (Current) End Target Action

Value

Regulatory framework and information systems obsolete

Regulatory framework and procedures updated and HR planning and management tools adopted

New

Date 31-Dec-2015 29-Dec-2017


Value

HR and wage regulations, procedures and information systems

HRMIS configured in accordance with the updated regulatory framework and procedures

New

Date 31-Dec-2015 31-Dec-2018


Value

HR and wage regulations, procedures and information management systems

HRMIS deployed in targeted Ministries (Finance, Plan, Civil Service and Administrative Reforms, Health and Education (basic, secondary and higher education) at central level

New

Date 31-Dec-2015 31-Dec-2019



Value

HR and wage regulations, procedures and information management systems

HRMIS deployed in targeted Ministries (Finance, Plan, Civil Service and Administrative Reforms, Health and Education (basic, secondary and higher) at the regional level

New

Date 31-Dec-2015 31-Dec-2020

Biometric census of public sector agents Unit of Measure: Text Indicator Type: Custom Baseline Actual (Current) End Target Action

Value No census HRMIS audit New

Date 31-Dec-2015 31-Dec-2020

Biometric census of public sector agents Unit of Measure: Text Indicator Type: Custom Breakdown Baseline Actual (Current) End Target Action

Value No consolidated census, multiple identity systems

Set up of the interagency team of the census

New

Date 31-Dec-2015 30-Dec-2016




Mid-term progress report of the census available

New

Date 31-Dec-2015 29-Dec-2017

Final census report and biometric data base available Unit of Measure: Text Indicator Type: Custom Breakdown Baseline Actual (Current) End Target Action


Final census report and biometric data base available

New

Date 31-Dec-2015 31-Dec-2018



Table of staff by grade, service and assignment annexed to the draft Budget Law 2020

New

Date 31-Dec-2015 31-Dec-2019



Audit report of 2019 HRMIS exercise available

New

Date 31-Dec-2015 31-Dec-2020

Public sector agents trained Unit of Measure: Number Indicator Type: Custom


Baseline Actual (Current) End Target Action

Value 0.00 1250.00 New

Date 31-Dec-2015 31-Dec-2020

Public sector agents trained of which women Unit of Measure: Number Indicator Type: Custom Breakdown Baseline Actual (Current) End Target Action

Value 0.00 300.00 New

Date 31-Dec-2015 31-Dec-2020

Pilot incentive system for improving staff deployment in the education sector Unit of Measure: Text Indicator Type: Custom Baseline Actual (Current) End Target Action

Value Not available Impact assess New

Date 31-Dec-2015 31-Dec-2020

Pilot incentive system for improving staff deployment in the education sector Unit of Measure: Text Indicator Type: Custom Breakdown Baseline Actual (Current) End Target Action

Value Not available

Public debate on service delivery based on the SDI report 2015/16

New

Date 31-Dec-2015 30-Dec-2016


Value Not available Strategy and standards for deployment and

New


incentives in the education sector adopted following stakeholder consultations

Date 31-Dec-2015 29-Dec-2017

Pilot incentive system for improving staff deployment in education Unit of Measure: Text Indicator Type: Custom Breakdown Baseline Actual (Current) End Target Action

Value Not available

Piloting of regulations, accountability and sanction mechanisms (positive or negative) in rural and suburban areas, and action plan to scale-up the pilot

New

Date 31-Dec-2015 31-Dec-2018


Value Not available

Report on the 2018 implementation of the pilot incentive system available and published

New

Date 31-Dec-2015 31-Dec-2019



Value Not available

Impact assessment and strategy to scale-up the pilot incentive system available

New

Date 31-Dec-2015 31-Dec-2020

Reform of the planning and budgetary process Unit of Measure: Text Indicator Type: Custom Baseline Actual (Current) End Target Action

Value Organic BL 2019 PR New

Date 31-Dec-2015 31-Dec-2020

Reform of the planning and budgetary process Unit of Measure: Text Indicator Type: Custom Breakdown Baseline Actual (Current) End Target Action

Value

2012 Organic Budget Law (BL) and other WAMEU directives transposed to the national legislation

Blueprint of the Organic Budget Law reform adopted

New

Date 31-Dec-2015 30-Dec-2016


Value


Budgetary procedures updated and harmonized methodological guidelines for the medium term expenditure framework (MTEF)

New


and sector MTEF in conformity with the program budget and the program structure, regulations on program manager adopted

Date 31-Dec-2015 29-Dec-2017


Value


Sector MTEFs and program budgets of the education and health sectors available

New

Date 31-Dec-2015 31-Dec-2018


Value

2012 Organic Budget Law (BL) and WAMEU directives transposed in the national legisalation

Annual Performance Plan of the education and health ministries annexed to the 2020 budget law

New

Date 31-Dec-2015 31-Dec-2019



Value


2019 Annual performance reports (PR) of the education and health ministries available

New

Date 31-Dec-2015 31-Dec-2020

Public investement selection and monitoring system Unit of Measure: Text Indicator Type: Custom Baseline Actual (Current) End Target Action

Value PIM Decree Report on PIM New

Date 31-Dec-2015 31-Dec-2020

Public investment selection and monitoring systems Unit of Measure: Text Indicator Type: Custom Breakdown Baseline Actual (Current) End Target Action

Value

Decree on the selection of public investment projects (PIM) and guidelines

List of on-going public investment projects published

New

Date 31-Dec-2015 30-Dec-2016


Value


Standardized methodology for economic and financial assessment as well as social and environmental impact assessment of public

New


investment projects adopted and published.

Date 31-Dec-2015 29-Dec-2017


Value


Database of public investment projects (identified, under preparation and implementation) available online

New

Date 31-Dec-2015 31-Dec-2018


Value


Monitoring and evaluation system for public investment projects operational

New

Date 31-Dec-2015 31-Dec-2019


Value


Report on the implementation of the public investment

New


projects published (covering 2014-19)

Date 31-Dec-2015 31-Dec-2020

Information on public procurement Unit of Measure: Text Indicator Type: Custom Baseline Actual (Current) End Target Action

Value PMIS not oper Proc Perf aud New

Date 31-Dec-2015 31-Dec-2020

Information on public procurement Unit of Measure: Text Indicator Type: Custom Breakdown Baseline Actual (Current) End Target Action

Value

Procurement management information system (PMIS) not operational. Statistics not available

Evaluation according to the OECD methodology published

New

Date 31-Dec-2015 29-Dec-2017


Value

Procurement management information system (PMIS) not operational. Statistics not available

PMIS updated and operational and legal and regulatory framework of procurement updated

New

Date 31-Dec-2015 31-Dec-2018

Information on public procurement


Unit of Measure: Text Indicator Type: Custom Breakdown Baseline Actual (Current) End Target Action

Value


Updated PMIS deployed in the health and education ministries

New

Date 31-Dec-2015 31-Dec-2019


Value


Performance audits (2014 and onwards) of public procurement published

New

Date 31-Dec-2015 31-Dec-2020

COMPONENTS

Current Component Name

Current Cost

(US$M) Action

Proposed Component Name

Proposed Cost

(US$M) Supporting Programs for Service Delivery Results 25.00 Revised Improve Human Resources

Management 15.00

Technical Assistance for Capacity Development 15.00 Revised Strengthening Public Financial

Management 12.90

0.00 New Change Management 12.10

TOTAL 40.00 40.00


LOAN CLOSING DATE(S)

Ln/Cr/Tf Status Original Closing

Revised Closing(s)

Proposed Closing

Proposed Deadline for Withdrawal

Applications

IDA-H9310 Effective 31-Dec-2018 31-Dec-2020 30-Apr-2021

FINANCING PLAN

Summary (USD) Original Amount Proposed Amount

Total Project Cost 40,000,000.00 40,000,000.00

Total Financing 40,000,000.00

International Development Association (IDA) 40,000,000.00

Financing Gap 0.00

Details REALLOCATION BETWEEN DISBURSEMENT CATEGORIES

Ln/Cr/TF Current Expenditure Category

Current Allocation

Actuals + Committed

Proposed Allocation

Disbursement % (Type Total)

Current Proposed

IDA-H9310-001 Currency: XDR

Aggregate amount allocated to Disbursement Linked Indicator financing of Eligible Expenditure Programs

16,300,000.00 0.00 1,260,000.00 100

Goods, non-consulting services, and consultants’ services, Training and Operating Costs

9,150,000.00 1,510,608.22 24,839,678.72 100


for the Project (except Part 2.(

PPF REFINANCING 650,000.00 321.28 321.28

Total 26,100,000.00 1,510,929.50 26,100,000.00

IDA-Q9100-001 Currency: USD

GD, TR, OP COST, NON CONSULT, CONS

0.00 0.00 100

Total 0.00 0.00 0.00

DISBURSEMENT ARRANGEMENTS Change in Disbursement Arrangements Yes

Change in Disbursement Estimates Yes

Year Current Proposed

2014 0 0

2015 0 2559916.59

2016 0 7985747.15

2017 0 20965555.55

2018 0 8489310.35

SYSTEMATIC OPERATIONS RISK-RATING TOOL (SORT)

Risk Category Rating at Approval Previous Rating Current Rating

Political and Governance Moderate Substantial

Macroeconomic Substantial Substantial

Sector Strategies and Policies Moderate Moderate

Technical Design of Project or Program Moderate Substantial


Institutional Capacity for Implementation and Sustainability Substantial Substantial

Fiduciary Moderate Moderate

Environment and Social Low Low

Stakeholders Moderate Moderate

Other Substantial Substantial

Overall Moderate Substantial

COMPLIANCE

Safeguard Policies

Safeguard Policies Triggered Current Proposed

Environmental Assessment (OP) (BP 4.01) No No

Natural Habitats (OP) (BP 4.04) No No

Forests (OP) (BP 4.36) No No

Pest Management (OP 4.09) No No

Physical Cultural Resources (OP) (BP 4.11) No No

Indigenous Peoples (OP) (BP 4.10) No No

Involuntary Resettlement (OP) (BP 4.12) No No

Safety of Dams (OP) (BP 4.37) No No

Projects on International Waterways (OP) (BP 7.50) No No

Projects in Disputed Areas (OP) (BP 7.60) No No


LEGAL COVENANTS

Loan/Credit/TF

Description Status Action

IDA-H9310

Finance Agreement :Submission of EEP spending reports | Description :The Recipient shall furnish to the Association on or about March 31 of each year, starting on the first such date after the Effective Date, regular reports (the “EEP Spending and Assessment Reports”) prepared in accordance with the provisions of the Project Manuals | Frequency :Yearly

Not complied with Revised

Proposed

The Recipient shall furnish to the Association on or about March 31 of each year, starting on the first such date after the Effective Date, regular reports (the “EEP Spending and Assessment Reports”) prepared in accordance with the provisions of the Project Manuals

Not yet due

IDA-H9310

Finance Agreement :Evidence of budget lines and no change in the EEP and in underlying activities | Description :No later than January 31st, 2015 and on January 31st each year thereafter until the Closing Date, the Recipient shall provide documentary evidence to the Association: (a) that budget line for each of the EEPs is included in the Recipient’s budget law (and maintained in the successive modifying budget laws); and (b) that there is no change in EEP and in underlying activities to be supported byIDA. | Frequency :Yearly


Proposed

No later than March 31st of each year, until the Closing Date, the Recipient shall provide documentary evidence to the Association: (a) that a budget line (with the indication of the relevant budget codes) for each of the Eligible Expenditures Programs is included in the Recipient’s budget law (and maintained in the successive modifying budget laws); and (b) that there is no change in the EEP

Not yet due

IDA-H9310

Finance Agreement :Recruitement of an audit firm for the verification of DLIs | Description :No later than six (6) months after the Effective Date, the Recipient shall recruit an independent audit firm for the purpose of carrying out an annual independent assessment, verification and validation of the performance of the Targeted Ministries towards achieving the DLIs | Due Date :29-Mar-2015


Proposed

No later than 6 months after the Effective Date, the Recipient shall on the basis of terms of reference, qualifications and experience satisfactory to the Association, hire an independent auditor for the purpose of

Not yet due


carrying out an annual independent assessment, verification and validation of the performance of the Selected Ministries towards achieving the DLI.

IDA-H9310

Finance Agreement :Project Manuals | Description :No later than two (2) months after the Effective Date, the Recipient shall adopt the Project Manuals, each in form and substance acceptable to the Association, for the purpose of implementing the Project | Due Date :29-Nov-2014

Complied with Revised

Proposed

No later than six (6) months after the Effective Date, the Recipient shall update the Project Manuals, in form and substance acceptable to IDA, for the purpose of implementing the Project. The Recipient shall ensure that the Project is carried out in accordance with the Project Manuals. Except as the IDA shall otherwise agree, the Recipient shall not assign, amend, abrogate or waive the manuals

Not yet due

IDA-H9310

The Recipient shall prepare Project Reports in accordance with the provisions of Section 4.08 of the General Conditions and on the basis of indicators acceptable to the Association. Each Project Report shall cover the period of one calendar semester, and shall be furnished to the Association not later than forty-five (45) days after the end of the semester.

Complied with New

IDA-H9310

The Recipient shall prepare and furnish to the Association not later than forty-five (45) days after the end of each calendar quarter, interim unaudited financial reports for the Project covering the quarter, in form and substance satisfactory to the Association.

Complied with New

IDA-H9310

The Recipient shall have its Financial Statements audited. The audited Financial Statements for each such period shall be furnished to the Association not later than six (6) months after the end of such period.

Complied with New

IDA-H9310

In order to ensure the timely carrying out of the audits referred to in Section II. B.3 of this Schedule, the Recipient shall engage independent auditors for the purpose not later than four (4) months after the Effective Date, in accordance with the provisions of Section III of this Schedule.

Complied with New

IDA-H9310

The Recipient shall furnish to the Association, as soon as available, but in any case not later than Dec15 of each year, the annual work plans and budgets approved by the Steering Committee, for review and approval; except for thework plan and budget for the Project for the first year of Project implementation, which shall be furnished no later than one (1) month after effectiveness

Complied with New


IDA-H9310

: Each year the Recipient shall prepare a draft annual work plan and budget for the Project except Part 2.d (including Training and Operating Costs) for each subsequent year of Project implementation, of such scope and detail as the Association shall reasonably requests.

Complied with New

IDA-H9310

: No later than six (6) months after the Effective Date, the Recipient shall on the basis of terms of reference, qualifications and experience satisfactory to the Association, an independent auditor for the purpose of carrying out an annual independent assessment, verification and validation of the performance of the Selected Ministries towards achieving the DLI.

Not yet due New

IDA-H9310

No later than two (2) months after the Effective Date, each Selected Ministry shall nominate a technical counterpart. To this end, said technical counterparts shall formulate an implementation team to be responsible for the facilitation and effective coordination between each Selected Ministry and the PCU.

Not yet due New

IDA-H9310

No later than six (6) months after the Effective Date, the Recipient shall formulate a results team, whose members have been nominated by the MoF. To this end, the results team shall be under the Directorate General of Tax and shall be responsible for implementing the reforms supported by the results based financing.

Not yet due New

IDA-H9310

No later than two [2] months after the Effective Date, the Recipient shall establish within the MoF and thereafter maintain the Project Coordination Unit (PCU), with mandate, composition and resources acceptable to the Association. In particular, the Recipient shall maintain at all times sufficient staff, each with terms of reference, qualifications and experience adequate for the Project.

Not yet due New

IDA-H9310

The Recipient has established and shall maintain the Steering Committee chaired by a representative from the MoF with composition and terms of reference satisfactory to the Association.

Not yet due New

IDA-H9310

The Additional Condition of Effectiveness consists of recruiting the following specialists to work in the PCU: (i) a Project coordinator; (ii) a financial management specialist; and (iii) a procurement specialist.

Not yet due New

IDA-H9310

The Additional Condition of Effectiveness consists of recruiting the following specialists to work in the PCU: (i) a Project coordinator; (ii) a financial management specialist; and (iii) a procurement specialist

Complied with New


IDA-H9310

No later than 18 months after the Effective Date, or at any other date agreed with the Association, the recipient shall, in conjunction with the Association, carry out a mid-term review. The recipient shall prepare and furnish to the Association not less than 3 months prior to the beginning of the Mid-term Review, a report integrating the results of the M&E activities on the progress achieved

Not yet due New

IDA-H9310

Nothwithstanding the provisions of Part A, section IV of the FA, no withdrawal shall be made for payments made prior to the date of this Agreement; and no withdrawal shall be made for payments made under category 1 and table under Annex 1 unless: the relevant EEP Spending and Assessment Report has been submitted to, and found satisfactory by the IDA and the DLR has been met satisfactory to IDA

Not yet due New

IDA-H9310 Notwithstanding the provisions of Part A, section IV of the FA, no withdrawal shall be made for payments made prior to the date of this Agreement

Not yet due New

IDA-H9310

no withdrawal shall be made for payments made under Category 1 and the table under Annex 1 unless the relevant EEP Spending and Assessment Report has been submitted to, and found satisfactory by,IDA

Not yet due New

IDA-H9310

no withdrawal shall be made for payments made under Category 1 and the table under Annex 1 unless the DLR has been met by the Recipient satisfactory to the Association

Not yet due New

IDA-H9310 For the 1st year of implementation, a work plan and budget approved by the Steering Committee shall be submitted to IDA for review 1 month after effectiveness

Not yet due New

Annex 1: Detailed Project Description

Niger: Public Sector Capacity and Performance for Service Delivery (P145261)

The project will consist of three components: The first component will support the improvement of Human Resource (HR) and Wage Management to address issues including HR planning, performance, incentives, deployment as well as to Human Resources expenditures including wage management. The second component will support strengthening of Public Financial Management (PFM) in Niger including public investment management (PIM), budget planning and execution, procurement, cash management, treasury payment system, revenue mobilization, control, oversight and accountability. The third component will support the implementation of activities in view of enhancing capacities in change management including information systems, leadership, monitoring and evaluation, access to information, communication and transparency.

COMPONENT 1: Improve Human Resources Management (US13.7 million equivalent)

This component aims to improve HRM by carrying out a biometric census which will include a new identification system, developing strategies and policies, updating and revising legislation, regulation, procedures and tools. It will also support the acquiring and rolling out an integrated HRM information system which includes wage and HR expenditure management, providing training to State employees and piloting HR incentive systems in the education and health sector.

Sub-component 1.1: The modernization of human resource management

Activities will focus on (i) developing the National HR Management strategy, (ii) updating policies, legislation, regulatory framework and procedures; (iii) developing modern HR planning, performance, incentive and management tools; and (iv) acquiring and rolling out the integrated HRM Information System (HRMIS) which includes wage and HR expenditure management in target ministries at the central and regional level.

Sub-component 1.2: Biometric census of public sector agents

Activities seek to (i) provide support to the interagency team for the census; (ii) carry out a large-scale biometric census to register all public sector agents; (iii) support improved transparency and accountability in HRM including through the support to the preparation of a table of staff by grade, service and assignment which will be annexed to the Budget Law; and (iv) conduct an audit for the HRMIS database and a post completion technical assessment of the HRMIS.

Sub-component 1.3: Training of public sector agents

Activities aim to (i) strengthen the capacities of public sector agents in topics related to public administration, PFM and HRM; (ii) support national training institutions such as the Ecole Nationale de l’Administration et de la Magistrature (ENAM) and the Faculté des Sciences Economiques et Juridiques (FSEJ), including when needed, establishment of partnerships with foreign institutions; and (iii) support the development of an accreditation program. The project will also support improving the planning and management of training of State employees.

Sub-component 1.4: Pilot incentive system for improving local staff deployment in targeted sectors

Activities will, in addition to the support provided through the original project to the Service Delivery Indicator Survey, support (i) the dissemination and public debate on the social service indicators in the education and health sectors; (ii) following stakeholder discussions, the development of a strategy and standards for deployment and incentives the Education and Health, (iii) introduce a pilot incentive system to improve staff deployment in the education sector, (iv) communication, outreach activities and publish results of the pilot incentive system; and (v) conduct impact assessment and strategy to scale up the pilot incentive system.

COMPONENT 2: Strengthening Public Financial Management (US$11.7 million equivalent)

This component aims to strengthen Government’s Public Financial Management. Support will be provided to implement reforms related to the transposition to National legislation and regulation of the WAMEU directives on PFM. This will include support to the implementation of the 2012 organic budget law, including support to the operationalization of budget-programs. Furthermore, the component will assist Government in strengthening its budget forecasting, planning and execution processes. It will also support planning, monitoring and evaluation, management and execution of public investments including support to procurement reforms. The component will also provide assistance to strengthen, cash management, treasury systems – including payment systems, accounting, control, oversight, accountability and transparency. Support to reforms of the customs and tax administration, particularly the VAT system, in view of improving revenue collection will also be part of the component. Support to internal and external communication, outreach and dissemination related to the implementation of the PFM reforms supported by the restructured project will also be streamlined in the component.

Sub-component 2.1: The planning and budgetary process and procedures

Activities will support the preparation and implementation of the blue print of the reforms related to the 2012 organic budget law as well as to WAMEU directives on PFM. This will include support to operationalize budget-programs. Furthermore, the project will support the update of budget forecasting and planning tools as well as budgetary procedures including the harmonization of methodological guidelines for the MTEF and sectoral MTEFs, defining the structures of the budget-programs and preparing and implementing all necessary regulations to operationalize budget-programs such as regulations on program-managers. Dedicated support to implement reforms towards improved budget planning, preparation and execution in the health and education sector will also be provided under this sub-component. This will include support to the preparation and execution of sectoral MTEFs and program budgets in the education and health sectors and carrying out of the education and health budget performance reports. Finally, support to further consolidating and integrating the integrated PFM IT systems will also be funded.

Sub-component 2.2: Public investment selection and monitoring systems

Activities aim to focus on providing support to improve PIM. This will include support to operationalize the recently adopted decree on selection of PIM including preparing detailed guidelines and developing PIM management tools. The project will also support: (i) developing and publishing tools and guides for economic and financial assessment as well as social and environmental impact assessment of public investment; (ii) setting up a comprehensive database of internal and externally funded public investment programs and making it accessible online; (iii) supporting the operationalization of an PIM M&E system and (iv) conducting an evaluation of the 2014-2019 investment programs.

Sub-component 2.3: Procurement processes, execution and control

Activities will include studies and surveys as well support to update legislation, regulation, procedures and manuals and to deploy IT tools. The sub-component seeks to support (i) the procurement evaluation based on the OECD methodology; (ii) updating the procurement legislation and regulation; (ii) deploying of the Procurement Management Information System; (iii) and the preparation and publishing of procurement information, statistics and audits. Dedicated support to improve procurement planning and execution in the health and education sector as well as to the institutions in charge of procurement regulation, oversight and management will also be provided. Finally, support to communication, outreach and transparency in procurement will be provided.

Sub-component 2.4: Tax and Customs administration

Sub-component 2.4 (i): Tax and customs – Technical Assistance

Activities will include technical assistance, training, Information Technology equipment and software to support tax and customs administration reforms. This will include support to undertake studies and surveys as well as to update legislation, regulation, procedures and manuals and to deploy IT tools. Support will be included to consolidate the deployment of ASCUDA World. Furthermore, the project will finance technical assistance, training and Information Technology equipment and software to support the implementation of VAT reforms including improving control, improve the performance of user centres and developing pilot performance contracts in the tax and customs administration.

Sub-component 2.4 (i): Tax administration – Results Based Financing – DLI/DLR

This subcomponent will support through Results Based Financing – DLI/DLR the reforms to (i) operationalize a tax reform unit in the Directorate General of Tax; (ii) adopt a three year strategic action plan for the tax reforms; (iii) strengthen the VAT system including rendering operational the system of VAT reimbursement; and (iv) publishing the results of user surveys of the tax administration performance and supporting user centres to improve their performance.

Sub-component 2.5: Cash Management, treasury payment systems, accounting, control and oversight

Activities seek to assist the improvement in cash management, payment systems, accounting, control and oversight. This will include support to undertake studies and surveys as well as to update legislation, regulation, procedures and manuals and to deploy IT tools. Activities will also include institutional, performance and financial audits, support to accounting reforms necessary to the budget-program reform. Furthermore, support build capacity of internal control in the Ministry of Finance, of the Court of Auditors as well as of the Finance Commission of the Parliament will be included. Finally, the project will provide support to operationalize the Single Treasury Account and payment systems including support to (i) preparation of a Memorandum of Understanding between the Treasury, the Central Bank (BCEAO) and the banks regarding the modernization of the payment system and (ii) the participation of the Treasury in the payment system (STAR and SICA UEMOA).

COMPONENT 3: Change Management (US$11.1 million equivalent)

This component aims to support the reform process within the administration by interconnecting and pooling information systems, improving monitoring and evaluation processes and enhancing leadership skills and change management tools. Support to communication and outreach activities as well as to

activities to improve access of the public to information and transparency will also be included under this component.

Sub-component 3.1: Pooling of information systems

Activities aim to improve the information system by supporting (i) the preparation of a national strategy on interconnection; (ii) the preparation of a blueprint of Government’s intranet and security policies; (iii) development of the regulatory framework for the governance of information systems and cyber-security; (iv) the upgrade and accessibility of Network Operations Centres (NOC) and data centres; and (v) the operationalization of the infrastructure for shared services (electronic messaging, Cloud, intranet, extranet). The sub-component will also support the acquisition of an electronic archiving system and training of IT specialists.

Sub-component 3.2: National monitoring and evaluation system (NMES)

The activities will assist the (i) development of a national strategy for monitoring and evaluation (NMES); (ii) operationalization of the NMES; (iii) preparation of performance reports for selected ministries; (iv) support directors of studies and planning in targeted ministries with training and TA in planning and M&E as well as with IT equipment, (v) preparation of annual reviews on service indicators for the education and health sector.

Sub-component 3.3: Promotion of leadership

Activities seek to (i) provide training and coaching on leadership and change management (notably related to communication, performance evaluation, internal organization and administrative procedures) and (ii) introduce new tools for change leadership and managing results such as the rapid results initiative. The Sub-component will also provide support to improve access to information, communication, outreach, transparency and to improve the work environment of targeted beneficiaries.

ANNEX 2: DLIS VERIFICATION PROTOCOL FOR DLI/DLR

# DLI Main definitions

Proportional disbursements

allowed? (Yes/No)

Verification protocols

Data sources / responsible agencies to provide the

data

Agency in charge of

collecting proof of completion

Procedure

1

DLI No 1: Key reforms of the tax and customs administration

DLR 1.1: (US$0.28 million equivalent to SDR 0.18 million) The tax reform unit in the Tax Department (Direction Générale des Impôts) of the Ministry of Finance is made operational. The tax reform unit currently staffed by a head of the unit, will be strengthened with additional human resources. Three experts (expert responsible for the formulation of the strategies and the reform and program orientation, expert responsible for the monitoring and evaluation of the reforms and expert responsible for tax surveillance and analyses) with a profile satisfactory to IDA will been nominated to staff the tax reform unit in the Tax Department (Direction Générale des Impôts) of the

No

Project Coordination

Unit; Reform unit of the Directorate General of Tax

(Direction Générale des

Impôts); Ministry of

Finance

Independent verifier to be

hired

The Independent verifier will undertake the following: Verification that the tax reform unit has been staffed with three additional experts – civil servants. The verification will be done based on examination of the Ministerial Decision nominating the three experts to the tax reform unit (expert responsible for the formulation of the strategies and the reform and program orientation, expert responsible for the monitoring and evaluation of the reforms and expert responsible for tax surveillance and analyses) and examination of the evidence that the three experts have a profile satisfactory to IDA. The independent verifier will also conduct interviews with the experts and visit the reform unit in its offices. To conduct this verification:The tax reform unit and the Project



allowed? (Yes/No)



data

Agency in charge of


Procedure

Ministry of Finance by a Ministerial Decisions of the Minister of Finance. The staffing of the tax reform unit will be maintained with staff satisfactory to IDA for at least the duration of the project

Coordination Unit will collect the necessary documents: Ministerial Decisions nominating the three experts, the curriculum vitae of the three experts and the opinion of IDA on the profile of the experts. The Independent verifier will conduct interviews and visits to the offices of the expert. After the verifications are completed: The independent verifier will issue a report which will include all written evidence; The evidence and the report will be submitted to IDA and will be archived in the archives of the project coordination unit The independent verifier will, on an annual basis for the duration of the project, verify that the tax reform unit staffing is maintained and will issue a report which will be submitted to IDA on an annual basis containing evidence that the staffing of the tax reform unit has been maintained

DLR2: A strategic action plan for the Tax Directorate (Direction Générale des

No Project

Coordination Unit;


hired

The Independent verifier will undertake the following: Verifying that the three year



allowed? (Yes/No)



data

Agency in charge of


Procedure

Impôts) has been adopted by the Ministry of Finance on proposal from the Tax Directorate (Direction Générale des Impôts) The Ministry of Finance has adopted a three year Strategic Action Plan for the Tax Directorate (Direction Générale des Impôts)

Reform unit of the Directorate General of Tax



Finance

strategic action plan for the Tax Directorate has been adopted by the Ministry of Finance To conduct the verification, the Tax Directorate will prepare the necessary documents, including a copy of the Strategic Action Plan and proof that the Ministry of Finance has adopted it and submit it for verification to the independent verifier. After the verifications are completed: The independent verifier will issue a report which will include all written evidence; The evidence and the report will be submitted to IDA and will be archived in the archives of the project coordination unit



allowed? (Yes/No)



data

Agency in charge of


Procedure

DLR3: System of VAT reimbursement Operational The Minister of Finance has taken a Ministerial Decisions on modalities of VAT reimbursement; a Ministerial Decision on opening a dedicated account at the Central Bank; and has issued a Circular specifying the management of the reimbursement demands

No





Finance


hired

The Independent verifier will undertake the following: Verifying that the Ministerial Decisions and Circular have been taken by the Ministry of Finance; To conduct the verification, the Tax Directorate will prepare the necessary documents, including a copy of the Ministerial Decisions and Circular has been adopted by the Ministry of Finance and submit it for verification to the independent verifier. The independent verifier will issue a report which will include all written evidence; The evidence and the report will be submitted to IDA and will be archived in the archives of the project coordination unit

DLR4: The results of the User Survey of the Performance of the Tax Administration published The Ministry of Finance has published the full report of the results of the User Survey of the Performance of the Tax

No





hired

The Independent verifier will undertake the following: Verifying that the User Survey of the Performance of the Tax Administration is available on the web page of the Ministry of Finance and that a summary of the report has been published in at least one



allowed? (Yes/No)



data

Agency in charge of


Procedure

Administration on the webpage of the Ministry of Finance and a summary of the report of the results of the User Survey of the Performance of the Tax Administration in at least one national newspaper


Finance

national newspaper. To conduct the verification, the Tax Directorate will prepare the necessary documents, including a copy of the Survey and the summary report, a report indicating the link to the webpage where it can be downloaded and a copy of the newspaper in which the summary report has been published. Ministerial Decisions and Circular has been adopted by the Ministry of Finance and submit it for verification to the independent verifier. The independent verifier will issue a report which will include all written evidence. It will also include a report by the verifier that the report has been successfully downloaded from the webpage of the Minister of Finance; The evidence and the report will be submitted to IDA and will be archived in the archives of the project coordination unit

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