The World Bank Implementation Status & Results Report Philippines Customs Modernization Project (P163428) Philippines Customs Modernization Project (P163428) EAST ASIA AND PACIFIC | Philippines | Finance, Competitiveness and Innovation Global Practice | IBRD/IDA | Investment Project Financing | FY 2021 | Seq No: 3 | ARCHIVED on 19-Jun-2022 | ISR51398 | Implementing Agencies: Bureau of Customs, REPUBLIC OF THE PHILIPPINES Key Dates Key Project Dates Bank Approval Date: 27-Oct-2020 Effectiveness Date: 28-Jan-2021 Planned Mid Term Review Date: 12-Apr-2023 Actual Mid-Term Review Date: Original Closing Date: 30-Jun-2025 Revised Closing Date: 30-Jun-2025 pdoTable Project Development Objectives Project Development Objective (from Project Appraisal Document) The Project Development Objective is to improve the efficiency of the Bureau of Customs and reduce trade costs. Has the Project Development Objective been changed since Board Approval of the Project Objective? No Components Table Name Component 1. Modernization of Customs Operations:(Cost $84.25 M) Component 2. Organizational Development:(Cost $11.50 M) Component 3. Project Management and Implementation Support:(Cost $6.58 M) Contingency:(Cost $2.05 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO Satisfactory Moderately Satisfactory Overall Implementation Progress (IP) Satisfactory Moderately Satisfactory Overall Risk Rating Substantial High Implementation Status and Key Decisions This is the third ISR for the Project since the Project became effective on January 28, 2021. The project was approved October 27, 2020, signed December 3, 2020, and officially launched March 26, 2021. The WB project team continues to liaise closely with the BOC and the PMU to expedite implementation. The loan agreement includes disbursement conditions that the BOC has: (i) established a Project Steering Committee (PSC); and (ii) appointed a Project Supervision and Quality Assurance (PSQA) consultancy contractor to provide quality assurance support for the implementation of the Project. While establishing the PSC has been already implemented by the BOC, the fulfillment of the second disbursement condition is still pending due to additional time needed by BOC to perform the financial, technical and legal assessment of the most qualified bidder, and finalize the terms of reference for the award of the PSQA consultancy contract. Therefore, the delay in the award of the PSQA contract has impacted the preparation and implementation of the rest of the project activities. Once the PSQA contract is awarded, the PMU shall focus on the completion of the bid 6/19/2022 Page 1 of 6 The World Bank Implementation Status & Results Report Philippines Customs Modernization Project (P163428) documents for the procurement of the Administrative Back-office Enterprise Resource Planning system and Remote Image Analysis Center feasibility study, which implementation can be accelerated. In parallel, the World Bank and BOC teams are preparing a level 2 project restructuring to revise the PDO indicators. Given the discontinuation of the “Doing Business” indicators, the PDO indicators will now utilize the results from the annual Time Release Studies produced by BOC. These new indicators will allow measuring the unchanged PDO. Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance High High High Macroeconomic Moderate Substantial Substantial Sector Strategies and Policies Substantial Moderate Moderate Technical Design of Project or Program Moderate Moderate Moderate Institutional Capacity for Implementation and High Substantial Substantial Sustainability Fiduciary High Substantial Substantial Environment and Social Moderate Moderate Moderate Stakeholders High High High Other -- -- High Overall High Substantial High Results PDO Indicators by Objectives / Outcomes Improve the efficiency of Customs IN01140210 ►Time to import: Border compliance (Hours, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 120.00 120.00 120.00 80.00 Date 31-Oct-2019 21-Apr-2021 21-Apr-2021 30-Jun-2025 The time for border compliance includes the time for obtaining, preparing and submitting documents Comments: during port or border handling, customs clearance and inspection procedures. IN01140357 6/19/2022 Page 2 of 6 The World Bank Implementation Status & Results Report Philippines Customs Modernization Project (P163428) ►Time to export: Border compliance (Hours, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 42.00 42.00 42.00 30.00 Date 31-Oct-2019 21-Apr-2021 21-Apr-2021 30-Jun-2025 Same as above. Comments: Reduce trade costs IN01140356 ►Cost to export: Border compliance (Amount(USD), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 690.00 690.00 690.00 500.00 Date 31-Oct-2019 21-Apr-2021 21-Apr-2021 30-Jun-2025 Cost for border compliance includes the cost for obtaining, preparing and submitting documents during Comments: port or border handling, customs clearance and inspection procedures. IN01140358 ►Cost to import: Border compliance (Amount(USD), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 456.00 456.00 456.00 300.00 Date 31-Oct-2019 21-Apr-2021 21-Apr-2021 30-Jun-2025 Comments: Same as above. Intermediate Results Indicators by Components 1. Modernization of Customs Operations IN01140359 ►Percentage of declarations covered by the authorized economic operators program (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 20.00 Date 31-Oct-2019 21-Apr-2021 21-Apr-2021 30-Jun-2025 Comments: Percentage of declarations, based on value, which are transacted by authorized economic operators. IN01140361 ►Share of non-intrusive inspections handled by the remote image analysis centers (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target 6/19/2022 Page 3 of 6 The World Bank Implementation Status & Results Report Philippines Customs Modernization Project (P163428) Value 0.00 0.00 0.00 100.00 Date 31-Oct-2019 21-Apr-2021 21-Apr-2021 30-Jun-2025 Comments: X-ray images of containers assessed by the remote image analysis centers. IN01140363 ►Customs processing system is connected to disaster recovery data center (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No No No Yes Date 31-Oct-2019 21-Apr-2021 21-Apr-2021 30-Jun-2025 Comments: The operation of the CPS is supported by at least one disaster recovery data center. 2. Organizational Development IN01140360 ►Approved modern organizational structure (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No No No Yes Date 31-Oct-2019 21-Apr-2021 21-Apr-2021 30-Jun-2025 Comments: Organizational structure to operate under the new CPS. IN01140362 ►Financial management systems integrated into the customs processing system (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No No No Yes Date 31-Oct-2019 21-Apr-2021 21-Apr-2021 30-Jun-2025 Financial management systems developed as part of the back office ERP system are integrated with the Comments: CPS. IN01140364 ►Availability of HR and employment data that are disaggregated by grade level and sex. (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No No No Yes Date 31-Oct-2019 21-Apr-2021 21-Apr-2021 30-Jun-2025 Comments: Generation of sex-dissagregated data by the back-office ERP system. IN01140365 ►Human resource management strategy that incorporates targets for gender balance of all BOC employees (Yes/No, Custom) 6/19/2022 Page 4 of 6 The World Bank Implementation Status & Results Report Philippines Customs Modernization Project (P163428) Baseline Actual (Previous) Actual (Current) End Target Value No No No Yes Date 31-Oct-2019 21-Apr-2021 21-Apr-2021 30-Jun-2025 New human resource management strategy to operate under the modern ICT enabled environment, Comments: promoting gender balance. IN01140366 ►Share of public feedback processed by an ICT-enabled grievance redress mechanism (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 100.00 Date 31-Oct-2019 21-Apr-2021 21-Apr-2021 31-Dec-2025 Feedback received by BOC’s Customer Assistance and Response Service and Assistance Center (BOC Comments: CARES) and processed through the online GRM. Performance-Based Conditions Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P163428 IBRD-91710 Effective USD 88.28 88.28 0.00 0.63 87.65 0.7% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P163428 IBRD-91710 Effective 27-Oct-2020 03-Dec-2020 28-Jan-2021 30-Jun-2025 30-Jun-2025 Cumulative Disbursements 6/19/2022 Page 5 of 6 The World Bank Implementation Status & Results Report Philippines Customs Modernization Project (P163428) Restructuring History There has been no restructuring to date. Related Project(s) There are no related projects. 6/19/2022 Page 6 of 6