The World Bank Implementation Status & Results Report Capacity Building in Public Financial Management 2 (P155148) Capacity Building in Public Financial Management 2 (P155148) EUROPE AND CENTRAL ASIA | Kyrgyz Republic | Governance Global Practice | Recipient Executed Activities | Investment Project Financing | FY 2018 | Seq No: 10 | ARCHIVED on 20-Jun-2022 | ISR50416 | Implementing Agencies: the Kyrgyz Republic, The Kyrgyz Republic Key Dates Key Project Dates Bank Approval Date: 14-Dec-2017 Effectiveness Date: 11-Jul-2018 Planned Mid Term Review Date: -- Actual Mid-Term Review Date: Original Closing Date: 31-Aug-2020 Revised Closing Date: 31-Aug-2022 pdoTable Project Development Objectives Project Development Objective (from Project Appraisal Document) The Project Development Objective (PDO) is to improve budget predictability, control and transparency in the Kyrgyz Republic. Has the Project Development Objective been changed since Board Approval of the Project Objective? No Components Table Name Strengthening budget planning and execution:(Cost $0.82 M) Building capacity of the Ministry of Finance in the public finance management:(Cost $1.07 M) Intergovernmental Fiscal Relations and Sub-National PFM:(Cost $0.63 M) Project Management:(Cost $0.39 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO Moderately Satisfactory Moderately Unsatisfactory Overall Implementation Progress (IP) Moderately Satisfactory Moderately Satisfactory Overall Risk Rating Substantial Substantial Implementation Status and Key Decisions Progress towards the development objective is assessed to be moderately unsatisfactory. The latest mission by the World Bank in April 2022 concluded that, while the project implementation is moving at a good pace and disbursement has picked up (increased from 32 percent to 68 percent of project funds between November 2021 and June 2022), for successful project completion by the closing date (August 31, 2022) and achievement of the development objective, implementation progress needs to be sustained, disbursement further accelerated, and necessary monitoring data collected compiled and reported. 6/20/2022 Page 1 of 6 The World Bank Implementation Status & Results Report Capacity Building in Public Financial Management 2 (P155148) Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance Substantial Substantial Substantial Macroeconomic Substantial Moderate Moderate Sector Strategies and Policies Substantial Substantial Substantial Technical Design of Project or Program Substantial Moderate Moderate Institutional Capacity for Implementation and Substantial High High Sustainability Fiduciary High Substantial Moderate Environment and Social Moderate Low Low Stakeholders Substantial Moderate Moderate Other -- Substantial Low Overall Substantial Substantial Substantial Results PDO Indicators by Objectives / Outcomes to improve budget predictability, control and transparency in the Kyrgyz Republic IN01109265 ►Decreased variance in functional composition of expenditure out-turn (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Reduction by at least 7 (seven) percentage Value 13.10 14% 14% points compared to baseline Date 28-Sep-2018 16-Jul-2021 01-Feb-2022 31-Aug-2022 Calculations are based on the 2020 data provided by the MoEF. Calculations will be updated in July when the data becomes avialable. The indicator may not be achieved Comments: due to COVID-19 pandemic and other external shocks. IN01109266 ►Diminished stock of expenditure payment arrears as a share of central budget expenditures (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target 5.4% 5.4% Value 4.50 Not more than 3% 6/20/2022 Page 2 of 6 The World Bank Implementation Status & Results Report Capacity Building in Public Financial Management 2 (P155148) Date 31-Dec-2017 16-Jul-2021 01-Feb-2022 31-Aug-2022 Aggregate stock of expenditure arrears without membership fees to international organizations (% of total expenditure), 2019 data. Comments: Calculations will be updated in June 2022. The team expects that after initial impact of COVID-19 pandemic, the situation has improved and the target value of this indicator will be achieved. IN01109267 ►Improved budget transparency Open Budget Index value (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Improvement over 2019/2020 index Achieved. Achieved. Value 54 out of 100 (2015) value, if updated value 63 out of 100. 62 out of 100. (for 2020/2021) is available Date 31-Dec-2015 16-Jul-2021 10-Jun-2022 31-Aug-2022 The target value of this indicator is achieved as of 2022. The 2022 value is 62 (out of 100), which is a slight slippage from the 2019 assessment value of 63, but still a significant improvement from the Comments: baseline. Intermediate Results Indicators by Components Strengthening budget planning and execution IN01109268 ►Improved revenue forecasting (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target The forecasting is done based on revenue Under implementation. Updated methodology forecasting methodology Partially achieved. Value is used to forecast adopted in 2015. There revenues is no information system on revenue forecasting Date 01-Jun-2016 16-Jul-2021 14-Feb-2022 31-Aug-2022 An Action Plan has been prepared for shortcomings and required improvements in the revenue forecasting; a model and a guide for using the model have been developed (currently under review by Comments: the MoF); training was conducted. Use of the model will be confirmed in July 2022. IN01109272 ►Increased public participation in budget process, an OBI participation score (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target The methodology has 57 out of 100 changed. The new (2019/2020). methodology-based scores suggest decline The assessment 33 out of 100. Value 52 out of 100 (2015) of public participation: questions used by OBI 33 out of 100 in 2019 to derive this indicator and 26 out of 100 in have changed, 2022. therefore, the end-of- project value will need 6/20/2022 Page 3 of 6 The World Bank Implementation Status & Results Report Capacity Building in Public Financial Management 2 (P155148) to be analyzed vs previous values more than vs. this end target. Date 31-Dec-2015 16-Jul-2021 10-Jun-2022 31-Aug-2022 Source: OBI 2019 and OBI 2022. Questions used in the OBI 2017 assessment (baseline) have changed and a direct comparison of the 2015 baseline and 2019/2022 scores is not possible. The latest score of 31 Comments: (2017) calculated using the old methodology was lower than 2019 score of 33, then the 2022 score for the same question as in 2019 has gone down to 26 suggesting a deterioration of public participation. IN01109275 ►Training in PFM area in support of PFM Strategy delivered (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target MoF Training center is actively involved into Under implementation. 700 PFM staff have Training of at least 800 Value training of relevant been trained. PFM staff officials in PFM area Date 01-Jul-2015 16-Jul-2021 14-Feb-2022 31-Aug-2022 Based on the MoF information, over 700 have been trained. Confirmation of full achievement is expected in July 2022. Comments: Building capacity of the Ministry of Finance in the public finance management IN01109269 ►Enhanced e-GP coverage (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Achieved (e-GP also Partially achieved. covers consultancy e-GP only covers goods e-GP also covers Value selection) and works procurement consultancy selection Date 30-Nov-2017 16-Jul-2021 29-Apr-2022 31-Aug-2022 IN01109273 ►Increased capacity in internal audit, number of certified auditors (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target 92 (achieved) Value 0.00 92.00 70.00 Date 30-Nov-2017 16-Jul-2021 14-Feb-2022 31-Aug-2022 Comments: Intergovernmental Fiscal Relations and Sub-National PFM 6/20/2022 Page 4 of 6 The World Bank Implementation Status & Results Report Capacity Building in Public Financial Management 2 (P155148) IN01109270 ►System of intergovernmental fiscal relations improved (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target The system of intergovernmental Under implementation. Partially achieved. No vision to improve fiscal relations Value intergovernmental improved based on the transfer system. project recommendations is fully operational Date 30-Nov-2017 16-Jul-2021 14-Feb-2022 31-Aug-2022 Three subnational PEFA assessments, that will help identify gaps and provide recommendations for improvement, were finalized in late December 2021 and made publicly available through the PEFA Comments: Secretariat website. The work has informed the policy dialogue, however due to a political decision of moving to three level budget structure, full implementation will be unlikely by the project closing date. IN01109274 ►Equalization power of the intergovernmental fiscal transfers formula improved (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Reduced by 15% Under implementation. Under implementation. Value 1653,7 for 2017 compared to the baseline value Date 31-Dec-2017 16-Jul-2021 14-Feb-2022 31-Aug-2022 Under implementation; the Bank-executed trust fund completed a review of the equalization grant formula and provided recommendations for its improvement to the MoEF for consideration. Government is planning significant administrative reforms that will have serious implications for intergovernmental fiscal Comments: relations. The latter may result in changes to the proposed formula. Project Management IN01109271 ►The PIST is fully staffed and preforms its duties timely and with adequate quality (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target The PIST is fully Achieved. Achieved. staffed and preforms Value PIST does not exist its duties timely and with adequate quality Date 01-Jun-2018 16-Jul-2021 14-Feb-2022 31-Aug-2022 Project implementation function transferred to the CLMU - the existing PIU under MoF. The CLMU is Comments: adequately staffed to efficiently perform its duties. Performance-Based Conditions Data on Financial Performance 6/20/2022 Page 5 of 6 The World Bank Implementation Status & Results Report Capacity Building in Public Financial Management 2 (P155148) Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P155148 TF-A3998 Effective USD 3.01 3.01 0.00 2.05 0.97 68% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P155148 TF-A3998 Effective 15-Dec-2017 24-Jan-2018 11-Jul-2018 31-Aug-2020 31-Aug-2022 Cumulative Disbursements Restructuring History Level 2 Approved on 10-Aug-2020 ,Level 2 Approved on 22-Sep-2021 Related Project(s) There are no related projects. 6/20/2022 Page 6 of 6