Document of The World Bank Report No: ICR00003288 IMPLEMENTATION COMPLETION AND RESULTS REPORT (IDA-42260 IDA-47730) ON A CREDIT IN THE AMOUNT OF SDR 26.90 MILLION (US$ 40.0 MILLION EQUIVALENT) AND ADDITIONAL FINANCING OF SDR 29.6 MILLION (US$44.7 MILLION EQUIVALENT) TO THE REPUBLIC OF GHANA FOR AN eGHANA PROJECT June 15, 2015 Transport and ICT Global Practice Ghana Country Department Africa Region Western Africa 1 (AFCW1) CURRENCY EQUIVALENTS (Exchange Rate Effective December 31, 2014) Currency Unit = US$ US$ 1.00 = SDR0.6902 FISCAL YEAR January 1 to December 31 ABBREVIATIONS AND ACRONYMS AF Additional Financing BOT Buy-Own-Transfer BPEMS Budget and Public Expenditure Management System BPO Business Process Offshoring CAAT Computer Aided Audit Techniques CAS Country Assistance Strategy CAGD Controller and Accountant General Department CF Consolidated Fund CFA Consolidated Fund Account CIO Chief Information Officer DANIDA Danish International Development Agency DFID United Kingdom Department for International Development EU European Union FDI Foreign Direct Investment FM Financial Management GASSCOM Ghana Association of Software and IT Companies GCNet Ghana Community Network Services GDP Gross Domestic Product GFO Ghana Fiscal Operations GFS Government Finance Statistics GHS New Ghanaian Cedi GIFMIS Ghana Integrated Financial Management Information System GIMPA Ghana Institute of Management and Public Administration GIPC Ghana Investment Promotion Centre GISPA Ghana Internet Service Providers Association GMMIC Ghana Multi-Media Incubation Center GoG Government of Ghana GovNet Government-wide Network GPRS Growth and Poverty Reduction Strategy GRA Ghana Revenue Authority GSS Ghana Statistical Service HRMIS Human Resources Management Information System IBRD International Bank for Reconstruction and Development ICR Implementation Completion and Results Report ICT Information and Communications Technology ICT4AD Information and Communications Technology for Accelerated Development IDA International Development Association IEG Independent Evaluation Group IGF Internally Generated Fund IMF International Monetary Fund IPSAS International Public Sector Accounting Standards IPPD Integrated Personnel Payroll Database IRS Internal Revenue Service IT Information Technology ITES Information Technology Enabled Services ITU International Telecommunication Union KNUST Kwame Nkrumah University for Science and Technology M&E Monitoring and Evaluation MDAs Ministries, Departments and Agencies MIC Middle Income Country MMDAs the Metropolitan, Municipal, District Assemblies MoC Ministry of Communications MoF Ministry of Finance NCA National Communications Authority NITA National Information Technology Agency P2P Peer-to-peer PDO Project Development Objective PFM Public Financial Management PIU Project Implementation Unit PPF Project Preparation Facility PPP Public Private Partnership RAGB Revenues Agencies Governing Board RGD Registrar General’s Department RICs Regional Innovation Centers SAT-3/WASC Southern African/West Africa Submarine cable SIM Subscriber Identity Module SME Small and Medium Enterprise SU Spending Unit TA Technical Assistance TIN Tax Identification Number TRIPS Total Revenue Integrated Processing System TTL Task Team Leader VATAX Virginia Department of Taxation Vice President: Makhtar Diop Country Director: Yusupha B. Crookes Practice/Sector Manager: Randeep Sudan Project Team Leader: Mavis Ampah ICR Team Leader: Kaoru Kimura GHANA eGHANA PROJECT CONTENTS Data Sheet A. Basic Information B. Key Dates C. Ratings Summary D. Sector and Theme Codes E. Bank Staff F. Results Framework Analysis G. Ratings of Project Performance in ISRs H. Restructuring I. Disbursement Graph 1. Project Context, Development Objectives and Design ............................................... 1 2. Key Factors Affecting Implementation and Outcomes .............................................. 6 3. Assessment of Outcomes .......................................................................................... 12 4. Assessment of Risk to Development Outcome......................................................... 20 5. Assessment of Bank and Borrower Performance ..................................................... 20 6. Lessons Learned ....................................................................................................... 22 7. Comments on Issues Raised by Borrower/Implementing Agencies/Partners .......... 24 Annex 1. Project Costs and Financing .......................................................................... 25 Annex 2. Outputs by Component ................................................................................. 28 Annex 3. Economic and Financial Analysis ................................................................. 41 Annex 4. Bank Lending and Implementation Support/Supervision Processes ............ 44 Annex 5. Beneficiary Survey Results ....................................................................... 47 Annex 6. Stakeholder Workshop Report and Results................................................... 48 Annex 7. Summary of Borrower's ICR and/or Comments on Draft ICR ..................... 49 Annex 8. Comments of Cofinanciers and Other Partners/Stakeholders ....................... 78 Annex 9. List of Supporting Documents ...................................................................... 85 Annex 10. Detaied Description of Legislation Supported by the Project …………….86 Annex 11. List of Companies Incubated………………………………………………92 Annex 12. Additional Information on Public-Private Partnership Activities…………95 MAP A. Basic Information Country: Ghana Project Name: eGhana Project ID: P093610 L/C/TF Number(s): IDA-42260,IDA-47730 ICR Date: 06/15/2015 ICR Type: Core ICR Lending Instrument: SIL Borrower: GHANA Original Total XDR 26.90M Disbursed Amount: XDR 56.43M Commitment: Revised Amount: XDR 56.50M Environmental Category: C Implementing Agencies: Ministry of Communications Ministry of Finance Cofinanciers and Other External Partners: Danish International Development Agency (DANIDA) Rockefeller Foundation Google European Union UK Department of International Development (DFID) B. Key Dates Revised / Actual Process Date Process Original Date Date(s) Concept Review: 06/08/2005 Effectiveness: 11/21/2006 11/21/2006 05/27/2010 Appraisal: 06/12/2006 Restructuring(s): 05/07/2014 Approval: 08/01/2006 Mid-term Review: 06/30/2009 12/01/2010 Closing: 03/31/2012 12/30/2014 C. Ratings Summary C.1 Performance Rating by ICR Outcomes: Satisfactory Risk to Development Outcome: Moderate Bank Performance: Satisfactory Borrower Performance: Satisfactory C.2 Detailed Ratings of Bank and Borrower Performance (by ICR) Bank Ratings Borrower Ratings Quality at Entry: Satisfactory Government: Satisfactory Implementing Quality of Supervision: Highly Satisfactory Satisfactory Agency/Agencies: i Overall Bank Overall Borrower Satisfactory Satisfactory Performance: Performance: C.3 Quality at Entry and Implementation Performance Indicators Implementation QAG Assessments (if Indicators Rating Performance any) Potential Problem Project Quality at Entry No None at any time (Yes/No): (QEA): Problem Project at any Quality of Supervision No None time (Yes/No): (QSA): DO rating before Satisfactory Closing/Inactive status: D. Sector and Theme Codes Original Actual Sector Code (as % of total Bank financing) Central government administration 18 36 General industry and trade sector 9 6 General information and communications sector 11 8 General public administration sector 54 44 Vocational training 8 6 Theme Code (as % of total Bank financing) Other Private Sector Development 24 13 Other accountability/anti-corruption 25 30 Regulation and competition policy 13 13 Technology diffusion 25 31 Trade facilitation and market access 13 13 E. Bank Staff Positions At ICR At Approval Vice President: Makhtar Diop Gobind T. Nankani Country Director: Yusupha B. Crookes Mats Karlsson Practice Manager/Manager: Randeep Sudan Philippe Dongier Project Team Leader: Mavis A. Ampah Mavis A. Ampah ICR Team Leader: Kaoru Kimura ICR Primary Author: Richard J. Carroll ii F. Results Framework Analysis Project Development Objectives (from Project Appraisal Document) To assist the Recipient to generate growth and employment by leveraging information and communication technologies and public-private partnerships to i) develop the information technology enabled services industry, and ii) contribute to improved efficiency and transparency of selected government functions through electronic government applications. Revised Project Development Objectives (as approved by original approving authority) No Revision. (a) PDO Indicator(s) Original Target Actual Value Formally Values (from Achieved at Indicator Baseline Value Revised approval Completion or Target Values documents) Target Years Indicator 1 : Number of jobs created in ICT/Information Technology Enabled Service (ITES) sector Value 6,000 (3,800 7,000 (4,800 8,700 (6,500 quantitative or 2,200 incremental) incremental) incremental) Qualitative) Date achieved 12/31/2005 03/12/2012 06/30/2014 12/31/2014 Comments Target exceeded (by 35%). Baseline represents total offshore employment. (incl. % Reformulated to core indicator (IT/ITES employment-number of people, 9/08/10) achievement) Indicator 2 : At least half of jobs created in the ICT/ITES sector are held by women Value quantitative or 70% More than 50% More than 66% 54.3% Qualitative) Date achieved 12/31/2005 03/31/2012 06/30/2014 12/31/2014 Comments Original target achieved. Revised target not achieved. Target was revised upward (incl. % because new BPO center specifically targeted employment of women. Once the center achievement) becomes operational, it is expected to create more job opportunities (for women, too). Indicator 3 : % increase in ITES contribution to GDP Value quantitative or 0.5% 1.5% 2.44% Qualitative) Date achieved 12/31/2005 03/31/2012 12/31/2014 Comments Target exceeded (63%, 0.94 percentage points). Indicator initially dropped (incl. % (5/27/2010), however, actual was later provided by Ghana Statistical Service (GSS). achievement) Number had to be disaggregated from GSS accounts. iii Indicator 4 : Increase in export led revenues generated by ICT/ITES industry Value quantitative or $32 million $90 million $70 million $72 million Qualitative) Date achieved 05/20/2010 03/31/2012 06/30/2014 12/31/2014 Comments Revised target achieved. Target revised downward due to lower int’l demand because (incl. % of global economic crisis. A proxy calculated based on employment and average wage achievement) in ITES. Indicator 5 : Increase in number of ICT SMEs reporting increased revenues (% of total) Value quantitative or 55% (of 18 companies) 10% Qualitative) Date achieved 05/27/2010 03/31/2012 Comments Indicator was dropped. Explanation given at the ICR mission was that it was not a (incl. % meaningful indicator because marginal increases in revenues was not an adequate achievement) indication of achievement of the PDO. Increase over the baseline in satisfaction of users with government services taken up for Indicator 6 : electronic delivery (specific services will be selected as a result of the e-govt study %/ User perception of public services (core) Value 25% over baseline quantitative or 43% 76% 9or 68%) Qualitative) Date achieved 12/31/2009 03/31/2012 02/15/2015 Comments Target achieved (after project close). “User perception of public services (%)” was (incl. % included as a core indicator in the revised indicator (5/27/2010). Source: Masdar (UK) achievement) consultant survey. Indicator 7 : Increase in number of PPPs in e-government infrastructure/applications Value quantitative or 0 3 5 Qualitative) Date achieved 12/31/2005 03/31/2012 03/31/2012 Comments Target achieved. There was actually 1 PPP contract, but it covered 5 applications: (incl. % Internal Revenue Service, Revenue Agencies Governing Board, Large Tax Office, achievement) SME Tax Office (all under GRA) and the Register General’s Department. Impact on IT/ITES sector of World Bank technical assistance (composite score: 1-low Indicator 8 : impact to 5-high impact)-CORE Value quantitative or 3 5 4.41 Qualitative) Date achieved 05/27/2010 06/30/2014 12/31/2014 Comments Target almost achieved. The target was set at ‘perfect score’ level (5), and, so (incl. % performance was good despite reaching target. Indicator added at 2010 restructuring. achievement) iv Indicator 9 : Number of direct project beneficiaries (of which females %) Value 19,900-Total quantitative or 0 10,000 (Total) 10,441-Female Qualitative) (52%) Date achieved 05/27/2010 06/30/2014 12/31/2014 Comments Target achieved. Indicator added at 2010 restructuring. Refers to non-GIFMIS (incl. % beneficiaries. Note that GIFMIS had beneficiaries who were trained (12,771) and achievement) suppliers (40,000) were also beneficiaries. Indicator 10 : Number of manpower trained (number of people) – CORE Value 5509 local 12,771-total quantitative or 0 509 foreign (16 foreign) Qualitative) Date achieved 05/27/2010 06/30/2014 12/31/2014 Comments Target achieved for total, not for foreign. Indicator added at 2010 restructuring. Refers (incl. % to number of GIFMIS trainees only. Number of trainees through the original eGhana achievement) components were tracked in intermediate indicators (Interm. Indic. 15. & 16.) Indicator 11 : MDAs applying commitment control using GIFMIS (number) Value Full use (33 33 Ministries and 250 quantitative or 0 Ministries) Spending Units Qualitative) Date achieved 05/27/2010 06/30/2014 12/31/2014 Comments Target achieved. All 33 Ministries in Accra and 250 Spending Units using GIFMIS. In (incl. % addition all 10 regional Treasuries are connected. Indicator added at 2010 achievement) restructuring. Production of systems-based quarterly GoG GFS-compliant Ghana Fiscal Operations Indicator 12 : (GFO) Report by MoF (within one month of quarter end) Value Regular GFO GFO reports are quantitative or 0 reporting and published. Qualitative) publication Date achieved 05/27/2010 06/30/2014 12/31/2014 Comments Target mostly achieved. Reports are a combination of systems and non-systems (incl. % generated reports. Systems generated reports covered only the consolidated Fund. achievement) Indicator added at 2010 restructuring. Source: MoF Production through GIFMIS of IPSAS-compliant GoG annual financial statements by Indicator 13 : CAGD for the CFA by March 31, 2012 each year Adopted IPSAS, and Value GoG annual financial quantitative or Non-compliance All funds compliant statements prepared Qualitative) by CAGD for the consolidated fund. Date achieved 05/27/2010 06/30/2014 12/31/2014 Comments Target partially achieved. Statements are IPSAS compliant except for lack of (incl. % ‘consolidation’ and inclusion of ‘third party payments.’ Indicator added at 2010 achievement) restructuring. Source: MoF v (b) Intermediate Outcome Indicator(s) Original Target Actual Value Formally Values (from Achieved at Indicator Baseline Value Revised Target approval Completion or Values documents) Target Years % increase of MDAs expressing satisfaction with the level of coordination and Indicator 1 : management by MoC Value (quantitative 32% 50% 75% 77.8% MDAs or Qualitative) Date achieved 12/31/2008 03/31/2012 06/30/2014 12/31/2014 Revised target achieved for MDAs. The original indicator inappropriately included Comments ICT/ITES companies in the satisfaction rate. ICT/ITES were covered by Interim (incl. % Indicator 9. 32% baseline irrelevant as it combined MDAs and ICT/ITES. Source: achievement) M&E Survey 2014 Indicator 2 : Decrease price of bandwidth US$4,000-E1 Value Benchmark to US$2,000 for US$1,200 for ITES (quantitative US$10,000 competition GISPA Industry or Qualitative) members Date achieved 12/31/2005 03/31/2012 06/30/2014 12/31/2014 Comments Target exceeded. Indicator revised at 2010 restructuring to refer to “bandwidth for (incl. % ITES industry”. GISPA sta for Ghana Internet Service Providers Association and is achievement) part of ITES industry. Indicator 3 : Increased protection against cyber crime Value (quantitative TBD TBD or Qualitative) Date achieved 12/31/2005 03/31/2012 Comments (incl. % Dropped after 2010 restructuring. achievement) Indicator 4 : Intellectual property legislation Value No specified (quantitative 0 4 laws 8 laws, 3 regulations law/regulation target or Qualitative) Date achieved 12/31/2005 03/31/2012 06/30/2014 12/31/2014 Comments Target achieved and exceeded. These laws and regulations provided the legal (incl. % framework for ICT/ITES development in Ghana (See details. ICR Annex 10). achievement) vi Indicator 5 : Level of investment attracted by PPPs per annum Value (quantitative 0 US$67 million US$60 million US$60 million or Qualitative) Date achieved 12/31/2005 03/31/2012 06/30/2014 12/31/2014 Comments Target achieved. Revised indicator deleted “per annum” and lowered target to US$60 (incl. % million because all applications were developed under a single PPP contract. achievement) Indicator 6 : Regional Innovation Centers established and deliver content Value (quantitative 0 10 10 or Qualitative) Date achieved 05/27/2010 06/30/2014 02/15/2015 Comments Target almost achieved (2 completed after project close). Indicator added at 2010 (incl. % restructuring. Content to be provided under follow-up eTransform project. achievement) % growth in positions held by women in ICT/ITES private sector on (i) non- Indicator 7 : managerial, (ii) managerial level Value 1,773 women-non- 28% of managerial (quantitative managerial, 20% positions held by or Qualitative) 93 women-managerial (5%) women Date achieved 12/31/2009 06/30/2014 02/15/2015 Comments Target achieved. This indicator was monitored as a share and number of women rather (incl. % than as a growth rate. The ICR mission clarified that the 20% target was intended to be achievement) the share of women in managerial positions, not the growth rate. Indicator 8 : % of people trained and successfully employed in ITES industry Value (quantitative 0 100% 71.1% or Qualitative) Date achieved 12/31/2005 03/31/2012 02/15/2015 Comments Target not achieved. The target was set unrealistically high and probably should not (incl. % have been restricted to the ITES industry as the BPO training curriculum was relevant achievement) to non-ITES jobs, and some trainees did find jobs in non-ITES sectors. Indicator 9 : Increase in ICT/ITES industry satisfaction with ITES Secretariat’s support Value (quantitative 0% 80% 81.4% or Qualitative) Date achieved 12/31/2005 03/31/2012 02/15/2015 Comments Target achieved (After project close). Revised at 2010 restructuring to replace “GoG’s (incl. % support” with “ITES Secretariat’s support.” The ICR field mission confirmed that the achievement) indicator meant to refer to the rate of satisfaction, not its increase. vii Indicator 10 : Increase in number of new companies incubated each year Value (quantitative 1 25 30 41 or Qualitative) Date achieved 12/31/2005 03/31/2012 06/30/2014 12/31/2014 Revised target exceeded. Indicator changed from "created" to "incubated actual Comments includes 25 from Kumasi Business Incubator (KBI) and 16 from the Ghana Multi- (incl. % Media Incubation Center (GMIC) which received technical assistance from the ITES achievement) Secretariat. Indicator 11 : Number of transactions on e-government applications Business Value registrations-100%, (quantitative 0 50% 40% GRA-50%, Marriage or Qualitative) licences-60% Average=70% Date achieved 12/31/2005 03/31/2012 06/30/2014 03/01/2015 Comments Target achieved (after project close). Target unit was not related to the actual or the (incl. % baseline unit. ICR clarified and updated actual achievement in percent terms to be achievement) relatable to the targets. This indicator is closely related to Interim indicator 14. Indicator 12 : GovNet uptime Value (quantitative TBD 98.7% 99.54% or Qualitative) Date achieved 12/31/2005 03/31/2012 12/31/2014 Comments Target achieved. Indicator was actually dropped at 2010 restructuring, but NITA still (incl. % tracked it. achievement) All applications developed under the scope of eGhana adhere to the IT architecture, and Indicator 13 : interoperability standards Value (quantitative 0 100% 100% or Qualitative) Date achieved 12/31/2005 03/31/2012 12/31/2014 Comments (incl. % Target achieved. achievement) % increase in the ratio of electronic to manual transactions (application specific) Indicator 14 : between government and recipients by application (target group—population with access to ICT) Value (quantitative 0 30% 40% 70% estimate or Qualitative) Date achieved 12/31/2005 03/31/2012 06/30/2014 03/01/2015 Comments Target achieved. Actual is the average for the following: Business registration - 100%, (incl. % Marriages and Estates - 60%. GRA 50%. achievement) viii Indicator 15 : Number of CIOs trained (non-GIFMIS only) Value (quantitative 0 100 856 or Qualitative) Date achieved 12/31/2005 03/31/2012 12/31/2014 Comments (incl. % Target exceeded (856% of target). 856 trained, including 96 legal and judicial staff. achievement) Indicator 16 : Number of technical staff trained (non-GIFMIS only) Value (quantitative 0 100 2,623 or Qualitative) Date achieved 12/31/2005 03/31/2012 12/31/2014 Comments Target exceeded (2,623% of target). 2422 staff trained under the automation of GRA (incl. % and RGD program; 156 staff trained under eChampions program; 45 GIS staff trained achievement) under e-immigration. Indicator 17 : BPO Center established Value (quantitative 0 10,000 seats 75% complete or Qualitative) Date achieved 05/27/2010 06/30/2014 04/28/2015 Comments Target not achieved. All 12 warehouses comprising the BPO center are close to (incl. % completion. ICR site visit noted that structures were mostly complete but interior achievement) finishes are still underway supported by other funding source (Rockefeller Foundation). Indicator 18 : Budget ceilings linked to outer year forecasts for all MDA spending (% of total budget) Value (quantitative 5% 100% 50% or Qualitative) Date achieved 05/27/2010 06/30/2014 12/31/2014 Comments Target not achieved. At least 50% of the 33 Ministries have their budget ceiling linked (incl. % to outer year forecasts. There is significant variance between actual budget values and achievement) those planned in the 3-year rolling plan. GIFMIS indicator added at AF 2010. Cumulative MDAs that implement annual program, subprogram and activity Indicator 19 : classifications (number) Value (quantitative 0 92 283 or Qualitative) Date achieved 05/27/2010 06/30/2014 12/31/2014 Comments Target exceeded. All 33 Ministries and 250 spending units) use program-based budget (incl. % classifications in the preparation of their 2015 budget (which went to Parliament for achievement) approval). GIFMIS indicator added at AF in 2010. ix Indicator 20 : Completion of review and update of FM legislative and operational framework Value 1 Implement. Review completed, (quantitative 0 action plan but not update of FM or Qualitative) Date achieved 05/27/2010 06/30/2014 12/31/2014 Comments Target partially achieved. Review of the FM legislation was carried out, but the (incl. % legislative updates have not yet been made. The IMF is currently supporting GoG to achievement) draft the updated legislation. GIFMIS indicator added at AF in 2010. Indicator 21 : Elimination of domestic payment arrears (% of GDP) Value (quantitative 4% Less than 1% 2.2% estimated or Qualitative) Date achieved 12/31/2008 06/30/2014 12/31/2014 Comments Target not achieved. GIFMIS indicator added at AF in 2010, but is not directly (incl. % attributable to project activity. achievement) Indicator 22 : Internal audit staff trained in Computer Aided Audit Techniques (CAATs) (number) Value 73 Training of 180 local staff- (quantitative 0 Trainers, More than end user or Qualitative) 180 end users Date achieved 05/27/2010 06/30/2014 12/31/2014 Comments Target achieved. GIFMIS indicator added at AF in 2010. Exact number of end-users (incl. % trained was not monitored. achievement) Indicator 23 : Treasury sites connected to GIFMIS (number) Value Full central All 33 Ministries (quantitative 0 connectivity, (100%) or Qualitative) phased MMDA Date achieved 05/27/2010 06/30/2014 12/31/2014 Comments Target achieved. Also, 7 MMDAs were connected. GIFMIS indicator added at AF in (incl. % 2010. achievement) Indicator 24 : MDAs preparing budgets on Oracle platform (number)-Hyperion Value (quantitative 0 28 33 Ministries, 100% or Qualitative) Date achieved 05/27/2010 06/30/2014 12/31/2014 Comments (incl. % Target achieved. GIFMIS indicator added at AF in 2010. achievement) x G. Ratings of Project Performance in ISRs Date ISR Actual Disbursements No. DO IP Archived (USD millions) 1 06/29/2007 Moderately Satisfactory Moderately Satisfactory 1.78 2 12/20/2007 Satisfactory Moderately Satisfactory 2.10 3 05/30/2008 Satisfactory Moderately Satisfactory 2.63 4 12/30/2008 Satisfactory Moderately Satisfactory 3.11 5 06/26/2009 Satisfactory Moderately Satisfactory 4.44 6 12/30/2009 Satisfactory Satisfactory 5.64 7 06/20/2010 Satisfactory Satisfactory 8.97 8 04/04/2011 Satisfactory Satisfactory 16.59 9 12/04/2011 Satisfactory Satisfactory 20.02 10 06/19/2012 Satisfactory Satisfactory 31.58 11 12/14/2012 Satisfactory Satisfactory 42.41 12 07/04/2013 Satisfactory Satisfactory 56.22 13 02/17/2014 Satisfactory Satisfactory 71.72 14 07/21/2014 Satisfactory Satisfactory 74.01 15 12/29/2014 Satisfactory Satisfactory 80.25 H. Restructuring (if any) ISR Ratings at Amount Board Restructuring Restructuring Disbursed at Reason for Restructuring & Key Approved PDO Date(s) Restructuring Changes Made Change DO IP in USD millions Level 2 Restructuring -Additional financing (AF) for scaling up eGhana project including the addition of the Ghana Integrated Financial Management 05/27/2010 N S S 8.97 Information System (GIFMIS) component, and extension of the closing date by 2 years and 3 months from March 3/31/2012 to 6/30/2014. Level 2 Restructuring -Extension of closing date six months from 6/30/2014 to 12/31/2014 in order 05/07/2014 N S S 73.04 to complete a number of activities including the Regional Innovation Centers (RICs) and the Business Process Offshoring (BPO) center. xi I. Disbursement Profile xii 1. Project Context, Development Objectives and Design 1.1 Context at Appraisal 1. At the time of appraisal, Ghana had just emerged from an economic crisis and was beginning to register an impressive growth rate of 5.8 percent compared to a twenty year average of 4.4 percent. The Government of Ghana (GoG) understood the urgent need to diversify its sources of growth in order to sustain this growth, as well as reach its goal of middle income status by 2015. The Government’s Second Growth and Poverty Reduction Strategy (GPRS II 2006-2009) identified three strategic sectors that could transform the country, improve its competitiveness, and further expand its economic base. These included Information and Communication Technologies (ICT)-related services, agri–processing and tourism. ICT was targeted to also improve the government’s own operations and service delivery and make them more transparent, accountable and efficient. 2. To support this new growth agenda, the GoG adopted the Ghana ICT for Accelerated Development (ICT4AD) Policy as well as a pro-investment National Telecommunications Policy, and prepared laws to strengthen the regulatory body and environment, all of which were intended to make the telecommunications sector more competitive and provide a foundation for a robust knowledge economy. These initiatives faced several important constraints to its ICT-based development strategy: i) while the country was one of the few on the continent at the time to have access to a submarine cable, the cost of international connectivity was still high, and quality low, owing in large part to monopolistic practices of operators, ii) the legal and regulatory framework was still inadequate to provide confidence for private sector investment in national backbone infrastructure; iii) the country lacked the requisite human and physical infrastructure to promote ICT/Information Technology Enabled Service (ITES) sector growth which could in turn generate employment, and iv) the Government itself lacked the technical skills, standards and infrastructure to drive the ICT4AD agenda. Rationale for Bank involvement 3. Prior to the eGhana Project, the World Bank had provided significant technical assistance to reform the telecommunications sector in Ghana including support to: (i) privatize the incumbent operator and introduce competition into the fixed market; (ii) create the Regulatory Authority; and (iii) streamline the licensing framework/validate licenses of operators. The Bank had also worked with GoG to undertake extensive analysis of the telecommunications and ICT sector potential, and identified remaining binding constraints to leveraging ICTs and ITES as potent sources of sustainable growth and transformational service delivery in Ghana. At the time of appraisal, the Bank had also acquired experience with similar support to telecommunications sector reform and in leveraging ICT for development in over 80 countries, including more than 30 countries in Africa. 4. The Bank’s experience and analytical work had confirmed the important link between ICT and growth, estimated between 0.3 to 3.2 percentage points of GDP growth for every 10 percent increase in broadband access. Ghana itself had experienced a 50 percent growth in customs revenue generation within 18 months of automating its customs processes, and the telecom sector was already contributing about 5 percent of GDP, up from 1.8 percent in less than 5 years. The eGhana project responded to the Government’s request for support in implementing its agenda for ICT-led growth. This project was based on sound analytical work and the Bank’s experience in 1 Ghana and elsewhere (including the eLanka ICT development project in Sri Lanka). The project also took into account the evidence of ICT’s potential impact for transformation of the way Government does business, and the way citizens live, work, do business and engage with government. It was also important for the Government that Bank was able to help mobilize specialized skills, particularly from the private sector, to design and implement effective policies and programs for assisting countries to make the transition to an information-based economy. 1.2 Original Project Development Objectives (PDO) and Key Indicators (as approved) 5. The objective of the Project was “to assist the Recipient to generate growth and employment by leveraging ICT and public-private partnerships to i) develop the IT Enabled Services (ITES) industry, and ii) contribute to improved efficiency and transparency of selected government functions through e-government applications.” 6. The Government and IDA agreed to measure the project performance at the outcome level against the key performance indicators including : i. Increased employment in the ICT/ITES sector ii. Contribution to GDP from ITES sector iii. Increased involvement of the private sector through Public Private Partnership (PPPs) iv. Effective and transparent e-government services through indicators measuring the degree of automation 7. The key performance indicators at the PDO and intermediate outcome levels, both original and revised, are detailed in Section F of the data sheet. 1.3 Revised PDO (as approved by original approving authority) and Key Indicators, and reasons/justification 8. The PDO remained appropriate and did not need to be changed when a new Government Integrated Financial Management Information System (GIFMIS) component was added (with additional financing in 2010, because it was also e-government application which supported the PDO of improved efficiency and transparency in government functions. A number of PDO indicators were added to reflect the new GIFMIS component. Some of the indicator targets of the original PDO indicators were revised to reflect additional financing of existing components. 9. Revised targets included a 22 percent downward revision of the increase in export led revenues generated by ICT/ITES industry from US$90 million to US$70 million to reflect the reality of the financial crisis in 2009 that reduced Ghana’s export opportunities. This was in contrast to the domestic ICT sector expansion which reflected the still strong domestic demand for ICT services, including a rapid expansion of cell phone and internet users 1. This expansion was reflected in a 26 percent upward revision of the new employment target. 1 Compound Average Growth Rate (CAGR) for mobile cell phone subscribers (2005-2009) was 38%. CAGR for Internet users (2005-2009) was 25% (Source: ITU). 2 1.4 Main Beneficiaries 10. The main beneficiaries fall into three categories (a) the people of Ghana who are using e- government applications implemented under the project; (b) government agencies, and their employees, given the use of applications to improve government efficiency; and (c) stakeholders in the ICT sector of Ghana, including the private sector and entrepreneurs. In the private ICT sector beneficiaries include those who are employed in the ICT/ITES sector. In particular female workers benefit because of the project’s emphasis on maintaining a high percentage of female ICT employees. Other private sector beneficiaries include businesses seeking opportunities to launch offshoring activities, and new entrepreneurs needing training and business contacts to advance their business initiatives. Consumers of government services benefit from easier processing of official documents such as birth and death certificates, registration of businesses and filing of tax returns. Government benefits from efficiency gains of well-planned systems that have well defined standards and are interoperable. Beneficiary institutions include the Ministry of Communications (MoC), the National Communications Authority (NCA), Ghana Revenue Authority (GRA) and Registrar General’s Department (RGD) many of whose employees will have less paperwork to process and will be able to focus on other tasks. The Ministry of Finance (MoF) and Controller and Accountant General Department (CAGD) employees will find it easier to do their jobs through automation of the national budget with linkages to the Ministries, Departments, and Agencies (MDAs). More generally, the improved legal and regulatory framework will facilitate private sector participation, promote competition, and benefit the broader economy through competitive prices, diversified and enhanced growth. 1.5 Original Components (as approved) 11. The Project was approved by the Board on August 1, 2006 and consisted of 3 main components: Component 1: Enabling Environment A. Capacity-building and operational support to Ministry of Communications (MoC) for the overall coordination, implementation, financial management, procurement, monitoring, reporting, evaluation and communication of Project activities. B. Support to National Communications Authority (NCA) for the preparation and implementation of regulatory instruments and measures to decrease the costs of international telecommunications and improve the quality of telecommunication services, including (a) Development of a strategic sector reform plan based on existing and emerging industry priorities and challenges; (b) Regulation of the access to the International Submarine Cable Gateway (SAT- 3/WASC); (c) Carrying out of a cost modeling assessment including options for tariff rebalancing and interconnection tariffs; (d) Development of quality of service guidelines and service level agreement principles and related enforcement mechanisms; and (e) Capacity-building support to NCA for the effective delivery of its key technical and economic regulatory functions. C. (a) Formulation and implementation of key government ICT sector policies and action plans in line with the Recipient’s ICT for Accelerated Development Policy; (b) Formulation and implementation of a national ITES policy to promote an enabling environment for addressing the needs and priorities of the ITES sector; (c) Preparation of new or revised key ICT legislation and regulations, including for electronic transactions (e-signature and e-commerce), privacy and data protection, intellectual property rights, cyber-crime and cyber-security, consumer protection and other related laws and regulations; and (d) Formulation and implementation of postal policies and 3 capacity-building assistance to the Postal and Courier Services Regulatory Commission to establish an environment conducive to investments in improved logistical services. D. Advisory support for the re-privatization of incumbent state-owned telecommunication companies to improve the national communications infrastructure roll-out. E. Preparation of revisions to the broadcasting and freedom of information legal and regulatory framework, including design of institutional arrangements for regulatory oversight of the broadcasting sector and provision of related capacity-building support. F. Analysis of options for the development of sustainable community information centers, and potential support for the roll out of such centers based on the analysis. Component 2: Support to Local ICT Businesses and ITES in Ghana A. Support for the development of ITES human capacity including (a) Preparation and implementation of an ITES human resources development plan, including creation of an ITES vocational training expert group with members from concerned MDAs; (b) Development of ITES skills set standards, training curriculum and training institutions accreditation mechanism, and carrying out of other short-term and long-term ITES education activities; and (c) Provision of Matching Grants to eligible public and private institutions to develop and implement ITES training programs, including designing of incentives to encourage equal participation of women. B. Establishment of a linkage program between educational institutions and ICT businesses, including the provision of Matching Grants to eligible educational institutions, for the purpose of reflecting business and operational experience into the ICT/ITES training curricula. C. Development and implementation of an investment promotion strategy to attract and retain investors in the Recipient’s ITES and business process offshoring industry. D. Support to the local ICT private sector through: (a) Provision of a Matching Grant to an eligible public or private institution to develop a shared software testing facility for the purpose of assisting local ICT small and medium enterprises to obtain international quality certification; (b) Provision of Matching Grants to eligible networks of business incubators and similar institutions to support the incubation and development of new businesses with ITES-related activities; and (c) Capacity-building and operational support to the Outsourcing Association of Ghana to nurture existing small, medium and large ITES companies and catalyze the Recipient’s ITES industry. Component 3: e-Government Applications and Government Communications A. Development of IT architecture and interoperability standards for government applications and networks. B. Provision of Government Investment Support under a public-private partnership for the setting up of a high-speed government-wide communications network connecting key MDAs for the purpose of sharing information and applications and securing government databases. C. Provision of Government Investment Support under a public-private partnership for the establishment of a shared portal infrastructure for key MDAs to reduce costs, improve security of 4 databases and facilitate the delivery of e-government services, including a data center, payment gateway, security and authentication systems and load balancing capabilities. D. Carrying out of specialized ICT training for chief information officers and technical staff of key MDAs, and for legislators and magistrates. E. (a) Carrying out of a feasibility study for the establishment of public-private partnerships in developing electronic applications of the Internal Revenue Service and other e-government applications; (b) Support for the engagement of private sector partners for such applications; and (c) Provision of Government Investment Support under public-private partnerships for the development of e-government applications. 1.6 Revised Components 12. On May 27, 2010 the Bank approved additional financing (AF) for the project of US$44.7 million, more than doubling the overall size of the project and extending the project closing date from March 31, 2012 to June 30, 2014. A total of US$ 28.44 million (IDA) went to support a GIFMIS component while the remaining U$$16.26 million addressed financing gaps in the original project. The Rockefeller Foundation provided US$3.8 million in addition to top up financing of the BPO center. The AF also included funding from development partners – United Kingdom Department for International Development (DFID), Danish International Development Agency (DANIDA) and the European Union (EU) - to support the GIFMIS component which was included as component 4 and focused on the following activities: Component 4: Ghana Integrated Financial Management Information System (GIFMIS) (IDA US$28.44m; DFID: US$15.05m, DANIDA: US$4.82m and EU: US$12.27m, Total Development Partners Additional Financing: US$32.14m) A. Establishment of modern technical infrastructure for ICT-based public financial management information systems across the government connecting the treasuries and Ministries, Departments, and Agencies (MDAs) and the Metropolitan, Municipal, District Assemblies (MMDAs) at the central, regional and district levels. B. Establishment of a public financial management business processes and control systems, including: (a) budget planning tools to support effective macroeconomic control of budget; (b) review and upgrading of public financial management regulations, rules and business processes; (c) introduction of treasury and cash management systems, including a treasury single account; and (d) strengthening of the internal financial management of MDAs. C. Provision of technical advisory services to strengthen the capacity for day-to-day management of this Component 4 of the Project. 13. There were also a number of changes to other components as part of the Additional Financing: (i) Component 1 – Reallocation of finance for transaction advisory to support two telecom privatization transactions (US$2.25 million) as GoG decided to use its own funds and accelerate the process. (ii) Component 1: US$1.2 million added to finance Regional Innovation Centers (RICs) in all 10 Regional capitals to disseminate e-government services. 5 (iii) Component 2: US$5.14 million added to finance i) capacity building at selected universities to deliver IT management and software development courses; 2 ii) establishing a quality assurance program for Ghana IT companies; 3 and iii) establishment of a Business Process Offshoring (BPO) Center to provide reliable communications and physical infrastructure to attract ITES investors to Ghana (iv) Component 3: US$ 2.5 million reallocated from financing of pilot Government-wide network. During Mid-Term Review, Bank was informed that a larger funding of at least US$ 30m had become available from the Chinese government which could develop a more comprehensive network to all 170 districts, municipalities and metropolitan areas in the country as well as provide a dedicated data center. Bank agreed to limit its involvement to technical specifications which had already been prepared. (v) Component 3: US$11.4 million additional financing to support additional e- Government applications including e-procurement and e-justice. 4 1.7 Other significant changes 14. There was a second restructuring of the project on June 30, 2014 for the purpose of giving additional time to complete the University Connectivity Program, the incubation center at Kumasi, RICs and BPO construction, as well as the GIFMIS rollout to all 250 Spending Units (SUs), training of 3,000 officers on the new budget software and completion of the viable interface between the revenue systems and the GIFMIS. The closing date was therefore extended by six months from June 30, 2014 to December 30, 2014. 2. Key Factors Affecting Implementation and Outcomes 2.1 Project Preparation, Design and Quality at Entry 15. Soundness of the background analysis. The eGhana project represented a pioneering design for ICT projects that is being replicated in a number of African countries. The project benefited from extensive analysis and information including from: i) World Bank Group’s experience in telecommunication sector reforms and its impact on sector growth in other countries, ii) a 2005 Doing Business Report which highlighted the strong link between government transparency and accountability and economic growth, iii) An Independent Evaluation Group (IEG) report on Ghana which highlighted the relatively low success of public reform projects due to weak capacity, iv) Infodev funded consultancy (Hewitt) report which identified all the key bottlenecks and success factors for creating an ITES Sector in Ghana, and iv) a detailed feasibility study which assessed public private partnership (PPP) options for e-government Activities in Ghana. 16. This analysis led to the eGhana project design with three mutually reinforcing and interrelated components to (i) creating an overall enabling environment with emphasis on improving the legal and regulatory framework for the IT /ICT sector and addressing infrastructure 2 Subsequently, the Bank and GoG teams capitalized on an offer from Google to provide this capacity in collaboration with the Bank. 3 The two teams agreed that international quality assurance standards were dynamic and readily available at minimal or no cost and therefore there was no need to invest limited resources. 4 Note, by the end of project these two applications were funded by the follow up eTransform project because of a funding gap. 6 gaps; (ii) Promoting ICT/ITES investment to create new job opportunities; and (iii) stimulating demand for better public services and use of ICT to improve efficiency, transparency and accountability in frontline Government Agencies. The Bank’s earlier analysis had also confirmed that a combined program of ITES sector development and Government Transformation through ICT, especially through PPPs, was mutually beneficial to an ICT-led growth strategy. The latter would expand opportunities for the private sector and help overcome a lack of relevant skills in government, and the ITES sector could benefit from work related to the automation processes. The project supported the ITES Secretariat under the MoC specifically to promote the IT industry by ensuring an appropriate environment for IT development, consistency and take-up of ITES training nationally, implementing eGhana activities and helping ICT small and medium enterprises (SMEs) gain access to markets. Similar support was provided to a National IT Agency (NITA) to coordinate all government IT procurements, standards and capacity building. 17. The GIFMIS component benefited from lessons of previous Bank attempts to improve IT in government. The 2003 Budget Public Expenditure Management (BPEM) project, for example, revealed weaknesses in government capacity to take on e-government without a technically experienced private partner. In the case of GIFMIS, the GoG still took the lead, partly over concerns of security of information, but used the private sector to develop the software for budget execution. As with the eGhana components, capacity and commitment concerns were recognized and were addressed mainly through a comprehensive training program in relevant units in the MDAs and MoF and Attorney General’s Department. The GoG now has 12 Oracle Certified experts who are civil servants supporting the system roll out. This investment in training has resulted in savings which would otherwise have been used for hiring external experts. 18. The GIFMIS component was prepared in response to a high priority government request to upgrade PFM at the MoF. The activities were fundamentally related to the original eGhana project 5 and fit well into the second part of the existing PDO. At the same, time GIFMIS was set up to operate as a separate project with its own project implementation unit (PIU) under the Ministry of Finance, and Monitoring and Evaluation (M&E) framework. By adding GIFMIS to the existing project rather than creating a new standalone project, the processing time for GIFMIS was approximately 12 months less, and the GoG’s urgent priority was met. 2.2 Implementation 6 19. The project implemented well for most of its long life (FY2007-2015) and adapted to changing circumstances. The project required two extensions totaling two years and nine months, which was reasonable given the doubling of the project’s resources and the addition of a major component in the middle of project implementation. Because of the complexity and ambitiousness of the project as well as the rapidly evolving ICT environment, implementation required a substantial amount of supervision (costing about US$1.5 million in Bank budget during its eight- 5 The original project was called the “eGhana project”. When GIFMIS was added, a separate implementation structure was set up, along with a separate M&E framework as well as separate supervision teams. Thus the two sets of activities are sometimes referred to separately as eGhana and GIFMIS. However, the overall project is referred to as the “eGhana project.” 6 The ICR mission was conducted just prior to project close (December 2014). Information on project activities is updated to the date of the ICR. 7 year life). The project was never at risk. The MoC made good use of PIU experts in developing and updating the legal framework for ICT, as well as for other procurements. Physically locating the PIU at the MoC facilitated implementation. Implementation Factors 20. Provision of ICT technical expertise. In addition to the ITES secretariat, the project provided expertise in the form of the Ghana ICT Directorate (which was endorsed by Parliament and renamed the National Information Technology Agency, NITA). This technical expertise combined international and local experts to support the MoC in preparing terms of reference (TORs) and technical specifications for bidding documents for all activities including establishing the legal framework. 21. Extensive consultations during Implementation. The project engaged extensively with local and international stakeholders, particularly in reviews of draft policies, legislation and regulatory instruments during implementation. This consultative process supported by technical assistance and steady Bank supervision helped achieve a broad range of legislation within an impressive time period. Eight key laws and three regulations were prepared and approved instead of the targeted four (see details in Annex 10). Consultations, while valuable, also had a downside, which was the prolonged implementation of some activities. 22. Matching grants for Incubation Centers. There was need to scale down the matching grants subcomponent as a result of poor response to the tender process to select Incubation centers. It became clear that only one university could be selected to host an incubation center (the Kwame Nkrumah University for Science and Technology—KNUST—at Kumasi). 23. Adapting to changing technology trends. The rapidly changing technology trends meant the team and government had to be highly responsive in order to capitalize on opportunities and avoid redundant expenditures. This was the case for at least two of the activities under component 2. The universities were able to negotiate with Google and other private service providers to provide some content and applications so the Bank and Government decided to focus on the connectivity for the universities where there were gaps. Similarly, emerging cloud technologies made it cheaper to test software without the expensive investments in establishing a quality assurance program and therefore a decision made to refocus more on general capacity building. 24. Use of PPPs. The deployment of PPPs in e-government was a major strategic decision, which, after some complications, paid off. The type of PPP proposed for the project was similar to a deferred payment arrangement with an interest rate assigned to the deferred period and deferred amount, but with all the risks associated with originating such deferred payments supported ultimately by the private partner. The PPP also had some unanticipated risks, including contractual issues, repayment structures, the impact of ongoing reforms, and external factors. Additional information about the PPP contract and associated risks are in Annex 12. Mid-Term Review and Additional Financing 25. After a new government came to power in 2010, it became a priority to proactively manage Government expenditures (e-applications under eGhana focused largely on revenue generation). The existing eGhana project offered a vehicle for the Government and the Bank to fast track preparation to respond to GoG’s high priority to use GIFMIS to move away from inefficient paper- 8 based budget systems by automating the process and connecting MDAs. This was one of the major accomplishments of the project. GIFMIS added several major functions: treasury, budget formulation and execution, financial reporting and more transparent use of funds. GIFMIS used a different governance structure from the original eGhana project, i.e., the MoF and the CAGD, rather than MoC/NITA. One of the success factors in implementing GIFMIS (as well as eGhana) was the recognition of requirements for successful change management. These requirements were met through workshops and other training for staff, and reliable support to MDAs. Provision of this training was a direct result of lessons from the previous, unsuccessful BPEM project. It was also important to project success that the new applications were implemented by relatively younger people (mostly university graduates) who find it easier to adapt to change. Another important factor for improved implementation was that at the mid-term the Bank TTL for the project moved to Accra which facilitated day-to-day implementation, particularly with respect to procurement. 26. A Business Process Offshoring (BPO) center development activity was added at the mid- term in response to the GoG’s priority to provide office space and connectivity to address the dearth of affordable grade A facilities for IT and BPO companies. The Hewitt report highlighted the importance of addressing this challenge in order to attract both local and international IT/ITES companies. The plan for the BPO center was for 12 public warehouses (90 x 15 meters) to be refurbished to comprise a state of the art mini ICT Park at a cost of US$8.8 million. The Bank partnered with the Rockefeller Foundation to finance this activity, with latter contributing US$3.8 million grant to the GoG. 27. The project restructuring extended the closing date to allow more time for a number of activities, including the construction of the BPO center and several RICs. While progress was made on both, they were not completed before the extended closing date. The BPO center is currently at about 75 percent completed while the all 10 RICs have been completed (2 after project closed) and awaiting content through the follow-on eTransform project. 28. Additional Funding Partners. Three Development Partners committed US$32.14 million in additional project funding, all for the GIFMIS component through a pooled funding. This represented about half of the GIFMIS funding, with IDA providing the other half. The pooled funding arrangement had difficulties because there were multiple reporting requirements from the partners, which created burdens for the PIU and the GoG. Counterparts suggested that development partners need to find a way to allow these multi-donor operations prepare a consolidated report that satisfies all donors. The Rockefeller Foundation also provided a US$3.8 million grant to complement World Bank funding for the BPO center which has worked smoothly without any significant issues. 29. At the end of the project 91 percent of all funds were disbursed. Within this percentage there was a significant shifting of resources between components, mainly from component 2 to component 1, as described in section 1.6 (also see Annex 4 for exact component totals). 2.3 Monitoring and Evaluation (M&E) Design, Implementation and Utilization 30. The overall M&E of the project was good. The results framework was relevant to measuring the PDO. The units of measurement of a few of the indicators could have been more appropriately defined, i.e., better matching of units of measurement for baselines, targets and 9 indicators. Progress in the project was closely tracked as progress reports were regular and detailed for both eGhana and GIFMIS. The two borrower ICRs, particularly from eGhana, but also from GIFMIS (see Borrower’s ICRs-condensed version-Annex 7) were thoughtful and comprehensive. This additional M&E reporting supplemented the results framework making it possible to adequately measure the PDO. 31. Design. The indicators matched the PDO’s main aims of employment and growth in ICT (e.g., growth in ITES employment and ITES contribution to GDP). Generally, indicators were well defined; relevant data collection methods, data sources and reporting mechanisms were clearly specified. In a number cases of the indicators, baselines targets and actuals were of different units. For example, the indicator “percent growth in positions held by women in ICT/ITES private sector in i) non-managerial and ii) non-managerial level,” had a number of employees in managerial and non-managerial positions for a baseline, a percentage for a target and percentage share of total positions for an actual. In these isolated cases, the ICR team had to re-examine the data with the PIU to determine actual results. On the positive side the relevant data for the indicators was maintained, and it was possible to clarify the data issues in these instances. Most of the indicators did not have issues and contributed to assessment of the PDO. 32. Implementation and Utilization. Strong efforts were made to update and supplement the results framework. The MoC hired an international consultant to develop the methodology for satisfaction surveys and set up data collection and survey rollout. The additional financing paper contained a detailed review of the framework along with the new indicators that were required for the GIFMIS component. Project reporting was detailed and was crucial to project management, as well as to help the Bank be more effective in supervision. The regular project progress reports eGhana and GIFMIS allowed both PIUs and the Bank to target efforts in implementation. For example, the M&E outputs helped the GoG determine areas, particularly on the eGhana side, where the additional financing would be most effective in scaling up activities, such as in e- government activities. 2.4 Safeguard and Fiduciary Compliance Financial Management (FM) and Audit 33. The last detailed FM review rated FM performance as satisfactory (which was the case throughout the project) and risk as moderate. The project consistently complied with the financial covenants for submission of quarterly reports and audit reports. The FM of the project also effectively managed the transition of several ongoing contracts to the follow-up eTransform project, including meeting the requirements that outstanding payments under eGhana could be transferred to eTransform. Some ineligible expenditures were identified through audit. These expenditures were resolved with a reimbursement to the project account (Annex 8 provides additional details). The PIU carried out its required reporting in a timely manner throughout the project including seven annual reports, eight annual work plans, budgets and procurement plans as well as audit reports. Audits were in full compliance. Procurement 34. All procurements were from approved procurement plans which were regularly updated when a procurement milestone was reached. A Post Procurement Review (PPR) was carried out in April 2014 and gave the project a risk rating of moderate, while Contract Administration and performance was rated substantial because of a number of delays in contract execution. 10 35. The procurement experience of the eGhana project produced an unintended benefit: The GoG used Bank procurement rules on which to base the national procurement law. Two to four years was standard for new legislation, but by working with stakeholders from the beginning helped speed up the process. Efforts to get the decision-makers’ buy-in early on, partly through involvement in a study tour, helped to get better cooperation for approvals One other benefit on the procurement side was the innovation in PPP contracting including the buy-own-transfer (BOT) approach to the tax information system. Structuring the contract in that way linked contractor compensation to performance by making it contingent on successful tax collection (which increased from 0 percent of total tax collection in 2012 to 61.7 percent by 2015). This experience led to the Bank developing special procurement rules for PPP contracts. Safeguards 36. The MoC initiated the construction of 10 Regional Innovative Centers (RICs) for disseminating e-government applications, and the refurbishment of government facilities to be used for Business Process Offshoring (BPO). The Innovation Centers are aimed at facilitating information flow towards the social and economic development of the beneficiary areas in which the facilities are to be provided. In both cases, the Government used sites and infrastructure which are Government-owned. The types of works undertaken in both cases may have direct and indirect environmental and social impacts in the affected areas and therefore triggered the World Bank policy on environmental assessment OP 4.01and O.P 4.12 which required that the project prepares an Environment and Social Management Framework (ESMF) and Resettlement Policy Framework (RPF) to address potential impacts. The ESMF was disclosed at the Infoshop and in country prior to negotiation. In addition, for the RICs and BPO Center an Abbreviated. Resettlement Action Plan (ARAP) was prepared, approved by the Bank, and properly disclosed. 37. An environmental safeguard issue emerged concerning a gas facility being placed at the BPO center during the rehabilitation work. This is expected to be removed before the BPO center is formally launched. 2.5 Post-completion Operation/Next Phase 38. The preparation of the eTransform project overlapped the last year of eGhana implementation and supports the next stage for a number of eGhana initiatives. Specifically, eTransform follows up further with: i) the enabling environment for electronic government and business, including innovation centers and capacity building for regulatory institutions; and ii) scaling up of ICT applications to improve services in priority sectors. The eTransform project has met the financing gap for a number of activities inaugurated under eGhana, including e- procurement, e-justice, e-parliament and e-immigration. MoC continues to be the lead GoG agency for the project and there is some continuity in the PIU as well. The Public Financial Management (PFM) reform project was approved in May 2015 to follow up GIFMIS achievement and continue to support PFM reform in Ghana. The PDO of the project is to improve the budget management, financial control and reporting of the Government of Ghana. The project will contribute to enhancing fiscal discipline, strategic allocation of resources and service delivery efficiency, through strengthened systems and procedures and targeted capacity building. Both eTransform project and PFM reform project are schedule to close on June 30, 2019. 11 3. Assessment of Outcomes 3.1 Relevance of Objectives, Design and Implementation Overall Relevance Rating: High 39. Objectives. Substantial. The objectives reflected the reality that ICT could be a game changer to Ghana’s efforts to reach middle income status. The GoG demonstrated its leadership through its ICT4AD strategy, which the eGhana project followed. The objectives of the project continue to be relevant to the country priorities and the Country Partnership Strategy (FY13-FY16), in particular to the pillars to improve public institutions and to foster competitiveness and employment. The PDO was also appropriately articulated to accommodate the large, new GIFMIS component. Thus it was not necessary to revise the PDO despite the large infusion of resources and new activities. 40. Design. High. The activities of the eGhana and GIFMIS components were pre-requisites for bringing the country’s ICT capacity in line with that of a middle income country (MIC). The project contained the core elements for ICT projects in MICs: establishing the legal framework, enabling local IT/ICT industries through training and technical and physical infrastructure investments and government support. The legal framework, the enabling environment for IT/ICT and expansion of government service delivery continue to be priorities in the follow-up eTransform Ghana project. 41. Implementation. High. There were appropriate adjustments during implementation which kept the relevance of the project high throughout. For example there was no longer a need to provide funds for telecommunications privatization because the funds became available from another source. Likewise, IDA funds were no longer needed to build the Government-wide Network, because funding became available from another source. Scaling up other eGhana activities and adding the GIFMIS component during implementation improved implementation relevance by meeting newly identified GoG priorities. 3.2 Achievement of Project Development Objectives Rating: Satisfactory 42. PDO: To assist the Recipient to generate growth and employment by leveraging information and communication technologies and public-private partnerships to i) develop the information technology enabled services industry, and ii) contribute to improved efficiency and transparency of selected government functions through electronic government applications. 43. The evidence for the achievement of the PDO needs to show i) increased IT sector growth and employment through development of the ITES industry; ii) improved efficiency of selected government functions; and iii) improved transparency of selected government functions. There is sufficient combined evidence from the results framework and additional M&E data to support a satisfactory rating for achievement of the PDO. Note that the ICR for this operation does not use a split rating for the PDO. This decision is based primarily on the fact that the PDO remained the same throughout the project. In addition, only one indicator target was revised downward and the ICR does not rely on this indicator for the outcome rating. In most cases, the project exceeded indicator targets, reflecting, among other factors, the increased financing on the eGhana side. New indicators were established when the new GIFMIS component was approved and they are evaluated from that point onward. 12 Growth and Employment through the Development of the ITES Industry 44. The results framework measured the generation of growth and employment through the development of IT enabled services. One of the most important indicators for the eGhana project was the growth in ICT/ITES employment to a total of 8,700 jobs which exceeded the target that had been revised upward to 7,000 jobs. An additional 10,000 jobs are expected to be generated following completion of the BPO center. The ITES contribution to GDP of 2.44 percent exceeded the target of 1.5 percent (baseline was 0.5 percent) providing evidence for achieving the PDO growth objective. Thus, in 8 years the ITES sector increased its contribution to GDP five-fold. The revised target for contribution to exports was also achieved. 45. Perhaps the most important achievement measured by intermediate indicators is the drop in the cost of bandwidth for a full circuit E1 line (between Accra and Portugal) from US$10,000 (pre-project 2005 for non-Ghana Internet Service Providers Association (GISPA) members) to less than US$1,200 for all internet and data service providers. This achievement removed a major cost constraint to IT development and use of ICT to generate economic and social activities. 46. The intermediate indicators also tell an overall positive story of IT industry satisfaction with government support and promoting public-private partnerships (a key part of the PDO). The indicator “increase in ICT/ITES industry satisfaction with GoG’s support,” met its target (81.4 percent vs. 80 percent target), which suggests general satisfaction, but it was not possible to establish a baseline for the revised indicator. The targeted level of PPP investment was met (US$60 million). The downward revision (from $67 million) simply reflected the actual contract for the PPP for the targeted five e-government applications. The PDO indicator of implementing PPPs for five government IT applications was met. The promotion of the private sector was indicated also by the fact that several International ITES/BPO companies have located in Ghana through the investment promotion efforts of the ITES Secretariat and its International Consultants. These companies include Teletech, Tech Mahindra, Comviva, QAI. 47. Creation of Enabling Environment. Establishment of the legal framework was a pre- requisite for the development of telecommunications and IT sectors in Ghana, and, therefore, growth and employment in the sector. Table 1 provides a list of legislative accomplishments under the project. The results framework measured only the number of laws and regulations, which did not capture the significance of the legislation. For example, the revised Telecom Act opened up the sector to further competition – the number of mobile operators increased from 4-6 during project period. The competitive environment was further strengthened with the Mobile Number Portability Regulations and Subscriber Identity Module (SIM) registrations which improved user confidence and choices. The Electronic Transactions Act was also the first of its kind to govern electronic transactions and covered all electronic transactions and made them binding, while also establishing a level of security for data. It also established electronic certificates. Annexes 2 (Outputs by Component) and 10 (Detailed Description of Legislation Supported by the Project) provide additional evidence of achievement of objectives. These accomplishments have resulted in Ghana being ranked very competitively on key Global competitiveness reports including International Telecommunication Union (ITU) which ranked it highest among African countries in mobile broadband (2012), and A.T. Kearney’s Global Services Destination, 2014, which ranked Ghana 29th out of the top 50 countries and number 1 among the three Sub-Saharan African 13 countries 7 that were included in the study. This progress is reflected in the PDO indicator the survey on the impact on the IT/ITES sector from World Bank technical assistance (TA), which witnessed a large increase over the baseline (from 3.0 to 4.41 out of 5.0), representing substantial achievement. Table 1: Laws and Regulations Developed under the eGhana Project No. Legislation 1. The National Communications Act, 2008 (Act 769 (Revision of the existing National Communications Act, 1996) 2. Electronic Communications Act, 2008 3. National Information Technology Act, 2008 4. Electronic Transactions Act, 2008 5. Electronic Communications Amendment Act, 2009 6. Companies Amendment Act 7. Electronic Transactions Amendment Act, 2012 8. Data Protection Act, 2012 9. Electronic Communications Regulations, 2011 10. Mobile Number Portability Regulations, 2011 11. Subscriber Identity Module (SIM) Registration Regulations, 2011 48. One shortcoming on the development of ITES was that the establishment of the Regional Innovation Centers (RICs) and the Business Process Offshoring facilities were both delayed and did not meet their targets during project implementation. Currently, all 10 targeted RICs have been built. It is not confirmed whether they have begun delivering content as called for in the indicator, but support for RICS activity continues under the eTransform project. The BPO facilities were still under construction at project close. At this writing, these facilities are at about 75 percent completion. When fully established the RICs will support IT companies and start-ups to provide services throughout the country. The BPO facility also will support local and international IT/ITES companies and help Ghana move into innovative areas which create employment in an economy where there is still an excess of labor. Efficiency and Transparency of Government Services 49. The efficiency of government services was measured in part through the increase over the baseline in satisfaction of users with government services taken up for electronic delivery (68 percent target, 76 percent actual). Prior to the automation of the Ghana Revenue Authority (GRA), tax payers were subjected to manual systems of multiple tax agencies and offices, with files often getting lost, tax assessments done subjectively, and a number of businesses able to evade taxes. The streamlined automated process provides a shared platform with real time data, and a link between Business Registration and Revenue Authorities through a unique tax identification number (TIN). The business registration process in the Registrar General’s Department (RGD) became more streamlined. The RGD portal now offers online registration transactions including: 7 Ghana ranked 29th, Senegal ranked 40th, and South Africa ranked 47th. Full report is available from A.T Kearney’s website: https://www.atkearney.com/documents/10192/5082922/A+Wealth+of+Choices.pdf/61c80111-41b2-4411- ad1e-db4a3d6d5f0d 14 business/company registration, marriage registration, estate administration, e-payments, online booking of marriage, and scheduling of appointments with officers of the department. The RGD Portal is fully integrated with GRA e-tax portal. The institution of online business transactions helped reduce processing time from several weeks to only 3-5 days which is further evidence of improved efficiency of government functions. 50. Other e-services completed include those for passports, driver’s license, birth and death certificates, and marriage licenses followed in early 2015. Increasingly, citizens can apply for services from the comfort of their homes. There are also centers where people can go if they do not have computer access, and can still gain efficiencies of not having to go to a government office and wait in line to be served. While these benefits have not yet been quantified under the project, there is significant testimonial evidence reported during the ICR field mission to confirm that reduced commute time and decreased transportation costs lead to higher labor productivity. This efficiency of public service delivery increased significantly following the launch of the online payment system which became operational shortly before project close. Figure 1 illustrates the before and after automation situations. Figure 1. Before and After Automation 51. For the GIFMIS component, the indicator measuring commitment control was the most important PDO indicator of efficiency and transparency and it was met as all 33 Ministries became connected to the central budget for the first time. The 10 regional treasuries were also connected which went beyond the original anticipated achievement. By connecting the Ministries and regional treasuries and spending units, the project improved the efficiency of government functions, in this case planning the national budget. The indicator for total manpower trained was exceeded (6,018 target, 12,771 achieved). Having an adequately trained staff for GIFMIS contributed to 15 greater efficiency and transparency and helped the project avoid the pitfalls of its predecessor, the BPEMS project. The other two indicators were production of systems-based quarterly GoG Government Finance Statistics (GFS) compliant reports and Production of International Public Sector Accounting Standards (IPSAS)-compliant GoG annual financial statements by Controller and Accountant General Department (CAGD) for the Consolidated Fund Account (CFA), both indicators of efficiency and transparency, have seen significant progress, but have only partially been achieved. 52. Though the revenue and expenditure sides of the budget are not yet linked, substantial efficiencies were gained. It is far easier now for the MDAs to communicate expenditure updates and provide information to the MoF and the CAGD. All transactions from Regional to Central levels are automated, whereas before Regions had to prepare paper invoices and bring them to CAGD. The first budget under GIFMIS went to Parliament at the end of 2014. 53. The intermediate indicator evidence for the achievement of improved efficiency and transparency of selected government functions through electronic government applications is substantial. Within government, MoC’s support to GoG’s ICT system and services was well- received. The “percent increase of MDAs expressing satisfaction with the level of coordination and management by MoC” reached its target of 75 percent (actual achievement of 77.8 percent). Government net uptime reached 99.54 percent, which exceeded the target of 98.7 percent. All applications developed under eGhana meet interoperability standards and adhere to the IT architecture, prepared under the project to support efficient and transparent applications. The project also ensured efficiency and transparency by ensuring that Chief Information Officers (CIOs-100 target vs. 856 actual) and other relevant technical staff (100 target vs. 2,623 actual) were trained in the use of e-government applications. 54. Transparency was improved by the substantial increase in automated business registrations (87,900) and taxpayer identification number (TIN) registrations (425,305), which indicated that the e-government registration application was functioning. The TINs were particularly important to improving transparency because individuals would now be identified by a unique number and transactions would be associated with that number. This new process thereby increases visibility to the public and reduces opportunities for corruption. It also makes it easier to avoid and to correct mistakes that were more common in the paper-based system. TINs have improved GRA’s operational efficiency significantly in defining and calculating the correct tax obligations of tax payers. The use of TIN improved the quality of business data remarkably at RGD as well, as TINs can uniquely identify each employee of a company. All data changes are updated in real time, and the Business Certificates are electronically generated in a centralized printer. Another indicator, the percentage increase in the ratio of electronic to manual transactions between government and recipients across several e-government applications (population with access to ICT), indirectly measured efficiency and transparency measuring the level of penetration of automation in key government services. The overall average was 70 percent (of electronic transactions), which exceeded the 50 percent target. Within this 70 percent average was varying progress in automation, with business registrations reaching 100 percent, while the electronic transaction rate had reached 60 percent for marriage and estates and 50 percent for GRA. Thus, the progress toward improved transparency and efficiency is substantial. 16 55. As GIFMIS was launched at the first restructuring (additional financing), its intermediate indicators were also established at restructuring. The main indicator, which MDAs are preparing budgets on an Oracle platform (Hyperion), was achieved which is related to another indicator, treasury sites are connected to GIFMIS (a PDO indicator). In addition, internal audit staff training was completed for Computer Aided Audit Techniques (CAATs). This training contributed to transparent government functions by building capacity of audit staff. Targets were not met for the elimination of domestic payments arrears (<1 percent of GDP target vs. 2.2 percent actual, though an improvement from a baseline of 4 percent of GDP). Elimination of domestic payments arrears, however, is beyond the scope of the project and is not relevant to the PDO, nor sufficiently linked to GIFMIS activities. The target for “Budget ceilings linked to outer year forecasts for MDA spending (percent of total budget)” was not met (20 percent achieved out of a target of 100 percent), and it is an expected result, albeit indirect, of GIFMIS. The indicators for the cumulative MDAs that implement annual program, subprogram and activity classifications was exceeded (target of 92, 283-actual). The completion of the review and update of the FM legislative and operational framework was partially achieved as the review was completed, but the legislative framework has not yet been updated. On the latter, the IMF is providing support for the legislative update. 56. The combined evidence from the results framework and other evidence supports a satisfactory rating for achievement of the PDO. 3.3 Efficiency Rating: Substantial 57. The efficiency in carrying out project activities was substantial because the costs of achieving project objectives were reasonable in comparison with the benefits achieved and norms. The ICR does not calculate an economic rate of return, but Annex 3 assesses certain benefits that can be quantified, including socioeconomic benefits that were identified in the PAD. This section examines efficiency from the standpoints of project implementation and from efficiencies created by project activities. Efficiency of project implementation 58. The contracts for the e-government applications complied with Bank competitive procurement requirements to ensure both reasonable cost and technical quality. There is no hard data with which to make unit cost comparisons as the e-government applications were tailored to the specific needs of the GoG. Overall, the project implemented in a timely fashion. For example, a 100 percent increase in the project’s IDA resources (increasing from US$38.53 million to US$76.75 million-actual) required extensions of the project date of a total of two years and nine months, representing about a 50 percent increase in the life of the project. In addition, the activities of the project demonstrated good value for money. The main contract for PPPs for all five major applications, for example, were implemented with IDA contributing US$20 million out of a US$60 million contract and the private sector contributing the remaining funds. This investment is also producing major benefits in tax administration, business registration and licensing. 8 Revenues collected through the new Total Revenue Integrated Processing System (TRIPS) , a product of the 8 EGhana components 1, 2 and 3 accounted for US$50.43 million of the IDA funds, with GIFMIS accounting for the other US$26.32 million (total of US$76.75 million IDA). 17 egovernment PPP, now accounts for 61.7 percent of total tax receipts (from a baseline of zero), which is a substantial improvement in the efficiency of collecting taxes. The Virginia (United States) tax reform process (VATAX) which was instrumental in providing a model to help design the automation of revenue agencies in Ghana, has been extremely successful. An investment of US$123 million through a PPP contract, resulted in over US$300 million in previously uncollected taxes and additional revenues of over US$72 million annually. 59. The project also created value for money by emphasizing relatively low-cost staff training in the project. More than 16,000 people were trained in the project including 12,771 under GIFMIS, plus internal audit staff for CAAT techniques, and 2,623 technical staff under eGhana and 856 CIOs). This was a cost effective way to ensure commitment to the project and successful implementation, thus avoiding the pitfalls of earlier projects (such as BPEMS). 60. The efficiency rating is lowered from a high rating because completion of some activities were delayed beyond project close including the construction of the RICs (now completed) and the BPOs (75 percent complete). Also, the formal launch of online payments for licenses and registrations took place after project close in April 2015 (the test launch of online payments occurred before project close). Efficiencies created by project activities 61. Section 3.2 assesses efficiencies created by project activities as one of the core objectives of the project. i.e., to improve efficiency through the application of ICT in government functions. In summary, replacing paper-based government functions improves efficiency for both the government and its customers. On the government side, employees will not have to maintain large paper files, nor transport them up the chain to the central level. On the consumer side, individuals and businesses will be able to complete registering and licensing on line and, more recently, pay for the service if they have access to computers and have credit cards. To date, for example, over 400,000 persons have tax identification numbers (TINs) who did not before and with this new capability, they can file their taxes on line, saving hours of time having to file taxes in person. The use of TINs has played an important role in improving efficiency of government operations at a reasonable cost. The GIFMIS outputs contribute to efficiency through more timely and accurate budget data. They also help improve financial management and control, and are expected to reduce corruption through greater transparency. Sector reporting and service delivery are also facilitated through more efficient and transparent expenditure management. 3.4 Justification of Overall Outcome Rating Rating: Satisfactory 62. With relevance of rated high, achievement of the PDO substantial and efficiency substantial, the overall outcome rating is satisfactory. 3.5 Overarching Themes, Other Outcomes and Impacts (a) Poverty Impacts, Gender Aspects, and Social Development 63. The increase in employment in ICT is an indicator of improved distribution as most of the new employment was of unemployed graduates. Gender aspects are also promoted through the active promotion of female employment in ICT, including women in managerial roles, and the progress was proactively tracked in the results framework. The Rockefeller Foundation, the 18 development partner with the Bank for the BPO center, specifically targeted women and youth from disadvantaged communities. This was the reason for revising the corresponding PDO indicator upward. 64. There was some concern with the automation of government services that government jobs would be lost because of the elimination of the paper-based system. This potential job displacement has not occurred. Instead, the effect is that staff have been able to do their jobs more productively. As noted previously, there has been a substantial net job gain with 6,500 additional jobs recorded during the project life. (b) Institutional Change/Strengthening 65. The eGhana project helped establish an ICT architecture and interoperability framework to support improved government efficiency and transparency in government services. The key legislation supported by the project helped create an enabling environment and institutional framework for electronic applications. The legislation includes revisions to the National Communications Authority (NCA) (2008), Electronic Communications Act (2008), the National Information Technology Act (2008), the Electronic Transactions Act (2008), the Data Protection Act (2012) and the Electronic Communications Regulations (2011). The latter two acts also provide for commissions to provide oversight. The project supported institutional change further through development of strategic plans for the regulatory authority, as well as large training programs for both eGhana and GIFMIS, training more than 16,000 staff. The successful launches of egovernment applications confirm the success of the legislation and complementary training as well as the PPP used to develop the applications. 66. The eTransform project is following up these initiatives by putting in place the commissions and other structures to address remaining gaps and continuing support to the NCA. (c) Other Unintended Outcomes and Impacts (positive or negative) 67. A number of unanticipated positive impacts have been identified: • Using Bank procurement procedures as a basis for Ghana’s new national procurement law. • The good implementation experience of the eGhana project created an encouraging environment for the GoG to launch GIFMIS activities which were not envisioned at appraisal. • Leverage of additional resources from development partners (US$32.14 million plus US$3.8 million from the Rockefeller Foundation) which allowed the project to have greater impact through the GIFMIS component and to allow scarce IDA funds to be used for other eGhana activities. • Automation of selected institutions also led to digitization of public records which in turn provided business and job opportunities • The technical specialists hired under the project for both e-Govt and ITES have become key resources for the sub-region. A number of countries including Benin, Burkina Faso, Liberia, Malawi, Sierra Leone, have all visited Ghana on knowledge exchange programs to draw lessons from Ghana’s experience in setting up e-government systems and institutions. The legal specialist in the PIU who supported the development of the Data Protection Act (passed November 18, 2014) is also setting up the regulatory institution for that Act, the Data Protection Commission. This demonstrates that the project expertise used in developing the legal framework will continue through to its implementation. 19 • Local institutions used for training and incubation (Ghana Telecom University College at Accra and Kwame Nkrumah University for Science and Technology (KNUST) at Kumasi) are continuing with their own certification and business incubation programs. • Pooled funding created extra reporting requirements which proved burdensome for GoG. 3.6 Summary of Findings of Beneficiary Survey and/or Stakeholder Workshops 68. Not applicable because this is a Core ICR. 4. Assessment of Risk to Development Outcome Rating: Moderate 69. The legislative gains in the IT sector are gradually becoming engrained in the ICT sector. The institutional framework is developing and is benefiting from a strong GoG commitment. For e-government applications, the automation of GoG functions including the GoG budget is highly unlikely to revert to the previous paper-based system. Staff have been involved in the design of the applications, have been trained and are gaining experience with the automated processes, which are expected to expand in the coming years. Likewise, citizens are getting used to the new e- services and the risk of reversal declines with time. The next step is to connect the revenue and expenditure sides of the GoG budget, and use the automated platform for cash management, which is planned under the new GIFMIS project, which will reduce the risk to development outcome. The eTransform project continues support and enlarges the gains under eGhana in key areas. PPPs support sustainability because they provide capital to pay for system expansion, maintenance and upgrade and technical capacity to operate and run the applications. One area where there are still some questions is the sustainability of Regional Innovation Centers (RICs) and the BPO center, and Kumasi Business Incubator (KBI), all of which need more time to establish a track record. Though they may be conceptually sound (as maintained, for example, in the feasibility study for the BPO center) their value to the ITES industry has not been demonstrated. 5. Assessment of Bank and Borrower Performance 5.1 Bank Performance (a) Bank Performance in Ensuring Quality at Entry Rating: Satisfactory 70. The Bank applied its experience of preparing ICT projects in other countries, including infoDev experiences with ITES and the eLanka project, taking into account the lessons learned particularly with respect to consultation and ownership, and worked closely with GoG to develop an innovative model for ICT that addressed the main constraints to the sector. The PDO was appropriate, and monitoring indicators, both within and outside the results framework, were tracked to measure its achievement. The consultative approach was particularly effective in establishing the legal framework for ICT and for charting the course for further development of the legal framework and implementation of e-government applications. The Bank also helped ensure that the right mix of international experience and technical expertise would be available to support the ICT sector and emphasized training to ensure commitment and successful implementation. Not all of the project activities were implemented as designed at the original project approval, but the project remained relevant because of flexibility of the Bank team. One area where the Bank could have been more careful was in ensuring that the results framework was more precise in its definitions of indicators, measurement units, baselines and targets. 20 (b) Quality of Supervision Rating: Highly Satisfactory 71. The Bank supervised the project closely and after the mid-term review and the expansion of the project scale and scope, located the supervision team in Accra. The relocation of the supervision to Accra helped accelerate implementation during a challenging time for the project, in particular after the global crisis and during the contracting for the Public Private Partnership (PPP). The Bank experience in ICT projects was applied successfully during supervision, in particular, by adding expertise at key junctures to support implementation, not only to the development of the legal framework, but also to ensure that the PPP contract would be successful. Originally, the PPPs were to be awarded under five separate contracts (one for each application), but the GoG decided to have the applications under one contract as part of reform process which merged four different tax/revenue agencies into one Ghana Revenue Authority. The Bank facilitated this by helping the GoG to rework the contractual processes. Implementation issues were greatly facilitated by the fact that there was continuity of TTL leadership for the entire life of the project. This was a critical success factor in navigating through the many changes in the project. 72. The addition of the GIFMIS component was a key decision point where Bank management took advantage of the fact that there was an ongoing ICT project, eGhana, which could shorten processing time by launching the new GIFMIS component as an additional financing (rather than as a standalone project). This decision was appropriate as it saved an estimated 12 months of processing time. The Bank managed the separate implementation arrangements and management structure through dual supervision missions. The cost of separate supervision missions was no higher than would have been the case had GIFMIS been launched as a separate project. Rather, resources were saved in the preparation because of its shorter duration. In addition, the team was able to leverage more than US$30 million for the GIFMIS component from other development partners. 73. As part of the additional financing, the Bank also provided US$16.26 million of additional resources for the eGhana components 1, 2 and 3 through additional financing which made it possible to build the RICs, the BPO center, prepare the technical specifications for new e- government applications (e-procurement and e-justice), which further promoted the ICT sector and was a bridge to the follow-on eTransform project. Also the achievement from GIFMIS (component 4) led to a new scaling-up project (Public Financial Management Reform project). In all, the Bank showed flexibility to change project activities and add major infusions of resources in key areas to accelerate ICT development. (c) Justification of Rating for Overall Bank Performance Rating: Satisfactory 74. With quality at entry rated satisfactory, supervision rated highly satisfactory, and outcome satisfactory, the overall Bank performance rating is satisfactory. 5.2 Borrower Performance (a) Government Performance Rating: Satisfactory 75. The GoG was a strong partner in the project, had a clear sense of the role that it wanted ICT to play in the economy, and how it would be promoted. At several junctures, the GoG initiated major changes to the project design, including the addition of GIFMIS to automate the national 21 budget, and the freeing up of resources from telecom privatization and matching grants sub- components to use for other activities. The GoG was also deft at adjusting to additional funds that became available through IDA and other donors involved in GIFMIS, and for the BPO center (Rockefeller Foundation). (b) Implementing Agency or Agencies Performance Rating: Satisfactory 76. The implementing agencies were the MoC, MoF and CAGD. All performed well in helping design their respective components and were proactive in making course corrections and dealing with day-to-day implementation issues. Regarding the MoC’s PIU, capacity improved over the course of the project, particularly the capacity of staff to prepare terms of reference and procurement documentation. The eGhana PIU managed 95 contracts and annual work plans and budgets were approved routinely. The PIU also carried out its required reporting in a timely manner throughout the project including seven annual reports, eight annual work plans, budgets and procurement plans as well as audit reports. Another indication of satisfactory performance is that key members of the eGhana PIU not only remained throughout the project, but have been carried over to manage the e-Transform project, which also has ensured a smooth transition to the new project. 77. The PIU for GIFMIS, located at the MoF, also implemented well and supported the connection of 33 Ministries and 10 Regional Treasuries. The PIU oversaw a training program that benefited 12,771 staff. There was regular and detailed monitoring of project inputs and outputs and reports were received in a timely manner. There was a concern by one of the development partners that there were a number of ineligible expenditures. This issue resulted in prolonged discussions with the PIU maintaining that it had followed GoG procedures, as indicated in the final Internal Audit Report. The matter was resolved and GoG refunded ineligible expenditures to the pooled account. The amount of GHS 5,222,303.79 was largely related to hiring of venue for capacity building, and represented about 3 percent of the total project cost. Details of this issue and development partner comments are presented in Annex 8. (c) Justification of Rating for Overall Borrower Performance Rating: Satisfactory 78. The GoG and Implementing Agencies’ performance were both satisfactory and therefore overall Borrower performance is rated satisfactory. 6. Lessons Learned 79. Funding of activities to improve the enabling environment is not usually a big sell but can have an enormous impact that goes beyond PDO. For example, Ghana already had international connectivity through the SAT-3/WASC submarine cable system when the eGhana project was launched. But the prevailing monopolistic pricing of the submarine cable by the then incumbent telecom company, Ghana Telecom, translated into high prices for internet and international telephony for consumers, and also for potential ITES-BPO businesses who also had to deal with poor quality of service. The challenges for the GoG were to bring the cost of bandwidth down, to improve the quality of telecommunications service delivery, and to make this connectivity deliver higher quality services to more people. To address the monopoly issue, the project collaborated with the NCA on regulation of the landing and access to the International Submarine Cable Gateway. To address the urgent need for improved quality of service and reduced prices, the ITES Secretariat, in collaboration with the World Bank also negotiated with 22 Ghana Telecom to develop service level agreements and lower costs to internet service providers and potential BPO operators from $10,000 for a full circuit to the UK/US to $5,000. This was subsequently reduced further to $1,200. The individual activities under component 1 (enabling environment) represent a good list of the main constraints to ICT development in Ghana that the project sought to address. 80. Because of the fast moving nature of technology and other external factors, it is important to maintain some flexibility to be responsive to clients. The Matching Grants and Funds Manager, for example, quickly became less relevant when only one incubation center was eligible. The same was true for content development for schools when Google and other technology firms collaborated to provide content. Other examples include consolidating 5 e- government applications to one in response to Government reform changes, increasing the estimated Government contribution in the eGovernment PPP of U$10 million to US$20 million in response to market dynamics, and structuring other e-government applications such as GIFMIS, while mitigating risks in response to Government request to ensure security of information. 81. The PPP model can be challenging to implement, but it provides strong incentives for the contractor to deliver good value. In the case of the e-government applications, the PPP contract was structured so that the contractor’s compensation was based on performance. Since reimbursement was key, the private partner would have the motivation to come forward with the optimum design of the system that will provide for additional efficiencies and revenues. 82. Bank processes such as procurement and project approval are often too slow to keep up with a rapidly developing IT sector. It was challenging for the eGhana project to keep pace with the constant need to retrofit the project to accommodate the Government’s changing needs. In one case, the project had envisioned 12 pilots for a GRA e-government application for 11 sites, but the GoG, recognizing the length of time to carry out a pilot, was eager to just cover more GRA offices (total 63 offices). Similarly, the privatization of the incumbent telecoms became an urgent political issue, and the government decided to use its own funds for transaction advisers for fear of delay by the World Bank. 83. Embedding consultants in the PIU ensure appropriate expertise, but may also cause resentment from lower paid government staff working alongside them. The resentment stemming from the large differences in salaries sometimes led to slower processing of procurement. The project originally intended to finance the incremental cost of about 15 key civil service and 9 public service personnel subject to receipt of letter from the MoF requesting such financing, confirming the formal government policy on such funding, and confirming commitment to fully absorb those costs at the end of the project in order to ensure the sustainability of the project’s accomplishments. During implementation, the Government was unwilling to provide information, and as such the incremental cost was never paid. 84. There is a positive impact of having TTLs based in the field. The fact that the two TTLs were based in the field resulted in close engagement and supervision of this relatively complicated project. 23 7. Comments on Issues Raised by Borrower/Implementing Agencies/Partners (a) Borrower/implementing agencies 85. Comments were received from MoF. MoF who also provided clarifications to the comments raised from the Development Partners regarding the issue of ineligible expenditures. See the detailed comments in Annex 8. (b) Cofinanciers 86. Comments were received from DFID and EU. These comments, along with Bank responses are provided in Annex 8. (c) Other partners and stakeholders N/A 24 Annex 1.1: Project Costs and Financing (CR-4226-GH)—Original PAD (a) Project Cost by Component (in USD Million equivalent) Actual/Latest Appraisal Estimate Percentage of Components Estimate (USD (USD millions) Appraisal millions) C 1 Enabling Environment 9.65 14.17 146.84 C 2 Support to Local ICT & ITES 9.46 3.89 41.12 C 3 E-Government 20.89 20.47 97.90 C 4 GIFMIS Total Baseline Cost 40.00 38.53 96.33 Physical Contingencies 0.00 0.00 0.00 Price Contingencies 0.00 0.00 0.00 Total Project Costs 0.00 0.00 Front-end fee PPF 0.00 0.00 .00 Front-end fee IBRD 0.00 0.00 .00 Total Financing Required 40.00 38.53 96.32 (b) Financing Appraisal Actual/Latest Type of Percentage of Source of Funds Estimate Estimate Cofinancing Appraisal (USD millions) (USD millions) Borrower 0.00 .00 International Development Association IDA 40.00 38.53 96.32 (IDA) 25 Annex 1.2: Project Costs and Financing (CR-4773-GH)—Additional Financing (a) Project Cost by Component (in USD Million equivalent) Actual/Latest Appraisal Estimate Percentage of Components Estimate (USD (USD millions) Appraisal millions) C 1 Enabling Environment 1.35 4.92 364.44 C 2 Support to Local ICT & ITES 5.25 1.07 20.39 C 3 E-Government 9.66 5.91 61.18 C 4 GIFMIS 28.44 26.32 92.55 Total Baseline Cost 44.70 38.22 85.50 Physical Contingencies 0.00 0.00 0.00 Price Contingencies 0.00 0.00 0.00 Total Project Costs 0.00 0.00 Front-end fee PPF 0.00 0.00 .00 Front-end fee IBRD 0.00 0.00 .00 Total Financing Required 44.70 38.22 85.50 (b) Financing Appraisal Actual/Latest Type of Percentage of Source of Funds Estimate Estimate Cofinancing Appraisal (USD millions) (USD millions) Borrower 0.00 0.00 0.00 United Kingdom Department for Joint 15.05 11.52 76.54 International Development (DFID) European Union (EU) Joint 12.27 9.96 81.17 Danish International Development Joint 4.82 3.97 82.37 Agency (DANIDA) International Development Association IDA 44.70 38.22 85.50 (IDA) Total 76.84 63.67 82.9% Note: This table does not include funding from The Rockefeller Foundation (US$3.8 million for the BPO Center), as well as assistance from Google. 26 Annex 1.3: Project Costs and Financing—Original and Additional Financing (a) Project Cost by Component (in USD Million equivalent) Actual/Latest Appraisal Estimate Percentage of Components Estimate (USD (USD millions) Appraisal millions) C 1 Enabling Environment 11.00 19.09 173.55 C 2 Support to Local ICT & ITES 14.71 4.96 33.72 C 3 E-Government 30.55 26.38 86.35 C 4 GIFMIS 28.44 26.32 92.55 Total Baseline Cost 84.70 76.75 90.61 Physical Contingencies 0.00 0.00 0.00 Price Contingencies 0.00 0.00 0.00 Total Project Costs 0.00 0.00 Front-end fee PPF 0.00 0.00 .00 Front-end fee IBRD 0.00 0.00 .00 Total Financing Required 84.70 76.75 90.61 (b) Financing Appraisal Actual/Latest Type of Co- Percentage of Source of Funds Estimate Estimate financing Appraisal (USD millions) (USD millions) Borrower 0.00 0.00 0.00 United Kingdom Department for Joint 15.05 11.52 76.54 International Development (DFID) European Union (EU) Joint 12.27 9.96 81.17 Danish International Development Joint 4.82 3.97 82.37 Agency (DANIDA) International Development Association IDA 84.70 76.75 90.61 (IDA) Total 116.84 102.20 87.47% Note: This table does not include funding from The Rockefeller Foundation (US$3.8 million for the BPO Center), as well as assistance from Google. 27 Annex 2. Outputs by Component The record of outputs relies on project M&E reports including the Borrower’s ICRs. Table 1 summarizes the main outputs of the project. Table 1: eGhana Project Outputs Activities Outputs Outcomes Component 1: Enabling Environment Recruitment of o ITES Division and NITA established o % MDAs expressing relevant Technical and functioning satisfaction with the level of Service Providers o 4 e-legislations developed coordination and management by MoC Provision of Funds o Broadcasting legislation developed improved o Postal Policy developed o Increased protection of o ITES/BPO Policy developed intellectual property o NCA strategic plan developed o 10 Regional Innovation Centers constructed Component 2: Support to ICT/ITES Industry Recruitment of o ICT Industry Association established o Decrease in price of relevant Technical and functioning Bandwidth for ITES industry Service Providers o ITES Skills set standards, training o Increased % ICT/ITES curriculum developed. industry satisfaction with ITES secretariat’s support Provision of Funds o Training content developed for o Increase in number of new ITES/BPO industry companies incubated o 500 BPO Agents trained o % people trained and o 25 companies incubated successfully employed in o BPO center developed ITES industry o Investment Promotion events organized Component 3: e-Government applications and Intra-government Communications Recruitment of o Enterprise Architecture and o All applications developed relevant Technical Interoperability framework developed under the scope of eGhana Service Providers and operational. adhere to the IT architecture and interoperability Provision of Funds o A government-wide network standards. connecting key MDAs established and o Increased number of functioning. transactions on e- o Portal infrastructure ( consisting of government applications data center, payment gateway, o % increase in ratio of security and authentication systems) electronic to manual developed transactions (application o Identified government applications specific) between operational (notably for Registrar government and recipients 28 General’s Department and Ghana by application (limited to Revenue Authority1 population with o Capacities of senior civil servants, connectivity) technical staff of MDAs, Legislators and Judicial Officers strengthened in e-government. Component 4: Ghana Integrated Financial Management Information Systems System Establishment o Establish and Use System o and Rollout Functionality Payroll and HRMIS o Establish and Use System Functionality Budgetary Reform o Improve Macro-fiscal Discipline and Management Cash Management o Improve Financial Management and Control, Reduce Inefficiencies and Corruption, Financial Reporting o Use the Country System for Aid Effectiveness MDA and MMDA o Improve Financial Management and Control o Sector Reporting and Service Delivery Capacity Development o Improve Financial Management and Control Highlights of Project Outputs Component 1: Enabling Environment Development of e-legislation and Broadcasting legislation. The project developed relevant policies, laws and regulations to facilitate the development and growth of ICT in Ghana. Following the adoption of an ICT-led socio-economic policy and framework for Accelerated Development (ICT4AD) and the National Telecom Policy (in 2003 and 2005 respectively), there was the need to create an open, trustworthy, transparent and non-discriminatory climate for the ICT sector which included the development of an enabling legal and regulatory environment. Subsequently, the Government, through the eGhana Project of the Ministry of Communications, pursued the development of various e-legislationto increase the competitiveness of Ghana’s e-economy in line with global best practice. At inception, the eGhana project intended to develop four (4) laws and regulations for the sector. At project closure, the target was exceeded by more than three times. In all, (8) laws and three (3) regulations were developed under the auspices of eGhana project as follows: • The National Communications Act, 2008 (ACT 769) (This law revised the existing then National Communications Act, 1996 (Act 524). 29 • Electronic Communications Act, 2008 (ACT 775) • National Information Technology Act, 2008 (ACT 771) • Electronic Transactions Act, 2008 (ACT 772) • Electronic Communications Amendment Act, 2009 (ACT 786) • Companies Amendment, Act (ACT 835) • Electronic Transactions Amendment Act, 2012 (Act 838) • Data Protection Act, 2012 (Act 843) • Electronic Communications Regulations, 2011 (L.I. 1991) • Mobile Number Portability Regulations, 2011 (L.I. 1994) • Subscriber Identity Module Registration Regulations, 2011 (L.I 2006) ITES Secretariat and NITA established and functioning. This legislation provides the statutory/legal foundation and mandate required for the existence of appropriate regulatory institutions. The legislation has also defined the regulatory institutions, their mandate, funding, staffing and reporting regimes as well as set out other laws and principles that are governing the ICT industry in Ghana. Details of this legislation are provided in Annex 10. Postal Policy developed. The policy covers eleven key areas and annexes with key performance indicators and targets. The broad areas covered are as follows: • Rationale for establishing a postal sector policy • Vision and Mission statements and objectives for the postal sector • Universal postal services definition • Other postal services outlined • Quality of service and standards • Convergence with other sectors and services • Regulation of the postal market • Role of the government • Role of the postal regulator • Role of the postal operators, and • Rights and obligations of the consumers The Postal Policy aims at maintaining a level of universal service at a reasonable cost that meets regional standards, increasing competition and progressive market liberalization and increasing market performance: improve postal market production, revenues, and quality, security, innovation, and investment levels ITES/BPO Policy developed. The BPO Policy focuses on the models and frameworks of policies required to strengthen and improve the BPO-ITES Industry in Ghana. Key recommendations have been made in the areas of Talent Development, Quality Infrastructure and Cost Competitiveness. NCA strategic plan developed. The project funded the Analysis Mason firm’s contribution to the NCA strategic plan. The firm provided 27 recommendations for the short, medium and long term plans. 30 10 Regional Innovation Centers constructed. Additional financing to establish innovation centres in each of the 10 regions of the country to encourage the use of ICTs in the regions. The program consisted of nine regional centres (minus Greater Accra) and included construction of building infrastructure, fitted with requisite LAN connectivity in nine the regions. For the Greater Accra Region, a pre-existing building at the College of Health and allied Sciences was re-designed and provided with requisite ICT equipment for use by the community. At project closure, nine (9) out of the programmed 10 Innovation centres had been completed. The 10th RIC was competed post closure. 10 Regional Innovation Centres Region Status Upper East Region Completed Upper West Region Completed Northern Region Completed Brong Ahafo Region Completed Ashanti Region Completed Volta Region Completed (after project close) Eastern Region Completed Central Region Completed Western Region Completed Greater Accra Region (GH¢) Completed Greater Accra Region (US$) Completed Component 2: Support to ICT/ITES Industry ICT Industry Association established and functioning. This component was aimed at supporting GoG in designing and implementing a comprehensive strategy to harness the potential of ICT/ITES for creating jobs and increasing investment in the sector. The component consisted of three sub-components: (i) development of HR capacity in ITES, (to address People talent sourcing driver) (ii) investment promotion, (to address external environment driver and (iii) support to ITES industry (to address incumbent and cluster driver). Under the eGhana Project, the ITESGH Secretariat was established to implement the objectives of Component II of the project. In order to achieve the underlining objective of the ITESGH Secretariat, three (3) units were established to aggressively target the identified drivers and implement interventions that will make Ghana a destination of choice for the ITES/BPO industry. ITES Skills set standards, training curriculum developed. The project developed ITES skills, set standards and curriculum for the BPO-ITES industry in an effort to realize its talent potential, and identify skill gaps in the BPO-ITES industry. The BPO-ITES Curriculum was designed on the framework of Global Skill Set Standards. The curriculum also addressed the niche areas and market segments identified in the Hewitt Competitiveness Study Report 2006. The BPO-ITES Curriculum for Ghana includes the design for a high priority basic employability training necessary for working in the BPO-ITES sector in Ghana. With basic employability as a pre-requisite, the curriculum focuses on the following 6 niche areas for Ghana: 31 • Customer Interaction • Data Entry and processing • IT Technical Support • Data Conversion • Finance and Accounting • Medical Transcription The ITES Skills set and curriculum were subsequently adopted by the Governing Council of the ITES/BPO to provide standardization in the country by the ICT training institutions. Training content developed for ITES/BPO industry. The Ghana Technology University College (GTUC) was selected through a competitive process to develop training content and train 500 BPO Agents in the identified niche areas. In order to elicit participation in the training programme, advertisements were placed in the national dailies. A rigorous selection process, involving selection interview among others, was employed as part of the trainees’ selection process. 500 BPO Agents trained. In all, 532 Agents were trained, exceeding the BPO Agents training target by 6.4 percent. 427 trainees took the BCI certification exams, with 361 passing the BCI certification exams and awarded certificates of merit. 25 companies incubated. Initially the project intended to “incubate” 30 businesses through a business incubator program. The implementation of the business incubation program experienced delays largely as a result of initial lack of understanding on the procurement packaging that should be adopted for successful business incubation in Ghana. Subsequent to several reviews of relevant procurement documents by the Bank, a contract was signed with the Kwame Nkrumah University of Science and Technology in December 2013 to implement the incubator program. The incubation centre was fully refurbished and 25 company teams/tenants are at the facility and are currently at various stages of product development. Each company team has on the average three (3) persons. Annex 11 provides a summary of the new businesses being incubated. Development of BPO center. At additional financing it was decided to establish a BPO centre that would provide Grade A real estate infrastructure for BPO companies to enhance job creation in the ITES-BPO space. This objective involved the refurbishment of PWD warehouses in Accra which consist of 12 structures, each of which measures 750 m2 (50m x 15m). In addition a one- storey office building with 24 rooms to serve as common service area was to be constructed. The refurbishment include an upgrade on existing facilities and the installation of technical equipment to suit the required use including (i) plug and play office infrastructure, (ii) shared facilities, (iii) custom built office infrastructure, (iv) ancillary infrastructure (e.g. roads, power, water/sewerage and IT connectivity), and (v) renovation of physical facilities. Investment Promotion events organized. The investment promotion activity under the ITES Secretariat was aimed at attracting and retaining investors in Ghana through developing and implementing an integrated and effective investment promotion strategy to market Ghana as an ITES and BPO destination in collaboration with the ITES/BPO industry association, Ghana Association of Software and IT Services Companies (GASSCOM). The Ghana Free Zone Board and the Ghana Investment Promotion Centre (GIPC) have been promoting foreign direct 32 investment (FDI) in Ghana. Until this unit was formed there was no single agency entrusted with promotion of all types of FDI within the ITES-BPO sector. In order to ensure that GoG’s commitment to market reforms have greater credibility and visibility in the international and national business community, it was proposed that the unit undertake promotional activities to attract demand for the ITES industry in Ghana are centralized under the ITES Division, working in association with GIPC, GFZB and GASSCOM. In pursuit of this, Avasant of USA was engaged as the Resident Investment and Management consultant in 2009 for a period of two years to assist the secretariat to brand and package Ghana as the preferred destination for ITES/BPO investors in Africa. Component 3: e-Government applications and Intra-government Communications Enterprise Architecture and Interoperability framework developed and operational. It was programmed at project inception to develop The Ghana Government’s Enterprise Architecture (GGEA) and e-Government Interoperability Framework (e-GIF). This deliverable was realized as early as the third year of project implementation. The Ghana Government’s Enterprise Architecture (GGEA establishes a framework/ methodology in the use of Information Technology to run Government business. This framework helps the MDAs to define their business, the information necessary to operate the business, the technologies necessary to support the business operations, and the transitional processes necessary for implementing new technologies in response to the changing business needs. The GGEA helps in interagency and intergovernmental data collection and management, to improve data sharing capabilities and reduce costs of acquiring and managing data. The following documentation was produced under the GGEA: • Implementation Plan • Assessment Methodology • Implementation Guide • Monitoring & Evaluation • Training Manual A government-wide network connecting key MDAs established and functioning. The project developed a Government wide Network (GovNet), which is a communication Infrastructure aimed at connecting all government agencies onto a single shared and secured communication platform to promote eGovernance, enhance productivity within government and foster transparency in governance. The GovNet was to employ different technologies including radio and fiber to connect these government agencies round the country. The eGhana project developed the concept and plan for the GovNet with a smaller scope (Metro Network in Accra and Tema). Subsequently, the government changed the scope to be nationwide with a phased approach deployment and sourced additional funding from the Chinese government for the expanded scope. This project was therefore built on the blueprint developed by the eGhana Project. The GovNet has been deployed to all regional capitals and 15 districts across the country. This has resulted in over 300 government organizations in the country connected together and sharing information. The GovNet is the communication infrastructure providing connectivity to critical government applications such as the GIFMIS, GRA and RGD tax and business registration platform. 33 Portal infrastructure (consisting of data center, payment gateway, security and authentication systems) developed. The Ghana E-Payment Platform (GEPP) is a feature-rich payment processing and e-Commerce solution which is integrated with the Governments eServices Portal. The solution is installed on NITA’s Data Center infrastructure. It is highly scalable to meet the expected high usage. The eServices Portal has been integrated with the Government e-Payment Platform for collection of revenue online for 11 Agencies. The platform allows online payment via VISA Credit/Debit Card, MasterCard Credit/Debit, e-Transact Card, Airtel Mobile Money, MTN Mobile and Cash and Cheque payments. The payments received by the Government online services (eServices) Portal, is for Government services, licenses, taxes, fee payments, fixed fees, tangible goods, services payments, ad-hoc services etc. The Agencies participating on the eServices Portal include MFA-Passport offices, DVLA, AMA, FDB, GTA, NCA, GHS-CID, Mineral’s Commission, NIA and BDR. GEPP is also providing online payment support for services on the GRA and RGD portal. Identified government applications operational (notably for Registrar General’s Department and Ghana Revenue Authority). The project supported the development of a number e-government software applications: • Application Software for GRA-- Total Revenue Integrated Processing System (TRIPS) – Integrated Tax Administration Software Modules (Tax Registration, Returns Processing, Exemptions, Tax Payer Accounting, Refunds, Case Management, Collections, Revenue Accounting, Enforcement and Compliance, Risk Analysis, Management Audit & Visit, MIS Reports) • Citizen Service Portal--Tax--Online services portal with services including Taxpayer Registration , Taxpayer Assessments, Taxpayer Collections, Gift tax and capital gains declaration, Tax Refund approvals by Tax Audit, Tax filing • Application Software for RGD--GEREG – Application for RGD Modules including Business Registration, Business Registration Renewal, Business Re-registration, Name Reservation, Change of Business particulars, Annual Returns and Renewals, Business Close down, Registration of Marriages, Administration of Estates, MIS Reports. • GEREG Upgrade (e-Registrar) – System Requirement Specifications produced and User Acceptance Tests Phase One conducted for an upgrade of GEREG Application for RGD Modules including Business Registration, Business Registration Renewal, Business Re- registration, Name Reservation, Change of Business particulars, Annual Returns and Renewals, Business Close down, Registration of Marriages, Administration of Estates, MIS Reports. • Citizen Service Portal—Non Tax--System Requirement Specifications produced for Business Registration, Business name search, Business name reservation, Business Registration Renewal, Business Re-registration, and Request for Change of Business particulars. • Shared Service Tools - Portal, Email and SMS Notification, Appointment and Scheduling, Live Chat Service • Integration with Government Electronic Payment Platform. The GRA and RGD Citizen Portals have been integrated with the Government e-Payment Platform for collection of revenue online for GRA and RGD. The platform allows online payment via VISA Credit/Debit Card, MasterCard Credit/Debit, e-Transact Card, Airtel Mobile Money, MTN Mobile and Cash and Cheque payments. 34 Capacities of senior civil servants, technical staff of MDAs, Legislators and Judicial Officers strengthened in e-government. The e-Leadership Capacity Building Programme was geared to develop the attitude, skills and knowledge (ASK) of top public servants towards a more ICT- friendly orientation, to prepare the environment for the positive reception of e-Government initiatives in the pipeline. The expected strategic outcome will be an improvement in productivity in government administration and an enhancement of service delivery. It is expected that this initiative will lead to better interaction and coordination of work among Ministries, Departments, and Agencies (MDAs), and between government and citizens, and government and private businesses. Component 4: Ghana Integrated Financial Management Information System System establishment and Rollout Chart of Accounts. In July 2011, the new GFS compliant Chart of Accounts was finalized and used as the basis of an extensive training program for MDAs and MMDAs across the country. The Chart of Accounts was to be published with the Budget estimates for 2012, and distributed to all MDAs and MMDAs at the beginning of December 2012. MoF prepared the 2012 budget in ACTIVATE using the new harmonized CoA (COFOG /GFS Functions and Economic Object segments in addition to other local segments) as approved by CAGD. The definition of the structure of the chart of accounts and the correct codification of the impersonal and personal accounts in the general ledger, accounts payable and accounts receivable sub ledgers is the foundation of the accounting system and therefore the cornerstone of the Ghana Integrated Financial Management Information System. The CoA was updated for 2014 fiscal year. The 2013, 2014 and 2015 approved budgets were prepared based on the new COA and loaded on the GIFMIS. Wide Area Network: A combination of technologies have been applied in extending WAN to MDAs, including fiber optic cables, Long-Term Evolution (LTE) technology, and Radio. Due to urgent need to address specific network constraints of selected MDAs in Accra under the Project, two contracts were awarded for the procurement and installation of equipment for network expansion in the selected MDAs. As of December 2014, 192 out of the 230 identified SUs in Accra had been connected (83%). To facilitate transaction processing for MDAs without network connectivity to the system, 32 Transaction Processing Centers (TPC) were set up across the country (22 in Accra and 11 in regional capitals). Bringing IGF on board GIFMIS (Ex-post and Ex-ante): Substantial progress has been made. The two pilot MDAs – MoH and MoE (together with their Departments & Agencies across the country) have been trained to capture their Internally Generated Funds (IGFs) on GIFMIS on ex- post basis and have gone live. EPA was also piloted on ex- ante basis. Sensitization and training programs have been organized for key staff of EPA with 70 staff attending from EPA. EPA since June 2014 has been capturing their transactions on GIFMIS on ex-ante basis. There are about 1090 transactions on the system, 503 revenue items and 587 expenditure items. Bringing Donor Funds on board GIFMIS: Ministries of Communication, Finance, Food & Agriculture, and Energy have been selected as pilots to implement the inclusion of donor funds 35 on ex-ante basis, initial meetings were held with the pilot MDAs to understand the operations of the donor funds, and follow-up meetings were also held with the pilot MDAs to agree on their business processes through a checklist developed by the Team. A sensitization workshop was held in April 2014 followed by training for the key users. Go-live for the 4 pilot MDAs scheduled for April 23 2014 could not take place due to financial constraints. Rollout to MDAs. The full GIFMIS peer-to-peer (P2P) functionality was rolled out in a phased manner in 5 rollout tranches as given below after a successful pilot at the CAGD and MoF. Over 200 spending units were targeted in Accra. - Pilot Sites CAGD and MoF: Go live date 1st June 2012 - Tranche one: Four MDAs Headquarters (from 11th June, 2012) - Tranche two: 114 MDAs in Accra (from 3rd Sept. 2012) - Tranche three: the rest of MDAs in Accra (from 24th Sept. 2012) - Tranche four: Regional Deployment – December 31, 2012 - Tranche five: Phased MMDA deployment (subject to MMDA study underway) By the end of December 2012, the system had been deployed to all Ministry Headquarters, Regional MDAs and the 10 Regional Treasuries for consolidated fund only: The break-down of roll-out is given below: Target for P2P Original Enhanced Actual Gap/Planned (on- (on-site) Roll-out Target Target site) roll-out MDAs HQs in 28 33 33 0 Accra SUs in Accra 0 250 250 0 Regions 10 10 10 0 MMDAs 0 46 7 39 Payroll and HRMIS Payroll Upgrade: Upgrades of software and hardware have been made and the latest version of the Oracle Payroll has been implemented and integrated with the Oracle Financials. The Functional upgrade was implemented in July 2012. The functionalities were reviewed and improved by de-customizing the payroll in areas in which standard functionality is available in the new release. Technical upgrade of payroll/IPPD2 from Oracle version 11 to 12 was implemented from July 2013 to make payroll consistent with Oracle Financials/GIFMIS Release 12. The migration of Integrated Financials/Payroll was completed and moved onto the RAC environment in September, 2014. HRMIS : The Public Service Commission engaged a Consultant to implement phase 1 of the two phased Oracle HRMIS to support position management, employee profile management and employee cost management. An estimated total of 439,982 staff from 9 Agencies were to be included in the HRMIS Phase 1. The contract commenced in November 2013 for completion by September 2014. However, since March 2014, progress with implementation of the assignment 36 has been impeded by the delay in the delivery of the single merged (payroll and Financials) instance to PSC- an instance which contains: (a) both payroll and financials , (b) Properly aligned organizations for the pilot MDAs , (c) Staff correctly aligned to their organizations , (d) Updated jobs for all the pilot MDAs. It is expected that PSC will be given the Single Merged Final and Updated Instance for the 9 Pilot agencies soonest to enable them Go-live by 15th May, 2015 Budgetary Reform Budget reform comprises a range of activities aimed at fully using GIFMIS functionality to allocate and control resources. These budget activities when implemented will address the long- standing issues that have made the budget unrealistic and have been the major contributor to prolonged delays in release of funds during budget implementation. Programme Based Budgeting is a major reform underway in budgetary management which will see MoF transition from the long-standing system of Activity Based Budgeting (ABB) to a new system of Programme Based Budgeting (PBB). A key feature of PBB is that it organizes the budget and service delivery around main result areas in terms of service delivery. In terms of the approved budget, PBB provides a mechanism for the organization of allocations of expenditure approved by Parliament in terms of the desired results. Hence the allocations to programs in the budget should be a reflection of the priorities established at the political level attached to the provision and enhancement of the various services provided by the public sector. Cash Management The primary objectives of cash management is the reduction of public sector borrowing costs and improving the predictability of expenditure commitments and timely liquidation of obligations. Establishment of a Treasury Single Account (TSA), transparently embodying all government funds including Internally Generated Funds (IGFs) through an IT system is key to the attainment of the cash management objective. Actions taken on the implementation of TSA include the following. - 6255 bank accounts were identified at BoG out of which 1,500 dormant ones were closed. - 410 of the remaining 4755 have been earmarked for the TSA whilst consultations are currently ongoing between CAGD and MDAs to rationalize the remaining4345 bank accounts. A cash management working group has been established, jointly chaired by the Director of Budget and CAG, with members drawn from MoF, CAGD, GRA, and BoG. The Working Committee meets weekly and manages monthly budget releases and domestic borrowing requirements. It reports to a Cash Management Committee chaired by the Minister of Finance, with the CAG, the Governor of the BoG, and the Commissioner-General of GRA as members. The Committee meets monthly. Current operations of the cash management working group are hampered by the unreliability of cash forecasting, and changes made to claims on the resource envelope during the year. Loan Agreement signed with BOG Financial Reporting 37 A Consultant was engaged in April 2013 to develop and implement a road map for adoption of IPSAS. Development of a roadmap for implementation of IPSAS by the CAGD was delayed until November 2014. Implementation of IPSAS by the CAGD has been delayed largely because policies on IGFs and donor funds are yet to be finalized. The CAG has initiated discussions with the Institute of Chartered Accountants of Ghana (ICAG) to collaborate in the orderly implementation of IPSAS. Key issues outstanding include - Complying with Cash Basis standards (with inclusion of 3rd party transactions, definition of entity, and consolidation), while transitioning to full accrual basis - Production of International Public Sector Accounting Standards (IPSAS) compliant GOG annual financial statements by CAG MDA and MMDA and Capacity Development Training was initially conducted on ad hoc basis, until a Consultant was engaged in October 2011 to develop GIFMIS Training Strategy and Plan. The strategy of the GIFMIS training programme, as proposed by the Consultant, was to stratify the training population into logical groups, identify the specific training needs of each group and develop relevant training programmes to address the identified needs. End users were expected to immediately apply what they learn to their specific job responsibilities. Each audience was to receive an individual curriculum and training course materials that support the business processes in which they work as well as an overview of where transactions fit into the larger picture with the newly developed processes. Training plan was updated in 2013 to include PBB and HRMIS. The following key training programs were delivered • 2012 : - Oracle University Training - All MDA end-users of GIFMIS at national and regional levels were trained on P2P in 2012. • 2013 - 30 internal auditors were trained as ToTs - 1st round in-house training conducted for 20 officers on P2P modules. - In-house refresher training conducted for Advocates and ToTs. - 20 more potential advocates identified to be trained to support end-users. - 20 staff trained in-house to support the three IOEs - Training conducted for all MDAs on PBB concept - 35 Advocates and 62 ToTs (40 for Accra, 22 for the Regions) trained to support GIFMIS end-users. - Training for 1st seven MMDA staff carried out - 40 ToTs trained for Accra, 22 for the Regional MDAs, and additional 432 to be trained for the 216 MMDAs - IT staff for MDAs in Accra and 22 for the Regional MDAs trained to provide first line support to end users 38 - A number of knowledge transfer schemes in place where TAs are required to transfer knowledge to local teams at the functional and technical fronts. (i.e OCS, QA, CM, F&A, M&E, Communication, BCP strategy training, etc.) - Pre hands-on training Sensitization workshop held for 550 internal Auditors. - Hands-on training delivered to 550 Internal Auditors. - A Post Training Evaluation methodology was developed and being administered. - Siddique to provide dates for training • 2014 - 120 Internal Auditors trained on IDEA application. - 70 additional Internal Auditors trained as ToTs. - Refresher training for all advocates and TTTs on New Business Processes – 134 participants - 3-5 March 2014 (1st Batch) and 10-12 March 2014 (2nd Batch) - Training of future Internal Oracle Experts on XLM Work Flow, System Set-up etc. – 10 participants – March 10 2014 - Training of GRA staff on P2P - 21 participants - March 2014 - Fixed Assets Module Training: Conference Room Pilot of the solution for 24 personnel from 5 Pilot MDAs and selected GIFMIS Staff – March 26 to 28 2014 - Training of staff of MLGRD on fixed asset data capturing template 12 participants - March 31 2014 - ORACLE CERTIFICATION TRAINING: a total number of 12 were trained in three batches of 4 from February to July 2014 in India. Project Management Project Secretariat was established in 2009 as a condition for effectiveness of the Project Executive Steering Committee was also inaugurated in 2009 The Project Directorate was created in 2010, headed by a Project Director and initially supported by 5 (out of 8 proposed) specialist teams to manage the overall coordination of implementation. Back-office Team, responsible for procurements and financial management of project funds, was established in 2010. Consultants were recruited to provide technical assistance in the fields of Procurement, Cash Management, Finance & Accounting, Communication, MMDA study, HRMIS/Payroll, M&E, Quality Assurance and Training. By 2012, Two Deputy Project Directors (one for GIFMIS and the other for Budget Reforms) were appointed to assist the Project Director. The other operational end of the project implementation consists of: Functional Managers, Super Users (GIST), the Train the Trainers Team, and the Oracle Functional and Technical in-house experts, Project Advocates and Implementation Coordinators The institutional arrangement was further refined in 2013 as follows: - Project Director –GIFMIS - Deputy Project Director –GIFMIS - Project Director- Budget Reforms - Project Director - HRMIS 39 Refurbishment of GNA building for use as GIFMIS Secretariat was completed between May and November, 2012 to address challenges with office space. 40 Annex 3. Economic and Financial Analysis 1. The original eGhana PAD identified potential economic, financial, and social benefits of the project were examined including: (i) a broad range of social benefits from employment, governance and women participation; (ii) higher economic returns from a strong ITES-BPO industry and increased productivity from use of ICT products and services for government, businesses and citizens, and (iii) greater fiscal returns due to new sources of revenue. For GIFMIS component, the additional financing paper did not provide a detailed economic analysis. GIFMIS was expected to improve transparency and efficiency of selected government functions. 2. Annex 9 in the PAD observed that a large portion of the benefits gained from the project would be of a socioeconomic nature, and acknowledged that these benefits cannot be fully quantified. The PAD presented several projections of the project results using historical data, instead of traditional economic and financial analysis (e.g. Cost-Benefit Analysis). These projections were only partially attributable to the project. Neither economic rate of return nor financial rate of return were calculated in the PAD. 3. By the time the ICR, several approaches have been undertaken internationally to measure the impacts of e-government interventions (e.g. system automation by ICT, e-services), but a common approach has not yet been developed 9. Thus ICR reviews the initial projections and evaluate the project achievement. (i) Broad range of social benefits from employment, governance and women participation 4. Annex 9 in the PAD projected the ITES-BPO sector growth in Ghana along with historical employment data. Annex Table he following table shows the comparison of the actuals against projection. Although Ghana experienced economic downturn after the global economic crisis (“Lehman Shock” in 2008), the ITES-BPO sector employment reached 8700 in 2014, which was beyond the project-end target of 6,714 people. In terms of female employment in ITES-BPO sector, 54.3 percent of incremental jobs in ITES-BPO sector were held by women. This percentage would have been higher had the BPO center become operational because this center targeted a high percentage of female employment. Annex Table 3.1. Actual vs. Planned ITES-BPO Employment Growth (No. of people) Year 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Employment in 200 364 662 1206 2194 2200 ─ ─ ─ 3050 3263 7476 8900 8700 ITES-BPO sector PAD Projection 10 ─ ─ ─ ─ ─ ─ 2524 2903 3338 3839 4414 5077 5838 6714 9 European Commission, “Study on eGovernment and the Reduction of Administrative Burden”, 2014. https://ec.europa.eu/digital-agenda/en/news/final-report-study-egovernment-and-reduction-administrative-burden- smart-20120061 10 Assumes 15 percent annual growth rate. 41 (ii) Higher economic returns from a strong ITES-BPO industry and increased productivity from use of ICT products and services for government, businesses and citizens 5. The PAD’s ITES-BPO sector revenue forecast was based on the empirical data from the BPO sector in India. This projection was optimistic as external factors (stability of local currency, global economic trends, etc.) were not fully anticipated. For example, the global economic crisis since 2008 reduced demand for outsourced labor and affected the ITES-BPO sector in Ghana. Despite the crisis, the targets for PDO indicators measuring performance of the ITES-BPO sector (PDO indicators 3. and 4. see details in the ICR datasheet page iii) were met. 6. In terms of the productivity measurement for the use of ICT in government, business and citizens, the project supported the setting up of IT architecture and interoperability standards for government applications and networks, and developed key e-government services. These constituted the foundation for IT development. One key achievement for the e-government applications was the automation of the tax system for the Ghana Revenue Authority (GRA). Although additional tax data are needed to measure the precise revenue effect of the project, the GRA is already reporting positive effects of automating tax administration, as Annex Table 3.2 shows. Annex Table 3.2. Tax collected through TRIPS Year 2013 2014 2015 (Q1) Tax amount collected through TRIPS 10% 25.7% 61.2% Source: GRA. 7. The matrix below summarizes the main costs and benefits of using ICTs for public service integration, for both the government and end users. Annex Table 3.3. Main costs and benefits of using ICTs for public service integration Costs for the government Benefits for the government • Investment costs: system planning and development, • Direct benefits: implementation, capacity building (training) o Monetary benefits: time saving, greater revenues, reduced costs (travel, personnel, etc.) • Operating costs: ICT management (maintenance, o Non-monetary benefits: efficiency gains, upgrade, replacement) and monitoring service delivery transparency gains due to streamlined transactions and system automation (reduced number of transactions, redundancy, and errors; improved data quality; more efficient use of existing resources) • Indirect benefits: a better and timely service delivery o Non-monetary benefits: improved service delivery (accurate database/registry provide value added for society, customer service, improved service consistency and equality, improved customer satisfaction, improved reputation and user trust) Costs for end users Benefits for end users • Information costs: time spent to get information about • Direct benefits: time saving, money saving due to the the services reduction of the number of transactions and waiting time (e.g.travel costs and time, reduced need for multiple • Use: expenses directly attributed by the usage of a submission of data for different services) specific service (e.g. internet access costs) • Indirect benefits: the improved efficiency, transparency, and quality of the service Source: Authors’ analysis based upon the PAD, and European Commission, “Study on eGovernment and the Reduction of Administrative Burden”, 2014. 42 (iii) Greater fiscal returns due to new source of revenue 8. Annex 9 in the PAD stated that the project envisioned new tax revenues from the ITES-BPO sector from three potential sources: (a) new tax revenues (e.g. value-added tax on sale of goods and services by ITES-BPO firms, individual tax on earning of employees of ITES- BPO firms, corporate tax on earning of ITES-BPOT firms) and (b) new export revenues. 9. New tax revenues generated from ITES-BPO firms is difficult to measure due to lack of baseline data as well as detailed financial information. In terms of new export revenues, the project tracked a PDO indicator to measure the export led revenues by ITES-BPO sector (PDO indicator 4. see details in the ICR datasheet page iii), and successfully achieved the target. 10. Benefits from the GIFMIS component are wide ranging and include all of the central elements for the expenditure side of the budget: i) System Establishment and Rollout; ii) Payroll and HRMIS; iii) Budgetary Reform; iv) Cash Management; v) Financial Reporting; vi) connections for MDA and MMDA; and vii) Capacity Development. These elements allow the government to improve macro-fiscal discipline and management because of more timely and accurate budget data. They also help improve financial management and control, and reduce corruption through greater transparency. Sector reporting and service delivery are also facilitated through more efficient and transparent expenditure management. 11. In summary, the project interventions have already demonstrated significant positive effects and changes on the ground. Additional data will be needed to assess longer term efficiency and transparency effects more fully. 43 Annex 4. Bank Lending and Implementation Support/Supervision Processes (a) Task Team members Responsibility/ Names Title Unit Specialty Lending Mavis Ampah TTL GTIDR Lead ICT Specialist Kofi-Boateng Agyen Senior Private Sector Developm GTCDR AFTPE - Ferdinand Tsri Apronti Procurement Specialist HIS Seth Ayers Sr Partnership Specialist LLIOP Laurent Besancon Manager LLILD Christine E. Kimes Operations Adviser SACBD Smile Kwawukume Senior Public Sector Specialist GGODR Cecile Thioro Niang Program Leader LCC3C Oleg V. Petrov Senior Program Officer GTIDR Michele Ralisoa Noro Operations Analyst GTIDR Lydia Sam Procurement Assistant AFCW1 Procurement Sandra Sargent Senior Operations Officer GTIDR Randeep Sudan Practice Manager GTIDR Kafu Kofi Tsikata Senior Communications Officer AFREC Salli Wondergem Senior Executive Assistant AFCW1 Co TTL for GIFMIS Ismaila B. Ceesay Lead Financial Management Specialist GGODR component Robert Wallace DeGraft-Hanson Sr Financial Management Specialist GGODR FM Winston Percy Onipede Cole Sr Financial Management Specialist GGODR Nyaneba E. Nkrumah Sr Natural Resources Mgmt. Specialist GENDR Beatrix Allah-Mensah Senior Operations Officer AFCW1 Ali Hashim Consultant GGODR Treasury Systems Fiscal reporting and William A. Allan Consultant GGODR M&E Supervision/ICR Mavis Ampah TTL IT Adu-Gyamfi Abunyewa Senior Procurement Specialist GGODR Procurement AFTPE - Ferdinand Tsri Apronti Procurement Specialist Procurement HIS Laurent Besancon Manager LLILD AFTDE - Samuel Bruce-Smith Consultant HIS Kashmira Daruwalla Senior Procurement Specialist GGODR Procurement Robert Wallace DeGraft-Hanson Sr Financial Management Specia GGODR Jessica Dodoo CAFW2 TWICT - Mohan Kharbanda Consultant HIS TWICT - Gareth Locksley Sr Telecom. Spec. Telecom HIS Oleg V. Petrov Senior Program Officer GTIDR Rajesh B. Pradhan Consultant GTCID Michele Ralisoa Noro Operations Analyst GTIDR 44 Sandra Sargent Senior Operations Officer GTIDR Co-TTL Randeep Sudan Practice Manager GTIDR IT expert Ayishetu Terewina Program Assistant AFCW1 Kafu Kofi Tsikata Senior Communications Officer AFREC AFTME - Elizabeth Alluah Vaah E T Consultant HIS Frederick Yankey Sr. FM Specialist GGODR FM Kaoru Kimura ICT Policy Specialist GTIDR Zaid Safdar Senior Operations Officer GTIDR Naomi Halewood ICT Policy Specialist GTIDR Gabriel Dedu Governance Specialist GGODR Gurcharan Singh Senior Procurement Specialist GTIDR Stephen Tettevie Team Assistant AFCW1 Co TTL for GIFMIS Ismaila B. Ceesay Lead Financial Management Specialist GGODR component Khuram Farooq Senior Financial Management Specialist GGODR Smile Kwawukume Sr. Public Sector Specialist GGODR Aleksandar Kocevski E T Consultant GGODR Ali Hashim Consultant GGODR Treasury Systems Fiscal reporting and William A. Allan Consultant GGODR M&E Stephen Gur Consultant GGODR Budget reforms Charlotte Hayfron Program Assistant AFCW1 Richard Carroll Sr. Economist/ICR Consultant GTIDR Evaluation (b) Staff Time and Cost-P093610 Staff Time and Cost (Bank Budget Only) Stage of Project Cycle USD Thousands (including No. of staff weeks travel and consultant costs) Lending FY05 29.70 117,295.72 FY06 48.26 234,287.60 FY07 8.82 32,956.63 Total: 86.78 384,539.95 Supervision/ICR FY07 23.77 150,623.51 FY08 41.60 236,779.23 FY09 32.31 166,650.97 FY10 16.87 116,054.59 FY11 31.25 192,473.75 FY12 37.46 211,498.37 FY13 26.50 150,828.23 FY14 27.03 149,084.87 FY15 17.70 118,569.97 Total: 254.49 1,492,563.49 45 Staff Time and Cost-P120942 Staff Time and Cost (Bank Budget Only) Stage of Project Cycle USD Thousands (including No. of staff weeks travel and consultant costs) Lending FY10 15.62 182,793.32 Total: 15.62 182,793.32 46 Annex 5. Beneficiary Survey Results (if any) No beneficiary survey was required for the project. 47 Annex 6. Stakeholder Workshop Report and Results No stakeholder workshop was required for the project. 48 Annex 7. Summary of Borrower's ICR and/or Comments on Draft ICR The comments from the MoF on Draft ICR. Overall comments: The findings and conclusions for of the e-Ghana ICR are generally acceptable and reflect to an extent the true outcome of the project. We are particularly impressed with the depth of technical knowledge that is reflected in the findings and conclusions of the ICR. Some specific comments were incorporated in the final Draft, and also MoF responded some comments received from the Development Partners (See details in Annex 8). There are two Borrower ICRs, one for components 1-3 (eGhana) and one for GIFMIS. These ICRs are only excerpted here. Portions are also used to document outputs in Annex 2 which are not repeated here. GOVERNMENT OF GHANA GHANA: PROJECT IMPLEMENTATION COMPLETION REPORT FOR THE eGHANA PROJECT 49 TABLE OF CONTENTS (of full report) 1.0. PROJECT BASIC DATA 2.0. RELEVANCE OF OBJECTIVES, DESIGN AND IMPLEMENTATION: 2.1. RELEVANCE OF PROJECT DESIGN: 2.2. ASSESSMENT OF PROJECT DESIGN IN RELATION TO INTENDED OUTPUTS/OUTCOMES 2.3. ASSESSMENT OF RESPONSIVENESS OF BANK’S IMPLEMENTATION ASSISTANCE TO CHANGING NEEDS. 2.4. ASSESSMENT OF CRITICAL RISKS AND MITIGATING MEASURES 2.5. ASSESSMENT OF ENVIRONMENTAL IMPACT 2.6. COMPLIANCE WITH FIDUCIARY, SAFEGUARD AND LEGAL COVENANTS 3.0. ORGANISATION AND MANAGEMENT 4.0. PROCUREMENT 5.0. STATUS OF ACHIEVEMENT OF PROJECT OBJECTIVES 5.1 THE PROJECT RESULTS CHAIN ANALYSIS: 5.2. ASSESSMENT OF RESULTS ACHIEVEMENT AT THE OUTPUT LEVEL UNDER THE ENABLING ENVIRONMENT COMPONENT 5.3 STATUS OF ACHIEVEMENT OF OUTPUT LEVEL RESULTS UNDER SUPPORT TO ICT SMES AND ITES COMPONENT .5.4. STATUS OF ACHIEVEMENT OF OUTPUT LEVEL RESULTS UNDER EGOVERNMENT COMPONENT 5.5. ASSESSMENT OF ACHIEVEMENT OF PROJECT DEVELOPMENT OBJECTIVES AND OUTCOMES 5.6. ASSESSMENT OF EFFICIENCY OF EGHANA INTERVENTIONS 5.7. ASSESSMENT PERFORMANCE OF THE VARIOUS PARTIES INVOLVED IN THE PROJECT 6. LOAN UTILISATION 6.1 DISBURSEMENTS BY CATEGORY 7.Sustainability/Future plans of the project 8. PROBLEMS/CHALLENGES ENCOUNTERED DURING IMPLEMENTATION 9.0.CONCLUSIONS AND RECOMMENDATIONS 9.1. CONCLUSIONS: 9.2. RECOMMENDATIONS 9.3. MAJOR LESSONS LEARNED LIST OF TABLES Annexes Annex 1: Project Organisation and management Annex 2: M&E Structure of the Project Annex 3: Timing of Procurement Activities Annex 4: Details of contracts awarded 50 2.0. RELEVANCE OF OBJECTIVES, DESIGN AND IMPLEMENTATION: 2.1. Relevance of Project Design: It is evident that the design objectives of the eGhana Project remain consistent with the needs and priorities of the Government of Ghana. This is manifested by the focus on ICT sector development in the various Policy documents of the Government of Ghana namely, the Ghana Shared Growth and Development Agenda (GSGDA), and the ICT for Accelerated Development (ICT4AD) policy of the Government of Ghana. Some of the key objectives outlined for implementation in the GSGDA, relevant to the design of the eGhana Project are: to ensure that modern information and communication technologies are available and utilised at all levels of society; promote rapid development and deployment of the national ICT infrastructure; strengthen the institutional and regulatory framework for managing the ICT sector and promote the use of ICT in all sectors of the economy; These policy objectives are to be achieved through the following strategies, which are expressed in most of the intervention measures of the eGhana Project as follows: GSGDA strategy Relevant eGhana intervention measure 1 Provision of affordable Provision of 230 laptops to equipment/accessories to encourage the Parliamentarians and 1550 computers and mass use of ICT; laptops (to be upscaled to 3252 computers and laptops when all sites are operational) to Ghana Revenue Authority and Registrar General’s Department to encourage use of ICT in these institutions 2 Establishment of a reliable national Bandwidth provision to the National backbone with capacity to carry high-speed Information and Technology Agency voice, video, data, and internet facilities to (NITA) for internet service provision to all districts of the country MDAs across the country 3 Implementation of the National e- Establishment of NITA to spearhead the Governance programme implementation of eGovernance program in the country 4 Facilitate the development of community Establishment of 10 Regional Innovation information centres (CICs) nationwide centres to facilitate access to and use of ICT in each of the 10 regions of Ghana 5 Facilitate the connection of all universities, Deployment of campus network polytechnics, colleges and secondary connectivity program in 8 tertiary schools to the internet institutions 6 Revise the legislation on the National Revision of NCA Act 769 of 2008. Communications Authority to bring it in line with modern trends 7 Review existing ICT regulations in order to Development of NITA Act, Electronic improve functionality Transactions Act, Electronic Communications Act, Data Protection Act, etc 51 8 Create an environment conducive for ICT Development of Postal Policy, BPO Policy, and Spectrum management Plan for NCA and relevant legislations 9 Support and provide services and Refurbishment of PWD warehouse into a technology to tenant companies BPO centre 10 Establish a digitized content Digitisation of records of Births and Deaths Registry, GRA and RGD under the Rockefeller Foundation Support to ITES Division. 11 Ensure the existence of better educated Training of over 2500 technical staff of workforce with well developed skills that institutions which are deploying e- meet the hi-tech employment opportunities applications of the country. 12 Develop a critical mass of ICT personnel Training of BPO Agents to meet the to satisfy both domestic and external demands of the ITES/BPO industry. demands 13 Facilitate the establishment of Establishment of the ITES secretariat for outsourced ICT businesses in the industry support, investment promotion country and human resource capacity development . In addition, the eGhana Project addresses aspects of seven (7) out of the 14 pillars of the Ghana ICT for Accelerated Development Policy. The specific strategies, which have been identified under the relevant pillars of the ICT4AD Policy by the Government of Ghana which are consistent with the strategies espoused in the design and implementation of the eGhana Project are as follows: ICT4AD Strategy Relevant eGhana intervention measure 1 Under the Accelerated Human Resource Development Pillar 1a Ensure the development of a large pool of ICT Training of over 2500 technical staff professionals with wide range of state of-the-art under the e-applications program to ICT skills to meet the manpower needs of the meet the emerging challenges of the country. industry 1b Promote world-class standards, to support Development of a world class ITES- nation-wide professional ICT skills accreditation BPO curriculum content with GTUC and BCI (BPO certification Institute) 1c Promote initiatives targeted at re-training and Training of 900 eleaders, re-skilling of workers within the civil and public eChampions and CIOs under a services as well as workers in the private sector contractual arrangement with to provide them with requisite professional GIMPA 52 skills and expertise to enable them fully and effectively participate in the development of the information and knowledge economy 2 Under the Facilitating Government Administration and Service Delivery Pillar. 2a Develop and promote standards, guidelines and Development of Enterprise procedures to facilitate the acquisition, Architecture framework for Ghana installations and maintenance of ICT equipments and systems within Government Ministries and other Public Sector institutions and establishments 2b Develop an e-government interoperability Development of Ghana e- framework to facilitate cross-departmental government interoperability operations of ICT systems and services. framework 3 Rapid ICT and Enabling Physical Infrastructure Pillar 3a Promote the development, and deployment of Deployment of TRIPS and GeReG broadband and multi-platform communications applications systems for Ghana infrastructure to facilitate public access to Revenue Authority and Registrar information and services. General’s Department respectively. 4 Under the Legal, Regulatory, and Institutional Framework Provisions Pillar. 4a Promote a technology-neutral legal and Enactment of 8 laws and 3 regulatory framework -- that is responsive to regulations under the project rapid changes in the global communications industry and allows for the introduction of new technologies and services within a dynamic and robust facilities-based competitive environment that provides for service delivery and competition between different access methods and delivery platforms. 4b Support the development and implementation Enactment of 8 laws and 3 of the necessary legal and regulatory framework regulations under the project that is consistent with international and national laws, regulations, technical standards, and obligations. 4c Ensure that the development, deployment and Enactment of 8 laws and 3 exploitation of ICTs within the economy and regulations under the project society and related legal and regulatory provisions will balance and protect community and individual interests, including privacy and data protection issues. 53 5 Deployment and Spread of ICTs in the Community Pillar 5a Encourage and promote the widespread access Deployment of eServices in 11 to information and communications Organisations and MDAs technologies services and applications within the economy and society 5c Encourage public and private partnerships Implementation of GRA and RGD (PPPs) to facilitate the roll-out of community- automation through a PPP based ICT initiatives. arrangement. 6 Facilitating the Development of the Private Sector Pillar 6a Promote and facilitate the development of the Establishment of GASSCOM to serve private sector to serve as a key driver for the as the fulcrum for private sector ICT development of the economy. development in Ghana. 6b Promote public private partnership (PPP) to Automation of Ghana Revenue accelerate the development and Authority and Registrar General’s implementation of policies as well as the Department through a PPP necessary legal and technical standards to arrangement. support widespread implementation of electronic commerce. 7 Promoting Local and Foreign Direct Investment Drive in ICTs Pillar 7a Promote local and foreign direct investments in Implementation of investment the development of communication promotion activities under the infrastructure project 7b Encourage and facilitate the domestic and Implementation of investment foreign private sector to invest in the promotion activities under the development of the national information and project communication infrastructure All in all, eGhana strategies continue to tie in very well with Government’s development agenda with respect to the ICT sector. 2.2. Assessment of Project Design in relation to intended outputs/outcomes An assessment of the project design in relation to the intended outputs/outcomes has been carried out using the theory of change approach. An analysis of the theory of change of the eGhana Project reveals that the design was strong and capable of attaining the objectives set out at appraisal. The theory of change of the eGhana Project is anchored on three (3) theories and is summarised as follows: Theory 1: If technical assistance is provided to key government agencies and institutions, (i.e. NCA, NITA, ITES, PCSRC,) appropriate ICT-sector regulatory and institutional frameworks would be established/strengthened and functioning. This would result in ICT industry satisfaction 54 with the environment for ICT/ITES investments which would subsequently contribute to improved economic growth. Theory 2: If support is provided to ICT/ITES companies through human resource development, ITES investment promotion, the development of Grade “A” real estate for ITES BPO activities, the provision of incubation services, and establishment and strengthening of the IT industry Association, Ghana would emerge as a preferred destination for ITES/BPO activities with a resultant expansion in ICT/ITES businesses in the country. These would subsequently result in increased job creation in ICT/ITES businesses, increased ICT/ITES revenue generation and increased contribution of ITES to the Gross Domestic Product (GDP). All these would in turn contribute to improved economic growth. Theory 3: If e-Government is promoted through the establishment of IT architecture and interoperability standards, GovNet establishment, shared portal infrastructure development, training of public servants in e-government and roll-out of e-government applications, there would be (a) disciplined development of e-government applications and networks for government transformation (b) improved ability of databases to talk to each other (c) improved documentation of information on taxpayers and increased tax revenues. The attainment of these results would result in improved efficiency, accountability and transparency in government and would subsequently contribute to improved economic growth. 2.3. Assessment of Responsiveness of Bank’s Implementation Assistance to changing needs. The evidence suggests that the Bank, as part of its implementation assistance, was very responsive to the changing needs of the Government of Ghana. This is expressed through the Bank’s willingness and subsequent approval for (a) upward adjustment of Bank’s contribution to the PPP for automation of revenue agencies from US$10M to US$20M; (b) implementation of an integrated e-immigration system (c) development of 10 regional innovation centres; (d) refurbishment of PWD warehouses in Accra into a Business Process Outsourcing Centre and (e) implementation of an eParliament system,(f) removal of privatisation of Ghana Telecom from the list of eGhana interventions upon Government of Ghana request. 2.3.1. Upward adjustment of Bank’s contribution to PPP for Automation of revenue agencies and Registrar General’s Department: It was programmed at project inception to allocate US$10M of IDA funds as Government of Ghana contribution, towards the PPP arrangement for automation of revenue agencies and Registrar General’s Department. However, prospective bidders indicated that given the scope of the assignment, and financial outlay required for the successful implementation of the system, it was necessary for Government of Ghana to increase the public sector contribution to make the project attractive to the private sector. Subsequently, Government of Ghana requested the Bank to make an upward adjustment to the public sector contribution from US$10M to US$20M which was agreed upon, thus reducing the financial risks to the private sector. The eventual bid price for the PPP for the automation of the revenue agencies and Registrar General’s Department was about US$60M. 2.3.2. Inclusion of e-immigration implementation as part of eGhana Intervention measures. 55 At project inception, e-immigration implementation was not part of the priorities identified by the Government of Ghana for implementation. However, in line with emerging trends to manage the growth of visitor numbers in a cost-effective way through the use of cutting edge technology and to deliver a level of service consistent with the expectation of today's travellers, the Government of Ghana requested the Bank to provide additional funding for the deployment of an Integrated e- immigration system, capable of regulating entry into and exit from Ghana. The Bank responded favourably to the changing needs of the Government of Ghana and approved funds through an additional financing agreement for the Government in October 2010. 2.3.3. Inclusion of development of 10 Regional Innovation centres as part of eGhana intervention measures: Even though the development of Regional Innovation Centres was not part of measures outlined at project inception for implementation, Government of Ghana, in its quest to fulfil the critical objective of ensuring that modern information and communication technologies are available and utilised at all levels of society as outlined in the GSGDA document, requested the Bank to make available funds for the development of 10 Regional Innovation centres (one per region). This request was approved by the Bank through an additional financing arrangement in October 2010. This is a further manifestation of Bank’s positive responsiveness to changing needs of the Government. 2.3.4. Inclusion of refurbishment of PWD warehouses in Accra into a BPO centre as part of eGhana intervention measures. Three (3) years into the implementation of the eGhana project, the Government of Ghana identified the need to provide Grade ‘A’ buildings for use as a BPO Center to accelerate Government’s action in fostering the growth of the ICT sector, to promote the private sector’s role in ITES/BPO entrepreneurship, and above all increase employment in the country. Government of Ghana subsequently made a request to the Bank to make available additional funds for the development of the BPO Centre. This changing need was approved by the Bank as part of additional financing agreement of US$5M in October 2010. 2.3.5. Inclusion of implementation of eparliament as part of eGhana intervention measures Even though automation of key business functions of parliament was not part of eGhana intervention measures at project inception, the Government of Ghana made a case for the automation key legislative processes that would lead to speedy and paperless flow of information. Subsequently, the Bank made available additional funds, through an additional financing agreement, for the design of an eparliament system that would support the following key business functions of parliament: a) The legislative process; b) The parliamentary calendar; c) The agenda process; d) Chamber operations; e) Committee proceedings; f) The Hansard; g) Archiving; h) Distribution / Publishing; i) The work of the Table Office; j) The public web portal. 56 2.3.6. Removal of privatisation of Ghana Telecom from the list of eGhana interventions upon Government of Ghana request: At project inception, amount of US$4.5M was allocated to enable the Government of Ghana to procure the services of a Transaction Advisor for privatisation of Ghana Telecom. Subsequently however, Government of Ghana indicated its preparedness to use GoG funds instead of Bank funds for the privatisation effort. The Bank accepted the changing focus of government and reallocated the funds to support the upward adjustment of the public sector contribution to the PPP for automation of revenue agencies and Registrar General’s Department. 2.4. Assessment of Critical Risks and Mitigating Measures At project inception the critical risks that could prevent the achievement of project objectives were identified. An assessment of the risks so identified at project closure reveals that relevant mitigation measures were adopted during implementation to ensure that these risks did not derail project implementation objectives. The various risks identified and the corresponding mitigation measures adopted are as follows: Risks Mitigation Measures Adopted Institutional Capacity of MoC to MoC put in place a project team which carried out the day to project manage and coordinate across day implementation of project activities for the entire duration Ministries / agencies involved; of the project. Relevant technical staff from NITA and ITES Division were also supported under the project Government readiness to (i) engage in GoG demonstrated commitment to the PPP process through PPPs and (ii) outsource provision of the engagement of Consultant to design the PPP for services to private sector automation of Revenue Agencies and Registrar General’s Department and subsequently implemented the automation programme on PPP basis. Resistance of public sector employees A Reform Implementation Committee was established at the to simplification of administrative Ghana Revenue Authority to create awareness and train staff processes (through e-government on change management processes to help dispel apprehensions applications) in the minds of public sector employees. Failure of re-engineering government Consultancy support was provided for re-engineering, use of service delivery (e-govt. applications) PPP with incentivized private sector player. The result is the within relevant GoG agencies implementation of the PPP for revenue agencies and RGD. Limited enabling environment for Continuous engagement with ICT sector players resulted in the electronic and mobile transactions enactment of 11 Acts and regulations to ensure the creation of a positive environment for ICT investments. Overestimated Business Process A detailed competitiveness / opportunities study has been Offshoring opportunity for Ghana carried out per Hewitt Report of 2006. Rigorous investment promotion activities were carried out in the course of project implementation to showcase Ghana’s value proposition to the outside world. An ICT Park has been constructed under the MSME Project and a BPO Centre is being constructed under the eGhana Project to meet the real estate requirements of the ITES/BPO industry. Inadequate business environment to ITES BPO Policy and relevant ICT legislations have been attract BPO-ITES investors developed under the auspices of the eGhana Project. 2.5. Assessment of Environmental Impact 57 The Environmental category assessed for the eGhana project is C. There were no major environmental issues associated with the eGhana project which is an ICT and e-applications project and focuses on institution-building activities including computerization and IT enabled management systems to facilitate public sector reform and policy, regulatory changes to promote development of a ICT industry. The introduction of BPO Centre construction at additional financing however required the conduct of Abbreviated Resettlement Action Plan (ARAP). Further to the conduct of the ARAP, four companies which were using the PWD warehouses for various businesses, under tenancy agreement terms with the Public Works Department (PWD) prior to its conversion to a BPO centre, were paid requisite compensation by the Government of Ghana in lieu of investments made in the said property in the sum of Five Hundred and Thirty thousand, one hundred and ninety nine Ghana cedis and ninety six pesewas (GHS 530, 199.96).The breakdown is as follows: Table 1: Compensation Payments to Tenants of BPO Centre Name of Company Amount Determined Amount paid to Remarks at ARAP preparation, claimants, GHS GHS Britania 163,678.33 0 Claimant refused to take compensation payment on grounds of delayed payment. Prisvic 186,885.05 186,885.05 Georgedo Motors 167,315.15 167,315.15 Na Royal 12,321.44 12,321.44 Total 530,199.96 366,521.64 It is worth noting that one of the claimants (Britania) refused to take the compensation payments on grounds that the period between valuation and payment of compensation was too long and hence demanded an upward adjustment of the compensation payments. MoC is in discussion with the claimant to resolve the issue. At the time of project closure a Liquefied Petroleum Gas (LPG) station had been located near the BPO centre after Public Works Department leased out portions of land to the entrepreneur for the purpose. Ministry of Communications raised objection to the siting of the LPG station and requested the business enterprise to be re-located. The matter was yet to be resolved by the court as at project closure. 2.6. Compliance with fiduciary, safeguard and legal covenants The fiduciary, safeguard and legal covenants which the project is expected to comply with are: (a) Recruitment of staff for designated positions with a Project Coordinator responsible for day-to- day coordination (b) Appointment and maintenance of Matching Grants Manager (c) Adoption of a Project Implementation manual (d) Preparation and submission of project reports (e) Conduct of financial and procurement audited (f) Opening of project accounts. So far compliance with all the conditions of the Financing agreement is satisfactory with the exception of the establishment of a functioning Private Sector Oversight Committee. The status of compliance with loan conditions is shown in Table 4. 58 Table 2: Compliance with fiduciary, safeguard and legal covenants Condition Compliance status Recruitment of staff for designated positions All relevant staff are in place and with a Project Coordinator responsible for functioning per respective Terms of day-to day coordination Reference Appointment and maintenance of Matching Matching Grants Manager role was dropped Grants Manager as proposed cost of administering the grant by winning firm was more than 50% of funds earmarked for disbursement Administration of Matching Grants Matching grants administration dropped and Agreements direct disbursement to beneficiary institution adopted for cost effectiveness purposes Adoption of a Project Implementation manual Project implementation manual has been prepared and is in use Preparation and submission of project reports Scheduled progress reports submitted on regular basis Conduct of financial audit Financial audits have been prepared for years 2006-2013 by independent auditors. Opening of project accounts Designated Account for IDA funds has been opened with First Atlantic Bank Limited, Head Office, Accra; GoG Counterpart fund accounts have been opened at Bank of Ghana, Accra. 3.0. ORGANISATION AND MANAGEMENT 3.1 .Description of the Unit responsible for implementation: The Project Coordination Unit (PCU), which was based in Accra, was responsible for coordinating the project on a day- to- day basis, with direct reporting responsibility to the Hon. Minister of Communications through the Chief Director. The PCU was headed by a Project Coordinator and assisted by an M&E Coordinator, Procurement Specialist, Legal Specialist. The Accountant of the Ministry of Communications provided financial management support. There were also four (4) technical experts recruited for ITES Division to implement the Support to ICT-ITES component and additional four (4) technical experts plus three (3) project officers for NITA to implement the e-government applications and intra-governmental communications component. Staff turnover was minimal. With the exception of the first Director of ITES, the first Director General of NITA, the ICT Policy Specialist and the Deputy Director Human Resource for ITES Division who did not renew their contracts at various times, all other staff remained at post during the entire duration of the project. The first two were duly replaced by the Ministry of Communications whilst the last two were not replaced as the Ministry did not deem it necessary to do so. The institutional arrangements which were put in place at project appraisal worked quite successfully for the project. The PCU demonstrated adequate capacity to manage the project efficiently as manifested in the achievement of targeted results at project closure. 59 At the field level, the project implementing team worked very closely with the various implementing agencies notably the National Communications Authority, Ghana Revenue Authority, the Registrar General’s Department, Public Procurement Authority, Ghana Immigration Service, the Judicial Service of Ghana, Ghana Postal and Courier Services Regulatory Commission and ICT Industry Association (GASSCOM). The process of continuous dialogue and engagement had resulted in better cooperation and improved performance from these collaborating institutions over time. 3.2 Description of the Unit responsible for monitoring: The M&E Coordinator of the project spearheaded the monitoring and evaluation efforts of the project. The levels of monitoring under the eGhana Project are a) at the Institutional level (eg. GRA, RGD, NCA, NITA, ITES) and (b) at the Project Management Unit level. Roles and responsibilities of the various actors of the monitoring process were clearly spelt out in the M&E framework document and discussed to ensure consensus and ownership of the M&E process ‘ 3.3. Operational Performance of the Project Management Unit: The Project Coordination Unit was responsible for the co-ordination of activities of participating Implementing Agencies based on annual work plans prepared. Project planning: The project management team prepared eight (8) annual work plans and budgets as well as procurement plans, for the years 2007 to 2014 for Bank review and approval. The workplans detailed activities to be implemented, milestones, responsibilities and time frames for implementation of given activities. Implementation of various project activities was effectively controlled at both the Implementing Agency level and the PCU level to ensure that project targets were achieved within specified time frames. 3.4. Disbursements to service providers for work done.: The PCU disbursed funds to designated accounts of various service providers per contract deliverables. The World Bank client connection was used for direct payments, with the adoption of e-signature in the process. Payments below US$200,000 were mostly effected from the replenishment account of the project. There were minimum delays with payment once contract deliverables were acceptable to the client. 4.0. PROCUREMENT Experience with the procurement process: The procurement process for goods and services was quite smooth. The time lag between procurement activity initiation and contract signature was quite good in most cases. Analysis of procurement processes reveals that the period between sending of tender notices to prospective bidders and contract award ranged from 5.7months on the average (for 13 works contracts analysed) to 6.3 months on the average (for 20 goods contracts analysed) and 11.6 months on the average (for 30 consultancy contracts analysed). It is however noteworthy that this process was considerably longer than the recorded average in some cases, notably, the BPO centre procurement for which the period between procurement process initiation and contract signature took almost 14 months as a result of inadequacy of allocated budget (US$5M) vis-a-vis the least evaluated responsive bid (US$8.84M). The contract was signed as soon as Rockefeller Foundation provided the additional funds required (US$3.84M) based on a proposal submitted by the Ministry of Communications for the purpose. Other instances of recorded prolonged processes include selection of consultants for NCA strategic plan (21months); selection of consultants for finalisation of elegislations (18months); selection of 60 consultants for Investment promotion (17months); selection of consultants for strategic plan and regulations for PCSRC (14months); selection of consultants for design of e-parliament system (18months); selection of firm/institution for BPO incubation (25months). Analysis of procurement methods deployed during implementation revealed that there was conformance with procurement methods agreed upon at appraisal. Details of procurement methods used vis-a- vis what was planned at appraisal and the status of procurement are detailed in Annex 3. 9.0. CONCLUSIONS AND RECOMMENDATIONS 9.1. Conclusions: On the whole, project implementation was satisfactory. Physical targets that were set at project inception were largely achieved at project closure. Almost all the key project development indicators were achieved at project closure. In particular o Number of jobs created in the ICT/ITES sector was exceeded by 24.3%; o % contribution of ICT/ITES sector to GDP was exceeded by 144% o Export led revenues generated by ITES/BPO industry was exceeded by 2%. o Satisfaction of users with government services taken up for electronic delivery was exceeded by 4%. The following development objective indicators however fell short of the targets set o Impact on IT/ITES sector of World Bank Technical Assistance fell short by 12% o Proportion of women engaged in IT/ITES sector fell short of target by 19.2% Similarly programmed intermediate outcomes were achieved or exceeded under the various components. o Proportion of MDAs expressing satisfaction with level of coordination and management of MoC was exceeded by 3.7% o Decrease in bandwidth price was exceeded by 233% o Eight (8) laws and 3 regulations were passed, as against a programmed four (4) o Proportion of women holding managerial positions in ICT/ITES industry was exceeded by 40% o No. of companies incubated was exceeded by 36% o Number of transactions on public services taken up for electronic delivery exceeded the programmed target constituting 87900 business registrations, 425,305 TIN registrations and 390 page views on eservices portal. o All applications deployed under the eGhana project adhered to the IT architecture and interoperability standards o Ratio of electronic to manual transactions was exceeded by 65% o Number of public servant and judicial staff trained in e-government was exceeded by 14%. o The following intermediate outcomes however fell short of the targets: o Proportion of ICT/ITES companies expressing satisfaction with the level of coordination of ITES secretariat fell short of target by 19.9% o 53.3% of people trained were successfully employed in ICT/ITES sector. This fell short of the target by 46.7% 61 o 90% of Regional Innovation centres were established. o BPO centre was 70% completed at project closure. Delayed completion was due to delayed access to supplementary funds from Rockefeller Foundation. 9.2. Recommendations 1) Provision of furniture and content for RICs: As part of the implementation arrangements physical structure provision was the scope for 9 RICs with the exception of the Korle Bu RIC. With the completion of the buildings for the innovation centres there would be the need to furnish the remaining 9 RICs to make them useful to citizens. It is estimated that an amount of GHS1.3 million would be required to furnish the 9 RICs. It is recommended that MoC should source for funds to make the RICs fully functional. The possibility of using part of the contingency fund under the upcoming eTransform project should be explored. 2) Completion and eventual occupancy of BPO Centre: The BPO Centre project was at 65% completion point at project closure. Delayed completion was due to delayed access to supplementary funds for project execution. It would be necessary to complete the project with funds made available under the Rockefeller Foundation Grant to ensure that citizens have full benefit of the investments made. 3) Relocation of Gas Station from the BPO centre: In order to be compliant with various national and international safeguards standards, it is pertinent to relocate the gas station that has been established within the vicinity of the BPO centre following a lease of a parcel of land to the investor by PWD after the property had been assigned to the Ministry of Communications for the BPO centre establishment. 4) Speedy implementation of Strategic Plans: The evidence suggests that strategic plans that had been developed for NITA and PCRSC have not been implemented in great measure. The reason provided by respective agencies was that the organizations did not have adequate funds to implement the recommendations of the plans. Going forward, it would be necessary for the relevant organizations to make adequate budget allocations in annual budget proposals to move the process forward. 5) Cabinet Approval for BPO Policy Document: Further to the completion of the BPO Policy document, there would be the need to pursue and secure cabinet approval for the policy document to enable it serve as a point of reference for BPO engagement in Ghana. 6) Awareness creation and sensitization for increased transaction processing on eServices portal: Notwithstanding the large number of page views on the eservices portal (390,000) actual transaction processing has been limited (524). With the launch of the epayment portal, it would be necessary for NITA to carry out intensive sensitization and awareness creation on the existence and functionalities of the eservices and epayment platforms to enhance the uptake of public services for electronic delivery. 7) Speedy deployment of TRIPS to all 10 sites: At project closure, two out of the ten sites that TRIPS was deployed, were fully functional. It is recommended that efforts aimed at the full functioning of TRIPS at all ten (10) sites, not later than 3 months after project closure should be vigorously pursued. 8) Deployment of RGD portal: Deployment of RGD portal was one of the outstanding deliverables at project operational acceptance and remain outstanding at project closure. NITA RGD should follow up with the private partner GCNeT to ensure completion and acceptance. 62 9) E-immigration system implementation: Deployment of e-immigration system was not completed as at project closure due to inadequacy of funds under the eGhana project. Funds have been allocated under the eTransform project to complete the system deployment process. It is recommended that eTransform management, Ghana Immigration Service and NITA should follow through the process to ensure total delivery of requisite outputs. 10) Leverage the incubation centre for expanded entrepreneurial development: In view of the commitment and creativity exhibited by the Kumasi Business Incubator (KBI) in the implementation of the incubation programme, it is recommended that the upcoming eTransform project should leverage the incubation infrastructure available at KBI and introduce other innovation measures such as the mlabs to deepen the benefits that citizens in the KNUST enclave will derive from the establishment of the incubation centre. 11) Establishment of SREA: Establishment of Special Repayment Escrow Account (SREA) for the payment of the private partner was not concluded at project closure. It is recommended that Ministry of Finance should complete the process of establishing the SREA to enable payment to be effected to the private partner as and when requisite deliverables are made by the private partner (as per contract). 9.3. Major Lessons Learned 1) The implementation of an incubation programme in educational institutions has a very high rate of success, judging from the creativity, innovativeness and vision which the incubatees of the Kumasi Business Incubator brought on board in the implementation of the project- supported incubation programme. One way of cutting down on costs of maintaining incubatees could consist of the retention/selection of potential national service persons into the incubation programme (as was practised under the KBI programme), to ensure that incubatees are able to cater for their daily maintenance needs during the incubation period. 2) In view of the innovative nature of ICT projects, it would be prudent to ensure that all future software applications related projects must have the inclusion of demonstration of live software which has been successfully deployed elsewhere by vendor as part of the evaluation criteria before final selection of Contractors and award of contracts. This would ensure that pretenders are promptly eliminated at the point of evaluation. 3) The protracted dispute between the Contractor and sub-contractor for the automation of the revenue agencies brings to the fore, the need for the main contractor to have a high level of experience in deploying specific solutions they’ve been contracted to implement, rather than the focus on Sub-Contractors at evaluation for the deployment of specific solutions. 4) The deployment of PPPs in egovernment, relative to revenue agencies, is a very challenging endeavour. The multiplicity of stakeholders in the implementation process, coupled with the need for Government agencies to ensure that public interest is diligently protected in the transactions, (while at the same time packaging the transaction in such a way as to attract potential investors), requires in-depth consultations each step of the way. Balancing the private partner’s business interest with government’s interest of social responsibility and citizen satisfaction is a delicate balance which needs to be managed in such a as to make the PPP business proposition attractive to the private sector participants. 5) It is advisable to complete any reform implementation program before concluding a PPP agreement. The PPP agreement between the vendor and GoG was concluded at the time that GRA reform program had started. The pace of progress of GRA Reform Program had not been as rapid as originally envisaged - this meant that the vendor had been attempting 63 to define business processes for operational arrangements that did not yet exist. This subsequently delayed application roll-out. 6) Where study tours are organized on e-applications for top management staff of User Agencies to enable them see at close quarters best-practice examples of similar applications, there is a great propensity for buy-in and commitment from the leadership. This is evidenced by (a) the high support provided to the e-immigration project by the Director of the Ghana Immigration Service, having undertaken a study-tour to Malaysia and Hong Kong to observe e-immigration system in action in those countries, (b) the commitment of the Chief Justice of Ghana to the implementation of the e-justice system, following her visit to Turkey to study the operation of the e-justice system and (c) the drive of the Executive Director of the Public Procurement Authority for the implementation of the e- procurement system following his visit to India and Portugal to observe the operation of the e-procurement system in those countries. 7) In view of the complex nature of e-applications deployed to user agencies, it is necessary to beef up the technical capacity of User Agencies with staff from the National Information Technology Agency (NITA) to ensure effective supervision and monitoring of complex ICT programs. This is particularly relevant where the user agency does not have staff with requisite IT capabilities. 8) The engagement of an Independent Auditor (Engineer) to examine the work of vendors of complex ICT programs is a prerequisite for effective delivery of needed solutions. 9) In the light of the complex nature of e-applications there should be room for partial operational acceptance of sub-systems prior to Full Operational Acceptance. This will make it possible for some of the completed functionalities to be handed over to the Client, and at the same time improve upon the disbursement position of the project. 10) At project inception it was envisaged that e-applications would be implemented on Public Private Partnerships (PPP) basis. The assumption was that private sector would make direct cash contributions to the partnerships, through a Design, Finance, Build, Operate and Transfer Model, where private sector would be reimbursed after an agreed period of management. This allowed significant risk to be shifted to private sector, and the latter in return, received requisite compensation and some control of the systems. Subsequently, allocated project budgetary estimates were based on Government of Ghana contribution (through World Bank funding). However, apart from the Automation of the Revenue Agencies and RGD program which was financed through PPP with direct private sector contribution, the structure of the other remaining applications are being implemented with the private partner responsible only for delivery and management for agreed period through Design, Build, Operate and Transfer Model. The financing component is no longer part of the PPP model, due primarily to data security concerns raised by the Government of Ghana for the remaining applications, and also challenges with private sector financing. As a result, available funds for the implementation of e-justice, e-immigration, e-parliament and e-procurement fall short of budgeted amounts. There is therefore the need to critically assess the security implications of automating given government agencies before designing a PPP arrangement for such purposes. 11) Infrastructure remains a very critical and major component of decision making process for location selection for ITES/BPO companies, with the availability and quality of infrastructure directly impacting the ease and cost of doing business in a location. There is the need to locate additional dysfunctional government buildings for refurbishment and use 64 for more productive purposes in the image of the BPO centre which has been developed under the project to ensure employment and economic growth. 12) Business and financial environment, tax and regulatory environment, general law and order situation, administrative hurdles etc. have a direct impact on the ease and cost of doing ITES-BPO business. Promotion of the following creates a healthy environment for the growth of the ITES/BPO sector. a. Effective coordination between various agencies such as GIPC, GFZB, GASSCOM and ITES Secretariat b. Development of legislation and policies to discourage unionism in ITES-BPO sector c. Increased awareness on information security, data privacy and intellectual property laws. 13) Healthy incumbents are sign of vibrancy in the ITES/BPO sector and their success is a major factor in attracting foreign investment in the sector. In order to promote incumbents there is the need to do the following: a. Encourage, promote and develop strong linkages and tie-ups with companies, industry associations, and academia and private education service providers. b. Provide Go-to-Market and process improvement training to GASSCOM members c. Increase domestic and regional awareness for benefits of BPO which will enable local service providers to develop expertise and capabilities for competing effectively globally d. Undertake initiatives on branding and image creation that position the unique advantages of Ghana in the international market 14) With respect to enabled legal/regulatory environment creation the following lessons are noteworthy: a) The need to constantly review and update the laws for NCA to address current regulatory trends. b) The need to put in place legal framework that further improves on the NCA’s engagement with the service providers and consumers. c) The need to strengthen the consumer protection laws and enforcement in the country. d) The legislative procedures and processes on amendments, etc have sometimes made it impossible to address challenges arising out of the legislations in an expeditious manner. e) Financial challenges associated with full implementation of the Acts. f) In the future the financial impact of laws must be properly assessed and commitment made for the full implementation of the laws once passed. The lack of such commitment towards implementation usually leads to situations where the necessary human and other resource needed for implementation is not readily available. g) Ghana’s success with the MNP can be largely attributed to the initial advance preparations and rigorous testing and the collaboration amongst all the key stakeholders; (National Communications Authority) NCA, Porting Access Ghana (the central MNP service provider), and the mobile network operators. 65 Borrower’s ICR for GIFMIS-Condensed Republic Of Ghana Ministry Of Finance And Economic Planning Ghana Integrated Financial Management Information System (GIFMIS) Project IMPLEMENTATION COMPLETION REPORT (ICR) (FEBRUARY 2015) 66 1. INTRODUCTION 2. PROJECT GOALS, OBJECTIVES AND SCOPE 2.1 Goals and Objectives 2.2 Scope 3. IMPLEMENTATION PLAN 4. IMPLEMENTATION MILESTONES 4.1 System Establishment and Rollout 4.2 Payroll and HRMIS 4.3 Budgetary Reform 4.4 Cash Management 4.5 Financial Reporting 4.6 MDA and MMDA Capacity Development 4.7 Project Management 4.8 INTERMEDIATE RESULTS 5. CONCLUSIONS 5.1 Challenges 5.2 Lessons Learnt 5.3 Sustainability 5.4 Development Partners Performance 5.5 Implementing Agency Performance 5.6 Recommendations for Future Improvements 6. APPENDICES Appendix 1 – Payroll and HRMIS Appendix 2 - Procurement Appendix 3 – Project Accounts Appendix 4 – PFM Strategy 67 1. INTRODUCTION 1. The Ghana Integrated Financial Management Information System (GIFMIS) was launched in May 2009 and implemented over a 4-year period (July 1, 2010 – June 30, 2014). The original completion date was extended by 6 months to December 31st 2014. 2. The project was made a part of a restructured eGhana project (Component 4) for a number of reasons, including the need to reduce the time required to complete the processes leading to the signing of the loan agreement. Key planning and implementation dates are summarized below: eGhana original Approval Date 01-Aug-2006 EU GIFMIS financing Agreement 02- July- 2009 WB GIFMIS Credit Agreement 21 – Dec- 2010 MoF/EU/DFID/Danida/WB MoU 16th March 2011 eGhana Original Closing Date 31-Mar-2012 eGhana/GIFMIS Revised Closing Date 30-Jun-2014 eGhana/GIFMIS Revised Closing Date 31-Dec-2014 4. Relevant project documents that guided project implementation include: a) Project Charter July 2010 b) World Bank Project Paper June 2010 c) World Bank Financing Agreement June 2010 5. The original GIFMIS project budget was US$60.26 million f o r i m p l e m e n t a t i o n o v e r a period of four (4) years commencing July 2010. The project was financed by four DPs namely: the WB (US$35 million), DFID (£10 million), EU (€9 million), and Danida (US$4.5million). 6. This Project Completion Report has been prepared by the Project Management Team with the following key objectives • Provide a Summary of what was achieved and how closely the project met the project plan – in terms of budget, time and quality of deliverables • Assess progress made and identify constraints and lessons learnt so as to improve future decision making • Assess Project Outcomes • Evaluate the project design and implementation arrangements with a view to identifying possible aspects of the project that could have been improved to enhance attainment of the overall project objectives • Assess implementing agency performance • Assess Performance of Development Partners, including the World Bank, Danida, European Union and DFID • Make recommendations for future improvements. 68 7. The report is structured as follows: I. Introduction II. Project Goals, Objectives and Scope III. Implementation Plan IV. Key Implementation Milestones and Results V. Conclusions a. Challenges b. Lessons Learnt c. Sustainability d. Implementing Agency performance e. Development Partners performance f. Recommendations for future improvement VI. Appendices a. Payroll and HRMIS b. PFM Strategy c. Procurement d. Project Accounts 69 2. PROJECT GOALS, OBJECTIVES AND SCOPE 2.1 Goals and Objectives 8. The overall project goal is to improve the effectiveness of service delivery and the allocation of scarce resources, using the new tools and processes resulting from the GIFMIS, and assure an accountable, more effective, and transparent financial governance. GIFMIS aims at providing improved aggregate expenditure control, predictability for financial flows, expenditure and investment planning, ability to monitor expenditures and fiscal accountability. In other words, the project aimed at a) The establishment and use of GIFMIS-based PFM functionality at national and district level treasuries; b) Improved macro-fiscal discipline and management; c) Improved financial management, control and efficiency across government. 9. The GIFMIS system was to be set up and deployed to all MDAs and MMDAs 2.2 Scope 10. GIFMIS comprised of 3 major components, and 9 subcomponents (or strategic segments) 70 11. The system was also expected to Integrate/Interface with the following related but independent systems: • Programme Based Budgeting (PBB) • Payroll & HRMIS (PSC) • CS-DMRS (DMD-MoF) • E-Monitor (Non-Tax Revenue- MoF) • PIMS (PID- MoF) • TRIPS & GCMS (GRA) • T-24& SWIFT (BoG) • E-procurement (Public Procurement Authority) 12. The following funds were targeted for inclusion in the project • Consolidated Fund • Donor Funds • Statutory Funds • IGFs • Any other public funds 71 FIGURE 1: SCOPE OF PROJECT GIFMIS Scope • All MDAs and • Financials MMDAs at national, • PBB regional and district • HRMIS and levels Payroll • CS-DMRS (DMD-MoF) • E-Monitor • Consolidated Fund • PIMS (PID- MoF) • Donor Funds • TRIPS & GCMS • Statutory Funds • T-24& SWIFT (BoG) • E-Procurement • IGFs PFM Reforms in perspective 15 72 3. CONCLUSIONS 5.1 Challenges Subcomponent Challenges 1 System Establishment and System setup -Hardware and Software Rollout • General - Sequencing of activities e.g. network was not in place at MDAs at the time of rollout. - Decision on location of servers. - Decision on version of the application to be used - legislative and regulatory needs in light of changes in PFM practice and business processes as a result of PFM reforms including GIFMIS rollout - Inter –agency collaboration between CAGD, MoF, PSC, NITA, GRA for optimization of use of systems and Unforeseen system failure. Chg mgt issues - Delay in finalization of specifications/Requirements for Budget module, RAC and DR. In all instances, finalization of requirements and commencement of procurement process was achieved in 2013. System Roll out • Original Target of 32 Hqters SUs increased to 230+ Hqters SUs • 10 Regional Treasuries increased to 350 Regional SUs plus 10 Regional Treasuries • No target set for roll out to MMDAs. All 216 MMDAs now targeted. 7 already live. • Centralised payment at CAGD Hqters • 34% of total expenditure outside budget. Need to capture all expenditures • Inadequate in-house technical capacity to support Oracle applications Network & Connectivity • Inadequate ICT infrastructure in the public sector of Ghana, especially Network connectivity • Network connectivity. Inadequate funding for NITA to deliver mandate. Adequate funding for network connectivity (ie 73 Subcomponent Challenges support to NITA) is critical for system rollout in respect of GIFMIS Financials, HRMIS, PBB, etc. • The key challenge is NITA’s inability to extend connectivity to outstanding MDAs and MMDAs on schedule to support GIFMIS. As a result, the project is now exploring other options such as funding installation of point-to-point radio networks for MDAs and MMDAs • Unreliable Power Supply to MDAs/MMDAs • Relatively low computer literacy in the public sector • Change management- expectation by end-users that the system should support old ways instead of current best practices Budget Module: • Funding for Budget Module activities, • Change management, • Timing- inadequate funds to implement programmes, • Inadequate IT and Budget Skills and competencies, • Delay in decision on appropriate budget module to replace Activate, particularly in view of transition to Program Based Budgeting • Limited by 80 licenses for users on the system 2 Payroll and HRMIS • Project inherited Heavily customized, slow payroll system that required upgrade and standardization of functionality • HRMIS at PSC not fully considered at project inception. Scope was limited to the basic HR at CAGD 3 Budgetary Reform • Budget Reforms (PBB) introduced to project after commencement. not originally included • Challenges with establishment of appropriate goals and objectives for some Institutions e.g. OGM, MOH, MOE • absence of dedicated budget officers • Appointment of Programme Managers • Weak M&E Mechanism 4 Cash Management • Issues relating to interface TRIPS, GCMS and e-Monitor • Automated Electronic Bank Reconciliation related issues 74 Subcomponent Challenges • Copy detail from above 5 Financial • Inability to meet IPSAS Compliant Reporting with Cash Basis Reporting standards 6 MDA and MMDA • Development and approval of training plans Capacity • Scheduling of training to suit staff commitment Development • Selection of participants for training 7 Project • Inadequate office accommodation in 2010, 2011, and 2012. Management Challenge was not resolved until completion of renovation works on the GNA building in November 2012. Office facilities were thus available for 2013 and 2014. • Frequent changes in leadership – 3 Project Directors in 3 years. • • Delays in the Release of Funds by DPs • Lack of project implementation manual to guide project implementation • Several Team Members and Team Leads played dual roles as project staff as well as mainstream staff for CAGD or MoF thus reducing their focus on the project. • Time and effort required in addressing the separate reporting and administrative requirements of GoG, World Bank, EU, DFID and DANIDA . • 5.2 Lessons Learnt • Financing of the project by multiple DPs (either as joint or parallel financing) should be avoided in future to minimise reporting and administrative challenges. • Well thought out project work plans, linked to budget and procurement plan to be prepared in advance and properly sequenced • Ensure Early Establishment Of Systems For Monitoring, Evaluation And Reporting. 5.3 Sustainability Risk of lack of sustainability of systems and practices soon after the project implementation is a concern in terms of (a) readiness in defining functional specifications; (b) adequate stakeholder ownership and commitment; (c) a robust change management and 75 communication strategy; (d) adequacy of training and capacity building initiatives; (d) prioritization and sequencing; (e) appropriate implementation timeline The project has a high sustainability rating for the following reasons • Strong political support for project objectives • Project driven by public servants with limited support from consultants • Strong capacity building efforts provided technical staff • A comprehensive system that addresses most of the needs of MDAs e.g Budget preparation, execution, accounting, financial reporting and auditing. 5.4 Development Partners Performance On a scale of 1-10 (1 being poor and 10 being excellent) Technical Accessibility Funding Responsiveness Overall Contribution to of DP Staff support and to Assessment Project to Project Financial Implementation Implementation Team Management support procedures DANIDA 4 6 5 5 5.00 DFID 4 6 5 7 5.50 EU 4 5 4 4 4.75 WORLD 8 6 8 8 7.50 BANK 5.5 Implementing Agency Performance On a scale of 1-10 (1 being poor and 10 being excellent) Commitment to Effectiveness Submission Project Overall project of Staff and of Component Assessment implementation organizational scheduled Results management reports MoF (Budget) 7 7 7 6 6.75 CAGD/GIFMIS 8 8 7 6 7.25 Secretariat PSC (HRMIS) 8 7 7 3 6.25 5.6 Recommendations for Future Improvements • Financing of the project by multiple DPs should be avoided in future • Well thought out project work plans, linked to budget and procurement plan to be prepared in advance and properly sequenced 76 • Project Preparation should be detailed enough to expedite procurement and disbursement of funds once credit is declared effective • Ensure Early Establishment Of Systems For Monitoring, Evaluation And Reporting. 77 Annex 8. Comments of Cofinanciers and Other Partners/Stakeholders Development Partner Comments on Project and Bank Responses Below are the comments received from the Development Partners (EU and DFID), and Bank point by point response. The DP comments concern only component 4-Ghana Integrated Financial Management Information System (GIFMIS). Related comments are grouped (i.e., comments 1. to 3., 4. to 6., 7. to 9., and 10.) [Comment-1]: Our comments are based notably on the findings of the Performance & Financial Audits of GIFMIS conducted jointly by the Development Partners DFID, DANIDA and EU in 2014 covering the majority of the implementation period. (The World Bank has received a copy of the reports.) Taking into account the findings of the joint Performance Audit, which assessed among others the effectiveness, efficiency and economy of the GIFMIS project, we conclude, that despite some achievements, significant challenges in the implementation of the GIFMIS project persist. [Comment-2]: Using 2010 as a baseline, overall project implementation is assessed at being only about 60% [Comment-3]: Out of the four different types of funds, only the Consolidated Fund (CF) is currently implemented. [Bank’s response—Comments 1-3]: It is important to understand that the EU performance audit was not limited to the GIFMIS component, but went beyond to cover the full spectrum of GoG financial management information system. At the same time, the audit captures the performance assessment between 2010 to the end of 2013, leaving out one full year of GIFMIS implementation. Still, the EU performance audit registered substantial progress (60 percent overall) in project implementation performance. The performance audit also did not consider a number of activities that were not part of the original design but which were key to supporting wider Public Financial Management (PFM) reforms, including: (1) the implementation of program-based budgeting; (2) implementation of the Human Resources Management Information System (HRMIS) to strengthen credibility of payroll; and (3) the roll-out of peer-to-peer (P2P) implementation to agencies beyond the core consolidated fund. At project closure, (1) was fully achieved; (2) was partially achieved; and (3) was achieved for the consolidated fund that constitutes 66% of government budget – noting that government budget includes all funds (consolidated, statutory, donor, and IGFs – see Annex Table 8.1 below). Annex Table 8.1 Appropriated Government Budget Summary % of Total Budget Type of Funds A. Central GoG / Consolidated Fund 28 1. Compensation of Employees 28 2. Goods/Services (including financing charges) 10 3. Assets (Capital) 78 66 Sub-total 9 B. Internally Generated Funds (non-retained) 13 C. Statutory Funds and Others 12 D. Donor Funds 100 TOTAL APPROPRIATION: It is also important to note that not only were the consolidated fund was transacted through the GIFMIS, but all statutory fund transfers (13% of total government budget) to their respective management entities are transacted through the GIFMIS under the electronic funds transfer system after formal release of the budgeted funds by the Budget Division of the MoF. What are not transacted through the GIFMIS are the actual spending of the GIFMIS transferred statutory funds since such funds are managed outside the core consolidated fund and are spent without using the peer-to-peer (P2P) process. The IGFs constitute 9% of the total government budget. These, along with the statutory funds, are planned to be also transacted using the P2P and the business process requirements and design have been carried out under the GIFMIS for implementation in a follow on project. GIFMIS activities (under component 4 of the eGhana project) were not designed to implement all funds. Coverage of the CF in any jurisdiction over a 4-year period is a significant achievement. The issue of expenditure arrears continuing to rise regardless of the introduction of commitment control in a P2P context is not the result of the poor implementation of the GIFMIS but rather because of weak fiscal policy management that falls outside the GIFMIS. New arrears arising as a result of the crowding out of liquidity due to priority payment of prior arrears (impact of single spine pay policy, lack of a system of public investment management policy, etc.). The SoEs, that represent a major source of arrears, are not covered under the GIFMIS. Arrears include budgeted legal transfers to statutory funds that have been delayed as a result of liquidity constraints, not necessarily the growing flow of new arrears, have also informed the growth in the stock of arrears. GIFMIS, was not expected to control fiscal policy, but rather establish the platform for monitoring and control of arrears within the focus area – i.e., the consolidated fund. [Comment- 4]: The update of the legislative and regulatory framework has still not been implemented. [Comment- 5]: We would like to particularly highlight the concerns regarding the integration of the Payroll system onto GIFMIS as mentioned in the Performance Audit. Notwithstanding that various tasks have been completed in this area the joint audit assessed that, "… a significant amount of payroll is still managed outside the R12 Oracle platform and unless all payroll of the GoG civil servants is run consistently on a unique platform, it will be difficult to achieve GIFMIS broader objectives as set out in Project Charter and benefit full integration, enhanced control and robust budgetary control." With reference to the conducted KPMG Payroll Assurance report dated November 2012, the joint Performance Audit concludes "Being given the significant nature of the findings reported by the 2012 KPMG report and challenges faced by the GoG relating to payroll process regarding some agencies, a quality check performed by an independent consultant prior 79 to the upgrade of Oracle R12 platform would have been warranted. In the absence of this, it is difficult to ascertain whether the issues which were highlighted have been resolved and do not stand on the new platform." [Comment- 6]: Significant weaknesses in the financial management of the GIFMIS pooled account were observed, as evidenced by the joint Financial Audit (covering 2011-2013) which resulted in ineligibilities of GHS 5,222,303.79. In addition the Internal Audit report of December 2013 established further GHS 1,142,500 of ineligible expenditures. Also World Bank's own "In- depth Review on Selected Expenditures" of September 2013 is recalled in this respect. [Bank’s responses 4-6]: The ‘issues and options’ report on the key PFM legal framework weaknesses was delivered by project closure and the IMF was to assist in further supporting the government in drafting of the amendments in a new Bill. Further political consensus on the holistic PFM reform is required for the establishment of a new legal framework. World Bank will continue working on this issue under the following new project (PFM reform project). The payroll system has been upgraded from Oracle version 11 to version 12, and is now live for all GoG employees, except the Ghana Education Service (GES) due essentially to political economy considerations. This process has involved a massive clean-up of the payroll database and consequent strengthening of the integrity of the payroll data which remains an ongoing activity in any jurisdiction. Regarding the finding of the KPMG report provided in the EU comments, the WB implementation supervision team (before the upgrade) in January 2012, requested and the GoG agreed to undertake a Payroll Assurance review. The objective of this review was to identify deficiencies and vulnerabilities in controls in the Government’s payroll system and to recommend measures to be taken to remedy any assessed weaknesses before the planned major upgrade of the system can be financed under GIFMIS. It was the considered view of the WB team that a thorough due diligence of Government’s legacy systems would avoid the replication of any existing control weaknesses and data errors in an enhanced system. This report informed the upgrade of the payroll to version 12 and its integration with the GIFMIS general ledger for automatic data uptake of payroll costs and posting to their respective cost centers – something that never existed before. This was achieved for the all GoG payrolls, except GES. There were some challenges in the financial management of the GIFMIS pooled account. These challenges were relatively common across government projects. They covered expenditures such as training, workshops, per diem payments etc. The WB first carried out a review and reported ineligible expenditures which the GoG was requested to refund; the Bank also requested that the internal audit agency carry out a further audit and the agency reported additional ineligibles which the GoG refunded; and finally, the EU’s financial audit that covered a longer period brought to light additional ineligibles (all based on the principle that the Bank established) and the DPs (including the WB) requested a refund from GoG and the refund was made. It underscores that the EU report did not point out any fraud or corruption, per se, but rather ineligible expenditures for the GIFMIS pooled account funds for activities that, in as much as normal and systemic government practices, are considered not to be financed under the project. The overall FM arrangements (under the Bank’s BP 10.02) under the project were considered, adequate. 80 [Response from MoF, Ghana – 6]: RE: e-Ghana ICR- ISSUES RAISED BY DONORS REGARDING INELIGIBLE EXPENDITURES 1. We refer to paragraph 77 of the e-Ghana ICR relating to the statement that “there was a concern by one of the donors that there were a number of ineligible expenditures”. We have indicated in our comments in the draft ICR that “The eligibility or otherwise of the alleged ineligible expenditures was a matter of protracted discussions as the PIU insisted that it had followed GoG procedures, as indicated in the Internal Audit Report. The matter was eventually resolved when GoG agreed to refund the amount of GHS 5,222,303.79 which was largely in respect of hiring of venue for capacity building, representing about 3% of the total project cost.” We hereby re-iterate our response on the entire Audit report as follows: 2. We recall that the 2014 Performance and Financial Audit, commissioned by three of the four Donors for the period 21st December 2010 to 31st December 2013 arrived at the following key conclusions a) Implementation level as at 31st December was 60% b) The project had not progressed to a stage whereby the broad objectives of the project as detailed in the project charter will be achieved. Outstanding issues in this regard included i. Completion of all modules for the four different types of funds ii. Full integration of the payroll on a common platform iii. The legal and regulatory framework are reviewed and updated in order to support full use of GIFMIS in the current reform initiatives c) Inadequate procedures to procure hotel services d) Other relatively minor observations. 3. We wish to re-iterate our response on the issue of inadequate procurement procedures to procure hotel services, which informed the decision to declare the expenditure of GHS 4, 247345.29 as ineligible, as follows: a) It has not been the convention or practice to treat the selection of hotels as a procurement activity in the public sector. Doing so would have required the inclusion of hotel selection in the procurement plan and choice of procurement method also indicated. The choice of hotel for project activities is based on a complex mix of considerations including: hotel availability, cost, hotel environment, proximity to training center, size of conference room, availability of internet connectivity, the number of participants, among others. b) To ensure value for money in hotel selection process, prices were negotiated to obtain corporate rates, pro forma invoices obtained and subjected to internal review and approval and payment made directly to the established institutions i.e., the hotels which are all available for verification. 81 c) At regional and district levels, the hotels used were the only hotels which had the available facilities under the circumstances. d) The periodic Joint Review Missions since 2011 had on no occasion objected to this process of selecting hotel services. The significant stakeholder buy-in and the success chalked so far in terms of public sector awareness and change on the project are directly linked to these sensitization and training programmes held in these hotels. Annex Table 8.2 Project Scope Expansion 82 [Comment-7]: With reference to the procurement under the GIFMIS component (a pooled account with Development Partners), which was supervised by the World Bank, we are concerned that there were several instances of incorrect procurement methods used and of procurement files not being complete. Further, the absence of a formal procedure to approve the annual procurement plan let to challenges establishing a joint position on the procurement plan; consequently not all partners approved all procurement plans. Furthermore, given the uncertainty about the implementation of a unique and secured payroll database for the mechanized payroll, procurements undertaken in 2012 for additional payroll licences are questionable from a value for money point of view. Finally, with regards to procurement of assets under the GIFMIS component, as of July 2014, 37% of assets acquired under the GIFMIS pooled account, had not been distributed. This refers to around 2700 items of IT equipment, which raises value for money questions. [Comment- 8]: The joint Performance Audit continues to state that the description of some project objectives are broad in nature and are not specifically related to the GIFMIS component; planned activities for change management are not adequately detailed; M&E reporting procedures are not sufficiently embedded; a detailed baseline was not initially established and a detailed work plan was formulised only in Sept. 2013; a robust budgetary control framework for the project is not in place and the role and responsibilities of key actors including DPs have not been defined in the Project Charter. [Comment-9]: The joint Performance Audit concludes on page 9 that: "The GIFMIS implementation has not yet progressed to a stage whereby the broad objectives of the project as defined in the Project Charter will have been achieved. The key enablers towards the achievement of the objectives are: o All modules for the four different types of funds are completed; o Full integration of the payroll on a common platform is achieved; and o The legal and regulatory framework are reviewed and updated in order to support full use of GIFMIS in the current reform initiatives. Without which, the broad objectives will not be fully met." [Bank’s responses-7-9]: Based upon the MoU, signed with Development Partners, the procurement management followed World Bank Procurement Guidelines and was reviewed by the Bank team. Regarding the 37 percent of the assets acquired under the GIFMIS component that were not distributed as at July 2014, the EU may be referring to the computers and vehicles acquired for the planned roll-out to the MMDAs which remain useful as roll-out is ongoing regardless of the closure of the project in Dec. 2014. It is not clear how the value for money question has been impacted by this. The GIFMIS component was not a standalone project, but rather added to the existing project (eGhana) as an additional financing operation. There are specific guidelines on design principles for the World Bank Lending Operations, and all WB lending projects follow the operations guidelines. For the GIFMIS component, the MoU signed among the GoG and the Development Partners clearly set out the roles and responsibilities of all for the use of pooled account. If further detail achievement/conditions were requested by a specific 83 donor, it should have been specified in the respective bilateral financing agreements. The Project Charter was referred to in the Additional Financing Project Paper but the charter was merely an objective intention of the GoG on the needed reforms (which were mainly technical) that the Additional Financing operation had to respond to, based on the government priorities. As mentioned above (Bank’s response – 8), the Project Charter prepared by the GoG was not the project document (Project Paper). Any measurement of performance and achievement or otherwise of the objectives should be based on the Project Paper. The Charter was not conceived as one to be accomplished under a 4-year project. Many of the project’s achievements went beyond what the Charter sought to achieve – e.g., PBB; HRMIS; TSA. [Comment– 10]: Finally, we would like to raise challenges which occurred around the various joint implementation review missions, led by the World Bank. Although the Bank's analysis was mostly sound, the proposed concluding scoring of progress was not always coherent with the analysis and with partners' assessments. As a consequence, the EU and other partners decided to officially abstain from approving the WB-led joint review missions as from October 2013 and to participate as observer only going forward. [Bank’s response– 10]: As mentioned in the main text of the ICR, joint financing with Development Partners provided important lessons. , One of the lessons learned derived from the pooled-financing arrangement where there is no acknowledged leadership amongst the partners, it was difficult to have harmonized reporting requirements, and this was an additional burden on the client. In addition, the DPs, as observers, were able to convey all of their concerns during supervision missions. For Bank reporting, the team used Bank’s methodologies for project performance for its ISRs, which might have been different from the DPs’ assessment. The Bank does not believe that observer status impeded supervision of the project. 84 Annex 9. List of Supporting Documents Amended and Restated Financing Agreement, eGhana project between Republic of Ghana and International Development Association, Dated September 8, 2010. Financing Agreement, eGhana project between Republic of Ghana and International Development Association, Dated , 2006. Ghana Integrated Financial Management Information System (GIFMIS) Project, Monitoring and Evaluation Report (various reports-2014) “Improving Business Competitiveness and Increasing Economic Growth in Ghana—The Role of Information and Communication Technologies and ICT-Enabled Services,” Information for Development Program, Hewitt Associates, April 2006. IEG report, “An Independent Review of World Bank Support to Capacity Building in Africa: The Case of Ghana.” Project Appraisal Document on a Proposed Credit in the Amount of SDR64.2 million (US$97 million equivalent) to the Republic of Ghana for an eTransform Ghana Project, September 26, 2013. Restructuring Paper on a Proposed Project Restructuring of eGhana Project Cr4226 and 4773, August 1, 2006, to the Republic of Ghana, June 30, 2014. Study on eGovernment and the Reduction of Administrative Burden, European Commission, 2914. 85 Annex 10. Detailed Description of Legislation Supported by the Project This summary is excerpted from the Borrower’s ICR. 1.1. The National Communications Authority Act, 2008 (ACT 769) Summary of the Law:The National Communications Authority Act, 2008 (Act 769) repealed the then National Communications Authority Act, 1996 (Act 524). The Act re-established the National Communications Authority (NCA) as the central body to license and regulate communications activities and services in Ghana. Strengthening the weaknesses under the previous Act, it incorporated international best practices on the principles of good corporate governance for a telecommunications regulatory institution. The Act charged the NCA to apply the principles of transparency and accountability in its work. It addresses the interests of consumers and users of telecommunications networks. Concerns for the environment and the impact of telecommunications activities for persons with disability, the elderly and low income earners are all part of the responsibility of the Authority. The Act sets out the objects, functions, powers and regulatory practices of the Authority. It among other things also provides for the composition of the Authority's governing body as well as their powers and functions. It must be also noted that Act 769 gave significant powers to the Authority to enable it assert its autonomy. Status of Implementation: After the Act received Presidential Assent (11th December 2008), the Board of the then National Communications Authority (Authority) was re-constituted to reflect the new composition proposed. The Act has since been implemented and is the main legal framework that the National Communications Authority derives it legal authority to regulate the communications industry. 1.2 The Electronic Communications Act, 2008 (ACT 775) Summary of the Law: This Act provides for the regulation of electronic communications, broadcasting, the use of the electro-magnetic spectrum and related matters. It applies to electronic communications and broadcasting service providers and their networks. It deals with licence and frequency authorisation, interconnection, access, universal service and access, consumer protection, numbering plans, equipment and technical standards, fees and resolution of disputes in the regulation of electronic communications. Act 769 and 775 separated the Authority’s operational and regulatory functions respectively. Act 775 also repealed the Telecommunications (Frequency Registration and Control) Decree, 1977 (S.M.C.D. 71) but saved some regulations made under the Telecommunications (Frequency Registration and Control) Decree, 1977 (S.M.C.D. 71) which regulations have since been also repealed by other legislations. Act 775 also established the Ghana Investment Fund for Electronic Communications (GIFEC) to provide financial resource for the establishment of universal service and access for all communities in Ghana and to facilitate the provision of basic telephony, internet service, multimedia service, broadband and broadcasting services to these communities. It defines amongst other things the sources of GIFEC’s money as well as its composition, functions and tenure of office of its Board of Trustees. This Act also creates a number of offences in contravention with the laws set out in the Act. It specifically prohibits provision of electronic communications service without a license and giving false and misleading information to the NCA just to mention a few. 86 Status of Implementation: After the Act received Presidential Assent (6th January 2009), the NCA used it to re-orient its licensing regime. The Act has since been implemented and is the main legal framework the NCA uses to license and/or authorize its service providers. In July 2004 the Government of Ghana set up Ghana Investment Fund for Telecommunications (GIFTEL) as an agency of the Ministry of Communications to facilitate the provision of universal service to basic telephony for the un-served and underserved communities in the country. The Electronic Communications Act, 2008 gave the legal autonomy to the agency (which started its operations in January 2005), changed its name to the Ghana Investment Fund for Electronic Communication (GIFEC) and widened the scope of its mandate to include the provision of access to electronic services including ICT, broadcasting, internet, and multimedia service for the un-served and underserved communities in Ghana. GIFEC continues to work within its mandate by bridging the digital divide and has been recognized as one of the efficient universal service providers in Africa. 1.3. National Information Technology Agency Act, 2008 (Act 771) Summary of the Law: This Act established the National Information Technology Agency to regulate information communications technology and to act as the national implementation and co-ordination Agency for the ICT policy. The Act sets out the objects, functions, powers and regulatory practices of the Agency. It among other things also sets out the composition of the Agency, its governing body as well as their powers and functions. Its mandate includes identifying, promoting and developing innovative technologies, standards, guidelines and practices among government agencies and local governments, as well as ensuring the sustainable growth of ICT via research & development planning and technology acquisition strategies to facilitate Ghana’s prospect of becoming a technology-driven, knowledge-and values- based economy as espoused in the e-Ghana project which ideally seeks to assist the Government generate growth and employment, by leveraging ICT and public-private partnerships. The establishment of the National Information Technology Agency has been vital for the e- Government to take off in Ghana. E-Government, being an essential component of the e-Ghana project will contribute to improved efficiency, transparency and accountability in selected Government functions. Status of Implementation: The Act having received Presidential Assent on 11th December 2008, the NITA Board was commissioned to take over IT policy implementation processes then being undertaken by Ghana Information and Communications Technology Directorate. (GICTeD). Currently NITA is fully operational with a complement of competent staff that are helping the institution to implement its mandate under the Act. NITA is currently championing the e- government initiative across the country in accordance with the Electronic Transactions Act, 2008 (Act 772). 1.4. The Electronic Transactions Act, 2008 (Act 772) Summary of the Law: This Act provides for and facilitates electronic communications and related transactions in the public interest. It ensures the prevention and removal of barriers that affect electronic communications and transactions in Ghana. The Act also helps promote legal certainty and confidence in the electronic communications and related transactions in Ghana just to mention a few. It applies to electronic transactions and records of every type. It helps to facilitate the use 87 of electronic media by recognizing the need to provide a framework for the preparation, processing, storage, transmission and receipt of electronic data in a secured, efficient and trustworthy manner. The Act provides for the establishment of a certifying agency to provide encryption and authentications services for electronic communications and transactions in Ghana. It also provides consumer protection laws and establishes a Domain Name Registry to be responsible for the country’s domain name space. It creates cyber offences to help prevent the use of electronic media for illegal or unlawful acts. Status of Implementation: Act 775 received Presidential Assent on 11th December 2008 and has since formed the basis of various ICT policy implementation activities including the following: • E-Government infrastructure and implementation processes. • Awareness creation and prosecution of cyber related offences. • Re-delegation processes and the setting up of the domain name registry. • Development of other legislations to facilitate full implementation of the Act 775 eg. the Data Protection Act, 2012 (Act 843). 1.5. Electronic Communications Regulations, 2011 (L.I. 1991) Summary of the Law: The Electronic Communications Regulations, 2011 (L.I. 1991) is a subsidiary legislation to further strengthen the provision of the Electronic Communications Act, 2008 (Act 769). The Regulations expand the provision in Act 769. It specifically provides for licensing regime and types, frequency allocation and regulations, standards, the fundamental principles or policies to govern the electronic communications industry, dispute resolution mechanisms, pricing and consumer protection related issues for the communications industry. Status of Implementation: These Regulations came into force in March 2011, and have since formed the basis of all licensing, standardization, authorizations, frequency allocations and dispute resolution processes undertaken by the NCA. 1.6. The Mobile Number Portability Regulations, 2011 (L.I. 1994) Summary of the Law: The Mobile Number Portability Regulations, 2011 (L.I. 1994) is a subsidiary legislation to further strengthen the provisions of the Electronic Communications Act, 2008 (Act 769). The purpose of the Regulations are to remove obstacles to any mobile telephony customer who wished to change networks but was reluctant to do so due to the inconvenience of changing his/her number. Status of Implementation: The implementation of this law marked two years in 2013 since its inception in 2011. There is now system that allows mobile telephony customers to move from one service provider to another whilst retaining their old mobile number. 1.7. The Electronic Communications (Amendment) Act, 2009 (ACT 786) Summary of the Law: This was an amendment to Act 775 above, to address challenges associated with international incoming call termination (call by-pass fraud or SIM boxing), set a minimum incoming international call termination rate as well as provide for electronic communications monitoring mechanisms to assure quality of service as well government revenue. Status of Implementation: The Act became effective on 31st December 2009 and has been implemented by the NCA to date 88 1.8. Subscriber Identity Module Registration Regulations, 2011 (L.I.2006) Summary of the Law: The Regulations recognized the directive in existence prior to it and made provision for the regulations to commence at the end of the period of the NCA directive. The Regulations mandated the registration of persons who purchase or own a SIM card or a mobile telephone from a service provider in Ghana. The essence of the law was to address challenges associated with the use of mobile phones to commit various crimes in the country. The Regulations also ensure that users of roaming facilities are not placed in a position different from the SIM registration regimes of their original and existing foreign network operators. Status of Implementation Prior to these regulations, the SIM card registration exercise was conducted on the basis of an NCA directive. Subsequently, the Regulations have facilitated the SIM card registration process. 1.9. Companies (Amendment) Act, 2012 (Act 835) Summary of the Law: This Act was passed together with Act 838 below, as an amendment to the Companies Code and became effective on 1st March, 2012 to facilitate the electronic registration process of companies at the registrar generals’ dept. Status of Implementation: The Registrar Generals’ Department is currently engaged in the electronic registration of companies. 1.10. The Electronic Transactions (Amendment) Act, 2012 (Act 838) Summary of the Law: This Act was passed together with Act 835 above, as an amendment to the Electronic Transactions Act, 2008 (Act 772) and became effective on 1st March, 2012 to facilitate the electronic registration process of companies at the Registrar Generals’ Dept. Status of Implementation: The Registrar Generals’ Department is currently engaged in the electronic registration of companies. 1.11. Data Protection Act, 2012 (Act 843) Summary of the Law: In recognition that every Ghanaian has the right to privacy the Data Protection Act, 2012 (Act 843) gives meaning to Article 18(2) of the 1992 Constitution. The Act was passed by Parliament in 2012 to protect the privacy of the individual and personal data by regulating the processing of personal information as well as provide for the processes to obtain, hold, use or disclose personal information and other related issues relating to the protection of personal data. The Act established the Data Protection Commission (DPC) to regulate and implement its provisions. The Commission’s objects are: • The protection of the privacy of the individual and personal data by regulating the processing of personal information. • The provision of the processes and or guidelines to obtain, hold, use or disclose personal information. • The Commission’s functions as set out under section 3 of the Act are as follows: • Implementation and monitoring of compliance with the provisions of the Act. 89 • Determining and setting of the administrative arrangements it considers appropriate for the discharge of its duties. • Investigation of complaints under the Act and the determination of such complaints on the basis of its investigation in a manner the Commission considers fair. • Keep and maintain the Data Protection Register. The Act provides for an eleven (11) member governing body (Board) including the Executive Director of the Commission. The Board is made up of a chairperson, representatives from the National Communications Authority, the Commission on Human Rights and Administrative Justice, Ministry of Communications, Industry Forum, the National Information Technology Agency, the Bank of Ghana, the Statistical Service, the Executive Director and two other persons nominated by the President one of whom is a woman. The governing body is to implement and monitor compliance with the provisions of the Act. For its day to day administration, the Act provides for the appointment of an Executive Director and other staff for the Commission. Status of Implementation: The Act came into force on 16th October 2012. Consequently after due process, the Ministry of Communications inaugurated its governing body in November 2012. The Commission to date set up some of its structures is will be fully operational from January 2015. The Commission has begun awareness creation targeting key stakeholders which will be intensified in 2015. It will also launch its pilot registration of data controllers and processors before the end of the year 2014. The Commission has also been recognised by the International Conference of Data Protection and Privacy Commissioners as an independent data protection authority and will be accredited at its 36th Conference in Mauritius in October 2014. 1.12, The Broadcasting Bill: The purpose of the Bill is to provide comprehensive legislation on broadcasting services regulated by the National Media Commission in a manner consistent with the Constitution. The Bill also establishes the Ghana Broadcasting Corporation as a public broadcasting service in accordance with the Constitution and repeals the Ghana Broadcasting Corporation Act, 1968 (NLCD. 226) which in certain respects is no longer appropriate. As a result of the new Constitutional dispensation, the broadcasting landscape has within the last decade or so, undergone radical but haphazard transformation. Today about two hundred and fifty broadcasting frequency authorisations have been granted for FM radio stations across the country. Of these, one is a state-owned broadcasting service with fifteen regional FM stations. According to the National Communications Authority, it has granted more than thirty (30) authorisations for community radio and one hundred and seventy for private commercial radio stations. There are also twenty (20) authorisations for private free-to-air commercial television stations in addition to the state-owned television station and seven pay television services. This development has introduced a refreshing pluralism onto our mass media landscape and opened up access to new and diverse voices that have promoted democracy and participation in governance and development. The paradox however, has been that legislation has lagged behind these new developments on the media landscape. The only legislation that relates to broadcasting are the Ghana Broadcasting Corporation Act, 1968 (NLCD 226), National Media Commission Act, 1993 (Act 449) established in accordance with articles 166 and 167 of the Constitution, the National Communications 90 Authority Act, 2008 (Act 769), the Electronic Communications Act 2008 (Act 775) and subsidiary legislation enacted under these laws. As a result, the country does not have clear, transparent and uniformly applied legal criteria for the grant of broadcasting authorisations. This lends the process to arbitrariness and patronage. At the same time, the regulatory overview of the content of programmes is virtually non-existent. This exposes the public and children in particular, to non- edifying and sometimes, harmful programmes. Furthermore, some sections of the media have on occasions carried inflammatory presentations with the potential to incite one section of the society against the other. In response to this drawback, the Broadcasting Bill was developed in collaboration with the Ministry of Information. In March 2014, the Ministry of Information completed its stakeholder consultations and has subsequently forwarded recommendations made to the Attorney-General for incorporation into the Bill. Subsequent to the merging of the Ministry of Communications with the Ministry of Information, the stakeholder recommendations are being reviewed and will be submitted to Cabinet before the end of 2014 for approval and subsequent laying in Parliament. The Broadcasting Bill articulates the fundamental values, principles and objectives of broadcasting. The Bill classifies the types of broadcasting systems and articulates their responsibilities and prerogatives. In addition, the Broadcasting Bill is intended to be fully alive to the world of rapidly changing communications technology and its import for broadcasting. It also seeks to promote the competitive growth of local broadcasting organizations. The Bill makes adherence to the Copyright Act, 2005 (Act 690) a pre-requisite for the broadcasting services and the National Media Commission is to ensure that service providers comply with the Copyright Act. Under section 5 (c) of the Copyright Act, public performance, broadcasting and communication of an author’s work to the public without authorisation of the owner, is an actionable right infringement. Regulation 35 of the Copyright Regulations 2010 (L.I. 1962) makes it mandatory for broadcasters and other users to secure a performance licence prior to the performance in public of a copyright work. The Bill makes provision for the migration from analogue television transmission to digital television broadcasting. The Bill introduces a local content requirement that a percentage of airtime be devoted to promoting Ghanaian culture and creative works. This is in order, as stated in clause 4 (b) of the Bill “to safeguard, strengthen and enrich the cultural, political, social and economic fabric of Ghanaian society “and clause 4 (c) (i) “to promote national identity and the national culture and languages of the country”. The Bill provides for the meaning, types and regulation of broadcasting. The types of broadcasting provided for, are public service broadcasting, commercial broadcasting, and community broadcasting. The Bill also provides for signal distribution and multi-channel distribution, broadcast authorisation, programming and broadcasting standards as well as funding. The Bill is in two parts. Part One is on the broadcasting sector as a whole and has provisions on the three categories of broadcasting. Part Two is specifically on the Ghana Broadcasting Corporation. The two parts have been brought together to consolidate the major legislation on the broadcasting sector. 91 Annex 11. List of Companies Incubated Name of company Type of Product Stage of Development 1 Adroit Bureau Ltd Innovative Software solutions for Product Development completed; running businesses Testing done; Product launch done 2 AppNet Consult Hotel Room Booking System Product Development completed; Testing done; Product launch ongoing 3 Alloyblue Online payment Gateway Product Development completed; Testing ongoing; Product launch pending 4 Easy Hotel Search Hotel Search Solution Product ongoing; Product launch pending 5 Africa Innovation Online entrepreneurial educational Prototype building ongoing; Academy institution Product Development pending; Testing pending; Product launch pending, 6 Ravin Technologies Solution to create and/or book event(s), Prototype building done; announcements and receive Product Development ongoing; notifications on a mobile platform. Testing pending; Product launch pending 7 Greenlife Natural Health Mobile application for medical Product Development ongoing; Care consultations, prescribe herbal Testing pending; Product launch remedies and also conduct basic medical pending laboratory investigations. 8 Ikernel Networks Development of embedded hardwares, Product Development ongoing; web based mobile and desktop Testing pending; Product launch applications. pending 9 JTEK IT Solutions Provision of quality IT services to Product Development completed; business, organizations and schools. Testing ongoing; Product launch pending. 10 KKYB Productions It is a software development, digital and Product Development completed; graphic media company. Testing done; Product launch done 11 Aya Multimedia Group Creative works in the multimedia Product Development completed; industry Testing ongoing; Product launch pending. 12 MapTech Logistics Ltd Use of GIS technology to solve business Product Development completed; problems relating to logistics and supply Testing done; Product launch done chain management. 13 TRAMO Innovative system software that Product Development completed; supports businesses and individuals in Testing ongoing; Product launch exchange of services. pending. 14 SMERKLABS Provides innovative solutions to Product Development completed; DEVELOPERS problems faced in Ghanaian society Testing ongoing; Product launch through the use of mobile and desktop pending. based information technology 92 Name of company Type of Product Stage of Development 15 Paragle Studios Ltd Production of series of 10-15 minute Product Development completed; documentary style videos, that seek to Testing done; Product launch expose interesting postgraduate pending research as well as innovative ideas of some undergraduate students 16 Mnotify An artiste to fan marketing medium that Product Development completed; empowers musicians and stakeholders Testing ongoing; Product launch in the creative arts, to connect directly pending. with their fans and everyone else in the music industry. 17 Kente Master Design and development of web and Product Development ongoing; software applications, which deliver Testing ongoing; Product launch long term commercial benefits, based pending. upon our clients key business requirements 18 Lexitin Company Ltd Development of electronic pulpit Product Development ongoing; intelligent desk. Testing ongoing; Product launch pending. 19 Tec Knowlodgy Online shopping platform to be created Product Development completed; Solutions and hosted on the domain Testing pending; Product launch shoppmann.com pending. 20 TripVane A mobile application which serves as a Product Development completed; concierge, with the aim of helping Testing ongoing; Product launch travellers plan memorable TRIPS or visits prnding. and also, securing a place of accommodation for their stay. 21 Orbitag Incorporated Development and management of a Bus Product Development completed; booking module (Software) that would Testing done; Product launch run on 3 customer-familiar platforms; ongoing Android OS, Windows platform (Web- based Application), SMS module. 22 Senter 1 A Private-Public Sector Call Centre Product Development ongoing; Project Aimed at Centralizing Access to Testing pending; Product launch Public Information for Use by the pending. General Public. 23 Pixil Motion Production of 3D character animation, Product Development completed; motion design and visual effects for Testing done; Product launch done feature films and television, game cinematic & trailers, location-based entertainment, commercials and integrated media. Pixil Motion 24 MnM Teknologies Ltd Software solutions including payroll Product Development completed; Industry systems, school management and Testing ongoing; Product launch exams assessment systems, websites pending and even electronic voting systems. 93 Name of company Type of Product Stage of Development 25 VYL Investment The vision is to build a company that can Product Development ongoing; Solutions Ltd have integrated information system for Testing pending; Product launch individuals to manage their finances. pending. 94 Annex 12: Additional Information on PPP Activities The project design was strategic in using PPPs in e-government to expand opportunities for the private sector while at the same time reducing public investments on e-government, overcoming lack of relevant skills in government, and achieving faster roll out of e-government initiatives. The PPP for the Ghana Revenue Authority was innovative in the way it was structured - as a Design, Finance, Build, Operate, and Transfer (DFBOT) partnership between private and public partners to improve the tax collection processes and expand the tax base. The contract guaranteed about 33 percent payment (US$20 million) of the total contract price of US$60 million to the contractor from the project, with the remaining 66 percent contribution coming from the private sector’s own resources and reimbursed based on performance. The contract arrangement was for 5-7 years including the development and implementation of the application under the DFBOT arrangement. Not only would the application be developed, but there was a strong incentive for the contractor to improve tax compliance and collection. These activities sent signals to the private sector that the GoG was committed to ICT as a main driver of the national economy. The project design mitigated risks of using PPPs by using the Policy Guidelines for the Implementation of Public Private Partnerships in Ghana based and through extensive consultations between the Ministry of Communications and the private sector. Should the private partner fail to perform any of the Design, Build or Operate functions, it would jeopardize its investment. Hence the private partner would have the motivation to come forward with the optimum design of the system that will provide for additional efficiencies and revenues. Since reimbursement is key, the private partner would have a strong incentive to design a system that indeed delivers project outcomes. In the end, eGhana was successful in using PPPs to produce important applications for the Ghana Revenue Authority and the Register General’s Department. This partnership has been key to improving the efficiency and transparency of government services (revenue collection and business registration), which was a component of the PDO. PPP implementation was challenging, balancing the interests of a number of stakeholders and private contractors, along with the Government agencies’ need to ensure that public interest was protected in the transactions, (while at the same time packaging the transaction in such a way to attract potential investors). Thus, the PPP required frequent in-depth consultations. The PPP is a 5-7 year engagement. The applications have been developed – the GRA (TRIPs) and RGD (e-Register) successfully launched in November 2013 and April 2015, respectively. Four main unanticipated risks affecting PPP. First, contractor issues surrounding an intellectual property dispute led to a one-year delay. To resolve the issue, the lead contractor, GCNet, was forced to buy out the subcontractor and redevelop a portal from scratch.. The second unanticipated risk was the decision of the GOg to consolidate all the revenue agencies (IRS, VAT, CEPS, RAGB) in December 2009, in accordance with a new Ghana Revenue Authority Act 2009, Act 791. This meant a reconfiguring of the systems design for the GRA which had already been developed for the separate revenue agencies. The third risk was with the mechanism for the repayment of the private partner. Under the contract signed between the private and public partners, the private partner would receive payments for delivered system goods and services from two sources: (i) funds provided from the World Bank Credit for this project up to US$20 million; and (ii) a Special Repayment Escrow Account (SREA) to be 95 established by the Government of Ghana and funded by depositing 85 percent of the incremental revenues above the previous five year trend line in this SREA for the exclusive purpose of making payments due to the Supplier. There has been challenges opening this SREA account because the GoG informed the private partner that only parliament could authorize payments out of a Government Consolidated Account. The two parties have been working out new mechanisms for reimbursement of private partner’s investment. The fourth issue was an external factor that arose from the 2009-2010 economic crisis which struck when the government failed to attract a suitable partner in a first bid and had to undergo a second bidding process. The Government requested that the World Bank Contribution to the e-government PPP Project (payment to the private sector) be increased from US$10 million to US$20 million. The reasons articulated by the client for this increase were as follows: a. The case study undertaken at project appraisal in 2006 estimated the total investment cost for only one MDA (IRS) in the order of US$20 million. The estimated Government contribution was expected to be 50 percent (i.e., US$10 million). New estimates provided by the Consultants hired for more detailed feasibility studies put the investment cost at US$40- 50 million (for 5 MDAs). The range of bid prices received during the initial bid process was indeed between US$40-50 million. b. With the ongoing global financial crisis, an increase from US$10 million to US$20 million would reduce some of the difficulties in access to finance by private partners. 96 MAP 97