The World Bank Report No: ISR3831 Implementation Status & Results Chad Public Disclosure Copy Public Financial Management Capacity Building (P090265) Operation Name: Public Financial Management Capacity Building (P090265) Project Stage: Implementation Seq.No: 8 Status: ARCHIVED Last Modified Date: 04-Jul-2011 Country: Chad Approval FY: 2007 Product Line: IBRD/IDA Region: AFRICA Lending Instrument: Technical Assistance Loan Implementing Agency(ies): Ministry of Finance Key Dates Board Approval Date 24-May-2007 Original Closing Date 31-Dec-2012 Planned Mid Term Review Date 01-May-2010 Last Archived ISR Date 16-May-2011 Effectiveness Date 22-Apr-2009 Revised Closing Date 31-Dec-2012 Actual Mid Term Review Date 10-Jun-2011 Project Development Objectives Project Development Objective (from Project Appraisal Document) The overall development objective of the proposed operation is to help the GoC improve the quality of its PFM system to increase the efficient and transparent use of public resources, in particular the expected oil revenue, to attain MDGs. To this end, the proposed IDA project will support the implementation of the Government PAMFIP action plan for modernization of PFM in a concerted manner with other donors. Has the Project Development Objective been changed since Board Approval of the Project? Yes No Component(s) Component Name Component Cost Public Finance and Financial Accountability 2.33 Human Resource Development 2.15 Integrated Financial Management Information System 2.44 Coordination, Monitoring and Evaluation of PAMFIP 2.19 Public Disclosure Copy Overall Ratings Previous Rating Current Rating Progress towards achievement of PDO Unsatisfactory Moderately Unsatisfactory Overall Implementation Progress (IP) Moderately Unsatisfactory Moderately Satisfactory Overall Risk Rating Implementation Status Overview Implementation of project witnessed concrete progress during the last six month period with the effective implementation of the Road map adopted by the Minister of Finance in December 2010. 80 percent of the activities in the Road Map were completed as agreed upon to address PFM reforms issues and project management weaknesses that hampered implementation since inception. The MTR mission, conducted in June 2011, stressed the need for the authorities to submit the project restructuring request that would help in Page 1 of 7 The World Bank Report No: ISR3831 addressing the remaining project implementation shortcomings identified during the review,and would allow for an upgrading of the project PDO rating. Furthermore, Authorities would need to revise the overall PFM strategy in order (i) to take into account the changes in priorities since its adoption in July 2005, especially the need to adapt the CEMAC (Central Public Disclosure Copy Africa Economic and Monetary Community) Directives on public finance into national laws and (ii) to ensure it is more operational and results-oriented. Results Project Development Objective Indicators Indicator Name Core Unit of Measure Baseline Current End Target 1-Aggregate allocation to priority sectors equal Text Value Budget allocations for priority 70 percent or exceed 70 percent of total expenditure sectors #Year 2006 = 66.0 (excluding debt service, but including capital percent Note = New definition spending and externally financed expenditure) of priority sector includes or is aligned wi justice, governance, and so on and takes into account externally financed expenditures. Date 31-May-2007 10-Jun-2011 31-Dec-2012 Comments Following the Bank This target will be eliminated termination of the Oil at project restructuring. Revenue Management Agreement and the MoU in September 2008, formal monitoring of this indicator has ended. This indicator will be taken out at restructuring to reflect this change 2-Aggregate actual expenditure for priority Text Value Budget deviations for priority 5 percent sectors compared with original approved sectors (initial PRMP budget shall not deviate more than 5 percent definition until 2005): #Year from 2011 (for expenditures financed with 2006 = 20.4 percent #Year domestic resources). 2004 = 19.1 percent #Year Public Disclosure Copy 2005 = 15.5 percent #Year 2006 = will be available in June 2007 Date 31-May-2007 10-Jun-2011 31-Dec-2011 Page 2 of 7 The World Bank Report No: ISR3831 Comments Same as above. Following the This target will be eliminated Bank termination of the Oil at project restructuring Public Disclosure Copy Revenue Management Agreement and the MoU in September 2008, formal monitoring of this indicator has ended. This indicator will be taken out at restructuring to reflect this change 3. Quarterly budgetary and financial Text Value Circuit Intrdes Denses (CID) Four-phase table is consistent reports, including all items of budget estimates (current IFMIS) is regularly with the approved budget, and covering expenditures at both commitment producing a table (tableau consolidate all budget, cover and payment stages are regularly produced in des quatre phases), which is all payments and is issued a timely manner (issued inaccurate (data are not within four weeksafter period consistent with approved end. budget), noncomprehensive (does not include salaries and external financing and does not consolidate various budget), and does not cover all payments. It is currently useless for any meaningful follow-up of budget execution. Date 31-May-2007 10-Jun-2011 31-Dec-2011 Comments No progress compared to Given delayed project baseline since the CID effectiveness, target will be upgrading is underway with shifted in line with project support from Burkina Faso. extension period. 4. (a) The treasury annual financial Text Value #2004 treasury accounts were 2010 accounts submitted by accounts (Comptes de Gestion du Tror) are produced for COA at the end end of May 2011 produced and submitted to the Chamber of of September 2005. #2005 Public Disclosure Copy Accounts (COA) by May 2010 treasury accounts were not yet produced for COA, at the end of September 2006. Date 31-May-2007 10-Jun-2011 31-Dec-2011 Comments Treasury FS for year 2010 are Given delayed project about to be finalized (by end effectiveness, target will be of June 2011). This was shifted in line with project possible because of the timely extension period. closing of the fiscal year (February 28, 2011) for the first time Page 3 of 7 The World Bank Report No: ISR3831 Indicator Name Core Unit of Measure Baseline Current End Target 4. (b) Annual budget execution law (Loi Text Value # The 2004 Loi de 2010 draft LR submitted by Public Disclosure Copy de Rlement) is submitted to Parliament, in Rlement (LR) was submitted end September 2011 conformity with legal provisions, from 2009 to Parliament at the end of fiscal year (September 2010). October 2005. # The 2005 LR was not yet submitted to Parliament by the end of September 2006; however, the administrative financial statement has been prepared by the MOF and submitted to COA. Date 31-Dec-2007 10-Jun-2011 31-Dec-2011 Comments LR for 2010 is about to be Given delayed project finalized (July2011). If effectiveness, target will be confirmed, this improvement shifted in line with project would also be the extension period. consequence of the timely closing of the fiscal Year (February 28, 2011) 4. (c) Mandatory audits regularly carried Text Value The 2005 Colle report was 2010 report released by July out by oversight and audit institutions (the Colle released in mid-October 2006. 2011 prepares its annual audit on oil revenue, Date 31-Dec-2007 10-Jun-2011 31-Dec-2011 issuing it by the end of July). Comments Since the College is part of This target will be eliminated the Oil Revenue Management at project restructuring Program, this indicator is no longer monitored as for the 2 first indicators above. Intermediate Results Indicators Public Disclosure Copy Page 4 of 7 The World Bank Report No: ISR3831 Indicator Name Core Unit of Measure Baseline Current End Target 5. (a) Preparation of multiyear fiscal Text Value A macro-fiscal forecast for Macro-fiscal projections for Public Disclosure Copy forecasts and functional allocations for 2007#09 has been prepared 2012#14 available at end of 2008#10 and 2009#11. and discussed in August May 2011 2006, but only year 2007 has actually been elaborated. A long-term forecast will be timely undertaken for next few fiscal years.end of July 2006, but a lot of work remains to be done oncosting of investment and recurrent expenditures. Date 31-May-2007 10-Jun-2011 31-Dec-2011 Comments Technical work was done with Given delayed project the project support (through effectiveness, target will be TA) to produce 2012 shifted in line with project projections. For the first time, extension period. a new model developed under the project was used by the authorities and IMF to project 2012 and beyond macro- financials . 5. (b) Production of priority sector Text Value Thirteen ministries prepared a Sector MTEF for 2012#14 program budget with multiyear costing of sector MTEF for 2007#09 by available for 13 ministries at recurrent and investment expenditures for the the end of July 2006, but a lot end of July 2011 same period. of work remains to be done on costing of investment and recurrent expenditures. Date 31-Jul-2006 10-Jun-2011 31-Dec-2011 Comments It is agreed that this indicator It is agreed that this indicator will not be monitored anymore will be discarded after project Public Disclosure Copy since the activity supporting restructuring. Budget Programs will be discarded at project restructuring. Page 5 of 7 The World Bank Report No: ISR3831 Indicator Name Core Unit of Measure Baseline Current End Target 6. (a) Mandatory audits regularly carried Text Value The COA has not yet audited COA to return verdict on audit Public Disclosure Copy out by oversight and audit institutions the 2004 treasury accounts of 2010 treasury accounts by (Chamber of Accounts implements the submitted in October 2005. end of December 2011 Comptes du Tror annual audit). Date 31-Dec-2007 10-Jun-2011 31-Dec-2011 Comments Capacity Building of the COA Given delayed project to undertake the audit of effectiveness, target will be Treasury Statements is shifted in line with project planned to start during this extension period. semester with the project support. 6. (b) Mandatory audits regularly carried Text Value IGF has implemented 45% 80 percent of IGF annual out by oversight and audit institutions (IGF percent of its 2005 annual audit program is implemented performs 80 percent of its annual audit audit program. programs by end of the Project). Date 31-Dec-2007 10-Jun-2011 31-Dec-2011 Comments Capacity building activities for Given delayed project IGF are yet to start with effectiveness, target will be project support. shifted in line with project extension period. 7. An M&E system, including institutional Text Value No M&E system for PAMFIP M&E reports for PAMFIP are arrangements and information system, is was available as of the end of available adopted and implemented for PAMFIP. March 2007. Date 31-Dec-2007 10-Jun-2011 31-Dec-2012 Comments Progress is limited on M&E. Given delayed project This would need to be effectiveness, target will be strengthened during the shifted in line with project upcoming semester. It is extension period. expected that the revised strategy would be an opportunity to review and Public Disclosure Copy overhaul the M&E system and update the M&E plan that would support PFM reforms implementation 8. Satisfactory annual financial audit Text Value No audit report is available at 2010 audit reports with report for the IDA-financed project. end of March 2007. positive opinions (without qualification) available by end of June 2011 Date 31-Dec-2007 10-Jun-2011 31-Dec-2012 Comments Audit report for year 2010 is This target is likely to be met. not yet due. Page 6 of 7 The World Bank Report No: ISR3831 Data on Financial Performance (as of 03-Jun-2011) Financial Agreement(s) Key Dates Public Disclosure Copy Project Loan No. Status Approval Date Signing Date Effectiveness Date Closing Date P090265 IDA-H2920 Effective 24-May-2007 22-Dec-2007 22-Apr-2009 31-Dec-2012 Disbursements (in Millions) Project Loan No. Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P090265 IDA-H2920 Effective XDR 6.70 6.70 0.00 1.28 5.42 19.00 Disbursement Graph Public Disclosure Copy Key Decisions Regarding Implementation Following successful implementation of the Road map agreed upon in December 2010, Authorities should now submit a request for project restructuring to address the remaining weaknesses in the project design and results monitoring framework. Once the request is submitted and approved, Bank team would take the necessary steps to revise and upgrade the ISR ratings, as required. By end of the year 2011, the Authorities also need to revise the overall PFM strategy to ensure it is more operational and results-oriented. Restructuring History There has been no restructuring to date. Related Projects There are no related projects. Page 7 of 7