The World Bank Implementation Status & Results Report Togo Economic Governance Project (P158078) Togo Economic Governance Project (P158078) AFRICA WEST | Togo | Governance Global Practice | IBRD/IDA | Investment Project Financing | FY 2018 | Seq No: 6 | ARCHIVED on 28-Jan-2021 | ISR45129 | Implementing Agencies: Ministry of Economy and Finance, Ministry of Finance Key Dates Key Project Dates Bank Approval Date: 03-Oct-2017 Effectiveness Date: 20-Apr-2018 Planned Mid Term Review Date: 30-Jun-2021 Actual Mid-Term Review Date: Original Closing Date: 31-Oct-2022 Revised Closing Date: 31-Oct-2022 pdoTable Project Development Objectives Project Development Objective (from Project Appraisal Document) The project development objective is to improve public investment management, domestic revenue mobilization and public accountability and monitoring mechanisms for better service delivery in priority sectors. Has the Project Development Objective been changed since Board Approval of the Project Objective? No Components Table Name Management of Public Investments and Public-Private Partnerships:(Cost $6.06 M) Supporting Domestic Resource Mobilization:(Cost $7.20 M) Increasing Public Accountability and Citizen Engagement:(Cost $3.98 M) Project Implementation Support:(Cost $2.56 M) Unallocated:(Cost $0.80 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO Satisfactory Satisfactory Overall Implementation Progress (IP) Satisfactory Satisfactory Overall Risk Rating Moderate Moderate Implementation Status and Key Decisions The project was restructured in July 2020 to strengthen the COVID-19 crisis management capacity of the Ministry of Economy and Finance by (i) strengthening HR resources capacity of key departments of MEF (i.e. Budget, Economic research, Debt management, HR); and (ii) developing tools and systems to facilitate MEF teleworking. Despite the COVID-19, implementation of the project activities since the last mission in June 2020 continued to be satisfactory: Two additional PDO indicators were met: (i) The taxpayer census in Lomé resulted in a 38.5% increase in the filing of taxpayers with a turnover exceeding 10 million FCFA; exceeding the end of project target of 30%; and (ii) the survey on the satisfaction of large taxpayers with the responsiveness of OTR was carried out, and 65% of large taxpayers were satisfied with OTR’s responsiveness. This exceeds the end of the project target of 60%. The project now meets four (4) out of five (5) PDO indicators and significant progress is made for the remaining PDO indicator : the baseline survey on citizens 1/28/2021 Page 1 of 8 The World Bank Implementation Status & Results Report Togo Economic Governance Project (P158078) satisfaction with quality as access to basic services in maternal and child health, primary education, and urban water supply was completed. The Citizen satisfaction rates for access and quality of basic maternal and child health, primary education, and urban water supply services are estimated respectively at 42%, 61 %, and 50%. The End of the project Target is to increase these rates by 15 points (e.g. 57%; 76% and 65% at project closing date). During the virtual supervision mission of December 2020, the Bank recommended an acceleration of the new activities, notably (i) finalization of the contract of the HR consulting firm that will assist MEF in filing the key positions of MEF departments; (ii) procurement of telework equipment to facilitate teleworking in MEF during COVID 19. Project management, including financial management and procurement, continues to be satisfactory. The status of key project components is as follows: 1. Component 1: Management of Public Investments and Public-Private Partnership Key achievements during the ISR period include (i) development of a manual of procedures for the selection, prioritization, and programming of public investment projects as well as its operationalization tools, (ii) training of all stakeholders in the use of the manual; (iii) supporting the program budgeting reform through quality review of programs and use of Commitment Authorization (Authorisation d’ Engagement- AE) and Payment of Credit (Crédit de Paiement - CP) in sectoral programs; and the modernization of the Procurement Regulation Authority (Agence de Régulation des Marchés Publics, ARMP) website, and the ongoing public procurement system assessment using the Methodology for Assessing Procurement Systems (MAPS II). To accelerate the implementation of this component, the following key recommendations were made during the December 2020 ISM: (i) development of a Monitoring and Evaluation manual for physical monitoring of public investment projects (target date December 31, 2020); (ii) selection of a firm to develop a benchmark of trustee values for Togo to facilitate the ex-ante evaluation of public investment projects using a cost- benefit methodology; (iii) recruitment of the consultants in charge of supporting the professionalization of the public procurement function and the development of the public procurement policy and the strategic plan of the ARMP; (iv) finalization of the MAPSII assessment mission; and (v) acceleration of the implementation of the COVID 19 activities, notably the contract of the HR consulting firm that will assist MEF in filing the key positions of MEF departments and procurement of telework equipment to facilitate teleworking in MEF during COVID 19. 2. Component 2: Supporting Domestic Resource Mobilization. To date, six (6) Disbursements Linked Indicators (DLIs) have been met, including the following two since the last ISR: (i) DLI 2.3: 38.5% increase in the filing by income taxpayers with a turnover exceeding 10 million CFAF against a target of 30%; (ii) DLI 3.3: 65% of large taxpayers surveyed expressed satisfaction with the responsiveness of OTR. The Bank commended Office of Tax Revenues for the progress made and recommended that the momentum be maintained for the remaining two DLIs: (i) DLI 3.1 : Set up an electronic system of taxpayer filing and documentation ; and (ii) DLI 3.2 : Reduced average length of time to address taxpayer requests from 12 days to 6 days. It is expected to achieve these two DLI by the end of the year 2021. In addition, the recruitment of six key positions of the Tax Policy Unit that was delayed because of COVID 19 needs to be completed by end of March 2021. 3. Component 3: Increasing Public Accountability and Citizen Engagement. Satisfactory progress is being made in the implementation of the activities related to Public accountability mechanisms and citizen participation in budget preparation and implementation processes. Key Activities implemented during the ISR period include (i) follow-up missions to monitor implementation of General Inspectorate of Finance (Inspection générale des finances, IGF) recommendations which are expected to be completed by December 31, 2020, (ii) ongoing training of National Assembly Finance Committee members on budget policy debate and program-based budgeting, (iii) finalization of a strategic plan for the Court of Auditors, (iv) finalization and publication of the 2020 Citizens' Budget. The selection of CSOs is underway to develop the methodology and collect citizens' feedback on the quality and accessibility of public services in three priority sectors (maternal and child health, primary education, and water supply in urban areas). During the December 2020 implementation support mission, the Bank recommended: (i) finalization of the risk-based mapping and audit mission of the 4 selected ministries, (ii) implementation of priority actions in the operational plan of the Court of Auditors, (iii) development and publication of the 2021 citizen budget no later than March 2021; (iv) approval of the financing agreements of CSOs. 4. Project Implementation Support. Project Implementation Support continues to be satisfactory. The 2020 annual work program and budget (PTBA 2020), Interim Financial Reports (IFR), and 2019 Annual audited financial statements were submitted on time. Procurement performance continued to improve and the rating was Satisfactory. The 2021 annual work program and budget needs to be finalized and approved by the project steering committee (COPIL). The Bank team was informed about the upcoming preparation of a withdrawal application (WA) for a total amount estimated at 923,000 DTS following the achievement of DLI 2.3 and 3.3 by OTR. Payment of this WA will bring the IDA total disbursement rate of the project to 48% and FY21 disbursement rate estimates at 18.53%. It is worth to mention that at the last meeting of the COPIL on September 23, 2020, the PTBA 2020 was revised again to XOF 2,598,000,000 (an increase of about XOF 505,000,000) to cover the costs of the new activities added following the restructuring of the project as well as the anticipated achievements of 2 DLI by OTR before the end of 2020. Risks Systematic Operations Risk-rating Tool 1/28/2021 Page 2 of 8 The World Bank Implementation Status & Results Report Togo Economic Governance Project (P158078) Risk Category Rating at Approval Previous Rating Current Rating Political and Governance Substantial Moderate Moderate Macroeconomic Substantial Substantial Substantial Sector Strategies and Policies Substantial Moderate Moderate Technical Design of Project or Program Moderate Moderate Moderate Institutional Capacity for Implementation and Substantial Low Low Sustainability Fiduciary Substantial Moderate Moderate Environment and Social Low Low Low Stakeholders Substantial Moderate Moderate Other -- -- -- Overall Substantial Moderate Moderate Results PDO Indicators by Objectives / Outcomes Improve Public Investment Management and COVID-19 Response IN00941487 ►Public investment projects approved for financing that have been appraised in line with Public Investment Management appraisal guidelines (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 100.00 100.00 50.00 Date 04-Apr-2017 24-Jun-2020 24-Jun-2020 31-Oct-2022 Achieved and exceeded. 100% of Public Investment projects included in the 2020 budget have been appraised based on the PIM guidelines. This achievement exceed the targeted ratio of 50% excepted for Comments: the project closing date. More specifically, 238 projects of the Public Investment Program (PIP) for the period 2020-2022 (e.g. 2020 tranche) were appraised based on the PIM guidelines and manual. Improve Domestic Revenue Mobilization IN00941488 ►Share of total registrants post taxpayer census increased in Lome (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 37.00 37.00 15.00 Date 04-Apr-2017 24-Jun-2020 24-Jun-2020 31-Oct-2022 Achieved and Exceeded. The share of total registrants’ post taxpayer census in Lomé increased by 37% Comments: exceeding the target of 15 percent excepted at the project closing date. IN00941596 1/28/2021 Page 3 of 8 The World Bank Implementation Status & Results Report Togo Economic Governance Project (P158078) Increase in filing taxpayers in Lome with a turnover exceeding 10 million CFAF (Percentage, Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 38.50 30.00 Date 30-Jun-2017 24-Jun-2020 04-Dec-2020 31-Oct-2022 Improve Public Accountability and Monitoring Mechanisms for better service delivery in priority sect IN00941489 ►Citizens satisfied with quality and access to basic services in maternal and child health, primary education, and urban water supply (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 51.00 15.00 Date 30-Jun-2017 24-Jun-2020 04-Dec-2020 31-Oct-2022 The baseline survey on citizen satisfaction with quality as access to basic services in maternal and child health, primary education and urban water supply was completed. The Citizen satisfaction rates with Comments: respect to access and quality of basic maternal and child health, primary education and urban water supply services are estimated respectively at 42%; 61% and 50%. IN00941490 ►Satisfaction of large taxpayers with the responsiveness of OTR (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 43.80 0.00 65.00 60.00 Date 30-Jun-2017 24-Jun-2020 04-Dec-2020 31-Oct-2022 Achieved: The survey on the satisfaction of large taxpayers with the responsiveness of OTR was carried Comments: out and 65% of large taxpayers were satisfied with OTR's responsiveness. Overall Comments PDO Significant achievements have been made by the project. Four (4) out of five (5) Indicators of the project have been achieved almost 2 years before the project closing date. The Citizen satisfaction rates with respect to access and quality of basic maternal and child health, primary education and urban water supply services are estimated respectively at 42%, 61 % and 50%. The end of project target is to increase these rates by 15 points (e.g. 57% ; 76% and 65% are the End Targets). The government through the concerned line ministries and the project team are monitoring this Indicator to meet the target by the project closing date. Intermediate Results Indicators by Components Management of Public Investments and COVID-19 Response IN00941597 ►Systematic use of economic and cost-benefit analyses for appraisal of major public investments including PPP (programs superiror to 2 billion FCFA) (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target 1/28/2021 Page 4 of 8 The World Bank Implementation Status & Results Report Togo Economic Governance Project (P158078) Value 0.00 100.00 100.00 30.00 Date 04-Apr-2017 24-Jun-2020 04-Dec-2020 31-Oct-2022 Achieved and exceeded. Economic and cost-benefit analyses for appraisal of major public investments including in the PIP were done for large programs during the preparation of the 2020 budget. Eleven (11 Comments: out of 11) projects worth more than 2 billion CFA each, have subject to cost-benefit analysis during the budget preparation process. IN00941600 ►Difference between Public Investment Program, Sectoral Medium Term budget framework DPPD and Finance Law in priority sectors (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 15.00 2.00 2.00 5.00 Date 30-Jun-2017 24-Jun-2020 04-Dec-2020 31-Oct-2022 Achieved and exceeded. The Public Investment Program, Sectoral Medium Term budget framework Comments: DPPD and Finance Law in priority sectors (Percentage, Custom) are fully aligned in the 2020 budget. IN00941603 ►Publication of Annual Debt Report (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 2.00 Date 30-Apr-2020 27-Jul-2020 04-Dec-2020 31-Oct-2022 Supporting Domestic Resource Mobilization IN00941598 ►Reduction of national tax instruments (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 29.00 13.00 13.00 15.00 Date 30-Jun-2017 24-Jun-2020 04-Dec-2020 31-Oct-2022 Achieved and exceeded. This indicator has been fully met ahead of the project closing date. The number of tax instruments have been reduced from 29 to 13 with the adoption of the New Tax Code in late Comments: December 2018. The end target is 15 by October 2022. On this indicator the project has exceeded target. IN00941601 ►Full automation of cross checking of taxpayer returns for VAT and customs declarations (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No Yes Yes Yes Date 30-Jun-2017 24-Jun-2020 04-Dec-2020 31-Oct-2022 This indicator is among the DLI met during the first quarter 2018. It has been confirmed by the Verification Comments: firm. 1/28/2021 Page 5 of 8 The World Bank Implementation Status & Results Report Togo Economic Governance Project (P158078) IN00941604 ►OTR operational staff are qualified and deployed for field audits (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 6.00 23.00 23.00 15.00 Date 30-Jun-2017 24-Jun-2020 04-Dec-2020 31-Oct-2022 This indicator is among the DLI met during the first quarter 2018. It has been confirmed by the Verification Comments: firm. IN00941606 ►Reduced length of time to address taxpayer requests (Days, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 12.00 12.00 12.00 6.00 Date 30-Jun-2017 24-Jun-2020 04-Dec-2020 31-Oct-2022 This indicator will be available as soon as OTR has completed the Client Satisfaction Survey by Comments: December 2020. Increasing Public Accountability and Citizen Engagement IN00941599 ►Introduction of citizen report cards to provide MDAs with citizen feedback on quality and access of service delivery for maternal and child health, primary education, and urban water supply (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 6.00 Date 30-Jun-2017 24-Jun-2020 04-Dec-2020 31-Oct-2022 The Selection process of the Consulting Firm in charge of setting the baseline has been launched. Data Comments: will be available by the end of December 2020. IN00941602 ►Publication of citizens national budget (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No Yes Yes Yes Date 30-Jun-2017 24-Jun-2020 04-Dec-2020 31-Oct-2022 The first edition of the Citizen Budget was developed and published in 2020 on the website of the SP- PRPF and the MEF. The 2021 Citizen Budget is being finalized and will be made available to the public in Comments: the same websites. IN00941605 ►Government and CSO staff trained in new accountability, citizens engagement mechanisms and PFM (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 606.00 606.00 400.00 1/28/2021 Page 6 of 8 The World Bank Implementation Status & Results Report Togo Economic Governance Project (P158078) Date 30-Jun-2017 24-Jun-2020 04-Dec-2020 31-Oct-2022 The project has exceed the intermediate target of 400. Since the project effectiveness, 606 people Comments: including 96 women have been trained on PFM, accountability and citizens engagement mechanisms. IN00941607 Percentage of Women trained in new accountability, citizens engagement mechanisms and PFM (Percentage, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 16.00 16.00 20.00 Performance-Based Conditions Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P158078 IDA-D2340 Effective USD 15.00 15.00 0.00 7.37 7.84 48% P158078 TF-A8463 Effective USD 4.50 4.50 0.00 0.46 4.04 10% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P158078 IDA-D2340 Effective 03-Oct-2017 21-Dec-2017 20-Apr-2018 31-Oct-2022 31-Oct-2022 P158078 TF-A8463 Effective 04-Sep-2018 12-Apr-2019 12-Apr-2019 31-Oct-2022 31-Oct-2022 Cumulative Disbursements 1/28/2021 Page 7 of 8 The World Bank Implementation Status & Results Report Togo Economic Governance Project (P158078) PBC Disbursement Achievement Disbursed amount in Disbursement % PBC ID PBC Type Description Coc PBC Amount Status Coc for PBC Restructuring History Level 2 Approved on 03-Aug-2020 ,Level Approved on 01-Sep-2020 Related Project(s) There are no related projects. 1/28/2021 Page 8 of 8