The World Bank Report No: ISR13271 Implementation Status & Results Kyrgyz Republic Governance Technical Assistance Project (P071063) Public Disclosure Copy Operation Name: Governance Technical Assistance Project (P071063) Project Stage: Implementation Seq.No: 21 Status: ARCHIVED Archive Date: 07-Jan-2014 Country: Kyrgyz Republic Approval FY: 2003 Product Line: IBRD/IDA Region: EUROPE AND CENTRAL ASIA Lending Instrument: Technical Assistance Loan Implementing Agency(ies): Key Dates Board Approval Date 15-May-2003 Original Closing Date 31-Dec-2008 Planned Mid Term Review Date 23-Feb-2009 Last Archived ISR Date 13-Nov-2013 Effectiveness Date 28-Aug-2003 Revised Closing Date 31-Dec-2013 Actual Mid Term Review Date 18-Jun-2008 Project Development Objectives Project Development Objective (from Project Appraisal Document) The objectives of the Project are to strengthen the Borrower#s institutional capacity to implement the measures under the Program outlined in the GSAC Program Document and to assist with the Treasury modernization. Has the Project Development Objective been changed since Board Approval of the Project? Yes No Component(s) Component Name Component Cost 1. TECHNICAL ASSISTANCE TO SUPPORT IMPLEMENTATION OF REFORMS INCLUDED IN 1.59 GSAC: (I) IMPROVE TRANSPARENCY AND STRENGTHEN 2. MODERNIZATION OF THE TREASURY 2.33 3. PROJECT MANAGEMENT 0.55 Overall Ratings Public Disclosure Copy Previous Rating Current Rating Progress towards achievement of PDO Moderately Unsatisfactory Moderately Unsatisfactory Overall Implementation Progress (IP) Moderately Unsatisfactory Moderately Unsatisfactory Overall Risk Rating High Implementation Status Overview This is the last ISR for the GTAC project, now in its 11th year and closing on December 31, 2013. Originally designed to provide support for reforms under a Development Policy Operation (DPO), the Governance Structural Adjustment Credit (GSAC), the project had two substantive components and a project management component. Activities under the first component, Technical Assistance to Support Reforms Under GSAC, largely ended by the fifth year of the project. The second component, Treasury Modernization, was intended to finance increased automation of key elements of financial management, treasury operations and payroll and personnel management. Automation of budget preparation Page 1 of 7 The World Bank Report No: ISR13271 also became a third element of automation. These three automation elements collectively were to be part of the implementation of a Financial Management Information System (FMIS). The first component of the program supported a variety of human resource management, and administrative reforms as well as reforms to increase transparency in the use of public funds. A significant emphasis was on professionalizing management of the civil service and increasing the meritocratic elements of the public sector workforce. Accomplishments Public Disclosure Copy include support to the establishment of a civil service agency, the State Personnel Service (SPS), an increase in the placement of senior officials based on competitive merit-based processes, and financial disclosure of senior public officials. This component has yielded outcomes that have proved to be sustainable since project support ended. The core of the second component was the acquisition and implementation of the FMIS referenced above. This component proved to be problematic from its origins as evidenced by the fact that a tender for acquisition of the system did not occur until four years into the project. The first tender was canceled due to the fact that prices offered by acceptable bidders exceeded the budget, a re-tender occurred and a contract was not signed until almost six years after the project started, well after the originally scheduled closing date. Post contract implementation of the system proved to be equally troubled. Significant disagreements between the Government and its FMIS vendor about required functionality of the three components resulted in lengthy delays and changes in leadership on both sides occurred since contract signing. On the Government side, there were multiple changes in the position of Project Director, the key position of Director of the Treasury, and changes in the position of Minister. On the vendor side, there were multiple changes in project management staff with frequent turnover in local staff and key project management, developer, and senior management positions. In the beginning of 2013, a detailed action plan was developed and agreed by both the Government and its vendor outlining necessary steps for full implementation. Despite an improved focus by all parties on making progress on the plan, slippage occurred and key events did not take place as the project closing date approached. The Government notified the Bank on December 16 that it had elected to cancel the credit amount of the project that has not been disbursed, approximately $2.5 million and the Bank agreed to this request. Accordingly, the amount of funding allocated to the treasury modernization component was reduced by more than 50%. Locations Country First Administrative Division Location Planned Actual Kyrgyz Republic Bishkek Gorod Bishkek ✔ Results Project Development Objective Indicators Indicator Name Core Unit of Measure Baseline Current End Target Public perception re transparency, Text Value No baseline surveys Improvements in public responsiveness and integrity of public sector as conducted. The relevant FH attitudes shown through measured by annual surveys. indexes for 2004 were: surveys (0=weakest; 7=strongest): Anticorruption and Transparency -2.34; Public Disclosure Copy Accountability and Public Voice-1.8 Date 30-Jun-2003 01-Mar-2013 31-Dec-2013 Comments No survey was conducted under the project Improved access, reliability and timeliness of Text Value Budget reports fragmented Comprehensive summary information about budget execution, to public and not widely available. budget reports made publicly officials and civil society. available within 6 months of budget. execution. Page 2 of 7 The World Bank Report No: ISR13271 Date 30-Jun-2003 12-Dec-2011 28-Dec-2012 Comments Percentage of private firms participating in Text Value Not available There has been no systematic 100 percent Public Disclosure Copy public procurement collection of this data and no apparent legal mandate to do so. Date 30-Jun-2003 20-Dec-2013 31-Dec-2013 Comments The available MOF capacity There has been no systematic and the legal mandate do not collection of this data and no provide for collection of such apparent legal mandate to do information so. Percentage of "Main" and "Lead" civil servants Text Value Not available, as (i) the old Generally civil service Competition process recruited on competitive basis. version of the civil service law formally complies with improved and most senior didn’t require mandatory requirement of competitive civil servants recruited on a competitive process for selection. competitive basis. recruitments, and (ii) there was no monitoring of this indicator in 2004. Date 30-Jun-2003 20-Dec-2013 31-Dec-2013 Comments Generally civil service Generally civil service formally complies with formally complies with requirement of competitive requirement of competitive selection. selection. Increased predictability in budget allocations Text Value None established in project None established in project None established in project for health and education documents. documents. documents. Date 01-Mar-2013 31-Dec-2013 Comments In general, variability between In general, variability between the enacted budget and the the enacted budget and the final actual budget has final actual budget has decreased but the decreased but the Government continues to Government continues to Public Disclosure Copy adjustthe budget with some adjustthe budget with some regularity and the regularity and the Government still adjusts the Government still adjusts the budget post factum. budget post factum. Intermediate Results Indicators Page 3 of 7 The World Bank Report No: ISR13271 Indicator Name Core Unit of Measure Baseline Current End Target Percentage of required declarations of high Text Value No declarations or provision All high state officials present All high state officials present state officials published annually. for declarations and publish declarations. and publish declarations. Public Disclosure Copy Date 30-Jun-2003 20-Dec-2013 31-Dec-2013 Comments Both Parliament candidates Both Parliament candidates and civil servants required to and civil servants required to file income and asset file income and asset declarations for themselves declarations for themselves and their families. Number of and their families. Number of declarations of high state declarations of high state officials in compliance with officials in compliance with Declaration and Publication Declaration and Publication rules and published annually rules and published annually had reached to 99% by 2008. had reached to 99% by 2008. Number of draft laws and regulations Text Value No draft laws discussed Most significant laws and Most significant laws and discussed with the private sector and civil regulations discussed with regulations discussed with society, prior to their adoption. private sector and civil society private sector and civil society prior to adoption prior to adoption Date 30-Jun-2003 20-Dec-2013 31-Dec-2013 Comments The MOJ website makes The MOJ website makes virtually all draft legislation virtually all draft legislation available for any party to available for any party to review. MoF has been review. MoF has been holding budget hearings holding budget hearings andheld its first hearing andheld its first hearing outside of Bishkek in 2013. outside of Bishkek in 2013. Coverage, quality and timeliness of audit Text Value Reports of COA confined to Improved quality of audit Improved quality of audit reports of Chamber of Accounts (CoA). compliance with regulations reports, including particularly reports, including particularly on the annual budget. on the annual budget. Date 30-Jun-2003 20-Dec-2013 31-Dec-2013 Comments Results of CoA Audit reports Results of CoA Audit reports are widely discussed and are widely discussed and Public Disclosure Copy referenced in the mass referenced in the mass media. The reports are mostly media. The reports are mostly related to legality, not related to legality, not effectiveness or efficiency of effectiveness or efficiency of the use of public funds. the use of public funds. Increased usefulness of the budget as a Text Value Budget poorly presented. Transparent budget prepared Transparent budget prepared strategic policy instrument, as a result of Allocations managed on a on basis of medium term on basis of medium term improvements in its formulation process, monthly basis according to framework. Revisions to framework. Revisions to content and presentation. cash availability. budget take place through budget take place through Page 4 of 7 The World Bank Report No: ISR13271 due process and not on basis due process and not on basis of cash available to Treasury of cash available to Treasury Date 30-Jun-2003 20-Dec-2013 31-Dec-2013 Public Disclosure Copy Comments The budget is made available The budget is made available to the general public via web to the general public via web and budget execution reports and budget execution reports are also posted on the web. are also posted on the web. MTBF information is only MTBF information is only recently included as recently included as supplementary information to supplementary information to the annual budget and linkage the annual budget and linkage between the MTBF and the between the MTBF and the annual budget is extremely annual budget is extremely weak. weak. Government Public Information Center (GPIC) Text Value No GPIC Center fully established and Center fully established and established and functioning. significant number of users significant number of users from the general public. from the general public. Date 30-Jun-2003 20-Dec-2013 31-Dec-2013 Comments The Government PIC was The Government PIC was established and initially had a established and initially had a very active outreach program very active outreach program and high activity. With and high activity. With greater access and greater access and awareness of the web, this awareness of the web, this mode of accessing mode of accessing information has overtaken the information has overtaken the GIT as a primary source of GIT as a primary source of information. information. Access to legal database of the Ministry of Text Value No legal database Regular use of database by Regular use of database by Justice available to the public on line. general public. general public. Date 30-Jun-2003 20-Dec-2013 31-Dec-2013 Comments Web-based database Web-based database Public Disclosure Copy available for all Internet users. available for all Internet users. Kyrgyzstandard reorganized to separate Text Value Kyrgyzstandard carries out Regulatory and enforcement Regulatory and enforcement regulatory and enforcement functions. both regulatory and functions fully separated. functions fully separated. enforcement functions Date 30-Jun-2003 20-Dec-2013 31-Dec-2013 Comments No information available No information available. Independent Civil Service Agency established Text Value No CSA Agency fully operational and Agency fully operational and and operational. managing recruitment, managing recruitment, promotion and training of Civil promotion and training of Civil Servants. Servants. Page 5 of 7 The World Bank Report No: ISR13271 Date 30-Jun-2003 20-Dec-2013 31-Dec-2013 Comments SPS established as the GoK SPS established as the GoK civil service agency and civil service agency and Public Disclosure Copy operates as an independent operates as an independent agency of Government. SPS agency of Government. SPS is fully operational and is is fully operational and is actively managing reforms in actively managing reforms in civil service to further civil service to further demarcate between political demarcate between political and professional positions and professional positions and to reform the wage and to reform the wage structure to be more structure to be more meritocratic. meritocratic. Computerized Treasury System implemented. Text Value Treasury largely manual New Treasury system fully New Treasury system fully system functional. functional. Date 30-Jun-2003 20-Dec-2013 31-Dec-2013 Comments The project supported partial The project supported partial automation as an interim automation as an interim solution but the full FMIS that solution but the full FMIS that meets international standards meets international standards is not in place as of the end of is not in place as of the end of the project. the project. Data on Financial Performance (as of 18-Dec-2013) Financial Agreement(s) Key Dates Project Ln/Cr/Tf Status Approval Date Signing Date Effectiveness Date Original Closing Date Revised Closing Date P071063 IDA-37570 Effective 15-May-2003 28-May-2003 28-Aug-2003 31-Dec-2008 31-Dec-2013 Disbursements (in Millions) Project Ln/Cr/Tf Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P071063 IDA-37570 Effective XDR 5.80 4.18 1.62 4.14 0.04 99.00 Public Disclosure Copy Disbursement Graph Page 6 of 7 The World Bank Report No: ISR13271 Public Disclosure Copy Key Decisions Regarding Implementation The Government notified the Bank on December 16 that it had elected to cancel the credit amount of the project that has not been disbursed, approximately $2.5 million and the Bank agreed to this request. Accordingly, the amount of funding allocated to the treasury modernization component was reduced by more than 50%. Restructuring History There has been no restructuring to date., Level two Approved on 20-Dec-2010, Level two Approved on 14-Feb-2011, Level two Approved on 28-Dec-2012, Level 2 CD Decision on 18-Dec-2013 Related Projects There are no related projects. Public Disclosure Copy Page 7 of 7