Document of The World Bank FOR OFFICIAL USE ONLY Report No: ICR00004466 IMPLEMENTATION COMPLETION AND RESULTS REPORT IBRD8008 ON A LOAN IN THE AMOUNT OF US$30 MILLION TO THE ARGENTINE PROVINCE OF LA RIOJA FOR A PUBLIC SECTOR STRENGTHENING PROGRAM - APL1 ( P121836 ) June 22, 2018 [This ICRR replaces the version published in the Board Operations System on June 22, 2018. Annex 3 – Project cost by component has been updated] Governance Global Practice Latin America And Caribbean Region CURRENCY EQUIVALENTS (Exchange Rate Effective April 3, 2018) Currency Unit = AR$ 20.183 = US$1 FISCAL YEAR January 1 - December 31 ABBREVIATIONS AND ACRONYMS APL Adaptable Program Loan CPI Consumer Price Index CPS Country Partnership Strategy DGC General Directorate of Cadastre (Dirección General de Catastro) DGIP General Office of Provincial Taxes (Dirección General de Ingresos Provinciales) DLI Disbursement-linked Indicator EEP Eligible Expenditure Program Financial Management Information System (Sistema Integrado De Información e-SIDIF Financiera) FM Financial Management ICR Implementation Completion and Results Report ICT Information and Communication Technology IPALaR Provincial Institute of Water (Instituto Provincial del Agua La Rioja) M&E Monitoring and Evaluation MTR Midterm Review NPV Net Present Value OPSPQ Operations Policy & Quality PAD Project Appraisal Document PCU Project Coordination Unit PDO Project Development Objective PIDP Provincial Integrated Development Plan PPU Procurement Policy Unit SDG Sustainable Development Goal SEA Sector Environment Assessment SESA Strategic Environmental and Social Assessment SWAp Sectorwide Approach TA Technical Assistance TTL Task Team Leader UGAS Environmental and Social Management Unit (Unidad de Gestión Ambiental y Social) WUA Water User Association Regional Vice President: Jorge Familiar Calderon Country Director: Jesko S. Hentschel Senior Global Practice Director: Deborah L. Wetzel Practice Manager: Robert R. Taliercio Task Team Leader(s): Daniela Veronica Felcman ICR Main Contributor: Silvana Kostenbaum TABLE OF CONTENTS DATA SHEET .......................................................................................................................... 1 I. PROJECT CONTEXT AND DEVELOPMENT OBJECTIVES ....................................................... 6 A. CONTEXT AT APPRAISAL .........................................................................................................6 B. SIGNIFICANT CHANGES DURING IMPLEMENTATION (IF APPLICABLE) ..................................... 12 II. OUTCOME .................................................................................................................... 14 A. RELEVANCE OF PDOs ............................................................................................................ 14 B. ACHIEVEMENT OF PDOs (EFFICACY) ...................................................................................... 14 C. EFFICIENCY ........................................................................................................................... 19 D. JUSTIFICATION OF OVERALL OUTCOME RATING .................................................................... 21 E. OTHER OUTCOMES AND IMPACTS (IF ANY) ............................................................................ 21 III. KEY FACTORS THAT AFFECTED IMPLEMENTATION AND OUTCOME ................................ 22 A. KEY FACTORS DURING PREPARATION ................................................................................... 22 B. KEY FACTORS DURING IMPLEMENTATION ............................................................................. 23 IV. BANK PERFORMANCE, COMPLIANCE ISSUES, AND RISK TO DEVELOPMENT OUTCOME .. 24 A. QUALITY OF MONITORING AND EVALUATION (M&E) ............................................................ 24 B. ENVIRONMENTAL, SOCIAL, AND FIDUCIARY COMPLIANCE ..................................................... 25 C. BANK PERFORMANCE ........................................................................................................... 26 D. RISK TO DEVELOPMENT OUTCOME ....................................................................................... 27 V. LESSONS AND RECOMMENDATIONS ............................................................................. 29 ANNEX 1. RESULTS FRAMEWORK AND KEY OUTPUTS ........................................................... 32 ANNEX 2. BANK LENDING AND IMPLEMENTATION SUPPORT/SUPERVISION ......................... 48 ANNEX 3. PROJECT COST BY COMPONENT ........................................................................... 51 ANNEX 4. EFFICIENCY ANALYSIS ........................................................................................... 52 ANNEX 5. BORROWER, CO-FINANCIER AND OTHER PARTNER/STAKEHOLDER COMMENTS ... 57 ANNEX 6. SUPPORTING DOCUMENTS .................................................................................. 67 The World Bank Public Sector Strengthening Program - APL1 (P121836) DATA SHEET BASIC INFORMATION Product Information Project ID Project Name P121836 Public Sector Strengthening Program - APL1 Country Financing Instrument Argentina Investment Project Financing Original EA Category Revised EA Category Partial Assessment (B) Partial Assessment (B) Organizations Borrower Implementing Agency Ministry of Finance La Rioja Ministry of Finance La Rioja Project Development Objective (PDO) Original PDO The objective is to improve the public sector ability to contribute to the econo mic and social development of the Province of La Rioja. Revised PDO The objective is to improve the public sector ability to contribute to the economic and social development of the Province of La Rioja. PDO as stated in the legal agreement The Project Development Objective of the Public Sector Strengthening APL1 is to increase tax collection and improve expenditure quality, and to pilot improvements in public service delivery in the area of rural water management Page 1 of 68 The World Bank Public Sector Strengthening Program - APL1 (P121836) FINANCING Original Amount (US$) Revised Amount (US$) Actual Disbursed (US$) World Bank Financing 30,000,000 30,000,000 27,277,579 IBRD-80080 Total 30,000,000 30,000,000 27,277,579 Non-World Bank Financing Borrower 0 0 0 Total 0 0 0 Total Project Cost 30,000,000 30,000,000 27,277,579 KEY DATES Approval Effectiveness MTR Review Original Closing Actual Closing 22-Feb-2011 01-Aug-2011 26-May-2014 28-Feb-2016 31-Dec-2017 RESTRUCTURING AND/OR ADDITIONAL FINANCING Date(s) Amount Disbursed (US$M) Key Revisions 20-Jun-2012 9.00 Change in Results Framework Change in Institutional Arrangements Other Change(s) 05-Dec-2014 20.65 Change in Results Framework Change in Institutional Arrangements 07-Aug-2015 21.75 Change in Results Framework Change in Loan Closing Date(s) Change in Institutional Arrangements Change in Implementation Schedule KEY RATINGS Outcome Bank Performance M&E Quality Satisfactory Satisfactory Substantial Page 2 of 68 The World Bank Public Sector Strengthening Program - APL1 (P121836) RATINGS OF PROJECT PERFORMANCE IN ISRs Actual No. Date ISR Archived DO Rating IP Rating Disbursements (US$M) 01 11-Jul-2011 Satisfactory Satisfactory 0 02 23-Jan-2012 Satisfactory Satisfactory 6.08 03 25-Jun-2012 Satisfactory Satisfactory 9.08 04 01-Jan-2013 Satisfactory Moderately Satisfactory 12.08 05 08-Jul-2013 Satisfactory Moderately Satisfactory 18.11 06 07-Jan-2014 Moderately Satisfactory Moderately Satisfactory 19.12 07 08-Jul-2014 Moderately Satisfactory Moderately Satisfactory 19.72 08 21-Jan-2015 Moderately Satisfactory Moderately Satisfactory 20.72 09 09-Jul-2015 Moderately Satisfactory Moderately Satisfactory 21.83 10 09-Dec-2015 Moderately Satisfactory Moderately Satisfactory 21.83 11 14-Jun-2016 Moderately Satisfactory Satisfactory 23.31 12 15-Dec-2016 Moderately Satisfactory Satisfactory 24.05 13 08-Jun-2017 Moderately Satisfactory Satisfactory 24.50 SECTORS AND THEMES Sectors Major Sector/Sector (%) Public Administration 32 Sub-National Government 32 Information and Communications Technologies 3 Public Administration - Information and 1 Communications Technologies ICT Services 1 Other Information and Communications Technologies 1 Page 3 of 68 The World Bank Public Sector Strengthening Program - APL1 (P121836) Financial Sector 33 Public Administration - Financial Sector 33 Water, Sanitation and Waste Management 32 Public Administration - Water, Sanitation and Waste 32 Management Themes Major Theme/ Theme (Level 2)/ Theme (Level 3) (%) Economic Policy 17 Fiscal Policy 17 Tax policy 17 Finance 5 Finance for Development 5 Agriculture Finance 5 Public Sector Management 51 Public Finance Management 34 Public Expenditure Management 17 Domestic Revenue Administration 17 Public Administration 17 Transparency, Accountability and Good 17 Governance Urban and Rural Development 5 Rural Development 5 Rural Markets 5 Environment and Natural Resource Management 23 Water Resource Management 23 Water Institutions, Policies and Reform 23 Page 4 of 68 The World Bank Public Sector Strengthening Program - APL1 (P121836) ADM STAFF Role At Approval At ICR Regional Vice President: Pamela Cox Jorge Familiar Calderon Country Director: Penelope J. Brook Jesko S. Hentschel Senior Global Practice Director: Deborah L. Wetzel Practice Manager: Veronica E. Zavala Lombardi Robert R. Taliercio Alexandre Arrobbio, Norbert Task Team Leader(s): Daniela Veronica Felcman Matthias Fiess ICR Contributing Author: Silvana Kostenbaum Page 5 of 68 The World Bank Public Sector Strengthening Program - APL1 (P121836) I. PROJECT CONTEXT AND DEVELOPMENT OBJECTIVES A. CONTEXT AT APPRAISAL Context 1. After recovering from a severe economic and social crisis in 2001–2002, Argentina’s economy was growing at a solid pace. The figures available at the time of appraisal showed that the province of La Rioja was growing slightly below the national rate, with an average growth rate of 7 percent for 2003 –2009, compared to the country’s 7.4 percent for the same period. La Rioja, the country’s fourth smallest province in population, sits in an arid region where the combined share of the agricultural and the agro- industrial sectors was about 12 percent of the provincial gross domestic product at the time. Therefore, efficient water management (for irrigation and drinking purposes) was key, particularly in rural areas. However, as identified by the sector diagnostic carried out during preparation, public service delivery in rural water management remained weak and intermittent, mainly due to deficiencies in planning, budgeting, and the management of water system and resources. Furthermore, the regulation of irrigation districts was inadequate and technical support to agricultural producers was poorly coordinated. These deficiencies not only reduced the profitability of agricultural enterprises but also hindered the satisfaction of basic human and environmental needs. As reflected in the 2009–2013 Provincial Integrated Development Plan (PIDP), the Provincial Government of La Rioja identified the need for public sector reform to improve public service delivery in water—a sector that is visible and with clear economic links. 2. A few diagnostics carried out at project design identified low capacity for tax collection and effective public services delivery as significant public management challenges. La Rioja generated less than 6 percent of its total revenue locally, below the national provincial average of 17 percent. The low tax collection (about 2.8 percent of provincial gross regional product, compared to a provincial average of 4 percent) was identified to be largely due to inefficiencies in tax administration. Low property tax collection, which had virtually stagnated since 2006, was mainly the result of outdated valuation and problems with the cadastre and property tax register. Ineffective tax enforcement and low recovery of tax arrears further contributed to a total stock of outstanding tax debt of AR$54 million (about US$13.5 million) in 2009. Broadening the tax base and reforming the tax administration were expected to generate a sustainable financial platform for the Government’s key development priorities. 3. Shortcomings in budgeting and public procurement were identified as constraints for expenditure effectiveness. Although an effective budget process existed and the structure of the public administration was comparable to other provinces of similar size, existing rigidities, lack of cost-effectiveness, and limited predictability of the budget process did not allow for effective planning and allocation of resources. Poor public management was hindering impact of public services in priority areas such as rural water management. Likewise, there was an opportunity to improve efficiency of the outdated provincial public procurement system, which contracted up to US$55 million annually at the time. 4. In this context, the Government of La Rioja requested World Bank support to address, in parallel, reforms to tax administration, budgeting, and procurement in the ‘back office’ of the Government, which could enable visible improvements in public service delivery. Given its high and visible impact, public water resource management was selected as a pilot to improve public service delivery. This approach was Page 6 of 68 The World Bank Public Sector Strengthening Program - APL1 (P121836) consistent with the objectives of the World Bank Country Partnership Strategy (CPS) for 2010–2012,1 which included a pillar on improved governance, with specific outcomes that seek to (a) strengthen the effectiveness, efficiency, transparency, and accountability of public sector management and (b) expand performance management, improve the quality of public expenditure, and enhance service delivery and trust in institutions. In this regard, the project was designed as the first in a series of two operations under an Adaptable Program Loan (APL). As designed, the program development objective for the Public Sector Strengthening APL, as a whole, was to strengthen the institutions of the provincial public administration to promote effective and sustainable delivery of essential public services for human and productive development, in alignment with Development Objective 7 of the PIDP. 5. The project was also consistent with the National Government’s priority to support provinces with greater needs, in particular the Norte Grande region. At the time of appraisal, the Government’s strategy was to support various provinces with World Bank operations, and San Juan and La Rioja were selected as the initial cases. Theory of Change (Results Chain) 6. The project design combined cross-cutting horizontal interventions in public administration with a focus on a specific sector that would generate the political capital to guarantee the sustainability of the reform. Reforms in the area of tax administration were expected to create fiscal space,2 while outcomes brought by pilot interventions to improve access and management in a high visibility sector such as rural water were expected to increase political support for fundamental but less obvious back-office cross- cutting public sector reforms, such as strategic sector planning and procurement plans, regulations and institutional frameworks, and standards for service agreed. 7. The rationale behind the above argument was based on a political economy analysis of previous public sector reform operations, which indicated that cross-cutting public sector reforms would be most sustainable if combined with visible improvements in service delivery, as such improvements can generate the necessary political capital and support from citizens. Improvements in service delivery are significantly more tangible than horizontal public sector reforms. This is particularly the case if such improvements are a priority for citizens’ welfare (that is, efficient water resource management in an arid environment) and easy to comprehend by the general public (that is, better irrigation and access to drinking water). This rationale was translated into a theory of change, which outlined project activities, outputs, and outcomes, and is represented in table 1. 1 World Bank. 2009. Argentine - Country Partnership Strategy for the Period 2010–2012. Report No. 48476-AR. Washington, DC: World Bank. https://hubs.worldbank.org/docs/imagebank/pages/docprofile.aspx?nodeid=10624564. 2 Analysis carried out at preparation identified potential increases in tax collection through the updating of the provincial property tax and the recovery of tax arrears. This is elaborated in section II.B. Page 7 of 68 The World Bank Public Sector Strengthening Program - APL1 (P121836) Table 1. Theory of Change Activities Outputs PDOs/Outcomes Long-term Outcomesa • Human resources • Updated urban Increased tax collection improvements cadastre • Increased local tax (incentives’ program, • Increased tax arrears revenue personnel regulations, processed for collection • Improved tax creation of a fiscal or sent to court enforcement and intelligence area)b • Improved taxpayer’s investigation capacities • Organizational changes registry • Provision of services to (delegation of tax taxpayers enhanced enforcement powers to the General Directorate for provincial revenues) • Updating the property registry database • Urban cadastral census • Tax moratorium campaign Effectiveness, efficiency, • Training transparency, and • Definition of budgeting • Programmatic budget Improved expenditure accountability of public programs for the entire structure with effective quality sector management provincial physical and financial • Improved strategic strengthened administration indicators introduced allocation process of • Introduction of • Improved strategic and public resources Performance performance indicators operative planning (Higher share of management expanded • Strengthening of staff • Improved M&E in the budgeted projects and quality of public capacities in budgeting use of public resources which are drawn from expenditure improved and planning • Procurement the provincial • Introduction of framework development plan) monitoring and implemented • Improved budget evaluation (M&E) (compliance with the predictability functions and unit new law and (increased share of • Adoption of an updated regulation) budgeted primary procurement legal • Procurement capacities expenditures executed) framework and processes • Improved performance • Creation of a strengthened management procurement policy • Improved planning and • Improved efficiency and unit (PPU) monitoring of transparency in the • Professionalization of procurement execution of procurable public procurement • Public procurement expenditures (increased staff system proportion of • Procurement efficiency competitive bidding in study at least 2 secretariats) Page 8 of 68 The World Bank Public Sector Strengthening Program - APL1 (P121836) Activities Outputs PDOs/Outcomes Long-term Outcomesa • Consolidation process • Increased farmers’ Improvements in public Performance for WUAs to improve capacities on service delivery piloted management expanded quality and management and in the area of rural water and quality of public sustainability of techniques related to management expenditure improved irrigation and drainage access to water • Increased efficiency in services: • Improved WUAs’ the management of Service delivery and trust o WUAs’ regulatory regulatory status and collectively managed in institutions enhanced status review compliance irrigation schemes o Update of users’ • Improved monitoring of (reduced time elapsed Enhancement of registry usage between irrigation resilience of agricultural o Water use efficiency • Improvements of turns) sector to climate change assessment irrigation and drainage • Increased cost recovery and climate variability o Water delivery systems (reduction of (increase of irrigation schedule intervals between fee and rate of fee rearrangement irrigation turns and collection) o Recalculation of increase of water flows • Increased number of water use fees available) households in remote • Sensitization of users • Increased supervision areas with access to a on water resource of water distribution drinking water system management issues processes • Increased access to • Training to farmers on • Improved water usage sectoral investments water management fee determination and • Provincial Water Plan collection mechanisms. • Improvement plan of • Improved strategic small-scale supply planning for water network resource management Note: WUA = Water User Association. a. CPS results areas/indicators at approval. b. Technical assistance (TA) product defined at implementation. Project Development Objectives (PDOs) 8. As stated in the Legal Agreement, the objective of the project (APL1) was to increase tax collection and improve expenditure quality and pilot improvements in public service delivery in the area of rural water management.34 3 The first loan (APL1) was intended to be implemented over five years (2011–2016). It would focus on introducing fundamental cross-cutting public sector functions and support public service delivery in water management in rural areas. The second loan (APL2) was projected for US$50 million and planned to be implemented between 2014 and 2019. APL2 would seek to deepen the public sector cross-cutting reforms initiated with APL1 and extend their impact to public service delivery within agriculture and other sectors related to human and productive development that will be determined by the provincial government. The follow- up operation (APL2) was not pursued as agreed by the World Bank and the borrower due to change in priorities. Accordingly, this Implementation Completion and Results Report (ICR) assesses completion and results against the PDO of APL1. 4 The Data Sheet shows the PDO of the entire program, instead of the APL1 which is the one being evaluated in this ICR. Changes in the Data Sheet were not possible at ICR stage. Page 9 of 68 The World Bank Public Sector Strengthening Program - APL1 (P121836) Key Expected Outcomes and Outcome Indicators 9. The PDO can be unpacked into three objectives to be measured through five key PDO indicators. Refer to annex 1 (Results Framework) for more details on outcomes and indicators. The project’s objectives are described in table 2. Table 2. PDOs and Associated Indicators Objectives Key PDO indicators 1) “To increase tax collection… 1) Increased local tax revenue 2). …and improve expenditure quality 2) Increased share of budgeted primary expenditures executed 3) Higher share of budgeted projects which are drawn from the provincial development plan 4) Increased proportion of competitive bidding in at least 2 secretariats 3) …and to pilot improvements in public service 5) Increased efficiency in the management of delivery in the area of rural water management.” irrigation water supply systems Components 10. The project consisted of two complementary components. Component 1. Implementation of the Eligible Expenditure Programs5 (US$24 million) 11. This component was directed to support the implementation of the Eligible Expenditure Programs (EEPs). It was to disburse against EEPs in three areas: Tax Administration Improvement, Quality of Expenditure, and Service Delivery in Rural Water Management. This component followed a sectorwide approach (SWAp) modality and disbursements were linked to the achievement of agreed disbursement- linked indicators (DLIs) and the execution of at least 70 percent of the budgeted EEPs. (a) Tax Administration Improvement Program. This program is designed to strengthen the provincial tax administration through increased tax collection. This Government Program covers two subprograms: (i) modernization of tax collection system and (ii) updating of the provincial cadastre. (b) Quality of Expenditure Program. This program aims to increase the quality and efficiency of public expenditures and focuses on two areas: budgeting and public procurement. This Government Program addresses the need to improve the quality of expenditure to ensure strategic allocation of resources and effective and transparent execution of procurable expenditures. Specifically, it supports the implementation of two main reforms: (i) Introduction of Fundamentals for Performance-oriented Budgeting. This includes strengthening of program budgeting, introduction of performance indicators, links between budget and planning, strengthening of line ministries’ staff capacities in budgeting, and introduction of M&E function. 5 Name of this component as appears in Loan Agreement and PAD Page 10 of 68 The World Bank Public Sector Strengthening Program - APL1 (P121836) (ii) Public Procurement Reform. This includes adoption of a legal framework, establishment of a public PPU, implementation of a public procurement system, and professionalization of public procurement staff. (c) Rural Water Management Program. This program aims to improve irrigation management, improve access to drinking water, and design a medium-term environmentally sustainable water strategy. The program includes the following activities: the expansion of water supply systems and distribution networks, the transfer of the responsibility of system maintenance to WUAs, and the training of WUAs in the maintenance of water supply systems and distribution networks.6 It also includes the conduct of a Sector Environment Assessment (SEA) that was to inform provincial public policy, the private sector, and civil society on sustainable long-term water resource planning and management for production and human activities. Component 2. Technical Assistance (US$5.25 million) 12. This component supported the achievement of the Government reform programs in the project sectors. Specifically, this component was directed to: (a) Support the modernization of the borrower’s tax administration function and related institutions through, among others, supporting improvements on (i) the quality of the borrower’s taxpayer registry; (ii) organizational changes resulting in reductions in tax arrears and improvements on tax collection; (iii) the carrying out of tax audits; (iv) the borrower’s tax enforcement capacities by carrying out an evaluation of legal and regulatory alternatives thereto; and (v) the borrower’s capacity to update its urban cadastre through, among others, the provision of training and the purchase of Global Positioning System equipment, satellite images, and information technology equipment. (b) Support the improvement of the borrower’s quality and efficiency of expenditure programs through, among others, (i) the introduction of performance-informed budgeting through the strengthening of the borrower’s program budgeting, the introduction of performance indicators, the creation of links between budget and planning, the strengthening of the borrower’s staff capacities in budgeting, the introduction of M&E functions, and support to the design of pilot sector strategies and (ii) carrying out a reform of the borrower’s public procurement function through the provision of assistance in the design of legal and regulatory frameworks related to public procurement, the establishment of a PPU, the implementation of a public procurement system, provision of assistance in training, and professionalization of public procurement staff. (c) Support the development of a strategy to improve management of and access to water resources by dispersed rural population through, among others, (i) the preparation of a sectoral environmental assessment, (ii) institutional strengthening of WUAs and rural development secretariats, including the strengthening of the provincial water institute, (iii) improvement of integrated water management in rural areas, and (iv) preparation of strategic plans for water resource management and strengthening of extension and TA services. 6 LaRioja has about 45 WUAs and most of them, under the supervision and guidance of the Provincial Institute of Water (Instituto Provincial del Agua La Rioja, IPALaR), are involved in irrigation management. Low capacity and low compliance with irrigation regulations contribute to inefficient and unsustainable water resource use. Page 11 of 68 The World Bank Public Sector Strengthening Program - APL1 (P121836) 13. Additionally, this component supported overall project coordination and supervision and was directed to strengthen effectiveness and quality of project operation through the (a) strengthening of the institutional, operational, and implementation capacity of the Project Coordination Unit (PCU); (b) provision of TA and staff training to the PCU (on financial management [FM], procurement, and M&E of project activities); (c) carrying out of studies on the project sectors supported by the project and related consultancies; (d) M&E review; and (e) carrying out of annual project external audits. 14. At approval, the total project cost was estimated at US$30 million financed by IBRD. See annex 3 for detailed (estimated and actual) project costs by component. No components were revised during project implementation. B. SIGNIFICANT CHANGES DURING IMPLEMENTATION (IF APPLICABLE) Project Restructuring 15. The project was restructured three times. Table 3 summarizes the main changes and rationale for restructuring Table 3. Summary of Revisions Under Project Restructurings Section Revisions Rationale for Change June 20, 2012 – Level II Restructuring Results Intermediate result indicator targets Initial targets were surpassed by year 1. As such, it Framework related to tax administration policy was agreed to adjust the targets upward to align area them with the more ambitious ones established by the borrower’s General Office of Provincial Taxes (Dirección General de Ingresos Provinciales, DGIP) Institutional Budget codes of EEPs To reflect the institutional changes related to the arrangements new IPALaR, which replaced the Secretariat of Water as of January 1, 2012 Other Provincial budget allocation for two EEPs: • “Maintenance and operation of At preparation, the budget allocation in Schedule 4 the hydraulic infrastructure” - of the loan agreement included expenditures not EEP 720.37.00 (to be changed to eligible for financing, therefore increasing the 703.18.00), proposed allocation amount incorrectly. change from US$1.375 million to US$0.867 million per semester • “Strengthening of the budget Budget allocation in Schedule 4 of the loan system”- EEP 300.20.02, agreement was erroneously recorded, as it was proposed allocation change from calculated in Argentine pesos rather than in U.S. US$0.2845 million to US$0.071 dollar equivalent million per semester December 19, 2014 – Level II Restructuring The second restructuring was approved by the World Bank in December 2014 following the midterm review (MTR) on the project to (a) revise some indicators and milestones defined in the Results Framework to better align them with the timeline for implementation and scope of activities and (b) adjust the codes of EEPs to reflect jurisdictional changes related to the General Directorate of the Cadastre’s institutional dependency as of March 2014. However, this was not fully processed with no amendments to the Legal Agreement due to new Page 12 of 68 The World Bank Public Sector Strengthening Program - APL1 (P121836) Section Revisions Rationale for Change restructuring needs that emerged shortly before the amendments could be countersigned. The third restructuring (discussed in the next row) restated changes introduced in this second restructuring, approved on December 19, 2014, by the Country Director, to establish a single reference point for all revisions made after the project’s MTR. August 7, 2015 – Level II Restructuring Change in loan Extend closing date from February The full implementation of the TA was expected to closing date(s) 28, 2016, to December 31, 2017, (22 exceed the project’s original closing date (February months) 2016). In addition, the Government of La Rioja agreed with the National Treasury to adopt the national financial management information system (Sistema Integrado De Información Financiera, e- SIDIF) tool, in 2015. The deployment of the e-SIDIF delayed the implementation of the program budgeting approach. Therefore, the restructuring rationale that extended the project was to align the World Bank’s program to the Government’s initiative to support e-SIDIF’s rollout during 2015, ensure that the TA would provide supervision and support to the Government for the duration of the contract (to be completed in January 2017), and institutionalize the reform agenda through the political transition that would begin in December 2015. Results Realign the indicators and original To reflect the delays in hiring the TA firm (delayed by Framework milestones within the Results 2.5 years from projected start date in Project Framework Appraisal Document [PAD]) and the two-year delay in the enactment of the procurement law that was expected to be adopted by late 2011, as indicated in the PAD Institutional Adjust the codes of the EEPs To reflect jurisdictional changes related to the arrangements Directorate of the Cadastre’s institutional dependency Implementation Implementation schedule was schedule revised Disbursement Amendment to Schedule 5 of the To reflect the new project time line estimates loan agreement and Disbursement Letter Revised Components Not applicable. Other Changes 16. The Government and the World Bank agreed not to pursue phase 2 of APL. Rationale for Changes and Their Implication on the Original Theory of Change Not applicable. Page 13 of 68 The World Bank Public Sector Strengthening Program - APL1 (P121836) II. OUTCOME A. RELEVANCE OF PDOs Assessment of Relevance of PDOs and Rating Substantial 17. The objective of the program remains relevant to the Government and the World Bank engagement strategy. The current CPS for the FY15–18 recognizes governance as a cross-cutting theme of the overall engagement. 18. All areas of the project are still relevant in the CPS and are included as priorities for the program with Argentina. First, the CPS highlights the need to have a more comprehensive development approach with respect to public sector management and stresses the need for increased efficiency and transparency in public spending. It also refers to the need to increase efforts to reduce tax avoidance. In addition, it highlights the need to strengthen public sector service delivery at the provincial level, recognizing that subnational governments are responsible for the delivery of key basic services, including water. Finally, specific CPS targets for portfolio governance indicators include implementation of initiatives directed to improve transparency in public procurement. 19. Moreover, the results-based financing approach of this project is still a relevant instrument and aligned with the current engagement priorities. The CPS regards linking disbursement to results as a mechanism that “strengthens governance and accountability and contributes to developing a public sector culture that rewards performance.” 20. The objectives of the loan are also consistent with the National Government’s engagement with provinces, including La Rioja. First, the National Government recently signed a Fiscal Pact with provincial governments to contain public spending and increase local revenue collection. 7 Second, actions to update cross-cutting public management information systems, such as procurement or budgeting systems, are a central component of the National Modernization Plan.8 B. ACHIEVEMENT OF PDOs (EFFICACY) 7 Long-standing disputes over transfers between the National Government and the provinces were settled in a Fiscal Pact of November 2017. Provinces agreed to freeze current public expenditures in real terms and to decrease the burden of the highly distortive provincial turnover taxes. Ratification of the Fiscal Pact by the province of La Rioja was signed on January 29, 2018 (Law 10,056/2018). 8 The National Ministry of Modernization approved the State Modernization Plan (Decree 434/2016) in March 2016. Its objectives span five axes: Technology and Digital Government, Integrated Management of Human Resources, Results-based Management and Public Commitments, Open Government and Public Innovation, and a Digital Country Strategy. Its goal is to improve the quality and accessibility of Government administrative services as well as increase transparency. A Federal Council of Modernization and Innovation in Public Management (COFEMOD) was also created within this initiative to expand such innovations to subnational governments. La Rioja signed an agreement to join this initiative in April 2016. Page 14 of 68 The World Bank Public Sector Strengthening Program - APL1 (P121836) Assessment of Achievement of Each Objective/Outcome Substantial Justification of Overall Efficacy Rating 21. The program substantially achieved its development objectives. The program contributed to increasing provincial tax collection and improving expenditure quality and public service delivery in the area of rural water management. Reforms promoted by the project paved the way to improve how policies are planned, designed, and executed in line ministries, with the introduction of concepts and methodologies related to performance management that were new to provincial public officials. In addition, because of this project, the provincial administration is now generating data for decision making (that is, program budgeting, cadastre updates, procurement information, and performance indicators, among others). Activities under the project also promoted new ways of communication and coordination among the different sectors. 22. Starting from a low point in terms of public management performance, the project significantly contributed to elevating the quality of the public administration in La Rioja, including the management of a scarce and critical resource such as rural water, and helped close the gap with other provinces. Because of the reforms supported with the project, La Rioja is now able to implement innovative e-government platforms that the National Government is promoting through the recently launched National Modernization Plan. For example, the information now being generated as a result of the implementation of the e-SIDIF and the new budget structure is compatible and can take advantage of the new e-filing system and dashboards for planning and monitoring strategic goals that are supported and deployed under the National Modernization Plan. PDO 1: Increased tax collection - Substantial 23. The project achieved the PDO of increased tax collection. The target values for tax collection were overachieved even when original targets were adjusted to reflect the high inflation levels manifested during the life of the project (local tax revenue increased from AR$159 million in 2011 to AR$1,645 million in 2017, overachieving the end-project target of AR$782 million and AR$993 million when adjusted for inflation). Figure 1 shows original milestones adjusted using the variation in consumer price index (CPI)9 for every year, which illustrates that targets for local tax collection adjusted for inflation were overachieved in the last three years of the project. Moreover, during 2012–2017, the collection of own revenues increased from 6 percent to 10 percent as a percentage of total provincial revenues (which includes local revenues, plus discretional and automatic transfers from the National Government).10 While direct attribution of increased tax revenues is challenging, it is likely that the performance of the gross income tax was largely a response to the efforts directed to improve tax collection and strengthen 9 This ICR uses the official CPI for San Luis province and an index acceptable to the World Bank as a reference for that period in Argentina. Also, the consumer price basket of the San Luis index reflects the consumption pattern in La Rioja more accurately than other subnational indexes, such as the one from the City of Buenos Aires. In addition, the CPI published by the National Congress is used for comparison. Such an index is calculated using several price indexes including some elaborated by private consulting firms. No significant differences were found (see figure 1). 10 It is important to highlight that transfers from the National Government were relatively constant during the life of the project. Non-automatic (discretional) transfers were around 18 to 22 percent of total provincial revenues and automatic transfers around 65 percent to 68 percent of total provincial revenues. Source: La Rioja Ministry of Finance. Page 15 of 68 The World Bank Public Sector Strengthening Program - APL1 (P121836) enforcement capacities and tax compliance (described in the next paragraph) This is represented by a marked increase in tax revenue from 2014 onward in figure 1, corresponding to the same year the province started implementation of such efforts. Figure 1. Local Tax Collection Compared with Target Values (original and inflation-adjusted), 2011–2017 Local tax collection compared with target values (original, revised and inflation-adjusted) La Rioja Province 2,000,000,000 1,500,000,000 1,000,000,000 500,000,000 - 2011 2012 2013 2014 2015 2016 2017 Original targets values in nominal terms Revised target values in nominal terms Revised target values adjusted for inflation (CPI San Luis) Revised target values adjusted for inflation (CPI National Congress) Actual tax collection values Source: DGIP, La Rioja and San Luis Consumer Price Index. (http://admin.estadistica.sanluis.gov.ar/estadisticaasp/Paginas/Pagina.asp?PaginaId=76. 24. Progress in this area included improving tax enforcement and investigation capacities and enhancing the provision of services to taxpayers, in particular: (a) improved strategic planning in the DGIP; (b) improved tax records and enforcement mechanisms (that is, updating and filtering by unique id which allows to identify and monitor taxpayers’ compliance with all tax obligations);11 (c) expansion of payment points and the introduction of an electronic payment system to facilitate tax compliance; (d) strengthened tax audit functions and capacities with the hiring and training of specialized auditors and the expansion of territorial presence, as well as the introduction of fiscal intelligence methodologies; (e) increased means of communication with taxpayers with the introduction of a complaints channel on the DGIP website; and (f) increased tax enforcement powers of the DGIP (that is, powers were delegated to the DGIP to act as a judge in monitoring the determination processes ex officio, provision of compensation between debits and tax credits not only for the same taxpayer but also among different taxpayers, at the time of its regulation). These improvements resulted in an increased number of tax arrears accounts in excess of AR$5,000 processed for collection, from 0 in 2011 to 53,405 at project closing. In addition, pending tax arrears cases sent to court increased from 0 in 2011 to 1,220 in 2017, and integral audits for gross income tax increased from 0 in 2011 to 1,359 in 2017. 11DGIP Resolution 4 of 2015 established that taxpayers needed to cancel or regularize any tax debt before being able to get access to any of the DGIP administrative proceedings or certifications. Page 16 of 68 The World Bank Public Sector Strengthening Program - APL1 (P121836) 25. Regarding property tax administration, the main improvements include extending the tax base and the updating of property values. Improved coordination and exchange of information between the General Directorate of Cadastre (Dirección General de Catastro, DGC), the DGIP, and the property registry resulted in an improved registry and an increase in the number of records. From 2011 to 2017, a total of 101,807 parcels were updated and integrated into the urban cadaster, significantly overachieving the target value of 21,000. The updating of property valuations was delayed for political economy reasons during the life of the project; however, the province made important progress in 2017 with the passing of an updated Cadastre Law, which allows for annual updating of real estate property valuations to incrementally close the gap with market prices. While property valuation rates had not been updated since 1972, the newly introduced formula will prevent future lags in property values. The updated legal framework is expected to allow for an increased share of property tax in the provincial revenues in the next few years (so far, the impact on tax collection is negligible as the provincial government opted for a gradual strategy to increase property tax collection).12 Notably, the weight of the property tax in the province’s overall own revenue decreased from 3 percent to 2 percent during 2010–2017, as other taxes increased proportionally more. 26. With the introduction of the abovementioned changes, the cadastre has become an efficient instrument to take stock of the land and support a more focused property tax, which can lead to having a more progressive tax approach in the province. In the economic cadastre, the DGC gathered additional support with the hiring of information technology specialists. Activities related to the economic cadastre resulted in the inclusion of over 100,000 parcels in the urban cadastre, by being identified in the 2012 Urban Census, updated because of having a greater surface area or a change of state from vacant to built. In addition, innovations were included in the administration of the cadastre such as the verification of parcel’s status as registered in the system, development of the map of land values and improvement , zoning of the City of La Rioja and simulation of categories’ improvement, determination of the methods of fiscal valuation of land and the improvement of urban plots of the province, and debugging of the cadastre database in relation to data inconsistency of plots and blocks. 27. In the physical cadastre, the available human resources were expanded to the cadastre with the hiring and training of systems analysts and surveyors. This allowed for the digitalization of plans and parcel files (to date the scanning of 80 percent of the plans and 50 percent of the parcel files has been achieved); the creation of the cadastre website, which allows for the display of survey plans and consultation of the cadastre alphanumeric database; improvement in the quality of the land surveying area through the updating of survey files and procedures generally initiated in the cadastre; and the link with the database of the Real Estate Property Registry with which the update of 1,302 holders of parcels has been achieved. In addition, the implementation of the internal file management system has been initiated to increase efficiency of processes carried out by the DGC. 28. To ensure the sustainability of improvements to date, the province plans to continue the implementation of the new fiscal valuations of urban parcels throughout the territory beyond the capital 12Provincial Law 10.054/2017 established a coefficient in the range from 0.12 percent to 0.5 percent depending on the zone to be applicable as the updated tax in 2018. Provincial estimations indicate a potential increase in property tax collection from AR$28 million in 2017 to AR$43 million in 2018, AR$48 million in 2019, and AR$54 million in 2020. Such estimations assume no change in the tax rate. They also assume an impact in the valuation of only 6 percent of taxable properties, which correspond to the ones with higher value. Page 17 of 68 The World Bank Public Sector Strengthening Program - APL1 (P121836) city and extend interoperability in real time with third parties, including municipalities, provincial state bodies, and interior delegations with the aim of keeping the cadastre data updated. PDO 2: Improve expenditure quality - Modest 29. The province made progress toward improving budget predictability and significant work was done toward the implementation of mechanisms to enable performance-based budgeting. Such work included the implementation of program budgeting in the entire provincial administration with effective physical and financial indicators, the strengthening of strategic and operative planning in lines ministries, and the strengthening of M&E in the use of public resources. Achievements were complemented with the implementation of an upgraded integrated e-SIDIF in 2015. The new system supports a budget structure based on the programs and allows tracking financial and physical milestones, two critical functionalities for the implementation of the new budgeting methodology. Efforts in this area allowed the Government to meet targets related to PDO indicator #2 for the most part of the project. However, since 2016 targets for such indicator were not achieved due to the introduction of fiscal tightening measures, which set restrictions on the execution of primary expenditures. 30. The province also made progress toward improving processes for the strategic allocation of public resources. Important milestones were achieved regarding the articulation between budgeting and planning processes. During the last year of the program, 25 out of the 35 financial units of the provincial administration received support to carry out strategic and operative planning, and 10 of those plans have been incorporated in the 2018 Budget Law approved by the Congress, which represents 34 percent of total budget expenses.13 While the milestone to have a PIDP which fed into the budget formulation process was not achieved, by project closing the Government was finalizing the PIDP for the new administration and it is expected that such a document will provide inputs for the upcoming budget exercises. In addition, the Planning Directorate is working closely with the National Council for Coordination of Social Policies toward articulating the provincial priorities with the Government of Argentina’s Sustainable Development Goals (SDGs) to align provincial priorities with the National SDGs approach. This exercise is expected to increase relevance and strengthen capacities for strategic planning in the province. 31. Regarding the procurement component, important progress was made toward improving efficiency and transparency in the execution of procurable expenditures. This included the adoption of a public procurement legal framework, the adoption of secondary legislation, a manual of operations and standard bidding documents,14 and the creation and staffing of a Regulatory Body (creation of the Procurement General Directorate under the Ministry of Finance) and of a Training and Accreditation System,15 with 80 agents and officials trained and accredited in programs covering all key aspects related to the public procurement framework and processes. In addition, a Procurement Information System was developed and rolled out in 2014. The system, https://compras.larioja.gov.ar/, contains information on current regulations, process flowcharts, a providers’ registry (with an online preregistration tool), and provides centralized procurement information for decision making and transparency. In 2016 and 2017, a procurement audit was carried out to verify compliance with the new procurement law (the audit 13 2018 Provincial Budget Law (10,027). 14 Law No. 9.341—General Contracting Regime—regulated by Decree F.E.P. No. 2350/13; and Resolution of Ministry of Finance No. 298/14, Flowcharts and Standardized Bidding Documents. 15 Decree F.E.P. Nº 1342/12. Page 18 of 68 The World Bank Public Sector Strengthening Program - APL1 (P121836) covered institutions with the highest participation in provincial expenditures). Finally, a study was done to identify a strategy for the rationalization of procurement in La Rioja and propose concrete alternatives to achieve potential savings (quick gains) in Government expenses. One area in which further work will be required is the implementation of planning and monitoring mechanisms for public procurement in the provincial public administration. PDO 3: Pilot improvements in public service delivery in the area of rural water management - Substantial 32. Significant progress can be observed toward increasing efficiency in the management of small- scale irrigation schemes,16 with the improvement of irrigation and drainage services. Such improvements include 24 additional WUAs which reduced the time elapsed between irrigation turns from 30 to 15 days, resulting in an increase of water flow available. Improvements in governance and administration of water resources include increases in water fee collection (at project closing, 28 WUAs had increased by at least 20 percent their number of users paying fees, even if the WUAs are still far from achieving operations and maintenance cost recovery),17 increased compliance with irrigation regulations, and increased number of farmers who were trained on management techniques related to access to water (a total of 4,145 farmers at project closing). Regarding facilitating access to water supply to remote rural areas, achievements include increased drinking water provision in rural populations with higher percentage of unmet needs (reaching 1,282 households at project closing). These interventions are now part of the IPALaR’s strategic plan and have specific financial resources from the organization’s budget, which ensures its sustainability and complements the revenues generated by the fees collected from water users. In addition, the province’s capacities to access sectoral investments were increased with the elaboration of the first Provincial Water Plan. The plan includes a diagnostic of the sector in the province, main short-term actions to improve the management of water, a strategy for increasing awareness of the scarcity of the resource and how best to use it, and an assessment of the normative aspects needed to improve the long-term framework in the La Rioja water sector, among other topics. 33. Social and environmental management improvements were achieved in the area of rural water management, with the creation of the Environmental and Social Management Unit (Unidad de Gestión Ambiental y Social, UGAS) in IPALaR, the elaboration of a legal and normative framework (Regulation of Law 8871) and a Water Code. Additionally, a Strategic Environmental and Social Assessment (SESA) exercise was carried out for the sector. The SESA process involved stakeholder analysis, identification of priorities, and surveying of existing policies with respect to the effect of environmental and socioeconomic issues on water resource management. C. EFFICIENCY Assessment of Efficiency and Rating Substantial 34. The project’s efficiency is as one would expect for a World Bank project in public sector reforms, in service standards, financial terms, and rate of return. For this section, the analysis is divided into two 16 Activities under the project involved a total of 28 WUAs, which represent approximately 12,000 water users. 17 Fee collection currently covers around 30 percent of WUAs’ operational costs. Page 19 of 68 The World Bank Public Sector Strengthening Program - APL1 (P121836) parts. In the first section, a summary of the financial analysis carried out both ex ante and ex post analysis is presented. In the second section, additional efficiency considerations are revised for the ICR. Summary of Economic and Financial Analysis 35. See annex 4 for complete analysis. 36. At appraisal, only a financial analysis of the tax administration subcomponent was carried out. The PAD presented a financial analysis of TA costs and gains from increased tax collection directly related to the activities under the project. The net present value (NPV) gains for tax administration reform were estimated at AR$43.8 million for 2011–2015. 37. For the ICR, an ex post financial analysis of the tax subcomponent cost was carried out. To report the actual costs, a comprehensive approach was taken to account both for external and internal resources used in the tax administration reform. The actual tax collected from the three project activities considered at appraisal (updated parcels, tax arrears processed, and audits conducted) was reported and adjusted for inflation using the CPI for the San Luis province. 38. To compare the ex post NPV, two methods were used. The project is financially sound for a range of discount rates. The ex-post financial analysis substantiates the financial soundness of the tax administration reform. 39. Method 1. The NPV gains were calculated for the actual costs and actual tax collected adjusted for inflation, using the same 5 percent discount rate used at appraisal. An ex post NPV gain of AR$339 million compares favorably to the AR$43.8 million estimated at appraisal. 40. Method 2. Alternatively, the NPV was calculated for the actual cost and benefits, deflating the amount of tax collection (in 2011 AR$) and using a real interest rate for the discount rate. The actual NPV gains for tax administration are calculated at AR$ 539.6 million for 2011–2017, which compares favorably to the AR$ 43 million at appraisal. Other Efficiency Considerations 41. Aspects of design and implementation. The design of the financing instrument aligned the incentives by keeping the TA focused on the Government EEPs and DLIs which helped ensure that physical implementation, results, and disbursements were moving in tandem. At design, it was decided to have a limited number of sizeable contracts for all TA activities (which amounted to 12.6 percent of the loan) as a procurement risk mitigation measure, and the hiring of the TA firm was consolidated into a single contract (see Procurement Plan in table A.3.7 of the PAD, contract number 3).18 This was intended to add to the likelihood of achievements of results by attracting larger consulting firms that have greater capacity to deliver. However, drafting of the terms of reference took longer than expected, resulting in a delay of the bidding process and the initiation of the TA firm of 2.5 years from projected starting date in the PAD. In addition, the market for such type of services (TA in four different public sector management areas plus water resource management) was small and only one proposal was received. The limited competition 18The measure was to have a limited number of sizeable contracts directed to mitigate the potential lack of implementation capacity for World Bank-executed projects as well as misprocurement, fraud, and corruption risks, according to the PAD. Page 20 of 68 The World Bank Public Sector Strengthening Program - APL1 (P121836) possibly resulted in a higher price of the contract. On the other hand, the advantage of having all TA activities under the same umbrella of services facilitated contract management and reduced transaction costs. In addition, it ensured cross-collaboration between areas, alignment, and on-time delivery of products. The TA products were completed and accepted before the new closing date of the project. Support from the World Bank staff was crucial to compensate for the absence of the TA firm in the first 2.5 years and advance with implementation (the World Bank task team provided technical support for targeted and priority activities to help keep implementation going), which eventually led to good results. The activities were completed and there were no cost overruns. 42. TTL turnover. The project was managed efficiently. While there were four task team leader (TTL) changes, the core team was consistent. Transitions were smooth and they did not slow down implementation or disbursements. 43. Efficient use of funds. No instance of corruption or misuse of funds was reported. 44. Additional financing or loan cancellations. There was no additional financing. Undisbursed funds of USD2.7 million were cancelled following Loan closure. D. JUSTIFICATION OF OVERALL OUTCOME RATING Satisfactory 45. Based on the efficacy of the project to achieve the proposed PDO (Substantial), its relevance (Substantial), and efficiency (Substantial), the ICR assesses the overall outcome as Satisfactory. E. OTHER OUTCOMES AND IMPACTS (IF ANY) Gender Not applicable. Institutional Strengthening 46. Most of the achievements and outcomes described in the earlier section were realized through the strengthening of processes and capacities in the institutions involved in the efforts directed to improve provincial public management and rural water management. Such efforts reached main project beneficiaries (that is, tax, budgeting, procurement, and water agencies) as well as institutions that participated as pilots. For example, the budget reform (going from a line-item budget system to a program budget structure) engaged 42 of the 43 provincial agencies and implied a process of reformulating the way in which such agencies understood their role in contributing to and enhancing provincial development and planned and formulated their budget to improve the delivery of services to citizens. The procurement, legal, and IT reforms and the PIDP are also examples of new institutional frameworks which cover the entire provincial administration. Another example can be found in the process of IPALaR’s consolidation as an institution with the mandate to oversee water resource management and the institutionalization of processes to address social and environmental issues (that is, the creation of the UGAS and the issuance of various regulations). Finally, the improvements in tax administration and Page 21 of 68 The World Bank Public Sector Strengthening Program - APL1 (P121836) cadastre registration have generated impacts both at the level of public servants and in the way the taxpayers interact with the Government. Mobilizing Private Sector Financing Not applicable. Poverty Reduction and Shared Prosperity 47. As mentioned earlier, at project closing, an additional 1,182 households in remote areas gained access to drinking water. Households with unsatisfied basic needs were prioritized by IPALaR for these new connections.19 Besides the impacts in terms of quality of living conditions, and potentially health, this may have also generated savings because households previously depended on the delivery of bottled water for drinking purposes. Other Unintended Outcomes and Impacts 48. The project facilitated improvements in establishing a provincial Environmental and Social Management Framework beyond the project duration. III. KEY FACTORS THAT AFFECTED IMPLEMENTATION AND OUTCOME A. KEY FACTORS DURING PREPARATION 49. The project was prepared in close collaboration with provincial authorities and the design and selection of the financing instrument was appropriate in providing incentives and a road map for advancing government reforms. The project took advantage of the possibilities of the SWAp/DLI modality. First, the project supported high priority government programs (that is, in the areas of tax administration, quality of public expenditure, and rural water management). Second, there was a clear definition of objectives and expected results across the provincial public administration and in the sector. Finally, the Government and World Bank teams worked on having a clear identification of Government EEPs and of results indicators and protocols for M&E to help monitor progress and align incentives during implementation. 50. The project ensured solid inter-sectoral coordination from the Government’s side to guarantee adequate implementation of activities and monitor progress of indicators. For that reason, a specific PCU was established at the Ministry of Finance. During preparation, fiduciary and institutional capacities of the PCU, with a special focus on country systems, were strengthened. This paved the way in facilitating implementation amidst challenges (as discussed in section III.B. ‘Key Factors During Implementation’) and a sustained focus on results which were critical for a DLI-type of operation. 19For example, formerly excluded areas such as Potrero Grande, an indigenous community in the Andes Mountain foothills, are now accessing this service. Page 22 of 68 The World Bank Public Sector Strengthening Program - APL1 (P121836) 51. Lessons learned from other operations that anchored service delivery on improvements in public sector management were taken into account in project design and contributed to the project’s success. The World Bank had accumulated considerable experience with public sector reforms at the subnational level in the form of SWAp operations in Brazil and the Argentine province of San Juan, which combined cross-cutting interventions in public administration with expected improvements in service delivery in specific sectors, including health, education, and water. B. KEY FACTORS DURING IMPLEMENTATION 52. Factors related to the political economy and country context. The target values for tax collection were expressed in nominal terms due to credibility issues of official statistics at the time. Higher-than- expected inflation rates positively affected local tax collection and targets were achieved as soon as the loan became effective. As a consequence, targets related to tax collection were adjusted upward through a project restructuring (as discussed in section I.B.) but kept at nominal terms. Still, such targets were overachieved at exit (both in nominal and real terms), and ex post financial analysis confirmed the financial soundness of the tax administration reform. On the other hand, the updating of the Cadastre Law and of the defined quotas for property taxes were delayed until 2017 for political economy reasons, and the expected impact of the reforms on property tax did not materialize. However, the combined effect of the new regulation with the signing of the Fiscal Pact in 2017 (discussed in section II.B.) is expected to facilitate and contribute to increased tax collection in the coming years. Finally, the two-year delay in the enactment of the provincial procurement law also affected the related activities. While the proposed law was in line with international standards, its discussion in the provincial legislative took longer than anticipated. However, implementation of related activities accelerated and, at exit, the public procurement portal is in place, along with the institutional framework, as well as regulations and certifications for public officials in charge. 53. Factors related to change in administration. The elections in 2015 slightly affected implementation, with a temporary deviation of attention during the campaign and a stall in decisions regarding sensitive reforms (that is, property tax reform described earlier). The incumbent party of La Rioja province was reelected and, despite the change in governor, reform priorities and main project counterparts remained the same (in particular for tax administration and quality of expenditure subcomponents). However, the head of the water authority, IPALaR, and most of his team changed, delaying implementation of project activities due to the transition. New authorities were also appointed at the Planning Directorate in the newly created Ministry of Planning and Industry, with a renewed mandate to prioritize planning in the province, in line with project objectives. These challenges were overcome and did not affect the desired outcomes. 54. Factors related to implementation capacity. The decision to award a single contract to a firm for the provision of TA was a procurement capacity risk mitigation measure (see discussion in section II.C.). While the contract was fully executed with good results in most areas, as reflected in section II.B., this decision posed a few challenges at implementation. First, the preparation of the terms of reference and request for proposals took longer than expected and, while the procurement process was competitive, Page 23 of 68 The World Bank Public Sector Strengthening Program - APL1 (P121836) only one proposal was received.20 Such delays affected achievement in a number of results that were contingent on it (that is, improvements in strategic planning and planning in procurement, program budgeting, upgrading of the cadastre, and improving WUAs’ capacities). In addition, once the work of the TA firm started in April 2015, technical quality and involvement with the different areas was uneven. Contract management was also challenging as it required coordination with the various units for the follow-up and approval of the TA work. However, such challenges were successfully overcome. As mentioned before, close collaboration and direct World Bank technical support were essential throughout the first 2.5 years of project implementation to compensate for the absence of the TA firm. In addition, all products of the TA were presented and accepted. In retrospect, the decision of bundling all activities under one contract was positive, despite the abovementioned challenges, as it minimized transaction efforts by the PCU, ensured that reforms in all areas were implemented in parallel (and one was not prioritized over the other), and promoted coordination among the different areas supported by the project. 55. Challenges were also experienced for the procurement of information and communication technology (ICT). The delays in deciding the ICT strategy and drafting the technical specifications and request for proposals brought the process close to the end of the project and many products were not available to be delivered on time. However, this did not compromise achievement of overall outcomes. 56. Other factors that affected implementation. The project also experienced delays due to the implementation of e-SIDIF (the financial management information system for the provincial governments provided by the federal government) in the entire provincial administration, which created additional workload for Government officials. Because of the e-SIDIF rollout, the introduction of a programmatic budget structure with concrete indicators was delayed by one year (to 2016) and was one of the factors for the closing date extension. However, this rollout was effective and at project closing, in December 2017, the Government had been using the system for two consecutive budget cycles. 57. Mitigation measures for the fiduciary, capacity, and safeguards risks identified at appraisal were effectively implemented. IV. BANK PERFORMANCE, COMPLIANCE ISSUES, AND RISK TO DEVELOPMENT OUTCOME A. QUALITY OF MONITORING AND EVALUATION (M&E) M&E Design 58. The theory of change was clear and adequately reflected by indicators. The PDO-level indicator chosen for improved tax administration (increased tax collection, measured in nominal terms) could have been better defined at design (that is, expressed in real terms); however, the context at appraisal did not allow for this (see paragraph 53). Strong intermediate indicators served as proxies to measure increased 20The short list (expression of interest) included six international and national firms and universities; however, despite the PCU’s efforts to disseminate the call for proposals, only one proposal was received. During the evaluation, such a proposal was considered to meet the required technical and financial qualifications. Page 24 of 68 The World Bank Public Sector Strengthening Program - APL1 (P121836) capacity for tax administration and compliance and for recording real property, which are preconditions for increased provincial tax collection. Therefore, this was not a considerable shortcoming. 59. For all other areas, PDO-level and intermediate results indicators captured activities and outputs properly for all three PDOs. Furthermore, the Results Framework included DLIs in all areas of the project to promote greater focus on results as well as the importance of tracking outcomes/outputs from project implementation and creating incentives to advance reforms in the sectors. Loan disbursements required compliance with annual performance targets agreed with the Ministry of Finance for certain indicators. The Government ownership of the Results Framework was high for design and responsibility for M&E was housed in the PCU. In addition, the Results Framework proved to be relevant for the entire life of the project. While the project was restructured twice, there were no major changes to the nature and scope of indicators. M&E Implementation 60. The M&E framework was consistently implemented. The Ministry of Finance diligently implemented and reported on indicators, assigning dedicated staff for this purpose. Indicators reporting and evidence were readily available at supervision missions. Data were found to be reliable and of good quality, although calculations related to the fiscal cycle were reported with some delays. M&E Utilization 61. The M&E framework was used by the Government to monitor compliance with commitments under the project and as an instrument to guide the dialogue with the different institutions involved in the project, in particular for tracking the achievement of DLIs. Achievement of DLIs was used as carrots for budget release to the EEPs. Justification of Overall Rating of Quality of M&E Substantial 62. There was only one shortcoming on M&E (that is, the indicator for improved tax administration) and this was significantly overcome and its achievement well evidenced. The Government and the World Bank team’s proactivity contributed to strengthen the M&E framework at implementation. Ownership, relevance, and effective use of the Results Framework during the entire life of the project was substantial and that facilitated achievement of desired outcomes. In addition, the Results Framework included ambitious and overarching PDO indicators and milestones directed to show the impact of the reform in the entire provincial administration. The Results Framework was a key instrument for both tracking progress and generating incentives for advancing the reforms in all areas involved in the project. B. ENVIRONMENTAL, SOCIAL, AND FIDUCIARY COMPLIANCE 63. Environmental and social compliance. The World Bank’s monitoring of social safeguards was continuous and systematic from 2011 to closing. The safeguards approach was revised early on to optimize its application in relation to the characteristics of a SWAp operation. A ‘systemic’ approach based on the enhancement of the client's own systems replaced a conventional ‘transactional’ approach. The Government and World Bank worked together to establish the Environmental and Social Management Page 25 of 68 The World Bank Public Sector Strengthening Program - APL1 (P121836) Framework to accurately reflect the final scope of the project and complete the analysis of the clients’ own legislations, systems, and current practices. In this line, the Government and the World Bank carried out a workshop to guide technical discussions related to a SESA prepared by the Project Implementation Unit as part of the project's safeguards action plan. The workshop involved main stakeholders linked the sectoral assessment process, including IPALaR and the provincial environmental agency, among others. Overall, social safeguards performance and compliance was Moderately Satisfactory. 64. Financial management. Project FM performance has been reviewed periodically by the project FM specialist in accordance with the assessed FM risk. The FM performance rating has been consistently Satisfactory throughout the entire implementation period. FM arrangements were generally in compliance with the World Bank requirements with timely reporting. Unqualified audited financial statements were consistently received by the World Bank on time. Interim financial reports were received with minor delays throughout the life of the project and were always found to be acceptable. The final audit report for the project was received on time and some clarification is currently awaited from the Project Implementation Unit in the Ministry of Finance. 65. Procurement. Acceptable Procurement Plans were submitted to the World Bank and properly implemented afterward. The procurement procedures and standard bidding documents, as well as models of contracts for works, goods, consulting, and non-consulting services procured were included in the Operational Manual and properly used by the borrower. Initially, there were some delays in the selection of a firm to carry out the TA; however, the contract was finally implemented successfully. C. BANK PERFORMANCE Quality at Entry Satisfactory 66. The World Bank’s performance in ensuring quality at entry was Satisfactory. The project proposed a clear theory of change supported by a Results Framework that served as a road map to advance the proposed reforms. The project design was realistic and adequate to the province capacities and built on lessons learned from other projects. It included important milestones for reform programs, in which the World Bank had considerable technical expertise. In addition, the TA component focused on supporting the achievement of such milestones. Moreover, the selection of the financing instrument was suitable and, later, was instrumental to channel incentives for the advancement of the prioritized reforms. Finally, the World Bank’s team anticipated all the risks and identified mitigating measures correctly. Quality of Supervision Satisfactory 67. The World Bank conducted frequent supervision missions (about 15) over the life of the program with all key World Bank team members, plus several just-in-time technical missions to review specific issues that needed particular attention. Interactions also included regular follow-up calls and informal communications when necessary. The dialogue between the Government and the World Bank was fluent at all times. Although the project had four TTLs and two co-TTLs, changes were properly coordinated and did not compromise implementation support at any time. Since July 2012 until project closing in Page 26 of 68 The World Bank Public Sector Strengthening Program - APL1 (P121836) December 2017, there was continuity of the task and technical team (the last TTL was part of the team, in-charge of the quality of expenditure component, from early on and provided continuity). 68. The achievements of the program can be significantly attributed to the continuous presence of the World Bank team and dialogue with Government officials. The ongoing dialogue focused on ensuring results and helping the Government progress consistently with activities and achievement of targets. These interventions were successful in identifying concerns, issues, and challenges during implementation and helping the PCU resolve them (for example, in the case of the 2.5 years of delay in hiring the TA firm). The World Bank team’s contributions also focused on promoting coordination among the involved areas and, at times, on arbitrating with the National Government. Justification of Overall Rating of Bank Performance Satisfactory 69. The World Bank’s overall performance is Satisfactory due to its close involvement during the preparation and implementation of the reform program supported and the proactivity to overcome issues that emerged during implementation and avoid delay in the reform process. The World Bank’s engagement and support under this project was widely recognized by the provincial authorities. The authorities also pointed to the critical role of the World Bank’s oversight and analytical perspective. The Government and World Bank teams developed an effective partnership to push reforms forward. According to the Government officials who were interviewed, this engagement improved the quality of technical discussions within the areas of the Government and the instruments available to manage and make decisions. D. RISK TO DEVELOPMENT OUTCOME Substantial 70. The achievements of the PDOs are likely to be maintained for most of the areas. 71. The integration between the cadastre, which now has 100 percent of digital coverage in the urban areas of the province and the tax registry system significantly improves the way tax information is managed. With the improvements achieved, updates in the cadastre are automatically mirrored in the tax registry system and the identification of taxpayers’ duties is more effective. These achievements are very unlikely to be reversed. 72. Sustainability for budgeting and procurement systems is very strong. At the budgetary level, e- SIDIF manages the transactions for the whole provincial administration and the Budget Office continues the dialogue with the Ministry of Treasury at the national level so that the Government of La Rioja can incorporate physical registry of operations as well (and not just financial). The only way this could be reversed is if the National Government decides to move to a different financial management information system, which is highly unlikely. For the e-procurement portal, this seems to be adequately institutionalized, and for the Procurement Office it is to be consolidated. These achievements will be difficult to reverse. Both the portal and the vendor’s database are also widely used by all areas in the administration. One area that has not been consolidated is planning in procurement, despite efforts made during the project, and it will require extra efforts to increase capacities to advance such a topic. Page 27 of 68 The World Bank Public Sector Strengthening Program - APL1 (P121836) 73. Regarding IPALaR, improvements in the institutionalization of the agency allow for better management of water resources. Processes have been defined, regulations are being established, and the risk assessment maps developed bring significant advances that are currently in use and present clear and visible improvements in the management of the sector. The current authorities and staff are committed to continuing this development and the stakeholders involved respect the updated rules of the game. The challenge ahead is related to the need to raise awareness about the scarce nature of water resources. However, the creation of the UGAS and the institutionalization of procedures and norm within IPALaR’s domain provide a framework for civil servants, rural producers, and regular customers that may help in promoting a cultural change. 74. However, the advancement of reforms in the longer term will likely be affected by political and macroeconomic factors as discussed below. 75. Because the reforms supported by the project are now part of a larger agreement among provinces and the federal government to make public spending more efficient and increase tax local collection progressively,21 this may create additional incentives for La Rioja’s political authorities to continue implementing the updated Cadastre Law. For the process to continue, the commitment from all levels of the Government to reduce fiscal deficit and promote financial sustainability in provinces should continue, as this will provide the enabling environment to further deepen the reform. 76. Regarding the quality of public expenditure, in a context of fiscal tightening as the current one in Argentina, the share of budgeted primary expenditures executed has been reduced due to the cuts in public spending, affecting budget predictability particularly for the delivery of critical public services. In the coming years, the budget would have to be better aligned with fiscal goals and include the fiscal deficit targets. With the new process and tools in place, and the National Government pushing for better financial planning, it is expected that budget predictability would improve. However, the current tight fiscal constraints will not allow primary expenditures to increase. 77. In addition, the articulation between planning and budgeting continues to be slow, and the budgeting process is taking the lead in the progress of defining indicators, goals, and general metrics of planning. However, the budgeting process does not include strategic or long-term planning and, so far, has only focused on annual goals. One challenge that remains is the necessary articulation between annual budgeting plans presented by the financial units and the availability of resources during the fiscal year to disburse according to the needs presented in the plans. With better financial planning and improved fiscal rules, and the commitment to respect priorities identified at the planning stage with the necessary budget allocation, this issue can be overcome within the next few years. 78. Finally, although many financial units have produced some extent of strategic and operative plans, provincial strategic planning still presents challenges. It is not very clear that the Planning Directorate has the institutional strength and political power to incorporate strategic planning as a regular exercise in the prioritization of resources. The current national effort to develop a strategic plan following SDGs represents a good opportunity for the provincial planning agency to engage in a broader dialogue 21See the Federal Fiscal Pact signed in 2017 commitment for sustainable fiscal frameworks and efficient public spending among provinces. Page 28 of 68 The World Bank Public Sector Strengthening Program - APL1 (P121836) regarding planning and measuring results, though the methodology adopted by SDGs is only focused on a few indicators and does not concentrate on measuring operative plans. V. LESSONS AND RECOMMENDATIONS Lessons from Project Design 79. Results-based financing to align reform incentives. The benefits of having a results-based financing instrument are twofold. First, it placed the focus on results: during project design, the dialogue with provincial authorities and technical officials centered around priorities and strategic policies and programs, as opposed to focusing on inputs/activities; during implementation, the World Bank team’s contribution was directed to help unlock bottlenecks and improve communication and coordination among the areas, with the aim of achieving the results indicators and, ultimately, the expected outcomes. Second, it helped align incentives and set a road map for advancing the Government reform program, in addition to ensuring sustained availability of resources for the implementation of such reforms. Indicators and targets selected at design were realistic and under the control of the respective areas. During implementation, the close monitoring of DLI targets and other indicators, by the Ministry of Finance, provided a clear message to the involved entities of the importance of achieving such results. Channeling resources through specific EEPs linked to reform programs also emphasized the priority of such programs. 80. Ensuring risk mitigation measures do not create other risks. The plan for reform implementation was cautious and based on a phased pilot approach to adapt to the province’s implementation capacities. Informed by a thorough fiduciary and capacity assessment, the lack of implementation capacity for World Bank-executed projects, as well as safeguarding for misprocurement, fraud, and corruption risks, it was agreed at design to have a limited number of sizeable contracts. In this regard, the core TA was bundled into one single contract for an estimated amount of US$4 million. However, this led to delay, given the weak technical capacity of the province in producing the request for proposal and the lack of entities interested to participate in the bid. This could have been mitigated if the preparation of the request for proposal and the conduct of a market study had been included as part of project preparation. (which is now a requirement under the Procurement Reform). Despite delays, the decision to bundle all activities under one contract turned out to be positive, as it minimized transaction costs and the administrative burden to both the PCU and the World Bank. In addition, it facilitated coordination among the different areas supported by the project. Lessons from Project Implementation 81. Close World Bank supervision and team continuity during implementation are critical to achieve results in a context of low capacity. Close World Bank supervision proved to be critical to advance project- associated activities and reforms, in particular in the context of the 2.5 years of delay in hiring the TA firm. During that period, World Bank technical support compensated for the lack of TA with hands-on TA support in priority areas and avoided a stall in implementation. Team composition and location (half of the core technical team was based in Argentina) facilitated a more fluent dialogue with the client and just- in-time technical missions on top of supervision missions. Mindful of challenges of multiple changes in task team leadership, the project supervision model was anchored in a core team that provided the continuity for intensive implementation support. Page 29 of 68 The World Bank Public Sector Strengthening Program - APL1 (P121836) 82. M&E framework as an instrument to track progress and guide dialogue with sectors. In projects that involve different areas of the public administration, such as this multisector project, M&E frameworks can serve as an instrument to track progress of project implementation and also moderate the dialogue and improve coordination between the PCU and the sectors. Lessons from Results-based Financing Instrument for Subnationals 83. Subnational public management strengthening is critical to pave the way for improving service delivery in any sector. Reforms in cross-cutting public administration platforms and processes, such as the ones included in this project, have proved to be important to strengthen the quality and increase the availability of instruments and information for better decision making, and eventually lead to improvements in the quality of public services. Cross-cutting horizontal interventions can also help promote better coordination in public administration, as was the case in this project. While improvements in this project were piloted in the area of rural water management, other sectors (such as health, education, and so on) can also benefit from public management reforms like the ones promoted under this project. This has proved to be the case with SWAp operations in other countries, such as Brazil.22 84. Value of direct World Bank support to provinces. This operation was a unique case of direct support to a province in Argentina in which the Borrower was one of the ten provinces with the highest share of households with unmet basic needs, and the focus of the project was institutional strengthening. Direct contact and close interaction benefited the project both on the technical and operation aspects. The World Bank played a key technical advisory role while the hiring of the TA was delayed and was able to intervene on specific challenges of the province. As recognized by provincial high-level authorities and public officials involved in this operation, direct engagement through visits of technical teams, conference calls, and high-level meetings with World Bank officials has improved access to knowledge and new solutions and strengthened the quality of technical discussions within the different areas of the provincial government participating in the project. 85. Replicability of this operation. This operation has transformed the public sector in La Rioja and paved the way to improve how policies are planned, designed, and executed in line ministries, with the introduction of concepts and methodologies related to performance management and improved capacities to mobilize own resources. In addition, it helped close the gap between La Rioja and other provinces in Argentina in terms of public sector management capacities and instruments and open up opportunities for the province to gain access to innovative solutions being promoted by the National Government. This experience is valuable to replicate in other provinces with similar needs, particularly in a context in which the newly signed Fiscal Pact has set targets to contain public spending and increase local revenue collection at the subnational level. Such was the experience in Brazil with the 22For example, in Brazil, according to the IEG, multisectoral SWAp “proved ideal for addressing institutional reforms that cut across sectors, particularly those involving difficult trade-offs and, hence, consensus across different agencies and stakeholders. These operations typically supported difficult areas of reform such as tax administration to reduce tax evasion, registry of pensioners (extension of the reform at the federal level), civil service census and certification, audit of payrolls, and improvements in procurement procedures. The convening role of the World Bank in these operations was highly valued by Brazilian counterparts.” IEG. 2014. “Brazil Country Program Evaluation, FY04–11.” page xviii. Page 30 of 68 The World Bank Public Sector Strengthening Program - APL1 (P121836) implementation of the Fiscal Responsibility Law approved in 2000.23 In the longer term, activities directed to increase own resource mobilization, like the ones supported under this project, can indirectly contribute to Maximizing Finance for Development. . 23 The Fiscal Responsibility Law in Brazil “provided state governments with incentives to rationalize and reallocate expenditures. Given these considerations, the authorities requested the Bank to enhance support to state government in these areas. The result was a sharp shift toward operations providing budget support to states and municipalities (DPLs and SWAp) complying with the Fiscal Responsibility Law. These operations covered a wide range of cross-sectoral issues.” IEG. 2014. “Brazil Country Program Evaluation, FY04–11.” page 78. Page 31 of 68 The World Bank Public Sector Strengthening Program - APL1 ( P121836 ) ANNEX 1. RESULTS FRAMEWORK AND KEY OUTPUTS A. RESULTS INDICATORS A.1 PDO Indicators Objective/Outcome: Increase tax collection Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion Increased local tax revenue Number 159.00 189.00 782.00 1645.00 22-Feb-2011 20-Jan-2011 31-Dec-2017 31-Dec-2017 Comments (achievements against targets): This indicator measures the tax collection revenue generated locally by the Provincial Government. Targets are cumulative in current ARS millions (nominal terms). This target was overachieved both in nominal and real terms. Objective/Outcome: Improve expenditure quality Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion Increased share of budgeted Percentage 79.10 90.00 93.00 79.32 primary expenditures executed 22-Feb-2011 20-Jan-2011 31-Dec-2017 31-Dec-2017 Comments (achievements against targets): This indicator measures the share of total budget executed without considering public debt. The indicator achieved at completion is below the target for the period due to a tightening fiscal policy mandate by the National Government. Page 32 of 68 The World Bank Public Sector Strengthening Program - APL1 ( P121836 ) Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion Higher share of budgeted Percentage 0.00 50.00 70.00 58.00 projects which are drawn from the provincial 22-Feb-2011 20-Jan-2011 31-Dec-2017 31-Dec-2017 development plan Comments (achievements against targets): This indicator refers to the proportion of programs in the yearly budget that are present in the provincial development plan. The indicator achieved at completion is below the target for the period. The Provincial Development Plan was completed at a later stage than the approval of the budget for the period. It is expected that the PDV will be used to inform future budget formulation. Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion Increased proportion of Percentage 0.00 40.00 40.00 44.50 competitive bidding in at least 2 Secretariats 22-Feb-2011 20-Jan-2011 31-Dec-2017 31-Dec-2017 Comments (achievements against targets): This indicator measures increase in the total amount of procurements that were carried out through competitive processes. At completion, at least 2 secretariats increased competitive biddings by 44.5%. Selected secretariats were to have a significant weight both in terms of overall provincial spending and relevance for service delivery. For 2017, such agencies were Health and Roads ministries. Target was achieved. Objective/Outcome: Pilot improvements in public service delivery in the area of rural water management Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion Page 33 of 68 The World Bank Public Sector Strengthening Program - APL1 ( P121836 ) Increased efficiency in the Number 5.00 18.00 28.00 28.00 management of irrigation water supply systems 22-Feb-2011 20-Jan-2011 31-Dec-2017 31-Dec-2017 Comments (achievements against targets): This indicator refers to the number of Water User Associations that have completed the consolidation process, which includes: regulatory status review of WUA, update of users’ registry, water use efficiency assessment, water delivery schedule rearrangement, recalculation of water use fees. Target was achieved. Targets are cumulative. A.2 Intermediate Results Indicators Component: Implementation of the Eligible Expenditure Programs Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion Number of land parcels Number 0.00 11000.00 21000.00 101807.00 updated and integrated in the urban cadaster 22-Feb-2011 20-Jan-2011 31-Dec-2017 31-Dec-2017 Comments (achievements against targets): This indicator measures the number of land parcels that were updated and integrated in the urban cadaster. This includes updates in the cadastre, changes in ownership, updates of the physical parameters of the parcels, through the work done to improve DGIP, Cadastre and the property registry databases. The target expected at completion was overachieved. Targets are cumulative. Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion Number of tax arrears Number 0.00 2500.00 10000.00 53105.00 accounts in excess of AR$5,000 processed for 22-Feb-2011 20-Jan-2011 31-Dec-2017 31-Dec-2017 Page 34 of 68 The World Bank Public Sector Strengthening Program - APL1 ( P121836 ) collection Comments (achievements against targets): This indicator refers to the number of accounts with overdue payments above AR$5,000 that were included for tax collection.Target was overachieved. Targets are cumulative. Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion Increase in pending tax Number 0.00 250.00 780.00 1220.00 arrears cases send to court 22-Feb-2011 20-Jan-2011 31-Dec-2017 31-Dec-2017 Comments (achievements against targets): This indicator refers to the number of accounts with overdue payments that were sent to court for collection.Target was overachieved. Targets are cumulative. Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion Increase of integral audits for Number 0.00 850.00 1300.00 1359.00 Gross Income Tax 22-Feb-2011 20-Jan-2011 31-Dec-2017 31-Dec-2017 Comments (achievements against targets): This indicator refers to the number of tax audits that were carried out to improve gross income tax collection. Target was overachieved. Targets are cumulative. Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion Delegation of tax Yes/No N Y Y Y Page 35 of 68 The World Bank Public Sector Strengthening Program - APL1 ( P121836 ) enforcement powers to DGIP 22-Feb-2011 20-Jan-2011 31-Dec-2017 10-Aug-2011 Comments (achievements against targets): This indicator measures that a delegation of tax enforcement powers to the General Directorate was issued. Such powers are to be sufficient to enforce the rules on tax payments. Targets were achieved. Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion The Public Sector Reform Yes/No N Y Y Y Program has been budgeted and budget programs have 22-Feb-2011 20-Jan-2011 31-Dec-2017 13-Dec-2011 been designed for this purpose Comments (achievements against targets): This indicator refers to the Provincial Government having budgeted the reform program by the signature date of this loan. Target was achieved. Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion Programmatic structure and Yes/No N Y Y Y effective physical and financial indicators have 22-Feb-2011 20-Jan-2011 31-Dec-2017 06-Dec-2016 been introduced in the budget process and is updated Comments (achievements against targets): This indicator refers to two innovations introduced in the budget cycle: programmatic structure and physical and financial indicators for the programs. Target was achieved. Page 36 of 68 The World Bank Public Sector Strengthening Program - APL1 ( P121836 ) Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion Number of budget Number 380.00 250.00 199.00 114.00 amendments affecting appropriations between 22-Feb-2011 20-Jan-2011 31-Dec-2017 31-Dec-2017 budget programs or expenditure categories Comments (achievements against targets): This indicator measures the amendments that were introduced during the budget cycle that affected appropriations. The target represents a maximum acceptable number. Any number below the expected target represents an achievement. In this case, the target was to have fewer than 200 amendments at project completion, which was achieved with 114. Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion Number of Secretariats with Number 0.00 8.00 12.00 10.00 strategic and operative plan updated 22-Feb-2011 20-Jan-2011 31-Dec-2017 31-Dec-2017 Comments (achievements against targets): This indicator refers to the provincial units with updated strategic and operative plans. Targets are cumulative. Target was partially achieved. Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion Number of Directorate of Number 0.00 12.00 21.00 25.00 Page 37 of 68 The World Bank Public Sector Strengthening Program - APL1 ( P121836 ) Financial Administration 22-Feb-2011 20-Jan-2011 31-Dec-2017 31-Dec-2017 preparing reports on program budgeting and monitoring Comments (achievements against targets): This indicator refers to the administrative units which prepare reports and monitor financial and physical execution of the budget. Target was overachieved. Targets are cumulative. Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion Adoption of a Legal Public Yes/No N Y Y Y Procurement Framework 22-Feb-2011 20-Jan-2011 31-Dec-2017 18-Dec-2012 Comments (achievements against targets): This indicator shows the approval of an updated legal framework for public procurement. Target was achieved. Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion Adoption of secondary Yes/No N Y Y Y legislation, operational manual and standard bidding 22-Feb-2011 20-Jan-2011 31-Dec-2017 16-Mar-2014 documents. Comments (achievements against targets): This indicator measures the additional and complementary measures implemented to implement the public procurement framework. Target was achieved. Page 38 of 68 The World Bank Public Sector Strengthening Program - APL1 ( P121836 ) Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion Percentage of provincial Percentage 0.00 75.00 75.00 75.00 central administration expenditure covered in 22-Feb-2011 20-Jan-2011 31-Dec-2017 31-Dec-2017 procurement audit that verifies the compliance with the new procurement law and its regulation. Comments (achievements against targets): This indicator measures the share of expenditure covered in procurement audit that verifies the compliance with the new procurement law and its regulation. At completion, 75% of the provincial total spending was to be included in the procurement audit. Target was achieved. Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion Procurement Policy Unit Yes/No N Y Y Y (PPU)/Regulatory Body is established and staffed. 22-Feb-2011 20-Jan-2011 31-Dec-2017 13-Mar-2017 Comments (achievements against targets): This indicator shows the implementation of the Procurement Policy Unit (creation of the Procurement General Directorate of the Contracting System under the Ministry of Finance). Target was achieved. Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion Accreditation system is Yes/No N Y Y Y Page 39 of 68 The World Bank Public Sector Strengthening Program - APL1 ( P121836 ) established 22-Feb-2011 20-Jan-2011 31-Dec-2017 13-Mar-2017 Comments (achievements against targets): This indicator shows the establishment of the accreditation system for public procurement. Target was achieved. Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion Number of Government Number 0.00 12.00 17.00 10.00 Secretariats that present and monitor an annual 22-Feb-2011 20-Jan-2011 31-Dec-2017 31-Dec-2017 procurement plan Comments (achievements against targets): This indicator referes to the number of Government Secretariats that present and monitor an annual procurement plan. Targets are cumulative and were partially achieved. Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion Procurement Information Yes/No N Y Y Y System is established and statistical data on 22-Feb-2011 20-Jan-2011 31-Dec-2017 12-Jun-2014 procurement outcomes and methodologies used by institutions available Comments (achievements against targets): This indicator measures whether the Procurement Information System is established and statistical data on procurement outcomes and methodologies used by institutions available. Target was achieved. Page 40 of 68 The World Bank Public Sector Strengthening Program - APL1 ( P121836 ) Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion Water User Associations Number 0.00 15.00 25.00 24.00 compliant with irrigation regulation 22-Feb-2011 20-Jan-2011 31-Dec-2017 31-Dec-2017 Comments (achievements against targets): This indicator measures the number of Water User Associations compliant with current irrigation regulation. Targets are cumulative. Target was partially achieved. Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion Number of additional WUAs Number 0.00 18.00 28.00 28.00 that have increased their number of fee paying users 22-Feb-2011 20-Jan-2011 31-Dec-2017 31-Dec-2017 by at least 20% Comments (achievements against targets): This indicator measures an increase in the number of users who pay the irrigation fee and are listed in the WUAs records as "up to date". Target was achieved: 28 additional WUAs increased the number of fee paying users by at least 20% at project completion. Targets are cumulative. Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion Increase in number of Water Number 0.00 12.00 26.00 24.00 User Associations that reduced the time elapsed 22-Feb-2011 20-Jan-2011 31-Dec-2017 31-Dec-2017 between irrigation turns by 50% (from a current Page 41 of 68 The World Bank Public Sector Strengthening Program - APL1 ( P121836 ) averageof 30 days to 15 days) Comments (achievements against targets): This indicator measures number of Water User Associations that reduced the time elapsed between irrigation turns by 50% (from an initial average of 30 days to 15 days). Targets are cumulative. Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion Additional number of Number 0.00 750.00 1050.00 1182.00 households in remote areas with access to a drinking 22-Feb-2011 20-Jan-2011 31-Dec-2017 31-Dec-2017 water system Comments (achievements against targets): This indicator refers to the number of households in remote areas that gained access to a drinking water system. Target was overachieved. Targets are cumulative. Component: Technical Assistance Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion Staff trained in strategic Number 0.00 40.00 80.00 166.00 planning and program budgeting 22-Feb-2011 20-Jan-2011 31-Dec-2017 31-Dec-2017 Comments (achievements against targets): This indicator measures the number of staff that received training in strategic planning and program budgeting.Target was overachieved.Targets are cumulative. Page 42 of 68 The World Bank Public Sector Strengthening Program - APL1 ( P121836 ) Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion Number of Procurement Number 0.00 16.00 46.00 80.00 Staff trained and accredited 22-Feb-2011 20-Jan-2011 31-Dec-2017 31-Dec-2017 Comments (achievements against targets): This indicator shows the number of staff who received training and accreditation with the accreditation system for public procurement. 80 agents and officials trained and accredited in different programs covering all key aspects related to the public procurement framework and processes. Target was overachieved. Targets are cumulative. Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion Terms of Reference for Yes/No N Y Y Y Procurement Efficiency Study (Quick Gains) 22-Feb-2011 20-Jan-2011 31-Dec-2017 31-Dec-2017 Comments (achievements against targets): This indicator measures the elaboration of terms of reference for a Quick Gains study to improve procurement efficiency. The target was overachieved. The study was commissioned and produced. It identified a strategy for the rationalization of procurement in La Rioja and proposed concrete alternatives to achieve potential savings (quick gains) in government expenses. Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion Number of farmers trained Number 0.00 4000.00 4800.00 4145.00 on management on techniques related to access 22-Feb-2011 20-Jan-2011 31-Dec-2017 31-Dec-2017 to water Page 43 of 68 The World Bank Public Sector Strengthening Program - APL1 ( P121836 ) Comments (achievements against targets): This indicator measures the number of farmers trained on techniques related to access to water. Target expected at completion exceeded the number of farmers in the area, therefore target was partially achieved. Targets are cumulative. Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion Sector Environment Yes/No N Y Y Y Assessment (SEA) 22-Feb-2011 20-Jan-2011 31-Dec-2017 13-Mar-2017 Comments (achievements against targets): This indicator measures the elaboration of the Sector Environment Assessment (SEA). Target was achieved. Page 44 of 68 The World Bank Public Sector Strengthening Program - APL1 ( P121836 ) B. KEY OUTPUTS BY COMPONENT Objective/Outcome 1: Increased tax collection Outcome Indicators 1. Increased local tax revenue 1. Number of land parcels updated and integrated in the urban cadastre 2. Number of tax arrears accounts in excess of AR$5,000 processed Intermediate Results Indicators for collection 3. Increase in pending tax arrears cases sent to court 4. Increase of integral audits for Gross Income Tax 5. Delegation of tax enforcement powers to DGIP 1. Updated property titles with taxpayer ID Key Outputs by Component 2. Updated urban cadastre (linked to the achievement of the Objective/Outcome 1) 3. Strengthened and extended integral tax audits Objective/Outcome 2: Improve expenditure quality 1. Increased share of budgeted primary expenditures executed 2. Higher share of budgeted projects which are drawn from the Outcome Indicators provincial development plan 3. Increased proportion of competitive bidding in at least 2 Secretariats 1. The Public Sector Reform Program has been budgeted and budget programs have been designed for this purpose 2. Programmatic structure and effective physical and financial indicators have been introduced in the budget process and is Intermediate Results Indicators updated 3. Staff trained in strategic planning and program budgeting 4. Number of budget amendments affecting appropriations between budget programs or expenditure categories Page 45 of 68 The World Bank Public Sector Strengthening Program - APL1 ( P121836 ) 5. Number of Secretariats with strategic and operative plan updated 6. Number of Directorate of Financial Administration preparing reports on program budgeting and monitoring 7. Adoption of a Legal Public Procurement Framework 8. Adoption of secondary legislation, operational manual and standard bidding documents. 9. Percentage of provincial central administration expenditure covered in procurement audit that verifies the compliance with the new procurement law and its regulation. 10. Procurement Policy Unit (PPU)/Regulatory Body is established and staffed. 11. Accreditation system is established 12. Number of Procurement Staff trained and accredited 13. Number of Government Secretariats that present and monitor an annual procurement plan 14. Terms of Reference for Procurement Efficiency Study (Quick Gains) 15. Procurement Information System is established and statistical data on procurement outcomes and methodologies used by institutions available 1. Program budgeting 2. Introduction of performance indicators 3. Linkage of budget and planning for specific secretaries 4. Staff trained in budgeting Key Outputs by Component 5. New legal framework for e-procurement. (linked to the achievement of the Objective/Outcome 2) 6. Staff trained and accredited in e-procurement. 7. Public Procurement Policy and Regulatory Body established 8. E-procurement system implemented 9. Quick gains study produced Page 46 of 68 The World Bank Public Sector Strengthening Program - APL1 ( P121836 ) Objective/Outcome 3: Pilot improvements in public service delivery in the area of rural water management 1. Increased efficiency in the management of irrigation water supply Outcome Indicators systems 1. Number of farmers trained on management on techniques related to access to water 2. Water User Associations compliant with irrigation regulation 3. Number of additional WUAs that have increased their number of fee paying users by at least 20% Intermediate Results Indicators 4. Increase in number of Water User Associations that reduced the time elapsed between irrigation turns by 50% (from a current average of 30 days to 15 days) 5. Additional number of households in remote areas with access to a drinking water system 6. Sector Environment Assessment (SEA) 1. Households in remote rural land with access to drinking water 2. Irrigation water resource management improved 3. SEA produced Key Outputs by Component 4. WUAs consolidated (linked to the achievement of the Objective/Outcome 3) 5. Improved regulation of irrigation policies 6. Users’ registries updated for irrigation services 7. Improved water delivery schedule for irrigation 8. Water user fees recalculated for irrigation Page 47 of 68 The World Bank Public Sector Strengthening Program - APL1 ( P121836 ) ANNEX 2. BANK LENDING AND IMPLEMENTATION SUPPORT/SUPERVISION A. TASK TEAM MEMBERS Name Role Preparation Alexandre Arrobbio Sr. Public Sector Specialist LCSPS Norbert Fiess Sr. Economist LCSPE Marcelo Barg Country Representative in Chile LCC6C Jeffrey Rinne Sr. Public Sector Specialist LCSPS Alvaro Soler Sr. Rural Development Specialist LCSAR Andres Mac Gaul Sr. Procurement Specialist LCSPT Raul Junquera Varela Sr. Public Sector Specialist PRMPS Tarsila Velloso Public Sector Specialist LCSPS Alejandro Guerrero Ruiz Public Sector Specialist LCSPS Alejandro Alcala Gerez Sr. Counsel LEGLA Jose Janeiro Sr. Finance Officer CTRFC Victor Ordoñez Disbursement Officer CTRFC Alejandro Solanot FM Specialist LCSFM Natalia Bavio FM Specialist LCSFM Tuuli Bernardini Environmental Specialist LSCEN Cecilia Simkievich JPA LCSPE Chris Parel Consultant LCSPS Nicolas Raigorodsky Consultant LCSPS Jorge Sotelo Consultant LCSPS Juan Sanguinetti Consultant LCSPS Beatriz Nussbaumer Consultant LCSAR Isabel Tomadin Consultant LCSEG Fanny Weiner Consultant LCSPS Carolina Biagini Majoral Consultant LCSPE Supervision/ICR Daniela Veronica Felcman Task Team Leader(s) Lorena Vinuela Senior Public Sector Specialist Mariano Lafuente Public Sector Specialist Raul Junquera Varela Sr. Public Sector Specialist PRMPS Martin Ariel Sabbatella Procurement Specialist(s) Alejandro Roger Solanot FM Specialist Silvana Kostenbaum Team Member Nicolas R. S. Raigorodsky Team Member Kimberly Vilar Social Safeguards Specialist Ariel Melamud Team Member Remi Charles Andre Trier Team Member Marcelo Roman Morandi Environmental Safeguards Specialist Karina Ramirez Arras Team Member Laura Elisa Aguirre Tellez Team Member Page 48 of 68 The World Bank Public Sector Strengthening Program - APL1 ( P121836 ) B. STAFF TIME AND COST Staff Time and Cost Stage of Project Cycle No. of staff weeks US$ (including travel and consultant costs) Preparation FY10 .925 21,147.67 FY11 36.515 246,886.60 Total 37.44 268,034.27 Supervision/ICR FY12 19.843 122,070.10 FY13 27.634 176,553.33 FY14 25.474 137,240.49 FY15 37.971 170,866.87 FY16 36.306 160,378.94 FY17 27.287 139,046.19 FY18 29.646 151,444.34 Total 204.16 1,057,600.26 Page 49 of 68 The World Bank Public Sector Strengthening Program - APL1 ( P121836 ) Page 50 of 68 The World Bank Public Sector Strengthening Program - APL1 ( P121836 ) ANNEX 3. PROJECT COST BY COMPONENT Actual at Project Amount at Approval Percentage of Component Closing (US$, (US$, millions) Approval millions) Implementation of the Eligible Expenditure 24.00 23.857 99.40% Programs Technical Assistance 5.25 3.344 63.70% Others 0.075 0.075 100.00% Total 30.00 27.276 90.92% Page 51 of 68 The World Bank Public Sector Strengthening Program - APL1 ( P121836 ) ANNEX 4. EFFICIENCY ANALYSIS Financial Analysis 86. At appraisal, the expected economic impact of the project was thought to be positive but it was not calculated. It can be inferred that economic benefits are equal to the financial benefits plus externalities and there were not negative externalities identified. The PAD relied mostly in a qualitative analysis of benefits for all PDO areas. According to the PAD, the project would bring improvements in institutional performance that could not be easily quantified. In addition, because project’s support for reforms in the area of public management –planning, budgeting and procurement– would be implemented alongside other Government initiatives, it will be more difficult to attribute the outcomes to the Project. Only the tax administration subcomponent was subject to analysis in monetary terms. 87. The PAD presented a financial analysis of TA costs and gains from increased tax collection directly related to the activities under the project. The NPV gains for tax administration reform were estimated at AR$43.8 million for 2011–2015, and AR$62.1 million for the 25-year loan repayment period. 88. At appraisal, the costs of providing TA in four activities of the tax reform were considered for the analysis. The planned activities were: (a) supporting the updating of the cadastre, (b) improving the quality of the property tax payer register, (c) reducing the stock of tax arrears and improving tax enforcement, and (d) developing a strategy to improve tax audits for gross income tax. Note that cost for the activity of property ‘cuitification’ (unique identification number matching) was considered, but the expected revenues were not quantified. Costs included expenses on personnel, acquisition of information technology equipment, Global Positioning System equipment and vehicles, adding up to AR$6.8 million. The expected positive externalities of the tax administration reform were not estimated in monetary terms. The financial gains or tax collected from the project activities were calculated assuming AR$220 per parcel updated, AR$12 million in processed tax arrears; and AR$50,000 per audit conducted, which added up to AR$58.8 million in increased taxes. See summary in table 4.1. A discount rate of 5 percent was used at appraisal, resulting in NPV gains for tax administration reform of at AR$43,799,815 for the 2011-2015 period (see table 4.2). Table 4.1 Costs and tax collection related to the tax subcomponent estimated at appraisal 2011 2012 2013 2014 2015 Activity 1 Number of land parcels updated (additional per year) 1,500 2,000 2,500 2,500 2,500 Estimated Costs 680,000 445,000 500,000 500,000 500,000 personnel 5 15 20 20 20 — — — — IT equipment 15,000 — — — — GPS equipment 400,000 — — — vehicles 140,000 70,000 Estimated increase in tax collection (AR$)* 0 330,000 770,000 1,320,000 1,870,000 Page 52 of 68 The World Bank Public Sector Strengthening Program - APL1 ( P121836 ) Activity 2 Number of "cuitified" urban properties 5,000 5,000 5,000 5,000 5,000 Estimated Cost 229,000 175,000 175,000 175,000 175,000 personnel 7 7 7 7 7 IT equipment 54,000 Estimated increase in tax collection (AR$) - - - - - Activity 3 Number of tax arrears accounts in excess of AR$5,000 (additional per year) 500 500 500 500 500 Estimated Cost 250,000 250,000 250,000 250,000 250,000 personnel 10 10 10 10 10 Estimated increase in tax collection (AR$) 500,000 1,500,000 2,500,000 3,500,000 4,000,000 Activity 4 Number of integral audits for Gross Income Tax 100 150 200 200 200 Estimated Cost 250,000 375,000 500,000 500,000 500,000 personnel 10 15 20 20 20 Estimated increase in tax collection (AR$) 5,000,000 7,500,000 10,000,000 10,000,000 10,000,000 Total Estimated Cost 1,409,000 1,245,000 1,425,000 1,425,000 1,425,000 Estimated increase in tax collection (AR$) 5,500,000 9,330,000 13,270,000 14,820,000 15,870,000 * Estimated tax collection in year t is the result of the cumulative sum of revenue gains from updated land plots from year 1 to year t-1 (considering a AR$220 gain per updated land parcel). Table 4.2. NPV gains estimated at appraisal for the 2011-2015 period (2011 AR$) At Appraisal Year Cost Tax Collected Net 1 2011 1,409,000.00 5,500,000.00 4,091,000.00 2 2012 1,245,000.00 9,330,000.00 8,085,000.00 3 2013 1,425,000.00 13,270,000.00 11,845,000.00 4 2014 1,425,000.00 14,820,000.00 13,395,000.00 5 2015 1,425,000.00 15,870,000.00 14,445,000.00 NPV (5%) 43,799,815.29 89. For the ICR, an ex post financial analysis of the tax subcomponent cost was carried out. To report the actual costs, a comprehensive approach was taken into account both for external and internal resources used in the tax administration reform. We accounted for project costs of added external resources, such as equipment purchased and personnel hired to provide TA. However, public FM projects, such as this one, make use of existing internal resources, particularly of internal staff in project Page 53 of 68 The World Bank Public Sector Strengthening Program - APL1 ( P121836 ) management and execution. See Glenday et al. (2013). Therefore, we accounted for both by using the executed eligible expenditures reported by the Ministry of Finance for the tax system modernization and municipal cadaster update, whether the source was the loan and the province’s own sources. The actual tax collected from the three project activities considered at appraisal (updated parcels, tax arrears processed, and audits conducted) was reported and adjusted for inflation using the CPI for the San Luis province.24 Tax collection from matching urban property IDs was not calculated at appraisal nor ex post. See summary table below.25 All figures are in 2011 $AR. Table 4.3. Actual costs and tax collection related to the tax subcomponent (2011 $AR) 2011 2012 2013 2014 2015 2016 2017 Total Activity 1 Actual number of land parcels updated 2013 3186 26025 38188 9389 14556 8450 (additional per year) 101,807 444,819. 985,552. 4,039,26 9,797,18 11,530,3 10,390,4 14,361,8 51,549,4 69 Actual increase in tax collection (AR$)* 04 8.68 6.80 48.82 33.04 82.09 91.16 Activity 2 Actual number of "cuitified" urban properties Actual increase in tax collection (AR$) Activity 3 Actual number of tax arrears accounts in excess 2193 3455 2543 3982 12467 14034 14431 of AR$5,000 (additional per year) 53,105 33,455,5 45,207,3 18,849,9 24,665,4 139,100, 61,501,5 60,426,1 383,206, 99.73 Actual increase in tax collection (AR$) 73.93 60.67 40.50 654.72 70.66 01.01 701.22 Activity 4 Actual number of integral audits for Gross 148 128 164 177 209 237 309 Income Tax 1,372 9,591,61 4,358,92 4,916,16 3,562,53 6,068,43 11,505,7 7,433,17 47,436,5 8.26 Actual increase in tax collection (AR$) 7.22 0.25 0.57 3.41 37.56 1.17 78.44 43,492,0 50,551,8 27,805,3 38,025,1 156,699, 83,397,7 82,221,1 482,192, Actual increase in tax collection (AR$) 37.68 53.19 89.59 57.88 436.95 41.25 54.27 770.82 Executed Eligible expenditures on tax admin 6,938,16 6,594,95 6,163,58 5,767,05 10,221,0 5,913,56 4,277,20 45,875,5 reform 7.36 8.63 0.79 4.90 70.79 0.56 1.57 94.60 67,216.8 103,643. 4,067,41 1,795,26 2,728,21 2,296,36 11,058,1 TA costs - 8 53 5.50 8.24 8.90 0.39 23.44 6,938,16 6,662,17 6,267,22 9,834,47 12,016,3 8,641,77 6,573,56 56,933,7 Actual costs 7.36 5.51 4.32 0.40 39.04 9.46 1.95 18.04 24See footnote 8 in main text for rationale behind using such CPI. 25 Table 4.3 shows tax collected (real values in 2011 AR$ equivalent, AR$ 482 million) as a result of the modernization of the tax registry and collection system, which included updating of the cadastre registry system and its direct impact on the tax base information of DGIP, the DGIP delegated power to act, the amount of AR$ in tax arrears included, the amount of pesos sent to Court for further collection, the Cuitification process to improve the administration of the records and increase the tax base. Page 54 of 68 The World Bank Public Sector Strengthening Program - APL1 ( P121836 ) 36,553,8 43,889,6 21,538,1 28,190,6 144,683, 74,755,9 75,647,5 425,259, Net (total tax collection - total cost) 70.32 77.68 65.28 87.48 097.91 61.79 92.32 052.78 90. To compare the ex post NPV, two methods were used. As suggested in the guidelines 2016 Operations Policy & Quality (OPSPQ), when discounting costs and benefits in economic analysis of World Bank projects, it is a good practice to provide a sensitivity analysis that calculates the NPV of the project for a range of discount rates. 91. Method 1. The NPV gains were calculated for the actual costs and actual tax collected adjusted for inflation, using the same 5 percent discount rate used at appraisal. An ex post NPV gain of AR$339 million compares favorably to the AR$43.8 million estimated at appraisal (see table 4.4 below). Table 4.4. Compared NPV gains calculated at appraisal and ex post (2011 AR$) with 5% discount rate, as calculated at appraisal At Appraisal Ex Post (2011 AR$) Year Cost Benefits Net Cost Benefits Net 2011 1,409,000.00 5,500,000.00 4,091,000.00 6,938,167.36 43,492,037.68 36,553,870.32 2012 1,245,000.00 9,330,000.00 8,085,000.00 6,662,175.51 50,551,853.19 43,889,677.68 2013 1,425,000.00 13,270,000.00 11,845,000.00 6,267,224.32 27,805,389.59 21,538,165.28 2014 1,425,000.00 14,820,000.00 13,395,000.00 9,834,470.40 38,025,157.88 28,190,687.48 2015 1,425,000.00 15,870,000.00 14,445,000.00 12,016,339.04 156,699,436.95 144,683,097.91 2016 8,641,779.46 83,397,741.25 74,755,961.79 2017 6,573,561.95 82,221,154.27 75,647,592.32 NPV (5%) 43,799,815.29 339,328,840.88 Table 4.5 – Consumer Price Index Estimates for the period of the program Year Inflation Rate (San Luis Inflation Rate (Congress CPI) in % estimated CPI) in % 2012 23 24 2013 32 25.2 2014 39 38.6 2015 31.6 27.4 2016 31.4 41 2017 24.3 27 92. Method 2. Alternatively, the NPV was calculated for the actual cost and benefits, deflating the amount of tax collection (in 2011 AR$) and using a real interest rate for the discount rate. The actual NPV gains for tax administration are calculated at AR$ 539.6 million for 2011–2017, which compares favorably Page 55 of 68 The World Bank Public Sector Strengthening Program - APL1 ( P121836 ) to the AR$ 43 million at appraisal (see table 4.6). The ex-post financial analysis substantiates the financial soundness of the tax administration reform. 93. Table 4.6. Compared NPV gains calculated at appraisal and ex post (2011 AR$) with real discount rate At Appraisal Ex Post (2011 AR$) Real Interest Year Rate* Cost Benefits Net Cost Benefits Net 6,938,167.36 43,492,037.68 36,553,870.32 9.90% 2011 1,409,000.00 5,500,000.00 4,091,000.00 6,662,175.51 50,551,853.19 43,889,677.68 -8.17% 2012 1,245,000.00 9,330,000.00 8,085,000.00 6,267,224.32 27,805,389.59 21,538,165.28 -12.33% 2013 1,425,000.00 13,270,000.00 11,845,000.00 9,834,470.40 38,025,157.88 28,190,687.48 -17.17% 2014 1,425,000.00 14,820,000.00 13,395,000.00 12,016,339.04 156,699,436.95 144,683,097.91 -5.71% 2015 1,425,000.00 15,870,000.00 14,445,000.00 -6.74% 8,641,779.46 83,397,741.25 74,755,961.79 2016 4.74% 6,573,561.95 82,221,154.27 75,647,592.32 2017 43,799,815.29 539,617,427.73 *Real interest rate source is Central Bank of Argentina and San Luis CPI – Sources for CPI from Argentina’s Statistical Institute, Indec, were not reliable from 2007 to 2015, as the Government indicated in 2016 when it declared the Statistical Emergency of the country. Page 56 of 68 The World Bank Public Sector Strengthening Program - APL1 ( P121836 ) ANNEX 5. BORROWER, CO-FINANCIER AND OTHER PARTNER/STAKEHOLDER COMMENTS Feedback from National Government to this ICR The National Government provided feedback to this ICR, which was incorporated in the final version of the report. Comments are summarized below. (1) Overall, the document exposes in several sections an attribution of causality between the Fiscal Pact with Provinces and the lack of achievements in PDO indicator #2 during the last fiscal year (2017). Specifically, this is evidenced in paragraph 29 when it states, "In spite of efforts in this area, the target value of 93% for PDO indicator # 2 (Improve expenditure quality) was not achieved in the last year of the project due to the introduction of the above mentioned Fiscal Pact, which set restrictions on the execution of primary expenditures". However, there would not seem to be a direct relation between reduction in spending and quality in the use of resources. (2) In paragraph 44, section "Additional Financing or Loan Cancellations", it is stated that "There was no additional financing or loan cancellations". However, it is necessary to clarify in the report whether there was cancellation, since the loan was US $ 30 MM and US$ 27.3 MM were disbursed, as well as the status of the US$ 2.7MM that were not disbursed. Summary of Borrower’s Evaluation (in Spanish).26 The Government of La Rioja prepared its own evaluation as part of the ICR process, which is summarized below. EVALUACION FINAL PROGRAMA DE FORTALECIMIENTO DEL SECTOR PUBLICO BIRF 8008 AR, GOBIERNO DE LA RIOJA, ARGENTINA - AÑO 2018 RESULTADOS ALCANZADOS Mejora en la recaudación de Impuestos Dirección General de Ingresos Provinciales-DGIP Y Dirección General de Catastro El cumplimiento del “Componente I” es fundamental en el proyecto, ya que significaba el recurso con el que se hace frente a la gestión Provincial. En el “componente I”, desde el comienzo del proyecto se alcanzaron muy satisfactoriamente las metas fijadas y consensuadas con el Banco Mundial, tanto es así, que hubo que redefinir valores objetivo por encima de los fijados inicialmente. 26An excerpt from this report (in Spanish), detailing the Borrower’s assessments of outcomes, Bank and Borrower performance, and lessons learned is presented below. The entire report, including a detailed presentation of Project outputs and outcomes by component has been saved in WBDocs and is available upon request. Page 57 of 68 The World Bank Public Sector Strengthening Program - APL1 ( P121836 ) Parcelas actualizadas Deuda tributaria que Fiscalizaciones integrales Casos enviados Año Objetivos Ingresos Tributarios e integradas en el exceden los $ 5.000 para el Impuesto sobre a juicio catastro urbano procesadas para cobranza los Ingresos Brutos Valor Objetivo $ 162.000.000,00 1.500 500 30 100 11 20 Valor Alcanzado $ 222.046.236,90 2.013 2.193 193 135 Valor Objetivo $ 267.000.000,00 2.000 1.500 120 150 12 20 Valor Alcanzado $ 309.214.852,36 3.186 3.455 210 128 Valor Objetivo $ 322.000.000,00 2.500 1.500 120 200 13 20 Valor Alcanzado $ 412.310.857,47 26.025 2.543 175 164 Valor Objetivo $ 414.000.000,00 2.500 1.500 120 200 14 20 Valor Alcanzado $ 594.918.693,89 38.188 3.982 140 177 Valor Objetivo $ 514.000.000,00 2.500 1.500 120 200 15 20 Valor Alcanzado $ 917.821.178,61 9.389 12.467 158 209 Valor Objetivo $ 680.000.000,00 5.000 1.500 120 200 16 20 Valor Alcanzado $ 1.183.197.451,91 14.556 14.034 192 237 Valor Objetivo $ 782.000.000,00 5.000 2.000 150 250 17 20 Valor Alcanzado $ 1.645.390.433,19 8.450 14.431 152 309 Fortalecimiento y Mejora en la Calidad del Gasto Fortalecimiento Del Sistema De Presupuesto, Presupuesto basado en Resultados. Dirección Gral. de Presupuesto • Personal de la Dirección General de Presupuesto DGP y de los Servicios de administración Financieras SAF, adquirió conocimientos mediantes capacitaciones masivas en “Técnicas de Presupuesto por Programa”, “Planificación Estratégica Operativa”, “Identificación producto Institucional, Denominaciones, Unidades de Medida” “Indicadores Físicos y Financieros”. • Se adecuaron estructuras programáticas, conforme a la Técnica de Presupuesto, etc., dichos aprendizajes fueron impartidos e impulsados por el Proyecto mediantes Consultores o Asistencia Técnica y por fuera del Proyecto, mediante gestiones ante el Foro de Direcciones de Presupuesto de Argentina, en forma virtual para grupos menores de personas pertenecientes a DGP y a SAF. • Se seleccionaron áreas pilotos de la Administración Pública Provincial para la aplicación del “Plan Estratégico Operativo Institucional”, lográndose los objetivos propuestos. • Se articularon acciones para el Plan Integral de Desarrollo Provincial PIDP • Se logró la articulación entre Planificación y Presupuesto, en forma extemporánea. • Se profesionalizó el actual equipo técnico de la DGP. • La Dirección General de Presupuesto ejecutó acciones autónomas directas de capacitación en etapa de Formulación Presupuestaria/2.018, a fin de lograr y consolidar en los SAF una evolución favorable de esta práctica presupuestaria vigente. Conclusión: con los principales puntos descriptos (entre otros), es evidente que se motivó, generó y comprobó un cambio cultural beneficioso en la práctica presupuestaria en la Administración Pública Provincial, por cuanto las transformaciones son realidades que fueron plasmadas en el documento principal que genera este Órgano Rector. Page 58 of 68 The World Bank Public Sector Strengthening Program - APL1 ( P121836 ) -Como factor potenciador al Proyecto, debemos señalar que conjuntamente a las actividades antes descriptas se adicionó: • La puesta en marcha, desde 01-04-2.015, de la réplica del Sistema Integrado de Información Financiera “e-SIDIF” de Nación en Provincia, ajustado a la Técnica de Presupuesto por Programa. • La técnica de presupuesto por programa como herramienta, cuya información se procesa en el Sistema “e-SIDIF”. Conclusión: se procuró una gestión financiera pública que sea eficiente y eficaz, cuyos reportes sirvan para que, en tiempo real, se tomen decisiones gubernamentales correctas y que sirvan para fortalecer al Proyecto. -Se obtuvo del Proyecto para la Dirección General de Presupuesto: • Un Manual de Misiones y Funciones para una nueva Estructura organizacional de la Dirección General de Presupuesto. • Propuesta de Planta Optima de personal para la Dirección General de Presupuesto. Conclusión: de concretarse para este Órgano Rector una estructura organizacional apropiada, como la sugerida, se estará en condiciones de resolver la demanda de trabajo actual, con lo cual se optimizará y fortalecerá el Proyecto. Planificación y Presupuesto Relación entre el objetivo del proyecto y los objetivos del plan de desarrollo de la provincia: Fortalecer las instituciones de la Administración Pública de La Rioja • 6 objetivos de desarrollo provincial establecidos. • 15 organismos (SAF) realizaron el ejercicio de planificación. • 10 organismos alcanzaron a incluir sus planificaciones en el Tomo IV del Presupuesto. • 95 objetivos sectoriales establecidos y vinculados con objetivos provinciales y los ODS. • 303 productos identificados. • 18 reuniones de articulación y capacitación. • 28 planificadores de SAF asistieron al menos una vez a las reuniones a capacitarse o informarse sobre las obligaciones emergentes del Plan Integral de Desarrollo Provincial. • Articulación efectiva con el Consejo Nacional de Coordinación de Políticas Sociales, como instancia superior de validación para el trabajo de adaptación de las metas nacionales a nivel subnacional, vía convenio, lo que da un marco de sustentabilidad al proceso de planificación, al plantearle un horizonte de 12 años con metas intermedias a 2019 y finales a 2030. Ordenando la ejecución en este sentido y priorizando la inversión según criterios de largo plazo que trascienden la gestión de gobierno. • Diseño del circuito de las Evaluaciones Ambientales y Sociales Estratégicas en conjunto con el IPALaR, incluido en el Plan Integral de Desarrollo Provincial 2018. Brechas entre los objetivos y metas del proyecto y los resultados alcanzados: Page 59 of 68 The World Bank Public Sector Strengthening Program - APL1 ( P121836 ) • 34,42 % del presupuesto total asignado a las planificaciones incluidas en el Tomo IV. Lección aprendida 1: Tras el establecimiento de objetivos estratégicos y de lineamientos de gestión a nivel de la alta dirección gubernamental, no puede depender de la voluntad o capacidad de interpretación de órganos inferiores para su implementación, sin un principio de imputación basado en un entorno normativo que apoye, regule y estandarice el proceso. Recomendación: Propiciar un entorno normativo que apoye, regule y estandarice, estableciendo obligaciones claras y precisas para la producción de información y los circuitos por donde debe transitar para su oficialización y validación. Lección aprendida 2: Trabajar con unidades orgánicas de estratos inferiores en la escala jerárquica, resulta improductivo e ineficiente, además de complejizar el proceso. Recomendación: A nuestro criterio, resulta más apropiado y conveniente trabajar con unidades ministeriales y con secretarías de dependencia directa de la Función Ejecutiva. La tarea de coordinación interinstitucional se abordaría con mayor facilidad, y la información producida tendría mayor relevancia, además de legitimidad institucional, reduciendo costos de transacción y reforzando el trabajo articulado entre ministerios y secretarías. Reforma del Sistema Contrataciones • Adopción de un marco legal de Contrataciones Públicas, adopción de legislación secundaria, Manual de operaciones y documentos de licitación estándares (Ley Nº 9.341 Decreto Reglamentario F.E.P. Nº 9.341/13, Resolución Ministerio de Hacienda Nº 298/14; Flujogramas y Pliegos estandarizados) • Auditoría de Adquisiciones para verificar cumplimiento de la nueva ley de adquisiciones (fue realizada durante los años 2016 y 2017 por la Universidad Nacional de San Martín) • Creación y dotación De Personal de un Organismo Regulatorio (Creación de la Dirección General de Sistema de Contrataciones dependiente del Ministerio de Hacienda) • Creación del Sistema de Capacitación y Acreditación mediante el Decreto F.E.P. Nº 1342/12, con de más de 100 agentes y funcionarios capacitados y acreditados en diferentes temáticas relacionadas con compras públicas. • Puesta en Marcha del Plan Anual de Contrataciones ( se capacitó a las entidades contratantes en relación a las cuestiones teóricas y prácticas acerca de la elaboración de los planes anuales, sus ajustes y la ejecución del mismo). En este punto cabe destacar que la escases de personal de la Page 60 of 68 The World Bank Public Sector Strengthening Program - APL1 ( P121836 ) D.G.S.C., capacitado en el análisis de los PACs dificulta en la práctica el seguimiento de los mismos, destacándose sin embargo la difusión de los mismos en el sitio web a partir de octubre de 2017. • Diseño y Puesta en Marcha de un Sistema de Información de Adquisiciones: Se desarrolló y puso en marcha en el año 2014 el sitio Web compras.larioja.gov.ar, que contiene gran cantidad de información: normativa vigente, flujogramas de procesos, base de proveedores (con herramienta de pre-inscripción en línea), Sistema de difusión de contrataciones con diversos filtros (objeto, repartición, ejercicio, etc.), capacitaciones, Planes Anuales de Contrataciones, formularios de Pliegos estandarizados, etc.). Fortalecimiento Y Mejora En La Gestión De Recursos Hídricos - Instituto Provincial Del Agua de La Rioja - IPALAR Los ejes fueron llevados adelante a través de acciones concretas que se detallan a continuación: Facilitar el acceso al agua a zonas rurales remotas - Lecciones aprendidas Considerando que el cumplimiento de este indicador se encuentra relacionado directamente a los recursos económicos disponibles, las acciones realizadas para el cumplimiento del mismo fueron implementadas de manera inmediata y la Institución cuenta con recursos propios para dar respuesta a la necesidad de ejecución de obras menores que permitan el acceso a agua potable a poblaciones rurales aisladas. Lograr la gestión eficiente de los distritos de riego De igual manera, con el fin de fortalecer la gestión de los distritos de riego, se concretaron acciones que sientan sus bases en el cumplimiento de la Ley 6342 con sus modificatorias (6357) y (8921 y sus Decretos Reglamentarios (1087/97 – 1813/05 – 526/06), las mismas se relacionan directamente con el cumplimiento de indicadores que permiten controlar la ejecución del proyecto: Regularización de consorcios de usuarios / cobro de canon Si bien la regularización de los consorcios de usuarios, en el inicio del proyecto no fue considerado como un aspecto relevante en la Gestión del Recurso Hídrico, a partir del análisis de los antecedentes en el año (2016) del proyecto, se definió la necesidad de trabajar sostenidamente en la regularización administrativa de los consorcios a fin de lograr incentivar y eficientizar el sistema de cobro del canon correspondiente al pago de horas de riego, para incrementar los porcentajes de cobrabilidad y que a través del aumento de la recaudación se brinde solvencia económica a los consorcios, situación que no solo beneficiaría a los usuarios sino que permitiría redireccionar recursos económicos del IPALAR a mejoras estructurales de la infraestructura disponible. Reordenamiento de consorcios de usuarios. Con el fin de aumentar la eficiencia en la gestión de los sistemas de abastecimiento de agua de riego y lograr que las Asociaciones de Usuarios de riego (CUAs.), cumplan con las normativas vigentes a partir de Page 61 of 68 The World Bank Public Sector Strengthening Program - APL1 ( P121836 ) la ejecución del proyecto se inició un proceso de consolidación de estas asociaciones a través de la ejecución de Reordenamientos. Asimismo a través de los reordenamiento se pretende lograr la definición de las obras necesarias y “reorganizar” su ejecución. Capacitación a agricultores en técnicas relacionadas a la gestión y acceso al agua - Lecciones aprendidas Para lograr la gestión eficiente de los distritos de riego se detectaron diferentes aspectos que influyeron en el cumplimiento de las metas establecidas los cuales se presentan a continuación: ✓ Sociabilización de las acciones con las comunidades involucradas: si bien las acciones se centraron en la regularización administrativa y el reordenamiento (Uso de tierras y distribución del agua) existieron inconvenientes relacionados a la sociabilización del proyecto en todas las localidades intervenidas por desconocimiento de los alcances del proyecto. Se detectó un importante desconocimiento de lo dispuesto en las leyes y normativas vigentes que permiten regulan el funcionamiento de los CUAs., y fundamentalmente los alcances y beneficios que se obtendrían a partir de la disminución de la frecuencia de riego, y la adecuación de los turnos de riego a la superficie cultivada real. ✓ EL avance logrado en la ejecución de reordenamientos, permite contar con información actualizada de los usuarios y de las diferentes áreas productivas, a partir de lo cual se genera la necesidad de incorporar estas bases de datos al Sistema de Información Geográfica (SIG), como así también la implementación de herramientas de gestión para el cobro del canon. ✓ Incorporar a la Planificación anual de la Coordinación de Riego, la ejecución de Reordenamientos de los distritos de riego excluidos del proyecto a fin de poder realizar anualmente las asignaciones presupuestarias que permitan dar continuidad al proceso de Reordenamiento de los distritos de Riego. ✓ Coordinar acciones con el Ministerio de Producción para asistir a los productores y asi lograr actualizar tecnológicamente u optimizar los sistemas de riego intrafinca. ✓ Planificar obras que permitan incentivar el crecimiento de las áreas productiva, a fin de potenciar el desarrollo local. ✓ Dar continuidad al plan de capacitación, incluyendo a la totalidad de los CUAs. Implementación plan de reforma – asistencia técnica Plan hídrico a corto plazo - Lecciones aprendidas ✓ Necesidad de contar la información estadística actualizada en todas las Direcciones del IPALAR, y que cumpla con los requerimientos técnicos necesarios para lograr su sistematización a través del S.I.G. ✓ Procedimentar la actualización permanente del Plan de Inversiones en obras y fortalecimiento de La Provincia. ✓ Necesidad de Revisión Permanente de objetivos y acciones planteadas en el P.H.P. a corto plazo, que permitan realizar la actualización del mismo. Page 62 of 68 The World Bank Public Sector Strengthening Program - APL1 ( P121836 ) ✓ Coordinar trabajo de actualización, mediante la formación de equipos de trabajo, que incluya a todas las ares de IPALAR. Fortalecimiento del IPALAR- Unidad De Gestión Ambiental y Social (UGAS) - - Lecciones aprendidas ✓ Identificación de la necesidad de incorporación de los gastos internos de la unidad implicados en el desarrollo de procedimientos y metodologías, dentro del presupuesto por programa de la institución. ✓ Identificación de la necesidad de creación de un sistema eficiente de tratamiento de quejas y reclamos de fácil acceso. ✓ Dentro de la formalización de procesos, instrumentos y prácticas operacionales de evaluación y salvaguarda ambiental se reconoce la necesidad de generar una retroalimentación interinstitucional para la gestión integrada de recurso hídrico, dando lugar a la creación del plan de consulta como instrumento metodológico y de trabajo para la estimación de demanda hídrica por parte de los diferentes proyectos provinciales que impliquen un consumo del recurso. ✓ Se identifica la necesidad de trabajo técnico interinstitucional para la actualización de las evaluaciones socio-ambiental estratégica, especialmente en la estimación de oferta hídrica. ✓ Al desarrollar tareas de capacitación y sensibilización en diferentes localidades se logra realizar un diagnostico situacional sobre diferentes CUAs de la provincia, y desde la unidad de gestión ambiental y social se identifica la necesidad de apoyo, acompañamiento y asesoramiento tanto social como legal para la conformación de nuevas comisiones y fortalecimiento de CUAs. ✓ En respuesta a la necesidad de acompañamiento socio ambiental y jurídico a los CUAs se elabora una guía metodológica para la regularización de comisiones. ✓ Necesidad de incorporación dentro de la normativa y procedimientos institucionales, de aspectos y criterios socio-ambientales enfatizando el tema de contaminación y control. Marco legal vigente / marco normativo y procedimental socio ambiental interno implementado en I.P.A.La.R - - Lecciones aprendidas - Taller sobre la elaboración del proyecto de la reglamentación del Código de Aguas de la Provincia de La Rioja brindado por los consultores de la asistencia técnica- Dres. Mauricio Pinto y Marcela Pinto - a empleados de I.P.A.La.R. donde se trataron aspectos básicos de la normativa provincial vigente en materia de recursos hídricos y cuestiones ambientales.- - Elaboración del anteproyecto de reglamentación de la Ley 4295 (Código de Aguas), el cual aborda cuestiones como Política Hídrica (Libro I Disposiciones Generales Título I Ámbito de Vigencia, Objeto de Regulación y Autoridad de Aplicación del Régimen de Aguas) y lo relativo a la Contaminación Hídrica ha sido regulado en el Título II del Libro IV de dicho proyecto. Cabe agregar que dicho anteproyecto fue sometido a revisión por parte de la Asesoría General de Gobierno, organismo que ha efectuado comentarios y observaciones respecto a la técnica legislativa así como al contenido sustancial del proyecto que ameritan un tratamiento más profundo.- Lecciones y recomendaciones Page 63 of 68 The World Bank Public Sector Strengthening Program - APL1 ( P121836 ) El Instituto Provincia del Agua de La Rioja, considera que a partir resultados obtenidos de la ejecución del proyecto se logró Fortalecer las capacidades técnicas de la Institución, marcando una línea de acción adecuada al contexto hídrico de la Provincia. Si bien durante los años de ejecución del proyecto surgieron dificultades que pusieron en peligro su culminación, que además generaran un estancamiento en el cumplimiento de las metas, en los 2 últimos años de ejecución se logró un avance significativo, que permitieron dar un sustento a las Políticas Hídricas implementadas por la Administración.Este proyecto significo un proceso de aprendizaje y entendimiento de la situación hídrica de la provincia, y marca la necesidad de lograr una Mejora Continua de las capacidades de la Institución. De igual manera se considera que la institución demanda un acercamiento permanente a la sociedad y a todas aquellas instituciones y organizaciones vinculadas al uso de los recursos hídricos que dispone la Provincia, este acercamiento deberá direccionarse a Promover su uso adecuado y a incentivar el desarrollo productivo de la provincia. Recomendaciones Generales: • Necesidad de continuar con la incorporación de procedimientos institucionales, que contengan aspectos que permitan mejorar el desempeño de las diferentes áreas que conforman la institución. • Necesidad de continuar Fortaleciendo los Sistemas de Información, que servirán como herramienta de análisis y para la toma de decisión. • Mejorar las capacidades del Personal. • Implementar a la planificación estratégica, acciones para la Gestión del Cambio. • Avanzar en la reglamentación de leyes y normativas vigentes que permitan dar Continuidad a la Políticas Hídricas de la Provincia, y que estas trasciendan a circunstancias Políticas, en pos de lograr la Gestión Integral del Recurso. Evaluación del desempeño de la agencia implementadora y del equipo del Banco Mundial Evaluación del desempeño de la Agencia implementadora Más allá de lo que la propia entidad financiera impulsora del proyecto pueda remarcar respecto del desempeño de esta agencia encargada de llevar adelante la implementación del mismo, el equipo con el que se conformó entiende que, aun cuando no dispuso de un plantel acorde a las especialidades básicas, tuvo un desempeño satisfactorio. El plantel estuvo conformado por un Coordinador General de la Unidad, un responsable de contabilidad y finanzas, un responsable de monitoreo y seguimiento y un responsable ambiental y social. Las tareas del responsable administrativo fueron cubiertas por el agente administrativo disponible en la Subsecretaría de Administración Financiera. La función de un responsable de adquisiciones fueron cubiertas, por sucesivos especialistas contratados por la Provincia para asistir a la Coordinación. El compromiso de los integrantes de la agencia, y la fluidez de comunicación, adoptada como una habitualidad por el equipo del Banco Mundial, permitió que los aspectos de fortalecimiento y desarrollo básicos que buscaba el objetivo principal de proyecto, pudieron llevarse adelante sin mayores obstáculos. En el aspecto de administración financiera, destacamos el compromiso y presencia Page 64 of 68 The World Bank Public Sector Strengthening Program - APL1 ( P121836 ) permanente de las áreas involucradas, básicamente los Servicios de Administración Financiera (S.A.F) para suministrar información básica para el desarrollo de las auditorias y para la elaboración de los informes financieros requeridos, que se llevó adelante con un profesional en ciencias económicas de vasta experiencia de trabajo en materia de proyectos provinciales con financiamiento internacional. En materia de contrataciones, las actividades se desarrollaron con algunos inconvenientes, principalmente en lo que se refiere a la contratación de la firma Consultora encargada de llevar adelante la asistencia técnica, debido al extenso tiempo transcurrido para llevar adelante el proceso hasta la conclusión del mismo, todo ello debido a la escasa respuesta por parte del mercado oferente. En el aspecto ambiental, la agencia tuvo la posibilidad de contar con la afectación de un especialista desde otra repartición, excelentemente acreditado, con amplia experiencia profesional, que posibilitó, cubrir toda actividad de asesoramiento, coordinación y seguimiento en todo lo atiente al aspecto Agua para la producción agrícola, que, a pesar de los cambios institucionales del área IPALAR, contribuyó a que el actual plantel de la institución valorara e hiciera suyos los procedimientos de fortalecimiento sustentable de una mejor administración en la gestión hídrica. En el aspecto de Monitoreo y seguimiento, atento lo expresado más arriba, y teniendo en cuenta que en este aspecto se requería mayor presencia permanente en oficinas de las áreas involucradas con el proyecto, creemos que hacía falta un especialista por cada componente y subcomponente del proyecto. No obstante ello, el responsable asignado, con amplia experiencia en materia de administración financiera y presupuesto y planificación, suplió satisfactoriamente la actividad, basada en el seguimiento de las tareas que desplegaba cada área involucrada en función del cumplimiento de indicadores en tiempo y forma, así como el seguimiento de los objetivos no cumplidos de años anteriores, la coordinación con las áreas por las distintas actividades coordinadas con el BM y con la asistencia técnica, en oportunidad de realizarse las misiones y las actividades de capacitación que fueron necesarias previo a la contratación de la asistencia técnica. La coordinación de esta agencia, con el apoyo de un agente administrativo de la Subsecretaría de Administración Financiera, llevo adelante todas las actividades de contratación, coordinación y dirección de dicha agencia, cubriendo toda falta de asesoramiento en los casos en que el resto del plantel no pudo realizarlo, con amplio apoyo en el aspecto de administración financiera y el cumplimiento de todos los requerimientos producto del cumplimiento satisfactorio de los objetivos del proyecto. En general y como conclusión del desempeño de esta agencia, rescatamos la experiencia acreditada en cada uno de los componentes de la misma, que sin duda, ubica a sus participantes, en una posición óptima para afrontar actividades de esta índole, así como la visión sustentable de abrirnos nuevos horizontes para el desempeño profesional. Evaluación y Desempeño del Equipo del Banco Mundial Page 65 of 68 The World Bank Public Sector Strengthening Program - APL1 ( P121836 ) El desempeño del equipo del Banco Mundial fue satisfactorio. La relación entre los equipos de la Unidad de Coordinación y los distintos componentes del proyecto con los especialistas del Banco fue optima, ello debido a que entre los tiempos de las misiones se mantuvo un contacto fluido a través de comunicaciones de diversa índole, notándose su disposición para evacuar dudas y colaborar en el desarrollo de las actividades que el proyecto exigió para el cumplimiento de las mejoras planteadas. Las misiones de supervisión las consideramos como muy provechosas para el logro de los objetivos del proyecto y también para la transferencia de conocimientos desde el Banco Mundial hacia la Provincia; lo cual se vio complementado con las capacitaciones recibidas en los temas Fiduciarios. Como corolario final podemos concluir que el compromiso de los Organismos y de esta Unidad de Coordinación con los procesos de modernización, si bien durante el periodo de ejecución tuvo sus dificultades, deja sentadas las bases de avance para un desarrollo sostenible en cuanto a los objetivos planteados en este proyecto. Page 66 of 68 The World Bank Public Sector Strengthening Program - APL1 ( P121836 ) ANNEX 6. SUPPORTING DOCUMENTS References Glenday, Graham, et. al. 2013. Economic Analysis guidance for Governance and Public Sector Management Investment Lending Operations in Select Areas of Public Financial Management (Draft). Washington, DC: World Bank. Government of La Rioja. 2018. Evaluación final programa de fortalecimiento del sector publico BIRF 8008 AR, La Rioja, Argentina. Gobierno de La Rioja. IEG (Independent Evaluation Group). 2014. Brazil Country Program Evaluation, FY04–11: Evaluation of the World Bank Group Program. Washington, DC: World Bank IMF. May 2018. International Financial Statistics. Washington, DC: IMF. OPSPQ. 2016. Discounting Costs and Benefits in Economic Analysis of World Bank Projects. Washington, DC: World Bank Group. World Bank. 2009. Argentine - Country Partnership Strategy for the Period 2010–2012. Report No. 48476-AR. Washington, DC: World Bank. World Bank. 2011. Project Appraisal Document, Public Sector Strengthening Program - APL 1 La Rioja, Argentina. Report No. 57773-AR. Washington, DC: World Bank. World Bank. 2014. Argentina - Country Partnership Strategy for the Period of FY2015–18. Report No. 81361-AR. Washington, DC: World Bank Group. Legislation and regulation La Rioja. Law 10.054/2017. La Rioja. Law 10. 056/2018. Ratification of the Fiscal Pact La Rioja. Law 9.341. General Contracting Regime. La Rioja. Decree F.E.P. Nº 1342/12. Ministry of Finance. Resolution No. 298/14. Page 67 of 68 The World Bank Public Sector Strengthening Program - APL1 ( P121836 ) Page 68 of 68