The World Bank Implementation Status & Results Report Public Sector Performance Project (P150116) Public Sector Performance Project (P150116) AFRICA | Madagascar | Governance Global Practice | IBRD/IDA | Investment Project Financing | FY 2016 | Seq No: 8 | ARCHIVED on 21-Mar-2020 | ISR40235 | Implementing Agencies: PREA - Programme des réformes pour l'efficacité de l'administration, Ministry of Finance Key Dates Key Project Dates Bank Approval Date: 13-Jun-2016 Effectiveness Date: 27-Mar-2017 Planned Mid Term Review Date: 28-Sep-2018 Actual Mid-Term Review Date: 10-Dec-2018 Original Closing Date: 30-Jun-2020 Revised Closing Date: 30-Jun-2020 pdoTable Project Development Objectives Project Development Objective (from Project Appraisal Document) The Project Development Objective (PDO) is to improve revenue management, and local service delivery nationwide and in the education sector in Selected Regions. Has the Project Development Objective been changed since Board Approval of the Project Objective? No Components Table Name Improving Revenue Management:(Cost $16.80 M) Improving Service Delivery Capacity of Local Governments:(Cost $12.00 M) Improving Governance Mechanisms in the Education Sector:(Cost $7.80 M) Improving Controls and Performance Monitoring:(Cost $3.40 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO Moderately Satisfactory Moderately Satisfactory Overall Implementation Progress (IP) Moderately Unsatisfactory Moderately Satisfactory Overall Risk Rating High High Implementation Status and Key Decisions The Madagascar Public Sector Performance Project (PAPSP) was approved by the Bank's Board of Executive Directors on June 13, 2016 and became effective only in March 27, 2017. Project implementation has been severely affected by political changes and new configuration of key ministries. Two of the five Project Development Objective (PDO) indicators have met their yearly target as of November 2019, and are on a trajectory to meet the end-target. According to the last verification report, three Disbursement Linked Indicators (DLIs) have been achieved by the Tax and Customs authorities with corresponding disbursement effective as of end February 2020. Initial findings suggest that the 2019 targets for DLI 4 and 5 will not be achieved. 3/21/2020 Page 1 of 7 The World Bank Implementation Status & Results Report Public Sector Performance Project (P150116) Key achievements include the rolling out of the integrated tax administration system and the implementation of performance contracts in new tax and customs offices. Moreover, the revenue collection performance remains on track at both the national and local level. The capacity of audit institutions has significantly improved as evidenced by the launch of a series of critical audits that informed the 2019 public report published on December 2019. The hiring of new staff to support the Reform Program for Efficiency of Administration’s (PREA) operational capacity is ongoing. Given this implementation endeavors, the disbursement rate has also improved, currently standing at 56 percent. Project management performance is gradually improving and will be further strengthened as the PIU becomes fully staffed in the next few months. Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance High High High Macroeconomic Substantial Substantial Substantial Sector Strategies and Policies Moderate High High Technical Design of Project or Program High High High Institutional Capacity for Implementation and Substantial Substantial Substantial Sustainability Fiduciary Substantial Substantial Substantial Environment and Social Moderate Moderate Moderate Stakeholders High High High Other -- -- -- Overall High High High Results PDO Indicators by Objectives / Outcomes to improve revenue management IN00792402 ►Increased tax revenue collection (Domestic tax revenue/GDP ratio) (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 10.00 10.00 10.40 11.80 Date 31-Mar-2016 31-Aug-2019 31-Dec-2019 30-Jun-2020 Domestic tax revenue/GDP ratio PDO value for 2019 is adjusted to 10% according to the computation of GDP while it was 11.3% Comments: according the previous computation. 3/21/2020 Page 2 of 7 The World Bank Implementation Status & Results Report Public Sector Performance Project (P150116) IN00792404 ►Number of TADAT PO-8 indicators "Efficient Revenue Management" rated B (Text, Custom) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 1.00 2.00 Date 31-Mar-2016 31-Aug-2019 31-Dec-2019 30-Jun-2020 Contribution to Government tax revenue forecasting process - Adequacy to the tax revenue accounting Comments: system - Adequacy of tax refund processing to improve local service delivery nationwide and in the education sector in Selected Regions. IN00792403 ►Availability of a teachers' information management system (Text, Custom) (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Yearly update of Value None None None teachers' database Date 31-Mar-2016 31-Aug-2019 31-Dec-2019 30-Jun-2020 Teacher census is underway and expected to be completed by the end of December 2020 Comments: IN00792405 ►Communes with IGL higher than 6 (Percentage, Custom) (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 60.00 Date 31-Mar-2016 31-Aug-2019 31-Dec-2019 30-Jun-2020 New IGL baseline is going to be introduced with the project restructuring Comments: IN00792436 ►Direct Project Beneficiaries (number), of which female (percentage) (Number, Custom) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 3,277.00 Date 31-Mar-2016 31-Aug-2019 31-Dec-2019 30-Jun-2020 This indicator has been difficult to track nationwide and the accountability of the results at the local level to the sole project has been problematic. This indicator is proposed to be dropped in the ongoing Comments: restructuring of the project and replaced by the number of female beneficiaries participating in public debates organized by the project Intermediate Results Indicators by Components Improving Revenue Management IN00792437 3/21/2020 Page 3 of 7 The World Bank Implementation Status & Results Report Public Sector Performance Project (P150116) ►Modernization of the Integrated Tax Administration System (ITAS) (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Procurement hardware Procurement hardware ITAS operational (in for the ITAS achieved for the ITAS achieved pilot tax centers Value None and rolling in selected and rolling in selected covering 90% of tax pilot offices pilot offices revenue) Date 31-Mar-2016 31-Aug-2019 31-Dec-2019 30-Jun-2020 Comments: Availability of the technical specifications for the ITAS IN00792441 ►Increased rate of confirmed suspicious customs transactions related to home use at Tomasina Custom Office (in case of physical examination). (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 5.00 24.62 26.80 15.00 Date 31-Mar-2016 31-Aug-2019 31-Dec-2019 30-Jun-2020 IN00792445 ►Number of revenue offices that have been subject to external evaluation of their performance contracts/program (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 5.00 5.00 6.00 Date 31-Mar-2016 31-Aug-2019 31-Dec-2019 30-Jun-2020 Comments: Revenue offices include customs offices and regional tax offixes IN00792447 ►Improved taxpayers registration (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 200,000.00 295,000.00 377,415.00 320,000.00 Date 31-Mar-2016 31-Aug-2019 31-Dec-2019 30-Jun-2020 IN00792448 ►Establishment of a single administrative identification number (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 2,500,000.00 Date 31-Mar-2016 31-Aug-2019 31-Dec-2019 30-Jun-2020 TORs for the technical specificities currently under review Comments: IN00792449 ►Improved formalization of small-scale miners (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target 3/21/2020 Page 4 of 7 The World Bank Implementation Status & Results Report Public Sector Performance Project (P150116) Value 0.00 0.00 3,000.00 15,000.00 Date 31-Mar-2016 31-Aug-2019 31-Dec-2019 30-Jun-2020 Availability of the technical specifications and launch of the tender for the ANOR database currently under Comments: discussions Improving Service Delivery Capacity of Local Governments IN00792438 ►Improved timeliness of service-delivery fiscal transfers to local governments (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target No standard available to Completion of the Transfer not achieved Transfer not achieved measure acceptable transfer program with a Value within 60 days from the within 60 days from delays for transfer tolerance threshold of programmed dates the programmed dates execution 30 days on average Date 31-Mar-2016 31-Aug-2019 31-Dec-2019 30-Jun-2020 IN00792442 ►Improved recovery of revenue (not including grants) by local governments (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 30.00 52.65 52.65 50.00 Date 31-Mar-2016 31-Aug-2019 31-Dec-2019 30-Jun-2020 Improving Governance Mechanisms in the Education Sector IN00792439 ►Share of schools targeted by the component with an operational FEFFI, planning and implementing PECs (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 65.00 45.83 75.00 Date 31-Mar-2016 31-Aug-2019 31-Dec-2019 30-Jun-2020 This indicator is measured on an annual basis and is not cumulative. Comments: The 65% was measured in December 2018 and not December 2019. IN00792443 ►Percentage of FRAM teachers in the areas selected by the component receiving subsidies with less than two months of delay (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 5.00 5.00 37.76 50.00 Date 31-Mar-2016 31-Aug-2019 31-Dec-2019 30-Jun-2020 Improving Controls and Performance Monitoring IN00792440 3/21/2020 Page 5 of 7 The World Bank Implementation Status & Results Report Public Sector Performance Project (P150116) ►Timely availability of the Court of Acccount (CA) public report (process indicator) (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value None YES YES Yes Date 31-Mar-2016 31-Aug-2019 31-Dec-2019 30-Jun-2020 The 2019 report was published at the end of the ongoing year (Publised on December 13, 2019) Comments: IN00792444 ►High/substantial risks audits completed by Internal Audit Departments (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 12.00 12.00 6.00 Date 31-Mar-2016 31-Aug-2019 31-Dec-2019 30-Jun-2020 IN00792446 ►Semiannual public debates on the budget law, the performance of revenue agencies and project performance led by CSOs. (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 1.00 2.00 2.00 2.00 Date 31-Mar-2016 31-Aug-2019 31-Dec-2019 30-Jun-2020 (Citizens' engagement Indicator) - Annual Budget Law and Loi de Reglement Comments: Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P150116 IDA-58350 Effective USD 40.00 40.00 0.00 22.10 17.38 56% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P150116 IDA-58350 Effective 13-Jun-2016 28-Oct-2016 27-Mar-2017 30-Jun-2020 30-Jun-2020 Cumulative Disbursements 3/21/2020 Page 6 of 7 The World Bank Implementation Status & Results Report Public Sector Performance Project (P150116) Restructuring History Level 2 Approved on 27-Nov-2017 Related Project(s) There are no related projects. 3/21/2020 Page 7 of 7