PROGRAM INFORMATION DOCUMENT (PID) CONCEPT STAGE March 20, 2014 Report No.: AB7525 (The report # is automatically generated by IDU and should not be changed) Operation Name TZ: Open Government and Value for Money Credit Region AFRICA Country Tanzania Sector Public administration- Information and communications (50%); Public Financial Management (50%) Operation ID P133798 Lending Instrument Development Policy Lending Borrower(s) TANZANIA Implementing Agency Government of Tanzania Date PID Prepared February 25, 2014 Estimated Date of Appraisal September 15, 2014 Estimated Date of Board November 4, 2014 Approval Corporate Review Decision Following the corporate review, the decision was taken to proceed with the preparation of the operation. Key development issues and rationale for Bank involvement The OGVM series supports Tanzania’s implementation of the Open Government Partnership (OGP) initiative and the Public Financial Management Reform Program to improve budget credibility and execution, with a focus on Basic Education, Rural Water and Basic Health sectors. In an effort to be more responsive to citizens’ growing demand for public information and accountability, Tanzania signed the OGP in 2011, and has produced an action plan based on the recognition that without good data senior managers face difficulty in assessing the performance of Government in service delivery and in informing citizens adequately on achievements in implementing policies and programs. The program aims to make information about delivery performance of basic education, rural water, and basic health services reliable and accessible in order to evaluate progress evaluation and performance of those public servants working along the service delivery chain. In 2013, Tanzania has also launched the fourth phase of the Public Financial Management Reform Program (PFMRP-IV) that aims to address PFM bottlenecks at the central as well as local government level to enhance an efficient allocation and use of public resources to provide better services. Proposed Objective(s) The objective of the proposed program is to establish open data to increase access and use of service delivery information and improve budget credibility and execution. The pillars are: (i) Support for Tanzania’s participation in the Open Government Partnership; and (ii) Enhance value for money in service delivery through financial management policy reforms. The result indicators of the series are aligned with the two policy areas. Preliminary Description This operation seeks to address cross-cutting and upstream constraints to service delivery, which if successful will complement sector reform programs currently being supported by the Bank and other development partners at the central and district level. Improvements in data quality and flow of funds will place Tanzania in a better position to achieve service delivery results in human welfare that are critical for the achievement of its Vision 2025. The program is therefore organized around two main policy areas essential to enable transparency and value for money in service delivery: (i) support to implement the country commitments to the Open Government Partnership in selected sectors of Education, Water, and Health; (ii) strengthening budget credibility and execution, including public investment management, procurement, and cash management. The list of proposed prior actions of this operation and triggers for the next operations are summarized in the Table below. Proposed Prior Actions and Triggers . Medium-Term Objectives OGVM 1 OGVM 2 OGVM 3 Prior Actions Triggers Indicative (Sept 2014) (Sept 2015) Triggers (Sept 2016) 1. Open Government Partnership – Strengthen transparency, citizen participation, government decision making, and accountability in service delivery Government tables Government Government in Parliament a approves establishes and Freedom of accompanying implements a Information bill in regulations for mechanism for line with the OGP the Freedom of monitoring i. Freedom of action plan, Information Act. Freedom of Information following broad Information consultations with requests. stakeholders including CSOs and media. Government issues Government Open Data instructions to issues a policy on inter-agency establish an inter- open data working group agency working applicable to all issues best group to set public institutions practice notes ii. Open Data on policies, advise on following wide on use of Government Budget standards, and stakeholder dashboards for and Sector coordinate consultations. establishing Performance implementation of feedback loops open data across with CSOs and MDAs and LGAs. LGA service boards to obtain Government issues evidence-based Medium-Term Objectives OGVM 1 OGVM 2 OGVM 3 Prior Actions Triggers Indicative (Sept 2014) (Sept 2015) Triggers (Sept 2016) a circular citizen feedback providing interim on education, guidelines on water and sharing of open health. data to enable ministries of Education, Water, Health, Finance and the National Bureau of Statistics to publish data sets that are of high value to citizens. 2. Value for Money - Strengthen budget credibility and execution, including public investment management, procurement, and cash management The Government Government issues instructions approves a on the use of the pipeline of PIM manual in strategic preparation and investment i. Public Investment screening of projects screened Management investment using the PIM projects. manual and discloses it in the budget documentation presented to Parliament. MoF adopts an MoF adopts an MoF approves action plan for action plan for mandatory use implementation of implementation of e- PPA 2011 and of e-procurement. procurement for regulations. key service ii. Procurement delivery sectors. For high value contracts in priority sectors, Government adopts independent Medium-Term Objectives OGVM 1 OGVM 2 OGVM 3 Prior Actions Triggers Indicative (Sept 2014) (Sept 2015) Triggers (Sept 2016) third party monitoring. MoF discloses Treasury Single IFMIS underlying Account (TSA) consolidation assumptions of the covers regional architecture for revenue votes. budget projections in the execution data budget documents. (revenue and MoF takes a expenditure) policy decision of and related Government bringing LGA financial asset changes the commercial bank and liability Appropriation Act accounts into the data of MDAs to authorize TSA. and LGAs Minister of implemented Finance to only (milestone 5.1.2 iii. Cash Management increase debt by MoF fully funds in P4). an amount equal to (from existing the financing balances, deficit for the revenue, or fiscal year, subject borrowing) to any quarterly appropriation expenditure changes estimates of authorized by MDAs/LGAs in Parliament in an line with the Adjustment appropriated Appropriation Act. expenditure budget for a fiscal year. MoF issues MoF implements instructions to a medium term commitment plan to reduce expenditures stock of through IFMIS. expenditure arrears. Government pilots Government program based adopts a policy budgeting and paper to roll-out expenditure a program based control in budgeting Education and system in all Medium-Term Objectives OGVM 1 OGVM 2 OGVM 3 Prior Actions Triggers Indicative (Sept 2014) (Sept 2015) Triggers (Sept 2016) Water ministries. MDAs/LGAs. Government adopts and implements the principle to limit one adjustment budget to unforeseen and unavoidable expenditures. Poverty and Social Impacts and Environment Aspects Poverty and Social Impacts This program is expected to contribute to the poverty reduction and inclusiveness agenda. Improvements in public service delivery in education, water, and health are a major contributor to poverty alleviation and the long-term growth agenda through increasing access of the poor to these services and their impact on improvements in human capital 1. Human capital refers to a broad range of knowledge, skills and capabilities, needed for life and work, including those related to capability in successful living, engendered through quality education and improved labor productivity. Government investment in human capital in terms of education, water, and health are important to reduce inequality of access and welfare. Increased investments in public service delivery in Tanzania have shown marginal impact on poverty due to their poor quality. Studies of private returns to education investments in Tanzania in the 2000s show “the benefits of primary schooling have been more limited in the Tanzanian case than might have been expected from the international research data� leading to a conclusion that “The quality of education has been so poor that many of the potential benefits of education have not been realized� (HakiElimu 2005). This is not surprising given that the focus has been on expansion of infrastructure and enrollment rather than on quality. There is thus a significant relationship between improvement in quality public services delivery and reduction in poverty. Environment Aspects The specific policies supported by this programmatic operation are not expected to have negative effects on Tanzania’s environment, forests, water resources, habitats or other 1 Hedgwood, R. “Education and Poverty Reduction in Tanzania,� Haki Elimu working paper 9, 2005. natural resources. The risk of unanticipated adverse effects to the environment and natural resources is negligible. Tentative financing Source: ($m.) BORROWER/RECIPIENT 0 International Development Association (IDA) 50,000,000 Borrower/Recipient IBRD Others (specifiy) Total 50,000,000 Contact point World Bank Contact: Chiara Bronchi Title: Lead Public Sector Specialist Tel: 5355+3252 Fax: Email: cbronchi@worldbank.org Location: Dar Es Salaam, Tanzania (IBRD) Borrower Contact: Title: Tel: Email: For more information contact: The InfoShop The World Bank 1818 H Street, NW Washington, D.C. 20433 Telephone: (202) 458-4500 Fax: (202) 522-1500 Web: http://www.worldbank.org/infoshop