The World Bank Vietnam: Strengthening M&E Capacity for Improved Performance of Public Investment Projects Integrated Safeguards Data Sheet Identification / Concept Stage (ISDS) Public Disclosure Copy Concept Stage | Date ISDS Prepared/Updated: 18-Oct-2018 | Report No: ISDSC19581 Oct 21, 2018 Page 1 of 7 The World Bank Vietnam: Strengthening M&E Capacity for Improved Performance of Public Investment Projects BASIC INFORMATION A. Basic Project Data Project ID Project Name Environmental Category Country Vietnam: Strengthening M&E Capacity for P161176 C - Not Required (C) Vietnam Improved Performance of Public Investment Projects Team Leader(s) Estimated Date of Approval Managing Unit Financing Instrument Quang Hong Doan, Anh Investment Project 20-Mar-2017 GMTP1 Phuong Nguyen Financing Public Disclosure Copy PROJECT FINANCING DATA (US$, Millions) SUMMARY -NewFin1 Total Project Cost 1.80 Total Financing 1.80 Financing Gap 0.00 DETAILS -NewFinEnh1 Non-World Bank Group Financing Trust Funds 2.00 Japan Policy and Human Resources Development Fund 2.00 B. Project Development Objective(s) The objective of the proposed free standing technical assistance is to strengthen the functional capacity of the MPI and selected provinces in the formulation and implementation of result-based monitoring and evaluation. The TA is focused on urban development projects in the context of the preparation and implementation of Vietnam Socio- Economic Development Plan 2021-25. C. Project Description The project is proposed at the request of the MPI to help improve the capacity for monitoring and evaluation of projects based on reliable and timely data. The operation is proposed to be a Recipient-executed Trust Fund (RETF). The RETF modality would ensure the ownership and leadership of the counterparts as well as the Oct 21, 2018 Page 2 of 7 The World Bank Vietnam: Strengthening M&E Capacity for Improved Performance of Public Investment Projects effective application of the results of the operation. The engagement and contribution of the Bank will focus on sharing international good practice, ensuring the robustness of the approach and the quality of the outputs. The proposed RETF will contribute to improving Vietnam’s M&E system for public investment projects. The RETF will aim to support the GoV in the implementation of the restructuring program of management of public investment. The RETF activities will help to (i) enhance result-based M&E approach in legal framework and appraisal methodology, (ii) improve the availability and quality of project data, enhance the approach to M&E. As a result, the RETF is expected to strengthen capacity of MPI and relevant stakeholders in the preparation and implementation of the improved regulatory framework for public investment. Finally, the RETF will contribute to the assessment of the SEDP 2016-20 and the formulation of an evidence-based SEDP 2021-25. The adoption of the improved M&E framework of the RETF focuses on the M&E of urban development projects and is expected to complement the on-going technical assistance under the Mekong Delta Region Urban Public Disclosure Copy Upgrading Project (MDRUUP). The project will have three components: Component 1. Review and formulation of a Results-based framework for Public Investment Projects, with pilot for urban projects. Objectives This component will support the MPI to strengthen the result-based framework of public investment projects; and to effectively implement this framework through piloting of urban development projects. Key stakeholders The Department of Investment Supervision and Appraisal (DISA) of MPI will take the lead for this component, as they have the mandate and the leading role in formulation of policies and regulatory framework for appraisal and monitoring of public investment projects. DISA will work with Department of Urban and Infrastructure Development, as well as the selected provincial Departments of Construction and Department of Transport. Their primary focus is on taking stock of urban projects and the current monitoring mechanism and on introducing a new institutionally compatible results-based M&E system. The pilot of the M&E framework will be implemented by the selected Provincial Departments of Construction and Department of Transport, in collaboration with Departments of Planning and Investment. The projects selected for pilot include both non-ODA and ODA projects in the urban sector. The result indicators will be adopted at appraisal stage, which will then be used throughout the project selection, implementation and adjustment to monitor implementation against result. Key activities and outputs Under this Component, DISA will take the overall leading role to carry out the following activities: Oct 21, 2018 Page 3 of 7 The World Bank Vietnam: Strengthening M&E Capacity for Improved Performance of Public Investment Projects  Take stock of the list of the large ongoing projects in urban sector. Review the current M&E system and formulate a result-based framework for public investment projects appraisal and monitoring. The framework will (i) provide sources of information and data for M&E and responsibility of agencies in the data collection; and (ii) include standardized tools for M&E (including M&E plan, project development objectives and log frame, and result indicators).  Pilot the M&E result framework in selected urban projects.  Develop report templates on public investment in line with the new M&E framework.  Formulate necessary legal document(s) and manual(s) to guide the implementation of project appraisal and the M&E framework.  Disseminate the new appraisal and M&E framework and undertake capacity building activities that aim to use of result-based M&E in urban projects. Component 2. Improve the SBIMIS for on-line reporting and monitoring of public investment projects, with Public Disclosure Copy capability to adopt the M&E result framework for analytical, reporting, and forward capital planning and budgeting purpose. Objectives The Component will contribute to assessing and improving the current project database and hence enable the adoption of the M&E framework developed by the first component of this project. The current reporting requirement will be revised in accordance with the result indicators as specified in the M&E framework. An option for this component is to improve the readiness of SBIMIS for effective two-way information sharing between the specific projects including planned expenditures and physical progress captured by SBIMIS with financial disbursements data recorded in TABMIS. The SBIMIS and TABMIS currently share the same project ID code, which will enable the reconciliation of disbursement data from TABMIS to the SBIMIS. In future, when TABMIS data is exported to the revenue-expenditure data warehouse at the MOF, and planned capital allocation can be transferred from SBIMIS to the MOF data warehouse, it is much more effective for the PIM system to monitor disbursement progress of capital projects. It is noted, however, that a formal agreement among stakeholders is needed to facilitate this two-way information sharing and synchronizing between SBIMIS and the data warehouse. The system will be expected to aggregate necessary information with early warning indicators of problem projects for MPI to strengthen their M&E system and make informed policy decision on capital budget allocation. This component will help to provide reliable data about medium-term commitments of on-going projects, which serves as important inputs to formulate the next medium-term investment plan (MTIP 2021- 2025). The component will also help the implementation of the amended Public Investment Law, which requires a move from the current decentralized towards a centralized M&E database. This change requires further improvement of the SBIMIS and its mandatory application in line ministries and provinces. The coverage of the system can be extended to urban projects using provincial own budget. This will provide a complete picture on the whole public investment in Vietnam. Oct 21, 2018 Page 4 of 7 The World Bank Vietnam: Strengthening M&E Capacity for Improved Performance of Public Investment Projects Key stakeholders The leading agency for the online reporting system is the IT Center under MPI, with active participation of the Department for National Economic Issues (DNEI). While the IT Center is in charge of development, management and training for ministries and provinces to report on their public investment projects online, the DNEI is in charge of the preparation of the SEDP, MTIP, as well as the oversight of the overall public investment efficiency. DNEI and DISA are the main beneficiaries and implementing partners on policy analysis and use of project database for policy making at the MPI and selected provinces. Key outputs and activities Formulate online report templates for public investment projects in line with the M&E framework developed in Component 1. Public Disclosure Copy  Improve the online system for reporting on public investment projects to capture these indicators and other needs (including comprehensive coverage, report demand orientation, or early warning indicators of problem projects).  Expand the coverage of the system to urban projects financed by provincial budget and allow provinces to use the system to monitor their own projects.  Assess the readiness of the SBIMIS for two-way sharing capability and connectivity to the MOF national data warehouse and other databases.  Prepare necessary legal documents for rolling out the improved reporting system  Arrange activities for capacity building and support data collection for rolling out the application of the improved on-line reporting and utilization of the project database for reporting and policy making, including the implementation of the amended Public Investment Law. Component 3. Administer the PHRD project. Project Management and Administration: A project implementation unit (PIU) will be established to carry out the day-to-day management of the project. The PIU will hire consultants (including financial management consultant, procurement consultant, and administrative assistant) to help with daily activities. Monitoring and Evaluation: M&E consultants will be hired to develop annual program workplan and monitor progress of the program on a six-monthly and annual basis. The consultants will report to the head of the PIU and share reports with the World Bank. Knowledge Dissemination: A kick-off workshop will be organized to train all relevant staffs participating in the project implementation. All outputs of the project will be disclosed and shared to all relevant stakeholders. Key outputs will include: • Project work plan and budgets Oct 21, 2018 Page 5 of 7 The World Bank Vietnam: Strengthening M&E Capacity for Improved Performance of Public Investment Projects • Project progress reports, including M&E • Financial management and audit reports • Procurement plans SAFEGUARDS D. Project location and salient physical characteristics relevant to the safeguard analysis (if known) The pilot of the M&E framework will be implemented by the selected Provincial Departments of Construction and Department of Transport, in collaboration with Departments of Planning and Investment. The projects Public Disclosure Copy selected for pilot can also include ODA projects in the urban sector. E. Borrower’s Institutional Capacity for Safeguard Policies The project will not trigger any safeguard policies. F. Environmental and Social Safeguards Specialists on the Team Martin Henry Lenihan, Social Specialist Son Van Nguyen, Environmental Specialist G. Policies that might apply Safeguard Policies Triggered by the Project Triggered? Explanation (Optional) Environmental Assessment OP/BP 4.01 No The main activities of the grant include: i) Review and formulation of a Results-based framework for Public Investment Projects Appraisal and Monitoring; ii) Improve the SBIMIS for on-line reporting and monitoring of public investment projects, with capability to adopt business intelligence for analytical, reporting, and capital planning and budgeting purpose; and iii) Administer the TA project. The M&E framework might contain E&S indicators such as climate change indicators. But this project supports the development of the M&E framework, which is not expected to have potential Oct 21, 2018 Page 6 of 7 The World Bank Vietnam: Strengthening M&E Capacity for Improved Performance of Public Investment Projects adverse environmental and social impacts. Therefore, OP 4.01 is not triggered, and the project is classified as a Category C project. Natural Habitats OP/BP 4.04 No Forests OP/BP 4.36 No Pest Management OP 4.09 No Physical Cultural Resources OP/BP 4.11 No Indigenous Peoples OP/BP 4.10 No Involuntary Resettlement OP/BP 4.12 No Safety of Dams OP/BP 4.37 No Projects on International Waterways OP/BP 7.50 No Public Disclosure Copy Projects in Disputed Areas OP/BP 7.60 No H. Safeguard Preparation Plan Appraisal stage ISDS required? No APPROVALS Team Leader(s): Quang Hong Doan Approved By Safeguards Advisor: Peter Leonard 16-Oct-2018 Practice Manager/Manager: Deepak K. Mishra 17-Oct-2018 1Reminder: The Bank's Disclosure Policy requires that safeguard-related documents be disclosed before appraisal (i) by the Bank and (ii) in country by the Borrower/Recipient, at publicly accessible locations and in a form and language that are accessible to potentially affected persons. Oct 21, 2018 Page 7 of 7