The World Bank Report No: ISR12752 Implementation Status & Results Afghanistan Second Customs Reform and Trade Facilitation Project (P112872) Public Disclosure Copy Operation Name: Second Customs Reform and Trade Facilitation Project Project Stage: Implementation Seq.No: 7 Status: ARCHIVED Archive Date: 28-Dec-2013 (P112872) Country: Afghanistan Approval FY: 2010 Product Line: IBRD/IDA Region: SOUTH ASIA Lending Instrument: Emergency Recovery Loan Implementing Agency(ies): Afghan Customs Department Key Dates Board Approval Date 25-May-2010 Original Closing Date 30-Jun-2014 Planned Mid Term Review Date 17-Mar-2013 Last Archived ISR Date 16-May-2013 Effectiveness Date 28-Dec-2010 Revised Closing Date 30-Jun-2014 Actual Mid Term Review Date 20-Jul-2013 Project Development Objectives Project Development Objective (from Project Appraisal Document) To improve the release of legitimate goods in a fair and efficient manner. Has the Project Development Objective been changed since Board Approval of the Project? Yes No Component(s) Component Name Component Cost Countrywide computerization of Customs Clearance operation 15.89 Installation of executive information systems for Customs allowing real time monitoring of operations 0.05 Development of possible options for cross border Customs-to-Customs (C2C) Cooperation 0.05 Provision of selected Customs infrastructure to enable modernized operations 25.85 Technical assistance to support the development of an adequate regulatory, administrative and 8.59 institutional framework for Customs Public Disclosure Copy Overall Ratings Previous Rating Current Rating Progress towards achievement of PDO Satisfactory Moderately Satisfactory Overall Implementation Progress (IP) Satisfactory Satisfactory Overall Risk Rating Substantial Implementation Status Overview The rate of progress of the project has improved considerably during the past few months. Approximately eighty five percent of project funds stand committed. Implementation of all Page 1 of 10 The World Bank Report No: ISR12752 five project components (Automation through ASYCUDA, improvement to ACD infrastructure, setting up of the Executive Information System, Customs To Customs (C2C) cooperation, and Technical Assistance) is progressing well. The automation of ACD continues to be the main thrust of the project, and is progressing satisfactorily. Approximately 95 percent of all declared trade is processed through Public Disclosure Copy ASYCUDA, which is available in 12 Customs offices. The migration from ASYCUDA++ to the newer web based version ASYCUDA World is also underway. Complementary modules like Entry and Exist gate module, warehousing module, vehicle processing module, and Risk Management modules are also under implementation. Infrastructure development is progressing satisfactorily, with 10 large and 21 smaller civil works related contract completed. A number of these sub-projects were located in insecure areas. The facilities at the new Khost ICD (truck parking, Administration building, boundary wall, warehouses etc.) were completed and handed over to ACD. Similarly the new Administration building and truck parking at Kandahar ICD, and the new warehouses and last phase of truck parking at Jalalabad were completed and handed over to ACD. Two large and four smaller contracts are currently under execution, while one large contract was terminated due to non-performance of the contractor. Management Information and Alert system has started operation. The project is also assisting ACD in development of adequate regulatory, administrative and institutional framework for Customs. Two international Customs expert are currently assisting ACD in review of procedures, development of new five year plan, setting up and strengthening Post Clearance Audit unit, setting up risk management regime etc. Locations Country First Administrative Division Location Planned Actual Afghanistan Wilayat-e Nimroz Zaranj Afghanistan Wilayat-e Nangarhar Towr Kham Afghanistan Herat Toraghundi Afghanistan Wilayat-e Takhar Wilayat-e Takhar Afghanistan Wilayat-e Kandahar Spin Boldak Afghanistan Wilayat-e Nimroz Wilayat-e Nimroz Afghanistan Wilayat-e Balkh Mazar-e Sharif Afghanistan Velayat-e Khowst Khost Public Disclosure Copy Afghanistan Kabul Kabul Afghanistan Wilayat-e Nangarhar Jalalabad Afghanistan Herat Herat Afghanistan Wilayat-e Kandahar Ghulam Hasan Khan Afghanistan Herat Kafir Qala Afghanistan Badakhshan Ishkashem Page 2 of 10 The World Bank Report No: ISR12752 Country First Administrative Division Location Planned Actual Afghanistan Faryab Aqineh Public Disclosure Copy Afghanistan Faryab Andkhoy Afghanistan Kabul Kabul International Airport Afghanistan Wilayat-e Balkh Shahrak-e Hairatan Results Project Development Objective Indicators Indicator Name Core Unit of Measure Baseline Current End Target Number of detections (percent) Number Value 5.50 5.50 7.00 Date 31-Oct-2013 31-Oct-2013 30-Jun-2014 Comments % of non compliant % of non compliant % of non compliant declaration detected through declaration detected through declaration detected through ASYCUDA risk management ASYCUDA risk management ASYCUDA risk management system system system Effective rate (fiscal productivity of Customs) Percentage Value 8.76 13.51 9.34 Date 31-Mar-2010 31-Oct-2013 30-Jun-2014 Comments Economic cost per declaration Amount(USD) Value 8.20 16.61 15.00 Date 31-Mar-2010 31-Oct-2013 30-Jun-2014 Comments EOP target is to stay at or below US$ 15 per declaration Customs Component Indicators from the Text Value Customs LPI is 2.22 (Rank in Customs LPI 2.33 (Rank 99) Target is 2.40 for LPI; (Rank Logistics Performance Index (LPI) 2009 of 104) between 85 and 95) Date 31-Mar-2010 31-Oct-2013 30-Jun-2014 Public Disclosure Copy Comments Source LPI 2012 Subjective user satisfaction surveys Text Value Average rating of 6.5 out of 10 Average user satisfaction Average user satisfaction rating of 6.5 out of 10 rating of 7 out of 10 Date 31-Mar-2010 31-Oct-2013 30-Jun-2014 Comments Survey delayed. Expected to Second round of user be completed by early 2012 satisfaction survey delayed. Results expected by March 2014. Page 3 of 10 The World Bank Report No: ISR12752 Time for clearance Text Value Inland Clearance (avg) 148 1. Inland Clearance Inland Clearance (avg) 90 minutes (avg) 120 minutes. Border minutes Clearance (avg) 30 minutes Border Clearance (avg) 36 Border Clearance (avg) 40 Public Disclosure Copy minutes minutes Date 31-May-2005 31-Oct-2013 30-Jun-2014 Comments The last performance Survey not yet completed due measurement was carried out to security reasons. Revised in May 2005 under the date of completion June 30, ECMTFP. The results have 2013 been used as the baseline Intermediate Results Indicators Public Disclosure Copy Page 4 of 10 The World Bank Report No: ISR12752 Indicator Name Core Unit of Measure Baseline Current End Target Countrywide computerization of Customs Text Value Declaration Processing Full Declaration Processing Declaration and wider Clearance operations System (DPS) operational at (DPS) operational at (i) modules deployed at eleven Public Disclosure Copy five locations (i) Kabul ICD, Kandahar, (ii) Zaranj/Nimroz, regional offices and border (ii) Kabul Airport, (iii) Herat, (iii) Andkhoi, posts. (iv) Mazar, (v) Kunduz Border Posts: (iv) Torkham, (v) Islam Qala, (vi) Hairatan, (vii) Sher Khan Bandar, and (viii) Towrghundi. Farah, Vesh and Khost expected to go live by March 2014. Kabul Parcel Post not priority. Entry exit gate control module operational at Kabul, Jalalabad, Andkhoi, and Herat ICDs. Further rollout underway. Risk Management System operational at five locations (Kabul Airport, Kabul ICD, Mazar ICD, Jalalabad ICD and Herat ICD). Valuation module under operationalization, data migration completed. Vehicle clearance system deployed. Migration from ASYCUDA+ +to ASYCUDA World underway with Kabul ICD, Kabul Airport and Mazar ICD functioning under ASYCUDA World. Date 31-Mar-2010 31-Oct-2013 30-Jun-2014 Public Disclosure Copy Comments ASYCUDA Inland and international transit Text Value Inland transit operational at 5 Inland transit operational at Inland and international transit operational Sub Type axis (i) Torkhum-Jalalabad- (i) Spinboldak/Vesh- operational at Kabul, (ii) Islamqala-Herat- Kandahar-Kabul (Pakistan), (i) Spinboldak/Vesh- Supplemental Kabul, (iii) Hairatan-Mazar- (ii) Zaranj/Nimroz-Kandahar- Kandahar-Kabul (Pakistan), Kabul, (iv) Sherkhan Bander- Kabul (Iran), (iii) Aqina- (ii) Zaranj/Nimroz-Kandahar- Kunduz-Kabul, and (v) Andkhoi-Mazar-Kabul Kabul (Iran), (iii) Aqina- Torghundi-Mazar-Kabul. (Turkmenistan), (iv) Takhar- Andkhoi-Mazar-Kabul Kunduz-Kabul (Tajikistan) and (Turkmenistan), (iv) Takhar- (v) Kabul Airport-Kabul Inland Kunduz-Kabul (Tajikistan), (v) Page 5 of 10 The World Bank Report No: ISR12752 Customs. Ghulam Khan/Babraktown- Khost-Kabul(Pakistan), (vi) International transit under Millak-Herat/Kandahar-Kabul ASYCUDA World now (Iran), (vii) Eshkashim-Mazar- Public Disclosure Copy operational at Torkhum and Kabul (Tajikistan), (viii) Kabul Sherkhan Bandar axis. Airport-Kabul Inland Customs. Islamqala, Torghundi and Vesh under implementation. Installation of executive information systems for Text Value Executive Information System Initially this system was going Executive information system Customs allowing real time monitoring of not available in ACD to be acquired from a third installed inMOF, ACD HQ and operations party as UNCTAD did not five regional offices possess such software, however similar “dashboard” functionality has been added to the ASYCUDA WORLD (AW). A prototype was demonstrated to ACD and the Bank, and recommendations for improvement incorporated. Last three years data migration has been completed, and pilot implemented. Senior Management of MoF and ACD are receiving alerts on mobile through SMS, and also on computers through emails. UNCTAD/ASYCUDA are currently preparing the standard reports/alerts for senior management of ACD and MoF. The module should Public Disclosure Copy be fully functional by March 2013. Date 31-Mar-2010 31-Oct-2013 30-Jun-2014 Comments Development of possible options for cross Text Value No formal C2C cooperation Substantial ground has been C2C Cooperation agreement border Customs-to-Customs (C2C) between Afghanistan and its covered in the area of signed between Afghanistan- Cooperation neighboring counties. Customs to Customs Pakistan, and implemented at cooperation (C2C) between Torkham and Chaman Afghanistan Customs and Page 6 of 10 The World Bank Report No: ISR12752 neighboringCustoms. Data exchange through secure email between ACD and Pakistan Customs for goods Public Disclosure Copy entering and exiting through Torkhum was launched in pilot phase, and is expected to be fully functional by early February 2014. MOU was finalized for C2C cooperation between ACD and Tajikistan Customs, and efforts are being made for formal signing by end of 2013. Dialogue is also underway between ACD and Iranian Customs and ACD and Uzbik Customs for C2C cooperation agreement. Date 31-Mar-2010 31-Oct-2013 30-Jun-2014 Comments C2C cooperation between Afghanistan and its neighboring counties. Provision of selected Customs infrastructure to Text Value Infrastructure development is Improvement of Jalalabad, enable modernized operations progressing satisfactorily, with Kabul ICDs. Construction of 10 large and 21 smaller civil Khost, Nimroz and Andkhoi works related contract ICDs. Improvement/ completed. A number of these construction of Torkham and sub-projects were located in AqinaBorder Posts. insecure areas, and ACD and UNOPS are to be commended for successfully completing these challenging projects. The facilities at the new Khost ICD were Public Disclosure Copy completed and handed over to ACD. Similarly the new Administration building and truck parking at Kandahar ICD, and the new warehouses and last phase of truck parking at Jalalabad were completed and handed over to ACD. Two large and four smaller contracts are currently Page 7 of 10 The World Bank Report No: ISR12752 under execution, while one large contract was terminated due to non-performance of the contractor. The only Public Disclosure Copy concern is that two large civil works contract in Farah Province are yet to be awarded, mainly because of land title and security related issues. Date 31-Mar-2010 31-Oct-2013 30-Jun-2014 Comments Other alternate improvements as agreed between the World Bank and ACD in keeping with the overall results framework. Technical assistance to support the Text Value Following achieved to date: Technical assistance for the development of an adequate regulatory, i. New Customs following areas provided administrative and institutional framework for Strategic Plan. a) Laws and Customs ii. PCA reinvigorating procedures strategy including i. Legislative Review implementation plan. ii. Customs value iii. Policy paper for added activities effective deployment and use iii. Review of Customs of Mobile Verification Teams Clearance Procedures (MVT) by the ACD. b) Customs Control iv. Dubai Workshop c) Organization and Action Plan capacity development v. New examination i. Reorganization plan policy and procedures for ACD including examination reports. ii. Integration and vi. Capacity building of Sustainability Strategy for the valuation section. ASYCUDA Unit vii. Paper on improving iii. Pay and pension Public Disclosure Copy Customs Broker registration. reform package for ACD d) Coordination and partnerships with other government agencies e) Customs Reform and Modernization Unit i. International Customs Unit ii. Monitoring GAAP activities, milestones and Page 8 of 10 The World Bank Report No: ISR12752 benchmarks supported by ICN f) Post Clearance Audit Unit Public Disclosure Copy g) Tariff and Statistics Unit (TRSU) Date 31-Mar-2010 31-Oct-2013 30-Jun-2014 Comments First time during project implementation sufficient number of technical advisors are available to ACD, and are now working on different activities Data on Financial Performance (as of 02-Dec-2013) Financial Agreement(s) Key Dates Project Ln/Cr/Tf Status Approval Date Signing Date Effectiveness Date Original Closing Date Revised Closing Date P112872 IDA-H5680 Effective 25-May-2010 28-Jun-2010 28-Dec-2010 30-Jun-2014 30-Jun-2014 Disbursements (in Millions) Project Ln/Cr/Tf Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P112872 IDA-H5680 Effective XDR 33.30 33.30 0.00 26.45 6.85 79.00 Disbursement Graph Public Disclosure Copy Page 9 of 10 The World Bank Report No: ISR12752 Public Disclosure Copy Key Decisions Regarding Implementation 1. Project to expedite remaining procurements. Restructuring History There has been no restructuring to date. Related Projects There are no related projects. Public Disclosure Copy Page 10 of 10