The World Bank Implementation Status & Results Report EAC Secretariat: PFM Coordination and Harmonization in EAC Countries (P144846) EAC Secretariat: PFM Coordination and Harmonization in EAC Countries (P144846) AFRICA | Africa | Governance Global Practice | Institutional Development Fund| FY 2013 |Seq No: 2 | ARCHIVED on 11-Oct-2015 | ISR20810 | Implementing Agencies: Key Dates Key Project Dates Board Approval date:26-Mar-2013 Effectiveness Date:15-Aug-2013 Planned Mid Term Review Date:-- Actual Mid-Term Review Date:-- Original Closing Date:15-Aug-2016 Revised Closing Date:15-Aug-2016 Project Development Objectives Project Development Objective (from IDF Proposal) Project Development Objective: Harmonize and coordinate the setting up of Public Financial Management standards amongst EAC PartnerStates (Kenya, Tanzania, Uganda, Rwanda and Burundi) in order to facilitate compliance with the Monetary and Financial Cooperation requirements in the EAC Treaty as a key aspect of becoming a Monetary Union. The IDF will also provide technical support to the Partner States to implement the standards. Has the Project Development Objective been changed since Board Approval of the Project Objective? No PHRPDODEL Components Name Setting of PFM standards:(Cost $114000.00 ) Technical support to implement standards:(Cost $804000.00 ) Audit and fiduciary aspects:(Cost $82000.00 ) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO Satisfactory Satisfactory Overall Implementation Progress (IP) Satisfactory Satisfactory Overall Risk Rating -- Moderate Implementation Status and Key Decisions 10/11/2015 Page 1 of 4 The World Bank Implementation Status & Results Report EAC Secretariat: PFM Coordination and Harmonization in EAC Countries (P144846) The project was launched on November 4, 2013 at the EAC Secretariat by Dr. Enos Bukuku, Deputy Secretary General, EAC Secretariat and Patricia Mc Kenzie, Financial Management Manager, East and Southern Africa. Thereafter, the Heads of State of the Partner States of Tanzania, Kenya, Uganda, Rwanda and Burundi signed the East African Monetary Union (EAMU) Protocol on November 30, 2013 in Kampala, Uganda. The signing of the EAMU Protocol provided legitimacy to the harmonization of Public Financial Management (PFM) in the Partner States as it demanded for this under the following articles: •Article 8 on Fiscal Policies under which section 1 (a) is on harmonization and coordination of fiscal policies; 1 (d) is on harmonization and coordination of budget frameworks; and 1 (e) is on harmonization and coordination of public procurement policies. •Article 16 on Financial Management, Accounting and Reporting under which section 2 states that Partner States shall harmonize their financial accounting and reporting practices. •Article 22 on Harmonization of Policies, Laws and Systems under General Provisions. With this in mind on March 17-21, 2014, a key stakeholders workshop was organized to agree on a number of PFM Standards in the areas of accounting and financial reporting, internal audit, procurement, budgeting, external audit, good practices for Public Accounts Committees of Parliament and professional accounting qualifications. In all areas, the members of the EAC Partner States agreed on PFM standards and therefore met component one's objective. The standards agreed are attached. With regard to component two which is to provide PFM technical support to implement PFM standards, EAC Secretariat has completed the procurement of 9 consultants of which two (Procurement Consultant and Accounting/Financial Reporting Consultant) have commenced technical support to the Partner States while the other 8 consultants will by the end of October 2015 have started providing technical support in line with their contracts. Although the target of the project is to implement 40% of the agreed standards and currently progress is assessed at 10% due to commencement of two consultancy supports to the Partner States, we expect to exceed the target mainly because the project is providing technical support on all the agreed PFM standards. By the end of June 2016, all deliverables will have been achieved ahead of project closure. However, the project is facing a challege to provide all the technical support as demanded by the Partner States due to budget constraints hence there is need to consider providing additional funding to this project using another instrument other than the IDF. 10/11/2015 Page 2 of 4 The World Bank Implementation Status & Results Report EAC Secretariat: PFM Coordination and Harmonization in EAC Countries (P144846) Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance -- -- Moderate Macroeconomic -- -- Low Sector Strategies and Policies -- -- Moderate Technical Design of Project or Program -- -- Low Institutional Capacity for Implementation and Sustainability -- -- Substantial Fiduciary -- -- Low Environment and Social -- -- Low Stakeholders -- -- Moderate Other -- -- -- Overall -- -- Moderate Results Indicators PHINDPDOTBL EAC Secretariat to coordinate with Partner States to agree on PFM Standards(Yes/No,Custom) Baseline Actual (Previous) Actual (Current) End Target Value N -- Y Y Date 26-Mar-2013 -- 15-Sep-2015 15-Aug-2016 PHINDPDOTBL EAC Secretariat to implement 40% of the agreed PFM standards at the time of project closure.(Percentage,Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 10.00 40.00 Date 26-Mar-2013 -- 15-Sep-2015 15-Aug-2016 Data on Financial Performance 10/11/2015 Page 3 of 4 The World Bank Implementation Status & Results Report EAC Secretariat: PFM Coordination and Harmonization in EAC Countries (P144846) Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed Disbursed P144846 TF-14974 Effective USD 1.00 1.00 0.00 0.40 0.60 40% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P144846 TF-14974 Effective 18-Jul-2013 15-Aug-2013 15-Aug-2013 15-Aug-2016 15-Aug-2016 Restructuring History There has been no restructuring to date. Related Project(s) There are no related projects. 10/11/2015 Page 4 of 4