Document of The World Bank FOR OFFICIAL USE ONLY Report No: ICR00004247 IMPLEMENTATION COMPLETION AND RESULTS REPORT IDA-49140 ON A CREDIT IN THE AMOUNT OF SDR 7.7 MILLION (US$ 12 MILLION EQUIVALENT) TO THE REPUBLIC OF MALI FOR THE ML- GOVERNANCE AND BUDGET DECENTRALIZATION TECHNICAL ASSISTANCE PROJECT (P112821 ) December 11, 2017 Governance Global Practice Africa Region CURRENCY EQUIVALENTS (Exchange Rate Effective December 11, 2017) Currency Unit = XOF XOF 558.90 = US$ 1 XDR 1.00 = US$ 1.41 FISCAL YEAR July 1 - June 30 Regional Vice President: Makhtar Diop Country Director: Soukeyna Kane Senior Global Practice Director: Deborah L. Wetzel Practice Manager: Chiara Bronchi Task Team Leader: Ragnvald Michel Maellberg ICR Task Team Leader: Yemdaogo Tougma ICR Contributing Author: Michael Christopher Jelenic ABBREVIATIONS AND ACRONYMS AFD Agence Française de Développement (French Development Agency) AfDB African Development Bank AFRITAC Africa Regional Technical Assistance Center ANICT Agence Nationale d'Investissement des Collectivités Territoriales (National Local Investment Agency) ARMDS Autorité de Régulation des Marchés Publics et des Délégations de Service Public Procurement Regulatory Agency ASACO Association de Santé Communautaire (Community Health Associations) ASDI Swedish International Development Agency BCEAO Banque Centrale des Etats de l’Afrique de l’Ouest (Central Bank of West African States) BP Bank Procedures BVG Bureau du Vérificateur Général (Office of Auditor General) CADD Cellule d'Appui à la Décentralisation et à la Déconcentration (Deconcentration and Decentralization Support Unit) CAP Centre d’Animation Pédagogique (School Management Committees) CAISFF Cellule d’Appui à l’Informatisation des Services Fiscaux et Financiers (Unit for the Computerization of Fiscal Services) CARFIP Cellule d’Appui à la Réforme des Finances Publiques (Unit for the Support of Public Finance Reform) CAS Country Assistance Strategy CDI Commissariat au Développement Institutionnel (Institutional Development Commissariat) CFAF Franc of the African Finance Community CIDA Canadian International Development Agency CPAR Country Procurement Assessment Report CPS Cellule de Planification et de Statistique (Planning and Statistics Unit) CGSP Contrôle Général des Services Publics (Public Services General Control) CNFL Comité National des Finances Locales (National Committee of Local Finance) CQS Consultant Qualification-based Selection CNSC Conseil National de la Société Civile (National Council for Civil Society) CREDD Cadre Stratégique pour la Relance Economique et le Développement Durable (Strategic Framework for Economic Recovery and sustainable Development) CSCOM Centre de Santé Communautaire (Community Health Center) CSREF Centre de Santé de Référence (Health Referral Center) CT Collectivité territoriale (Territorial Collectivity) DA Designated Account DFM Direction des Finances et du Matériel (Department of Finance and Material) DGB Direction Générale du Budget (General Directorate of the Budget) DGI Direction Générale des Impôts (General Directorate of Taxation) DGMP Direction Générale des Marchés Publics (General Procurement Department) DNCF Direction Nationale du Contrôle Financier (General Directorate of Financial Control) DNCT Direction Nationale des Collectivités Territoriales (National Directorate of Territorial Collectivities) DNDC Direction Nationale du Domaine et du Cadastre (National Directorate of Land Affairs and Land Registry) DNTCP Direction Nationale du Trésor et de la Comptabilité Publique (National Treasury and Public Accounting Department) DPL Development Policy Loan DSP Délégation de Service Public (Delegation of Public Services) EC European Commission FM Financial Management FENASCOM Fédération Nationale des Associations de Santé Communautaire du Mali (National Federation of Community Health Associations) GAC Governance and Anti-Corruption GBDTA Governance and Budget Decentralization Technical Assistance GNI Gross National Income GPRSF Growth and Poverty Reduction Strategy Framework GTZ German Technical Cooperation Agency HDR Human Development Report IDA International Development Association IA Implementing Agency ICB International Competitive Bidding IDTA Institutional Development Technical Assistance IFRS International Financial Reporting Standard IEG Independent Evaluation Group IMF International Monetary Fund INSTAT Institut National de la Statistique (National Institute of Statistics) LCS Least Cost Selection MATCL Ministère de l’Administration Territoriale et des Collectivités Locales (Ministry of Territorial Administration & Local Governments) MDG Millennium Development Goal MEALN Ministère de l’Education, de l’Alphabétisation et des Langues Nationales (Ministry of Education, Literacy and National Languages) M&E Monitoring and Evaluation MEF Ministère de l’Economie et des Finances (Ministry of Economy and Finance) MLAFU Ministère du logement, des affaires foncières et de l'urbanisme (Ministry of Housing, Land Affairs and Urban Development) MoU Memorandum of Understanding MTEF Medium-Term Expenditure Framework NCB National Competitive Bidding NGO Non-Governmental Organization OECD Organization of Economic Cooperation and Development OHADA Organisation pour l’Harmonisation en Afrique du Droit des Affaires (Organization to Harmonize Business Law in Africa) OP Operational Policy ORAF Operational Risk Assessment Framework PAD Project Appraisal Document PAGAM/GFP Plan d'Action Gouvernemental d'Amélioration et de Modernisation de la Gestion des Finances Publiques (Action Plan to Strengthen and Modernize PFM) PDI Programme de Développement Institutionnel (Institutional Development Program) PDO Project Development Objectives PEFA Public Expenditure and Financial Accountability PEMFAR Public Expenditure Management and Financial Review PFAAM Project Financial, Accounting and Administrative Manual PETS Public Expenditure Tracking Surveys PFM Public Financial Management PISE Programme d'Investissement du Secteur de l'Education (Education Sector Investment Program) PRED Computerized Budget Expenditure Management Software PRODEC Programme décennal de développement de l'éducation (Ten Year Education Development Program) PRODESS Programme de Développement Socio-Sanitaire (Health and Social Development Program) PRSC Poverty Reduction Support Credit PTF Partenaires Techniques et Financiers (Donors) QBS Quality Based Selection QCBS Quality and Cost Based Selection REI Request of Expression of Interest ROSC Reports on the Observance of Standards and Codes SBD Standard Bidding Documents SCCS Section des Comptes de la Cour Suprême (Audit Section of the Supreme Court) SDR Special Drawing Rights SN Sub-National SOE Direct Payment and Statement of Expenditures SSS Single Source Selection SYSCOHADA West African Accounting Reference System TA Technical Assistance TICC Technical Implementation Coordination Committee UNDP United Nations Development Program UNICEF United Nations Children's Fund USAID United States Agency for International Development WAEMU West African Economic and Monetary Union TABLE OF CONTENTS DATA SHEET .....................................................................................................................................1 I. PROJECT CONTEXT AND DEVELOPMENT OBJECTIVES ............................................................6 A. CONTEXT AT APPRAISAL .........................................................................................................6 B. SIGNIFICANT CHANGES DURING IMPLEMENTATION (IF APPLICABLE)........................................9 II. OUTCOME ...............................................................................................................................12 A. RELEVANCE OF PDOs ............................................................................................................12 B. ACHIEVEMENT OF PDOs (EFFICACY) ......................................................................................12 C. EFFICIENCY ...........................................................................................................................19 D. JUSTIFICATION OF OVERALL OUTCOME RATING ...................................................................20 E. OTHER OUTCOMES AND IMPACTS (IF ANY) ............................................................................20 III. KEY FACTORS THAT AFFECTED IMPLEMENTATION AND OUTCOME ...................................22 A. KEY FACTORS DURING PREPARATION ...................................................................................22 B. KEY FACTORS DURING IMPLEMENTATION .............................................................................23 IV. BANK PERFORMANCE, COMPLIANCE ISSUES, AND RISK TO DEVELOPMENT OUTCOME ...25 A. QUALITY OF MONITORING AND EVALUATION (M&E) ............................................................25 B. ENVIRONMENTAL, SOCIAL, AND FIDUCIARY COMPLIANCE .....................................................27 C. BANK PERFORMANCE ........................................................................................................... 27 D. RISK TO DEVELOPMENT OUTCOME .......................................................................................29 V. LESSONS AND RECOMMENDATIONS ....................................................................................30 ANNEX 1. RESULTS FRAMEWORK AND KEY OUTPUTS ................................................................32 ANNEX 2. BANK LENDING AND IMPLEMENTATION SUPPORT/SUPERVISION ............................54 ANNEX 3. PROJECT COST BY COMPONENT ..................................................................................56 ANNEX 4. EFFICIENCY ANALYSIS ...................................................................................................57 ANNEX 5. BORROWER, CO-FINANCIER AND OTHER PARTNER/STAKEHOLDER COMMENTS.....60 ANNEX 6. SUPPORTING DOCUMENTS (IF ANY) ............................................................................61 The World Bank ML- Governance and Budget Decentralization Technical Assistance Project ( P112821 ) DATA SHEET BASIC INFORMATION Product Information Project ID Project Name ML- GOVERNANCE AND BUDGET DECENTRALIZATION P112821 TECHNICAL ASSISTANCE PROJECT ( P112821 ) Country Financing Instrument Mali Technical Assistance Loan Original EA Category Revised EA Category Not Required (C) Not Required (C) Organizations Borrower Implementing Agency Ministere de l'Economie et des Finances Ministere de l'Economie et des Finances Project Development Objective (PDO) Original PDO The development objective of the Governance and Budget Decentralization TA Project (TA) is to strengthen capacity for public financial management at decentralized level for improved budgetary decision-making and enhanced transparency and oversight. Page 1 of 66 The World Bank ML- Governance and Budget Decentralization Technical Assistance Project ( P112821 ) FINANCING Original Amount (US$) Revised Amount (US$) Actual Disbursed (US$) World Bank Financing 12,000,000 12,000,000 9,995,117 IDA-49140 Total 12,000,000 12,000,000 9,995,117 Non-World Bank Financing Borrower 0 0 0 Total 0 0 0 Total Project Cost 12,000,000 12,000,000 9,995,117 KEY DATES Approval Effectiveness MTR Review Original Closing Actual Closing 28-Apr-2011 08-Aug-2011 07-Oct-2014 15-Dec-2014 30-Jun-2017 RESTRUCTURING AND/OR ADDITIONAL FINANCING Date(s) Amount Disbursed (US$M) Key Revisions 27-Jun-2014 4.27 Change in Results Framework Change in Components and Cost Change in Loan Closing Date(s) Change in Implementation Schedule 06-May-2016 7.55 Change in Results Framework Change in Loan Closing Date(s) Change in Safeguard Policies Triggered Change in Implementation Schedule KEY RATINGS Outcome Bank Performance M&E Quality Satisfactory Satisfactory Modest Page 2 of 66 The World Bank ML- Governance and Budget Decentralization Technical Assistance Project ( P112821 ) RATINGS OF PROJECT PERFORMANCE IN ISRs Actual No. Date ISR Archived DO Rating IP Rating Disbursements (US$M) 01 17-Dec-2011 Satisfactory Satisfactory .67 Moderately 02 11-Jul-2012 Moderately Satisfactory .67 Unsatisfactory Moderately 03 15-Apr-2013 Moderately Unsatisfactory 1.23 Unsatisfactory Moderately 04 12-Feb-2014 Moderately Unsatisfactory 1.94 Unsatisfactory 05 07-Oct-2014 Moderately Satisfactory Moderately Satisfactory 3.15 06 26-Jun-2015 Moderately Satisfactory Moderately Satisfactory 4.17 07 24-Dec-2015 Moderately Satisfactory Moderately Satisfactory 4.49 08 30-Jun-2016 Moderately Satisfactory Satisfactory 5.70 09 20-Jun-2017 Satisfactory Moderately Satisfactory 6.43 SECTORS AND THEMES Sectors Major Sector/Sector (%) Public Administration 100 Central Government (Central Agencies) 10 Sub-National Government 70 Education 100 Public Administration - Education 10 Health 100 Public Administration - Health 7 Page 3 of 66 The World Bank ML- Governance and Budget Decentralization Technical Assistance Project ( P112821 ) Social Protection 100 Social Protection 3 Themes Major Theme/ Theme (Level 2)/ Theme (Level 3) (%) Economic Policy 5 Fiscal Policy 5 Tax policy 5 Public Sector Management 92 Public Finance Management 28 Public Expenditure Management 23 Domestic Revenue Administration 5 Public Administration 64 Administrative and Civil Service Reform 6 Transparency, Accountability and Good 23 Governance Municipal Institution Building 35 Social Development and Protection 3 Social Inclusion 3 Participation and Civic Engagement 3 ADM STAFF Role At Approval At ICR Regional Vice President: Obiageli Katryn Ezekwesili Makhtar Diop Country Director: Mary Kathryn Hollifield Yaye Seynabou Sakho Senior Global Practice Director: Marcelo Giugale Deborah L. Wetzel Practice Manager: Jan Walliser Chiara Bronchi Task Team Leader(s): Clara Ana Coutinho De Sousa Ragnvald Michel Maellberg ICR Contributing Author: Michael Christopher Jelenic Page 4 of 66 The World Bank ML- Governance and Budget Decentralization Technical Assistance Project ( P112821 ) Executive Summary: In 2010, the World Bank prepared the Governance and Budget Decentralization Technical Assistance (GBDTA) Project for the Republic of Mali in the amount of SDR 7.7 million (US$12.0 million equivalent). The project development objective was to strengthen capacity for public financial management at decentralized level for improved budgetary decision-making and enhanced transparency and oversight. As such, this evaluation is organized around relevance, efficacy, and efficiency of three project outcomes areas: (i) Strengthened Capacity for Public Financial Management at the Decentralized Level; (ii) Improved Budgetary Decision-Making; and (iii) Enhanced Transparency and Oversight. A summary of the ratings presented in this ICR is described as follows: x Relevance: Project Relevance is rated High at project closure as the project objectives are in direct alignment with the Country Partnership Framework (CPF), which sets out the Bank’s proposed strategy in Mali for the period FY16-19. x Efficacy: Project Efficacy is rated Substantial based on the ratings for each of the three outcome areas enumerated in the PDO. Under outcome area one, the project Efficacy was High in Strengthening the PFM Capacity at the Decentralized Level as the project achieved all PDO and intermediate indicators related to this outcome area. Likewise, under outcome area two, the project Efficacy was Substantial in Improving Budgetary Decision-Making as the project achieved all PDO and intermediate indicators related to this outcome area. Finally, under outcome area three, the project Efficacy was Substantial in Enhancing Transparency and Oversight given that the project fully achieved one PDO indicator and partially achieved the other PDO indicator, and all but one intermediate indicator was met related to this outcome area. x Efficiency: Project Efficiency is rated Substantial as it has produced a number of financial and economic benefits, including: (i) a 39.31 billion CFA (US$ 70 million equivalent) cumulative increase in local revenues in targeted districts over the baseline “counterfactual” scenario; (iii) a reduction in the time required for the treatment of procurement files over the life of the project; and (iii) a high level of implementation efficiency, given that more project actives were implemented than planned, given a final disbursement rate of 88%. x Overall Outcome Rating: The overall outcome rating for the project is Satisfactory based on assessments of project Relevance, average Efficacy of the three outcome areas, and Efficiency, as aforementioned above. Given both the success and challenges noted during project preparation and implementation of the project, a number of lessons can be drawn to inform future operations, including: (i) The importance of setting up a dedicated PIU to implement PFM project instead of using Government PFM reform unit to monitor the implementation, especially in an FCV environment; (ii) The importance of focusing on capacity building and improve dialogue between Government and citizens through adoption of adequate practical tools in a Fragile Conflict and Violence affected context; (iii) Successful and timely implementation of project activities depends on adequate levels of technical assistance; (iv) Capacity building on an institutional level cannot be viewed as just a one-off intervention, but rather, demands ongoing support given that adequate human resources can evaporate quickly; (v) The importance of supporting policies though a DPO, which is linked to technical assistance from an IPF, in order to support commitment, coordination, and cooperation in FCV environments; and (vi) The importance of ensuring strong project leadership and ownership as well as adaptive project management, both of which were critical elements in putting the project back on track during the conflict. Page 5 of 66 The World Bank ML- Governance and Budget Decentralization Technical Assistance Project ( P112821 ) I. PROJECT CONTEXT AND DEVELOPMENT OBJECTIVES A. CONTEXT AT APPRAISAL Context: 1. Mali is a vast, landlocked, and geographically diverse country, with a population of approximately 18 million people in 2016. At the time of appraisal, Mali had a Gross National Income per capita of US$680 and was ranked 163rd out of 172 countries in the UNDP’s 2011 Human Development Index. The economy is predominantly rural and informal, with 73 percent of the population residing in rural areas and 80 percent of jobs in the informal sector. The country can be divided along a north-south axis, with the large northern region extending into the Sahara and Sahel, and the South accounting for the majority of economic activity. Insecurity in Northern Mali persists, resulting from a confluence of issues, including illicit trafficking, global and regional terror networks, and various armed groups connected to the legacy of insurgencies in the region. 2. While Mali experienced an overall drop in national poverty from 55.6 percent in 2001 to 43.6 percent in 2010, regional differences persist and Mali’s high population growth puts excessive pressure on public resources for service delivery. Despite a regular increase in access and a three-fold increase in health financing over recent years, Mali was lagging in terms of meeting the health-related Millennium Development Goals (MDGs) at the time of appraisal. The 2006 Demographic and Health Survey (DHS) showed infant mortality at 96 per 1,000 live births, and maternal mortality at 464 per 100,000 live births, with maternal mortality rates higher in rural areas where access to emergency obstetric care is limited by large geographic distances to health facilities and scarce resources. While primary education enrollment increased to 75 percent in 2006, Mali ranked well below the sub-Saharan Africa (SSA) average of 92 percent for primary enrollment rate. Likewise, the enrollment rate for girls at slightly above 50 percent ranked below the SSA average. 3. As a result of the above-mentioned challenges to the provision of services, decentralization emerged as a central agenda in improving governance and public service delivery in Mali. Following the collapse of the military regime in 1991, the National Conference unanimously adopted decentralization as a fundamental basis for the development of the country, and this led to its enshrinement in the 1992 Constitution. Decentralization was stepped up again in 1999, with the creation of 701 municipalities (Collectivités Territoriales, CTs), grouped in 49 districts (cercles), covering eight regions plus the district of Bamako. The Government is represented in each region by a governor, who oversees entities that represent the principal functions of the ministries (e.g. taxes and customs, treasury, education, health, transport, etc.). These entities execute deconcentrated government expenditures at the regional level and provide assistance to the decentralized departments of local governments (municipalities and regional assemblies). Local governments have their own resources and autonomous budgets, which consist of: (i) local tax revenues collected with the help of the tax authorities; (ii) government budget transfers in the form of solidarity subsidies to make up for regional disparities; and (iii) investment grants funded by the government and donors, which are administered through the National Local Government Investment Agency (ANICT). 4. Over the years, considerable progress was made in the adoption of legal instruments and the effective establishment of deconcentrated and decentralized entities; however, a number of challenges remained at the time of appraisal. In particular, a government-commissioned review highlighted the following constraints to deconcentration and decentralization: (i) insufficient clarity regarding the responsibilities on local and regional development transferred to the local authorities; (ii) weak consultation between the deconcentrated services and the local administrations and Page 6 of 66 The World Bank ML- Governance and Budget Decentralization Technical Assistance Project ( P112821 ) lack of planning coordination between the two administrations; (iii) competences transferred to CTs that have not been accompanied by the necessary resources; (iv) resource mobilization capacity of CTs which is weak, rendering them dependent on transfers either from the central government or from unpredictable donor resources; (v) poor management of functions transferred due to weak capacity of subnational entities’ personnel and the inability to hire and retain skilled staff; (vi) excessive concentration, at the central level, of human resources and decisions for implementation of public expenditure; and (vii) inadequate involvement of the civil society. In addition to these issues, the 2010 Implementation Report of the First Action Plan for the Strengthening and Modernization of Public Financial Management (PAGAM I) noted that information and accountability systems were poorly defined. 5. In this context, the Government of Mali asked for Bank support to strengthen governance and advance the fiscal decentralization agenda. The request came on the basis of a history of successful engagement with the Bank in the preceding years, which was based on strengthening the analytical basis on which decisions were taken by policy makers, advancing the policy agenda through DPFs and dialogue, and leveraging support from other donors 1. Accordingly, continued Bank support was deemed critical to consolidate the good institutional progress made to date as well as to contribute to the achievement of the fourth strategic goal of the Plan d’Action Gouvernemental d’Amélioration et de Modernisation de la Gestion des Finances Publiques (PAGAM)—namely, that deconcentration and decentralization are reinforced by an appropriate Public Financial Management (PFM) system—as well as respond to key bottlenecks identified in reports including the 2009 Mali Public Expenditure Management and Financial Review (PEMFAR), the 2010 Action Plan to Strengthen and Modernize PFM (PAGAM-GFP) Implementation Report, the 2010 Draft PEFA Update, as well as a Mali 2010 Stakeholder Analysis. At the time of appraisal, the Bank’s involvement in strengthening capacity was rendered even more urgent in light of a 2008 instruction from the Prime Minister’s Office (Instruction 08/0003/PM, of 11/21/2008), which established that from 2010, budget lines in Education and Health would be gradually allocated to CTs, districts, and regions. 6. In response to the Government’s request for assistance, the Bank prepared the Governance and Budget Decentralization Technical Assistance (GBDTA) Project for the Republic of Mali in the amount of SDR 7.7 million (US$12.0 million equivalent). The operation was designed to strengthen governance and public financial management (PFM) in the Malian context of decentralization, which was a necessary step to improve basic social service delivery. As such, the activities to be financed by the operation were selected from the Second Action Plan for the Strengthening and Modernization of Public Financial Management (PAGAM II) taking into account their criticality and linkages with the support that has been provided under various development policy operations, notably PRSC-3 to PRSC-5. Theory of Change (Results Chain) 7. The overarching theory of change is organized around three project outcomes, which are captured in the PDO and are supported by the projects components. Under component one, the theory of change is that improving resource mobilization, budget preparation and monitoring, procurement capacity, and accounting and internal controls at the local level will lead to an improvement in capacity for PFM at the decentralized level (outcome 1). Likewise, under component two, the development of allocation criteria for resources in the health and education sectors as well as the building of capacity to formulate budgets and oversee resource use, will help to improve budgetary decision making in those sectors (outcome 2). Finally, by building capacity for external audit and developing citizen participation mechanisms, the project seeks to improve the transparency and oversight environment (outcome 3). As presented in Annex 1 (page 48), a full theory of changes links project inputs, activities, outputs, outcomes, and impacts. 1 Including, inter alia, support provided under the PRSC 3-5 DPF series. Page 7 of 66 The World Bank ML- Governance and Budget Decentralization Technical Assistance Project ( P112821 ) Project Development Objectives (PDOs) 7. The development objective of the Governance and Budget Decentralization TA Project is to strengthen capacity for public financial management at decentralized level for improved budgetary decision-making and enhanced transparency and oversight. Key Expected Outcomes and Outcome Indicators 8. The Governance and Budget Decentralization TA Project defined core indicators, which were aligned with the PAGAM II results framework. These original outcome indicators include the following: x Beneficiaries, percentage of which are women; x Quarter of the year in which CTs are provided information on current and investment budgetary resources to be transferred to them from the central level; x Number of days required for the treatment of procurement files; x Percent of CT (pilot regions) preparing and publishing annual reports on resources available to the education sector; and x Share of submitted management accounts (decentralized entities) reviewed and judged by the SCCS. Components Component 1: Strengthening Capacity for PFM at Decentralized Level (US $7.1 million) x Sub-component 1.1: Resource mobilization at decentralized level (US $1.6 million): This sub-component was designed to support the formulation of a local taxation framework consistent with the overall fiscal framework of the State and strengthen capacity for its implementation, including through training activities. x Sub-Component 1.2: Budget preparation and monitoring (US $1.4 million): This sub-component was designed to strengthen capacity to generate and use financial information aimed at improving budgetary related decision-making at decentralized levels, including identifying resources to be transferred to CTs, strengthening linkages among budgets at all levels, enhancing forecasting capacity and preparing guidelines on monitoring and evaluation. x Sub-component 1.3: Procurement (US $2.4 million): This sub-component was designed to strengthen the regulatory framework for procurement in line with regional guidelines, disseminate procurement laws, regulations and guidelines and strengthen capacity for effective implementation, including through the introduction of information technology (IT) tools and training of civil servants in their use. x Sub-component 1.4: Accounting and internal controls (US$1.7 million): This sub-component was designed to enhance accounting and internal controls by extending double accounting to all treasury agencies ( recettes- perceptions) at deconcentrated levels, introducing new IT tools and training civil servants, and establishing the internal control framework for administration entities at deconcentrated levels. Component 2: Pilot New PFM Tools in the Basic Education and Health Sectors (US $2.0 million) x Sub-component 2.1: Education Pilot (US$1.2 million): This sub-component was designed to prepare and pilot the implementation of criteria for the territorial allocation of resources in the education sector to CTs, including the preparation of guidelines for supervision of education related projects, formulation and piloting of a participatory Page 8 of 66 The World Bank ML- Governance and Budget Decentralization Technical Assistance Project ( P112821 ) monitoring and evaluation system and the introduction of public expenditure tracking surveys and beneficiary surveys as management tools. x Sub-component 2.2: Health Pilot (US$0.8 million): This sub-component was designed to implement, on a pilot basis, criteria for the territorial allocation of resources in the health sector to CTs and service providers in selected regions, the preparation of guidelines for management of public and community health centers and the introduction of public expenditure tracking surveys (PETS), and beneficiary surveys as management tools. Component 3: External Oversight and Community Participation (US$ 1.7 million) x Sub-component 3.1: External audit (US$1.3 million): This sub-component was designed to build capacity for fiduciary oversight at the centralized and decentralized levels through technical assistance to accompany the institutional transition from Audit Section of the Supreme Court to the Accounts Court, the drafting of a code of ethics for financial judges, the training of new auditors in auditing of public accounts, and the strengthening of a framework for external audits at the decentralized level. x Sub-component 3.2: Participation (US$ 0.4 million): This sub-component was designed to establish a framework for effective participation of key stakeholders (including women and youth) in the monitoring and evaluation of the allocation and use of public resources, development of “Citizen Budgets”, establishment and implementation of a mechanism for the collection and treatment of financial data to inform community surveillance committees, and provision of training on its use. Component 4: Project Implementation and Coordination (US $1.2 million): This sub-component was designed to support for the implementation, coordination, monitoring and evaluation of the project. B. SIGNIFICANT CHANGES DURING IMPLEMENTATION (IF APPLICABLE) Revised PDOs and Outcome Targets 9. No Changes were made to the PDO, including the three project outcome areas, during the implementation period of the project. However, outcome and output indicators as well as related targets were updated through the course of two Level 2 restructurings to better reflect project impact and adjust to current circumstances. The project outcomes were never changed and in cases where outcome targets were revised, they were done so to ensure a higher level of ambition in project results; hence, a split rating is not necessary (as per the Revised 2017 ICR Guidelines). Revised PDO Indicators 10. Through a series of two Level 2 restructurings, the PDO indicators were revised to better articulate the relation between inputs, outputs, and outcomes of the project. New indicators at the intermediate level have also been introduced to reflect the contribution of new project activities. As such, the following PDO indicators are the ones applicable at project closing and will be used to evaluate project efficacy (table 1 provides a list of all changes to indicators). x Number of days required for the treatment of procurement files; x Time necessary to consolidate data at central level on fiscal revenues at the CT level; x New Quarterly report of resources transferred to the education sector to pilot CTs based on the M&E of expenditure software and of pilot CTs having done reporting on the use of their resources; Page 9 of 66 The World Bank ML- Governance and Budget Decentralization Technical Assistance Project ( P112821 ) x Citizen’s control report produced by the Surveillance committees (Comités de Veille) and the CNSC to improve public service quality; and x Number of Management accounts from CTs reviewed and judged by the SCCS as compared to their annual work program. Table 1: History of Changes to PDO Indicators At Approval (April 4, 2011) Restructuring 1 (June 27, 2014) Restructuring 2 (May 10, 2016) Beneficiaries, of which percentage of women DROPPED Quarter of the year in which CTs are provided DROPPED information on current and investment budgetary resources to be transferred to them from the central level Number of days required for the treatment of REVISED: No longer tracked for regions, but REVISED: Target Revised Upwards. procurement files only for national level. Targets Revised Upwards. Percent of CT (pilot regions) preparing and DROPPED publishing annual reports on resources available to education sector Share of submitted management accounts REVISED: Target Revised Upwards DROPPED (decentralized entities) reviewed and judged by the SCCS NEW: Citizen’s control report produced by REVISED: Target Revised Upwards. the Surveillance committees (Comités de Veille) and the CNSC to improve public service quality NEW: New Quarterly report of resources REVISED: Target Revised Upwards. transferred to the education sector to pilot CTs based on the M&E of expenditure software and of pilot CTs having done reporting on the use of their resources NEW: Local fiscal revenues to total DROPPED revenue of Territorial Communities (CT) NEW: Number of Management accounts from CTs reviewed and judged by the SCCS as compared to their annual work program. NEW: Time necessary to consolidate data at central level on fiscal revenues at the CT level. Revised Components 11. No changes were made to the project components during implementation; however, reallocations of funds between components—although not categories—were made during the Level 2 restructuring that occurred in June 2014. As noted in annex 1, resources amounting to USD 1.6 million were identified, which were allocated to new activities or to scale up existing activities in order to enhance the results achieved and better match the government’s priority reform areas. Page 10 of 66 The World Bank ML- Governance and Budget Decentralization Technical Assistance Project ( P112821 ) Other Changes 12. In addition to the changes to the components costs as well as the changes to the output and outcomes indicators noted above, additional changes were made through the two restructurings, including: x Change in Loan Closing Dates: During the first restructuring in December 2014, an 18-month extension of loan closing date from December 15, 2014 to June 15, 2016 was granted by the Country Director to ensure successful project completion. In May 2016, a second extension of loan closing date from June 30, 2016 to June 30, 2017 was approved by the Regional Vice President as it involved a loan closing date extension of 2.5 years cumulatively beyond the original loan closing date. x Change in Disbursement Schedules: In addition to the change in loan closing dates, the respective restructurings involved changes in the project disbursement schedules in order to allow for effective use of funds by the final closing date of June 30, 2017. x Change in Project Risk Rating: Related to the two Level 2 restructurings was a change in the project risk rating from Moderate to Substantial given risks stemming in particular from the fragile and volatile political and security environment. No changes were made with respect to the overall project safeguards category, which remain rated as C over the project life. Rationale for Changes and Their Implication on the Original Theory of Change 13. As there were no changes to the PDO or larger outcomes for which the project was responsible, there were limited implications for the original theory of change noted above. The rationale for these changes that occurred through the two Level 2 restructurings was as follows: x Extension of Loan Closing Date: The first extension of loan closing date was justified due to the delays in implementation of the project related to the 2012 crisis as well as by overly complex implementation arrangements with no dedicated unit for project implementation and a low readiness to implement. Likewise, the second restructuring was justified as additional time was necessary to finalize the implementation of on-going activities as well as the implementation risks related to the overall country context which caused additional delays. x Changes in Component Activities and Costs: Some activities were cancelled as they were no longer a priority for the Government whereas other activities had their scope expanded to accommodate beneficiary needs. Finally, some activities were fully implemented using less than budgeted resources and these resources were allocated to new and emerging areas to scale up results. The choice of new activities including the scaling up of existing activities were made based on the following criteria: (i) the activity had a positive impact in achieving the PDO; (ii) the activity was implemented before the end of the new project completion date; as well as (iii) the absorptive capacity of the government. x Changes in Indicators: Although the PDO remained unchanged, outcome and output indicators were updated to better reflect project impact and adjust to current project circumstances. Accordingly, the revised indicators better articulate the relation between inputs, outputs, and outcomes of the project. New indicators were also introduced at the intermediate level to reflect the contribution of new project activities. Page 11 of 66 The World Bank ML- Governance and Budget Decentralization Technical Assistance Project ( P112821 ) II. OUTCOME A. RELEVANCE OF PDOs Assessment of Relevance of PDOs and Rating Relevance Rating: High 14. The project remains highly relevant at project closure2 and is in direct alignment with the Country Partnership Framework (CPF), which sets out the Bank’s proposed strategy in Mali for the period FY16-19. The current CPF orients Bank engagement around three areas of focus, including: (i) improving governance by strengthening public resource management at central and local levels and fostering citizen engagement; (ii) creating economic opportunities by enhancing the productive capacity of smallholders, increasing agricultural value added and diversification to catalyze transformation, and improving basic services by developing infrastructure and connectivity; and (iii) building resilience by developing human capital, strengthening safety nets, improving risk management mechanisms for the poor and vulnerable, and mitigating climate shock. 15. Given these CPF objectives, the Governance and Budget Decentralization Technical Assistance Project (GBDTA) supports key CPF outcomes under pillar one, including: (i) improved public expenditure efficiency at the central and local level; and (ii) increased involvement of citizens in public affairs. The project is highly relevant to the first outcome area given the capacity it built in key PFM functions—including tax collection, budget planning and execution, procurement, accounting and control, and external oversight—with a particular focus at the decentralized level. Likewise, the project remains directly relevant to the second outcome area through its support to building the oversight capacity of civil society organizations (e.g. surveillance committees) as well as its support of participatory citizen engagement mechanisms such as the public expenditure tracking surveys (PETS) and beneficiary surveys in the health and education sectors. B. ACHIEVEMENT OF PDOs (EFFICACY) 16. As noted above in the project theory of change (Figure 1), the PDO can be decomposed into three key outcome areas, which will be evaluated individually and then combined into an overall outcome rating for the efficacy of the project. Accordingly, the three outcome areas include: (i) Strengthened Capacity for Public Financial Management at the Decentralized Level; (ii) Improved Budgetary Decision-Making; and (iii) Enhanced Transparency and Oversight. The performance of each outcome area, including the achievement of related outputs and indicator targets are described in detail below. Outcome Area 1: Strengthened Capacity for PFM at the Decentralized Level Outcome Rating: High 17. Under outcome area one, the project Efficacy was High in Strengthening the PFM Capacity at the Decentralized Level. As noted above, this outcome was supported by four intermediate outcome areas (represented as subcomponents), 2It should be noted that the project was also highly relevant at appraisal; however, this analysis is included in detail in the preparation and quality at entry sections. Page 12 of 66 The World Bank ML- Governance and Budget Decentralization Technical Assistance Project ( P112821 ) including: (i) Improved Resource Mobilization at Local Level; (ii) Improved Budget Preparation and Monitoring; (iii) Improved Procurement; and (iv) Improved Accounting and Internal Controls. While a full list of outputs related to these outcomes is provided in Annex 1.B, key achievements of this outcome area include the following: x Improved Resource Mobilization at Local Level: Project support was instrumental in the preparation and implementation of a local tax policy as well as an implementation strategy, thereby improving resource mobilization potential in the targeted districts. Moreover, project support greatly improved the capacity of the National Directorate of Territorial Collectivities (DNCT) through training on new estate management procedures and equipping local tax centers with the necessary IT equipment and solar kits, which ensure continual operations despite power outages. Finally, the project helped to assemble a dossier of legal tools related to local taxation (e.g. laws, decrees, arêtes, and instructions), which was distributed to key stakeholders, informing them of updated procedures and obligations. x Improved Budget Preparation and Monitoring: The project likewise contributed to the strengthening the medium- term expenditure framework (MTEF) process through revising the forecasting model that informs the MTEF as well as preparing a strategy for the introduction of program budgets at the deconcentrated level. Likewise, in order to strengthen linkages among budgets at all levels, trainers and staff at both the central and local levels were trained, inter alia, in budget preparation and execution, MTEFs, results based budgeting, perspective analysis, and strategic planning. Oversight capabilities were improved through the development of guidelines on program M&E, and finally, consultations on the MTEF were held to better incorporate citizen perspectives in budget planning. x Improved Procurement: The project was successful in strengthening the regulatory framework for procurement in line with regional guidelines, including the preparation and dissemination of local-level procurement manuals, a procurement buyers guide, as well as preparing and disseminating a dossier of key procurement regulations. As a result of the project, SIGMAP (procurement IT system) has been implemented to facilitate the procurement process at the central level, with connections to regions covered by the project. In addition, an Oracle system was put in place to allow for a connection between DFM (credit managers) and the procurement departments at both the central and local levels in the targeted regions, which eliminated the possibility of manual procurements, ensuring positive impacts on the time, accuracy, and veracity of the information. Other IT equipment such as a procurement archiving system was put in place, which is now used by the procurement office at the national level, greatly enhancing organization and procurement document management. Finally, the project contributed to the training of trainers and local level procurement staff on new procurement procedures and regulations. Given reallocated funds from other components, the project also funded additional dissemination workshops, study tours for DGMP management, and the training of key procurement staff on IDA procurement procedures. x Improved Accounting and Internal Controls: The project was likewise successful in improving the capacity and connectivity of treasury agencies at deconcentrated levels to improve accounting practices and internal controls. With the support of the project, a software package (COLLOC) was deployed to consolidate revenue data collection at the local level, which has resulted in a harmonized template for the management account (Comptes des Gestions) as well as a reduction in the time necessary to consolidate accounts. Given the success of this initiative in the four pilot regions, the government has used its own resources to scale-up the initiative to other districts not covered by the project3. Finally, an archiving system as put in place at the treasury to centralize local level accounting documents and IT and solar equipment was provided for local treasury offices. 3It should be noted that at the time of ICR, the interface between COLLOC and the Treasury IT accounting system has not yet been established; however, this activity is in the process of being finalized in the coming quarter. Page 13 of 66 The World Bank ML- Governance and Budget Decentralization Technical Assistance Project ( P112821 ) In addition to the IT enhancements improving the connectivity of treasury offices, the project was instrumental in building the capacity of treasury agents at the decentralized levels. Such capacity building including providing training to over 200 recettes-perceptions agents on budget and accounting nomenclature as well as training treasury staff in charge of local revenue collection at the local and regional levels. Moreover, guidelines were prepared on the compilation of administrative and management accounts, a dossier of texts related to PFM at the local level (e.g. laws, decrees, arêtes, and instructions) was disseminated, and staff were trained, inter alia, on the new administrative and management account guidelines, WAEMU directives related to local administration, tools of financial analysis at the local level, audit, and internal control. 18. As a result of the successful implementation of project activities, the project achieved all PDO and intermediate indicators related to this outcome area. At the PDO level, both related indicators were achieved, representing significant reductions in time for the treatment of procurement files as well as the consolidation of fiscal revenues at the local levels. Likewise, at the intermediate level, all seven indicators either met or exceeded their end of project targets, representing a significant improvement in resource mobilization at local level, budget preparation and monitoring, procurement, and accounting and internal controls. Table 3 below provides detailed information on the performance of each indicator with respect to its performance over the life of the project. Table 3: Component/Outcome Related Indicators Indicator Baseline Target Achievement Comments at ICR PDO LEVEL INDICATORS Time required for the treatment of 98 Days 73 Days 67 Days Achieved. Time for the treatment of procurement files (Days) (December, (June, 2017) (June, 2017) procurement files at the local-level declined 2010) from 98 to 67 days, exceeding the final target of 73 days. Time necessary to consolidate data at 18 Months 3 Months 1 Month Achieved. Time for the consolidation of fiscal central level on fiscal revenues at the (June, 2014) (June, 2017) (June, 2017) revenues at the local level declined from 18 CT level (Months) months to just 1 month, exceeding the final target of 3 months. INTERMEDIATE RESULTS INDICATORS Number of treasury representations, 0 67 69 Achieved. Over the life of the project, 69 fiscal centers and financial controllers (April, 2011) (June, 2017) (June, 2017) centers have been equipped with IT and solar at CT level equipped with IT and solar equipment, exceeding the final target of 67. kit (Number, Cumulative) Guide on fiscal administration is No Yes Yes Achieved. A guide of fiscal administration is available (Yes/No) (December, (June, 2017) (June, 2017) now available. 2011) DFM and DRM interconnected with 0 48 60 Achieved. Over the life of the project 60 DGMP-DSP (Number, Cumulative) (December, (June, 2017) (June, 2017) interconnections have been made between 2010) DFM/DRM and DGMP-DSP, exceeding the final target of 48. Buyer’s guide is posted in the MEF No Yes Yes Achieved. A Buyer’s Guide is now posted on website (Yes/No) (December, (June, 2017) (June, 2017) the MEF website. 2010) Specialized offices of CUH/CRH 0 70 76 Achieved. Over the life of the project, 76 equipped with estate management (June, 2011) (June, 2017) (June, 2017) CUH/CRH offices have been equipped with software and number of treasury estate management or COLLOC equipment, offices (local) equipped with COLLOC exceeding the final target of 70. (Number, Cumulative) Page 14 of 66 The World Bank ML- Governance and Budget Decentralization Technical Assistance Project ( P112821 ) Persons trained with the support from 0 6,000 6,270 Achieved. Over the life of the project 6,270 the Project (Number, Cumulative) (December, (June, 2017) (June, 2017) people have been trained in key PFM 2010) functions, including representatives of local governments and CSOs, exceeding the final target of 6,000. Women trained (Number, Cumulative) 0 800 976 Achieved. Of those trained in key PFM (April, 2011) (June, 2017) (June, 2017) functions, 976 (15.5%) were women, exceeding the final target of 800. 19. The performance of these indicators is reflected by the performance of the overall PFM environment in Mali, which provides further evidence of the projects efficacy in this outcome area. While performance on PEFA indicators largely stagnated over the 2010-2016 period4, indicators related to the key areas of the project intervention improved over the period. In particular, effectiveness in collection of tax payments (PI-15) increased from C+ in 2010 to B+ in 2016; competition, value for money and controls in procurement (PI-19) increased from C in 2010 to B+ in 2016; timeliness and regularity of accounts reconciliation (PI-22) remained the same at C+; and effectiveness of internal controls for non-salary expenditure (PI-20) increased from C+ in 2010 to B+ in 2016. However, while the orderliness and participation in the annual budget process (PI-11) maintained a level of B+ over the 2010-2016 period, the indicators measuring a multi-year perspective in fiscal planning, expenditure policy and budgeting (PI-12) declined slightly from A in 2010 to B+ in 2016. Outcome Area 2: Improved Budgetary Decision Making Outcome Rating: Substantial 20. Under outcome area two, the project Efficacy was Substantial in Improving Budgetary Decision-Making. Linked to this outcome were pilot projects in the health and education sector that seek to: (i) Pilot the implementation of criteria for the territorial allocation of resources to local governments and service providers in selected regions; (ii) Prepare guidelines for management of the health and education sectors; and (iii) introduce public expenditure tracking surveys (PETS) and beneficiary surveys as management tools. It should be noted that while it is relatively easy to measure whether the related outputs were achieved, it is significantly more difficult to demonstrate that this resulted in the outcome of “improved budgetary decision making” at either the central, local, or sectoral levels. While a full list of outputs is provided in Annex 1, key achievements of this outcome area include the following: x Improved Budgetary Decision-Making - Education Sector Pilot: The project successfully supported the development of guidelines on decentralized planning and for resource allocation in the education sector at the subnational level, and training was provided to local elected officials as well as employees at the Ministry of Education at the local level. The project also helped to develop a technical and financial monitoring and evaluation system to monitor expenditure in 28 CTs. In addition, the project conducted a beneficiary survey to better track citizen views on the performance of the sector at a subnational level. Taken together, these guidelines, trainings, and monitoring mechanisms have provided local governments with the tools necessary to improve for budgetary decision making in the education sector. Despite these achievements, participatory M&E frameworks for local governments in the education sector were dropped from the project as a result of the two project restructurings and reallocation of funds; accordingly, this element is not included in the outcome rating. x Improved Budgetary Decision-Making – Heath Sector Pilot: With the support of the project, the guidelines for 4Comparing the 2010 and 2016 PEFA performance indicators, 14 PEFA indicators remain unchanged, 9 improved slightly, and 9 declined slightly. Page 15 of 66 The World Bank ML- Governance and Budget Decentralization Technical Assistance Project ( P112821 ) management of public and community health centers were produced and disseminated and training was provided to staff on decentralized planning, PRODESS software, partnerships, and cost sharing. In addition, the project conducted a beneficiary survey to better track citizen views on the performance of the sector at a subnational level, which helped to harmonize community health plans in the targeted districts. Taken together, these guidelines, trainings, and monitoring mechanisms have provided local governments with the tools necessary to improve for budgetary decision making in the health sector. While the project successfully introduced public expenditure tracking surveys (PETS) and beneficiary surveys as management tools, an evaluation of the decentralization in the health sector was dropped from the project, as a result of the two restructurings; accordingly, this element is not included in the outcome rating. 21. As a result of the successful implementation of project activities, the project achieved all PDO and intermediate indicators related to this outcome area. At the PDO level, reports are now available on a quarterly basis on the allocation and use of resources in the education sector at the local level, which allows local administrators to better oversee performance and budgets. At the intermediate level, indicators show that reports on resource allocation have been developed, local governments have been equipped with the necessary resources to manage and execute budgets, and beneficiary survey have been carried out in the health and education sectors, all in line with expected project targets. Table 4 below provides detailed information on the performance of each indicator with respect to its performance over the life of the project. Table 4: Component/Outcome Related Indicators Indicator Baseline Target Achievement at Comments ICR PDO LEVEL INDICATORS Quarterly report of resources 0 4 4 Achieved: Four reports done in 2016, and transferred to the education sector (December, 2011) (December, (December, two reports were completed in 2017 for the to pilot CTs based on the M&E of 2016) 2016) last two quarters of 2016. expenditure software and of pilot CTs having done reporting on the use of 2 2 their resources. (Number, Annual) (June, 2017) (June, 2017) INTERMEDIATE RESULTS INDICATORS Report on allocation criteria of No Yes Yes Achieved: A report on the allocation criteria resource transfers to CTs in the (June, 2011) (June, 2017) (June, 2017) is now available for the education sector. education sector (Yes/No, Custom) Cumulative number of CTs equipped 0 10 62 Achieved. Over the life of the project, 62 with IT, software and solar kit (June, 2011) (June, 2017) (June, 2017) were equipped with IT and Solar kits, (Number, Cumulative) exceeding the final target of 10. PETS and beneficiary survey No Yes Yes Achieved. Over the life of the project, two undertaken (health and education (December, 2010) (December, (December, beneficiary surveys were undertaken, one in sectors) (Yes/No) 2016) 2016) Health and one in Education, in line with the final target. 22. In addition to the fact that all of the outcome and intermediate indicators have been met for this outcome area, additional evidence exists to support a substantial rating of the PDO outcome of “improved budgetary decision making”. While the indicators tracked by the project suggest that the tools were in place to improve decision making, including quarterly reports on resource transfers to targeted local governments, as well as the necessary reports, trainings, furnishings, and citizen satisfaction surveys, additional indicators related to budget allocation, execution, and credibility have likewise increased over the period in the targeted sectors. In the heath sector over the 2013-2015 period, allocations increased in real terms year-on-year, and the annual variation between planned and executed expenditures was reduced from 26.3% in 2013 to 16.6% in 2015. Likewise, allocation to the education increased in real terms year-on-year over the Page 16 of 66 The World Bank ML- Governance and Budget Decentralization Technical Assistance Project ( P112821 ) period, and the annual variation between planned and executed expenditures was reduced from 4.4% in 2013 to 2.0% in 2015. Accordingly, the improvement in budget allocation, execution, and credibility can be seen as a reflection of improved budgetary decision making, given the use of the tools and processes put in place under the project as well as the improved capacity in budget planning, procurement, and oversight. Outcome Area 3: Enhanced Transparency and Oversight Outcome Rating: Substantial 23. Under outcome area three, the project Efficacy was Substantial in Enhancing Transparency and Oversight. To support these outcomes, the project’s third component provided one subcomponent aimed at improving external audit and a second component aimed at improving transparency. While the activities related to improvements in the internal audit environment are clearly linked to the outcome of “enhanced oversight”, the linkage between activities related to improvements in participation with the outcome of “enhanced transparency” is not as clear. Accordingly, in addition to the indicators contained in the results framework, additional indicators measuring transparency must be considered to determine if this outcome was indeed met. While a full list of outputs is provided in Annex 1, key achievements of this outcome area include the following: x Improved External Audit: The project was successful in enhancing external control and oversight mechanisms, to accompany the institutional transition from Audit Section of the Supreme Court to the Accounts Court. In particular, an archive system was put in place in the audit section of the Cours des Comptes and software was developed to manage the case load, including those related to local communities’ accounts as well as those of other public entities (e.g. hospitals, universities). Moreover, a code of ethics was developed in 2014, and 20 new auditors were trained and introduced to the court. Finally, the project helped to provide resources for the carrying out of external audits at the decentralized level, including piloting sub-contractual arrangements with private auditors. Taken together, these activities have provided the Cours des Comptes with the capacity and tools necessary to exercise a stronger oversight role in the management of public finances. x Improved Participation: The project contributed greatly to improving participation, citizen engagement, and transparency at the decentralized levels. With the support of the project, trainings and relevant equipment were provided to local governments and civil society organizations to collect and analyze financial data to inform citizen surveillance committees. With the support of the project, six citizen’s control reports were produced, which reflect citizen’s views on local government management and other issues salient to local governments. In addition, Citizen Budgets were developed and disseminated in 69 municipalities and an information campaign for citizen awareness of PFM issues was launched with the support of the project. Accordingly, citizen’s ability to monitor the budget preparation and execution process as well as the national PRSP review process improved considerably. 24. As a result of the successful implementation of project activities, the project fully achieved one PDO indicator and partially achieved the other PDO indicator, and all but one intermediate indicator was met related to this outcome area. At the PDO level, citizen’s control reports were produced in line with project targets over the life of the project. Likewise, the capacity of the external audit institution (SCCS) was greatly enhanced and it was able to meet the targeted workload over the past three years including 2014, 2015, and 2016. However, the midyear target of 30% was not met in June 2017 as anticipated due to the retirement of a number of staff, which impacted progress on the annual work program. By end 2017, 37% of accounts were judged, which represents a deterioration in performance compared with the previous three years were more than 85% of the work program was completed. At the intermediate level, three out of four Page 17 of 66 The World Bank ML- Governance and Budget Decentralization Technical Assistance Project ( P112821 ) indicators met their final targets, including those measuring the publication of SCCS annual reporting, the production of citizen’s budgets, as well as production of targeted audit reports. Table 5 below provides detailed information on the performance of each indicator with respect to its performance over the life of the project. Table 5: Component/Outcome Related Indicators Indicator Baseline Target Achievement at Comments ICR PDO LEVEL INDICATORS Number of management accounts 0 85% 85% Partially Achieved: While targets were met from CTs reviewed and judged by the (June, 2011) (December (December for 2014, 2015, and 2016, only 17% of SCCS as compared to their annual 2016) 2016) management accounts were reviewed by work program (Percentage) project closure, against a final target of 30%. 30% 17% As of December 2017 37% of accounts were (June, 2017) (June, 2017) judged; however, this marks a deterioration from previous end of year targets. Citizen’s control report produced by 0 5 5 Achieved. Ove the life of the project, six the Surveillance Committees and the (December, (December, (December, control reports were produced by the citizen’s CNSC to improve public service quality 2010) 2016) 2016) surveillance committees—one in each (Number, Cumulative) targeted district and one at the national level—exceeding the final target. INTERMEDIATE RESULTS INDICATORS Annual Report of the SCCS published 0 1 1 Achieved. Annual reports of the SCCSs have (Number, Annual) (December, (December, (December, been published at least once during each of 2011) 2016) 2016) the last three years of the project. Cumulative number of Citizen Budgets 0 50 69 Achieved. Over the life of the project, 69 prepared and Published (Number, (January, 2011) (June, 2017) (June, 2017) Citizen’s Budget have been produced at the Cumulative) local level, exceeding the final target of 50. Targeted audit reports prepared by 0 11 11 Achieved. Over the life of the project, 11 the Audit section of the Supreme (December, (June, 2017) (June, 2017) targeted audit reports have been prepared, in court (Number, Cumulative) 2011) line with the final target of 11 by the end of the project. Number of CTs have undertaken a 0 50 30 Not Achieved. Over the life of the project only public restitution of the management (June, 2011) (June, 2017) (June, 2017) 30 public restitutions have been carried out, account and of the implementation of against final target of 50. the PDSEC (Number, Cumulative) 25. In addition to the satisfactory performance of most of the project indicators, additional indicators not included in the project design suggest that oversight and transparency were improved in Mali over the life of the project. For instance, the Worldwide Governance Indicator measuring voice and accountability increased year-on-year since an all- time low in 2012, and now exceeding the average score for the sub-Saharan African region. Likewise, Mali’s composite score on the Open Budget Survey, has increased steadily from 35 (out of 100) in 2010, to 43 in 2012, to 46 in 2015. Taken together, these indicators provide additional evidence that transparency and oversight have improved, despite shortcomings in the original indicators. Justification of Overall Efficacy Rating Overall Efficacy Rating: Substantial 26. The overall outcome rating of Substantial for the project is based on the ratings for each of the three outcome Page 18 of 66 The World Bank ML- Governance and Budget Decentralization Technical Assistance Project ( P112821 ) areas enumerated in the PDO. These include the outcomes for (i) strengthened capacity for public financial management at decentralized level, which is rated High; (ii) improved budgetary decision-making, which is rated Substantial; and (iii) enhanced transparency and oversight, which is rated Substantial. C. EFFICIENCY Overall Efficiency Rating: Substantial 1. While no formal, quantitative efficiency evaluation5 was conducted at appraisal, this ICR seeks to use what information is available to evaluate a number of the project’s financial and economic benefits from an ex post quantitative perspective. As noted below, the Governance and Budget Decentralization Technical Assistance project has produced a number of financial and economic benefits, including the following: x Increased Revenue Collection at the Local Districts Targeted by the Project. Sub-component 1.1 of the project focused on improving resource mobilization in 115 local communes located in five regions, including Koulikoro, Sikasso, Segou, Kayes, as well as the district of Bamako. Accordingly, under the project, 12 tax centers and 14 Bureaux des Domaines et du Cadastre (CUH/CRH) were equipped with IT, solar, and information management equipment for the management of local revenues. In addition, the project supported the development of estate management software package for specialized offices of CUH/CRH as well as COLLOC software for local recettes-perceptions offices. Moreover, a study was completed to identify the resources to be transferred to the communal level and a national strategy for the mobilization of resources from communes was developed. Finally, capacity building was provided with respect to revenue collection at the local levels and more than 5,000 hard copy dossiers of local tax laws, decrees, arêtes, and instructions were disseminated at the communal level. As a result of the activities supported under the project, the targeted local governments have improved capacity with respect to recording, managing, and collecting local revenues. As noted in the economic analysis presented in annex 4, the project intervention can be correlated with a 39.31 billion CFA (US$ 70 million equivalent) cumulative increase in local revenues in targeted districts over the baseline “counterfactual” scenario, suggesting that the benefits of the project significantly outweigh the costs. x Greater Efficiency in the Procurement Process at the Decentralized Level. The PAD noted that considerable public resource savings are likely to occur due to the rationalization and streamlining PFM processes implemented through the project. In particular, sub-component 1.3 worked to strengthen the regulatory framework for procurement in line with regional guidelines through the dissemination of procurement laws, regulations, and guidelines as well as capacity building for effective implementation, including through the introduction of IT tools. As a result, the time required for the treatment of procurement files has become significantly more efficient over the life of the project, declining from 98 days to just 67 days at the local level. While it is impossible to quantify these benefits, this improved efficiency can be correlated with improving procurement competitiveness as open tender increased significantly from 70.92% of the total amount awarded in 2009 to 90% in 2016. Likewise, direct contracting was reduced from 20.8% of the total awarded contracts in 2009 to 6% in 2016. Finally, restricted list procurements decreased from 9% to 3.9% of the total awarded amount over the same period. While it is difficult to quantify these efficiencies derived from more transparent and compliant procurement procedures, improvement in procurement capacities and competitiveness represent an economic benefit which makes society as a whole better off. 55This, includes, inter alia, net present value, economic rate of return, cost effectiveness, unit rate norms, service standards, least cost analysis and comparisons, or financial rate of return Page 19 of 66 The World Bank ML- Governance and Budget Decentralization Technical Assistance Project ( P112821 ) x High Overall Level of Implementation Efficiency and Cost Savings. Given the improvements in project management and the proactive restructurings that occurred over the life of the project, the project managed to deliver more activities than were planned in the original design. At the same time, almost all project objectives were achieved vis- à-vis the results indicators, yet the final disbursement rate was 88.9% with an undisbursed amount of US$ 1.2 million. This suggests that the project was able to obtain all of its objectives in a manner more efficient than anticipated at the design stage. D. JUSTIFICATION OF OVERALL OUTCOME RATING Overall Outcome Rating: Satisfactory 27. The overall outcome rating for the project is Satisfactory. This rating is based on assessments of project Relevance, average Efficacy of the three outcome areas, and Efficiency, as aforementioned above. The final rating noted in table 6 below is based on the methodology provided in Annex H of the updated Bank Guidance note for Implementation Completion Results Reports for Investment Financing Operations, issued July 1, 2017. Table 6: Calculation of the Overall Project Outcome Rating Outcome Component Rating Relevance High Overall Project Efficacy Substantial x Outcome Area 1: Strengthened Capacity for PFM at the Decentralized Level High x Outcome Area 2: Improved Budgetary Decision Making Substantial x Outcome Area 3: Enhanced Transparency and Oversight Substantial Efficiency Substantial Overall Outcome Rating Satisfactory E. OTHER OUTCOMES AND IMPACTS (IF ANY) Gender 28. In line with the PAGAM II, the project was designed to ensure that women and young people will benefit from the capacity building provided. In particular, under component one, improved public financial management may be expected to have a positive impact on gender through more efficient and effective public resource use related to women and children. Likewise, under component two women’s access to education as well as to health services may improve due to the improvement in the oversight and management of these sectors. Finally, under component three, the project provided support to establish a framework for effective participation of key stakeholders, including women and youth, in the monitoring and evaluation of the allocation and use of public resources. At the time of ICR, it is impossible to decipher the extent of the gender impacts involved outside of measuring the number of women trained by the project, which reached a level of 976 by project closing. Page 20 of 66 The World Bank ML- Governance and Budget Decentralization Technical Assistance Project ( P112821 ) Institutional Strengthening 29. At its core, the project has provided capacity building and technical assistance to a number of institutions and individuals responsible for public financial management in Mali. In particular, the project supported civil servants at regional and local level, elected officials, and representatives of the civil society as its key beneficiaries. In addition, civil servants at the central level have benefited from the activities of the project, to ensure adequate coordination and complementarities between central and decentralized levels. Key PFM institutions that were strengthened by project activities include, inter alia, the Ministry of Economy and Finance (MEF), Ministry of Territorial Administration and Local Governments (MACTL), the Ministry of Housing, Land Affairs and Urban Development (MLAFU), the Procurement Regulatory Authority (ARMDS), the Audit Section of the Supreme Court (SCCS), the Ministry of Education, Literacy and National Languages (MEALN), and the Ministry of Health (MS). Civil society organizations such as the National Federation of Community Health Associations (FENASCOM), School Management Committees (CAPs), Civil Society National Council (Conseil National de la Société Civil, CNSC), community surveillance committees, and local health associations were also supported through the project. Finally, the project helped to strengthen citizen engagement and external oversight institutions as well as improve PFM in education and health sector, particularly in the targeted decentralized levels in four regions (Koulikoro, Sikasso, Segou and Kayes). Mobilizing Private Sector Financing 30. As a public sector project targeting the improvement of key PFM competencies at the central and decentralized levels, this project did not have a specific focus on mobilizing private sectors financing. However, an improved PFM environment that ensures the transparency and efficient use of public funds, sound budget institutions and processes, and enhanced internal and external control mechanisms does impact the overall business environment. Accordingly, the outcomes of this project may largely benefit the government’s ability to mobilize finance from the private sector. Poverty Reduction and Shared Prosperity 31. The project seeks to support the Bank’s twin goals of reducing poverty and increasing shared prosper through the support it provides to improvement of service delivery in health and education sector and the improvement of the larger public financial management environment. While the exact effects that these may have on poverty reduction are unable to be determined in the context of this ICR, ample evidence has been provided on how the project contributed to improved revenues, more efficient procurement, better management of service delivery in the health and education sectors, as well as improved oversight and citizen input into the budget preparation and execution process. Other Unintended Outcomes and Impacts 32. While this project focused on improving the larger environment for citizen oversight, participation, and transparency, it did have the unintended outcome of improving the role of certain segments of the Mali’s civil society. In particular, certain CSOs were able to enhance their contributions to the Strategic Framework for Economic Growth and Sustainable Development (CREDD). As noted in conversations with CSO representatives, civil society organizations now participate more actively in the CREDD review meetings as they have acquired competencies regarding the allocation and execution of the national budget, which have improved the quality of their inputs to the CREDD. At local level, civil society improved its influence on health and education services delivery through a better follow up of health and education budget. Finally, although the project did not directly intend support for a PEFA analysis, proactive restructurings resulted in additional funds being made available for conducting the PEFA assessment in 2016, which provides a further evidence base of the project’s effectiveness as well as a myriad of new PFM reform priorities going forward. Page 21 of 66 The World Bank ML- Governance and Budget Decentralization Technical Assistance Project ( P112821 ) III. KEY FACTORS THAT AFFECTED IMPLEMENTATION AND OUTCOME A. KEY FACTORS DURING PREPARATION 33. The project design was grounded in a large body of analytics as well as lessons learned from previous operations in the sector and country. With respect to the former, the activities respond to issues identified in the 2009 Mali PEMFAR, the 2010 PAGAM-GFP Implementation Report, the 2010 Draft PEFA Update, as well as a Mali 2010 Stakeholder Analysis. With respect to incorporating lessons learned, the project includes the adoption of procedures, which are in line with regional and international practices (e.g. double accounting, procurement procedures, contract- plans, etc.) and drew upon international experiences for the choice of IT applications and archive systems. Other lessons learned incorporated into project design include: (i) the importance of linking reforms to government ownership and consensus; (ii) the need for a strong analytical background; (iii) the importance of building local government capacity; and (iv) putting in place effective coordination mechanisms. 34. At appraisal, the project was highly relevant to Mali’s development and public financial management priorities. As such, the activities financed by the operation were selected from PAGAM II taking into account their criticality and linkages with the support provided under various development policy operations, notably PRSC-3 to PRSC-5. The project was also strategically aligned with Mali’s 2007 Growth and Poverty Reduction Strategy Framework (GPRSF), which supported a continuation and consolidation of public sector structural reforms as well as the strengthening the social sectors to improve the delivery of basic social services, including improved access for the poor. Finally, the project was aligned with the 2013 Mali Country Assistance Strategy (CAS) objective related to strengthening public financial management, supporting effective decentralization, and building local administrative capacity. 35. While the PDO may have been slightly ambitious given the scope of activities involved, the relatively small financing envelope, and the challenging country context, the relatively simple project design including clearly structured components with clear operational logic, and appropriate timing and sequencing of tasks, balanced out the overall ambition of the project. Each of the components clearly aligned with a specific project outcome area with the exception of the second component, which aligned the outcome “improved budgetary decision-making” with a component aimed at “piloting new PFM tools in the basic education and health sectors”. While there are indeed linkages between these areas, the activities and related indicators make it somewhat difficult to demonstrate an improvement in decision making capabilities.6 Finally, attention was given to the sequencing of activities within the PAGAM II and the scope of the project was designed based on a thorough mapping of other donor interventions to ensure maximum complementarities. 36. The results framework was appropriately designed and indicators were largely aligned with operational objectives. In particular, the framework for monitoring and evaluation was closely aligned with the institutionalized framework used for the monitoring and evaluation of the PAGAM II, including baselines and targets over the period. Given that the second component of the project introduced new activities to support decentralization efforts in particular sectors, specific indicators were adopted to measure progress in the pilots in education and health as well as for activities to enhance participation. As noted above, the only notable challenge with the results framework is difficulty in measuring the outcome related to improved budgetary decision making given the indicators chosen. 37. The project included an appropriate selection of stakeholders and beneficiary groups to ensure that the project 6This issue was addressed in the Efficacy section by providing additional PEFA indicators that demonstrate improved PFM performance in certain areas (e.g. forecasting, control, execution, etc.) Page 22 of 66 The World Bank ML- Governance and Budget Decentralization Technical Assistance Project ( P112821 ) meet it development objectives. As such, the project’s primary target was civil servants at central, regional, and local level, elected officials, and representatives of the civil society. Two sectors (education and health) and four regions (Koulikoro, Sikasso, Segou and Kayes) were selected as primary beneficiaries of the activities of the project. Education and health were chosen because these sectors provide key basic social services and have urgent PFM capacity development needs. Koulikoro, Sikasso, Segou and Kayes, representing together over 65 percent of Mali’s population, were chosen because they offer the minimum infrastructure requirements (e.g. electricity, telecommunications, and access to internet) for the piloting of new procedures, such as online procurement processing or double entry accounting. 38. All project risks were assessed through the Operational Risk Assessment Framework (ORAF), including risks related to the implementation arrangements as well as those related to project design and delivery quality. First, with respect to implementation arrangements, the mains risks identified were: (i) inefficiencies in the decision-making processes; (ii) inexperience in coordinating and supervising project implementation including at decentralized level; and (iii) of funds being misused, particularly because of the involvement of many administration bodies, including a large number of decentralized entities. The project planned to mitigate these implementation and coordination capacity risks by providing, inter alia: (i) consultants on project management, FM, accounting and procurement; (ii) improved information systems to strengthen coordination and decision making processes; (iii) use of regular and sound auditing procedures to ensure full compliance with Bank standards; and (iv) close supervision of the project to resolve any problems that may emerge. In addition, significant design risks were noted with respect to delays in the approval and use of new procedures and instruments, in part due to resistance to change. During the preparation stage, the project team agreed with the authorities on a realistic agenda for the preparation of new instruments and their implementation, allocating funds to strengthen monitoring and evaluation to ensure timely identification of problem areas including by making good use of the pilots to make adjustments as needed. Finally, the project appraised delivery quality risks related to the retention of trained staff due to reward related issues and the political cycle. To address these challenges the project focused on training trainers and the preparation of training materials as well as the monitoring of staff rotation. 39. Finally, the project preparation adequately ensured readiness for implementation by putting in place appropriate effectiveness conditions, noted above. Based on previous good experience in implementing PFM reforms, a unit embedded in the Ministry of Economy and Finance, CARFIP (Cellule d’Appui a la Reforme des Finances Publiques), was designated to oversee the project. As in the past, activity planning, decision making, project funding allocation, and monitoring and evaluation used the institutional arrangements already in place for the PAGAM II, including a steering committee, chaired by the Secretary General of the MEF which included representatives of all the main institutions involved in the project. Given that the government did not have in place an adequate system for managing project finances, it was decided that CARFIP will ensure the technical coordination while the Department of Finance and Material (DFM) will be responsible for the fiduciary aspects. These arrangements relied on a hybrid arrangement using both county- and Bank-systems for project procurement, financing management, and disbursement 7. B. KEY FACTORS DURING IMPLEMENTATION 40. The GBDTA Project was approved by the World Bank Board of Executive Directors on April 28, 2011 and became effective on August 8, 2011. Shortly after the implementation period began, a coup d’état took place on March 22, 2012, with the military seizing power in the capital, ousting President Amadou Toumani Toure. Taking advantage of the institutional instability in Bamako, Tuareg rebels and Islamists groups linked to Al-Qaeda used this opportunity to seize the 7As will be discussed in the proceeding section, these complex coordination arrangements and an unfamiliarity with Bank-systems impacted project performance in the early stages of the implementation period. Page 23 of 66 The World Bank ML- Governance and Budget Decentralization Technical Assistance Project ( P112821 ) Northern part of the Country, imposing Islamic Sharia in the three northern regions. Since then, the security and humanitarian situation in the north has continued to pose a major threat to regional and international peace and security, with a flux of internally displaced people, which has continued to worsen the humanitarian and security situation. 41. On August 20, 2012, a transitional Government was formed in order to restore security, to regain control of the north, and to hold elections according to the Constitution. Shortly after, under the mandate of the UN Security Council, a coalition of Malian and foreign troops launched military operations in Northern Mali in January 2013. These unprecedented events have collectively constituted the worst political and security crisis faced by Mali since its independence. During the implementation period, considerable progress was made in implementing the political roadmap presidential elections between July and August, 2013 and the National Assembly was elected in two rounds between November and December, 2013. Recognizing its critical importance for peace and stability, the new President sworn in on September 2013, made his top priorities the fight against corruption, support for economic recovery, and a return to normalcy and security. 42. As a result of the overthrow of the government and the subsequent political transition, the Bank was required to invoke OP/BP 7.30 concerning Dealing with de Facto Governments, which resulted in a six-month suspension of disbursements. Based on findings of an OP 7.30 mission conducted in July 2013, the Bank authorized a resumption of existing operations and the approval of new lending operations on a case-by-case basis. A further fiduciary review mission carried out in August, 2013 confirmed that ongoing projects and disbursements could resume; however, given the deteriorated security context, the Bank ceased to operate in the conflict area in the north. While the regions supported by the project did not fall directly areas of open fighting, the poor security situation did make it more difficult for the Bank to supervise the project during this period, with almost a year passing between the filing of ISRs during this period. 43. As of February 2014, almost three years after project approval, progress toward the achievement of the PDO had been slow, with a number of indicators off track and less than 25% of project funds disbursed. While the overthrow of the government, the subsequent military intervention in the north, and the resulting suspension of Bank disbursements had a significant effect on the early implementation of the project, a number of other issues related to the project’s institutional arrangements also contributed to poor implementation progress in the first three years of the project. Chief among these was the complexity of the implementation arrangements, whereby a technical coordination unit (CARFIP) within the Ministry of Finance was responsible for project management; however, numerous ministries or institutions were involved in the day-to-day implementation (e.g. MEF, MLAFU, MACTL, Education, Health, and SCCS) of the project. 44. While poor coordination and leadership by CARFIP presented its own challenges, the decision to use a combination of both national procedures and Bank procedures proved to be very complex given weak capacity of implementers. In particular, due to shortcomings in the implementation of the Ministerial Instruction related to the integration in the national financial procedures for the budgetary and accounting aspects of projects financed by IDA, significant delays resulted financial management processing, including audit procedures. These issues were further compounded by weak capacities of implementing agencies in applying IDA procurement procedures, despite the delivery of adequate training on this topic. Finally, in the first three years of implementation, weaknesses emerged with respect to the monitoring and evaluation of the project. In particular, this included challenges related to data collection and consolidation at the level of CARFIP as well as the absence of monitoring tools at the local level. 45. Given the challenges and the negative effect they had on project implementation, the project was restructured in June 2014. This Level 2 restructuring, approved by the Country Director, included a request for: (i) an extension of the Project closing date by 18 months from December 15, 2014 to June 15, 2016 to allow for the completion of critical activities; (ii) a revision of the results framework; and (iii) a change in activities and reallocation of proceeds to ensure alignment with Page 24 of 66 The World Bank ML- Governance and Budget Decentralization Technical Assistance Project ( P112821 ) Government priorities. In addition to the changes formally included in the restructuring, an adjustment in implementation arrangements was made to improve project coordination and strengthen performance, within the limits of the provisions of the existing financing agreement. Following discussions with the Bank, the Minister of Finance signed a decision creating a new Project Implementation Unit (PIU) within the Cabinet of the Ministry of Economy and Finance, which had the responsibility of coordinating the implementation of the Project and managing specific PFM reforms. 46. Since the restructuring, the newly formed PIU made significant efforts to accelerate the implementation of the project, which led to a significant increase in the disbursement level to 58% by December, 2015. Project management significantly improved and the newly formed PIU began to hold meetings with the different project beneficiaries on a regular basis. However, delays in the recruitment of the procurement specialist and the M&E specialist hampered project execution and reduced the capacity of the PIU to ensure that all activities were completed by the project closing date. As a result, a second level two restructuring was approved in May, 2016, which extended to project closing date for an additional 12 months until June 30, 2017 and further refined of project activities and results indicators. 47. During the final period of the project, proactive management system was supported by the new PIU arrangements and procurement delays were reduced compared to previous periods. Disbursements jumped to 74% by June, 2016 and implementation and component ratings were upgraded to satisfactory. Likewise, Monitoring and Evaluation also improved with the recruitment of a Monitoring and Evaluation Specialist, who conducted regulator dialogue with project beneficiaries to ensure that actions were taken to improve results outcome. Finally, given a reallocation in funds related to the proactive restructurings, a PEFA evaluation was undertaken with the support of the project and a strategy of fiscal resource mobilization was prepared, which was previously unforeseen in the original project design. 48. The project closed on June 30, 2017 with a final disbursement rate of 89%, with a DO rating of satisfactory and an IP rating of moderately satisfactory. Despite significant implementation delays caused by procurement and challenges to mobilize technical assistance due to the security environment, the project the project managed to deliver more activities than were planned in the original design. At the same time, almost all project objectives were achieved vis-à-vis the results indicators, yet the final disbursement rate was 88.9% with an undisbursed amount of US$ 1.2 million, reflecting an incredible efficiency of planned resources. IV. BANK PERFORMANCE, COMPLIANCE ISSUES, AND RISK TO DEVELOPMENT OUTCOME A. QUALITY OF MONITORING AND EVALUATION (M&E) M&E Design Rating: Modest 49. The monitoring and evaluation framework of the project was in line with the institutionalized framework used for the monitoring and evaluation of the PAGAM II. PAGAM II established the links between the activities planned and the results to which they contribute, with a clear indication of periodicity and responsibility in the collection of information and preparation of reports. Accordingly, the project was designed to contribute to a sub-set of the results matrix of the PAGAM II, and as such, adopted as much as possible the same indicators, targets, periodicity and attribution of responsibilities for the monitoring of results. As the project piloted unique interventions in the health and education sectors, the project indictors were further developed based on the specific project activities. Overall responsibility for M&E was designated to CARFIP, which as noted above, was the technical unit responsible for overseeing the PAGAM II. Page 25 of 66 The World Bank ML- Governance and Budget Decentralization Technical Assistance Project ( P112821 ) 50. While the indicators were well aligned with a majority of the project activities and related outcomes, there were notable shortcomings in the results chain. While the outcome area one well matched the activities proposed under component one, the same is not true for the other outcome areas and their related components. With respect to outcome area two, “improved budgetary decision making,” there was a considerable mismatch with component two, whose indicators which were related to the health and education sectors receiving the tools necessary to track budgets and monitor performance. As mentioned above, while the proposed indicators were able to provide reasonable assurance that the tools and processes have been put in place, a significant gap existed with respect to how they translate into the PDO outcome of “improved budgetary decision making,” as well as how such a concept could be measured in the results framework. In addition, there were similar shortcomings with outcome area three, “Enhanced Oversight and Transparency” and component three, which seemed to conflate citizen participation with transparency. Accordingly, the ICR supplied additional information to indeed confirm that this third outcome area was met. M&E Implementation Rating: Modest 51. M&E implementation was slow over the first half of the implementation period but improved as a result of the two restructurings. Almost from the beginning of the project, M&E was affected by the conflict situation, which did not allow for the timely collection of data, especially in regions where instability made it difficult for project staff to conduct supervision. These problems were confounded given the implementation challenges resulting from a lack of dedicated PIU, and persisted until the project was restructured when a dedicated PIU was established to carry out the M&E function. After the M&E specialist was recruited and the security situation stabilized, M&E performance improved with the coordination unit undertook regular field supervision missions, improved dialogue with project beneficiaries, and produced timely reports. M&E Utilization Rating: High 52. Over the life of the project, there was a high degree of M&E utilization, as the project continually adapted to achieve results. As noted above, two restructurings occurred over the life of the project to adjust activities to the changing context as well as to adapt project indicators to ensure the proper measuring of results. In particular, the restructurings involved five PDO indicators being dropped, three to be revised, and two new outcomes to be added, which helped to address some of the aforementioned M&E design flaws. While none of the project outcomes were changed, the PDO indicators were proactively adapted on the basis of: (i) the changing implementation context; (ii) the scope of the activities, including those added and dropped during the restructurings; and (iii) availability of data and ability to collect it given the security challenges noted above. Likewise, it should be noted that these restructurings were proactive and ensured that the project design and implementation arrangements remained relevant throughout the life of the project. Finally, a mid-term review occurred in December 2014, and likewise ensured that the project design adequality addressed the issues facing the government of Mali. Justification of Overall Rating of Quality of M&E Overall Rating of Quality of M&E: Substantial Page 26 of 66 The World Bank ML- Governance and Budget Decentralization Technical Assistance Project ( P112821 ) 53. Over the life of the project, there were only moderate shortcomings in the M&E systems design, implementation, and utilization, and as a result, the overall quality of M&E is rated Substantial. This rating is on the basis of M&E Design, which was rated Modest; M&E Implementation, which was rated Modest; and M&E Utilization, which was rated High. B. ENVIRONMENTAL, SOCIAL, AND FIDUCIARY COMPLIANCE 54. Due to the nature of the project, which focused on capacity building and technical assistance, there were no significant environmental or social safeguards were triggered. This supports the environmental category of C, which was maintained during the life of the project. Likewise, all fiduciary conditions were met including the adoption of a Project Implementation Manual (PIM) and the contracting of an FM specialist. C. BANK PERFORMANCE Quality at Entry Rating: Moderately Satisfactory 55. As noted by the evidence presented earlier in the ICR, the Bank did a largely adequate job of ensuring qualit at entry for the project. First, the Bank team ensured the strategic relevance and approach of the project by supportin activities specific under the government’s PAGAM II, taking into account their linkage to the ongoing DPO series. Secon and relatedly, the Bank team included an appropriate analysis of the technical, financial, and economic aspects related t the project. In this regard, the project provided: (i) evidence based on sufficient analytic works, which substantiate ke PFM and decentralization reform priorities as well as provide linkages to other government and Bank strategic objective (ii) a thorough assessment of financial and fiduciary challenges that the government faced at appraisal; and (i recommendations on way forward in measuring the economic impact of the project, albeit not providing a full econom and financial analysis, given that it was largely impossible to provide estimates of Net Present Value (NPV) as well as th Internal Rate of Return (IRR). Third, the project incorporated adequate assessments of poverty, gender, and soci development aspects both as a result of its interventions in key social service delivery sectors as well as activities mean to foster inclusion, participation, and citizen feedback. Fourth, the project articulated that there would be limite environmental impact, which in fact, was the case during project implementation. Fifth, the projected focused sufficient on including measures related to policy and institutional capacity building, which were key to the government decentralization agenda and specific areas of focus. Sixth, the project documents included adequate M&E arrangement which were relevant and correct at the time of appraisal, despite the fact that significant revisions were needed durin the implementation period. Seventh, the project documents provided a deep accounting of project risks and mitigatio measures. Finally, the project team ensured adequate input and dialogue with government counterparts during th preparation stage as well as a proper account of donor partner support to ensure additionality and complementarity o Bank support. 56. Despite the overall adequate performance of the Bank in ensuring quality at entry, there were a few issues related to the preparation and design of the project which led to problems during the implementation period. Chief among these was the complexity of the implementation arrangements, whereby a technical coordination unit (CARFIP) within the Ministry of Finance was responsible for project management, but numerous ministries or institutions were involved in the day-to-day implementation (e.g. MEF, MLAFU, MACTL, Education, Health, and SCCS) of the project. As Page 27 of 66 The World Bank ML- Governance and Budget Decentralization Technical Assistance Project ( P112821 ) such, the implementation arrangements noted in the original PAD were overly complex, relying on a hybrid use of bank and government systems for financial management and procurement, which led to substantial delays during the implementation period. Finally, relatively small problems in the selection of indictors were resolved during project implementation; however, these suggests that there could have been better alignment between project outcomes and the proposed components, particularly with respect to outcome area two of the project. Quality of Supervision Rating: Satisfactory 57. The overall quality of Bank supervision over the life of the project was Satisfactory. Implementation support missions occurred twice per year and ISRs were filed on a timely and periodic basis, although supervision slowed slightly during the periods of highest conflict in 2012-2013. Aide Memoires and other supervision documents were likewise submitted on time and of adequate quality and candor, and a Mid-Term review was conducted at an appropriate time so as to inform the project restructurings. Throughout the life of the project, the Bank proactively identified and resolved threats to the achievement of PDO through a series of restructurings, which tailored the project to meet key developments in the larger political economy context. This adaptivity in tailoring the project activities, allocations, indicators, and implementation arrangements is one of the main reasons why performance was able to be accelerated in the second half of the project as well as one of the reasons that all objectives were met, including those unanticipated in project design. 58. Given the challenges noted with the implementation arrangements, the team used opportunities where possible, to build the capacity of the government to manage IDA-funded projects. This included targeted technical assistance and capacity to build financial management, procurement, and audit arrangements. Admittedly, implementation arrangements were initially inadequate to meet to the project development objects; however, the project team was able to identify key bottle necks and management was able to respond to these challenges through a proactive restructuring process. In addition, the Bank used the restructurings not only to address challenges and a changing implementation context, but also to scale up successful areas of the project including equipping tax and treasury units with the relevant IT and solar equipment as well as carrying out an PEFA assessment in 2016. Finally, since the closure of the project, the Bank has incorporated key lessons learned into potential follow-on operations, including those that rely on performance based disbursements, which will inform future orientations of the project portfolio. Justification of Overall Rating of Bank Performance Rating: Satisfactory As Bank performance for quality at entry was rated as Moderately Satisfactory and quality of supervision was rated as Satisfactory, overall Bank performance is rated upward to Satisfactory, given that the overall outcome of the project was rated Satisfactory. Page 28 of 66 The World Bank ML- Governance and Budget Decentralization Technical Assistance Project ( P112821 ) D. RISK TO DEVELOPMENT OUTCOME 59. There are several risks that may jeopardize the sustainability of project development objectives and outcomes, which have been achieved during the life of the project, including the following: x Political and Governance Risk: As highlighted in the most recent ISRs for the project, a lack of progress on the security situation in the north, as well as its extension to the South through terrorist attacks, could potentially distract Government’s attention and divert resources from its governance reform agenda including the decentralization process. The Government security apparatus has so far demonstrated limited capacity to counter an increasing level of insecurity in the north and several recent terrorist attacks, including in Bamako, have demonstrated the unpredictably of the situation. In such a context, it is relatively easy for PFM reform results to dissolve when faced with mounting fiscal pressures caused by security expenditure. Moreover, the economic and social costs of such conflicts may also may diminish the human resource capacity to maintain reforms, particularly at the decentralized levels. In order to mitigate this risk, the government has at its disposal a number of mitigating measures, including, inter alia: (i) adherence to the Alger’s agreement, in which decentralization was one of the central elements for maintaining peace as well as (ii) the continued support by the international community and the Government’s commitment to the ongoing peace process including through continuous dialog with the stakeholders. x Institutional Capacity for Implementation and Sustainability Risk: As has been demonstrated in other public financial management reform projects in the region, results achieved in such project may evaporate quickly unless government ownership remains and capacity building is continued. During the life of the project, it was noted that the multiple agencies responsible for the implementation of the project at the central level experienced a high degree of staff turnover. This may likewise be the case in the beneficially agencies at the decentralized level, particularly as conflict in these regions continues. At the same time, no instrument was put in place for sustainable capacity building, for instance, through a school of public administration or other state institution. Accordingly, in order to insure the sustainability of the results achieved, the government must continue to support the training of qualified staff in kay PFM functions. Moreover, in order to ensure government focus on PFM reforms, donor partners—including the World Bank—need to develop a follow-on operation as quickly as possible to harness the momentum gained by the project in order to deepen and broaden the reforms. x Stakeholder Risk: A final risk to the sustainability of the project stems from changing stakeholder priorities, especially with respect to the financing provided to projects in FCV. As noted in its strategic documents, the IDA 18 cycle will seek to focus more particularly on fragile environments by scaling up its resource allocation as well as focusing on governance and institutions as a key issue. Underpinning this thematic focus is a “cascading” approach, which seeks to use Bank and Donor funds as a means to leverage private sector contributions to key areas where public financing is not essential. While this move to a larger envelope of support to FCV countries, including and increasing reliance on results-based mechanisms may help to scale up results in certain countries, it may not be suitable for all fragile environments, especially those with limited absorptive capacity. In particular, there may be a risk of internal Bank pressure to move away from relatively small (US$ 12 Million SDR equivalent) technical assistance projects, which have proven “agile” to adapt to changing fragile environments and efficient in terms of results, in favor of larger operations. As noted throughout this ICR, a key element that made the project successful was its tailored and selective approach, which made it easily adaptable to changes in the FCV environment. While it does not directly impact the sustainability of this project, this change in strategy may have an impact on follow-on operations in the region focusing on targeted technical assistance for PFM reform. Page 29 of 66 The World Bank ML- Governance and Budget Decentralization Technical Assistance Project ( P112821 ) V. LESSONS AND RECOMMENDATIONS 60. Given both the success and challenges noted during project preparation and implementation of the project, a number of lessons can be drawn, which both the Bank and the Government of Mali can utilize to develop to inform future operations in the country, the PFM sector, as well as FCV environments more largely. 61. A first lesson learned is the importance of setting up a dedicated PIU to implement PFM project instead of using Government PFM reform unit to monitor the implementation, especially in an FCV environment. In Mali, Government PFM reforms agenda were managed by CARFIP, which was not able to fulfill its tasks regarding the project implementation. This occurred both as result of it being responsible for a large number of agencies responsible for the day-to-day implementation of the project, a hybrid approach to project fiduciary oversight relying on both Government- and Bank- Systems, as well as a lack of capacity and familiarity on the part of the government in meeting Bank financial management and procurement standards. As such, project implementation arrangements, targeting the use of country systems, were a major weakness of the project design. Implementation improved following the restructuring of the project, which resulted in the creation of a dedicated project coordination unit, resulting in a significant improvement in implementation. Accordingly, a key lesson learned for project implementation in an FCV environment grappling with PFM reform is the importance of setting up a dedicated PIU with adequate capacity and experience with Bank-procedures. While such a PIU may grapple with capacity challenges in meeting Bank fiduciary standards, targeted technical assistance, capacity building, and where necessary, adapting arrangements can help to ensure the successful management of projects. 62. A second lesson learned is that in a Fragile Conflict and Violence affected context, decentralization projects should focus on capacity building and improve dialogue between Government and citizens through adoption of adequate practical tools. The project did not cover all the local communities, but the experience of its achievements is currently being used for the rest of the country to further facilitation the decentralization agenda. To be sure, tools such citizen surveillance committee reports and citizen budgets have proven to be an efficient means to improve dialogue between the governors and their citizens in conflict affected areas. Going forward in the Malian context, additional Bank interventions should seek to target more regions in order to scale up successful project interventions. Had such additional scalability been incorporated into the original project design, such activities might have been achieved in the existing financing envelope. As such, a results-based mechanism that allows the government to pilot different approaches and to adjust project design accordingly may prove to be a useful way forward in the Malian context. 63. A third lesson learned is that successful and timely implementation of project activities depends on adequate levels of technical assistance. As detailed above, project implementation was impacted by persistent procurement delays related to the intermittent absence of a dedicated procurement specialist, delays in procurement tenders, delays in the preparation of TORs and technical specifications, and delays in the approval of consultancy works/outputs. By providing the project with an international technical assistant, the Bank was able to expedite the relevant TORs and technical proposals, thus removing a critical bottleneck. In addition to providing this operational assistance, the Bank provided technical assistance where necessary across project components with respect to PFM reform areas. Accordingly, further projects should seek to provide on-demand and adaptive technical assistance when and where possible. 64. A fourth lesson learned is that capacity building on an institutional level cannot be viewed as just a one -off intervention, but rather, demands ongoing support given that adequate human resources can evaporate quickly. As noted, the project was successful at training MEF staff in order to improve capacities to engage in revenue collection, budget preparation and execution, procurement, and internal audit and oversight. At the same time, a high level of staff- turnover through rotations and retirement has meant that HR capacity in certain institutions, such as the CS-SC (Court of Page 30 of 66 The World Bank ML- Governance and Budget Decentralization Technical Assistance Project ( P112821 ) Accounts) has been reduced, as evidenced by the inability to meet their annual work plan in the final year of the project. Accordingly, a key lesson learned is that stability of key staff is important to achieve the project development objectives, and staff instability mitigation should be discussed and potential solutions suggested during the project negotiation. Likewise, an FCV environment may make it difficult to recruit and maintain staff in regional areas, which are most acutely affected by conflict and political instability. Accordingly, capacity building activities in project design need to go beyond producing a manual or a strategic action plan, and need to provide ongoing resources for capacity development. 65. A fifth lesson learned is the importance of supporting policies though a DPO, which is linked to technical assistance from an IPF, in order to support commitment, coordination, and cooperation in FCV environments. While the recommendation to support FCV countries with a combination of systematic budget support and technical assistance provided through investment project financing was initially recommended by the 2011 WDR of Fragility, Conflict, and Development, it remains relevent today in the context of the 2017 WDR, Governance and the Law. As noted above, the Mali Budget Decentralization Technical Assistance Project was developed in the context of the Second Action Plan for the Strengthening and Modernization of Public Financial Management (PAGAM II), which was designed to provide technical assistance to the implementation of the ongoing development policy operations, notably PRSC-3 to PRSC-5. In doing so, the project was able to support both policies and capacities to enable “commitment” through focusing sectoral reform efforts on a targeted set of PFM objectives; “coordination” by supporting a PIU that was able to manage different project beneficiaries and implementing agencies in a complex environment; and “cooperation” by ensuring that local governments were able to learn from each other’s experiences, as evidenced by the scaling up of certain project activities to areas not originally envisioned in the project design. 66. A final lesson learned is the importance of ensuring strong project leadership and ownership as well as adaptive project management, all of which were critical elements in putting the project back on track during the conflict. As noted above, the project began to stall in the first half of the implementation period, largely due to exogenous changes in the operating environment caused by political instability and conflict in the northern regions. While the installation of a dedicated PIU helped to improve project implementation, effective PIU leadership was especially important in addressing project challenges. In particular, a PIU director was appointed who had the right combination of technical stills and political seniority, which enabled the PIU to better identify challenges and resolve institutional bottlenecks when they occurred. This leadership was complemented by flexibility in the operating approach whereby “positive deviance” was embraced: areas where the project performed well were scaled-up, and areas where the project stalled or was not producing results were cancelled and funds reallocated to better performing activities. By proactively and adaptively managing the implementation of the project in this manner, both the Bank and the government were able to overcame hurdles during the implementation period and achieve the project development objectives. Moreover, such adaptive management and leadership allowed for more project activities to be completed during the implementation period than were originally planned, as well as for less cost than originally planned, which represents significant value-for-money. Page 31 of 66 The World Bank ML- Governance and Budget Decentralization Technical Assistance Project ( P112821 ) . ANNEX 1. RESULTS FRAMEWORK AND KEY OUTPUTS A. RESULTS INDICATORS A.1 PDO Indicators Objective/Outcome: Outcome Area 1: Strengthened Capacity for PFM at the Decentralized Level Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion Time required for the Days 98.00 80.00 73.00 67.00 treatment of procurement files 31-Dec-2010 31-Dec-2014 30-Jun-2017 30-Jun-2017 Comments (achievements against targets): Achieved. Time for the treatment of procurement files at the local-level declined from 98 to 67 days, exceeding the final target of 73 days. Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion Time necessary to Months 18.00 3.00 3.00 1.00 consolidate data at central level on fiscal revenues at the 30-Jun-2014 30-Jun-2017 30-Jun-2017 30-Jun-2017 CT level Comments (achievements against targets): Achieved. Time for the consolidation of fiscal revenues at the local level declined from 18 months to just 1 month, exceeding the final target of 3 months. Page 32 of 66 The World Bank ML- Governance and Budget Decentralization Technical Assistance Project ( P112821 ) Objective/Outcome: Outcome Area 2: Improved Budgetary Decision Making Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion Quarterly report of resources Number 0.00 4.00 6.00 6.00 transferred to the education sector to pilot CTs based on 31-Dec-2011 31-Dec-2015 30-Jun-2017 30-Jun-2017 the M&E of expenditure software and of pilot CTs having done reporting on the use of their resources. Comments (achievements against targets): Achieved: Four reports done in 2016, and two reports were completed in 2017 for the last two quarters of 2016, thus meeting the final project targets. Objective/Outcome: Outcome Area 3: Enhanced Transparency and Oversight Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion Number of management Percentage 0.00 100.00 30.00 17.00 accounts from CTs reviewed and judged by the SCCS as 30-Jun-2011 31-Dec-2015 30-Jun-2017 30-Jun-2017 compared to their annual work program Comments (achievements against targets): Partially Achieved: Targets were met for 2014, 2015, and 2016; however, only 17% of management accounts were reviewed by project closure, against a final target of 30%. Indicator Name Unit of Measure Baseline Original Target Formally Revised Actual Achieved at Page 33 of 66 The World Bank ML- Governance and Budget Decentralization Technical Assistance Project ( P112821 ) Target Completion Citizen?s control report Number 0.00 5.00 5.00 6.00 produced by the Surveillance committees (Comités de 31-Dec-2010 31-Dec-2015 31-Dec-2016 30-Jun-2017 veille) and the CNSC to improve public service quality Comments (achievements against targets): Achieved. Over the life of the project, six control reports were produced by the citizen’s surveillance committees—one in each targeted district and one at the national level—exceeding the final target of five. Target: 5 reports for 2016, with no targets for 2017 because this is something produced only at the end of the calendar year. A.2 Intermediate Results Indicators Component: Component 1 - Strengthening Capacity for PFM at Decentralized level Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion Number of treasury Number 0.00 30.00 67.00 69.00 representations, fiscal centers and financial 30-Apr-2011 31-Dec-2014 30-Jun-2017 30-Jun-2017 controlers at CT level equipped with IT and solar kit Comments (achievements against targets): Achieved. Over the life of the project, 69 centers have been equipped with IT and solar equipment, exceeding the final target of 67. Page 34 of 66 The World Bank ML- Governance and Budget Decentralization Technical Assistance Project ( P112821 ) Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion Specialized offices of Number 0.00 14.00 70.00 76.00 CUH/CRH equipped with estate management software 30-Jun-2011 30-Jun-2016 30-Jun-2017 30-Jun-2017 and number of treasury offices (local) equipped with Colloc Comments (achievements against targets): Achieved. Over the life of the project, 76 CUH/CRH offices have been equipped with estate management or COLLOC equipment, exceeding the final target of 70. Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion DFM and DRM Number 0.00 30.00 48.00 60.00 interconnected with DGMP- DSP (cumulative value) 31-Dec-2010 31-Dec-2015 30-Jun-2017 30-Jun-2017 Comments (achievements against targets): Achieved. Over the life of the project 60 interconnections have been made between DFM/DRM and DGMP- DSP, exceeding the final target of 48. Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion Buyer?s guide is posted in Yes/No N Y Y Y the MEF website 31-Dec-2010 31-Dec-2014 30-Jun-2017 30-Jun-2017 Page 35 of 66 The World Bank ML- Governance and Budget Decentralization Technical Assistance Project ( P112821 ) Comments (achievements against targets): Achieved. A Buyer’s Guide is now posted on the MEF website. Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion Guide on fiscal Yes/No N Y Y Y administration is available 31-Dec-2011 31-Dec-2015 30-Jun-2017 30-Jun-2017 Comments (achievements against targets): Achieved. A guide of fiscal administration is now available. Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion Persons trained with the Number 0.00 5000.00 6000.00 6270.00 support from the PAT (cumulative value) 31-Dec-2010 31-Dec-2014 30-Jun-2017 30-Jun-2017 Women trained (cumulative Number 0.00 1500.00 800.00 976.00 value) 31-Dec-2010 31-Dec-2014 30-Jun-2017 30-Jun-2017 Comments (achievements against targets): Achieved. Over the life of the project 6,270 people have been trained in key PFM functions, including representatives of local governments and CSOs, exceeding the final target of 6,000. Of those trained in key PFM functions, 976 (15.5%) were women, exceeding the final target of 800. Component: Component 2 - Pilot New PFM Tools in the Basic Education and Health Sectors Indicator Name Unit of Measure Baseline Original Target Formally Revised Actual Achieved at Page 36 of 66 The World Bank ML- Governance and Budget Decentralization Technical Assistance Project ( P112821 ) Target Completion Number of CTs equipped Number 0.00 10.00 10.00 62.00 with IT, software and solar kit 30-Jun-2011 30-Jun-2017 30-Jun-2017 30-Jun-2017 Comments (achievements against targets): Achieved. Over the life of the project, 62 local government administrations were equipped with IT and Solar kits, exceeding the final target of 10. Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion Report on allocation criteria Yes/No N Y Y Y of ressource transfers to CTs in the education sector 30-Jun-2011 30-Jun-2017 30-Jun-2017 30-Jun-2017 Comments (achievements against targets): Achieved: A report on the allocation criteria is now available for the education sector. Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion PETS and beneficiary survey Yes/No N Y Y Y undertaken (health and education sectors) 31-Dec-2010 31-Dec-2014 31-Dec-2016 31-Mar-2017 Comments (achievements against targets): Component: Component 3 - External Oversight and Community Participation Page 37 of 66 The World Bank ML- Governance and Budget Decentralization Technical Assistance Project ( P112821 ) Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion Number of CTs have Number 0.00 50.00 50.00 30.00 undertaken a public restitution of the 30-Jun-2011 30-Jun-2017 30-Jun-2017 30-Jun-2017 management account and of the implementation of the PDSEC Comments (achievements against targets): Not Achieved. Over the life of the project only 30 public restitutions have been carried out, against final target of 50. Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion Annual Report of the SCCS Number 0.00 1.00 1.00 1.00 published 31-Dec-2011 31-Dec-2014 31-Dec-2016 30-Jun-2017 Comments (achievements against targets): Achieved. Annual reports of the SCCSs have been published at least once during each of the last three years of the project. Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion Targeted audit reports Number 0.00 60.00 11.00 11.00 prepared by the Audit section of the Supreme court 31-Dec-2011 30-Jun-2016 23-Jun-2017 30-Jun-2017 Page 38 of 66 The World Bank ML- Governance and Budget Decentralization Technical Assistance Project ( P112821 ) Comments (achievements against targets): Achieved. Over the life of the project, 11 targeted audit reports have been prepared, in line with the final target of 11 by the end of the project. Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion Citizen?s budget prepared Number 0.00 80.00 50.00 62.00 and published (cumulative value) 31-Jan-2011 30-Jun-2016 30-Jun-2017 30-Jun-2017 Comments (achievements against targets): Achieved. Over the life of the project, 69 Citizen’s Budgets have been produced at the local level, exceeding the final target of 50. Page 39 of 66 The World Bank ML- Governance and Budget Decentralization Technical Assistance Project ( P112821 ) A. KEY OUTPUTS BY COMPONENT Objective/Outcome 1: Strengthened Capacity for PFM at the Decentralized Level 1. Time required for the treatment of procurement files (Days) Outcome Indicators 2. Time necessary to consolidate data at central level on fiscal revenues at the CT level (Months) 1. Number of treasury representations, fiscal centers and financial controllers at CT level equipped with IT and solar kit (Number, Cumulative) 2. Guide on fiscal administration is available (Yes/No) 3. DFM and DRM interconnected with DGMP-DSP (Number, Cumulative) Intermediate Results Indicators 4. Buyer’s guide is posted in the MEF website (Yes/No) 5. Specialized offices of CUH/CRH equipped with estate management software and number of treasury offices (local) equipped with COLLOC (Number, Cumulative) 6. Persons trained with the support from the Project (Number, Cumulative) 7. Women trained (Number, Cumulative) 1. Sub-Component 1.1: Resource Mobilization at Local Level x Prepared a local tax policy that clarifies the roles of the main stakeholders x Prepared and implemented a strategy for the development of Key Outputs by Component local taxation (linked to the achievement of the Objective/Outcome 1) x Provided equipment and software to staff of the tax centers of the District, DGI, Treasury, DNDC, and CTs x Completed of study on the organization and performance of local taxation x Completed of study to identify resources to be transferred to Page 40 of 66 The World Bank ML- Governance and Budget Decentralization Technical Assistance Project ( P112821 ) CT in consultation with stakeholders x Equipped 14 specialized offices (Domaines et Cadastre) x Trained 140 staff on new CUH/CRH procedures x Assembled a dossier of legal tools related to local taxation (laws, decrees, arêtes, and instructions) 2. Sub-Component 1.2: Budget Preparation and Monitoring x Trained trainers in budget preparation and execution x Trained staff including at CT level on budget preparation and execution x Strengthened the MTEF framework x Improved the forecasting model that informs the MTEF x Prepared a strategy to introduce program budgets at deconcentrated level. x Revised budget execution procedures in line with program budgeting x Trained staff on MTEF x Trained staff on results based budgeting x Prepared guidelines on program performance monitoring and evaluation x Trained staff on perspective analysis and strategic planning x Surveyed resources that could be channeled to CTs (Budget, sector funds) x Determined criteria for the allocation of resources to CT x Strengthened CBMT quality through involving more stakeholders (IT equipment) 3. Sub-Component 1.3: Procurement x Prepared procedure manuals on procurement at CT level x Prepared and disseminated a procurement buyers guide. Page 41 of 66 The World Bank ML- Governance and Budget Decentralization Technical Assistance Project ( P112821 ) x Compiled in CD and paper support of key regulations on procurement x Expanded electronic interconnection among credit managers of sector departments and regions and central procurement entities x Established a procurement standardized archiving system x Trained trainers and 1060 CT staff on the new procurement procedures and disseminate information x Conducted Workshop to Conclude and Summarize Procurement Reforms x Train key staff at DGMP on Procurement procedures on good and services x Training of key procurement staff on IDA procurement procedures 4. Sub-Component 1.4: Accounting and Internal Controls x Trained R/P agents on the CTs budget and accounting nomenclature x Installed of the software COLLOC in R/P of and CT x Trained CT staff on the use of the integrated COLLOC x Equipped 30 R/P with IT equipment and solar power kits x Developed an archiving system for accounting documents of CT x Prepared guidelines on the compilation of administrative accounts x Trained staff on the new guidelines of administrative accounts x Evaluated the training programs for staff of the Local Delegations of DNCF on control procedures x Updated the guide to put in place a reporting system for management accounts for accountants at treasury x Trained staff on new guidelines for management accounts Page 42 of 66 The World Bank ML- Governance and Budget Decentralization Technical Assistance Project ( P112821 ) x COLLOC modules is put in place at regional level x Equipped 30 R/P with IT equipment and solar power kits x Created of a dossier of texts related to PFM at the local level (laws, decrees, arêtes, and instructions) x Trained RP accountants in CTs in WAEMU directives related to local administration. x Trained Treasury staff on tools of financial analysis for the CTs. x Trained local audit and control staff in the CTs on audit and computer use. x Trained agents in techniques for internal control x Equipped local audit offices in the targeted regions with IT and solar kits Objective/Outcome 2: Outcome Area 2: Improved Budgetary Decision Making 1. Quarterly report of resources transferred to the education sector to pilot CTs based on the M&E of expenditure software and of pilot CTs Outcome Indicators having done reporting on the use of their resources. (Number, Annual) 1. Report on allocation criteria of resource transfers to CTs in the education sector (Yes/No, Custom) 2. Cumulative number of CTs equipped with IT, software and solar kit Intermediate Results Indicators (Number, Cumulative) 3. PETS and beneficiary survey undertaken (health and education sectors) (Yes/No) 1. Sub-Component 2.1: Education Pilot Key Outputs by Component x Prepared criteria for resource allocation in education at (linked to the achievement of the Objective/Outcome 2) subnational level, and prepared guidelines and train staff in their use Page 43 of 66 The World Bank ML- Governance and Budget Decentralization Technical Assistance Project ( P112821 ) x Prepared guidelines on decentralized planning and train staff in their use x Prepared guidelines on supervision of works and train staff in their use x Disseminated and operationalized decree 02- 312 x Developed and piloted a technical and financial monitoring and evaluation system for CTs on education x Strengthened the capacity of the CADDE x Developed PETS and beneficiary surveys x Provided Additional Equipment for CT Education Service Delivery 2. Sub-Component 2.2: Health Pilot x Disseminated and trained CTs officials on the Guidelines on Decree 02-314 x Prepared and disseminated guidelines on health center management and train selected entities. x Trained CT staff on decentralized planning, PRODESS, partnerships and cost sharing x Provided Capacity building and supervision - CADDE MS x Developed PETS and beneficiary surveys x Developed Training Manuel on heath decentralization developed x Prepared Dossier of text related to decentralization of health activities. x Prepared Translation into local languages the key texts and training tools for improved ownership. Page 44 of 66 The World Bank ML- Governance and Budget Decentralization Technical Assistance Project ( P112821 ) Objective/Outcome 3: Enhanced Transparency and Oversight 1. Number of management accounts from CTs reviewed and judged by the SCCS as compared to their annual work program (Percentage) Outcome Indicators 2. Citizen’s control report produced by the Surveillance Committees and the CNSC to improve public service quality (Number, Cumulative) 1. Annual Report of the SCCS published (Number, Annual) 2. Cumulative number of Citizen Budgets prepared and Published (Number, Cumulative) Intermediate Results Indicators 3. Targeted audit reports prepared by the Audit section of the Supreme court (Number, Cumulative) 4. Number of CTs have undertaken a public restitution of the management account and of the implementation of the PDSEC 1. Sub-Component 3.1: External Audit x Created an archive and documentation center for the SCCS x Prepared of a deontology code x Provided Technical assistance for the transition to a new Accounts Court x Introduced and trained 20 new auditors x Developed Software for audit activities x Conducted study visits and internships Key Outputs by Component x Prepared annual reports (linked to the achievement of the Objective/Outcome 3) x Piloted sub-contractual arrangements with private auditors 2. Sub-Component 3.2: Participation x Prepared of citizen budgets x Developed a mechanism to support CT to collect and treat financial data to inform citizen surveillance committees x Conducted Study visits x Produced an Information Campaign for Citizens on PFM Page 45 of 66 The World Bank ML- Governance and Budget Decentralization Technical Assistance Project ( P112821 ) Governance and Budget Decentralization TA Project Theory of Change Page 46 of 66 The World Bank ML- Governance and Budget Decentralization Technical Assistance Project ( P112821 ) Outputs by Component (restructured activities in red) Outcome Area 1: Strengthening Capacity for PFM at the Decentralized Level Key Project Output Status at Project Closure Sub-Component 1.1: Resource Mobilization at Local Level x Prepare a local tax policy that clarifies the roles of the main stakeholders x Achieved. Two studies have been prepared to identify resource transfers to CTs. x Prepare and begin implementation of a strategy for the development of x Achieved. A strategy has been put in place to mobilize local resources starting in local taxation 2013/2014. x Train officials of the DGI, DNDC, DNCT and of CT on surveying and collection x Cancelled. This activity was cancelled during the restructuring and the resources of tax revenues. were used to support other reform agendas. x Provide adequate equipment and software to staff of the tax centers of the x Achieved. Additional equipment was provided including software for tax District, DGI, Treasury, DNDC, and CTs administration, treasury, DNCD, and the district of Bamako. x Undertake study on the organization and performance of local taxation x Achieved. A final report was completed in 2014 and two workshops were held to validate the report. x Undertake a study to identify resources to be transferred to CT in x Achieved. A final report was completed and validated during a national workshop consultation with stakeholders held in July 2013. x Strengthen the capacity of DNCT x Achieved. The three activities below represent the achievement of this output. x Dissemination workshops on the operational guidelines x Not Achieved. This activity was not completed. x Equip 14 specialized offices (Domaines et Cadastre) x Achieved. The CUH/CRH software was developed and is being used by the DNCD and used in 12 land registry offices. x Train 140 staff on new CUH/CRH procedures x Achieved. 296 staff were trained of which were 86 were trained in the management of CUH and CRH, above a target of 140. x Dissemination of key land, property and urbanism legal documents x Not Achieved. This activity was not completed. x ADDED: Equip 12 tax centers at the local level with IT equipment and solar x Partially Achieved: The local tax centers received the IT equipment and computers kits but the costs exceeded estimates and solar panels were not met. x ADDED: Assemble a dossier of legal tools related to local taxation (laws, x Achieved. This document has been created and 1000 copies have been printed and decrees, arêtes, and instructions) distributed. x ADDED: Training on public reporting for local leaders x Not Achieved. This activity was not completed. Sub-Component 1.2: Budget Preparation and Monitoring x Train trainers in budget preparation and execution x Achieved. 48 people were trained as trainers for budget preparation and execution in relevant sectoral ministries, of which 25 were women. x Training staff including at CT level on budget preparation and execution x Achieved. Staff were trained for budget preparation and execution in Kayes, Koulikoro, and Bamako in 2014. x Strengthen the MTEF framework x Achieved. The three activities below represent the achievement of this output. x Improve the forecasting model that informs the MTEF x Achieved. A consultant was appointed to update and improve the forecasting model and a workshop was organized which validated the new model. Page 47 of 66 The World Bank ML- Governance and Budget Decentralization Technical Assistance Project ( P112821 ) x Expand MTEF to include CT x Cancelled. This activity was cancelled during the restructuring and the resources were used to support other reform agendas. x Prepare a strategy to introduce program budgets at deconcentrated level. x Achieved. The strategy was elaborated and transmitted to the Bank in 2017. x Revise budget execution procedures in line with program budgeting x Achieved. The final report was elaborated and transmitted to the Bank in 2017. x Train staff on MTEF x Achieved. 47 staff were trained on the new MTEF of which 7 were women. x Train staff on results based budgeting x Partially Achieved. 30 were initially trained, but the second planned training session was cancelled. x Prepare guidelines on program performance monitoring and evaluation x Achieved. The final report was elaborated and transmitted to the Bank in 2017. x Train staff on perspective analysis and strategic planning x Partially Achieved. 39 people were trained, but further trainings were cancelled and resources were transferred to support other reform areas. x Survey resources that could be channeled to CTs (Budget, sector funds) x Achieved. This activity was achieved. x Determine criteria for the allocation of sector funds through ANICT x Cancelled. This activity was cancelled during the restructuring and the resources were used to support other reform agendas. x Assess financial resources of the sectors x Cancelled. This activity was cancelled during the restructuring and the resources were used to support other reform agendas. x Determine criteria for the allocation of resources to CT x Achieved. A report on how to allocate resources to CT is available and is currently used by the Government to allocated resources to CT x Determine State contributions to FNACT x Cancelled. This activity was cancelled during the restructuring and the resources were used to support other reform agendas. x Prepare legal documents and regulations on transfers x Cancelled. This activity was cancelled during the restructuring and the resources were used to support other reform agendas. x Strengthen CBMT quality through involving more stakeholders (IT x Achieved. Government hosted workshop to prepare the MDTF and IT equipment equipment) was provided for DGB in 2015. Sub-Component 1.3: Procurement x Prepare procedure manuals on procurement at CT level x Achieved. The new code of procedures was completed and validated in 2016. x Preparation and dissemination of a procurement buyers guide. x Achieved. The new procurement buyers guide was completed and validated in 2016. x Compilation in CD and paper support of key regulations on procurement x Achieved. 2000 CD-ROMs and 4000 copies of the text have been made available procurement staff in October 2013. x Expand electronic interconnection among credit managers of sector x Achieved. An Oracle system was put in place to allow for a connection between DFM departments and regions and central procurement entities (credit managers) and the procurement departments at both the central and local levels in the targeted regions, which greatly improved to timeliness of the procurement process and monitoring. x Establish a procurement standardized archiving system x Achieved. A procurement archiving system was established in Feb 2016, which is now used by the procurement office at the national level and greatly enhance organization. x Train trainers and 1060 CT staff on the new procurement procedures and x Achieved. Training of trainers was held in Bamako in 2014 and training of local staff disseminate information took place Koulikoro, Kayes, Segou, and Sikasso with 384 beneficiaries. Page 48 of 66 The World Bank ML- Governance and Budget Decentralization Technical Assistance Project ( P112821 ) x ADDED: Workshop to Conclude and Summarize Procurement Reforms x Achieved. This Workshop took place in August 2016. x ADDED: Train key staff at DGMP on Procurement procedures on good and x Achieved. Training took place in Dakar to learn best practices from other countries. services x ADDED: Training of key procurement staff on IDA procurement procedures x Achieved. Training took place in October 2015 where 60 people in total were trained over two sessions. Sub-Component 1.4: Accounting and Internal Controls x Train R/P agents on the CTs budget and accounting nomenclature x Achieved. Four workshops were organized for 200 people in Koulikoro, Kayes, Segou, Bamako, and Sikasso. x Installation of the software COLLOC in R/P of and CT x Achieved. COLLOC was developed and deployed in 64 Treasury R-Ps in charge of local revenue collection. This greatly reduces the time to consolidate the revenues collected at the local level at the treasury. x Develop the interface between COLLOC and the Treasury accounting x Not Achieved. The interface was not completed because the Treasury system is not software yet available. It is connected to the treasures, but not all so there is limited functionality. x Train CT staff on the use of the integrated COLLOC x Achieved. A total of 132 local treasury staff benefiting from the COLLOC training in the targeted regions. x Equip 30 R/P with IT equipment and solar power kits x Achieved. IT and solar equipment was delivered in 2014 for all 30 R/P at the local levels. x Develop an archiving system for accounting documents of CT x Achieved. An archiving system as put in place at the treasury to centralize CT accounting documents. x Prepare guidelines on the compilation of administrative accounts x Achieved. The guide was completed and disseminated in November 2014, with 500 copies printed and 202 CDs distributed. x Train staff on the new guidelines of administrative accounts x Achieved. 196 treasury agents were trained in the new guidelines, of which 48 were women. x Evaluate the training programs for staff of the Local Delegations of DNCF on x Achieved. No additional Information. control procedures x ADDED: Update the guide to put in place a reporting system for x Achieved. The guidelines were prepared and validated in 2011. management accounts for accountants at treasury x ADDED: Train staff on new guidelines for management accounts x Achieved. 208 agents of RP were trained in the new guidelines in Koulikoro, Kayes, Segou, Bamako, and Sikasso, and another 62 were trained in Mopti, Timbuctoo, and Gao, but this was financed by GIZ. x ADDED: COLLOC modules is put in place at regional level x Achieved. COLLOC was put in place at the regional level to serve as a bridge between the local and central levels. x ADDED: Equip 30 R/P with IT equipment and solar power kits x Achieved. IT and solar equipment was delivered in 2016 for 10 additional R/P at the local levels. x ADDED: Creation of a dossier of texts related to PFM at the local level (laws, x Achieved. This dossier was assembled and 700 copies were made available. decrees, arêtes, and instructions) x ADDED: Training of RP accountants in CTs in WAEMU directives related to x Achieved. In 2016 250 people were trained in the regions targeted by the projects of Page 49 of 66 The World Bank ML- Governance and Budget Decentralization Technical Assistance Project ( P112821 ) local administration. which 54 were women. x ADDED: Train Treasury staff on tools of financial analysis for the CTs. x Achieved. 77 people were trained in this domain in 2015. x ADDED: Training of local audit and control staff in the CTs on audit and x Achieved. 16 controllers from the local level were trained in April of 2014. computer use. x ADDED: Training of agents in techniques for internal control x Achieved: 20 staff at local level benefitted from the training 2015. x ADDED: Equip local audit offices in the targeted regions with IT and solar x Achieved. Due to the restructuring, additional offices were equipped with IT and kits solar equipment. Outcome Area 2: Improving Decision Making in Education and Health Sectors Key Project Output Status at Project Closure Sub-Component 2.1: Education Pilot x Prepare criteria for resource allocation in education at subnational level, x Achieved. A guide for resource allocation was made available including criteria in prepare guidelines and train staff in their use education at the subnational level, and training was provided to local elected officials as well as employees at the Ministry of Education at the local level. x Prepare guidelines on decentralized planning and train staff in their use x Achieved. A guide on decentralized planning was completed in 2017, and training was provided to local elected officials as well as employees at the Ministry of Education at the local level. x Prepare guidelines on supervision of works and train staff in their use x Achieved. These activities were included in the development of M&E capacities work CTs and CADDE. x Dissemination and operationalization of decree 02- 312 x Achieved. Workshops were organized in the selected regions in 2014 to sensitize local communities on resource transfers to the education sector. x Develop and pilot a technical and financial monitoring and evaluation x Achieved. The systems were developed and put in place in 2014, and the software to system for CTs on education monitor expenditure at local level has been implemented in 28 CTs. x Strengthen the capacity of the CADDE x Achieved. Monitoring software was developed for CADDE and 4 key staff were trained in Canada on in M&E by SETYM. x Develop and pilot a participatory monitoring and evaluation framework for x Cancelled. This activity was cancelled during the restructuring and the resources CTs on education were used to support other reform agendas. x PETS and beneficiary surveys x Achieved. Two beneficiary satisfaction reports have been completed and validated in 2015. x ADDED: Additional Equipment for CT Education Service Delivery x Achieved. 10 solar kits were delivered to 10 CT and 30 computers were delivered to 30 CT to help with monitoring education expenditure at local level. Sub-Component 2.2: Health Pilot x Dissemination and training of CTs officials on the Guidelines on Decree 02- x Achieved. 12 workshops were conducted between 2013-2014 to sensitize local 314 communities on resource transfers to the health sector, including 571 beneficiaries. A guide was printed and 400 copies were distributed. x Preparation and dissemination of guidelines on health center management x Achieved. 12 workshops were conducted between 2013-2014 to sensitize local Page 50 of 66 The World Bank ML- Governance and Budget Decentralization Technical Assistance Project ( P112821 ) and train selected entities. communities on resource transfers to the health sector, including 571 beneficiaries. A guide was printed and 400 copies were distributed. x Train CT staff on decentralized planning, PRODESS, partnerships and cost x Achieved. 310 people including 52 women people were trained in decentralization sharing planning as well as other tools (PRODRESS and the manual of procedures) in the heath sector. Training was also provided on facilitation of local partnerships and cost sharing arrangements. x Capacity building and supervision - CADDE MS x Achieved. Supervision was conducted in the four targeted regions in 2015 including Segou, Markala, Kita as well as Kangaba in 2016. A Local partner manual was completed and 3400 copies disseminated. x Evaluation of the decentralization in the health sector x Cancelled. This activity was cancelled during the restructuring and the resources were used to support other reform agendas. x PETS and beneficiary surveys x Achieved. Satisfaction surveys were completed in 2016 in the health sector. x ADDED: Training Manuel on heath decentralization developed x Achieved. Manual was developed in 2015 and 1,400 copies were disseminated. x ADDED: Dossier of text related to decentralization of health activities. x Achieved. The dossier was developed in 2014. x ADDED: Translation into local languages the key texts and training tools for x Achieved. Text was translated into 4 local languages in 2015. improved ownership. Outcome Area 3: Improving Citizen Engagement and External Control Key Project Output Status at Project Closure Sub-Component 3.1: External Audit x Create an archive and documentation center for the SCCS x Achieved. An archive was developed and training was provided to the audit section of the Cours des Comptes. A related software system was put in place. x Preparation of a deontology code x Achieved. A code of ethics was developed for the Cours des Comptes in 2014. x Technical assistance for the transition to a new Accounts Court x Achieved. Technical assistance was provided to strengthen capacity to examine accounts. x Introduction and training of 20 new auditors x Achieved. 20 auditors were trained and added to the court of accounts in 2011. x Software for audit activities x Achieved. Software was developed in 2014 to manage the case load of the Cours des Comptes included those related to local communities’ accounts as well as those of other public entities (e.g. hospitals, universities, etc). x Study visits and internships x Achieved. Two judges went on study trip to Rochelle in 2015, two judges participated in 7th General Assembly of the Francophone Audit Bodies (AISCCUF) in Brussels in 2015. Two study tours were taken to Benin and Morocco for three advisors to study comparator institutions. x Preparation of annual reports x Achieved. Annual Report 2014 was completed and validated in 2016. Annual report 2013 was completed and validated in 2015. Annual report 2012 was completed and validated. Page 51 of 66 The World Bank ML- Governance and Budget Decentralization Technical Assistance Project ( P112821 ) x Pilot sub-contractual arrangements with private auditors x Achieved. Targeted Audits were completed in 2015 in 11 CT and the reports made available. This activity was discontinued after 2015. x Supervision x Achieved. 10 million CFA were provided for supervision activities of the Cours de Comptes at the level. Sub-Component 3.2: Participation x Preparation of citizen budgets x Achieved. Citizen Budgets were prepared and released starting in 2015. A public information campaign was undertaken publicize this document. x Develop a mechanism to support CT to collect and treat financial data to x Achieved. Computers were provided to citizen’s surveillance committees in 2016 inform citizen surveillance committees for them to treat financial information. Local communities were helped to collect data and provide inputs to government during the PRSP review process. Reports on citizens’ views on local government management and issues were provided in this process. x Study visits x Achieved. Study tours were to Sikasso in 2015 for 57 people in order to share experience with public monitoring mechanisms. x ADDED: Information Campaign for Citizens on PFM x Achieved: Public gatherings, TV and radio commercials, as well as focus group discussions were provided. Page 52 of 66 The World Bank ML- Governance and Budget Decentralization Technical Assistance Project ( P112821 ) Reallocation of Costs between Components COMPONENT Original Cost in New Cost After Summary of Changes PAD (in millions) Restructuring (in millions) Component 1: Strengthening capacity 7.1 6.7 The allocation to component 1 of USD 7.1 million was reduced to USD 6.7 million. The for PFM at decentralized level. change was caused by: (i) savings on implemented activities; (ii) rationalization of some x 1.1: Resource mobilization at local 1.6 1.48 activities; (iii) cancellation of some activities; and (iv) scaling-up of targeted activities. level Hence, while the overall allocation was reduced, the sub-component concerning x 1.2: Budget preparation and 1.4 1.1 accounting and internal controls received an increase in resources. Additional monitoring activities under this component included equipping an additional 12 regional fiscal x 1.3: Procurement 2.4 1.9 centers with IT and solar energy equipment, the reproduction of laws and regulations, x 1.4: Accounting and internal 1.7 2.3 and capacity building and training. controls Component 2: Pilot new PFM 2.0 1.9 The allocation to component 2 of USD 2.0 million was reduced to USD 1.9 million. The procedures in Education and Health change was caused by: (i) savings on implemented activities; (ii) cancellation of some x 2.1: Education Pilot 1.2 1.2 activities; and (iii) scaling-up of targeted activities. Additional activities under this x 2.2: Health Pilot 0.8 0.7 component included equipping an additional 10 CTs in the education sector with IT and solar energy equipment, the reproduction of laws and regulations, and capacity building and training. Component 3: External Oversight and 1.7 2.0 The allocation to component 3 of USD 1.7 million was increased to USD 2.0 million. Community Participation The change was caused by: (i) savings on implemented activities from other x 3.2: External audit 1.3 1.3 components; (ii) cancellation of some activities; and (ii) scaling-up of targeted x 3.3: Participation 0.4 0.7 activities. Additional activities under this component included scaling-up activities to improve participation by civil society. Component 4: Project implementation 1.2 1.3 The allocation to component 4 of USD 1.2 million was proposed to be increased to USD and coordination 1.3 million. The change was due to the introduction a PEFA study, which constituted a new activity. TOTAL PROJECT COSTS 12.0 12.0 Page 53 of 66 The World Bank ML- Governance and Budget Decentralization Technical Assistance Project ( P112821 ) ANNEX 2. BANK LENDING AND IMPLEMENTATION SUPPORT/SUPERVISION A. TASK TEAM MEMBERS Name Role Preparation Supervision/ICR Ragnvald Michel Maellberg Task Team Leader(s) Mahamadou Bambo Sissoko Procurement Specialist(s) Tahirou Kalam Financial Management Specialist Salamata Bal Safeguards Specialist Amadou Konare Safeguards Specialist Heriniaina Mikaela Andrianasy Team Member Tahirou Keita Team Member Hawa Keita Team Member Page 54 of 66 The World Bank ML- Governance and Budget Decentralization Technical Assistance Project ( P112821 ) B. STAFF TIME AND COST Staff Time and Cost Stage of Project Cycle No. of staff weeks US$ (including travel and consultant costs) Preparation FY09 6.785 35,522.49 FY10 15.367 137,883.94 FY11 13.521 116,651.78 FY12 0 0.00 Total 35.67 290,058.21 Supervision/ICR FY11 0 13,387.29 FY12 .975 16,654.39 FY13 9.588 21,839.49 FY14 20.112 88,326.62 FY15 10.054 98,934.10 FY16 15.744 80,137.04 FY17 12.865 94,182.74 FY18 9.325 62,490.81 Total 78.66 475,952.48 Page 55 of 66 The World Bank ML- Governance and Budget Decentralization Technical Assistance Project ( P112821 ) ANNEX 3. PROJECT COST BY COMPONENT Amount at Approval Actual at Project Percentage of Approval Components (US$M) Closing (US$M) (US$M) Component 1: Strengthening capacity for PFM at 7.10 6.70 94% decentralized level Component 2: Piloting new public financial management tools in the education 2.00 1.92 96% (MEALN) and health (MS) sectors Component 3: External Oversight and Community 1.70 2.03 119% Participation Component 4: Project Implementation and 1.20 1.35 112% Coordination Unit Total 12.00 12.00 100% Page 56 of 66 The World Bank ML- Governance and Budget Decentralization Technical Assistance Project ( P112821 ) ANNEX 4. EFFICIENCY ANALYSIS While no formal, quantitative efficiency evaluation8 was conducted at appraisal, this ICR seeks to use what information is available to evaluate a number of the project’s financial and economic benefits from an ex post quantitative perspective. As noted below, the Governance and Budget Decentralization Technical Assistance project has produced a number of financial and economic benefits, including the following: x Increased Revenue Collection at the Local Districts Targeted by the Project. Sub-component 1.1 of the project focused on improving resource mobilization in 115 local communes located in five regions , including Koulikoro, Sikasso, Segou, Kayes, as well as the district of Bamako. Accordingly, under the project, 12 tax centers and 14 Bureaux des Domaines et du Cadastre (CUH/CRH) were equipped with IT, solar, and information management equipment for the management of local revenues. In addition, the project supported the development of estate management software package for specialized offices of CUH/CRH as well as COLLOC software for local recettes-perceptions offices. Moreover, a study was completed to identify the resources to be transferred to the communal level and a national strategy for the mobilization of resources from communes was developed. Finally, capacity building was provided with respect to revenue collection at the local levels and more than 5,000 hard copy dossiers of local tax laws, decrees, arêtes, and instructions were disseminated at the communal level. As a result of the activities supported under the project, the targeted local governments have improved capacity with respect to recording, managing, and collecting local revenues. In order to determine the additional economic benefits of the government’s increased capacity to collect revenues at the local level, this economic analysis develops a baseline scenario using the first year of the project implementation (2011) as a starting point and calculating year- on-year changes in aggregate revenues in the targeted districts based on the GDP growth rate for each year, thus serving as a proxy for revenue increases in the absence of any project intervention. This baseline scenario suggests an increase from 20.77 billion CFA in 2011 to 25.17 billion CFA in 2016. This baseline scenario can be compared to the actual collections done in the targeted districts, which amounts to an increase from 20.77 billion CFA in 2011 to 36.05 billion CFA at end 2016. Taking the difference between the scenarios over a five-year period 2011-2016, the project intervention can be correlated with a 39.31 billion CFA (US$ 70 million equivalent) cumulative increase in local revenues in targeted districts over the baseline scenario. Table 1: Project Additionality in Targeted Districts (Billions CFA) Project Year 2011 2012 2013 2014 2015 2016 GDP Growth Rate -0.0083 2.3035 7.0433 5.9625 5.3494 Baseline Revenues (in line with GDP Growth) 20.77 20.59 21.07 22.55 23.89 25.17 Actual Revenues (of targeted Communes) 20.77 23.76 26.4 32.85 33.55 36.05 Difference (Project Additionality) 3.16 5.32 10.29 9.65 10.87 Cumulative Total 3.16 8.49 18.78 28.43 39.31 88This, includes, inter alia, net present value, economic rate of return, cost effectiveness, unit rate norms, service standards, least cost analysis and comparisons, or financial rate of return Page 57 of 66 The World Bank ML- Governance and Budget Decentralization Technical Assistance Project ( P112821 ) Without disaggregated data to allow for a comparison of revenue performance in communes targeted by the project versus those not targeted by the project, it is difficult to establish complete attribution; however, a number of additional factors may be considered to strengthen the linkages between the project intervention and a counterfactual situation. First, while the 115 targeted communes demonstrated improved revenue recording and collection, this result occurred in an environment of overall declining fiscal revenues at the national level over the 2013-2016 period. As noted in PEFA 2016, total fiscal revenues declined from CFA 968 billion in 2013 to CFA 919 billion, which suggests that there was indeed some “treatment effect” that accounted for the exceedingly positive performance in the targeted districts. Second, this increase in resources was accompanied by an increase in the efficiency of the consolidation of fiscal revenues at the local levels—due in part to the implementation of the COLLOC system and the related capacity building—which reduced the time necessary to complete this tasks from 18 Months in 2011 to just one month in 2017. This improvement suggests that the recording of fiscal receipts increased over the period as well, thereby allowing the targeted districts to report greater revenues than other “untreated areas.” Figure 1: Local Revenues: Project Additionality Local Revenues: Project Additionality 40 35 30 Billions CFA 25 20 15 10 5 0 2011 2012 2013 2014 2015 2016 Project Year Project Additionality Baseline Revenues x Greater Efficiency in the Procurement Process at the Decentralized Level. The PAD noted that considerable public resource savings are likely to occur due to the rationalization and streamlining PFM processes implemented through the project. In particular, sub-component 1.3 worked to strengthen the regulatory framework for procurement in line with regional guidelines through the dissemination of procurement laws, regulations, and guidelines as well as capacity building for effective implementation, including through the introduction of IT tools. As a result, the time required for the treatment of procurement files has become significantly more efficient over the life of the project, declining from 98 days to just 67 days at the local level. While it is impossible to quantify these benefits, this improved efficiency can be correlated with improving procurement competitiveness as open tender increased significantly from 70.92% of the total amount awarded in 2009 to 90% in 2016. Likewise, direct contracting was reduced from 20.8% of Page 58 of 66 The World Bank ML- Governance and Budget Decentralization Technical Assistance Project ( P112821 ) the total awarded contracts in 2009 to 6% in 2016. Finally, restricted list procurements decreased from 9% to 3.9% of the total awarded amount over the same period. While it is difficult to quantify these efficiencies derived from more transparent and compliant procurement procedures, improvement in procurement capacities and competitiveness represent an economic benefit which makes society as a whole better off. x High Overall Level of Implementation Efficiency and Cost Savings. Given the improvements in project management and the proactive restructurings that occurred over the life of the project, the project managed to deliver more activities than were planned in the original design. At the same time, almost all project objectives were achieved vis- à-vis the results indicators, yet the final disbursement rate was 88.9% with an undisbursed amount of US$ 1.2 million. This suggests that the project was able to obtain all of its objectives in a manner more efficient than anticipated at the design stage. Page 59 of 66 The World Bank ML- Governance and Budget Decentralization Technical Assistance Project ( P112821 ) ANNEX 5. BORROWER, CO-FINANCIER AND OTHER PARTNER/STAKEHOLDER COMMENTS A stakeholder workshop was held in December 2017 to present the findings of the Bank’s ICR as well as to validate the results with key implementing agencies and project beneficiaries. The following comments issues were raised, which were subsequently incorporated into the ICR team’s overall findings: x Overall Ratings: The government welcomed the findings of the ICR and agreed with the overall ratings for project relevance, efficacy, and efficiency. The government also agreed with the assessment of project sustainability risks and Bank performance. The government thanked the Bank team for excellent collaboration in improving the capacity of local governments for the management of public finances. x Court of Accounts (SC-CS): During the stakeholder workshop, it was noted that SC-CS advisors should have been appointed in the 2nd quarter of 2017, but a delay in this process has meant that the 2017 work plan has not been executed as planned. Moreover, it was noted that 70% of the elected representatives have left office and therefore it will be necessary to retrain new members in oversight and external control functions. The draft statute of the Accounts Section has not been passed to Parliament as planned, which limits the possibly to re-staff the unit. x Lessons Learned: Stakeholder training on IDA procedures will need to be considered in future operations in order to limit delays in non-objections to World Bank procedures. x Efficiency: During the stakeholder workshop, it was noted that it will be necessary to better explain the benefits related to gains in procurement. While there are gains in terms of reduced delay in the processing of procurements, it will be important to understand the how the procurement reforms have resulted in improved efficiency and overall cost savings. In addition, it will be necessary to expand the scope of the analysis of increased local revenues to include communes in targeted districts that have not received project support. x Health Sector: While an allocation criteria has been applied to the Education sector effective in the 2019 budget year, the same has not occurred in the health sector. Page 60 of 66 The World Bank ML- Governance and Budget Decentralization Technical Assistance Project ( P112821 ) ANNEX 6. SUPPORTING DOCUMENTS (IF ANY) RESUME SUCCINT DU RAPPORT D’ACHEVEMENT DU POJET D’ASSISTANCE TECHNIQYE (PAT) 1. Introduction Le PAT a été conçu de manière participative dans un contexte de stabilité politique et sociale et mis en œuvre dans un environnement marqué par les conflits liés au terrorisme et à la rébellion. Le projet s’est aligné aux objectifs du gouvernement décliné dans son Plan d'Action Gouvernemental d'Amélioration et de Modernisation de la Gestion des Finances Publiques (PAGAM /GFP). Malgré l’environnement difficile de mise en œuvre, le projet a atteint presque entièrement ses objectifs. La note globale de la mise en œuvre du projet est « satisfaisant ». Les leçons apprises sur la mise en œuvre du PAT permettent de mieux préparer les prochaines opérations de la Banque mondiale au Mali. 2. Principales réalisations Le PAT a été bâti autour de quatre composantes à savoir (i) le renforcement des capacités de Gestion des Finances Publiques (GFP) au niveau décentralisé, (ii) la promotion et le pilotage de nouveaux outils de GFP dans les secteurs de l’éducation et de la santé, (iii) le renforcement du contrôle externe et de la participation communautaire pour une meilleure prestation de services, et (iv) l’exécution et la coordination du Projet. Pour mesurer la mise en œuvre, Le PAT a retenu 5 indicateurs de développement qui sont (i) le temps nécessaire pour le traitement des dossiers des marchés publics dans les 4 régions couvertes par le projet (ii) le nombre de rapports périodiques de contrôle citoyen produits et publiés par les comités de veille (iii) le pourcentage des comptes de gestion des Collectivités Territoriales (CT) jugés par la Section des Comptes de la Cour Suprême (SC/CS) par rapport à son programme (iv) le temps nécessaire pour la remontée et le traitement des données sur les recettes fiscales recouvrées au niveau des CT (v) le rapport trimestriel sur les crédits transférés aux CT pilotes sur la base du logiciel de suivi des dépenses et sur les CT ayant fait un rapport sur l'utilisation de leurs crédits. De manière générale, la mise en œuvre du projet a été satisfaisante avec quatre (4) objectifs sur cinq (5) entièrement atteints et un objectif partiellement atteint. La cible pour la Section des Comptes de la Cour Suprême pour 2017 consistait à un taux de réalisation de son plan de travail à la hauteur de 30% au 30 juin 2017, or le résultat obtenu était seulement de 17% conduisant ainsi à conclure que l’objectif a été partiellement atteint. 2.1. Renforcement des capacités de GFP au niveau décentralisé L’ensemble des principaux indicateurs et les indicateurs intermédiaires ont été réalisés. Cette composante comprenait quatre sous composantes notamment : (i) amélioration de la mobilisation des ressources au niveau décentralisé ; (ii) amélioration de la préparation et du suivi du budget ; (iii) amélioration de la passation des marchés publics ; et (iv) amélioration de la comptabilité et du contrôle interne. Au niveau de la mobilisation des ressources au niveau décentralisé, le projet a permis la préparation et la mise en œuvre d'une politique fiscale locale et une stratégie de mise en œuvre, qui ont amélioré le potentiel de mobilisation des ressources dans les localités ciblées. Le projet a de même amélioré la Page 61 of 66 The World Bank ML- Governance and Budget Decentralization Technical Assistance Project ( P112821 ) capacité des acteurs de la mobilisation des ressources au niveau local à travers des formations et des équipements et aussi en facilitant l’accès aux documents juridiques fiscaux de la gestion des collectivités locales. Pour ce qui est de la préparation et du suivi budgétaire, le PAT a renforcé la préparation du Cadre des Dépenses à Moyen Termes (CDMT) en améliorant le modèle de prévision utilisé dans la programmation budgétaire à moyen terme. Le projet a également contribué à l’implémentation du budget programme à travers la préparation d’une stratégie pour l'introduction des budgets programmes au niveau déconcentré. Des activités de renforcement des capacités sur l’élaboration du CDMT et du budget programme au profit des acteurs budgétaires ont été menées par le projet conduisant ainsi à l’amélioration de la préparation budgétaire reflétée à travers les indicateurs retenus. Au niveau de la passation des marchés publics, le PAT a renforcé le cadre réglementaire des marchés publics pour le rendre conforme aux directives régionales. A cela s’ajoute l’informatisation des marchés publics à travers la mise en place et le déploiement du SIGMAP au niveau central et dans les régions couvertes par le projet. En outre, un système Oracle a été mis en place pour permettre une connexion entre les Directions des Finances et du Matériel (DFM) et les structures de passation des marchés publics aux niveaux central et local dans les régions ciblées, éliminant ainsi la possibilité de passer des commandes publiques de manière manuelles. A cela, s’ajoute d’autres équipements informatiques, tels qu'un système d'archivage des marchés publics qui sont utilisés par les structures de passation des marchés publics améliorant considérablement la gestion des documents. Enfin, le PAT a renforcé les capacités des acteurs de marchés publics sur les nouvelles procédures et réglementations en matière de passation de marchés. Dans la sous composante relative à l’amélioration de la comptabilité et du contrôle interne La mise en place et le déploiement du logiciel (COLLOC) pour consolider les recettes locales au niveau central a permis réduire le temps de consolidation des comptes et a suscité un modèle harmonisé d’élaboration des comptes de gestion. Compte tenu du succès de cette initiative dans les quatre régions pilotes, le gouvernement a utilisé ses propres ressources pour étendre l'initiative à d'autres localités non couvertes par le projet. 2.2. Promotion et le pilotage de nouveaux outils de GFP dans les secteurs de l’Education et de la Santé L’ensemble des principaux indicateurs et les indicateurs intermédiaires ont été réalisés. Deux sous composantes ont été identifiées à savoir (i) pilote éducation (CDD éducation) et (ii) pilote santé (CDD santé). Au niveau de l’éducation, le projet a soutenu avec succès l'élaboration des outils de planification et d'allocation des ressources au niveau local. De même, des renforcements de capacités techniques et opérationnelles ont été apportés aux élus locaux ainsi qu'au personnel du ministère de l'éducation au niveau local. Le projet a également contribué à l'élaboration d'un système de suivi et d'évaluation technique et financier pour un meilleur contrôle des dépenses dans le secteur de l’éducation. En outre, le projet a mené une enquête de satisfaction afin d’avoir une meilleure connaissance des opinions des citoyens sur la performance du secteur au niveau local. L’ensemble de ces actions ont contribué à l’amélioration de la prise de décision au niveau local dans le secteur de l’éducation. Au niveau de la santé, avec l’appui du projet, des critères d’allocation des ressources ont été élaborés pour accompagner la mise en œuvre de la politique de santé au niveau local. 12 ateliers ont été organisés Page 62 of 66 The World Bank ML- Governance and Budget Decentralization Technical Assistance Project ( P112821 ) entre 2013-2014 pour sensibiliser les communautés locales sur l’utilisation ressources en matière de santé. En outre, le projet a mené une enquête auprès des bénéficiaires afin de mieux suivre les opinions des citoyens sur la performance du secteur au niveau local, ce qui a permis d'harmoniser les plans de santé communautaires dans les localités ciblées. L’ensemble de ces actions ont contribué à l’amélioration de la prise de décision au niveau local dans le secteur de la santé. 2.3. Renforcement du contrôle externe et de la participation communautaire Un seul indicateur principal a été pleinement réalisé à savoir les rapports produits par les Comités de Surveillance et un autre partiellement réalisé à savoir les comptes jugés par la Section des Comptes de la Cour Suprême. Quant aux indicateurs intermédiaires, trois d’entre eux ont été pleinement réalisés et un n’a pas été réalisé à savoir la restitution publique des comptes de gestion au niveau local. Cette composante comprenait deux sous composantes qui son sont (i) contrôle externe et (ii) participation des communautés. Le PAT a renforcé les capacités techniques et opérationnelle de la Section des Comptes de la Cour Suprême. En effet, un système d'archivage a été mis en place dans la SC/CS et un logiciel a été développé pour gérer les comptes des collectivités locales et autres entités publiques. De plus, un code d'éthique a été élaboré en 2014 et 20 nouveaux auditeurs ont été formés. Ces actions de renforcement de capacité ont permis à la SC/CS d’augmenter le nombre de comptes jugés sans toutefois atteindre l’objectif fixé pour l’année 2017 conduisant une réalisation partielle de l’indicateur défini à cet effet. S’agissant de la participation citoyenne : Le projet a grandement contribué à améliorer la participation des citoyens et la transparence budgétaire au niveau décentralisé. Des renforcements de capacités à travers des formations et du matériel fournis aux autorités locales et aux organisations de la société civile ont permis la collecte et l’analyse des données budgétaires pour informer les comités de surveillance. Au total, six rapports de contrôle des citoyens ont été produits et des budgets citoyens ont été élaborés et diffusés dans 69 municipalités et une campagne d'information et de sensibilisation des citoyens aux questions de GFP a été lancée avec l'appui du projet. Ces actions ont considérablement amélioré la capacité des organisations de la société civile à veiller sur la mise en œuvre de la politique du développement. 3. Notations La note globale est une combinaison de trois notes: (i) Pertinence des objectifs de développement soutenus par le projet. Les évaluateurs ont attribué la note « élevé » compte tenu de l’alignement du projet aux objectifs de développement du Mali (ii) Efficacité globale du projet a été noté « substantielle » pour traduire le fait que le projet a réalisé la quasi-totalité de ces objectifs. Page 63 of 66 The World Bank ML- Governance and Budget Decentralization Technical Assistance Project ( P112821 ) (iii) Efficience a été noté substantielle pour traduire les gains réalisés au niveau des marchés publics et au niveau de la mobilisation des ressources locales (iv) Le projet est globalement noté « satisfaisant » en combinant les trois précédentes notes. 4. Résumé des leçons apprises La conception et la mise en œuvre du PAT dans le contexte du Mali a permis de tirer les leçons suivantes: La première leçon est l’importance de la mise en place d’une unité de gestion de projet ayant une connaissance des procédures de la Banque mondiale. En effet, le CARFIP, avec ses tâches quotidiennes et dans le cadre de la juxtaposition des procédures de la Banque mondiale avec celles du gouvernement n’a pas réussi a accordé au projet toute l’attention dont il avait besoin. La deuxième leçon apprise est que dans un contexte de fragilité et de violence, les projets de décentralisation devraient se concentrer sur le renforcement des capacités et améliorer le dialogue entre le gouvernement et les citoyens par l'adoption d'outils pratiques adéquats. Le projet n'a pas couvert toutes les localités, mais son expérience peut être utilisée pour le reste du pays afin de faciliter davantage la décentralisation. La troisième leçon apprise est que le partage des connaissances est particulièrement important dans un environnement de faible capacité. En effet, la mise en œuvre réussie du projet est due en partie à l’assistance technique. L’absence du spécialiste de passation des marchés a affecté négativement la mise en œuvre du projet à son début, mais en recevant une assistance technique, le projet à lever ce goulot d’étranglement et mettre en œuvre ses activités. La quatrième leçon apprise est que le renforcement des capacités ne peut pas être une intervention ponctuelle, mais exige plutôt un soutien continu pour tenir compte de la mobilité du personnel. Le projet a formé le personnel du Ministère de l’Economie et des Finances afin d'améliorer les capacités de collecte des recettes, de préparation et d'exécution du budget, de passation des marchés, d'audit interne et de comptabilité. Cependant, la stabilité du personnel est importante pour atteindre l'objectif de développement du projet, et cette stabilité du personnel devrait être discutée et trouver des mesures de solutions potentielles lors des négociations du projet. Page 64 of 66