The World Bank Implementation Status & Results Report Institutional Capacity Building Project (P168180) Institutional Capacity Building Project (P168180) EUROPE AND CENTRAL ASIA | Uzbekistan | Finance, Competitiveness and Innovation Global Practice | IBRD/IDA | Investment Project Financing | FY 2019 | Seq No: 3 | ARCHIVED on 26-Nov-2020 | ISR43885 | Implementing Agencies: Ministry of Finance, Republic of Uzbekistan Key Dates Key Project Dates Bank Approval Date: 24-May-2019 Effectiveness Date: 16-Dec-2019 Planned Mid Term Review Date: -- Actual Mid-Term Review Date: Original Closing Date: 30-Nov-2024 Revised Closing Date: 30-Nov-2024 pdoTable Project Development Objectives Project Development Objective (from Project Appraisal Document) The Project Development Objective is to strengthen public financial management and enable the market operation of the corporate sector. Has the Project Development Objective been changed since Board Approval of the Project Objective? No Components Table Name Improving Public Financial Management:(Cost $10000000.00 M) Improving Conditions for Market Operation of the Corporate Sector:(Cost $16000000.00 M) Improving Support Mechanisms for Reforms:(Cost $5000000.00 M) Project Management:(Cost $2000000.00 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO Satisfactory Satisfactory Overall Implementation Progress (IP) Moderately Satisfactory Moderately Satisfactory Overall Risk Rating Substantial Substantial Implementation Status and Key Decisions The following key decisions and updates are reported: 1. Legal covenants. The two pending legal covenants were fulfilled: (a) Establishment of a Project Implementation Advisory Board (PIAB); and (b) Establishment of an automated accounting information system. The ToR for PIAB was approved and it was established under MOF, as per MoF notification sent to WB on June 24, 2020. The 1C accounting software was installed at the PIU on May 11, 2020 and is being utilized. 2. Overall progress. On October 30, 2020, the Cabinet of Ministers adopted a Resolution “About measures to implement the Institutional Capacity Building Project funded by the World Bank”, thereby issuing Government decision on the project implementation. Components are progressing, but some slower than scheduled due to the COVID-19 pandemic restrictions. Component 1 is well advanced. On component 2, capacity building activities are proceeding in online format; but the GoU has not yet launched large-scale privatization, given the ongoing pandemic crisis and related absence of interested investors. Discussions on the PPP transactions are progressing; procurement for technical assistance for the PPPDA is ongoing. On component 3, the TA to Anti-monopoly Committee is progressing well. However, the activity with George Washington University 11/26/2020 Page 1 of 9 The World Bank Implementation Status & Results Report Institutional Capacity Building Project (P168180) (GWU)’s support to the Economic Council is unable to start due to unfulfillment of previous direct contract between GWU and Ministry of Finance (MoF). Disbursements are lower than anticipated but the selection of consultants and equipment, especially for Component 1 (Public Financial Management), are underway. Major disbursements are expected by early 2021 at the latest – i.e. 10-12 months after project effectiveness, corresponding roughly to the natural procurement cycle of the main Project activities. 3. Privatization. In view of the recent adoption of the Resolution “On measures to accelerate the reform of enterprises with state participation and privatization of state assets”, and the tight timelines it foresees, the Bank looks forward to agreeing with the Government on the selection of the pilot/s for privatization. Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance Substantial Moderate Moderate Macroeconomic Substantial Substantial Substantial Sector Strategies and Policies Substantial Substantial Substantial Technical Design of Project or Program Substantial Moderate Moderate Institutional Capacity for Implementation and High Substantial Substantial Sustainability Fiduciary Substantial Moderate Moderate Environment and Social Substantial Low Low Stakeholders High Substantial Substantial Other Substantial Moderate Moderate Overall Substantial Substantial Substantial Results PDO Indicators by Objectives / Outcomes Improved public financial management IN00905672 ►Budgeting processes, public internal control and audit, and public sector accounting standards reflect international good practices (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target PEFA indicators related to budget improved, internal Reforms under reforms under reforms under control and audit Value consideration consideration consideration follows international good practices, accounting follows IPSAS 11/26/2020 Page 2 of 9 The World Bank Implementation Status & Results Report Institutional Capacity Building Project (P168180) Date 15-Mar-2019 30-Sep-2019 15-Oct-2020 31-Dec-2024 Comments: Measures evolution of improvements in the adoption of international good practices/standards Market Operation of the Corporate Sector IN00905640 ►Corporate governance of SOEs reflects OECD Corporate Governance Standards (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Draft Presidential Decree Draft Presidential SOE aggregate report Newly created agency approving application of Decree approving for Top [30] produced Value with low capacity (ASAM) OECD principle application of OECD and published by SOE guidelines principle guidelines ownership agency Date 15-Mar-2019 30-Apr-2020 15-Oct-2020 31-Dec-2024 This measures the gradual adoption by Government and SOEs of good corporate governance following Comments: applicable OECD guidelines. IN00905671 ►Number of SOEs privatized (more than 50% of shares divested) and number of infrastructure PPPs completed (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 6.00 Date 15-Mar-2019 30-Sep-2019 15-Oct-2020 31-Dec-2024 Measures the number of SOEs privatized and PPPs developed under the project (e.g., feasibility study Comments: funded under the PPF). At minimum, two out of six in the end target number must be privatized. Intermediate Results Indicators by Components Improving Public Financial Management IN00905673 ►Improved public investment management (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Multiyear investment planning introduced in Reforms under Reforms under Reforms under 50% of ministries and Value consideration consideration consideration a sustainable training program and capacity established. Date 15-Mar-2019 01-May-2020 15-Oct-2020 31-Dec-2024 Comments: Measures evolution of reforms in PIM IN00905676 ►Staff trained on all PFM areas (of which female) (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target 11/26/2020 Page 3 of 9 The World Bank Implementation Status & Results Report Institutional Capacity Building Project (P168180) 400 (of which 100% of potential female Value 0.00 0.00 0.00 beneficiaries are included) Date 01-Sep-2018 01-May-2020 15-Oct-2020 31-Dec-2024 Comments: Refers to number of staff of MoF and other relevant agencies trained on PFM international best practices IN00905680 ►Improved internal audit (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Gradual implementation of the new IA methodology and new IA Reforms under Reforms under Reforms under Value management software consideration consideration consideration in 30% of line ministries. 20 trainers trained and training program developed Date 15-Mar-2019 01-May-2020 15-Oct-2020 31-Dec-2024 Comments: Measures evolution of adoption of internal audit in line with international good practices IN00905683 ►Gradual enhancement of budget process (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Marked improvements 2018 PEFA Scores are D 2018 PEFA Scores are D 2018 PEFA Scores are in PEFA Assessments for PI 8.1, 8.2, and 8.3; for PI 8.1, 8.2, and 8.3; D for PI 8.1, 8.2, and Value - score of C for PI 8.1, PI 16.2 and 16.3; and PI PI 16.2 and 16.3; and PI 8.3; PI 16.2 and 16.3; 8.2 and 8.4; PI 16.2 17.2 17.2 and PI 17.2 and 16.3 and PI 17.2 Date 15-Mar-2019 01-May-2020 15-Oct-2020 31-Dec-2024 Measures evolution of improvements in budget processes. Specifically on PEFA Indicators related to performance plans for service delivery (PI 8.1), performance achieved for service delivery (PI 8.2), Comments: resources evaluation for services delivery (PI 8.4), medium-term expenditure ceilings (PI 16.2), alignment of strategic plans and medium term budgets (PI 16.3), and guidance on budget preparation (17.2). IN00905685 ►New public internal control framework implemented following international good practices (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Gradual roll-out of new PIC framework with 10% at the central Reforms under Reforms under Reforms under level of government Value consideration consideration consideration implementing. 50 trainers trained and training program developed. Date 15-Mar-2019 01-May-2020 15-Oct-2020 31-Dec-2024 Evolution of the public internal control framework towards international good practices (that is adoption of Comments: risk-based approaches, practices endorsed by PEMPAL, and other bodies including the Insitute of Internal Auditors ) 11/26/2020 Page 4 of 9 The World Bank Implementation Status & Results Report Institutional Capacity Building Project (P168180) IN00905687 ►New public sector accounting and financial reporting standards implemented following international good practices (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Piloting completed. Applicable accounting and financial reporting standards and software updated Reforms under Reforms under Reforms under based on lessons from Value consideration consideration consideration pilot. Certification system for new standards initiated. 50 trainers trained and training program developed. Date 15-Mar-2019 01-May-2020 15-Oct-2020 31-Dec-2024 Evolution of public sector accounting towards international good practices (that is the adoption of IPSAS Comments: based standards). Improving Conditions for Market Operation of the Corporate Sector IN00905675 ►Strategic mapping of existing SOEs (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 2,800.00 2,800.00 3,000.00 Date 15-Mar-2019 30-Apr-2020 15-Oct-2020 31-Dec-2024 Comments: Refers to the number of entities identified and categorized by ASAM. IN00905678 ►3 Core legislative acts reviewed and updated (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Outdated laws on Outdated laws on Outdated laws on accounting, auditing Value accounting, auditing and accounting, auditing and Updated 3 core laws and corporate corporate governance corporate governance governance Date 15-Mar-2019 01-May-2020 15-Oct-2020 31-Dec-2024 Refers to the legislation update process with respect to laws on accounting, auditing, and corporate Comments: governance code. IN00905679 ►Percentage of SOEs using IFRS for financial reporting and publicly disclosing the reports (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 80.00 Date 15-Mar-2019 01-May-2020 15-Oct-2020 31-Dec-2024 Comments: Refers to the number of SOEs publishing their IFRS statements 11/26/2020 Page 5 of 9 The World Bank Implementation Status & Results Report Institutional Capacity Building Project (P168180) IN00905682 ►Largest SOEs follow high standards of transparency and are subject to the high quality accounting, disclosure, compliance and auditing standards, as per Chapter VI of the OECD Guidelines (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 30.00 Date 15-Mar-2019 01-May-2020 15-Oct-2020 31-Dec-2024 Refers to the number of SOEs publishing their financial statements. Comments: IN00905684 ►Boards are formed at largest 30 SOEs and given an authority and competencies for strategic guidance and monitoring of SOE management (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 30.00 Date 15-Mar-2019 01-May-2020 15-Oct-2020 31-Dec-2024 Comments: Refers to the number of the SOEs with functioning supervisory boards IN00905686 ►Number of SOE restructuring plans adopted (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 6.00 Date 15-Mar-2019 01-May-2020 15-Oct-2020 31-Dec-2024 Comments: Refers to the number of SOE restructuring plans adopted with support under the project IN00905688 ►Number of SOEs privatization public calls announced (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 10.00 Date 15-Mar-2019 01-May-2020 15-Oct-2020 31-Dec-2024 Refers to SOEs prepared for privatization under the project and with public calls announced Comments: IN00905689 ►Number of bids received per privatization transaction (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 2.00 Date 15-Mar-2019 01-May-2020 15-Oct-2020 31-Dec-2024 Refers to the number of bids received per privatization transaction supported under the project.On track to Comments: meet end target by project completion or sooner. IN00905690 11/26/2020 Page 6 of 9 The World Bank Implementation Status & Results Report Institutional Capacity Building Project (P168180) ►New laws/regulations on PPP enacted and implemented (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Reform options under New laws on PPP Value PPP law passed PPP law passed discussion under implementation Date 15-Mar-2019 30-Apr-2020 30-Apr-2020 31-Dec-2024 Comments: This measures the gradual implementation of new laws on PPP. IN00905691 ►Staff trained on corporate governance, privatization and PPP development (of which female) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 40.00 Date 15-Mar-2019 01-May-2020 15-Oct-2020 31-Dec-2024 Refers to number of staff trained on corporate governance, privatization and PPP development Comments: disaggregated by gender. On track to meet half of end target by FY21 Q2. IN00905692 ►Number of PPPs developed for the market (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 5.00 Date 01-Sep-2018 01-May-2020 15-Oct-2020 31-Dec-2024 Refers to the number of PPPs developed for the market with support under project (i.e., under the Comments: PPF). On track to meet end target by project completion or sooner. IN00905693 ►Number of bids received per PPP transaction (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 3.00 Date 15-Mar-2019 01-May-2020 15-Oct-2020 31-Dec-2024 Comments: Refers to the number of bids received per PPP transaction IN00905694 ►3 monitoring tools adopted for SOE oversight and governance (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target 3 tools adopted (SOE Weak monitoring of performance Weak monitoring of SOE Weak monitoring of SOE SOE fin performance monitoring framework, fin performance and fin performance and Value and corporate KPIs in line with good corporate governance corporate governance governance practices, and SOE arrangements arrangements arrangements performance monitoring portal) Date 15-Mar-2019 01-May-2020 15-Oct-2020 31-Dec-2024 11/26/2020 Page 7 of 9 The World Bank Implementation Status & Results Report Institutional Capacity Building Project (P168180) Comments: Monitoring tools for SOE oversight and governance in line with OECD principles Improving Support Mechanisms for Reforms IN00905677 ►No. of new laws and regulations reviewed by the Economic Council (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 5.00 Date 15-Mar-2019 01-May-2020 15-Oct-2020 31-Dec-2023 Refers to the number of laws reviewed by the Economic Council Comments: IN00905681 ►Number of Advisory Notes Prepared by technical experts to support the work of the Council (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 15.00 Date 15-Mar-2019 01-May-2020 15-Oct-2020 01-Jan-2021 Refers to the number of outputs/technical advisory notes of technical experts in supporting the Economic Comments: Council Project Management IN00905674 ►Percentage of citizens (participating in thematic groups and/or providing through the MOF website) who report that the engagement process was effective (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 90.00 Date 15-Mar-2019 03-Oct-2019 15-Oct-2020 31-Dec-2024 This indicator will measure the perception of citizen representatives in the thematic groups with respect to Comments: the effectiveness of the citizen engagement approach under the project. Performance-Based Conditions Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P168180 IDA-64310 Effective USD 33.00 33.00 0.00 0.50 32.50 1.5% 11/26/2020 Page 8 of 9 The World Bank Implementation Status & Results Report Institutional Capacity Building Project (P168180) Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P168180 IDA-64310 Effective 24-May-2019 19-Jul-2019 16-Dec-2019 30-Nov-2024 30-Nov-2024 Cumulative Disbursements PBC Disbursement Achievement Disbursed amount in Disbursement % PBC ID PBC Type Description Coc PBC Amount Status Coc for PBC Restructuring History There has been no restructuring to date. Related Project(s) There are no related projects. 11/26/2020 Page 9 of 9