Public Disclosure Copy The World Bank Implementation Status & Results Report DRC: Strengthening PFM and Accountability (P145747) DRC: Strengthening PFM and Accountability (P145747) AFRICA | Congo, Democratic Republic of | Governance Global Practice | IBRD/IDA | Investment Project Financing | FY 2014 | Seq No: 7 | ARCHIVED on 02-Jan-2018 | ISR31046 | Implementing Agencies: Ministry of Finance, COREF, COREF Key Dates Key Project Dates Bank Approval Date:30-Jan-2014 Effectiveness Date:23-May-2014 Planned Mid Term Review Date:29-Mar-2018 Actual Mid-Term Review Date:-- Original Closing Date:31-Dec-2018 Revised Closing Date:31-Dec-2021 Project Development Objectives Project Development Objective (from Project Appraisal Document) The proposed project development objective is to enhance the credibility, transparency, and accountability in the management and use of central government and selected sub-national governments’ finances. Considering the complementarity with other donor and Bank-funded programs, the proposed MDTF operation will focus on downstream PFM reforms of the central government and public financial management in selected provinces ( Equator, Kasai Oriental and North Kivu). Has the Project Development Objective been changed since Board Approval of the Project Objective? Yes Board Approved Revised Project Development Objective (If project is formally restructured)PHRPDODEL The project development objective (PDO) is to improve domestic revenue mobilization, public expenditure management, and accountability, at central level and in selected provinces. Components Name Component 1- Supporting Domestic Revenue Mobilization and Expenditures Management:(Cost $23.00 M) Component 2 - Strengthening Budget Oversight and Improving Transparency:(Cost $7.40 M) Component 3 - Establishing PFM Systems at the Provincial Level:(Cost $33.20 M) Component 4- Project Management:(Cost $8.50 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO  Satisfactory  Satisfactory 1/2/2018 Page 1 of 12 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report DRC: Strengthening PFM and Accountability (P145747) Overall Implementation Progress (IP)  Satisfactory  Satisfactory Overall Risk Rating  Substantial  Substantial Implementation Status and Key Decisions The Public Financial Management and Accountability Project (PFMAP) has been designed using a basket-funding mechanism by establishing a Multi- Donor Trust Fund (MDTF) for PFM reform, administered by the World Bank while the project is executed by the DRC Government. The initial allocation for the proposed operation is US$26 million (US$5 million from the World Bank and US$21 million from DFID). The Belgium Cooperation has joined the MDTF with a contribution of EUR 4 million.The Board members of EU have recently approved in principle to grant an amount of EUR 15 million to the MDTF. However, given the current political context, the EU is no longer expected to join the MDTF shortly. On February 14, 2017, the World Bank Board approved an additional financing (AF) of US$50 million to support the following main areas: (a) enhancing domestic revenue mobilization (DRM) capacity; (b) strengthening the budget planning and forecasting processes; (c) improving public accounting and reporting; and (d) scaling up IDA support in provinces with the new “decoupage”. Thus, the overall project has been restructured to (a) revise several components and reflect newly introduced activities; (b) revise the Results Framework to reflect the AF and current progress on the ground; and (c) extend the closing date by three years, from December 31, 2018 to December 31, 2021. After almost four years of implementation; positive progress has been made; providing solid foundation for future project activities at both central and provincial level. 1. Domestic Revenue Mobilization (DRM). After the TADAT assessment, the PFMAP has supported the government to organize the first National Tax System Forum in September 2017. It allows the Government to issue a Road Map for the next generation of tax Reform in DRC. The event was attend by all stakeholders including the Private sector, Tax Administrations ( DGI, DGRAD and DGDA); Provincial Governors, CSOs,... The PFMAP will continue its support to ensure effective implementation of the Tax Forum recommendations. 2. Implementation of the reform to devolve spending authority to line ministries through the establishment of the ‘Directions Administratives et Financieres’ (DAFs) moved forward over the review period, despite the odds. However the pace of reform has been slow and the operationalisation of the DAFs has been mired by human resource management issues, reduced commitment at the highest levels, and push back from those in the system that are set to lose out. Nonetheless, against the odds, 10 of the initial 12 are now installed. Further achievements include: the budgetising of all the DAFs in the 2017 budget; the training of DAF staff on risk based auditing and programme budgeting; the inclusion of the DAFs in the 2018 budget preparation conferences; the development of a plan and timeline for the full devolution of powers to the DAFs; and an accompanying guide on the administrative procedures for the operationalisation DAFs. The next steps will be to continue the dialogue with the Ministry of Finance to sign-off on a timeline to fully empower the DAFs. 3. The Internal Audit Department (IGF) continues to improve the quality of its oversight function through conducting its first risk mapping in 25 departments across PFMA’s 5 pilot ministries (including health, education and rural development) and 5 risk-based audits. The risk based mapping and audits and accompanying action plans are the culmination of a range of training and coaching provided to the IGF in this area. The move to using risk based audits is part of PFMA’s support to: improving the range and quality of IGF’s services (they are now able to conduct performance, risk, financial and procurement based audits); increasing the focus on the use and impact of their recommendations (through ensuring that any recommendations are linked to clear action plans); and establishing stronger working ties with the ‘technical inspection units’ in sector ministries (who were also included in the risk-based audit training). The IGF continue to use the TEAM MATE and IDEA software to improve how they conduct their work. However, despite improvements, the geographic scope, number and impact of the IGF’s audits remain areas for further work and will be so long as the IGF continue to have any new recruitment blocked, their funds truncated and their audit recommendations not implemented. 4. The implementation of the establishment of a Department of Treasury and Public Accounting (DGTCP) has slowed over the review period. After four years of back and forth, an organogram of the Ministry of Finance was signed off in late 2017 by both the Ministry of Finance and the Ministry of Civil Service. The organogram includes the department of the DGTCP. Whilst imperfect, as the tax agencies are not included and the ‘reddition des comptes’ department is put as a separate department under the DGTCP (contrary to expert recommendations), it is progress and makes official the existence of the DGTCP and its reporting chain. However work remains to be done including on mapping all the public provincial accounting posts and validating the various guides and procedures that set out the new procedures under the DGTCP, as well as completing the computerisation of the full revenue and spending chain. For this to be effective, there needs to be strong political will. 5. With PFMA’s support, DRC’s official body of accountants (ONEC) has been able to connect with the International Federation of Accountants (IFAC) – this is an important step in bringing up the overall standard of accounting and oversight in DRC. In 2016 PFMA trained 169 accountants, of which 66 became internationally accredited, bringing the total number of internationally accredited in the DRC to 260. This number had reached 310 by December 2016 allowing DRC to get across the threshold to be admitted to IFAC as ‘observers’. ONEC has since increased its 1/2/2018 Page 2 of 12 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report DRC: Strengthening PFM and Accountability (P145747) members to 323 accountants, although they face a range of legal and administrative obstacles to be able to play a larger role in oversighting public finances in the DRC. The next steps will consist to establish the ONEC branches at both central and provincial levels. 6. The Cour des Comptes’ (DRC’s supreme audit institution) publicising of an alleged fraud, in its annual budget review (Reddition des Comptes), brought widespread popular attention and a request to establish a commission of enquiry, reflecting the potential power of targeted audits. However, this is unfortunately an exception rather than the norm, as their recommendations are frequently ignored; with limited political will, this will continue. Tellingly, despite multiple promises at the beginning of the review period the law on the Cour des Comptes, which sets out and reinforces its powers, has not been adopted. However, the law does remain on the parliamentary calendar and PFMA is supporting parliamentary committees in their examination of the law. PFMA continues to work with the CdC on improving the scope and type of its audits to ensure that it remains effective at conducting its function. During the review period PFMA also supported the coaching of 51 new magistrates, an important step if the court is to be able to sustain itself in the long term. Unfortunately, the CdC is still waiting for them to be formally nominated to take up their positions. 7. ECOFIN is becoming increasingly more proactive and forthright in its oversight function. For example, during the ECOFIN’s review of the 2015 " Reedition des Comptes" the committee consulted the Central Bank to conciliate the numbers between what they had received from the Treasury and what they had received from the Department for the Reddition des Comptes. Secondly, building on their findings from the 2015 Reddition des Comptes the Senate ECOFIN requested to establish a commission of enquiry into 52 investment project financed outside of the budget – although due to financing and timing this committee never materialized. This followed training provided by PFMA to strengthen ECOFIN’s ability to understand and analyze macroeconomic forecasts and understand their impact on revenue forecasts. ECOFIN also consulted with civil society on the 2017 budget, who shared their budget analysis directly with ECOFIN for the first time. Some of the key recommendations included: indexing civil servant salaries against the actual exchange rate and increasing the budget allocation in 10 sectors, including education, health, agriculture and rural development. Alongside other voices pushing for this, these recommendations were incorporated into the final budget, but implementation continues to pose the biggest challenge. 8. Whilst civil society is included in the government’s budget preparation activities, more could be done to improve the substance of this engagement. The budget cycle was disrupted over 2017, with the budget only being signed off on 26 June 2017. Over the period under review, civil society was brought together to analyze the budget, publishing a report that was presented to ECOFIN (for the first time), and to participate in the 2018 budget preparations. However, while attempts were made this year to better prepare the civil society for these interactions, including holding a preparatory workshop, a detailed budget was not made available to civil society until a day before the event and at the orientation seminar sectorial groups still did not have some of the necessary detail to have a substantive conversation. 9. Across the provinces, particularly those new provinces, the challenges are vast. The spending chains are weak, with systematic interference; there are no automatized revenue chains; procurement processes are not respected; there are no ‘reddition des comptes’ (i.e. annual budget reviews) and there are problems with human resource management. For example, many do not receive salaries and have low capacity, having received little or no training for their posts. Provincial assemblies in new provinces are smaller, having been divided across up to 4 provinces. Tax agencies are lacking secure tax notes and failure to provide tax collectors with a salary leave many looking for resources elsewhere. 10. The ‘old’ provinces continue to strengthen basic budget management structures but a lot of work still lies ahead. This includes training their staff on effective and correct budget preparation, execution and oversight; producing quarterly and annual budget execution reports, strengthening their financial accounting capacity, reducing corruption and improving the professionalism of their tax agencies. Some progress has been made in these areas: there have been improvements in the integrity of the spending chain in Kinshasa, Kasai Oriental and North Kivu (i.e. reduced intervention by the governor) and in budget execution, with all 4 ‘old’ provinces reaching at least 50% execution rate of their budgets, part of this due to better domestic resource forecasting. For example, Kinshasa reduced its revenue forecast from 100 billion to 87 billion FC for 2017, to bring it in line with actual revenue mobilization capacity, which was 45 billion FC in 2015 and 51 billion in 2016. 11. The lack of integrity of the provincial spending chain combined with lack of availability of regular power supply reduces the urgency, and raises the challenge, of installing computerized systems across the provinces. Instead, a more tailored approach is needed. For example, North Kivu and Kinshasa are two of the most advanced provinces, from a public finances perspective, and so it is planned that in 2017 work on rolling out a computerized system should begin, but not in the newer provinces or those where the spending chain is regularly compromised. It is also important that we learn from the installation of computerized systems elsewhere in the country by the African Development Bank (AfDB) to ensure that our approach is sufficiently tailored to the country and provincial context. 12. The irregularity and partiality of retrocession remains one of the biggest challenges facing effective fiscal decentralization. The picture is different across different provinces, with some receiving a larger share than others, or with greater consistency. However, across the board provinces, and in turn ETDs, are not receiving the necessary, and mandated, funds from the central level severely hampering their ability to operate. The uncertainty around the 6 month delay in adopting the 2017 budget was passed down to the provincial and ETD level, with provinces and ETDs unable to finalize their budgets without central level input. Considering that retrocession transfers to ETDs make up 80% of their budget, this is a significant issue, particularly for our work on participatory budgeting. However, limited retrocession has meant a stronger political will at the provincial and ETD level to embrace reform and greater professionalization in order to improve their mobilization of tax revenues. Finally, it should be noted that this indicator lies 1/2/2018 Page 3 of 12 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report DRC: Strengthening PFM and Accountability (P145747) largely outside the control of the project and while a good indicator for the broader governance climate it is difficult to use to assess performance. 13. The roll out of participatory budgeting is on target, with projects already carried out under the 2017 budget and preparations beginning for 2018. Almost 8000 citizens have been involved across 4 provinces and 22 ETDs in choosing projects on behalf of millions in their communities. In Kinshasa, of the 16 ETDs that started participatory budgeting for the 2017 budget, 6 have begun work on their investment projects. Examples of projects chosen by communities, and which are underway, include: public toilets; sanitizing of quartiers in 4 communes, erosion prevention, and the construction of a public market. Community facilitators have worked to improve the representation of the population and societal groups in the various discussion forums, including women, young people and those living with handicaps. However, despite strong citizen and local government support, the delayed 2017 budget and a lack of resources, due to problems associated with retrocession and the devaluation of the currency, have created challenges for some ETDs to implement the projects that they agreed. 14. Participatory budgeting has played an important role in bringing communities closer to local government and to increase the transparency and accountability in this relationship. Communities have actively participated in the 6 monthly evaluation and oversight of their projects through local " Tribune d’ Expressions Populaire (TEP)" (organized in public markets, offices of the quartier and communes, and even football pitches) and all participating ETDs have published their budgets for the first time (in the town halls). There has also been an emphasis on tax collection and tax potential with meetings on ETDs’ ‘fiscal profile’ organized in all 16 selected ETDs in Kinshasa. Participatory budgeting is being formalized across focal provinces, with edicts being drafted to establish the process in law. 6. On project and Donors Coordination, a weekly meeting is organized jointly with the Task Team Leader to monitor the implementation of project activities and address any bottlenecks in a timely manner. Progress has also been excellent in terms of coordination and dialog with the Government. The “Cadre de concertation” is one of the most efficient framework for Donors-Government dialog at PFM sector level in DRC. The 6th Cadre de concertation was jointly chaired by the Minister of Budget and the Minister of Finance, and received very positive feedback on the relevancy of topics discussed and the level of attendance. The agreement on the Plan d ’Action Prioritaire (PAP) has been a positive milestone, which now allows focused, more transparent and informed discussion on progress. The next meeting is scheduled for the last quarter of 2017. 7. After three years of effective implementation of project activities, the overall disbursement rate of the project is estimated at 78 percent for the initial IDA financing and 100 percent for the Trust Fund effectively received. The latter disbursement rate is supposed to change with the additional contributions from Donors. The AF of US$50 million is not yet effective. The initial effectiveness date of June 3, 2017 has been extended to September 3, 2017, due to administrative bottlenecks on the counterpart side. The current closing date is scheduled for December 31, 2021. 8. With the governance project PRCG closed on February 28 2016, the PFMAP AF will continue to support PFM activities in provinces formerly covered by PRCG. Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance  --  High  High Macroeconomic  --  Substantial  Substantial Sector Strategies and Policies  --  Substantial  Substantial Technical Design of Project or Program  --  High  High Institutional Capacity for Implementation and Sustainability  --  Substantial  Substantial Fiduciary  --  Substantial  Substantial Environment and Social  --  Moderate  Low Stakeholders  --  Substantial  Substantial Other  --  --  -- Overall  --  Substantial  Substantial 1/2/2018 Page 4 of 12 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report DRC: Strengthening PFM and Accountability (P145747) Results Project Development Objective Indicators PHINDPDOTBL  Annual tax collection rate (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 1.00 3.00 3.00 8.00 Date 31-Oct-2012 01-Dec-2016 01-Dec-2016 31-Dec-2021 PHINDPDOTBL  Annual tax collection rate (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 1.00 -- 3.00 8.00 Date 31-Oct-2012 -- 01-Dec-2016 31-Dec-2021 Comments Final figures for tax collection amount 2017 are not yet available. But, notable progress has been made in the increase of tax collection in provinces. Kinshasa continued its trend of increased revenue mobilization, with support from the PFMAP, with 22.9% over the review period, as did North Kivu at 46.5% and Kasai Oriental at 39.9%. This is part of concerted efforts to identify provincial tax potential, develop a database of tax-payers and establish agreements between the various revenue authorities. PHINDPDOTBL  Budget execution rate, excluding donor-funded projects (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 50.00 68.00 68.00 70.00 Date 31-Oct-2012 01-Dec-2016 01-Dec-2016 31-Dec-2021 PHINDPDOTBL  Budget execution rate, excluding donor-funded projects (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target 1/2/2018 Page 5 of 12 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report DRC: Strengthening PFM and Accountability (P145747) Value 50.00 -- 68.00 70.00 Date 31-Oct-2012 -- 01-Dec-2016 31-Dec-2021 Comments Eleven DAF have been established out of five expected. The support to build budgetary capacity within line ministries through the implementation of Directorate of Administration and Finance (DAF) will contribute to achieve this objective. The next step, after the establishment of the DAF in each line ministry, is to devote budget commitment authority to each line ministry. This reform will improve the budget execution rate across line ministries and contribute to the overall country budget execution rate. PHINDPDOTBL  Public expenditures audited by the Inspectorate General of Finance (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 20.00 Date 31-Oct-2012 01-Dec-2016 01-Dec-2016 31-Dec-2021 PHINDPDOTBL  Public expenditures audited by the Inspectorate General of Finance (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 0.00 20.00 Date 31-Oct-2012 -- 01-Dec-2016 31-Dec-2021 Comments The Internal Audit Department (IGF) continues to improve the quality of its oversight function through conducting its first risk mapping in 25 departments across PFMA’s 5 pilot ministries (including health, education and rural development) and 5 risk-based audits. Overall Comments Intermediate Results Indicators 1/2/2018 Page 6 of 12 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report DRC: Strengthening PFM and Accountability (P145747) PHINDIRITBL  Accuracy of domestic revenue projection (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 50.00 73.00 73.00 87.00 Date 31-Oct-2012 01-Dec-2016 01-Dec-2016 31-Dec-2021 PHINDIRITBL  Public procurement contracts awarded outside the public procurement system (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 59.00 -- 59.00 25.00 Date 31-Oct-2012 -- 01-Dec-2016 31-Dec-2021 Comments The PFMAP started its support to the central procurement regulation and control authorities (ARMP and DGCMP). The procurement Audit 2012 -2013 report was disseminated thanks to the PFMAP. it was an opportunity to highlight keys strengths and weaknesses; and underlining recommendations to improve the country procurement system. A long term technical assistance is also planned to strengthen the capacity of national procurement institutions. PHINDIRITBL  Female staff trained on fiscal and custom administration (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 20.00 Date 31-Oct-2012 01-Dec-2016 01-Dec-2016 31-Dec-2021 1/2/2018 Page 7 of 12 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report DRC: Strengthening PFM and Accountability (P145747) PHINDIRITBL  Delay from completion of the annual audits by Cour des Comptes to submitting the audited financial statements to the parliament (Months, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 7.50 -- 3.00 2.00 Date 31-Oct-2012 -- 01-Dec-2016 31-Dec-2021 Comments The audit report of the CDC was sent to the parliament in October 2017, which is a significant progress in the reduction of lead time to audit government financial statements, from seven and a half months in 2012 (Public Expenditure and Financial Accountability/PEFA) to two month in 2017. The PFMAP is supporting the: (i) CDC, to benefit from technical assistance provided by the Regional Supreme Audit Organization (CREFIAF) and (ii) economic and financial commissions (ECOFIN) of the National Assembly and Senate, to recruit technical assistant firm to support their analysis of the budget law and budget execution, as well as audit reports. These supports are starting to have impact since the CDC report on the annual financial statement for 2015, flagged among other issues, the misappropriation of funds in education sector. PHINDIRITBL  Public procurement contracts awarded outside the public procurement system (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 59.00 59.00 59.00 25.00 Date 31-Oct-2012 01-Dec-2016 01-Dec-2016 31-Dec-2021 PHINDIRITBL  Accuracy of domestic revenue projection (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 50.00 -- 73.00 87.00 Date 31-Oct-2012 -- 01-Dec-2016 31-Dec-2021 Comments The AF was effective on September 2017. Comparison will be made in mid year 2018 to measure progress resulting from the Project support to Tax administration reform in DRC. PFMAP will support the implementation of the Tax reform road map issued by the 2017 National tax Forum. 1/2/2018 Page 8 of 12 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report DRC: Strengthening PFM and Accountability (P145747) PHINDIRITBL  Delay from completion of the annual audits by Cour des Comptes to submitting the audited financial statements to the parliament (Months, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 7.50 3.00 3.00 2.00 Date 31-Oct-2012 01-Dec-2016 01-Dec-2016 31-Dec-2021 PHINDIRITBL  Female staff trained on fiscal and custom administration (Amount(USD), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 0.00 20.00 Date 31-Oct-2012 -- 01-Dec-2016 31-Dec-2021 Comments The AF was effective on September 2017. Comparison will be made in mid year 2018 to measure progress resulting from the Project support to Tax administration reform in DRC. PFMAP will support the implementation of the Tax reform road map issued by the 2017 National tax Forum; and will take care of gender aspects. PHINDIRITBL  Territorial Decentralized Entities (TDEs) with participatory budgeting under implementation (Citizen engagement indicator) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 1.00 1.00 50.00 Date 31-Oct-2012 01-Dec-2016 01-Dec-2016 31-Dec-2021 PHINDIRITBL  Territorial Decentralized Entities (TDEs) with participatory budgeting under implementation (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 22.00 50.00 Date 31-Oct-2012 -- 22-Dec-2017 31-Dec-2021 Comments The roll out of participatory budgeting is on target, with projects already carried out under the 2017 budget and preparations 1/2/2018 Page 9 of 12 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report DRC: Strengthening PFM and Accountability (P145747) beginning for 2018. Almost 8000 citizens have been involved across 4 provinces and 22 ETDs in choosing projects on behalf of millions in their communities. In Kinshasa, of the 16 ETDs that started participatory budgeting for the 2017 budget, 6 have begun work on their investment projects. Examples of projects chosen by communities, and which are underway, include: public toilets; sanitizing of quartiers in 4 communes, erosion prevention, and the construction of a public market. Community facilitators have worked to improve the representation of the population and societal groups in the various discussion forums, including women, young people and those living with handicaps. However, despite strong citizen and local government support, the delayed 2017 budget and a lack of resources, due to problems associated with retrocession and the devaluation of the currency, have created challenges for some ETDs to implement the projects that they agreed. PHINDIRITBL  Pro-poor expenditure execution rate in provinces (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 12.00 Date 31-Oct-2012 01-Dec-2016 01-Dec-2016 31-Dec-2021 PHINDIRITBL  Pro-poor expenditure execution rate in provinces (Amount(USD), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 3.00 12.00 Date 31-Oct-2012 -- 22-Dec-2017 31-Dec-2021 Comments The level of execution of health and education spend remains very low. In Kinshasa the spend allocated to health and education as a percentage of the overall budget equated to 3.2%. Execution of this small allocation was also weak at 11.5% (education) and 5.8% (health), against a project milestone of 75%. This should be put in the context of overall weak budget execution at between 37% and 45% in the old provinces. This low level of execution is partly due to an incomplete decentralisation, with promised retrocession not provided and initial provincial tax estimates over ambitious. It’s important that project partners place sufficient emphasis with provincial governments on the issue of ‘taxes for development’ i.e. productively allocating increasing tax revenue for maximum development impact in pro-poor sectors such as health, education and agriculture 1/2/2018 Page 10 of 12 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report DRC: Strengthening PFM and Accountability (P145747) PHINDIRITBL  Internally generated revenue by provinces (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 1.00 3.00 3.00 10.00 Date 31-Oct-2012 01-Dec-2016 01-Dec-2016 31-Dec-2021 Overall Comments The AF was effective on September 2017. Comparison will be made in mid year 2018 to measure progress resulting from the effective support driven by the AF. However, support provided by the initial Project has shown promising progress toward reaching the project development objective. Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed Disbursed P145747 IDA-D1650 Effective USD 50.00 50.00 0.00 6.26 45.93 13% P145747 IDA-H9070 Effective USD 5.00 5.00 0.00 4.16 0.52 83% P145747 TF-17290 Effective USD 17.00 17.00 0.00 16.90 0.10 99% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P145747 IDA-D1650 Effective 14-Feb-2017 03-Mar-2017 14-Aug-2017 31-Dec-2021 31-Dec-2021 P145747 IDA-H9070 Effective 30-Jan-2014 20-Feb-2014 23-May-2014 31-Dec-2018 31-Dec-2018 P145747 TF-17290 Effective 28-May-2014 28-May-2014 28-May-2014 31-Dec-2016 31-Dec-2018 Cumulative Disbursements 1/2/2018 Page 11 of 12 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report DRC: Strengthening PFM and Accountability (P145747) Restructuring History There has been no restructuring to date. Related Project(s) P159160-Public Financial Management and Accountability Project Additional Financing 1/2/2018 Page 12 of 12 Public Disclosure Copy