The World Bank Report No: ISR2761 Implementation Status & Results Paraguay Public Disclosure Copy Paraguay Public Sector Reform (P113457) Project Name: Paraguay Public Sector Reform (P113457) Program Stage: Implementation Seq.No: 3 Status: ARCHIVED Last Modified Date: 15-Feb-2011 Country: Paraguay Approval FY: 2009 Product Line: IBRD/IDA Region: LATIN AMERICA AND CARIBBEAN Lending Instrument: Development Policy Lending Implementing Agency(ies): Ministry of Finance Key Dates Board Approval Date 05-May-2009 Original Closing Date 01-Mar-2011 Planned Mid Term Review Date Last Archived ISR Date 14-Dec-2009 Effectiveness Date 26-Aug-2009 Revised Closing Date 01-Mar-2011 Actual Mid Term Review Date Program Development Objectives Program Development Objective (from Program Document) The overall development objective of the proposed Programmatic Development Policy Loan (PDPL) is to contribute to the effectiveness and efficiency of the public sector while maintaining a stable macroeconoimc policy framework. This will be achieved by: (i) improving revenue collections and the equity of the tax system; (ii) improving the effectiveness of Central Administration internal and financial control; (iii) exerting effective SOE oversight to ensure sound and transparent financial management; (iv) improving the efficiency and equity of social capital expenditures; and (v) contributing to the professionalization of the civil service. These objectives are inter-related and address three main public sector outcomes: revenue stablity, accountability, and public sector efficiency. Has the Program Development Objective been changed since Board Approval of the Program? Yes No Overall Ratings Previous Rating Current Rating Progress towards achievement of PDO Satisfactory Satisfactory Overall Implementation Progress (IP) Satisfactory Satisfactory Public Disclosure Copy Implementation Status Overview The loan has been fully disbursed. A second programmatic loan for US$100 million is in preparation. Results Results Indicators Page 1 of 4 The World Bank Report No: ISR2761 Indicator Baseline Current End Target Public Disclosure Copy Indicator Name Value Value Value Increased Tax/GDP Ratio 11.90 12.50 12.80 Date Date Date 31-Mar-2009 15-Feb-2011 31-Dec-2012 Type Unit of Measure Comment Comment Comment Custom Indicator Percentage Average 2004-2009 Baseline Estimate 2012 Tax/GDP ratio goal Indicator Baseline Current End Target Indicator Name Value Value Value PEFA Rating D+ C C Date Date Date 31-Mar-2009 15-Feb-2011 31-Dec-2012 Type Unit of Measure Comment Comment Comment Custom Indicator Text 2008 Integrated Fiduciary 2011 PEFA Assessment rating for 2012 Integrated Fiduciary Assessment rating for PI-20 and PI-20 and PI-21 Assessment rating for PI-20 and PI-21: D+ PI-21: D+ Indicator Baseline Current End Target Indicator Name Value Value Value Transparency of SOEs No annual audited financial Annual publication of available Annual publication and audited statements in line with international audited financial statements for the financial statements for each SOE standards are available for State- fiscal exercise of 2008 and the from 2010. owned Enterprises. audit of 2009 financial statements Date Type Unit of Measure Date is being carried out. 31-Dec-2012 Custom Indicator Text 31-Mar-2009 Date Comment Comment 15-Feb-2011 Comment Public Disclosure Copy Indicator Baseline Current End Target Indicator Name Value Value Value Increased number of beneficiaries of the Tekopora Program 18000.00 100000.00 100000.00 Date Date Date 31-Mar-2009 15-Feb-2011 31-Dec-2012 Type Unit of Measure Comment Comment Comment Custom Indicator Number Preliminary data from June 2010 to be validated. Page 2 of 4 The World Bank Report No: ISR2761 Indicator Baseline Current End Target Public Disclosure Copy Indicator Name Value Value Value Public Infastructure Quality 25.00 25.00 50.00 Date Date Date 31-Mar-2009 15-Feb-2011 31-Dec-2012 Type Unit of Measure Comment Comment Comment Custom Indicator Percentage 2008 Baseline: 25% of total Updated data not available. 2012 Target: 50% of total network network receives periodic road receives periodic road maintenance. maintenance. Indicator Baseline Current End Target Indicator Name Value Value Value Personnel Recruitment Competitive criteria are not applied Aproximately 10,000 positions had In the Central Administration, the for the recruitment and promotion been advertised and filled following new criteria is applied to all new of personnel of the Central merit-based processes. A total of recruitment. Administration. 24.841 people had applied to those Date Type Unit of Measure Date vacancies. Custom Indicator Text Acoording to most recent available 31-Mar-2009 information (August 2010), a total Comment Comment of 38 public sector institutions The new recruitment criteria applied these more transparent consists of written job and meritocratic procedures. requirements, publication of the job Date announcement, and competitive 15-Feb-2011 and transparent selection criteria. Comment Data on Financial Performance (as of 08-Sep-2009) Public Disclosure Copy Financial Agreement(s) Key Dates Project Loan No. Status Approval Date Signing Date Effectiveness Date Closing Date P113457 IBRD-77000 Effective 05-May-2009 26-May-2009 26-Aug-2009 01-Mar-2011 Disbursements (in Millions) Project Loan No. Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P113457 IBRD-77000 Effective USD 100.00 100.00 0.00 100.00 0.00 100.00 Tranches Tranche 1 Page 3 of 4 The World Bank Report No: ISR2761 Description This is a Single Tranche Development Policy Loan (First Loan of PY Programmatic Development Policy Loan - 2009-2012). All prior actions have been completed and the loan was Public Disclosure Copy approved by the Board of the Bank on May 5, 2009. The loan was approved by Congress on 26 August 2009 and subsequently fully disbursed. Amount (USD) Expected Release Date Actual Release Date Status 1 14-Aug-2009 26-Aug-2009 Pending Released Tranche Condition Description Status If Not Met If Delayed Government has derogated the provision that allowed big landowners to use what they paid Met for VAT as fiscal credit against the agricultural income tax. Not Met Government has adopted decree to designate exporters and large businesses as Met withholding agents of the VAT. Not Met Government has (i) issued a decree to upgrade the Office of the Executive#s Internal Met Auditor (AGPE) to ministerial level and to give AGPE the authority to establish a standard Not Met internal control model (MECIP) and determine the criteria for the selection of internalauditors throughout the Central Administration; and (ii) adopted the MECIP as the internal control model to be used by all public entities. Government has issued decree to establish a Council for State Owned Enterprises (CEP) to Met ensure, inter alia, (i) public sector oversight of SOEs, and (ii) the definition of a Government Not Met policy for SOE reform. Ministries of Finance, Public Works and Industry and Trade, and the State Attorney#s Office Met have signed an inter-institutional agreement, defining the strategic areas to improve the Not Met corporate governance of SOEs. Ministry of Finance maintains in the 2009 Financial Plan the increased proportion of social Met spending (including for social safety net programs) over total Central Administration Not Met expenditures mandated in the 2009 budget (as compared to the 2008 budget), focusing on social programs that have been proven to be efficient and equitable. Key Decisions Regarding Implementation Public Disclosure Copy None. Restructuring History There has been no restructuring to date. Related Operations P113457-Paraguay Public Sector Reform, P117043-Second Public Sector Reform Development Policy Loan, P123244-Third Programmatic Public Sector Reform Development Policy Loan Page 4 of 4