The World Bank Implementation Status & Results Report Public Sector Performance Project (P150116) Public Sector Performance Project (P150116) AFRICA | Madagascar | Governance Global Practice | IBRD/IDA | Investment Project Financing | FY 2016 | Seq No: 7 | ARCHIVED on 08-Nov-2019 | ISR38634 | Implementing Agencies: PREA - Programme des réformes pour l'efficacité de l'administration, Ministry of Finance Key Dates Key Project Dates Bank Approval Date: 13-Jun-2016 Effectiveness Date: 27-Mar-2017 Planned Mid Term Review Date: 28-Sep-2018 Actual Mid-Term Review Date: 10-Dec-2018 Original Closing Date: 30-Jun-2020 Revised Closing Date: 30-Jun-2020 pdoTable Project Development Objectives Project Development Objective (from Project Appraisal Document) The Project Development Objective (PDO) is to improve revenue management, and local service delivery nationwide and in the education sector in Selected Regions. Has the Project Development Objective been changed since Board Approval of the Project Objective? No Components Table Name Improving Revenue Management:(Cost $16.80 M) Improving Service Delivery Capacity of Local Governments:(Cost $12.00 M) Improving Governance Mechanisms in the Education Sector:(Cost $7.80 M) Improving Controls and Performance Monitoring:(Cost $3.40 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO ►Moderately Satisfactory ►Moderately Satisfactory Overall Implementation Progress (IP) ►Satisfactory ►Moderately Unsatisfactory Overall Risk Rating ►High ►High Implementation Status and Key Decisions The Madagascar Public Sector Performance Project (PAPSP) was approved by the Bank's Board of Executive Directors on June 13, 2016 and became effective only in March 27, 2017. Project implementation has been severely affected by political changes and new configuration of key ministries. 11/8/2019 Page 1 of 7 The World Bank Implementation Status & Results Report Public Sector Performance Project (P150116) Twoof the five Project Development Objective (PDO) indicators have met their yearly target as of September 2019, and are on a trajectory to meet the end-target. According to the last verification report, covering 10 of the 13 intermediate indicators, 7 have been achieved. Data collection still needs to be done to inform the indicators on: i) transfer delays to municipalities, ii) implementation of FEFFI and iii) teacher payment. Key achievements include the rolling out of the integrated tax administration system and the implementation of performance contracts in new tax and customs offices. Moreover, the revenue collection performance remains on track at both the national and local level. Another notable achievement is also with the audit institution launching a series of critical audits that will inform the 2019 public report. The hiring of new staff to support Reform Program for Efficiency of Administration’s (PREA) operational capacity has been launched. However, the project disbursement rate is low at 44% as reimbursement EEPs related to 2019 DLRs did not happened yet. Project performance is suffering from delays in the execution of transfers to municipalities and delays in community teachers’ payment due the reintroduction of regulation rate. Discussions to restructure the project resumed in July 2019. Internalization of the results based financing (RBF) and DLI mechanisms within budget and treasury management still need to be strengthened, and reflected in the 2020 budget to ensure appropriate project implementation. Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance ►High ►High ►High Macroeconomic ►Substantial ►Substantial ►Substantial Sector Strategies and Policies ►Moderate ►Substantial ►High Technical Design of Project or Program ►High ►High ►High Institutional Capacity for Implementation and Sustainability ►Substantial ►Substantial ►Substantial Fiduciary ►Substantial ►Substantial ►Substantial Environment and Social ►Moderate ►Moderate ►Moderate Stakeholders ►High ►High ►High Other -- -- -- Overall ►High ►High ►High Results PDO Indicators by Objectives / Outcomes to improve revenue management IN00746418 ►Increased tax revenue collection (Domestic tax revenue/GDP ratio) (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target 11/8/2019 Page 2 of 7 The World Bank Implementation Status & Results Report Public Sector Performance Project (P150116) Value 10.00 11.50 10.00 11.80 Date 31-Mar-2016 31-Dec-2017 31-Aug-2019 30-Jun-2020 Domestic tax revenue/GDP ratio PDO value for 2019 is adjusted to 10% according to the computation of GDP while it was 11.3% according the previous Comments: computation. IN00746420 ►TADAT PO-8 indicators "Efficient Revenue Management" rated B (Text, Custom) (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value D C B B Date 31-Mar-2016 30-Nov-2018 31-Aug-2019 30-Jun-2020 Contribution to Government tax revenue forecasting process - Adequacy to the tax revenue accounting system - Adequacy Comments: of tax refund processing to improve local service delivery nationwide and in the education sector in Selected Regions. IN00746419 ►Availability of a teachers' information management system (Text, Custom) (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Yearly update of teachers' Value None None None database Date 31-Mar-2016 30-Nov-2018 31-Aug-2019 30-Jun-2020 Comments: Teacher census IN00746461 ►Communes with IGL higher than 6 (Percentage, Custom) (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 7.00 0.00 60.00 Date 31-Mar-2016 30-Nov-2018 31-Aug-2019 30-Jun-2020 Comments: New IGL baseline IN00746462 ►Direct Project Beneficiaries (number), of which female (percentage) (Number, Custom) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 3,277.00 Date 31-Mar-2016 30-Nov-2018 31-Aug-2019 30-Jun-2020 Intermediate Results Indicators by Components 11/8/2019 Page 3 of 7 The World Bank Implementation Status & Results Report Public Sector Performance Project (P150116) Improving Revenue Management IN00746463 ►Modernization of the Integrated Tax Administration System (ITAS) (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Procurement hardware for ITAS operational (in pilot None: Ongoing development the ITAS achieved and Value None tax centers covering 90% of system rolling in selected pilot of tax revenue) offices Date 31-Mar-2016 30-Nov-2018 31-Aug-2019 30-Jun-2020 Comments: Availability of the technical specifications for the ITAS IN00746467 ►Increased rate of confirmed suspicious customs transactions related to home use at Tomasina Custom Office (in case of physical examination). (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 5.00 25.00 24.62 15.00 Date 31-Mar-2016 30-Nov-2018 31-Aug-2019 30-Jun-2020 IN00746471 ►Number of revenue offices that have been subject to external evaluation of their performance contracts/program (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 27.00 5.00 6.00 Date 31-Mar-2016 30-Nov-2018 31-Aug-2019 30-Jun-2020 Comments: Revenue offices include customs offices and regional tax offixes IN00746473 ►Improved taxpayers registration (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 200,000.00 313,417.00 295,000.00 320,000.00 Date 31-Mar-2016 30-Nov-2018 31-Aug-2019 30-Jun-2020 IN00746474 ►Establishment of a single administrative identification number (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 2,500,000.00 Date 31-Mar-2016 30-Nov-2018 31-Aug-2019 30-Jun-2020 Availability of TORs for the technical specificities for the unique administrative tax identification number annexed to the Comments: ITAS technical specifications IN00746475 ►Improved formalization of small-scale miners (Number, Custom) 11/8/2019 Page 4 of 7 The World Bank Implementation Status & Results Report Public Sector Performance Project (P150116) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 3,000.00 0.00 15,000.00 Date 31-Mar-2016 30-Nov-2018 31-Aug-2019 30-Jun-2020 Comments: Availability of the technical specifications and launch of the tender for the ANOR database Improving Service Delivery Capacity of Local Governments IN00746464 ►Improved timeliness of service-delivery fiscal transfers to local governments (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Completion of the transfer No standard available to YES: transfer program Transfer not achieved program with a tolerance Value measure acceptable delays for available and equalization within 60 days from the threshold of 30 days on transfer execution fund implemented programmed dates average Date 31-Mar-2016 30-Nov-2018 31-Aug-2019 30-Jun-2020 IN00746468 ►Improved recovery of revenue (not including grants) by local governments (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 30.00 43.40 52.65 50.00 Date 31-Mar-2016 30-Nov-2018 31-Aug-2019 30-Jun-2020 Improving Governance Mechanisms in the Education Sector IN00746465 ►Share of schools targeted by the component with an operational FEFFI, planning and implementing PECs (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 56.00 65.00 75.00 Date 31-Mar-2016 30-Nov-2018 31-Aug-2019 30-Jun-2020 Comments: Citizens 'engagement DLI IN00746469 ►Percentage of FRAM teachers in the areas selected by the component receiving subsidies with less than two months of delay (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 5.00 100.00 5.00 50.00 Date 31-Mar-2016 30-Nov-2018 31-Aug-2019 30-Jun-2020 Improving Controls and Performance Monitoring IN00746466 11/8/2019 Page 5 of 7 The World Bank Implementation Status & Results Report Public Sector Performance Project (P150116) ►Timely availability of the Court of Acccount (CA) public report (process indicator) (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value None YES YES Yes Date 31-Mar-2016 30-Nov-2018 31-Aug-2019 30-Jun-2020 IN00746470 ►High/substantial risks audits completed by Internal Audit Departments (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 8.00 12.00 6.00 Date 31-Mar-2016 30-Nov-2018 31-Aug-2019 30-Jun-2020 IN00746472 ►Semiannual public debates on the budget law, the performance of revenue agencies and project performance led by CSOs. (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 1.00 2.00 2.00 2.00 Date 31-Mar-2016 30-Nov-2018 31-Aug-2019 30-Jun-2020 (Citizens' engagement Indicator) - Annual Budget Law and Loi de Reglement Comments: Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P150116 IDA-58350 Effective USD 40.00 40.00 0.00 18.17 21.26 46% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P150116 IDA-58350 Effective 13-Jun-2016 28-Oct-2016 27-Mar-2017 30-Jun-2020 30-Jun-2020 Cumulative Disbursements 11/8/2019 Page 6 of 7 The World Bank Implementation Status & Results Report Public Sector Performance Project (P150116) Restructuring History Level 2 Approved on 27-Nov-2017 Related Project(s) There are no related projects. 11/8/2019 Page 7 of 7