Public Disclosure Copy The World Bank Implementation Status & Results Report Papua New Guinea Development Policy Operation (P165717) Papua New Guinea Development Policy Operation (P165717) EAST ASIA AND PACIFIC | Papua New Guinea | Macroeconomics, Trade and Investment Global Practice | IBRD/IDA | Development Policy Lending | FY 2019 | Seq No: 1 | ARCHIVED on 17-Feb-2020 | ISR40416 | Implementing Agencies: Department of Treasury, The Independent State of Papua New Guinea Key Dates Key Project Dates Bank Approval Date: 25-Oct-2018 Effectiveness Date: 10-Dec-2018 Original Closing Date: 31-Mar-2020 Revised Closing Date: 31-Mar-2020 pdoTable Project Development Objectives Program Development Objective (from Program Document) (i) strengthen fiscal management and revenue performance; and (ii) strengthen key building blocks for public financial management and financial inclusion. Has the Project Development Objective been changed since Board Approval of the Project Objective? No Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO -- Moderately Unsatisfactory Overall Implementation Progress (IP) -- Moderately Unsatisfactory Overall Risk Rating -- High Implementation Status and Key Decisions Pillar 1: Strengthening fiscal management and revenue performance The fiscal and revenue reforms supported under this pillar are expected to lead to an improvement in the non-resource primary fiscal balance and in tax revenue as a share of GDP by 2020. At present, the expected improvement in these two indicators does not look on track to occur in 2020, with the 2020 Budget indicating that fiscal consolidation will begin after 2020 and the revenue reforms not yet translating into an increased tax to GDP ratio. Pillar 2: Strengthening key building blocks for public financial management and financial inclusion. The public financial management and financial sector reforms supported under this pillar are expected to lead to an improvement in the timeliness of the submission of the annual financial statements for audit and an increase in financial inclusion, including for women. At present, the expected improvement in the timeliness of the submission of the annual financial statements for audit is on track. The expected increase in financial inclusion, including for women, needs further assessment, to establish the trajectory for these indicators. 2/17/2020 Page 1 of 4 Public Disclosure Copy The World Bank Implementation Status & Results Report Papua New Guinea Development Policy Operation (P165717) Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance High -- High Macroeconomic High -- High Sector Strategies and Policies Moderate -- Moderate Technical Design of Project or Program Moderate -- Moderate Institutional Capacity for Implementation and Substantial -- Substantial Sustainability Fiduciary High -- High Environment and Social Substantial -- Substantial Stakeholders Substantial -- Substantial Other High -- High Overall High -- High Results Results Indicators Strengthening fiscal management and revenue performance IN00798917 ►The non-resource primary fiscal balance as a percentage of non-resource GDP improves (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value -4.50 -- -5.10 -0.80 Date 31-Dec-2016 -- 31-Dec-2019 31-Dec-2020 The underlying data series have been revised since the original specification of the baselines and targets. The figures here reflect those revisions, which explains the difference between them and the Comments: figures in the program document at approval. IN00798918 ►Tax buoyancy (i.e. tax revenue as a share of GDP) increases (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 12.90 -- 12.30 13.30 Date 31-Dec-2016 -- 31-Dec-2019 31-Dec-2020 The underlying data series have been revised since the original specification of the baselines and targets. The figures here reflect those revisions, which explains the difference between them and the Comments: figures in the program document at approval. 2/17/2020 Page 2 of 4 Public Disclosure Copy The World Bank Implementation Status & Results Report Papua New Guinea Development Policy Operation (P165717) Strengthening key building blocks for public financial management and financial inclusion IN00798945 ►Accountability and transparency in the use of public funds is improved through timely submission of the annual financial statements to the Auditor General's Office (number of months after year-end) (Months, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 12.00 -- 3.00 3.00 Date 31-Dec-2016 -- 31-Dec-2019 31-Dec-2020 IN00798946 ►Financial inclusion increases, as indicated by the percentage of adults with an account at a formal financial institution (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 36.96 -- 47.21 50.00 Date 30-Jun-2016 -- 30-Jun-2019 30-Jun-2020 IN00798947 ►The gender gap in new bank accounts established by women declines (percentage of new bank accounts established by women) (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 26.00 -- 28.51 35.00 Date 31-Dec-2016 -- 30-Jun-2019 31-Dec-2020 Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P165717 IDA-63110 Effective USD 150.00 150.00 0.00 147.99 0.00 100% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P165717 IDA-63110 Effective 25-Oct-2018 09-Nov-2018 10-Dec-2018 31-Mar-2020 31-Mar-2020 Tranches 2/17/2020 Page 3 of 4 Public Disclosure Copy The World Bank Implementation Status & Results Report Papua New Guinea Development Policy Operation (P165717) Restructuring History There has been no restructuring to date. Related Project(s) P168148-Papua New Guinea - Second Economic and Fiscal Resilience DPO 2/17/2020 Page 4 of 4