Public Disclosure Copy The World Bank Implementation Status & Results Report Afghanistan Technical Assistance Facility (P157035) Afghanistan Technical Assistance Facility (P157035) SOUTH ASIA | Afghanistan | Governance Global Practice | Recipient Executed Activities | Investment Project Financing | FY 2016 | Seq No: 1 | ARCHIVED on 30-Sep-2016 | ISR25177 | Implementing Agencies: Ministry of Finance Key Dates Key Project Dates Bank Approval Date:28-Jun-2016 Effectiveness Date:18-Jul-2016 Planned Mid Term Review Date:30-Jun-2018 Actual Mid-Term Review Date:-- Original Closing Date:30-Jun-2020 Revised Closing Date:30-Jun-2020 Project Development Objectives Project Development Objective (from Project Appraisal Document) The development objective is to strengthen the fiscal management and the budget planning performance of the Government of Afghanistan. Has the Project Development Objective been changed since Board Approval of the Project Objective? No PHRPDODEL Components Name Component 1: Supporting the Continuous Improvement of the Performance of the Macro Fiscal Performance Directorate General:(Cost $3.90 M) Component 2: Supporting the Continuous Improvement of the Programs Implementation and Coordination General Directorate:(Cost $1.10 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO  --  Satisfactory Overall Implementation Progress (IP)  --  Satisfactory Overall Risk Rating  --  Substantial Implementation Status and Key Decisions 9/30/2016 Page 1 of 5 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Afghanistan Technical Assistance Facility (P157035) The Afghanistan Technical Assistance Facility (TAF) Project is intended to support reform planning in the Ministry of Finance (MoF) as guided by its Five Year Plan. The project’s development objective is to strengthen the fiscal management and the budget planning performance of the Government of Afghanistan. This will be achieved through the procurement of the necessary inputs including (but not limited to) skills required to support strengthened processes and substantive pieces of work as pertains to macro fiscal policy management and budget planning. The TAF is designed as a flexible facility with built-in capacity to be adaptive and agile. Specific outputs to be supported by TAF will not be identified upfront. These will be exclusively drawn from the MoF Five Year Plan, but will be identified on a periodic basis by the existing Core Group in MoF which acts as a Steering Committee. This arrangement is intended to ensure timeliness of advice, and responsiveness to new or evolving Government priorities. The Directorates of MoF are the primary project beneficiaries, specifically the Macro Fiscal Policy Directorate (MFPD) and Programs Implementation Coordination General Directorate (PICGD). Through informed and evidence-based macro-economic policy-making and budget planning led by these respective Directorates, the Government of Afghanistan at large stands to benefit from improved decision-making. On the one hand, analysis of fiscal sustainability options, both on tax policy and public spending levels, as well as broader macroeconomic and fiscal analysis, help the Government to improve fiscal sustainability in the medium- to long-term. The Government has been tracking the ratio of domestic revenues over recurrent expenditures as an indicator of fiscal sustainability in its simplest form. It is expected that with more comprehensive analytical evidence on fiscal sustainability options, the Government will be able to increase the share of recurrent expenditures that is financed by domestic revenues. On the other hand, putting strategic objectives identified in a National Development Strategy (NDS) into practice requires detailed programming and planning at the sectoral level. Costed sector strategies – planned through PICGD’s secretariat role to the Development Councils and National Priority Programs (NPPs) - is one effective tool to help implement sectoral objectives that are set in NDS. The TAF, funded by the Afghanistan Reconstruction Trust Fund (ARTF) in the amount of US$5 million, was approved by the ARTF Management Committee (MC) on June 28, 2016. The project’s Legal Agreement was signed on July 18, 2016, and the project became effective on the same date. The project is currently in early stages of implementation, with project management and oversight structures and mechanisms, carried out directly by core MoF functions, now fully established. Several high priority procurement packages including to support the High Economic Council (HEC) have been launched while TAF project financing awaits approval of the National Budget by Cabinet, since it would include this project as a stated expenditure. In this regard, MoF is pursuing an ad hoc/exceptional Cabinet approval of project financing to authorize project expenditures by end of September 2016. 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  Substantial  --  Substantial Institutional Capacity for Implementation and Sustainability  Substantial  --  Substantial Fiduciary  Substantial  --  Substantial Environment and Social  Low  --  Low Stakeholders  Substantial  --  Substantial Other  --  --  -- Overall  Substantial  --  Substantial Results Project Development Objective Indicators 9/30/2016 Page 2 of 5 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Afghanistan Technical Assistance Facility (P157035) PHINDPDOTBL  Development and implementation of medium term fiscal framework (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value D D D B Date 01-Jul-2016 -- 14-Sep-2016 30-Jun-2020 PHINDPDOTBL  Development and implementation of forward estimates framework (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value D D D B Date 01-Jul-2016 -- 14-Sep-2016 30-Jun-2020 PHINDPDOTBL  National budget allocation determined by National Development Strategy (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value D D D C+ Date 01-Jul-2016 -- 14-Sep-2016 30-Jun-2020 Overall Comments Intermediate Results Indicators PHINDIRITBL  Calculate estimates of annual medium term resource envelopes and fiscal space including for discretionary and non- discretionary budgets (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value D D D B Date 01-Jul-2016 -- 14-Sep-2016 30-Jun-2020 9/30/2016 Page 3 of 5 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Afghanistan Technical Assistance Facility (P157035) PHINDIRITBL  Estimates of costs of existing policy in forward years (forward estimates) (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value D D D B Date 01-Jul-2016 -- 14-Sep-2016 30-Jun-2020 PHINDIRITBL  Coordination among government and international stakeholders for effective aid delivery to achieve the goals of National Development Strategy (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value D D D C Date 01-Jul-2016 -- 14-Sep-2016 30-Jun-2020 Overall Comments Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed Disbursed P157035 TF-A2839 Effective USD 5.00 5.00 0.00 0.00 5.00 0% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P157035 TF-A2839 Effective 28-Jun-2016 18-Jul-2016 18-Jul-2016 30-Jun-2020 30-Jun-2020 Cumulative Disbursements 9/30/2016 Page 4 of 5 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Afghanistan Technical Assistance Facility (P157035) Restructuring History There has been no restructuring to date. Related Project(s) There are no related projects. 9/30/2016 Page 5 of 5 Public Disclosure Copy