The World Bank Implementation Status & Results Report Chad Domestic Resource Mobilization and Management (P164529) Chad Domestic Resource Mobilization and Management (P164529) AFRICA | Chad | Governance Global Practice | IBRD/IDA | Investment Project Financing | FY 2019 | Seq No: 3 | ARCHIVED on 01-Feb-2020 | ISR38958 | Implementing Agencies: Republic of Chad, Ministère des Finances Key Dates Key Project Dates Bank Approval Date: 06-Jul-2018 Effectiveness Date: 07-Dec-2018 Planned Mid Term Review Date: 31-Jan-2021 Actual Mid-Term Review Date: Original Closing Date: 02-Nov-2023 Revised Closing Date: 02-Nov-2023 pdoTable Project Development Objectives Project Development Objective (from Project Appraisal Document) To improve performance, processes, and transparency in key government entities for revenue mobilization. Has the Project Development Objective been changed since Board Approval of the Project Objective? No Components Table Name Component A. Results-based Financing to Support Change Management in Customs and Tax administrations:(Cost $12000000.00 M) Component B.Technical Assistance to Strengthen Revenue Agencies:(Cost $21250000.00 M) Component C. Project Management and Coordination:(Cost $1750000.00 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO Moderately Satisfactory Moderately Satisfactory Overall Implementation Progress (IP) Moderately Satisfactory Moderately Satisfactory Overall Risk Rating High High Implementation Status and Key Decisions The project became effective in December 2018. Activities are expected to pick up significantly in the upcoming months with the hiring of technical experts that has been completed and the progress achieved in the past months in the procurement of key activities. Technical Assistance: key procurement processes started in 2019 but were delayed by the country’s public procurement system. Nonetheless, some contracts, mostly related to the long-term technical assistance to the DGSI, DGSDDI and SHT, were finally approved in December 2019 and the contract execution expected to begin in January 2020. The remaining activities, for which procurement processes had not been launched yet, are in the process of being consolidated into large technical assistance contracts. The Procurement plan will be updated accordingly. DLIs (6): Since the project's effectiveness the Government has issued mandatory payment instructions for large taxpayers. Today, 100% of large taxpayers pay through the banking system. As a result, DIL 3 has been fully achieved and the first disbursement of 1,5 million USD will be made 2/1/2020 Page 1 of 7 The World Bank Implementation Status & Results Report Chad Domestic Resource Mobilization and Management (P164529) once an independent verification entity has verified these results. Despite the significant achievement that is the “bancarisation des recettes”, progress toward the achievement of the 5 remaining DLIs has stalled. For instance, the EU-funded taxpayers census that was supposed to be completed in 2019 has not yet started (DLI 1); the introduction of electronic filing of tax returns has been postponed until a new integrated tax administration system is purchased and installed (DLI 2); and pay-by-phone for small taxpayers, although already introduced through legislation, still remains to be implemented (DLI 4). With regard to DLIs which aim to support reforms in customs processes, promising activities have been implemented in recent months. In order to reduce physical inspections, the DGSDDI is continuing the accreditation process for large operators. The Government has also created a risk unit, within the DGSDDI, that will oversee the implementation of the risk-based approach and further reduce physical inspections. These actions, coupled with the technical assistance to improve the customs administration, which should begin before September 2020, will allow the government to make progress toward achieving DLIs 5 and 6. An action plan to speed up project implementation and achieve DLIs is being prepared jointly with the Government. Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance High High High Macroeconomic High High High Sector Strategies and Policies High High High Technical Design of Project or Program Moderate Moderate Moderate Institutional Capacity for Implementation and High High High Sustainability Fiduciary Substantial Substantial Substantial Environment and Social Low Moderate Moderate Stakeholders High High High Other Substantial Substantial Substantial Overall High High High Results PDO Indicators by Objectives / Outcomes Improve performance, processes, and transparency in key government revenue mobilization entities. IN00756342 ►Increase in Tax and Customs revenue collection relative to non-oil GDP (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 8.50 8.50 8.50 15.30 Date 29-Dec-2017 12-Oct-2018 12-Oct-2018 30-Sep-2023 2/1/2020 Page 2 of 7 The World Bank Implementation Status & Results Report Chad Domestic Resource Mobilization and Management (P164529) IN00756343 ►Increase transparency of the SHT's operations in the petroleum sector (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Financial statements No automatically No automatically No automatically are produced by an Value generated financial generated financial generated financial integrated accounting statements statements statements and management system Date 29-Dec-2017 12-Oct-2018 12-Oct-2018 30-Jun-2023 Intermediate Results Indicators by Components Component A: Results-based financing to support change management in customs and tax administrations IN00756344 ►Support the utilization of a unified taxpayers’ registry for enterprises (DLI) (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target The unified tax registry Value No unified registry No unified registry No unified registry is operational Date 31-Dec-2017 12-Oct-2018 12-Oct-2018 30-Sep-2023 IN00756391 ►Support the gradual adoption of electronic filing by large taxpayers (DLI) (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target 5 percent of large 5 percent of large 5 percent of large At least 20 percent of Value taxpayers file taxpayers file taxpayers file large taxpayers file electronically electronically electronically electronically Date 31-Dec-2017 12-Oct-2018 12-Oct-2018 30-Sep-2023 IN00756393 ►Support the rollout of mandatory taxpayment by large taxpayers through the banking system (DLI) (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target At least 100 percent of 20 percent of large 20 percent of large 20 percent of large large taxpayers pay Value taxpayers use the taxpayers use the taxpayers use the through the banking banking syst banking syst banking syst system Date 29-Dec-2017 12-Oct-2018 12-Oct-2018 30-Sep-2023 IN00756395 ►Support the gradual adoption of pay-by-phone by small tax payers (DLI) (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target 0 percent of small 0 percent of small 0 percent of small At least 20 percent of Value taxpayers use pay-by- taxpayers use pay-by- taxpayers use pay-by- small taxpayers use phone phone phone pay-by-phone Date 31-Dec-2017 12-Oct-2018 12-Oct-2018 30-Sep-2023 2/1/2020 Page 3 of 7 The World Bank Implementation Status & Results Report Chad Domestic Resource Mobilization and Management (P164529) IN00756397 ►Reduce the Number of Physical Inspections (DLI) (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target No more than 50 100 percent of 100 percent of 100 percent of percent of imported Value merchandise is subjected merchandise is subjected merchandise is merchandise is to multipl to multipl subjected to multipl physically inspected Date 31-Dec-2017 12-Oct-2018 12-Oct-2018 30-Sep-2023 IN00756399 ►Reduce release time for imported merchandise decreased (DLI) (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target 242 hours on average to 242 hours on average to 242 hours on average 190 hours on average Value clear imported clear imported to clear imported to clear imported merchandise merchandise merchandise merchandise Date 31-Dec-2017 12-Oct-2018 12-Oct-2018 30-Sep-2023 Component B: Technical assistance to strengthen revenue agencies IN00756345 ►Establishment of unique identification number for enteprises for all administrations (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Multiple taxpayers Multiple taxpayers Multiple taxpayers All administrations use identification number are identification number are identification number Value the same identification used across the used across the are used across the number for taxpayers administration administration administration Date 29-Dec-2017 12-Oct-2018 12-Oct-2018 30-Sep-2023 IN00756392 ►Risk-based procedures and audits are adopted in tax and customs administration (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Risk based audits Value No risk-based audits No risk-based audits No risk-based audits procedures are adopted Date 31-Dec-2017 12-Oct-2018 12-Oct-2018 30-Sep-2023 IN00756394 ►Ratio of risk-based audits performed on large and medium taxpayers (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 70.00 Date 29-Dec-2017 12-Oct-2018 12-Oct-2018 30-Jun-2023 IN00756396 ►Number of tax offices in N'Djamena in which SIGTAS upgraded version has been rolled out (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target 2/1/2020 Page 4 of 7 The World Bank Implementation Status & Results Report Chad Domestic Resource Mobilization and Management (P164529) Value 0.00 0.00 0.00 3.00 Date 31-Dec-2017 12-Oct-2018 12-Oct-2018 30-Sep-2023 IN00756398 ►Number of customs offices in which ASYCUDA upgraded version has been rolled out (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 4.00 Date 31-Dec-2017 12-Oct-2018 12-Oct-2018 30-Sep-2023 IN00756400 ►Users traffic on the tax and trade information portals (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 100.00 100.00 100.00 15,000.00 Date 31-Dec-2017 12-Oct-2018 12-Oct-2018 30-Sep-2023 IN00756401 ►Petroleum costs benchmarks are established (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target No comparator Cost comparators Value No comparator identified No comparator identified identified established Date 31-Dec-2017 12-Oct-2018 12-Oct-2018 30-Jun-2023 IN00756402 ►Petroleum contracts are recorded in a cadastral system (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 100.00 Date 31-Dec-2017 12-Oct-2018 12-Oct-2018 30-Sep-2023 IN00756403 ►Mobile Rural Connectivity Operation Manual is developed (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No No No Yes Date 29-Dec-2017 12-Oct-2018 12-Oct-2018 30-Sep-2021 IN00756404 ►Taxpayers' satisfaction with DGI quality of taxpayers services (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value Baseline established Baseline established Baseline established At least 50 percent of through survey through survey through survey surveyed users express satisfaction 2/1/2020 Page 5 of 7 The World Bank Implementation Status & Results Report Chad Domestic Resource Mobilization and Management (P164529) with the DGI taxpayers' services Date 30-Sep-2021 12-Oct-2018 12-Oct-2018 30-Jun-2023 IN00756405 ►Taxpayers' satisfaction with DGDDI quality of customs services (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target At least 50 percent of surveyed users Baseline established Baseline established Baseline established Value express satisfaction through suvery through suvery through suvery with the DGDDI services Date 30-Sep-2021 12-Oct-2018 12-Oct-2018 30-Sep-2023 IN00756406 ►Improve the use of the USF to expand mobile telephony coverage to rural areas (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 1.00 Date 29-Dec-2017 12-Oct-2018 12-Oct-2018 30-Sep-2023 Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P164529 IDA-D3440 Effective USD 35.00 35.00 0.00 1.58 31.93 4.7% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P164529 IDA-D3440 Effective 06-Jul-2018 14-Aug-2018 07-Dec-2018 02-Nov-2023 02-Nov-2023 Cumulative Disbursements 2/1/2020 Page 6 of 7 The World Bank Implementation Status & Results Report Chad Domestic Resource Mobilization and Management (P164529) Restructuring History There has been no restructuring to date. Related Project(s) There are no related projects. 2/1/2020 Page 7 of 7