The World Bank Modernization and Innovation for Better Public Services in Argentina (P157136) REPORT NO.: RES38187 RESTRUCTURING PAPER ON A PROPOSED PROJECT RESTRUCTURING OF MODERNIZATION AND INNOVATION FOR BETTER PUBLIC SERVICES IN ARGENTINA APPROVED ON FEBRUARY 21, 2017 TO ARGENTINE REPUBLIC GOVERNANCE LATIN AMERICA AND CARIBBEAN Regional Vice President: Axel van Trotsenburg Country Director: Jordan Z. Schwartz Regional Director: Robert R. Taliercio Practice Manager/Manager: Adrian Fozzard Task Team Leader: Marco Larizza The World Bank Modernization and Innovation for Better Public Services in Argentina (P157136) ABBREVIATIONS AND ACRONYMS DLI Disbursement Linked Indicators MTR Mid-Term Review DLR Disbursement Linked Results PAD Project Appraisal Document eDMS Electronic Document Management System PDO Project Development Objective GSM Secretariat of Government Modernization SME Small and Medium Enterprises (Secretaría de Gobierno de Modernización) INAP National Institute of Public Administration TAD Remote-Based Services (Trámites a Distancia) (Instituto Nacional de Administración Pública) IP Implementation Progress IPF Investment Project Financing JGM Chief of Cabinets Office (Jefatura de Gabinete de Ministros) The World Bank Modernization and Innovation for Better Public Services in Argentina (P157136) BASIC DATA Product Information Project ID Financing Instrument P157136 Investment Project Financing Original EA Category Current EA Category Not Required (C) Not Required (C) Approval Date Current Closing Date 21-Feb-2017 30-Jun-2021 Organizations Borrower Responsible Agency Republic of Argentina Secretariat of Modernization, Chief of Cabinet Project Development Objective (PDO) Original PDO To improve the quality and accessibility of selected government administrative services and enhance transparency in the public administration. OPS_TABLE_PDO_CURRENTPDO Summary Status of Financing Net Ln/Cr/Tf Approval Signing Effectiveness Closing Commitment Disbursed Undisbursed IBRD-87100 21-Feb-2017 17-Aug-2017 18-Oct-2017 30-Jun-2021 80.00 48.25 31.75 Policy Waiver(s) Does this restructuring trigger the need for any policy waiver(s)? No The World Bank Modernization and Innovation for Better Public Services in Argentina (P157136) I. PROJECT STATUS AND RATIONALE FOR RESTRUCTURING 1. The Modernization and Innovation for Better Public Services in Argentina” Project (P157136) is a US$ 80 million Investment Project Financing (IPF) with Disbursement Linked Indicators (DLIs) approved by the Board on January 30, 2017. The project development objective (PDO) is to improve the quality and accessibility of selected government administrative services and enhance transparency in the public administration. This project supports the implementation of the State Modernization Plan launched in March 2016 by the Government to advance the modernization agenda in the National Public Administration from a transparency and citizen-centric perspective. The Project finances results in four selected areas: implementation of redesigned, online services for citizens; the electronic civil registry in the Province of Buenos Aires; an updated electronic procurement system; and an electronic workflow management platform for documents. These areas were chosen based on their relevance to citizens/businesses, service providers’ demand for modernization and strategic importance to the PDO. The Disbursement Linked Results Financing (DLR) using DLIs is designed to incentivize effective implementation and use of key public management tools. The main counterpart is the Secretariat of Modernization within the Chief of Cabinet of the Government of Argentina, the lead federal agency responsible for public sector issues. 2. Progress towards achieving the PDO is rated Satisfactory. All three outcome indicators met or surpassed their final targets as a result of the strong commitment of the Government to the reform program prepared during appraisal and, in the case of a specific activities with municipalities (País Digital), the federal funds available to support project activities. Nine of fourteen intermediate results indicators have already met their final targets and another two are making good progress towards achieving the final targets and exceeding the second-year targets. 3. Overall Implementation Progress (IP) is rated Satisfactory. Funds allocated to the results-based financing will be fully disbursed by the end of 2019, however direct investments will reach 53 percent and are expected to slow thereafter. As of September 11, 2019, US$48.25 million (60.3 percent) of loan proceeds have been disbursed and disbursements are expected to reach US$52 million by the end of 2019 (65 percent of loan proceeds). Despite this progress, the Project’s budget space is likely to be constrained due to the difficult macroeconomic situation and the Government’s effort to reduce the fiscal deficit with austerity measures, which may affect input-based activities in the project and result in a slowdown in loan disbursement for the remaining implementation period. 4. The mid-term review (MTR) in July 2019 recommended the reallocation of project funds from direct investments to DLR financing to maintain the Project’s implementation momentum and help the Project to achieve more ambitious targets. The MTR mission confirmed a broad consensus exists among Project stakeholders that the PDO is still relevant. Substantial progress has been made in all three Project components. Several targets have already been met as shown in the Results Framework and documented during the MTR mission. The DLI-based component has progressed well and 85 percent of the allocation for this component was already disbursed by September 2019. The remaining balance is expected to be disbursed by the end of 2019. During the mission, the inclusion of additional activities was discussed reflecting new priorities within the original scope and Project components. 5. The proposed restructuring will expand the impacts of the Project as the outcomes were achieved much faster than expected in half the implementation period and incentivize the achievements of more ambitious results aligned with the Government’s Modernization Plan through the reallocation of resources to DLI. The restructuring will include a reallocation of loan proceeds between expenditure categories, a revision of components and costs, changes to the results framework, including DLIs, an update of disbursement estimates The World Bank Modernization and Innovation for Better Public Services in Argentina (P157136) and revision of the implementation arrangements as a result of institutional changes after Government reshuffling in September 2018. 6. The present restructuring builds upon MTR recommendations and aims to respond to the formal request received by the client on September 9, 2019. The actions described within Section II will ensure that the Project completes the scheduled activities and fully achieves its objectives by the June 30, 2021 closing date. II. DESCRIPTION OF PROPOSED CHANGES 7. Reallocation of loan proceeds between expenditure categories. The disbursement categories will be modified to reflect adjustments to the subcomponents and activities under which underlying expenditures are eligible, adding Components 1.1(b)(ii), 1.2(c)(ii), and 2.3(d) to those to be financed with underlying expenditures. A total of US$18 million of loan proceeds will be reallocated from Category 2 (goods, works, non-consulting services, consulting services, training and workshops, and operating costs) to Category 1 (underlying expenditures) Table 1 below shows the revised Disbursement Table. Table 1. Revised Disbursement Categories Category (Revised) Amount of the Loan Percentage of Allocated (US$) Expenditures to be Financed (inclusive of Taxes) (1) Underlying Expenditures under Components 1.1(a), 38,000,000 100% 1.1(b)(ii),1.1(c), 1.2 (c)(ii), 2.2, 2.3(d) and 3.2 (a) of the Project (2) Goods, works, non-consulting services, consulting services, 41,800,000 100% Training and Workshops, and Operating Costs under Components 1.1(b) (except 1.1(b)(ii)), 1.1(d), 1.2 (except 1.2(c)(ii)), 2.1, 2.3 (except 2.3(d)), 2.4, 3.1, 3.2(b), 3.2(c), and 3.3 of the Project (3) Front-end Fee 200,000 Amount payable pursuant to Section 2.03 of the Legal Agreement in accordance with Section 2.07(b) of the General Conditions (4) Interest Rate Cap or Interest Rate Collar premium 0 Amount due pursuant to Section 2.08(c) of the Loan Agreement Total 80,000,000 8. Components and Costs. The Project components have been revised to include three new activities in support of the Government’s State Modernization Plan and the Project’s development objective: a. Activity 1.2.c.iii, implementation of digital access points (puntos digitales) to facilitate citizen access to digital services at locations across the territory of the Borrower; The World Bank Modernization and Innovation for Better Public Services in Argentina (P157136) b. Activity 2.3.e, the carrying out of competitive hiring processes for the top management cadre in line with the HR management system under implementation; and c. Activity 2.3.f, the support to the National Institute of Public Administration (Instituto Nacional de Administración Pública, INAP) to strengthen its institutional capacities and develop training modules, 9. The planned input-based activities under Components 2 and 3 are on track and will achieve their objectives and be completed as planned, but at lower costs than originally budgeted. The loan savings from these activities will be reallocated to results-based activities under Components 1 and 2 to support additional activities for the use of online services for small and medium enterprises (SMEs), the implementation of digital services in municipalities, training of public employees on the Government’s modernization program, and to further expand the electronic workflow management platform through the use of DLIs to incentivize the achievement of associated results. See Table A1 for a presentation of these changes to Project costs by component. 10. Results Framework. The results framework will be updated as follows (see Table A2 for additional details): a. increase in the annual Year 3 and Year 4 targets for the PDO indicator (and DLI) capturing the number of government internal administrative processes which have been mapped and modeled with the electronic Document Management System (eDMS); b. addition of four new intermediate indicators capturing: progress on the volume of administrative processes processed through the remote-based services (trámites a distancia, TAD) (also a new DLI), the implementation of digital access points, training to public employees on topics related to the Government’s modernization program (also a new DLI), and the carrying out of competitive hiring processes within the top management cadre; disaggregation of the indicator of user satisfaction; adjustment of the indicator on electronic processing of asset declarations; and the dropping of one intermediate indicator on innovation projects. c. conversion of an intermediate indicator measuring the number of pilot municipalities with improved digital public services into a DLI, with the subsequent increase in the annual targets corresponding to Year 3 and Year 4; 11. Institutional Arrangements. Project Institutional Arrangements will be adjusted to reflect the changes in Government organizational structure set forth in Decree 801/2018, which fused various ministries with the objective of centralizing responsibilities within a smaller number of institutions and included the transfer of the Ministry of Modernization’s responsibilities to the Chief of Cabinet’s Office (Jefatura de Gabinete de Ministros, JGM). Decree 802/2018 created the position of Secretary of Government Modernization, which also serves as Deputy Head of Government, within JGM. The Project Implementation Unit is now located within the Undersecretary of Administrative Coordination’s Directorate of Management, Programs and Projects within JGM’s Government Secretariat of Modernization. These organizational changes are helpful for the achievement of the PDO because the new Government Secretariat of Modernization has become a truly transversal entity with enhanced capacity to oversee the State's modernization programs. 12. Implementation Arrangements. Overall implementation arrangements including financial management and procurement will remain unchanged, except for the following: a) addition of new DLR corresponding to DLI#4 (under Component 3) and the introduction of three new DLIs (under Component 1, Subcomponent 1.1, Activity b (ii) and Subcomponent 1.2, Activity c (ii), and Component 2, Subcomponent 2.3, Activity d). The World Bank Modernization and Innovation for Better Public Services in Argentina (P157136) 13. Disbursements and Expenditure Program. The disbursement schedule will be adjusted as a result of the reallocation of loan proceeds. Table A3 below provides further details on DLR targets, DLR prices, and the underlying expenditures associated with each DLI. Projected underlying expenditures have been reviewed to ensure they are sufficient to match the increased disbursement through DLIs. The expenditure projections underlying both the DLI and the traditional financing component of the project take into account the recent devaluation in the Argentina Peso (1 US$ = 60 pesos). The proposed financing structure will be sufficient for full disbursement if there is no further substantial devaluation of the peso. 14. Disbursement estimates. A revised disbursement schedule is included to reflect the additional year of Project implementation. 15. Overall risk rating. The updated risk assessment is presented below. The overall risk to the successful achievement of the PDO is Substantial. The team has downgraded some of the risks from the last Implementation Status and Results (ISR) report due to exogenous factors related to the country’s macro- economic situation and political uncertainty. Specifically: a. Macro-economic risks: downgraded from Substantial to High. The macro-fiscal measures introduced by the Government to reduce the country’s fiscal deficit have reduced the budget assigned to ministries and agencies, including the Secretariat of Modernization. This might prevent the Project from disbursing the remaining loan balance. The proposed reallocation of US$18 million to the results-based financing component is expected to mitigate this risk. The team will continue to monitor the situation and discuss with Government authorities if further proactive measures need to be taken to ensure that disbursement targets are met. b. Political and Governance Risk: downgraded from Substantial to High. Depending on the outcomes of the national elections, the political transition and the process of appointing Ministries and senior officials might slow down Project disbursement rates. Moreover, new political authorities may wish to undertake further adjustments in Project design, to better reflect new strategic priorities. To mitigate this risk, the team stands ready to engage with the new administration to ensure the project continues to align with government-led public sector reform agenda. c. Sector Strategies and Policies Risk: downgraded from Moderate to Substantial. Modernization reforms are starting to deliver results for citizens and firms: the Project is performing well, with most DLI targets achieved or even outperformed. While it is true that the Secretariat of Modernization (which is our main counterpart) was a political creation of the Macri administration that might disappear or being re-organized, the functions that the Ministry has played over the past three years and the ongoing processes to digitalize the public administration will most likely continue to be performed by a different entity in the event that a ministerial reorganization should take place. However, sector priorities might change in the post-election period, requiring revisions in specific Project components and activities (like the Human Resource Management component and the anti- corruption activities with the “Oficina Anti-Corrupcion”). The World Bank Modernization and Innovation for Better Public Services in Argentina (P157136) ANNEX 1. Table A1. Revised Financing by Component (US$ Millions) Project Component Current Cost Revised Cost (US$M) Component 1. 17.9 24.9 Improvements in Service Delivery to DLI-based: 8 DLI-based: 15 Citizens, Businesses, Input-based: 8.1 Input-based: 8.1 and Government Counterpart: 1.8 Counterpart: 1.8 Component 2. 20.9 25.9 Strengthening of Cross-Cutting Public DLI-based: 3 DLI-based: 11 Sector Management Input-based: 15.8 Input-based: 12.8 Systems and Counterpart: 2.1 Counterpart: 2.1 Platforms Component 3. 49.9 37.9 Enabling Technology and DLI-based: 9 DLI-based: 12 Reform Input-based: 35.9 Input-based: 20.9 Management Counterpart: 5 Counterpart: 5 Sub-total 88.7 88.7 DLI-based: 20 DLI-based: 38 Input-based: 59.8 Input-based: 41.8 Counterpart: 8.9 Counterpart: 8.9 Front End Fee 0.2 0.2 IBRD Total 80 80 Counterpart Total 8.9 8.9 PROJECT TOTAL 88.9 88.9 The World Bank Modernization and Innovation for Better Public Services in Argentina (P157136) Table A2. Revisions to the Results Framework Original Indicator (PAD) Progress to Revised Indicator Reason for Change Date (Current Restructuring) PDO Indicators PDO #1: Number of users registered on the 1,600,000 No change. argentina.gob.ar portal with a Citizen Digital Profile (Baseline: 500; Year 4 target: 1,500,000) PDO #2: Improved performance in the Open 47 No change. Data Barometer Index (Baseline: 23.78; Year 4 target: 46) PDO #3: Cumulative number of government 460 Revised Year 3 and 4 Original targets internal administrative processes mapped and targets (DLI): 540 and achieved. New modelled with eDMS across national line 650 targets to monitor ministries and other entities of the national continuing advances public administration (DLI) (Baseline: 0; Year 4 over the remained of target: 460) Project implementation. Intermediate Indicators 1.1.1: Number of key citizen centric processes 11 No change. designed and available online (DLI) (Baseline: 0; Year 4 target: 22) 1.1.2: Percentage of transactions related to 90 No change. SMEs carried out through electronic means (Baseline: 1; Year 4 target: 90) 1.1.3: Number of regional government offices 137 No change. within the Province of Buenos Aires with an operating electronic Civil Registry (DLI) (Baseline: 0; Year 4 target: 137) 1.1.4: Improved user satisfaction with 0 1.1.4: Percentage of Disaggregation of government services for a predetermined set users who evaluate original indicator to of services (Baseline: TBD; Year 4 target: TBD) Argentina.gob.ar’s report separately on services satisfactorily separate services (Baseline: 58.5; Year 4 (Argentina.gob.ar target: 68) and TAD) 1.1.5: Percentage of users who evaluate TAD government services satisfactorily (Baseline: 76; Year 4 target: 82) 1.1.6: Number of Indicator introduced administrative processes to track continuing generated through the progress on TAD virtual services platform implementation. (Trámites a Distancia) referred to in Part 1.1(a)(iv) of the Project (DLI) (Baseline: The World Bank Modernization and Innovation for Better Public Services in Argentina (P157136) 3,255,240); Year 4 target: 5,635,240 1.2.1: Number of framework agreements 23 No change. processed through the e-procurement portal (Baseline: 0; Year 4 target 15) 1.2.2: Percentage of public employees that 0 1.2.2: Proportion of Phrasing adjusted to have their asset declarations captured public employees reflect universe of electronically, processed, and analyzed required to submit asset public employees (Baseline: 0; Year 4 target: 70) declarations whose required to submit declarations are asset declarations. electronically captured, processed, and analyzed (Baseline: 0; Year 4 target: 70) 1.2.3: Number of pilot Province governments 11 No change. with back-office processes supported by eDMS (Baseline: 0; Year 4 target: 7) 1.2.4: Number of pilot municipalities with new 1,046 1.2.4: Number of Original targets digital public services (Baseline: 190; Year 4 participating achieved. New target: 700) municipalities with new targets to monitor digital public services continuing advances (DLI) Revised Year 3 and over the remainder Year 4 targets: 1,080 and of Project 1,240) implementation. 1.2.5: Number of new Indicator introduced digital access points to measure progress (puntos digitales) on newly implemented (Baseline: incorporated activity. 0; Year 4 target: 110) 2.1.1: Number of Results-Based Management 28 No change. Dashboards implemented at the ministry level (Baseline: 0; Year 4 target: 10) 2.2.1: Percentage of purchasing units within 95 No change. the national public administration operating with the new electronic procurement system (DLI) (Baseline: 11; Year 4 target: 95) 2.3.1: Percentage of ministerial units 36.5 No change. (reparticiones) using the management system for HR management SARHA or equivalent (Baseline: 0; Year 4 target: 79) 2.3.2: Number of employees within the Borrower’s national public administration passing at least one INAP class related to the Borrower’s modernization program, as listed in the Operational Manual The World Bank Modernization and Innovation for Better Public Services in Argentina (P157136) (DLI) (Baseline: 0; Year 4 target: 40,000) 2.3.3: Number of Indicator introduced competitive to measure progress employment processes on newly for positions within the incorporated activity. top management cadre (Alta Dirección Pública) (Baseline: 80; Year 4 target: 450) 2.4.1: Number of datasets in open formats 922 No change. published in the national open data portal in a timely manner (Baseline: 200; Year 4 target: 800) 2.4.2: Ratio of innovation project implemented No Dropped. Difficulties in of total projects proposed information measuring the universe of total innovation projects across different implementing entities. 3.3.1: Increased government IT processing and 3 racks No change. data storage capacity (Baseline: 1 rack installed installed; Year 4 target: 3 racks installed) The World Bank Modernization and Innovation for Better Public Services in Argentina (P157136) Table A3. Original and Revised DLIs, DLRs, and Associated Disbursements Original Revised Disbursements Associated Underlying Associated Associated to Date Expenditures Results-based Disbursement Disbursement (US$ Millions; DLRs (DLIs) Schedule Schedule September 11, (US$ Millions, (US$ Millions) 2019) PAD) Component 1. Improvements in Service Delivery to Citizens, Businesses, and Government (Original) DLI#1. (Original) Target 1.0 Chief of Cabinet’s Office Implementation 1.1: Website (Jurisdiction 25), of cumulative available with an Secretary of Government number of key updated catalog Modernization citizen centric of citizen (Jurisdiction 25-02), processes services Central Activities redesigned with (Original) Target 0.75 (Program 1), Activity 8 support from the 1.2: At least 3 (Public Innovation and GSM and redesigned Open Government), Cost available online citizen services Items 1 and 2; and 3.25 in the available Human Resource argentina.gob.ar (Original) Target 0.75 Development of the portal (from a 1.3: At least 8 Public Sector (Program baseline of 0) redesigned 22), Technological citizen services Infrastructure available Integration and Digital (Original) Target 0.75 Country (Program 23), 1.4: At least 11 No Change Strengthening of redesigned Management and Public citizen services Innovation (Program 24), available and Administrative (Original) Target 0.75 Expected by Modernization (Program 1.5: At least 14 end 2019 25), Cost Items 1 and 2 redesigned citizen services available (Original) Target 0.5 1.6: At least 18 redesigned citizen services available (Original) Target 0.5 1.7: At least 22 redesigned citizen services available (Original) DLI#2. (Original) Target 0.5 n/a Cumulative 2.1: No Change 3.0 number of main Interinstitutional civil registry Agreement offices signed between The World Bank Modernization and Innovation for Better Public Services in Argentina (P157136) Original Revised Disbursements Associated Underlying Associated Associated to Date Expenditures Results-based Disbursement Disbursement (US$ Millions; DLRs (DLIs) Schedule Schedule September 11, (US$ Millions, (US$ Millions) 2019) PAD) (cabeceras) the GSM and the within the Government of Province of the Province of Buenos Aires Buenos Aires for with an the operating implementation electronic Civil of the Civil Registry (from a Registry baseline of 0) Modernization project (Original) Target 0.3 2.2: 10 main regional offices with an operating electronic civil registry (Original) Target 0.7 2.3: 30 main regional offices with an operating electronic civil registry (Original) Target 0.4 2.4: 50 main regional offices with an operating electronic civil registry (Original) Target 0.6 2.5: 80 main regional offices with an operating electronic civil registry (Original) Target 0.2 2.6: 100 main regional offices with an operating electronic civil registry The World Bank Modernization and Innovation for Better Public Services in Argentina (P157136) Original Revised Disbursements Associated Underlying Associated Associated to Date Expenditures Results-based Disbursement Disbursement (US$ Millions; DLRs (DLIs) Schedule Schedule September 11, (US$ Millions, (US$ Millions) 2019) PAD) (Original) Target 0.3 2.7: 137 main regional offices with an operating electronic civil registry (New) DLI#5. (New) Target N/A 1 Chief of Cabinet’s Office Number of 5.1: At least (Jurisdiction 25), administrative 3,955,240 Secretary of processes administrative Government generated processes Modernization through the generated (Jurisdiction 25-02), virtual services (New) Target N/A 1.5 Central Activities platform 5.2: At least (Program 1), Activity 8 (Trámites a 4,795,240 (Public Innovation and Distancia, TAD) administrative Open Government), Cost platform processes Items 1 and 2; and referred to in generated Human Resource N/A Part 1.1(a)(iv) of (New) Target N/A 1.5 Development of the the Project (from 5.3: At least Public Sector (Program a baseline of 0) 5,635,240 22), Technological administrative Infrastructure processes Integration and Digital generated Country (Program 23), Strengthening of Management and Public Innovation (Program 24), and Administrative Modernization (Program 25), Cost Items 1 and 2 (New) DLI#6. (New) Target N/A 0.5 Chief of Cabinet’s Office Number of 6.1: At least (Jurisdiction 25), Participating 1,080 Secretary of Municipalities participating Government with new digital municipalities Modernization public services. (New) Target N/A 1 (Jurisdiction 25-02), (Indicator 1.2.4 6.2: At least Central Activities N/A in PAD RF) (from 1,140 (Program 1), Activity 8 a baseline of 0) participating (Public Innovation and municipalities Open Government), Cost (New) Target N/A 1.5 Items 1 and 2; and 6.3: At least Human Resource 1,240 Development of the Public Sector (Program The World Bank Modernization and Innovation for Better Public Services in Argentina (P157136) Original Revised Disbursements Associated Underlying Associated Associated to Date Expenditures Results-based Disbursement Disbursement (US$ Millions; DLRs (DLIs) Schedule Schedule September 11, (US$ Millions, (US$ Millions) 2019) PAD) participating 22), Technological municipalities Infrastructure Integration and Digital Country (Program 23), Strengthening of Management and Public Innovation (Program 24), and Administrative Modernization (Program 25), Cost Items 1 and 2 Component 2. Strengthening of Cross-Cutting Public Sector Management Systems (Original) DLI#3. (Original) Target 0.5 Percentage of 3.1: 11% of n/a purchasing units purchasing units (out of a total of (Original) Target 0.2 98 purchasing 3.2: 25% of units) within the purchasing units national public (Original) Target 0.3 administration 3.3:50% of operating with purchasing units the new (Original) Target 0.5 procurement No Change 3.4: 60% of 3.0 system purchasing units (Original) Target 0.5 3.5: 75% of purchasing units (Original) Target 0.4 3.6:85% of purchasing units (Original) Target 0.6 3.7: 95% of purchasing units (New) DLI #7. (New) Target N/A 2 Chief of Cabinet’s Office Number of 7.1: 10,000 (Jurisdiction 25), employees employees Secretary of within the (New) Target N/A 3 Government Borrower’s 7.2: 25,000 Modernization national public employees (Jurisdiction 25-02), N/A administration (New) Target N/A 3 Central Activities passing at least 7.3: 40,000 (Program 1), Activity 8 one INAP course employees (Public Innovation and related to the Open Government), Cost Borrower’s Items 1 and 2; Human modernization Resource Development The World Bank Modernization and Innovation for Better Public Services in Argentina (P157136) Original Revised Disbursements Associated Underlying Associated Associated to Date Expenditures Results-based Disbursement Disbursement (US$ Millions; DLRs (DLIs) Schedule Schedule September 11, (US$ Millions, (US$ Millions) 2019) PAD) program, as of the Public Sector listed in the (Program 22), Operational Technological Manual Infrastructure Integration and Digital Country (Program 23), Strengthening of Management and Public Innovation (Program 24), and Administrative Modernization (Program 25), Cost Items 1 and 2 Component 3. Enabling Technology and Reform Management (Original) DLI#4. (Original) Target 1.0 Chief of Cabinet’s Office Cumulative 4.1: 30 (Jurisdiction 25), number of government Secretary of government internal Government internal administrative Modernization administrative processes (Jurisdiction 25-02), processes mapped and Central Activities mapped and modelled with (Program 1), Activity 8 modelled with eDMS (Public Innovation and eDMS across (Original) Target 1.2 Open Government), Cost national line 4.2: 80 Items 1 and 2; and ministries and government Human Resource No Change other entities of internal 9 Development of the the national administrative Public Sector (Program public processes 22), Technological administration mapped and Infrastructure (from a baseline modelled with Integration and Digital of 0) eDMS Country (Program 23), (Original) Target 1.8 Strengthening of 4.3: 130 Management and Public government Innovation (Program 24), internal and Administrative administrative Modernization (Program processes 25), Cost Items 1 and 2. mapped and The World Bank Modernization and Innovation for Better Public Services in Argentina (P157136) Original Revised Disbursements Associated Underlying Associated Associated to Date Expenditures Results-based Disbursement Disbursement (US$ Millions; DLRs (DLIs) Schedule Schedule September 11, (US$ Millions, (US$ Millions) 2019) PAD) modelled with eDMS (Original) Target 1.0 4.4: 200 government internal administrative processes mapped and modelled with eDMS (Original) Target 1.5 4.5: 280 government internal administrative processes mapped and modelled with eDMS (Original) Target 1.1 4.6: 350 government internal administrative processes mapped and modelled with eDMS (Original) Target 1.4 4.7: 460 government internal administrative processes mapped and modelled with eDMS (New) Target N/A 1 4.8:540 government internal N/A administrative processes mapped and The World Bank Modernization and Innovation for Better Public Services in Argentina (P157136) Original Revised Disbursements Associated Underlying Associated Associated to Date Expenditures Results-based Disbursement Disbursement (US$ Millions; DLRs (DLIs) Schedule Schedule September 11, (US$ Millions, (US$ Millions) 2019) PAD) modelled with eDMS (New) Target N/A 1.5 4.9: 620 government internal administrative processes mapped and modeled with eDMS (New) Target N/A 0.5 4.10: 650 government internal administrative processes mapped and modeled with eDMS III. SUMMARY OF CHANGES Changed Not Changed Results Framework ✔ Components and Cost ✔ Reallocation between Disbursement Categories ✔ Disbursements Arrangements ✔ Disbursement Estimates ✔ Overall Risk Rating ✔ Institutional Arrangements ✔ Implementation Schedule ✔ Implementing Agency ✔ DDO Status ✔ Project's Development Objectives ✔ The World Bank Modernization and Innovation for Better Public Services in Argentina (P157136) Loan Closing Date(s) ✔ Cancellations Proposed ✔ Safeguard Policies Triggered ✔ EA category ✔ Legal Covenants ✔ Financial Management ✔ Procurement ✔ Other Change(s) ✔ Economic and Financial Analysis ✔ Technical Analysis ✔ Social Analysis ✔ Environmental Analysis ✔ IV. DETAILED CHANGE(S) OPS_DETAILEDCHANGES_COMPONENTS_TABLE COMPONENTS Current Current Proposed Proposed Cost Action Component Name Component Name Cost (US$M) (US$M) Component 1. Improvements in Service Delivery to Citizens, Businesses and Government Component 2. Strengthening of Cross-Cutting Public Sector Management Systems and Platforms Component 3. Enabling Technology and Reform Management (Includes Project Implementation Unit) Component 1. Improvements in Service Delivery to Citizens, Businesses and Government Component 2. Strengthening of Cross-Cutting Public Sector Management Systems and Platforms The World Bank Modernization and Innovation for Better Public Services in Argentina (P157136) Component 3. Enabling Technology and Reform Management (Includes Project Implementation Unit) TOTAL 0.00 0.00 OPS_DETAILEDCHANGES_REALLOCATION _TABLE REALLOCATION BETWEEN DISBURSEMENT CATEGORIES Financing % Current Allocation Actuals + Committed Proposed Allocation (Type Total) Current Proposed IBRD-87100-001 | Currency: USD Current Expenditure Category: Underl Exp P 1.1a, 1.1b.ii, 1.1c, 1.2c.ii, 2.2, 2.3d & iLap Category Sequence No: 1 3.2a 20,000,000.00 18,250,000.00 38,000,000.00 100.00 100.00 Current Expenditure Category: GO,CW,N-CS,CS,TRG,WKP &OP P 1.1b iLap Category Sequence No: 2 except1.1b.ii, 1.1d, 1.2 except1.2c.ii, 2.1, 2.3 except2.3d, 2.4, 3.1, 3.2b, 3.2c, 3.3 59,800,000.00 27,278,930.47 41,800,000.00 100.00 100.00 iLap Category Sequence No: 4 Current Expenditure Category: Interest rate CAP/COLLAR premium 0.00 0.00 0.00 Total 79,800,000.00 45,528,930.47 79,800,000.00 OPS_DETAILEDCHANGES_DISBURSEMENT_TABLE DISBURSEMENT ESTIMATES Change in Disbursement Estimates Yes Year Current Proposed 2017 18,999,999.99 0.00 2018 19,489,999.92 19,360,295.00 2019 22,830,000.00 19,439,705.00 2020 16,680,000.00 16,975,000.00 The World Bank Modernization and Innovation for Better Public Services in Argentina (P157136) 2021 2,000,000.09 24,225,000.00 2022 0.00 0.00 2023 0.00 0.00 OPS_DETAILEDCHANGES_SORT_TABLE SYSTEMATIC OPERATIONS RISK-RATING TOOL (SORT) Risk Category Rating at Approval Current Rating Political and Governance  Moderate  High Macroeconomic  Moderate  High Sector Strategies and Policies  Substantial  Substantial Technical Design of Project or Program  Substantial  Substantial Institutional Capacity for Implementation and  Substantial  Substantial Sustainability Fiduciary  Moderate  Moderate Environment and Social  Low  Low Stakeholders  Substantial  Substantial Other Overall  Substantial  Substantial . The World Bank Modernization and Innovation for Better Public Services in Argentina (P157136) . Results framework COUNTRY: Argentina Modernization and Innovation for Better Public Services in Argentina Project Development Objectives(s) To improve the quality and accessibility of selected government administrative services and enhance transparency in the public administration. Project Development Objective Indicators by Objectives/ Outcomes RESULT_FRAME_TBL_PDO Indicator Name DLI Baseline Intermediate Targets End Target 1 2 3 4 To improve the quality and accessibility of selected government administrative services and enhance Number of users registered on the argentina.gob.ar portal 500.00 500.00 350,000.00 850,000.00 1,500,000.00 1,500,000.00 with a Citizen Digital Profile (Number) Improved performance in the Open Data Barometer Index 23.78 23.78 28.00 38.00 46.00 46.00 (Number) Cumulative number of government internal administrative processes mapped and modelled with DLI 4 0.00 30.00 130.00 540.00 650.00 650.00 eDMS across national line ministries and other entities of the national public administration (DLI) (Number) The World Bank Modernization and Innovation for Better Public Services in Argentina (P157136) RESULT_FRAME_TBL_PDO Indicator Name DLI Baseline Intermediate Targets End Target 1 2 3 4 Action: This indicator has been Revised PDO Table SPACE Intermediate Results Indicators by Components RESULT_FRAME_TBL_IO Indicator Name DLI Baseline Intermediate Targets End Target 1 2 3 4 Component 1. Improvements in Service Delivery to Citizens, Businesses and Government 1.1.1: Number of key citizen DLI 1, centric processes designed and 0.00 0.00 8.00 14.00 22.00 22.00 1, 8 available online (DLI) (Number) 1.1.2: Percentage of transactions related to SMEs 1.00 1.00 10.00 30.00 50.00 90.00 carried out through electronic means (Percentage) 1.1.3: Number of regional government offices within the DLI 2, Province of Buenos Aires with 0.00 0.00 30.00 80.00 137.00 137.00 2 an operating electronic Civil Registry (DLI) (Number) 1.1.4. Percentage of users who evaluate Argentina.gob.ar's 58.50 63.00 68.00 68.00 services satisfactorily (Text) Action: This indicator has been Revised The World Bank Modernization and Innovation for Better Public Services in Argentina (P157136) RESULT_FRAME_TBL_IO Indicator Name DLI Baseline Intermediate Targets End Target 1 2 3 4 1.1.5. Percentage of users who evaluate TAD government 76.00 79.00 82.00 82.00 services satisfactorily (Text) Action: This indicator is New 1.1.6. Number of administrative processes generated through the virtual services platform (Trámites a DLI 5 3,255,240.00 3,955,240.00 5,635,240.00 5,635,240.00 Distancia) referred to in Part 1.1(a) (iv) of the Project (DLI) (Number) Action: This indicator is New 1.2.1: Number of framework agreements processed through 0.00 0.00 5.00 5.00 5.00 15.00 the e-procurement portal (Number) 1.2.2: Proportion of public employees required to submit asset declarations whose 0.00 0.00 0.00 40.00 70.00 70.00 declarations are electronically captured, processed, and analyzed (Percentage) Action: This indicator has been Revised 1.2.3: Number of pilot Province 0.00 0.00 2.00 4.00 7.00 7.00 governments with back-office The World Bank Modernization and Innovation for Better Public Services in Argentina (P157136) RESULT_FRAME_TBL_IO Indicator Name DLI Baseline Intermediate Targets End Target 1 2 3 4 processes supported by eDMS (Number) 1.2.4: Number of participating municipalities with new digital DLI 6 190.00 190.00 360.00 1,080.00 1,240.00 1,240.00 public services (DLI) (Number) Action: This indicator has been Revised 1.2.5: Number of new digital access points (puntos digitales) 0.00 40.00 110.00 110.00 implemented (Number) Action: This indicator is New Component 2. Strengthening of Cross-Cutting Public Sector Management Systems and Platforms 2.1.1: Number of Results-Based Management Dashboards 0.00 0.00 4.00 7.00 10.00 10.00 implemented at the ministry level (Number) 2.2.1: Percentage of purchasing units within the national public administration DLI 3, 11.00 11.00 50.00 75.00 95.00 95.00 operating with the new 3 electronic procurement system (DLI) (Percentage) 2.3.1: Percentage of ministerial units (reparticiones) using the 0.00 0.00 34.00 58.00 79.00 79.00 management system for HR Management SARHA or The World Bank Modernization and Innovation for Better Public Services in Argentina (P157136) RESULT_FRAME_TBL_IO Indicator Name DLI Baseline Intermediate Targets End Target 1 2 3 4 equivalent validated system (Percentage) 2.3.2: Number of employees within the Borrower's national public administration passing at least one INAP class related DLI 7 0.00 10,000.00 40,000.00 40,000.00 to the Borrower's modernization program, as listed in the Ops Manual (DLI) (Number) Action: This indicator is New 2.3.3: Number of competitive employment processes for positions within the top 80.00 120.00 450.00 450.00 management cadre (Alta Dirección Pública) (Number) Action: This indicator is New 2.4.1: Number of datasets in open formats published in the 200.00 200.00 400.00 600.00 800.00 800.00 national open data portal in a timely manner (Number) 2.4.2: Ratio of innovation projects implemented of total 0.00 0.00 0.00 3.00 5.00 5.00 project proposed (Percentage) Action: This indicator has been Marked for Deletion Component 3. Enabling Technology and Reform Management (Includes Project Implementation Unit) The World Bank Modernization and Innovation for Better Public Services in Argentina (P157136) RESULT_FRAME_TBL_IO Indicator Name DLI Baseline Intermediate Targets End Target 1 2 3 4 3.3.1: Increased government IT processing and data storage 1 rack installed 1 rack installed 2 racks installed 2 racks installed 3 racks installed 3 racks installed capacity (Text) IO Table SPACE Disbursement Linked Indicators Matrix DLI IN00743325 ACTION DLI 1 1.1.1: Number of key citizen centric processes designed and available online (DLI) Type of DLI Scalability Unit of Measure Total Allocated Amount (USD) As % of Total Financing Amount Output Yes Number 5.00 20.00 Period Value Allocated Amount (USD) Formula Baseline 0.00 June 2021 22.00 5.00 Action: This DLI has been Revised. See below. DLI IN00745908 ACTION DLI 1 1.1.1: Number of key citizen centric processes designed and available online (DLI) Type of DLI Scalability Unit of Measure Total Allocated Amount (USD) As % of Total Financing Amount Output No Number 5,000,000.00 65.00 Period Value Allocated Amount (USD) Formula Baseline 0.00 The World Bank Modernization and Innovation for Better Public Services in Argentina (P157136) June 2021 22.00 5,000,000.00 DLI IN00743329 ACTION 1.1.3: Number of regional government offices within the Province of Buenos Aires with an operating electronic Civil DLI 2 Registry (DLI) Type of DLI Scalability Unit of Measure Total Allocated Amount (USD) As % of Total Financing Amount Output Yes Number 3.00 16.67 Period Value Allocated Amount (USD) Formula Baseline 0.00 June 2021 137.00 3.00 Action: This DLI has been Revised. See below. DLI IN00745909 ACTION 1.1.3: Number of regional government offices within the Province of Buenos Aires with an operating electronic Civil Registry DLI 2 (DLI) Type of DLI Scalability Unit of Measure Total Allocated Amount (USD) As % of Total Financing Amount Output No Number 3,000,000.00 100.00 Period Value Allocated Amount (USD) Formula Baseline 0.00 June 2021 137.00 3,000,000.00 The World Bank Modernization and Innovation for Better Public Services in Argentina (P157136) DLI IN00743333 ACTION 2.2.1: Percentage of purchasing units within the national public administration operating with the new electronic DLI 3 procurement system (DLI) Type of DLI Scalability Unit of Measure Total Allocated Amount (USD) As % of Total Financing Amount Output Yes Percentage 3.00 0.00 Period Value Allocated Amount (USD) Formula Baseline 11.00 June 2021 95.00 3.00 Action: This DLI has been Revised. See below. DLI IN00745910 ACTION 2.2.1: Percentage of purchasing units within the national public administration operating with the new electronic DLI 3 procurement system (DLI) Type of DLI Scalability Unit of Measure Total Allocated Amount (USD) As % of Total Financing Amount Output No Percentage 3,000,000.00 100.00 Period Value Allocated Amount (USD) Formula Baseline 11.00 June 2021 95.00 3,000,000.00 The World Bank Modernization and Innovation for Better Public Services in Argentina (P157136) DLI IN00744116 ACTION Cumulative number of government internal administrative processes mapped and modelled with eDMS across national line DLI 4 ministries and other entities of the national public administration (DLI) Type of DLI Scalability Unit of Measure Total Allocated Amount (USD) As % of Total Financing Amount Output No Number 12,000,000.00 75.00 Period Value Allocated Amount (USD) Formula Baseline 0.00 June 2021 650.00 12,000,000.00 Action: This DLI is New DLI IN00744117 ACTION 1.1.6. Number of administrative processes generated through the virtual services platform (Trámites a Distancia) referred DLI 5 to in Part 1.1(a) (iv) of the Project (DLI) Type of DLI Scalability Unit of Measure Total Allocated Amount (USD) As % of Total Financing Amount Output No Number 4,000,000.00 0.00 Period Value Allocated Amount (USD) Formula Baseline 3,255,240.00 June 2021 5,635,240.00 4,000,000.00 Action: This DLI is New The World Bank Modernization and Innovation for Better Public Services in Argentina (P157136) DLI IN00744118 ACTION DLI 6 1.2.4: Number of participating municipalities with new digital public services (DLI) Type of DLI Scalability Unit of Measure Total Allocated Amount (USD) As % of Total Financing Amount Output No Number 3,000,000.00 0.00 Period Value Allocated Amount (USD) Formula Baseline 190.00 June 2021 1,240.00 3,000,000.00 Action: This DLI is New DLI IN00744119 ACTION 2.3.2: Number of employees within the Borrower's national public administration passing at least one INAP class related to DLI 7 the Borrower's modernization program, as listed in the Ops Manual (DLI) Type of DLI Scalability Unit of Measure Total Allocated Amount (USD) As % of Total Financing Amount Output No Number 8,000,000.00 0.00 Period Value Allocated Amount (USD) Formula Baseline 0.00 June 2021 40,000.00 8,000,000.00 Action: This DLI is New The World Bank Modernization and Innovation for Better Public Services in Argentina (P157136) DLI IN00743336 ACTION DLI 8 1.1.1: Number of key citizen centric processes designed and available online (DLI) Type of DLI Scalability Unit of Measure Total Allocated Amount (USD) As % of Total Financing Amount Output Yes Number 8.00 0.00 Period Value Allocated Amount (USD) Formula Baseline 0.00 June 2021 8.00 8.00 Rationale: Action: This DLI has been Repeated indicator Marked for Deletion Verification Protocol Table: Disbursement Linked Indicators DLI_TBL_VERIFICATION DLI 1 1.1.1: Number of key citizen centric processes designed and available online (DLI) The indicator measures the availability of and access to electronic services to citizens. 29 key services are prioritized, listed Description in the Operations Manual. Targets are cumulative. Data source/ Agency Verification Entity Procedure DLI_TBL_VERIFICATION DLI 1 1.1.1: Number of key citizen centric processes designed and available online (DLI) The indicator measures the availability of and access to electronic services to citizens. 29 key services are prioritized, listed Description in the Operations Manual. Targets are cumulative. The World Bank Modernization and Innovation for Better Public Services in Argentina (P157136) Service reports from the Citizen Digital Profile and TAD, Secretariat of Government Modernization Data source/ Agency Verification Entity Procedure DLI_TBL_VERIFICATION 1.1.3: Number of regional government offices within the Province of Buenos Aires with an operating electronic Civil DLI 2 Registry (DLI) This indicator measures the implementation of the Electronic Civil Registry system for improved information integrity and ease of access to information for citizens. An integrated database for all Civil Registry delegations will be implemented, Description facilitating digitalization of registries, decentralization of information, and interoperability between local agencies. Targets are cumulative. Data source/ Agency Verification Entity Procedure DLI_TBL_VERIFICATION 1.1.3: Number of regional government offices within the Province of Buenos Aires with an operating electronic Civil DLI 2 Registry (DLI) This indicator measures the implementation of the Electronic Civil Registry system for improved information integrity and ease of access to information for citizens. An integrated database for all Civil Registry delegations will be implemented, Description facilitating digitalization of registries, decentralization of information, and interoperability between local agencies. Targets are cumulative. Reports from the Administrative Modernization Secretariat, Secretariat of Government Modernization, Chief of Cabinets Data source/ Agency Office Verification Entity Procedure The World Bank Modernization and Innovation for Better Public Services in Argentina (P157136) DLI_TBL_VERIFICATION 2.2.1: Percentage of purchasing units within the national public administration operating with the new electronic DLI 3 procurement system (DLI) This indicator measures availability and access to the electronic procurement system, directed to improve transparency and Description efficiency in public procurement, and information security. Percentage is calculated over a total of 98 purchasing units. Data source/ Agency Verification Entity Procedure DLI_TBL_VERIFICATION 2.2.1: Percentage of purchasing units within the national public administration operating with the new electronic DLI 3 procurement system (DLI) This indicator measures availability and access to the electronic procurement system, directed to improve transparency and Description efficiency in public procurement, and information security. Percentage is calculated over a total of 98 purchasing units. Comprar.ar system reports, National Procurement Agency, Secretariat of Government Modernization Data source/ Agency Verification Entity Procedure DLI_TBL_VERIFICATION Cumulative number of government internal administrative processes mapped and modelled with eDMS across national DLI 4 line ministries and other entities of the national public administration (DLI) This indicator measures the number of key government processes mapped and modelled with eDMS. Key processes Description prioritized are listed in the Operations Manual. Targets are cumulative. BI reports on eDMS. Administrative Modernization Secretariat, Secretary of Government Modernization, Chief of Cabinets Data source/ Agency Office. Verification Entity Procedure The World Bank Modernization and Innovation for Better Public Services in Argentina (P157136) DLI_TBL_VERIFICATION 1.1.6. Number of administrative processes generated through the virtual services platform (Trámites a Distancia) referred DLI 5 to in Part 1.1(a) (iv) of the Project (DLI) Description Business Intelligence Reports on TAD Platform, Secretariat of Government Modernization Data source/ Agency Verification Entity Procedure DLI_TBL_VERIFICATION DLI 6 1.2.4: Number of participating municipalities with new digital public services (DLI) This indicator measures the implementation of digital services in municipalities for improved access to services at the local Description level. Targets are cumulative Reports from the Digital Country Undersecretariat Data source/ Agency Verification Entity Procedure DLI_TBL_VERIFICATION 2.3.2: Number of employees within the Borrower's national public administration passing at least one INAP class related to DLI 7 the Borrower's modernization program, as listed in the Ops Manual (DLI) Description Targets are cumulative. INAP reports, Secretariat of Government Modernization Data source/ Agency Verification Entity Procedure DLI_TBL_VERIFICATION DLI 8 1.1.1: Number of key citizen centric processes designed and available online (DLI) The indicator measures the availability of and access to electronic services to citizens. 29 key services are prioritized, listed Description in the Operations Manual. Targets are cumulative. Data source/ Agency The World Bank Modernization and Innovation for Better Public Services in Argentina (P157136) Verification Entity Procedure . The World Bank Modernization and Innovation for Better Public Services in Argentina (P157136)