The World Bank Implementation Status & Results Report BELARUS PUBLIC FINANCIAL MANAGEMENT MODERNIZATION PROJECT (P146997) BELARUS PUBLIC FINANCIAL MANAGEMENT MODERNIZATION PROJECT (P146997) EUROPE AND CENTRAL ASIA | Belarus | Governance Global Practice | IBRD/IDA | Investment Project Financing | FY 2016 | Seq No: 8 | ARCHIVED on 19-Sep-2019 | ISR38213 | Implementing Agencies: Ministry of Finance, Data-Processing Center Key Dates Key Project Dates Bank Approval Date: 28-Mar-2016 Effectiveness Date: 27-Jul-2016 Planned Mid Term Review Date: 13-Jul-2018 Actual Mid-Term Review Date: 13-Jul-2018 Original Closing Date: 30-Sep-2019 Revised Closing Date: 30-Jul-2021 pdoTable Project Development Objectives Project Development Objective (from Project Appraisal Document) To improve policy alignment of the budget, consolidate cash balances, improve budget transparency and lay foundations for implementation of an Integrated Financial Management Information System (FMIS) Has the Project Development Objective been changed since Board Approval of the Project Objective? No Components Table Name Budget management regulations and procedures:(Cost $3.06 M) PFM IT solutions:(Cost $5.73 M) Change management:(Cost $1.18 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 Substantial Substantial Implementation Status and Key Decisions The Loan Agreement between the World Bank and Belarus was signed on April 1, 2016, to support the implementation of the Public Financial Management Modernization Project. The US$10 million loan is aimed to improve policy alignment of the budget, consolidate cash balances, improve budget transparency and lay foundations for the implementation of an Integrated Financial Management Information System (FMIS). Three out of the four indicators are expected to be achieved by the end of September (the original closing date of the loan). During 2018, the authorities had taken important decisions on the high-level design of the future FMIS, the structure of a Unified Chart of Accounts and the Concept for the Public Sector Accounting and Reporting Reform. The project’s closing date has been recently extended by 22 months – from September 30, 2019 to July 30, 2021, which will allow for achievement of all four Project Development Objectives (PDO) indicators by the new closing date. Currently, 9/19/2019 Page 1 of 8 The World Bank Implementation Status & Results Report BELARUS PUBLIC FINANCIAL MANAGEMENT MODERNIZATION PROJECT (P146997) the MoF and the World Bank are finalizing the revision of the terms of reference for the second tender for consultancy to prepare the FMIS design and bidding documents, which would be re-advertised by the end of September 2019. Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance Moderate Moderate Moderate Macroeconomic Substantial Substantial Substantial Sector Strategies and Policies Substantial Moderate Moderate Technical Design of Project or Program Moderate Moderate Moderate Institutional Capacity for Implementation and Sustainability Substantial Substantial Substantial Fiduciary Moderate Substantial Substantial Environment and Social Low Low Low Stakeholders Moderate Moderate Moderate Other -- -- -- Overall Substantial Substantial Substantial Results PDO Indicators by Objectives / Outcomes Improve policy alignment of the budget IN00733682 ►Improved alignment of policies and budgets (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 16.00 59.90 59.90 50.00 Date 01-Jan-2015 31-Dec-2018 19-Jul-2019 30-Sep-2019 The end target value is on track to be achieved. The intermediate target value for 2018 was achieved and Comments: exceeded. Consolidate cash balances IN00733683 ►Increase the level of consolidation of cash balances (by reducing balances outside of TSA) (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target 9/19/2019 Page 2 of 8 The World Bank Implementation Status & Results Report BELARUS PUBLIC FINANCIAL MANAGEMENT MODERNIZATION PROJECT (P146997) Value 11.00 7.50 7.80 7.00 Date 31-Dec-2014 31-Dec-2018 19-Jul-2019 30-Sep-2019 The indicator is on track. As of the end of 2018, the actual share of extra-budgetary spending managed Comments: outside of the TSA was 7.8%. The indicator to be measured annually. Improve budget transparency IN00733684 ►Improved budget transparency (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Citizens budget is published online on annual basis and includes information on Citizens budgets for budget execution Citizens budgets for 2018 2018 and 2019 were disaggregated at the and 2019 were developed and posted level of approved developed and posted on on the MoF’s webpage budget;information on the MoF’s webpage in in 2017 and 2018. medium term financial Citizens budget has not 2017 and 2018. Oblast Value Oblast level program; and analysis been prepared. level subnational subnational of links between governments publish governments publish financing and results. their versions of citizens their versions of Citizens’ questions and budgets starting with citizens budgets feedback are 2018. starting with 2018. published on the website along with responses of the MoF to frequently asked questions. Date 31-Dec-2015 31-Dec-2018 19-Jul-2019 30-Sep-2019 The end target value is on track and expected to be exceeded. Citizens budgets for 2018 and 2019 were developed and posted on the MoF’s webpage in 2017 and 2018; oblast level subnational governments started publishing their versions of citizens budgets in 2018. The fiscal data portal went live in January 2018 providing the general public with access to interactive fiscal data on budget execution. Exceeding the requirements of the indicator, the MoF produces and publishes quarterly bulletins on the execution of the consolidated budget, as well as republican and local budgets. Work on improving citizens budget Comments: presentation and functionality of the fiscal data portal continues (including the work on the version for smartphones/tablets, the English versions of the interactive map and bulletins, and adding new time series). In line with requirements of the Budget Code information on the performance of individual state programs is published by the line ministries, consolidated information is available on the Ministry of Economy’s website (implemented without support from the project). Lay foundations for implementation of FMIS IN00733685 ►Foundations for FMIS (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target The FMIS High Level The FMIS High Level Bidding documents for Design was approved by Design was approved FMIS are prepared Future business the MoF on June 26, by the MoF on June based on approved processes to be Value 2018. Tender for the 26, 2018. Tender for revised business supported by IFMIS are detailed FMIS design, the detailed FMIS processes and Unified not fully defined. including the design, including the Chart of Accounts and development of the new development of the cover the following 9/19/2019 Page 3 of 8 The World Bank Implementation Status & Results Report BELARUS PUBLIC FINANCIAL MANAGEMENT MODERNIZATION PROJECT (P146997) business processes and new business functionality including bidding documents, failed processes and bidding planning,execution, and was cancelled in documents, was financial control, March 2019. The unsuccessful and was accounting and indicator is achievable canceled in March reporting, debt only with the project 2019. The indicator is management. closing date extension. achievable only with the project closing date extension. Date 31-Dec-2015 22-Apr-2019 19-Jul-2019 30-Jul-2021 The timeline for achieving the indicator had been extended to July 2021. The tender for the detailed FMIS design, including the development of the new business processes and bidding documents, was Comments: unsuccessful and was canceled in March 2019. The tender should be re-advertised by the end of September 2019. Intermediate Results Indicators by Components Budget management regulations and procedures IN00733701 ►Conceptual framework for public sector accounting reform (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target The Concept for The Concept for reforming national reforming national public public accounting and accounting and reporting reporting and initial Public sector and initial plan for its plan for its accounting reform Public sector accounting implementation were implementation were implementation reform is defined as a approved by the approved by the launched by finalizing Value priority in PFM Strategy, Government on February Government on development of first 3- but the reform direction is 9, 2019. More detailed February 9, 2019. A 4 accounting not defined. implementation plan is more detailed standards compliant expected to be approved implementation plan is with IPSAS by the MoF in the near expected to be time. approved by the MoF in the near time. Date 31-Dec-2015 31-Dec-2018 19-Jul-2019 30-Sep-2020 The timeline for achieving the indicator had been extended to September 2020. The detailed implementation plan for the national public accounting and reporting reform was prepared in Q2 2019 and is pending approval by the MoF. The State Treasury of the MoF had prepared drafts of the five first public Comments: accounting standards and in Q2 2019, external review of these draft standards and their compliance with IPSAS will be performed as part of the second phase of the public accounting consultancy contract. IN00733703 ►Program budgeting methodology (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Program budgeting methodology is Program budgeting approved, allows Work on revising the methodology does not Work on revising the looking at different Value methodology is clearly link objectives methodology is ongoing. social dimensions, ongoing. and resources. including gender, in selected relevant programs. 9/19/2019 Page 4 of 8 The World Bank Implementation Status & Results Report BELARUS PUBLIC FINANCIAL MANAGEMENT MODERNIZATION PROJECT (P146997) Date 31-Dec-2015 31-Dec-2018 19-Jul-2019 30-Sep-2019 Activities are now on track, following initial delays. The procurement process took longer than expected, therefore the targets for 2017 and 2018 had not been met. Consultancy started in April 2018 and it is expected that it would be fully completed by the end of August 2019. Draft amendments to the methodology for development, financing, and execution of state programs were prepared by the MoE Comments: independently of the project and are undergoing intergovernmental clearances. Further improvements of the program budgeting methodology are expected following the results of the ongoing consultancy and will mostly be introduced only in the new cycle of state programs which starts in 2021. PFM IT solutions IN00733702 ►Integration of budget and financial reporting based on international standards (Text, Custom) (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Unified Chart of Methodological basis for The structure of the The structure of the Accounts integrated public sector financial public sector Unified public sector Unified with the budget and budget reporting has Chart of Accounts Chart of Accounts classification and Value not been integrated and (UCoA) was approved by (UCoA) was approved guidelines for its deviates from applicable the MoF on July 30, by the MoF on July 30, application are international standards. 2018. 2018. approved. Date 31-Dec-2015 31-Dec-2018 19-Jul-2019 30-Sep-2019 Activities are now on track, following initial delays. The MoF approved the Structure of the Unified Chart of Accounts integrated with the budget classification on July 31, 2018. Ongoing consultancy on the public accounting and reporting contributed to the development of the detailed UCoA segment structures, Comments: mapping tables and application guidelines, which are expected to be finalized and approved by the MoF by September 2019 for further piloting. IN00733704 ►Modernization of business processes (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target The tender for The tender for consultancy expected consultancy expected to Future business to support the support the development processes to be development of the Revised business Value of the business supported by FMIS are business processes processes approved processes was not fully defined. was unsuccessful, new unsuccessful, new tender tender needs to be needs to be organized. organized. Date 31-Dec-2015 22-Apr-2019 19-Jul-2019 30-Nov-2020 The timeline for achieving the indicator had been extended until November 30, 2020. The tender for the consultancy to support the development of the new business processes was unsuccessful. The Borrower Comments: is revising the terms of reference to re-advertise the tender. Meanwhile, the Borrower's staff is preparing descriptions of “as is” business processes to be used as an input for the task. IN00733705 ►Reliability and fault tolerance of the ASFS (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target The ASFS at the The ASFS at the The ASFS at the A uniform distribution republican level operates republican level operates republican level of the load on the Value at two geographically at two geographically operates at two ASFS and efficient distant sites. There is no distant sites. There is no geographically distant data processing and 9/19/2019 Page 5 of 8 The World Bank Implementation Status & Results Report BELARUS PUBLIC FINANCIAL MANAGEMENT MODERNIZATION PROJECT (P146997) full-fledged backup full-fledged backup sites. There is still no backup through system; there is a high system; there is a high full-fledged backup "Active-Active" probability of data loss in probability of data loss in system; and there is a geographically the event of an accident. the event of an accident. high probability of data distributed cluster. Domain and postal Domain and postal loss in the event of an Modern IT structures of the ASFS structures of the ASFS accident. Domain and infrastructure with are scattered. The IT are scattered. The IT postal structures of the server virtualization infrastructure at the infrastructure at the ASFS are scattered. software and Oblast level is outdated. Oblast level is outdated. The, and the IT virtualization It is not possible to It is not possible to infrastructure at the management centers deploy a fault-tolerant deploy a fault-tolerant Oblast level is is established at the cluster (FTC) allowing for cluster (FTC) allowing for outdated. republican and oblast control of computing control of computing It is not possible to levels (12 sites) resources using the new resources using the new deploy a fault-tolerant including virtual equipment equipment cluster (FTC) allowing machines control for control of center and capabilities computing resources to deploy a fault- using the new tolerant cluster (FTC) equipment. Since this is a new indicator, the current status is identical to the baseline. However, it should be noted that the development of bidding documents is ongoing, and the results will only be seen after the ICT will be procured, installed and operationalized. Date 27-May-2019 27-May-2019 19-Jul-2019 30-Jul-2021 This is a new indicator aimed at capturing the results of the acquisition of the software and hardware to be Comments: financed from the savings of the project. The development of the specifications is ongoing. IN00733706 ►ASFS centralized storage capacity (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value There is no centralized There is no centralized There is still no Centralized storage of storage of the ASFS storage of the ASFS centralized storage of databases of MoF databases for planning databases for planning the ASFS databases territorial bodies and and execution of local and execution of local for planning and local finance bodies at budgets. It is not possible budgets. It is not possible execution of local MoF is ensured to operate the ASFS to operate the ASFS budgets. It is not through high-speed segment in emergency segment in emergency possible to operate the and reliable data (abnormal) mode using (abnormal) mode using ASFS segment in storage system. The the backup equipment the backup equipment emergency (abnormal) capability to operate mode using the the ASFS in backup equipment. emergency (abnormal) Since this is a new mode using the indicator, the current backup equipment is status is identical to ensured the baseline. However, it should be noted that the development of bidding documents is ongoing, and the results will only be seen after the ICT will 9/19/2019 Page 6 of 8 The World Bank Implementation Status & Results Report BELARUS PUBLIC FINANCIAL MANAGEMENT MODERNIZATION PROJECT (P146997) be procured, installed and operationalized. Date 27-May-2019 27-May-2019 19-Jul-2019 30-Jul-2021 This is a new indicator aimed at capturing the results of the acquisition of the software and hardware to be Comments: financed from the savings of the project. The development of the specifications is ongoing. Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P146997 IBRD-86060 Effective USD 10.00 10.00 0.00 3.29 6.71 33% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P146997 IBRD-86060 Effective 28-Mar-2016 01-Apr-2016 27-Jul-2016 30-Sep-2019 30-Jul-2021 Cumulative Disbursements 9/19/2019 Page 7 of 8 The World Bank Implementation Status & Results Report BELARUS PUBLIC FINANCIAL MANAGEMENT MODERNIZATION PROJECT (P146997) Restructuring History Level 2 Approved on 19-Jul-2019 Related Project(s) There are no related projects. 9/19/2019 Page 8 of 8