The World Bank Implementation Status & Results Report Strengthening Fiscal and Financial Stability Project (P161048) Strengthening Fiscal and Financial Stability Project (P161048) EAST ASIA AND PACIFIC | Mongolia | Governance Global Practice | IBRD/IDA | Investment Project Financing | FY 2017 | Seq No: 4 | ARCHIVED on 10-Sep-2019 | ISR38401 | Implementing Agencies: Mongolia, Ministry of Finance Key Dates Key Project Dates Bank Approval Date: 09-Jun-2017 Effectiveness Date: 11-Sep-2017 Planned Mid Term Review Date: 30-Jan-2020 Actual Mid-Term Review Date: Original Closing Date: 31-Jan-2022 Revised Closing Date: 31-Jan-2022 pdoTable Project Development Objectives Project Development Objective (from Project Appraisal Document) The Project Development Objective is to contribute to the Government of Mongolia’s efforts to strengthen fiscal and financial stability and improve the quality of expenditure management. Has the Project Development Objective been changed since Board Approval of the Project Objective? No Components Table Name Component A: Strengthening Macroeconomic and Fiscal Management:(Cost $2.71 M) Component B: Improving the efficiency of Public Financial Management:(Cost $3.80 M) Component C: Enhancing Financial Sector Stability:(Cost $2.85 M) Component D: Strengthening of the Social Protection System:(Cost $2.00 M) Component E: Project Management and Monitoring:(Cost $0.64 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 Moderate Moderate Implementation Status and Key Decisions Despite delays experienced in early 2018, the project ended the fiscal year with good results including a healthy disbursement rate of around 9% of the total amount of the project which exceeded the forecast at the time of design. By February 2019, the workplan and the procurement plan (PP) for the current calendar year were approved by the State Secretary and the Steering Committee of the project, thus helping to expedite the implementation of core activities and moving towards achieving the projected disbursement rate for the second year of implementation meeting the projected disbursement rate at the time of approval of the project. This trend is expected to continue for the remaining months of 2019. Also, all the beneficiary units both at the MoF and other agencies supported by the project finalized the local and overseas training plans which are greatly 9/10/2019 Page 1 of 7 The World Bank Implementation Status & Results Report Strengthening Fiscal and Financial Stability Project (P161048) contributing to strengthen the technical capacity of all units in implementation of the project. Good progress was also reported with regards to the achievement of the intermediate result indicators (two of them are already achieved and the rest partially achieved and/or in progress). During the next supervision mission to take place before the end of the year, the team will assess the progress made towards achieving the project results which will inform the preparation of mid-term review which will be completed by end of January 2020. The current rates of the project will be maintaining until the next supervision mission where the team will assess them after meeting and discussing with the main counterparts of the project both the progress in the implementation of the WP 2019 and the one to be prepared for 2020. Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance Substantial Substantial Substantial Macroeconomic Substantial Substantial Substantial Sector Strategies and Policies Moderate Moderate Moderate Technical Design of Project or Program Low Low Low Institutional Capacity for Implementation and Sustainability Moderate Moderate Moderate Fiduciary Moderate Moderate Moderate Environment and Social Low Low Low Stakeholders Low Low Low Other Low Low Low Overall Moderate Moderate Moderate Results PDO Indicators by Objectives / Outcomes Aggregate expenditure deviation is contained within 15% and commitment controls in place IN00739227 ►Aggregate deviation of expenditures is reduced to 15% or less and commitment controls are in place. (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Aggregate expenditure Aggregate deviation is Aggregate deviation is Aggregate deviation is deviation is contained >15% and no >15% and no >15% and no Value within 15% and commitment controls in commitment controls in commitment controls commitment controls in place place in place place Date 13-Oct-2017 21-Sep-2017 21-Sep-2017 31-Jan-2022 9/10/2019 Page 2 of 7 The World Bank Implementation Status & Results Report Strengthening Fiscal and Financial Stability Project (P161048) Financial Sector Stability improved by decreasing percentage of non-performing loans. IN00739228 ►Financial sector stability improved by decreasing percentage of non-performing loans (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 12.10 7.30 7.30 10.00 Date 13-Oct-2017 31-Jul-2018 31-Jul-2018 31-Jan-2022 Aggregate poverty-targeted social welfare support going to the poorest 20% is increased. IN00739229 ►Aggregate poverty-targeted social welfare support going to the poorest 20% is increased (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 2016: 17 42.20 42.20 2022: 25.5 Date 13-Oct-2017 21-Sep-2017 21-Sep-2017 31-Jan-2022 Indicator measured in MNT (billions) Comments: Intermediate Results Indicators by Components Component A: Strengthening Macroeconomic and Fiscal Management IN00739230 ►Component A1: Fully operational comprehensive revenue forecasting model and financial model for mega-projects. (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No No No Yes Date 13-Oct-2017 26-Nov-2018 26-Nov-2018 31-Jan-2022 IN00739264 ►Component A2: Government Debt management strategy and action plan are updated and approved by MoF. (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No No No Yes Date 13-Oct-2017 26-Nov-2018 26-Nov-2018 31-Jan-2022 Component B: Improving the efficiency of Public Financial Management IN00739261 ►Component B1: GFMIS upgraded to version 7 and accounting and financial reporting functionality operationalized to support IPSAS implementation. (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Current version of the Current version of the Current version of the Financial reporting is Value GFMIS is not GFMIS is not integrated GFMIS is not integrated fully integrated into integrated and 9/10/2019 Page 3 of 7 The World Bank Implementation Status & Results Report Strengthening Fiscal and Financial Stability Project (P161048) and reporting is done in and reporting is done in reporting is done in version 7 of Free stand-along systems. stand-along systems. stand-along systems. Balance (GFMIS) Date 13-Oct-2017 26-Nov-2018 26-Nov-2018 31-Jan-2020 IN00739265 ►Component B2: Policy document on budget control and risk management is drafted and approved by MoF. (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No No No Yes Date 13-Oct-2017 26-Nov-2018 26-Nov-2018 31-Jan-2022 IN00739268 ►Component B3: Public outreach activities on proposed changes to legislation conducted. (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target 2 at the end of the Value 0.00 1.00 1.00 project life Date 13-Oct-2017 26-Nov-2018 26-Nov-2018 31-Jan-2022 In accordance with the Law on Legislation Acts, public outreach activities were organized per se, collected and analyzed the data of the public opinion poll; Consolidated report of submitted suggestions from the Comments: public opinion poll and responses regarding how they were included in the revised draft version of the package law and summarized data report regarding the outcome of the public opinion poll was prepared. IN00739270 ►Component B4:The PIM Guideline for regulating the procedures and responsibilities of PIM project strategy/planning, appraisal, selection/prioritization and budgeting developed. and endorsed by MoF. (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No No No Yes Date 13-Oct-2017 26-Nov-2018 26-Nov-2018 31-Jan-2022 Good process has been made in achieving the intermediate result indicator. The Public Investment Division at MoF has developed the first draft of the PIM regulation which sets forth the general principles for the methodology for manageing the entire PIM portfolio for both new and on-going projects (project Comments: evaluation, analysis/appraisals (new) and re-evaluation/rationalizations of on-going ones). It is expected that the regulation will be finalized in the coming months and approved by the Minister early next year. Component C: Enhancing Financial Sector Stability IN00739262 ►Component C1: Financial Sector Medium-term Development Strategy: 2017-2025 is prepared and submitted to Parliament. (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No Yes Yes Yes Date 13-Oct-2017 26-Nov-2018 26-Nov-2018 31-Jan-2022 The Ministry of Finance, the Bank of Mongolia and the Financial Regulatory Commission jointly formulated a “Financial Sector Medium-term Development Strategy: 2017–2025” national program and it was Comments: approved by the Government resolution # 299 on October 3, 2017 IN00739266 ►Component C2:DBM’s corporate governance structure is compliant with international standards. (Yes/No, Custom) 9/10/2019 Page 4 of 7 The World Bank Implementation Status & Results Report Strengthening Fiscal and Financial Stability Project (P161048) Baseline Actual (Previous) Actual (Current) End Target Value No No No Yes Date 13-Oct-2017 26-Nov-2018 26-Nov-2018 31-Jan-2022 IN00739269 ►Component C3: Laws/regulations are revised to ensure that DICOM is properly mandated, operated resourced, and governed, with proper means to reimburse insured deposits of failed banks. (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 5.00 5.00 5.00 10.00 Date 13-Oct-2017 26-Nov-2018 26-Nov-2018 31-Jan-2022 IN00739271 ►Component C4: Regulatory legislation for the non-bank financial sector prepared and submitted to Parliament. (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No No No Yes Date 13-Oct-2017 26-Nov-2018 26-Nov-2018 31-Jan-2022 IN00739272 ►Component C5 Operational macro-prudential framework designed and web-based database system operationalized. (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No No No Yes Date 13-Oct-2017 26-Nov-2018 26-Nov-2018 31-Jan-2022 Component D: Strengthening of the Social Protection System IN00739263 ►Component D1: Amendments for social insurance legislation in line with the State Policy on Pension Reform (2015-2030) are submitted to the Parliament. (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No No No Yes Date 13-Oct-2017 26-Nov-2018 26-Nov-2018 31-Jan-2022 Good progress has been made in achieving this indicator. MLSP with the support of national experts is currently reviewing package laws on social insurance in order to prepare and submit to parliament the Comments: draft amendments. IN00739267 ►Component D2: A plan for consolidation of the existing social welfare programs has been adopted by the MLSP. (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No No No Yes Date 13-Oct-2017 26-Nov-2018 26-Nov-2018 31-Oct-2020 9/10/2019 Page 5 of 7 The World Bank Implementation Status & Results Report Strengthening Fiscal and Financial Stability Project (P161048) Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P161048 IDA-60840 Effective USD 8.20 8.20 0.00 0.00 8.54 0% P161048 IDA-60850 Effective USD 3.80 3.80 0.00 3.20 0.71 82% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P161048 IDA-60840 Effective 09-Jun-2017 05-Jul-2017 11-Sep-2017 31-Jan-2022 31-Jan-2022 P161048 IDA-60850 Effective 09-Jun-2017 05-Jul-2017 11-Sep-2017 31-Jan-2022 31-Jan-2022 Cumulative Disbursements 9/10/2019 Page 6 of 7 The World Bank Implementation Status & Results Report Strengthening Fiscal and Financial Stability Project (P161048) Restructuring History There has been no restructuring to date. Related Project(s) There are no related projects. 9/10/2019 Page 7 of 7