The World Bank Implementation Status & Results Report Rwanda Public Finance Management Reform Project (P164807) Rwanda Public Finance Management Reform Project (P164807) AFRICA | Rwanda | Governance Global Practice | IBRD/IDA | Investment Project Financing | FY 2019 | Seq No: 3 | ARCHIVED on 27-Jan-2020 | ISR40432 | Implementing Agencies: Ministry of Finance and Economic Planning, Republic of Rwanda Key Dates Key Project Dates Bank Approval Date: 23-Oct-2018 Effectiveness Date: 21-Dec-2018 Planned Mid Term Review Date: 26-Feb-2021 Actual Mid-Term Review Date: Original Closing Date: 28-Feb-2023 Revised Closing Date: 28-Feb-2023 pdoTable Project Development Objectives Project Development Objective (from Project Appraisal Document) To improve budget reliability and control of funds for service delivery, enhance budget transparency and increase professionalization of the public finance officials. Has the Project Development Objective been changed since Board Approval of the Project Objective? No Components Table Name PFM IT Systems Roll-Out:(Cost $5.00 M) Accounting and Financial Reporting:(Cost $3.45 M) Performance-Based Budgeting and Medium-Term Budgeting:(Cost $0.70 M) Professionalization of PFM Staff – PFM Capacity Development:(Cost $10.85 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO Satisfactory Satisfactory Overall Implementation Progress (IP) Satisfactory Satisfactory Overall Risk Rating Moderate Moderate Implementation Status and Key Decisions The project was declared effective on December 21, 2018. The World Bank conducted a project launch mission in December 2018 and the first implementation support mission in July 2019. The next mission is planned for February 2020. In the interim there has been close implementation support and project monitoring by the Bank team. Overall project implementation progress is satisfactory. Servers and licenses required to roll out the IFMIS system to service delivery units, have been purchased. A review of the IFMIS architecture to support the roll out has also commenced using project funding. MINECOFIN is working closely with other developed partners to ensure that the other elements required for a successful roll out of the system, such as training, is being carried out. Introduction of International Public Sector Accounting Standards is underway. An IPSAS implementation unit supported by consultants and an IPSAS steering committee has been set up. New reporting standards for FY 19/20 have been developed and training awareness programs are ongoing for preparers and users of these statements. 1/27/2020 Page 1 of 6 The World Bank Implementation Status & Results Report Rwanda Public Finance Management Reform Project (P164807) The first cohort of public sector officials were given professional training on PFM/accountancy under the project. Government has embarked on performance based budgeting on a pilot basis with technical assistance from IMF. To augment this support, project funds will be used to hire technical assistance. Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance Moderate Moderate Moderate Macroeconomic Moderate Moderate Moderate Sector Strategies and Policies Moderate Moderate Moderate Technical Design of Project or Program Moderate Moderate Moderate Institutional Capacity for Implementation and Substantial Moderate Moderate Sustainability Fiduciary Moderate Moderate Moderate Environment and Social Low Low Low Stakeholders Moderate Moderate Moderate Other -- -- -- Overall Moderate Moderate Moderate Results PDO Indicators by Objectives / Outcomes Improved reliability of budgeting IN00799407 ►Improved reliability of budgeting (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 20.00 20.00 20.00 10.00 Date 30-Jun-2017 25-Jul-2019 24-Jan-2020 30-Jun-2022 The indicator assesses deviation between MTEF (t+1) and annual budget for MINEDUC, MININFRA, MINISANTE. The sectors were chosen based on the importance of funding education and health as well Comments: as ensuring completion of capital infrastructure projects. The indicator is assessed as a percentage difference between the MTEF (t+1) estimate for a line ministry and subsequent annual budget allocation for the same line ministry. 1/27/2020 Page 2 of 6 The World Bank Implementation Status & Results Report Rwanda Public Finance Management Reform Project (P164807) Improved control of funds for service delivery IN00799408 ►Share of districts expenditure arrears to consolidated district budget (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 10.00 10.00 10.00 6.00 Date 30-Jun-2017 25-Jul-2019 31-Jan-2020 30-Jun-2022 The indicator measures the control of funds for service delivery as the level of expenditure arrears at the Comments: local level. As most of service delivery occurs at the local level, high level of expenditure arrears may undermine timely delivery of services and drive up the cost of service provision. Improved budget transparency and citizens engagement IN00799409 ►Improved budget transparency and citizens engagement (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Citizens budget is published annually and includes information on budget execution, the medium term financial Citizens budget does program, analysis of Citizens budget does not Citizens budget does not not contain links links between contain links between contain links between between financing and financing and results financing and results, financing and results, results, does not for the three pilot Value does not incorporate does not incorporate incorporate citizens' ministries (MINEDIC, citizens' feedback and citizens' feedback and feedback and MININFRA, published in most of the published in most of the published in most of MINSANTE), and years years the years citizens’ feedback on pilot ministries programs along with suggested actions to address citizens’ feedback. Date 30-Jun-2018 25-Jul-2019 24-Jan-2020 30-Jun-2022 The indicator measures improvements in transparency and citizens feedback in the annual citizens budget. The citizen's feedback will be incorporated as a part of the gradual implementation of the performance based budgeting. Target result is citizens budget published annually, which includes Comments: information on budget execution, the medium term financial program, analysis of links between financing and results for the three pilot ministries (MINEDIC, MININFRA, MINSANTE), and citizens’ feedback on pilot ministries’ programs along with suggested actions of the Government to address citizens’ feedback on program performance. Increased professionalization of public finance officials IN00799410 ►Number of public finance staff with a level of professional qualification achieved (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 655.00 655.00 655.00 1,800.00 1/27/2020 Page 3 of 6 The World Bank Implementation Status & Results Report Rwanda Public Finance Management Reform Project (P164807) Date 30-Jun-2018 25-Jul-2019 24-Jan-2020 30-Jun-2022 The indicator measures the professionalization of public finance officials as a number of public officials Comments: with PFM qualifications. Intermediate Results Indicators by Components PFM IT Systems Roll-Out IN00799416 ►FMIS coverage of performance information (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 90.00 Date 30-Jun-2018 25-Jul-2019 24-Jan-2020 30-Jun-2022 The indicator measures capacity of the IFMIS to capture non-financial performance information for budget Comments: programs including monitoring progress in achieving results indicators. IN00799419 ►FMIS coverage of education institutions (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 6.00 90.00 Date 30-Jun-2018 25-Jul-2019 24-Jan-2020 30-Jun-2022 The indicator measures coverage of all educational institutions by the IFMIS in terms of payments and Comments: committments. Accounting and Financial Reporting IN00799417 ►Number of approved IPSAS standards (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 7.00 Date 30-Jun-2018 25-Jul-2019 24-Jan-2020 30-Jun-2022 The indicator measures number of approved IPSAS compliant standards as part of the accrual accounting Comments: reform implementation. Performance Based-Budgeting and Medium-Term Budgeting IN00799418 ►Improved program budgeting methodology in use (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Program budgeting Program budgeting Program budgeting Program budgeting Value methodology has methodology has methodology has been methodology improved 1/27/2020 Page 4 of 6 The World Bank Implementation Status & Results Report Rwanda Public Finance Management Reform Project (P164807) weaknesses in weaknesses in drafted to connect to connect connecting financial and connecting financial and financial and performance and performance information performance information performance financial information by information for program. budgeting and reporting purposes Date 30-Jun-2018 25-Jul-2019 24-Jan-2020 30-Jun-2022 The indicator is qualitative and measures improvements in program budgeting to capture the performance Comments: information and linking financial and non-financial performance. Professionalization of PFM Staff – PFM Capacity Development IN00799420 ►Number of public finance officials who recieved training or are in training under the project (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 1,060.00 5,000.00 Date 30-Jun-2018 25-Jul-2019 24-Jan-2020 30-Jun-2022 The indicator measures progress in training program. As opposed to the PDO level indicator it focuses on Comments: the staff in training rather than staff who successfully completed training with the PFM qualification. IN00799421 Number of female trained qualified accountants (Number, Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 2,000.00 Date 30-Jun-2018 25-Jul-2019 25-Jul-2019 30-Jun-2022 Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P164807 IDA-63290 Effective USD 20.00 20.00 0.00 3.67 16.01 19% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P164807 IDA-63290 Effective 23-Oct-2018 05-Nov-2018 21-Dec-2018 28-Feb-2023 28-Feb-2023 Cumulative Disbursements 1/27/2020 Page 5 of 6 The World Bank Implementation Status & Results Report Rwanda Public Finance Management Reform Project (P164807) Restructuring History There has been no restructuring to date. Related Project(s) There are no related projects. 1/27/2020 Page 6 of 6