The World Bank Report No: ISR1770 Implementation Status & Results Ethiopia Public Disclosure Copy Public Sector Capacity Building Program Support Project (P074020) Operation Name: Public Sector Capacity Building Program Support Project Project Stage: Implementation Seq.No: 10 Status: ARCHIVED Last Modified Date: 28-Dec-2010 (P074020) Country: Ethiopia Approval FY: 2004 Product Line: IBRD/IDA Region: AFRICA Lending Instrument: Specific Investment Loan Implementing Agency(ies): Ministry of Finance and Economic Development, Ministry of Civil Service Key Dates Board Approval Date 11-May-2004 Original Closing Date 07-Jul-2009 Planned Mid Term Review Date Last Archived ISR Date 13-May-2010 Effectiveness Date 22-Nov-2004 Revised Closing Date 31-Dec-2012 Actual Mid Term Review Date Project Development Objectives Project Development Objective (from Project Appraisal Document) The objective of the Public Sector Capacity Building Program (PSCAP)Support Project is to improve the scale, efficiency, and responsiveness of public service delivery at the federal, regional and local level; to empower citizens to participate more effectively in shaping their own development and to promote good governance and accountability. This overall objective will be achieved by scaling up Ethiopia's ongoing capacity building and institutional transformation efforts in six priority areas under PSCAP - (i) Civil Service Reform (ii) District-Level Decentralization (iii) Urban Management Capacity Building; (iv) Tax System Reform; (v) Justice System Reform; (vi) Information and Communications Technology. Has the Project Development Objective been changed since Board Approval of the Project? Yes No Component(s) Component Name Component Cost FEDERAL PSCAP 30.00 Public Disclosure Copy REGIONAL PSCAP 120.00 Overall Ratings Previous Rating Current Rating Progress towards achievement of PDO Satisfactory Satisfactory Overall Implementation Progress (IP) Satisfactory Satisfactory Overall Risk Rating Medium-L Implementation Status Overview The Board approved a US$50 million IDA Additional Financing in support of the Ethiopia Public Sector Capacity Building Program Support Project. The project objective, expected outcomes, implementation arrangement including procurement and financial management remains unchanged. Page 1 of 14 The World Bank Report No: ISR1770 1) Based on the Woreda and City Benchmarking Surveys, the level of access to basic public services and satisfaction of citizens on these services has improved. 80% of the Local jurisdictions are now providing basic services compared to only 25% in 2005. Household satisfaction on the agriculture extension services has increased from 82% in 2008 to 84% Public Disclosure Copy in 2010; on health facilities from 41% to 62%; and on solid waste collection from 70% to 74%. 2) Tax to GDP ratio had gone down from 12.1 in 2003/04 to 10 .6 % in 2009/10. It has increased to11% in 2010/11. 3). The proportion of people who know that Council Meetings are open to the public increased from 11% in 2008 to 33% in 2010; the proportion of people who know about the taxes and fees they are legally required to pay has increased from 60% in 2008 to 64% in 2010. Citizens who have information on the budget has increased from 13% in 2008 to 19% in 2010 and those who know about the strategic plan also increased from 17% in 2008 to 22% in 2010. 4) Although 53% of people and 48% of civil society organizations interviewed by the Woreda and City Benchmarking confirmed that they are consulted on development needs in 2010, the proportions for citizens consultation show a decline of 5% from the 2008 survey. Results Project Development Objective Indicators Indicator Baseline Current End Target Indicator Name Value Value Value Increased predictability and adequacy of financial resource flows 1) Budget variance: will use EFY96 1) The jurisdications having close 1) Reduced budget variance as benchmark in future years 2) match between the planned and Date 2) Reduced fed-regional and regional-local fiscal gaps Fiscal gap: will be measured using actual expenditure increased from EFY96 data 55% in 2005 to 63% in 2008 and to Type Unit of Measure Date 65% in 2010. Comment Custom Indicator Text 23-Nov-2004 2) Fiscal deficit in % to GDP has Comment improved from -4.4% in 04/05 to -1.3% in 2009/10 Date 29-Nov-2010 Comment Public Disclosure Copy Page 2 of 14 The World Bank Report No: ISR1770 Indicator Baseline Current End Target Public Disclosure Copy Indicator Name Value Value Value Greater inclusiveness and transparency of prioritization Principles of 1) and 2) established 1) The 2010 Woreda and City 1) Participatory budgeting and public reporting on budgets in PRSP processes and white Benchmarking Citizens Report Date 2) Involvement of civil society in planning and review processes paper on capacity building Card shows that 53% and 48% of Date citizens are consulted on the Type Unit of Measure development needs and quality of Comment 23-Nov-2004 public service respectively. Custom Indicator Text Comment However these proportions for citizens consultation show a decline of 5% and 2% from the 2008 survey. 2) 47% of the civil societies reported that they are consulted on needs and quality of public service. Date 29-Nov-2010 Comment Indicator Baseline Current End Target Indicator Name Value Value Value Enhanced revenue performance and fiscal autonomy 1) Increased transfers to regions 1)Fed-Regional transfer annual 1) Increased own revenues and unconditional transfers as a share of and woredas EFY95 to EFY96 2) increment was 21% in 08/09, 18% Date total expenditures Overall tax revenues in 2002/03 in 09/10 and 29% in 10/11 and 2) Increased tax effort (EFY95) ETB 8.2 billion woreda transfers amount to 70% of Type Unit of Measure Date regional revenues. Comment Custom Indicator Text 2) Tax to GDP ratio (tax effort) had 23-Nov-2004 gone down from 12.1% in 2003/04 Public Disclosure Copy Comment to 10.6% in 2009/ and increased back to 11% in 20010/11. Date 29-Nov-2010 Comment Page 3 of 14 The World Bank Report No: ISR1770 Indicator Baseline Current End Target Public Disclosure Copy Indicator Name Value Value Value Enhanced incentive environment (by gender) 1) Real public sector wages have Across the board civil service 1) Average civil service salary increased on avg. 2) Differentials salary increase that ranged from Date 2) Private-public wage comparison noted but require further analysis 24-73% for different grades was 3) Wage decompression ratios 3) Some decompression (to conducted in July 2007. In Type Unit of Measure beverified) addition, over 60 public offices Comment Custom Indicator have been allowed to provide Text Date different salary scales. This 23-Nov-2004 includes agricultural research Comment institutes, higher education and high schools, export-supporting offices in the Ministry of Industry, Commodity Exchange and the Federal Tax and Customs Authority. Date 29-Nov-2010 Comment Public Disclosure Copy Page 4 of 14 The World Bank Report No: ISR1770 Indicator Baseline Current End Target Public Disclosure Copy Indicator Name Value Value Value Improved quality and efficiency of operations Available in PPA and WMS for The households' satisfaction on 1) Improved access, responsiveness and cost efficiency in priority specific services the agriculture extension services Date sectors has increased from 82% in 2008 to Date 2) Reduced unit costs and processing time in priority sectors 84% in 2010; on health facilities Type Unit of Measure 23-Nov-2004 from 41% to 62%; and on solid Comment Custom Indicator Comment waste collection from 70% to 74%. Text Date 29-Nov-2010 Comment We are now moving to the core indicator to measure improvement in processing time. The current baseline as of December 2010 is 5.21 minutes for tax collection and 8.20 minutes for opening of case files in the supreme courts. The baselines are developed from asingle day transactions in the two selected services. Please note that the tax information is collected from Federal office, Tigray, Dire Dawa, Amhara,and Oromia. The court data is collected from A.A, Tigray, Dire Dawa, Amhara, Oromia and Harari. We will add the processing time in the two services from regions that didn't complete the business process Public Disclosure Copy engineering for comparison. Page 5 of 14 The World Bank Report No: ISR1770 Public Disclosure Copy Public Disclosure Copy Page 6 of 14 The World Bank Report No: ISR1770 Public Disclosure Copy Public Disclosure Copy Page 7 of 14 The World Bank Report No: ISR1770 Indicator Baseline Current End Target Public Disclosure Copy Indicator Name Value Value Value Improved transparency and accountability 1) GOE survey: increased 1. The Woreda and City 1) Reduced corruption and arbitrariness in rule enforcement incidence of Speed money Benchmarking Citizens Report Date 2) Increased access to justice (corruption). 2) Poor access to Card shows that payment outside 3) Independence of courts justice - requires baseline data 3) the legal requirement is reduced 4) Freedom of information Weak verticalindependence 4) from 4.3 in 2008 to 4.1 in 2010. Comment Type Unit of Measure Freedom of info 2) Alternative Dispute Resolution Custom Indicator (ADR) is increasingly encouraged Text Date and used. 50% of the respondents 23-Nov-2004 of the citizens report card in the Comment 2010 Woreda and City Benchmarking survey reported that social courts solve problems quite often. 3) Independence of courts is adequately recognized and protected in the Constitution and the various laws concerning the judiciary. In practice, judicial independence has improved but progress remains to be made in the understanding of and respect for the principles of judicial independence both by all judges and by the executives. 4. Access to government information has improved through: i) the establishment of institutional focal points where suggestions and complaints can be made; ii) Public Disclosure Copy increasingly opening up woreda council meetings; iii) launching web sites; and iv) posting budgets. The proportion of people who know about the taxes and fees they are legally required topayhas increased from 60% in 2008 to 64% in 2010. The proportion of people who know that council meetings are open tothe public increased from 11% in 2008 to 33% in 2010; those who has information on budgets increased from 13% in2008 to 19% in 2010; and those who know about strategic plan increased from 17% in 2008 to 22% in 2010. Page 8 of 14 Date The World Bank Report No: ISR1770 Intermediate Results Indicators Public Disclosure Copy Indicator Baseline Current End Target Indicator Name Value Value Value Legal and regulatory framework established 1) Municipal enabling legislation 1. City and municipal proclamtion completed and adopted in 4 are adopted by all regions. In Date regions 2) VAT and withholding tax addition, regularions are issued in laws passed 3) Civil Services land, finance, HR, and in relation to Type Unit of Measure Date a number of municipal services. Comment Custom Indicator Text 2. Tax and procurement laws 23-Nov-2004 adopted by all regions Comment 3.a) Civil Service Proclamation, BPR,Criminal and Family laws are enacted. 3.b) The proclamation for the assest disclosure and registration is enacted at Federal level in 2010. Date 29-Nov-2010 Comment Indicator Baseline Current End Target Indicator Name Value Value Value Restructuring and performance improvement of MABs and local PSIP modality has been adopted; BPR initiated in virtually all federal governments undertaken 11 MABs identified for PSIP and regional level institutions. This Date implementation has led to substantial and Date quantifiable service delivery Type Unit of Measure improvements. Comment 23-Nov-2004 2) value adding automations were Custom Indicator Text Comment also undertaken in the areas of Public Disclosure Copy financial management, land information systems, tax and customs administrations as well as justice administration. Date 29-Nov-2010 Comment Page 9 of 14 The World Bank Report No: ISR1770 Indicator Baseline Current End Target Public Disclosure Copy Indicator Name Value Value Value Expenditure management systems reformed and rolled out BIS and BDA roll out in 4 regions 1) Budget reform, cash completed management and procurment Date Date directives are implemented at federal and all regions and Type Unit of Measure 23-Nov-2004 woredas. Accounts reform is Comment Custom Indicator Text Comment implemented at the federal, in the biggest regions and A.A and Harari. The three developing regions implemented it at regional, zonal, and selected woredas. Somali has just initiated it at the reginal level. The BIS and BDA are rolled out to all regions and the improved automated financial managment system, namely, the integrated budget and expenditure managment information system (IBEX) is now under implementation. 2) The Woreda and City Benchmarking Survey shows that the jurisdictions that have comprensiveness in their accounting and auditing procedures increased from only 30% in 2005 to 83% in 2008 and to 85% in 2010. Date 29-Nov-2010 Public Disclosure Copy Comment Page 10 of 14 The World Bank Report No: ISR1770 Indicator Baseline Current End Target Public Disclosure Copy Indicator Name Value Value Value Personnel management systems reformed and rolled out Job grading and classification 1) The revised Federal Civil exercise underway; Results Service Proclamation was enacted Date Oriented Performance Appraisal by parliament and has been System adopted effective since February 2007. Type Unit of Measure Date 2) Implementation of balanced Comment Custom Indicator Text score-card is being scaled up to 23-Nov-2004 provide the basis for performance Comment management at the federal level and regions. 3) There was limited progress in implementing nationally consistent IT supported HR information systems. However, Tigray, SNNPR, Benishangul-Gumuz and Amhara are using IT-supported systems for managing HR information. Date 29-Nov-2010 Comment Public Disclosure Copy Page 11 of 14 The World Bank Report No: ISR1770 Indicator Baseline Current End Target Public Disclosure Copy Indicator Name Value Value Value Intergovernmental fiscal and revenue mobilization mechanisms Fiscal system based on regional 1) All regions are implementing established subsidy and woreda block grant computerized tax identification Date Date numbers (TINs). 434,551 registered by 2009. Type Unit of Measure 23-Nov-2004 2) Presumptive taxationguidelines Comment Custom Indicator Text Comment and a national profitability rate were issued for all types of small businesses. 3) The three tax and customs organizations, namely, FIRA, ECUA and the Ministry of Revenue were merged into one office (Customs and Revenue Authority) 4) Specific purposegrants for capital investments were introduced at both rural and urban local governments. Date 29-Nov-2010 Comment Indicator Baseline Current End Target Indicator Name Value Value Value Vertical accountability mechanisms (service standards) established Service standards to be developed Minimum service standards and under DLDP and UMCBP citizen charters are being Date subprograms developed. Date Date Public Disclosure Copy Type Unit of Measure Comment 23-Nov-2004 29-Nov-2010 Custom Indicator Text Comment Comment Page 12 of 14 The World Bank Report No: ISR1770 Indicator Baseline Current End Target Public Disclosure Copy Indicator Name Value Value Value Horizontal accountability mechanisms or checks and balances 1) Government white paper on 1) The framework for grassroots established woreda participation participation is adopted by all Date Date regions except Somali where it is still in a draft form. Type Unit of Measure 23-Nov-2004 2) Courtreform is rolled out to 600 Comment Custom Indicator Text Comment courts throughout the nation. 3.ICT in courts enhanced transparency Date 24-Mar-2010 Comment Indicator Baseline Current End Target Indicator Name Value Value Value Other cross cutting systems Date Date Date 23-Nov-2004 Type Unit of Measure Comment Comment Comment Custom Indicator Text Indicator Baseline Current End Target Indicator Name Value Value Value Bulk training in discrete areas Ongoing bulk training in all Continuous targeted training in key programs areas such as ICT, exp mgt, Date Date ROPE, VAT/withhold, governance package in regions and local Public Disclosure Copy Type Unit of Measure 23-Nov-2004 governments Comment Custom Indicator Text Comment Date 29-Nov-2010 Comment Data on Financial Performance (as of 06-Dec-2010) Financial Agreement(s) Key Dates Project Loan No. Status Approval Date Signing Date Effectiveness Date Closing Date P074020 IDA-38990 Effective 11-May-2004 23-Aug-2004 22-Nov-2004 31-Dec-2012 Page 13 of 14 The World Bank Report No: ISR1770 Project Loan No. Status Approval Date Signing Date Effectiveness Date Closing Date P074020 IDA-46690 Effective 23-Mar-2010 30-Apr-2010 14-Jul-2010 31-Dec-2012 Public Disclosure Copy Disbursements (in Millions) Project Loan No. Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P074020 IDA-38990 Effective XDR 66.90 54.17 12.73 53.85 0.32 99.00 P074020 IDA-46690 Effective XDR 31.50 31.50 0.00 9.30 22.20 30.00 Disbursement Graph Key Decisions Regarding Implementation Public Disclosure Copy None. Restructuring History There has been no restructuring to date. Related Projects P107217-Public Sector Capacity Building Program Support Project Page 14 of 14