Public Disclosure Copy The World Bank Implementation Status & Results Report Afghanistan Technical Assistance Facility (P157035) Afghanistan Technical Assistance Facility (P157035) SOUTH ASIA | Afghanistan | Governance Global Practice | Recipient Executed Activities | Investment Project Financing | FY 2016 | Seq No: 2 | ARCHIVED on 06-Apr-2017 | ISR27539 | Implementing Agencies: Key Dates Key Project Dates Bank Approval Date:28-Jun-2016 Effectiveness Date:18-Jul-2016 Planned Mid Term Review Date:30-Jun-2018 Actual Mid-Term Review Date:-- Original Closing Date:30-Jun-2020 Revised Closing Date:30-Jun-2020 Project Development Objectives Project Development Objective (from Project Appraisal Document) The development objective is to strengthen the fiscal management and the budget planning performance of the Government of Afghanistan. Has the Project Development Objective been changed since Board Approval of the Project Objective? No PHRPDODEL Components Name Component 1: Supporting the Continuous Improvement of the Performance of the Macro Fiscal Performance Directorate General:(Cost $3.90 M) Component 2: Supporting the Continuous Improvement of the Programs Implementation and Coordination General Directorate:(Cost $1.10 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO  Satisfactory  Satisfactory Overall Implementation Progress (IP)  Satisfactory  Satisfactory Overall Risk Rating  Substantial  Substantial Implementation Status and Key Decisions The Afghanistan Technical Assistance Facility (TAF) Project is intended to support reform planning in the Ministry of Finance (MOF) as guided by its 4/6/2017 Page 1 of 6 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Afghanistan Technical Assistance Facility (P157035) Five Year Plan. The project’s development objective is to strengthen the fiscal management and the budget planning performance of the Government of Afghanistan. This will be achieved through the procurement of the necessary inputs including (but not limited to) skills required to support strengthened processes and substantive pieces of work as pertains to macro fiscal policy management and budget planning. The TAF is designed as a flexible facility with built-in capacity to be adaptive and agile. Specific outputs to be supported by TAF will be exclusively drawn from the MOF Five Year Plan, and identified on a periodic basis by the existing Core Group in MOF which acts as a Steering Committee for the TAF. This arrangement is intended to ensure timeliness of advice, and responsiveness to new or evolving Government priorities. The Directorates of MOF are the primary project beneficiaries, specifically the Macro Fiscal Policy Directorate (MFPD) and Programs Implementation Coordination General Directorate (PICGD). Through informed and evidence-based macro-economic policy-making and budget planning led by these respective Directorates, the Government of Afghanistan at large stands to benefit from improved decision-making. On the one hand, analysis of fiscal sustainability options, both on tax policy and public spending levels, as well as broader macroeconomic and fiscal analysis, help the Government to improve fiscal sustainability in the medium- to long-term. It is expected that with more comprehensive analytical evidence on fiscal sustainability options, the Government will be able to increase the share of recurrent expenditures that is financed by domestic revenues. On the other hand, putting strategic objectives identified in a National Development Strategy - the Afghanistan National Peace and Development Framework (ANPDF) - into practice requires detailed programming and planning at the sectoral level. Costed sector strategies – planned through PICGD’s secretariat role to the Development Councils and National Priority Programs (NPPs) - is one effective tool to help implement sectoral objectives that are set in ANPDF. The project is currently in early stages of implementation, with project management and oversight structures and mechanisms, carried out directly by core MoF functions, now fully established. Several high priority procurement packages have been launched. These include technical assistance to support preparation of a Fiscal Strategy Paper (an annual pre-budget report setting out the macro-fiscal and policy situation), forward estimates, development budget executions and reforms in the pension policy. TAF in its first year has also been supporting the High Economic Council (HEC) chaired by the President of the Islamic Republic of Afghanistan. Over the past 6-month reporting period, a process mapping of the HEC, including step-by-step procedures of HEC activities, has been completed. A Q&A for HEC activities, including proposal selection criteria and other main activities related to HEC, has been developed in Pashto, Dari and English, as has an HEC introductory presentation. Similar support has been provided by TAF to the Development Councils and National Priority Programs (NPPs). Through these councils, and with direct contribution from TAF, the Women’s Economic Empowerment NPP was launched on March 8. Dari, Pashto and English versions of the Afghanistan National Peace and Development Framework have also been finalized. Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance  High  High  High Macroeconomic  Substantial  Substantial  Substantial Sector Strategies and Policies  Substantial  Substantial  Substantial Technical Design of Project or Program  Substantial  Substantial  Substantial Institutional Capacity for Implementation and Sustainability  Substantial  Substantial  Substantial Fiduciary  Substantial  Substantial  Substantial Environment and Social  Low  Low  Low Stakeholders  Substantial  Substantial  Substantial Other  --  --  -- 4/6/2017 Page 2 of 6 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Afghanistan Technical Assistance Facility (P157035) Overall  Substantial  Substantial  Substantial Results Project Development Objective Indicators PHINDPDOTBL  Development and implementation of medium term fiscal framework (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value D D D B Date 01-Jul-2016 -- 31-Mar-2017 30-Jun-2020 Comments Description/Rationale: This focuses on more reliable resource envelopes (pre-budget and budget) and fiscal space estimates. Frequency: Annual (December 31, 2017) Data Source/Methodology: MFPD 5 Year Rolling Plan PHINDPDOTBL  Development and implementation of forward estimates framework (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value D D D B Date 01-Jul-2016 14-Sep-2016 31-Mar-2017 30-Jun-2020 Comments Description/Rationale: This leads to a credible budget that is more responsive to the Government's priorities along with more efficient and effective government spending leading to the creation of fiscal space. Frequency: Annual (December 31, 2017) Data Source/Methodology: MFPD 5 Year Rolling Plan PHINDPDOTBL  National budget allocation determined by National Development Strategy (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value D D D C+ 4/6/2017 Page 3 of 6 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Afghanistan Technical Assistance Facility (P157035) Date 01-Jul-2016 -- 31-Mar-2017 30-Jun-2020 Comments Description/Rationale: National Budget will be used as a tool to achieve the National Priorities. Frequency: Annual (December 31, 2017) Data Source/Methodology: PICGD 5 Year Rolling Plan Overall Comments Consistent with the Performance Management Framework adopted by MOF for the implementation of its overall Five Year Plan, TAF results are framed around improved performance (including behaviors and quality) i.e. rather than being focused on outputs, results are focused on performance linked to progress on the aspirational targets and the target grades under the Five Year Plan. The Five Year Plan has allocated aspirational targets for progress against international benchmarks including Public Expenditure and Financial Accountability (PEFA), Operational Business Intelligence (OBI), and Transparency International (TI). The sub-set of indicators selected for TAF have not been reassessed during this ISR period (not yet due), as part of MOF’s broader performance management cycle i.e. while “actuals” remain unchanged in this ISR update, this is not reflective of a lack of impact. Intermediate Results Indicators PHINDIRITBL  Calculate estimates of annual medium term resource envelopes and fiscal space including for discretionary and non- discretionary budgets (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value D D D B Date 01-Jul-2016 14-Sep-2016 31-Mar-2017 30-Jun-2020 Comments Description/Rationale: This indicator helps create a fiscal space through calculation of a realistic resource envelope. The fiscal space will give a full hand to the government to allocate resources according to its priorities. This also leads to continuous improvements in fiscal discipline and in making more informed evidence based decisions. Frequency: Annual (December 31, 2017) Data Source/Methodology: MFPD 5 Year Rolling Plan 4/6/2017 Page 4 of 6 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Afghanistan Technical Assistance Facility (P157035) PHINDIRITBL  Estimates of costs of existing policy in forward years (forward estimates) (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value D D D B Date 01-Jul-2016 14-Sep-2016 31-Mar-2017 30-Jun-2020 Comments Description/Rationale: This indicator solves the problem of frontloading funds and rolling over unspent funds to future years. Frequency: Annual (December 31, 2017) Data Source/Methodology: MFPD 5 Year Rolling Plan PHINDIRITBL  Coordination among government and international stakeholders for effective aid delivery to achieve the goals of National Development Strategy (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value D D D C Date 01-Jul-2016 14-Sep-2016 31-Mar-2017 30-Jun-2020 Comments Description/Rationale: Improved aid effectiveness by aligning aid delivery with national priorities to move towards self-reliance. Frequency: Annual (December 31, 2017) Data Source/Methodology: PICGD 5 Year Rolling Plan Overall Comments "Actuals" remain unchanged as the sub-set of indicators selected for TAF have not been reassessed (as part of MOF’s broader performance management cycle) during this ISR reporting period. Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed Disbursed P157035 TF-A2839 Effective USD 5.00 5.00 0.00 0.40 4.60 8% 4/6/2017 Page 5 of 6 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Afghanistan Technical Assistance Facility (P157035) Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P157035 TF-A2839 Effective 28-Jun-2016 18-Jul-2016 18-Jul-2016 30-Jun-2020 30-Jun-2020 Cumulative Disbursements Restructuring History There has been no restructuring to date. Related Project(s) There are no related projects. 4/6/2017 Page 6 of 6 Public Disclosure Copy