Public Disclosure Authorized AFRICA Burundi Governance Global Practice IBRD/IDA Investment Project Financing FY 2015 Seq No: 4 ARCHIVED on 10-Jul-2017 ISR28718 Implementing Agencies: Government of Burundi, MINISTRY OF FINANCE Public Disclosure Authorized Key Dates Key Project Dates Bank Approval Date:22-Apr-2015 Planned Mid Term Review Date:15-Mar-2018 Original Closing Date:31-Dec-2020 Project Development Objectives Effectiveness Date:19-Aug-2016 Actual Mid-Term Review Date:-- Revised Closing Date:31-Dec-2020 Public Disclosure Authorized Project Development Objective (from Project Appraisal Document) The Project Development Objective (PDO) is: to strengthen government institutional capacity to improve fiscal management. This objective will be achieved by supporting government efforts to mobilize domestic revenue, improve public expenditure management and controls, produce timely statistics for policy making, and improve mining sector regulatory capacity and practices. Has the Project Development Objective been changed since Board Approval of the Project Objective? No PHRPDODEL Components Name Component 1: Modernizing Revenue Policy and Administration:(Cost $6.20 M) Public Disclosure Authorized Component 2: Strengthening Public Expenditure Management and Control; Project Management:(Cost $8.90 M) Component 3: Improving ISTEEBU s Institutional Capacity:(Cost $3.30 M) Component 4: Improving Mining Regulatory Capacity and Practices:(Cost $3.60 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 7/10/2017 Page 1 of 14
Implementation Status and Key Decisions The Project was restructured in April 2017. The aim of the restructuring was fourfold: (i) to remove the co-financing that was expected for Component 1, as the contribution from the Belgian Government was cancelled, (ii) to extend the closing date by one year to account for the fact of delayed effectiveness by 14 months, and (iii) to adjust the expected disbursement profile. In addition, the newly created Office Burundais des Mines is now included as an additional implementing agency. The moderately unsatisfactory rating for Component 1 remains. As of June 2017, the implementation of this component remains delayed. As a number of ToRs have been prepared, it is expected that the component will return to a moderately satisfactory status by the next ISR. For Component 2, the IT audit of the SIGEFI has been realized, and two milestone activities are currently implemented related to the development of the new Public Financial Management reform strategy and the accounting manual. Furthermore, the CdC recently submitted a considerable number of TOR cleared by the task team. Component 3 is progressing well. Component 4 is moderately advancing. A key initiative, the mining fiscal audit, that will also frame Component 4 activities, is currently under procurement. 7/10/2017 Page 2 of 14
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Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance Substantial High High Macroeconomic Substantial Substantial High Sector Strategies and Policies Moderate Moderate Substantial Technical Design of Project or Program Substantial Substantial Substantial Institutional Capacity for Implementation and Sustainability High High High Fiduciary Substantial Substantial Substantial Environment and Social Moderate Moderate Moderate Stakeholders Moderate Moderate Moderate Other -- -- -- Overall Substantial Substantial Substantial Results Project Development Objective Indicators PHINDPDOTBL Improved predictability of tax policy. (Percentage, Custom) Value 93.40 93.40 92.60 95.00 Date 01-Jan-2013 28-Apr-2016 30-Dec-2016 31-Dec-2021 The fiscal crisis made the revenue performance less predictable. 7/10/2017 Page 4 of 14
PHINDPDOTBL Program-based budgets attached to the Finance Law and defended by sector ministries in the Parliament (Number, Custom) Value 0.00 0.00 0.00 3.00 Date 01-Jan-2015 28-Apr-2016 30-Dec-2016 31-Dec-2021 The programme budget reform has been postponed to 2019 with possible initial activities in 2018. PHINDPDOTBL Improved production of timely and reliable statistics (Number, Custom) Value 5.00 5.00 11.00 20.00 Date 01-Jan-2015 28-Apr-2016 30-Dec-2016 31-Dec-2021 Progresses have been made to achieve the target of the year. 7 statistical products are produced annually: (a) National accounts, (b) Annual agricultural statistics, (c) Annual statistics on environments, (d) Business accounts, (e) Sustainable Human Development, (f) Annual Statistics of the National Static System and the Social Dashboard. 3 statistical products are regularly produced on a quarterly basis, including: (a) Quarterly Foreign Trade Bulletin, (b) Harmonized Index of Industrial Production and (c) Civil Registry Bulletin. A statistical product is produced on a monthly basis, the "Monthly Price Bulletin" PHINDPDOTBL Improved management and regulatory framework in the mining sector (Text, Custom) Value No No No Yes Date 01-Jan-2015 28-Apr-2016 30-Dec-2016 31-Dec-2021 Overall As of June 2017, indicators which are annual -- which includes all of the PDO indicators -- are now available for CY2016 and are reflected in this 7/10/2017 Page 5 of 14
ISR. Intermediate Results Indicators Tax policy measures backed by ex-ante impact analysis (Percentage, Custom) Value 0.00 0.00 0.00 50.00 New tax policy measures implemented after a minimum of six months from the date of announcement to taxpayers (Percentage, Custom) Value 0.00 0.00 0.00 50.00 Increased taxpayer compliance (Percentage, Custom) Value 0.00 0.00 0.00 0.00 Large Tax Operators (Percentage, Custom Breakdown) Value 99.00 97.20 97.20 99.50 Date 01-Jul-2014 30-Dec-2016 30-Dec-2016 31-Dec-2021 7/10/2017 Page 6 of 14
Medium Tax Operators (Percentage, Custom Breakdown) Value 83.00 79.70 82.50 97.00 Date 01-Jul-2014 30-Dec-2016 30-Dec-2016 31-Dec-2021 Small Tax Operators (Percentage, Custom Breakdown) Value 60.00 87.50 87.50 90.00 Date 01-Jul-2014 30-Dec-2016 30-Dec-2016 31-Dec-2021 Domestic tax revenue collected outside Bujumbura urban, out of the total domestic revenue collected in a given year (Percentage, Custom) Value 0.80 1.11 2.00 2.50 Date 01-Jan-2014 30-Dec-2016 30-Dec-2016 30-Dec-2021 In 2016 the target was achieved thanks to the tax reforms and actions put in place by OBR. This achievement is not imputable to the project. Audit Completion Ratio (Percentage, Custom) Value 46.00 35.00 43.00 80.00 7/10/2017 Page 7 of 14
Reduction in the time reported to process budget requests at each stage of the expenditure chains (quarterly average) (Days, Custom) Value 5.00 5.00 5.00 5.00 The information for this indicator is difficult to collect and a revision of this indicator will be done at the Project Mid Term Review. Verification (VF) (Days, Custom Breakdown) Value 15.00 4.00 4.00 2.00 Budget Commitment (BC) (Days, Custom Breakdown) Value 27.00 5.00 5.00 2.00 Legal Commitment (LC) (Days, Custom Breakdown) Value 27.00 5.00 5.00 2.00 7/10/2017 Page 8 of 14
Authorization (AT) (Days, Custom Breakdown) Value 12.00 7.00 7.00 1.00 Disbursement (DE) (Days, Custom Breakdown) Value 5.00 3.00 3.00 2.00 Payment (PA) (Days, Custom Breakdown) Value 12.00 9.00 9.00 5.00 Number of beneficiaries of training courses on budget program, of which at least 80 % pass the final test/get the certificate. (Number, Custom) Value 0.00 0.00 0.00 120.00 The program budget reform has been postponed to 2019. 7/10/2017 Page 9 of 14
Number of beneficiaries of training courses on budget program, of which at least 80 % pass the final test/get the certificate. (Percentage, Custom Supplement) Value 0.00 0.00 0.00 96.00 Number of audits produced by Court of Auditors conforming to International Standards of Supreme Audit Institutions (ISSAI) (Number, Custom) Value 0.00 0.00 0.00 185.00 The target indicators are ambitious and a revision will be done at the Project Mid Term Review stage. National statistics published as per the original targets set in the annual ISTEEBU corporate program (Percentage, Custom) Value 0.00 0.00 57.00 75.00 Out 19 statistics publications 11 have been published in FY 16 totaling 57% of execution. 7/10/2017 Page 10 of 14
Performance appraisal system and evaluation mechanisms developed and implemented for all technical employees at ISTEEBU (Yes/No, Custom) Value N N N Y Number of ISTEEBU staff trained and evaluated with satisfaction in design and analysis of statistics products, of which at least 25% should be women (Number, Custom) Value 0.00 0.00 0.00 0.00 Number of ISTEEBU staff trained and evaluated with satisfaction in design and analysis of statistics products, of which at least 25% should be women (Number, Custom Breakdown) Value 0.00 0.00 0.00 120.00 Number of ISTEEBU staff trained and evaluated with satisfaction in design and analysis of statistics products, of which at least 25% should be women (Percentage, Custom Supplement) Value 0.00 0.00 0.00 30.00 7/10/2017 Page 11 of 14
Statistics products publicly available to users through Accelerated DataProgram and ISTEEBU website (Percentage, Custom) Value 25.00 25.00 68.40 80.00 Beneficiaries satisfied with quality of services provided by ISTEEBU (Percentage, Custom) Value 22.70 22.70 48.20 45.00 Percentage of ASM mines inspected on a quarterly basis according to mining regulations which don't respect mining regulations (Percentage, Custom) Value 70.00 70.00 68.00 10.00 Percentage of total remedial actions taken within 6 months from inspection reports deemed satisfactorily addressed (Percentage, Custom) Value 5.00 5.00 5.00 50.00 7/10/2017 Page 12 of 14
Mineral production and taxation revenues database monthly updates completed and made available to the public (Number, Custom) Value 1.00 1.00 1.00 12.00 Overall The previous ISR recorded within year estimates for the available indicators. This ISR makes updates on indicators that are mainly updated annually. There are difficulties to measure indicator 2.1, and indicator 2.4. has ambitious targets. These indicators might be revised at Project Mid-Term Review Stage. Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed Disbursed P149176 IDA-D0490 Effective XDR 15.70 15.70 0.00 1.99 13.71 13% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P149176 IDA-D0490 Effective 22-Apr-2015 01-Apr-2016 19-Aug-2016 31-Dec-2020 31-Dec-2020 Cumulative Disbursements 7/10/2017 Page 13 of 14
Restructuring History Level 2 Approved on 24-Feb-2017 Related Project(s) There are no related projects. 7/10/2017 Page 14 of 14