Implementation Status & Results Mongolia Governance Assistance Project (P098426)

Transcription

1 Public Disclosure Authorized Public Disclosure Authorized Implementation Status & Results Mongolia Governance Assistance Project (P098426) Operation Name: Governance Assistance Project (P098426) Project Stage: Implementation Seq.No: 7 Status: ARCHIVED Last Modified : 24-Feb-2011 Country: Mongolia Approval FY: 2006 Product Line: IBRD/IDA Region: EAST ASIA AND PACIFIC Lending Instrument: Technical Assistance Loan Implementing Agency(ies): Ministry of Finance Key s Board Approval 23-May-2006 Original Closing 15-Jan-2012 Planned Mid Term Review Last Archived ISR 03-Jun-2010 Effectiveness 21-Jul-2006 Revised Closing 15-Jan-2012 Actual Mid Term Review 11-May-2010 Project Development Objectives Project Development Objective (from Project Appraisal Document) To assist the government in (i) improving the efficiency and effectiveness of governance processes in the management of public finances, (ii) promoting transparency and accountability in the performance of public sector functions, and (iii) fostering the investment climate in Mongolia. Has the Project Development Objective been changed since Board Approval of the Project? Yes No Component(s) losure Authorized Public Disclosure Authorized Component Name Component Cost A. Management of Public Finance 4.11 B. Fostering Public Accountability and Monitoring 1.69 C. Investment Climate 7.88 D. Project Coordination and Evaluation 0.95 Overall Ratings Previous Rating Current Rating Progress towards achievement of PDO Satisfactory Satisfactory Overall Implementation Progress (IP) Satisfactory Satisfactory Overall Risk Rating Implementation Status Overview Overall project implementation is satisfactory. The components on support to the National Statistical Office, connecting local treasury offices to the GFMIS, support to the Independent Agency Against Corruption (IAAC), and development of a computerized mining cadastre and mining regulations have been largely completed satisfactorily. The major outcomes of the project in these components include: -- The notification of mining cadastre regulations conforming to international best practice and the implementation of a computerized cadastre system. Both of these achievements Page 1 of 7

2 greatly increase the efficiency and transparency of the mineral licensing regime and will encourage foreign investment in the sector. -- The rollout of GFMIS to 316 soums by the end of 2010, exceeding the original target of 50 soums. The GAP financed the first 50 soums, with the rest financed by the state budget, underlining government commitment and the sustainability of the GFMIS. The remaining soums will be connected once they have been electrified. -- The development of a Corruption Perception Index to measure success in achieving the Government s goals of reducing corruption, and the good progress in implementing the Assets and Income Declarations -- The completion of the new HSES in 2008/09 and increased data transparency and dissemination by the NSO. Progress on tax administration reform and computerization, and on procurement reform has been slower, but some notable achievements have taken place recently. The development of an integrated tax administration information system is the one large remaining procurements in the project, and is currently at the contract negotiation stage. A new procurement management and monitoring system is now also under development. Results Project Development Objective Indicators Improved efficiency and effectiveness of management of public finance framework as evidenced by more efficient monitoring of the debt situation based on the adoption of the debt strategy. There is no formal Strategy for Debt Management in place and no comprehensive monitoring of debt situation. 01-Jul-2006 Good Progress: Medium-term Debt Management Strategy approved by Cabinet A Public Debt Strategy (PDS) is developed; adopted and used as a critical tool for Govt. to make sound fiscal policy decision. A comprehensivemonitoring of the debt mgt to ensure sustainability. End target will be the effective implementation of the newly approved debt management strategy Page 2 of 7

3 Improved public accountability as evidenced by:(i) reduced perception of corruption and (ii) an effective conflict of interest framework that complies with UNCAC. The perception of corruption is on The Mongolia Corruption the rise in Mongolia, as reflected in Perception Survey (2009) various studies and surveys (e.g. conducted under the auspices of investment climate assessment the IAAC provides a baseline for (ICA),USAID corruption report, this measure. WBI indicators). The IAAC survey is larger and more representative than other sources, such as the Asia Foundation survey. Reduced perception of corruption as measured by the Mongolia Corruption Perception Survey Improved IC as evidenced by:(i)reduced proportion of firms perceiving corruption as a major obstacle to investment and (ii)reduced cost of compliance for business taxpayers [among pilot group] (i) ICA and (ii) Currently, GDNT audits ALL taxpayers on a 2-3 year cycle, leading to about 10,700 annual audits from a pool of 26,400 taxpayers (or 41%). 01-Jan-2005 Good preogress: GDNT has introduced e-filing, as the first step towards improving tax administration framework. Work on developingrisk management framework for audits has started (i) Future ICAs show a reduction in proportion of firms perceiving corruption as an obstacle to investment and (ii) reduction of audits to lessthan 25% Intermediate Results Indicators Page 3 of 7

4 Improvement in Public Access to Key Fiscal Information PI-10). (PEFA Open Budget Index score of 18 in 2006 The International Budget Partnership#s Open Budget Survey (OBI) assesses the availability and the comprehensiveness of budget documents in each country based on expert opinion. Open Budget Index improved to 36 OBI target of 70 for 2012 survey in 2008 and 60 in Oct-2012 This target would place Mongolia in In a short period of time, Mongolia group of countries that provides has gone from being a country that "significant information". provided scant budget information to one that provides much more comprehensive information. Its score fell just short of placing it in the #significant information# category, outperforming highincome countries like Italy and Portugal. GFMIS rollout and better control over budget execution. 0 Soums connected ACHIEVED. 316 Soums connected Target Achieved. 50 soums connected from GAP project funds. Goverment Budget has connected an additional 266 Soums, for a total of 316 out of 366 soums (including UB districts). Remaining 50 soums will be connected once they are electrified. Page 4 of 7

5 Functional system of income and asset declaration and disclosure. No incomes and assets disclosed Good progress: 99% compliance rate in the submission of assets and income declarations. However, limited analysis of the declarations. sset and Income Declaration Information System under development which should improve A analysis. LSMS data readily available to the Public. LSMS data is accessible in theory but access is difficult in practice and not advertised. Achieved. Detailed assets and income declarations continue to be published. Improved analysis of IAD through functional Asset and Income Declaration Information System Target achieved Improved and expanded disclosure of key GDNT data. GDNT publishes taxpayer assistance information and information about rulings, taxes and guidelines. Key GDNT management metrix and all tax laws published on the website. Customs satisfaction survey being fielded 22-Feb-2008 GDNT publishes and disseminates (i) taxpayer assistance information; (ii) customer satisfaction and (iii) comprehensive statement of taxpayers'rights. Page 5 of 7

6 Improved investment climate as evidenced by increased use of open competition in public procurement. Sound legal framework Procurement Law based on international best practice Weak Procurement Monitoring System. Decline: Direct contracting provision intruduced in 2007 amendment to law, which was a set back. Procurement Management and Monitoring Information System in pilot phase. Direct contracting provision only implemented in 2007; has not been used since then. Removal of direct contracting claiuse from Procurement Law. Functional PMMIS. Effective debt recording system developed No comprehensive monitoring of debt situation Good progress: DMFAS allowing for comprehensive montoring of debt DMFAS upgrade completed Efficient operation of the Mining Registry and Cadastre system Data on Financial Performance (as of 09-Feb-2011) Financial Agreement(s) Key s No computerized cadastre system; management of mineral licenses arbitrary and non-transparent Achieved: the Computerized Mining Cadastre System (CMCS) went on-line April 1, 2010 and is now the primary tool for mining licensing and management This Result has been achieved Increased public access to the mining cadastre to further enhance transparency Page 6 of 7

7 Project Loan No. Status Approval Signing Effectiveness Closing P IDA-H2220 Effective 23-May Jun Jul Jan-2012 Disbursements (in Millions) Project Loan No. Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P IDA-H2220 Effective XDR Disbursement Graph Key Decisions Regarding Implementation None Restructuring History Level two Approved on 16-Jul-2010 Related Projects There are no related projects. Page 7 of 7