Implementation Status & Results Niger Niger Reform Management and TA (P108253)
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1 Public Disclosure Authorized Public Disclosure Authorized The World Bank Implementation Status & Results Niger Niger Reform Management and TA (P108253) Operation Name: Niger Reform Management and TA (P108253) Project Stage: Implementation Seq.No: 9 Status: ARCHIVED Archive : 13-Sep-2014 Country: Niger Approval FY: 2010 Product Line: IBRD/IDA Region: AFRICA Lending Instrument: Technical Assistance Loan Implementing Agency(ies): Key s Board Approval 02-Jul-2009 Original Closing Planned Mid Term Review 05-Jun-2012 Last Archived ISR 17-Feb-2014 Effectiveness 29-Jan-2010 Revised Closing Actual Mid Term Review 22-Jun-2012 Project Development Objectives Project Development Objective (from Project Appraisal Document) The project development objective is to improve: (i) the credibility and reliability of budgets allocated to budget managers; and (ii) the internal controls to hold budget managers accountable 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 Capacity Development 3.00 Leverage and Rationalize Financial Management Information Systems 5.00 Support to the Coordination Unit 1.50 Overall Ratings Previous Rating Current Rating Progress towards achievement of PDO Moderately Satisfactory Satisfactory Overall Implementation Progress (IP) Moderately Satisfactory Satisfactory Overall Risk Rating Substantial Substantial Implementation Status Overview The Niger Reform Management Technical Assistance (RMTA) project has done relatively well during the previous six months. Its disbursement rate rose to 72% from 64% recorded during the December 2013 supervision mission. This increase was mainly driven by the payment related to the completion of the information systems link between the Ministry of Finance and line ministries, which will enable the decentralization of the chain of expenditure. Operational tests are underway, and the ceremony for the official delivery of this new system is scheduled for the end of August The impact of the decentralization of the expenditure chain in the strengthening of public finance management in Niger will be dramatic. Until now, access to and processing in the computerized budget execution system was only done through the processing facility ("salle pilote")set up the Ministry of Page 1 of 5
2 Finance. This meant that all budget managers (administrateurs de crédits) and financial controllers (contrôleurs financiers) had to come to the Ministry of Finance to process their transactions (entry of purchasing orders, verification of budget allocation, availability of credits, financial reports, etc.). With the decentralization of the budget execution system, line ministries will be put in the driver's seat in the management of their finances, and this will have a profound change in terms of ownership and accountability. In terms of PDO indicators, which include the stock of arrears ratio, the time of transmission of the budget execution bill (Loi de Règlement) and management accounts (comptes de gestion), there is significant progress as the targets have been achieved or are within reach. The ratio of stock arrears stands at 4.14 percent versus 4 percent; the delay in the transmission of the budget execution bill is 10 months (as opposed to the project s target of 9 months); and the delay in the transmission of the management accounts has been reduced to the six month target of the project. In reality, technically speaking, there is no delay even in the transmission of the budget execution bill considering that the preparation of the 2013 Loi de Règlement was completed early this August (8 months after the end of last fiscal year) and submitted to the Parliament during the debate and approval of the revised 2014 budget (Loi rectificative). Locations Country First Administrative Division Location Planned Actual Niger Niamey Niamey Results Project Development Objective Indicators Indicator Name Core Unit of Measure Baseline Current End Target Ratio of Arrears compared to total expenditure Percentage Value This is the ratio for the 2009 period as indicated in the official 2012 PEFA Improvement of the arrears situation due to the increase of internal revenues mainly from oil exports and improved treasury management due among other things to the use on the new LAP module. Delay in month of submission of financial statements to the Supreme Audit (Cour des Comptes) and to National Assembly Number Value Low capacity in the Treasury in terms of manpower to produce on time Budget Execution bills (Loi de reglements and Comptes de gestion). Big delays which need to be quickly reduced. The delay continues to shrink; the operational accounts (comptes de gestion) have already been submitted, and the 2013 accounts should be ready in September This a great This indicator refers just to the achievement considering the submission of Comptes de Gestion to the CourtdesComptes, not to very long delays (over 3 years) that existed at thestart of the project. National Assembly. Page 2 of 5
3 Delay of submission of budget utilization report (loi de reglement) to National Assembly Number Value The budget execution bills have already been presented to the Parliament, and the budget execution bills for 2013 was ready in August 2014 or just eight months after the end of the previous fiscal year, which is in line with the target and conform withthe law. Intermediate Results Indicators Indicator Name Core Unit of Measure Baseline Current End Target Deviation in aggregate expenditure Percentage Value Level of total spending Decrease in the gap between budgeted and actual aggregate expenditure due to a slight decrease in military and security expenditures following the end of the civil war in neighboring Mali and better preparation against domestic and cross-border terrorism threats.additionally, the Ministry of Finance has now a much more competent and effective budget management team, which assures better expenditure control management than in the past. Deviatiion of aggregate revenue for Tax and Percentage Value Customs Directorates 30-Jun-2010 An aggregate deviation will be Slight improvement computed for both the tax and particularly due to increased customs revenues revenues from oil exports and more professional management teams put in Page 3 of 5
4 Degree of compliance with rules for processing and recording transactions Frequency of complete accounts reconciliation between tax/customs assessments, collections, arrears, records and receipts by Treasury Timeliness of the issue of the semi-annual budget reports place bothat the Customs and Tax Directorates. Percentage Value Jun-2010 Exceptional spending rate has been significant partly due to the non-credibility of the budget but also to poor fiscal discipline Continued decrease of exceptional spending (i.e. outside normal standard procedures), due to enforcement of stricter guidelines andthe introduction of the LAP module which alerts management of exceptional spendings. Number Value Very few accounts reconciliations are conducted between the revenue agencies (Tax, Customs) and Treasury Two account reconciliations are done bi-annually. The objective is to get 4 reconciliation (quarterly basis). In principle, this be possible going forward. Number Value Many weeks pass by before semi-annual budget reports are issued. Budget reports are now produced quarterly and a short delay of 2 weeks can be observed before they become available. Even at six-month interval, two weeks suffice to get budget reports. Data on Financial Performance (as of 25-Jul-2014) Financial Agreement(s) Key s Project Ln/Cr/Tf Status Approval Signing Effectiveness Original Closing Revised Closing P IDA-H4810 Effective 02-Jul Oct Jan-2010 Disbursements (in Millions) Project Ln/Cr/Tf Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P IDA-H4810 Effective XDR Page 4 of 5
5 Disbursement Graph Key Decisions Regarding Implementation There are four remaining major information systems that are yet to be completed. They include: (i) customs system migration (Sydonia World), (ii) payroll, (iii) integration of external investments in the expenditure chain, and (iv) interconnection between the central financial management system with the regions. It is in this context that the Minister of Finance has formally requested the extension for 18 months of the closing date. Decision has yet to be made on whether to extend the closing date by 18 months or less than that. The project team has been requested to prepare a clear roadmap of the different steps and time required to complete the remaining tasks. Restructuring History There has been no restructuring to date. Related Projects There are no related projects. Page 5 of 5
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