Implementation Status & Results Azerbaijan Corporate and Public Sector Accountivility Project (P099924)

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1 losure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized The World Bank Implementation Status & Results Azerbaijan Corporate and Public Sector Accountivility Project (P099924) Operation Name: Corporate and Public Sector Accountivility Project (P099924) Project Stage: Implementation Seq.No: 8 Status: ARCHIVED Archive : 17-Sep-2013 Country: Azerbaijan Approval FY: 2008 Product Line: IBRD/IDA Region: EUROPE AND CENTRAL ASIA Lending Instrument: Specific Investment Loan Implementing Agency(ies): Key s Board Approval 27-Mar-2008 Original Closing 31-Dec-2012 Planned Mid Term Review 10-Jun-2012 Last Archived ISR 11-Dec-2012 Effectiveness 19-Dec-2008 Revised Closing Actual Mid Term Review 09-Nov-2012 Project Development Objectives Project Development Objective (from Project Appraisal Document) The main Project Development Objective is to strengthen accountability and transparency in financial reporting for the public and corporate sectors in line with international best practices. The key beneficiaries are the Public Interest Entities including State-Owned Enterprises, the Chamber of Accounts (the country's supreme audit institution), the Chamber of Auditors (in its role as the country's auditing services regulator and standard-setter, subject to whatever rebalancing of responsibilities between the Ministry of Finance and the Chamber of Auditors may take place as part of the enhancements introduced when improving the statutory framework), the Ministry of Finance, and accounting and auditing professionals and stakeholders in Azerbaijan. Has the Project Development Objective been changed since Board Approval of the Project? Yes Component(s) No Component Name Component Cost Component 1: Corporate Sector Accountability 4.06 Component 2: Public Sector Accountability Component 3: Strengthening accounting, auditing and financial management capacity Overall Ratings 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 Implementation Status Overview Page 1 of 5

2 Following a prolonged period of deliberations after project launch, during which disbursements were significantly slow as the Ministry of Finance (MOF) re-evaluated the need for certain technical components within the evolving political agenda, the project began registering considerable progress and achieving concrete results after the first restructuring completed in September A component to finance the development and deployment of an automated accounting software system across selected government institutions was introduced. The project has also successfully financed the establishment and expansion of a training center, where all public sector accountants and bookkeepers, as well as those who are interested from the commercial sector, are receiving training towards a National Accounting Qualification, developed with project financing and currently being prepared for international accreditation. Locations Country First Administrative Division Location Planned Actual Azerbaijan Not Entered Azerbaijan Results Project Development Objective Indicators Indicator Name Core Unit of Measure Baseline Current End Target Transparency and self-governance in the Text Value No No Yes accounting and audit profession improved with 01-Feb-2013 the establishment of an Association of Professional Accountants that follows The Association will be fully international standards functional by the end of 2013 Accountability in management of public funds strengthened through improvements in the external audit and internal controls environments Accounting and auditing profession strengthened through the establishment of training and certification programs and education standards in line with international standards. Intermediate Results Indicators Text Value ZERO ZERO 10% for COA, 30% for FARABI 01-Jan-2008 % (% of total budget expenditures audited, using new methodology, by Chamber of Accounts + % of state budget processed through FARABI) Text Value Jan-2008 Page 2 of 5

3 Indicator Name Core Unit of Measure Baseline Current End Target Number of updated IFRS translated, Number Value explanatory notes issued Currently the MOF 2011 version of IFRS translated IFRS 2012 version will be fully translated and adopted by the end of 2013 # of NASBOs issued based on IPSAS and Number Value explanatory notes 30-Nov-2012 # of Key budget organizations and Line Ministries using unified automatic accounting system. % of total budget expenditures audited, using new methodology, by Chamber of Accounts. # of registered training programs (incl. undergraduate, graduate and vocational training programs) All NASBOs have been prepared and issued. The target has been met already Number Value two Government agencies and 3 Universities are using the system All 39 pilot sites will be using the system by the end of 2013 and additional 20 line ministries will be added in 2014 Percentage Value New methodology is under development now, will be ready by June 30, The new methodology will be used starting from second half of 2014 Number Value There are now 3 programs though none of them officially been registered All three current programs and additional program for tutors will be registered by the end of 2013 # of accredited trainers Number Value trainers have been accredited by contractor, one of the leading UK accounting The number of accredited trainers should increase to 30 by the end of 2014 and Audit teaching company. # of students successfully enrolled to the Number Value various training programs Page 3 of 5

4 # of new accounting and audit, tax related textbooks introduced at higher education institutes. Data on Financial Performance (as of 22-Aug-2013) currently 1200 students are enrolled into all three programs The number of Students should reach 2500 by the end of 2014 Number Value all textbooks have been prepared but none of them have been yet approved by the Ministry of Education 7 textbooks will be introduced by the end of 2013 Financial Agreement(s) Key s Project Ln/Cr/Tf Status Approval Signing Effectiveness Original Closing Revised Closing P IDA Effective 27-Mar Sep Dec Dec-2012 P TF Effective 26-Sep Sep Dec Dec-2012 P TF Effective 14-Jun Jun Jun Dec-2012 Disbursements (in Millions) Project Ln/Cr/Tf Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P IDA Effective USD P TF Effective USD P TF Effective USD Disbursement Graph Page 4 of 5

5 Key Decisions Regarding Implementation The Government of Azerbaijan requested that Bank share for IDA credit be increased from 60% to 100% in order to be able to fully utilize IDA funds. The project closing date will also need to be extended for 18 months to complete all planned activities. In addition, the project scope will need to be revised to cancel inactive and less important activities initially included in the PAD. The activities to be canceled will not have impact on the PDO of the project. A formal restructuring process will be initiated once ECA VP has made a decision on the Government request. Restructuring History Level two Approved on 23-Sep-2011 Related Projects There are no related projects. Page 5 of 5