Document of The World Bank IMPLEMENTATION COMPLETION AND RESULTS REPORT (IBRD-46500; IBRD-71410)

Transcription

1 Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Document of The World Bank Report No: ICR IMPLEMENTATION COMPLETION AND RESULTS REPORT (IBRD-46500; IBRD-71410) ON A LOAN IN THE AMOUNT OF US$23.3 MILLION TO THE REPUBLIC OF CHILE FOR THE FIRST PUBLIC EXPENDITURE MANAGEMENT PROJECT December 7, 2007 Poverty Reduction and Economic Management Argentina, Chile, Paraguay, Uruguay Country Management Unit Latin America and the Caribbean Region

2 CURRENCY EQUIVALENTS (Exchange Rate Effective September 25, 2007) Currency Unit = Chilean Peso (Ch$) Ch$1 = US$ US$1 = Ch$ FISCAL YEAR January 1 December 31 ABBREVIATIONS AND ACRONYMS (Spanish in parenthesis) APP BESP BTO CAS CPS CGR CONAF DIPRES GDP GFSM GORE IBRD ICR ICT IDB IFM IMF LAC M&E MINVU MOF OECD PCU PDO PMG PPF PSR QAG ROSC SAG Annual Project Plan Public Sector Structural Surplus (Balance Estructural del Sector Público) Back-to-Office Report Country Assistance Strategy Country Partnership Strategy Comptroller General s Office (Contraloría General de la República) National Forestry Corporation (Corporación Nacional Forestal) Budget Directorate (Dirección de Presupuesto) Gross Domestic Product Government Finance Statistics Manual Regional Government (Gobierno Regional) International Bank for Reconstruction and Development Implementation Completion and Results Report Information and communication technology Inter-American Development Bank Integrated Financial Management International Monetary Fund Latin America and the Caribbean Monitoring and Evaluation Ministry of Housing and Urban Development (Ministerio de Vivienda y Urbanismo) Ministry of Finance Organization for Economic Co-operation and Development Project Coordination Unit Project Development Objective Management Improvement Program (Programa de Mejoramiento de la Gestión) Project Preparation Facility Project Status Report Quality Assurance Group Reports on the Observance of Standards and Codes Agriculture and Husbandry Extension Services (Servicio Agrícola y Ganadero)

3 SENAME SIAP SIAPER SIGFE UDAF National Children and Youth Services (Servicio Nacional del Menor) Budget Administration System (Sistema de Administración de Presupuesto) Human Resources Management System for the Civil Service (Sistema de Información y Control del Personal de la Administración del Estado) National Financial Administration System (Sistema de Información para la Gestión Financiera del Estado) Financial Administration Unit (Unidad de Administración Financiera) Vice President: Pamela Cox Country Director: Pedro Alba Sector Manager: Nicholas P. Manning Project Team Leader: Roberto O. Panzardi ICR Team Leader: Roberto O. Panzardi

4 CHILE FIRST PUBLIC EXPENDITURE MANAGEMENT PROJECT CONTENT A. Basic Information... i B. Key Dates...i C. Ratings Summary... i D. Sector and Theme Codes... ii E. Bank Staff...ii F. Results Framework Analysis... ii G. Ratings of Project Performance in ISRs... v H. Restructuring (if any)... vi I. Disbursement Profile... vi 1. Project Context, Development Objectives and Design Key Factors Affecting Implementation and Outcomes Assessment of Outcomes Assessment of Risk to Development Outcome Assessment of Bank and Borrower Performance Lessons Learned Comments on Issues Raised by Borrower/Implementing Agencies/Partners Annex 1. Project Costs and Financing Annex 2. Outputs by Component Annex 3. Economic and Financial Analysis Annex 4. Bank Lending and Implementation Support/Supervision Processes Annex 5. Beneficiary Survey Results Annex 6. Stakeholder Workshop Report and Results Annex 7. Summary of Borrower's ICR and/or Comments on Draft ICR Annex 8. Comments of Co-financiers and Other Partners/Stakeholders Annex 9. List of Supporting Documents MAP IBRD

5 A. Basic Information Country: Chile Project Name: Public Expenditure Management Project Project ID: P L/C/TF Number(s): IBRD-46500,IBRD ICR Date: 08/15/2007 ICR Type: Core ICR Lending Instrument: TAL Borrower: REPUBLIC OF CHILE Original Total Commitment: USD 23.2M Disbursed Amount: USD 23.2M Environmental Category: C Implementing Agencies: Ministry of Finance Cofinanciers and Other External Partners: B. Key Dates Process Date Process Original Date Revised / Actual Date(s) Concept Review: 01/02/2001 Effectiveness: 07/01/ /29/2002 Appraisal: 11/26/2001 Restructuring(s): Approval: 02/19/2002 Mid-term Review: Closing: 12/31/ /30/2007 C. Ratings Summary C.1 Performance Rating by ICR Outcomes: Risk to Development Outcome: Bank Performance: Borrower Performance: Satisfactory Moderate Satisfactory Satisfactory C.2 Detailed Ratings of Bank and Borrower Performance (by ICR) Bank Ratings Borrower Ratings Quality at Entry: Satisfactory Government: Satisfactory Quality of Supervision: Satisfactory Implementing Agency/Agencies: Satisfactory Overall Bank Performance: Satisfactory Overall Borrower Performance: Satisfactory i

6 C.3 Quality at Entry and Implementation Performance Indicators Implementation QAG Assessments Indicators Performance (if any) Potential Problem Project at any time (Yes/No): Problem Project at any time (Yes/No): DO rating before Closing/Inactive status: No No Satisfactory Quality at Entry (QEA): Quality of Supervision (QSA): Rating None None D. Sector and Theme Codes Original Actual Sector Code (as % of total Bank financing) Central government administration Information technology Theme Code (Primary/Secondary) Debt management and fiscal sustainability Primary Primary Decentralization Secondary Secondary Public expenditure, financial management and procurement Primary E. Bank Staff Positions At ICR At Approval Vice President: Pamela Cox David de Ferranti Country Director: Pedro Alba Myrna Alexander Primary Sector Manager: Nick Manning Geoffrey Shepherd Project Team Leader: Roberto O. Panzardi Roberto O. Panzardi ICR Team Leader: ICR Primary Author: F. Results Framework Analysis Roberto O. Panzardi Maria Cecilia Zanetta Project Development Objectives (from Project Appraisal Document) Improve the effectiveness, efficiency, and transparency of the Chilean public administration by establishing a modern and integrated financial management and resource allocation system. ii

7 Revised Project Development Objectives (as approved by original approving authority) (a) PDO Indicator(s) Original Target Formally Actual Value Values (from Revised Achieved at Indicator Baseline Value approval Target Completion or documents) Values Target Years Internet-based reporting of budget execution disaggregated to the agency level Indicator 1 : available to the public within one week of registry. Value quantitative or Qualitative) Limited information available Updated and online budget information on Internet portal based on SIGFE s information Budget information consolidated at the central government level is available to the public on DIPRES website on a monthly basis. Date achieved 01/22/ /31/2006 7/31/2007 Partially Achieved: Although SIFGE offers DIPRES the capacity to fully meet Comments these conditions, monthly budget information available to the public on DIPRES (incl. % website is not disaggregated at the agency level. Likewise, information is posted achievement) within 30 days after the end of the month. Adjustments made to budgets from FY2004 onward based partly on strengthened Indicator 2 : financial and performance indicators. Value quantitative or Qualitative) Few performance indicators fully implemented Monitoring and Evaluation Program implemented in every institution A Management Improvement Program has been implemented in 178 institutions. Date achieved 01/22/ /31/2006 7/31/2007 Comments (incl. % achievement) Achieved: Agency performance is used as an input in the allocation of budgetary resources. Reports on agency and program performance are presented to Congress together with the proposed Budget Law on an annual basis. Indicator 3 : Information available in real time to policy makers by Value quantitative or Qualitative) Manual and tedious reporting methodology. Budget and human resources information available to decision makers on all sectors. Real-time budget information is available online to decision makers. No significant progress in availability of information on Human Resources yet Date achieved 12/31/ /31/2006 7/31/2007 Partially Achieved: Managers in the 159 (out of 190) central government agencies in which SIGFE has been deployed have access to the agency s financial Comments information online, on a real-time basis. However, no substantial improvements (incl. % have been achieved in the availability of information on human resources. The achievement) SIAPER, however, is now being implemented in five pilot agencies and planned to be rolled out thereafter, under a new World Bank follow-up operation (SIGFE II). iii

8 (b) Intermediate Outcome Indicator(s) Indicator Indicator 1 : Value (quantitative or Qualitative) Baseline Value Original Target Values (from approval documents) Formally Revised Target Values Actual Value Achieved at Completion or Target Years Integrated financial management system implemented in central government agencies. Deficient financial management information system, more than 117 manual or semi-manual systems, implemented in public agencies. SIGFE system is implemented in all central government agencies. Budget execution for all central government agencies is integrated by SIGFE within established deadlines. In SIGFE, Floating debt is No registry of transactions are made explicit. floating debt. recorded on an accrual basis, allowing the monitoring of floating debt. Date achieved 01/22/ /31/2006 7/31/2007 Comments (incl. % achievement) Indicator 2 : Value (quantitative or Qualitative) Achieved: SIGFE has been implemented in 159 out of a total of 190 government agencies within the central government, including all Servicios de Salud and the 192 hospitals under their jurisdiction. The remaining 31 government agencies submit standardized financial information to SIGFE on a monthly basis, for which SIGFE consolidates standardized financial information of all agencies in the central government. New budget evaluation system implemented in all agencies, and results-budget linked to MOF implemented in 20 agencies. Nascent methodology for result-oriented budget initiated New evaluation system developed and implemented Robust performance-based M&E system is in place Date achieved 01/22/ /31/2006 7/31/2007 Achieved: A robust performance-based M&E system has been developed by DIPRES Evaluation Division, with six different assessment tools being used to Comments (incl. % achievement) assess the expenditure management efficiency of 178 government agencies, some of them utilizing more than one tool. Also, 91 government programs have been assessed between 2002 and At DIPRES request, a Bank team conducted an independent evaluation of the M&E system and found it to be robust, comprehensive, methodologically sound, systematic and objective. Indicator 3 : Multi-year financial scenarios, including macro-fiscal projections and estimate of future budget costs of policy and programs are being used. Value (quantitative or Qualitative) Annual budget does not include multi-year financial scenarios Multi-year scenarios presented to Congress from Multi-year scenarios presented to Congress from 2002 onward. iv

9 2004 onward. Date achieved 01/22/ /31/2006 7/31/2007 Achieved: Multi-year budget scenarios are being utilized for the preparation of the annual budget. Improved reporting to Congress as a result of annual Public Comments (incl. % achievement) Finances Reports that explicitly link the proposed annual budget to fiscal policy. They also include a medium-term financial program with a multi-year projection of future revenues and expenditures for three years beyond the year for which the budget is being proposed. The submission of this report is now required by law (Law Nº , Sept. 2003). Indicator 4 : Human-resources management information system. Value (quantitative or Qualitative) CGO lacks human resources information system Human resources management system developed and implemented The SIAPER has been developed and is being piloted in 5 agencies Date achieved 01/22/ /31/2006 7/31/2007 Comments (incl. % achievement) Partially Achieved: The design of the human resources management systems has been completed. Implementation has been initiated in five agencies. It is expected to be implemented throughout public sector under the follow-up operation. Indicator 5 : Agencies successfully implementing SIGFE and SIAPER Value (quantitative or Qualitative) No integrated financial or human resources management systems Successful implementation of SIGFE and SIAPER among individual agencies. SIGFE s implementation at the agency level has been highly successful. SIAPER has yet to be implemented in individual agencies. Date achieved 01/22/ /31/2006 7/31/2007 Partially Achieved: SIGFE s implementation strategy has rendered remarkable Comments (incl. % achievement) results, firmly inserting SIGFE at the central government level in less than three years. Factors critical to its success included strong political support together with aggressive capacity building, training and users support. SIAPER s implementation strategy should learn from that of SIGFE to ensure its success. G. Ratings of Project Performance in ISRs No. Date ISR Archived DO IP Actual Disbursements (USD millions) 1 06/27/2002 Satisfactory Satisfactory /20/2002 Satisfactory Satisfactory /18/2003 Satisfactory Satisfactory /29/2003 Satisfactory Satisfactory /11/2003 Satisfactory Satisfactory 4.59 v

10 No. Date ISR Archived DO IP Actual Disbursements (USD millions) 6 06/07/2004 Satisfactory Satisfactory /09/2004 Satisfactory Satisfactory /05/2005 Satisfactory Satisfactory /07/2005 Satisfactory Satisfactory /27/2006 Satisfactory Satisfactory H. Restructuring (if any) Not Applicable I. Disbursement Profile vi

11 1. Project Context, Development Objectives and Design 1.1 Context at Appraisal For almost three decades, Chile has been firmly committed to economic liberalization and free trade. Chile has had the most robust economic performance in Latin America and it figures prominently among the list of winners from globalization. Chile has averaged an annual per capita growth rate of over 4 percent over the fifteen years since the return to democracy in Chile s economic success reflects past economic reforms, strong public institutions and the maintenance of a solid macro-economic policy framework. The soundness of Chile s public institutions, together with prudent fiscal policies and a strong commitment toward the rule of law, have been critical factors contributing to the country s economic success. Public sector modernization as a whole has remained a top priority in the agenda of presidential administrations since 1990, with the modernization of public expenditure management being one of the central pillars of the reform efforts. Although Chile s budget procedures had been effective in yielding the fiscal surpluses critical to macroeconomic stability, by the first half of the 1990 s they were identified as an obstacle to the efficient allocation of public resources. As opposed to more modern budget systems, Chile s budget was characterized as having a narrow focus on controlling expenditures rather than on promoting the efficient and effective use of resources, assessing the results of spending, and fully accounting for the economic costs incurred. There were approximately 117 different financial management systems in Chile s central administration, including 16 semi-manual ones. Consequently, there were delays of up to 7 weeks or more in reporting some financial transactions to the Ministry of Finance (MOF) and, multiple data were provided in different formats inhibiting financial and economic analysis. As a result of a hierarchical structure with the Ministry of Finance at the apex, line agencies lacked financial and management skills and played only a minor role in planning and executing their operations. In addition, a lack of timely and adequate information, together with insufficient capacity for planning and evaluation, undermined service delivery. Finally, the legislature and the public saw the budget process in terms of haggling over incremental annual changes in resource allocations rather than an opportunity for more informed debate on strategic goals and trade-offs. To address these shortcomings, in 2002 the Government sought Bank support to strengthen its public expenditure management. The Bank responded by financing the First Public Expenditure Management Project (Loan No CL) for a total amount of US$23.23 million, which was approved in February 19, Original Project Development Objectives (PDO) and Key Indicators PDO: This project sought to improve the effectiveness, efficiency, and transparency of the Chilean public administration by establishing a modern and integrated financial management and resource allocation system. Key Performance Indicators (from Annex 1: Project Design Summary; Project Appraisal Document) Outcome/Impact Indicators Internet-based reporting of budget execution disaggregated to the agency level available to the public within one week of registry. Adjustments made to budgets from FY2004 onward based partly on strengthened financial and performance indicators. Information available in real time to policy makers by

12 Output Indicators: New integrated financial management (IFM) system implemented in all centralized and decentralized entities (171 agencies); all agencies with IFM system adhering to commitment control system after 2003, leading to the identification of floating debts; all agencies with IFM system reporting financial transactions online to MOF within 24 hours of accounting closing dates. New budget evaluation system implemented in all agencies; budget-results implemented in at least 20 agencies explicitly linked with MOF in year Improved multi-year financial scenarios presented to Congress from 2004 onward, including alternative macro-fiscal projections and estimations of future budget costs of policy/program options. CGO has piloted a new human resources information systems in five agencies by June 2003; human-resources management information system in use in at least 200 agencies by Individual agencies successfully implementing the financial management and human resources systems in line with above schedules. 1.3 Revised PDO (as approved by original approving authority) and Key Indicators, and reasons/justification N.A. 1.4 Main Beneficiaries, The project s primary beneficiaries have been the government agencies where the sub-systems were to be implemented, including the Ministry of Finance, the Comptroller General s Office (CGR) and all agencies using the new systems. 1.5 Original Components Component 1 - Financial Management Modernization (US$11.85 million, of which US$9.02 million were to be financed by the Bank): This component supported a comprehensive effort to modernize and integrate the government s financial management information system, focusing on: 1.1. Implementation of a Financial Management Information System (FMIS): This sub-component supported the design, testing, and installation of a modern integrated financial management system at the central, sector and ministry levels Related Sub-Systems Reform: This sub-component supported the revision of the Borrower's business processes and norms in accounting, cash management and procurement in order to maximize gains in efficiency, effectiveness, and transparency. Component 2 - Budget Reform to Create a Medium-Term Expenditure Framework (US$1.91million, of which US$1.55 million were to be financed by the Bank): This component provided support to strengthen DIPRES capacity for: 2.1. Multi-Annual Financial Planning: This sub-component supported the strengthening of DIPRES capacity to focus on macroeconomic, fiscal, and public investment policies as a means for deciding on the allocation of resources and the budget in a forward-looking multi-annual context Budgeting by Results: This sub-component supported the development of methodologies to strengthen the implementation of existing programs for result-oriented budgeting, including Performance Indicators, Evaluation of Governmental Programs, Comprehensive Evaluations, and Governmental Priorities Fund. 2

13 Component 3 - Human Resources Management Information System (US$2.42 million, of which US$1.93 million were to be financed by the Bank): This component provided support for the design and implementation of an information system for human resource management and control in central government agencies, including DIPRES and CGR. Component 4 - Strengthening MOF s Financial and Human Resource Management (US$13.06 million, of which US10.4 million were to be financed by the Bank): This component supported the strengthening of the institutional capacity of DIPRES, the Comptroller General s Office, and financial management and human resources management units of central government agencies to ensure the successful implementation of the IFM and human resources management systems. Component 5 - Reform Management (US$4.03 million, of which US$0.1 million were to be financed by the Bank): This component financed the costs of the Project Coordinating Unit (PCU). 1.6 Revised Components Project components remained unchanged throughout the life of the project. 1.7 Other significant changes Amendment to the Loan Agreement: The original loan agreement was modified in mid-2002 to change the terms of the loan from variable-spread to fixed-spread terms. As a result, the loan s number changed from 4650-CH to 7141-CH. Extension of the closing date: The loan s original closing date was extended six months, from December 31, 2006 to June 30, Key Factors Affecting Implementation and Outcomes 2.1 Project Preparation, Design and Quality at Entry The ICR finds the quality at entry to be Satisfactory. The loan objectives were consistent with those of the Bank as articulated in the 2002 CAS (CAS Report No CH; February 19, 2002), which emphasized the need to continue to focus on the modernization of the state that, in turn, supported the other two CAS objectives, namely: sustaining economic growth and social progress and heightening inclusion. The Project also reflected the Government s own priorities, as reflected in the State Reform and Modernization Program instituted by the Lagos Administration, which sought to deepen public sector modernization to obtain further improvements in efficiency and effectiveness, enhance transparency and access to information, as well as promote a culture of service and public participation. E-government and the implementation of state-of-the-art information systems such as the ones supported under this operation were an important feature of the Lagos administration s state modernization agenda. Thus, the Bank s team recognized a window of opportunity to strengthen Chile s public expenditure management, capitalizing on the Borrower s self-motivation and the Bank s ample expertise in public-sector modernization in general and public expenditure management in particular. The appraisal team correctly identified a set of core areas of intervention that could have a significant impact on enhancing public expenditure management. Accordingly, the project s four substantive components focused on these areas of intervention, capitalizing on the progress already made in these areas and strong ownership on the part of the main actors, particularly 3

14 DIPRES in the Ministry of Finance. These components provided a comprehensive navigation chart that included clearly defined outcomes and a corresponding timetable. Drawing from an in-depth analysis of the lessons learned from previous operations and best practices from the Bank's global experience, the appraisal team clearly identified the key determinants of the project s success and incorporated them into the reform strategy. Strategically, the project capitalized on the main findings of the 1997 World Development Report by, inter alia, supporting operational decentralization with appropriate policy oversight and uniform standards. Operationally, the appraisal team ensured adequate project preparation resources, strong support from top government officials and sound technical capacity of the Project Coordination Unit (PCU) and counterpart team. Likewise, the project s design and implementation strategy included risk-control mechanisms to minimize the risks stemming from the logistical challenges of implementing state-of-the-art information systems in a large number of government agencies with a wide array of needs and technical capacity. First, under the Project Preparation Facility (PPF), the project financed the design of prototypes of the financial and human resources management systems to test the main functionality, engage end-users in the process, and validate their design before launching full development efforts. Second, project implementation was conceived in stages, piloting the newly developed information systems in small groups of agencies in order to identify lessons from experience and internalize them while maintaining fiscal control. 2.2 Implementation Stable macroeconomic conditions: Project implementation benefited from a stable macroeconomic environment, with economic growth accelerating from 2-3 percent in 2002 to above 6 percent in 2004 and Chilean authorities within the Ministry of Finance capitalized on this stability, focusing fully on the modernization efforts. Political stability: The project benefited from Chile s remarkable political stability. The government agendas of President Ricardo Lagos ( ) and President Michelle Bachelet ( ) built upon those of the two preceding administrations of the Concertación coalition, providing continuity in the country s overall policy framework. Public sector modernization has been a high priority in Chile s medium-term development agenda. Together with stable macroeconomic policies and targeted investments in human capital and social protection, strong public institutions are seen as key factors in achieving the larger development objectives of sustainable and equitable growth and poverty reduction. Political support: The development and implementation of the financial management system (Sistema de Información para la Gestión Financiera del Estado SIGFE) benefited from the support of the highest authorities within DIPRES. In fact, DIPRES sub-director also served as the Project s Executive Director and was closely involved in its implementation, effectively leveraging his position within DIPRES to promote SIGFE s implementation in individual government agencies by forging agreements with the top agencies authorities. Conversely, despite the strong sense of ownership of SIAPER within the division responsible for its development (i.e., División de Toma de Razón y Registro ), the latter lacked comparable political support from top CGR authorities. This, in part, reflected the fact that the post of Comptroller General remained vacant for over a year, from early 2006 to April Clear assignment of responsibilities: An agreement was subscribed between DIPRES and CGR transferring sole responsibility for developing and implementing SIGFE throughout the central government to DIPRES. Similarly, the CGR was responsible for developing and 1 An Acting Comptroller General was appointed during this period. 4

15 implementing SIAPER. This clear assignment of responsibilities contributed to facilitating coordination between the two institutions. In-house versus outsourced product development: While DIPRES relied on in-house resources for the development of SIGFE, the CGR opted to bid out the development of the human-resources management system (Sistema de Información y Control del Personal de la Administración del Estado SIAPER) to a consultant firm. Both approaches had their pros and cons. While the quality of the initial SIGFE product suffered as a result of the incremental approach toward its design and development, DIPRES was able to fully control the pace of the development process. Moreover, the process of learning-by-doing served to develop the maturity needed within DIPRES to define the characteristics and functionality of the next-generation of SIGFE (the development of which is being contracted out under the follow-up operation). In the case of SIAPER, the winning bidder subcontracted SIAPER s development to a smaller consultant firm that lacked the necessary technical capacity, which resulted in substantial delays. Although a more capable consultant firm was eventually subcontracted, the initial delays were never overcome, including wide-scale rollout of and accessibility to HR management data. 2.3 Monitoring and Evaluation (M&E) Design, Implementation and Utilization The project benefited from an extensive set of indicators. While the PDO of improving the effectiveness, efficiency, and transparency of the Chilean public administration was too broad, two of the three Key Outcome Indicators helped to narrow it down. Specifically, two of these indicators (i.e., Internet-based reporting of budget execution according to specific criteria and financial information available in real-time to policy makers) were well defined and easy to measure. The third one (i.e., adjustments made to budgets based partly on strengthened financial and performance indicators) was rather ambiguous, as it did not specify the expected level of utilization of performance indicators in budget-allocation decisions. An extended set of output indicators were identified for each of the four core project components. Some of these indicators were valuable in terms of measuring the impact of the activities being carried out under each component (e.g., all central government agencies reporting financial transactions on line to the Ministry of Finance no later than 24 hours after accounting closing dates). Other indicators were less valuable in terms of measuring project outcomes, but provided a detailed timetable for the implementation of SIGFE and SIAPER (e.g., CGR has piloted a human resources information system in five agencies by June, 2003). The loan agreement also required the preparation of Annual Project Plans (APP) specifying the main activities to be implemented during the year, their timetables, costs and corresponding share of IBRD and Borrower financing. These APPs were very detailed, particularly for Components 1 and 4 that were fully under the auspices of the project s PCU. They were a valuable M&E tool that supported the original Results Framework throughout the life of the project. 2.4 Safeguard and Fiduciary Compliance The PCU had adequate financial management systems, software, and trained staff. Annual audits were conducted by an external auditing firm regularly throughout the life of the loan. No irregularities were identified during project implementation. 2.5 Post-completion Operation/Next Phase Follow-up operation: The Second Public Investment Management Project (Loan No. 7485, US$24.8 million) was approved on August 28, Its overall development objective is similar 5

16 to that of its predecessor: to increase efficiency of financial management operations, effectiveness of budget planning and execution, and transparency in public expenditure management. This objective would be achieved through the upgrading and expansion of SIGFE and the development and implementation of a new municipal financial information system. In addition, the follow-up operation will finance the continued improvement of M&E mechanisms and budget execution, as well as the implementation of SIAPER throughout government agencies at the central level. Mainstreaming of the PIU: The institutionalization of SIGFE is already taking place as of A budget for SIGFE operations has been approved, independent of the Bank-supported follow-up operation. The government has also approved financing for the ongoing administration. In line with Chile s excellent track record of dismantling project units at the end of the project cycle and integrating its functions into the regular administration, the Government has decided to maintain the PCU for a limited time during the implementation of the new operation. Specifically, the SIGFE s PCU is scheduled to be dissolved in the second year of the project, and assimilated into DIPRES as a unit. A first step has already been taken to mainstream and institutionalize SIGFE s team within DIPRES by designating the head of DIPRES ICT unit as the person in charge of ICTs for the SIGFE project to ensure that the technology and the strategic priorities of SIGFE are well aligned with the institution. 3. Assessment of Outcomes 3.1 Relevance of Objectives, Design and Implementation The operation s objectives continue to be highly relevant for Chilean authorities, as public sector modernization remains a top priority in Chile s development agenda. In November 2006, President Michelle Bachelet, the fourth president leading the country since its return to democracy in 1990, announced her Transparency and Probity Agenda, aimed at further enhancing the probity, transparency, efficiency and modernization of Chile s public sector. With state modernization as one of the central pillars, the transparency agenda will focus on enhancing management oversight to ensure not only accountability that is, an appropriate use of public funds but also high standards of public services. In addition, financial management would be increasingly decentralized. Moreover, the expansion and strengthening of SIGFE is one of the Government s key initiatives as discussed in the 2007 Budget law. 2 The project s objectives continue to be fully consistent with the Bank s overall strategy of assistance to Chile, as it directly supported the CAS objectives of modernizing the State. Likewise, the project s objectives are fully consistent with those of the new Country Partnership Strategy (CPS) endorsed by the Board in May 2007, contributing directly to the CAS objective of supporting decentralization. 3 2 Informes de Finanzas Públicas: Proyecto de Ley de Presupuesto del Sector Público para el año 2007 y 2008, Ministerio de Hacienda, Government of Chile, October 2006 y October Country Partnership Strategy (CPS) Report. April 29, As mentioned in the CPS, as part of the preparation of the new CPS, the World Bank held a CPS preparation seminar with the Government on October 27, It was agreed that the current strategy includes six broad areas of support in which the Bank and Chile will seek to develop a program of assistance during the period of the new CAS: (i) education and labor markets; (ii) innovation and business climate, (iii) infrastructure and public services, (iv) social protection and health, (v); decentralization and regional development and (vi) agriculture and environment. 6

17 3.2 Achievement of Project Development Objectives The operation met its development objective, as it succeeded in improving the effectiveness, efficiency, and transparency of the Chilean public administration, public expenditure management in particular. It did so by effectively supporting key institutional reforms, successfully implementing three of the project s four substantive components. Specifically, it supported the implementation of a new integrated financial management system (Sistema de Información para la Gestión Financiera del Estado - SIGFE) at the central level (e.g., Component 1). It also succeeded in improving the capacity of the Ministry of Finance and line agencies to formulate, execute and evaluate results-oriented budgets and in strengthening the government s capacity to establish macroeconomic, fiscal and public investment policies and mechanisms to analyze options and alternatives in a multi-annual context (e.g., Component 2). It furthermore provided individual agencies with the needed support in terms of ICT equipment, capacity building and technical support to guarantee the successful insertion of SIGFE and results-oriented evaluation tools at the agency level (e.g., Component 4). However, the project fell short of implementing a human-resources and control management information system in the CGR and line agencies (e.g., Component 3). While the development of such a system (Sistema de Información y Control del Personal de la Administración del Estado SIAPER) has been completed, it has not yet been deployed as originally envisioned. Human resources administrators in five pilot agencies are being trained in the use of SIAPER, and it is anticipated that these agencies will start using the system on a pilot basis starting the first semester of Final data migration to SIAPER is in process and scheduled to be completed by the end of The implementation of SIAPER will bring significant gains in effectiveness, efficiency, and transparency to the administration of human resources in Chile s public sector. It will cover approximately 185 government agencies and 35 municipalities, with an estimated 8,000 users. SIAPER s consultation module would provide access to roughly 360,000 electronic personnel files to the employee, his/her supervisors and those deciding on transfers and promotions. SIAPER will also administer the electronic processing of approximately 600,000 personnel-related processes per year. This will result in substantial reductions in paperwork and bureaucratic red tape, as well as in enhanced transparency, as the system will identify those responsible for taking action at every stage of the process, decision outcomes when applicable, delays, etc. Finally, SIAPER will also provide managers, including those at the central agencies (DIPRES and CGR) a comprehensive view of human resources within each agency, a critical input for improving human resources management decisions. Despite the slow implementation of SIAPER in favor of ensuring the quality of the final product, the operation has resulted in significant gains in effectiveness, efficiency and transparency in the area of public expenditure management. These gains are reflected in the overall achievement of PDO Indicators (see also Section F Datasheet) and a more comprehensive set of indicators (see Tables 1, 2 and 3): PDO1 - Internet-based reporting of budget execution disaggregated to the agency level available to the public within one week of registry: Partially Achieved - Budget information consolidated at the central government level is available to the public on DIPRES website on a monthly basis within 30 days after the end of the month. It is important to note, however, that 7

18 SIFGE offers DIPRES the capability to disaggregate information at the agency level and to report it within one week of the closing of accounts. 4 PDO2 - Adjustments made to budgets from FY2004 onward based partly on strengthened financial and performance indicators: Achieved - The operation has supported the continuous development of DIPRES robust results-oriented evaluation system. Agency performance is used as an input in the allocation of budgetary resources. Reports on agency and program performance are presented to Congress together with the proposed Budget Law on an annual basis. PDO3 - Information available in real time to policy makers by 2003: Partially Achieved - Managers in the 159 (out of 190) central government agencies in which SIGFE has been deployed have access to the agency s financial information online, on a real-time basis. No substantial improvements have been achieved in the availability of human resources information. Other gains in the effectiveness, efficiency, and transparency in public expenditure management resulting from the operation can be summarized as follows (see Annex 2 for a detailed description of the project s outcomes): Enhanced effectiveness of Chile s public administration 5 : Table 1 shows specific outcomes arising from the implementation of SIGFE and enhanced budget methodologies, as well as their impact on enhancing the effectiveness, efficiency and transparency in the management of public resources. Table 1. Main Project Outcomes and their Impact on Enhancing the Effectiveness of Public Expenditure Management Previous Situation (Pre-Operation) The human resources responsible for financial management in agencies throughout the central government were weak. Public accounting standards were not always followed. Some personnel had limited exposure to computers and no familiarity with the use of electronic tools. Current Situation (Post-Operation) The capacity building efforts that went hand-in-hand with the implementation of SIGFE have helped level technical capacity across the 1,313 financial management units (Unidades de Administración Financiera UDAFs) within the central administration in which SIGFE was implemented. Over 10,000 public employees and government officials have participated in SIGFE s on-going training activities. Capacity building efforts focused not only on the utilization of SIGFE and the provision of ITC equipment, but also on basic public accounting principles and computer skills. 4 With the exception of the Public Treasury, which is currently being reported by SIGFE 20 days after the closing of accounts as a result of slower reporting on the part of the Treasury. 5 Effectiveness refers to the ability of government agencies and their actions and/or programs having the intended or expected effect (i.e., doing the right things). It stresses the actual production of or the power to produce an effect. In this regard, project outcomes that enhance the ability of government agencies and their programs to achieve their intended effect are considered to positively affect effectiveness. 8

19 Previous Situation (Pre-Operation) Financial management systems across the central government were highly diverse. A large proportion of agencies within the central government used semi-manual financial management systems, including basic spreadsheets and even paper-based systems. The quality of financial management data was uneven across central government agencies. There were no mechanisms to detect inconsistencies in the information provided by individual UDAFs, for which aggregated financial data at the agency and sector levels, as well as at central level (i.e., DIPRES and CGR) carried forward these inconsistencies. Financial management systems were unable to provide real-time data and adequate information for performance monitoring. Financial management systems were overly decentralized and inadequately integrated. There were delays of up to 7 weeks or more in reporting some financial transactions to the Finance Ministry. Consequently, aggregated information on budget execution for all central government agencies was available with a lag of up to 60 days after the monthly closing of accounts in Current Situation (Post-Operation) SIGFE has replaced the preexisting financial management systems in 159 out of a total of 190 government agencies within the central government, including all the health services (Servicios de Salud) and the 192 public hospitals under their jurisdiction. For the large majority of these agencies, SIGFE constitutes a substantial improvement over their old financial management tools. In the case of a handful of agencies (e.g., CONAF, Customs, SAG, the Border Patrol Agency, and the National Police), the transition to SIGFE has resulted in more limited financial management capabilities, particularly in terms of reporting, due to the exceptionally complex nature of their operations and the relative robustness of their old systems. These agencies are being given priority access to SIGFE s expanded capabilities (such as the aggregation module) and technical support. The remaining 31 agencies within the central government have kept their own financial management systems. These agencies (so-called Homologados) submit standardized financial information to SIGFE on a monthly basis. The deployment of SIGFE has resulted in increased internal consistency in the financial information of individual government agencies. Internal audit controls incorporated into the SIGFE system automatically detect inconsistencies and potential errors. Financial managers from individual government agencies can easily access accounting registries performed by the UDAFs and detect reporting errors. At the agency level, information on budget execution is available online in real time. At the sector level, aggregate information on budget execution is available online in real time for the Ministry of Finance, CGR, the Ministry of Health, Ministry of Housing and Urban Development, and the regional governments (GOREs). Other ministries will soon have access to this capability. Aggregated information on budget execution for all central government agencies is available with a lag of only ten days after the closing of accounts (e.g., the aggregated budget information corresponding to July 2007 was available on August 10, 2007). This lag time, however, is the result of the current deadlines for individual agencies to submit their information to DIPRES and CGR (the 8 th day of the following month), which is designed primarily to provide enough time for the Homologados to close their accounts. Information for agencies in which SIGFE has been deployed can be consolidated and reported by SIGFE within 3 days after the closing of accounts. 9

20 Previous Situation (Pre-Operation) The government lacked a broadly disseminated and robust system to evaluate expenditure effectiveness. Budget allocations were based on expenditure categories and not on outcomes sought or achieved. Relative program effectiveness was not assessed systematically, often rewarding activities that were not justified in light of government policy or that had become obsolete based on changing social needs. The formulation and supervision of macroeconomic policy and public investment suffered from organizational overlaps, gaps in information, and insufficient coordination, especially between economic and social sector ministries. Inter-temporal analysis was also limited. Current Situation (Post-Operation) The Evaluation Division of DIPRES has developed a robust set of tools aimed at systematically monitoring agency and program performance using qualitative and quantitative indicators to ultimately enhance the quality and efficiency of public expenditures. Some of the specific outcomes include: A total of 91 government programs were evaluated between 2002 and 2006, resulting in substantial modifications, redesign or termination of roughly 2/3 of the programs. Annual public expenditures of evaluated programs amount to US$4.3 billion, equivalent to 66% of the total program expenditure during the period. A total of 1,445 performance indicators are being systematically monitored for 139 government agencies during Performance assessments are formally incorporated into the budget cycle and used as an input to the allocation of budgetary allocation process. Multi-year budget planning is now in place. A financial planning tool allows DIPRES to forecast revenues and expenditures at the agency level using a ten-year time horizon. More robust financial planning methodologies have been developed to implement the Structural Surplus (Balance Estructural del Sector Público - BESP), for which the Government has committed itself to achieving a structural surplus equivalent to 0.5 percent of GDP since A panel of independent experts was consulted to develop realistic projections of resource inflows (e.g., long-term price of copper). Alternative recurrent and capital expenditure scenarios are assessed in terms of their impact on the structural balance. The targeted structural balance has been achieved every year since it was adopted. Enhanced efficiency of Chile s public administration 6 : Although they have not been systematically monitored, substantial efficiency gains in terms of human resources and monetary costs are expected to result from the implementation of SIGFE. Some of these gains are shown in Table 2. 6 Efficiency refers to the value assigned to the cost time, human resources, monetary cost associated with producing a given output. In this regard, project outcomes that reduce the operation cost of government agencies and the cost of their programs are considered to enhance efficiency. 10

21 Table 2. Main Project Outcomes and their Impact on Increasing Efficiency in Public Expenditure Management Previous Situation (Pre-SIGFE) Financial transactions had to be reported to agency headquarters to, in turn, be entered into the agency s financial administration system. Reporting by individual UDAFs was primarily done on paper or in MS Excel files. The closing of monthly accounts at the agency level was extremely laborious. However, the bulk of the effort was focused mainly on data entry and report production rather than on ensuring the quality of the financial information. Cumbersome administrative procedures in general. Each of the 190 agencies within the central government submitted paper-based financial reports to DIPRES and CGR on a monthly basis. Each rector agency then digitized these financial reports and aggregated them according to its reporting needs. There were 117 different financial management information systems in place, which resulted in hefty costs of software licensing and servicing contracts. Current Situation (Post-SIGFE) SIGFE has eliminated the need for the multiple entry of financial transactions, replacing it with a single entry at its origin. The closing of accounts is almost automatic except for the online revision of registries performed by the UDAFs when potential errors are detected by the internal auditing controls embedded in SIGFE s transaction module. As an illustration, in the case of SENAME (Servicio Nacional de Menores), the agency within the Ministry of Justice responsible for minors, the savings in processing times at the agency level amount to roughly 864 man-hours per year. This estimate does not include the savings at SENAME s 46 UDAFs. SIGFE has simplified various other administrative tasks for government agencies. For example, payment to the agencies providers, which is decentralized in the case of Chile, has been simplified substantially, with checks and electronic transactions now being generated automatically. Again, the experience of SENAME serves to illustrate the impact of such application: prior to the implementation of SIGFE, up to 500 checks were manually written per day; now checks are printed automatically in a just few minutes. As mentioned above, no additional data entry is required. Aggregation is done almost automatically, except for the application of internal auditing controls embedded into SIGFE s aggregation module, according to the reporting needs of DIPRES and CGR. Software licensing and servicing costs have been eliminated for individual agencies. In the case of SENAME, savings in software licenses and maintenance fees amount to roughly US$73,000 per year since SIGFE was implemented. Enhanced transparency of Chile s public administration: The operation has resulted in enhanced transparency in terms of reporting, adoption of international standards, and closer scrutiny of the quality of public expenditures by Congress and the public as a result of DIPRES M&E systems. Some of the gains in transparency are summarized in Table 3: 11

22 Table 3. Main Project Outcomes and their Impact on Enhanced Transparency in Public Expenditure Management Previous Situation (Pre-SIGFE) The annual budget was not explicitly linked to fiscal policy, and lacked medium-term financial projections. Executed monthly budgets were made available to the public through printed reports with a lag time of 180 days. The lack of appropriate controls and information on agencies commitments (i.e., floating debt ) was a concern, as they can represent a major blind spot in fiscal management. Agency budgets were vague as to specific goals, without clear performance indicators for intermediate or final results. Agency and program budget allocations did not take into consideration the expected outcomes nor past performance. Current Situation (Post-SIGFE) From 2002 onward, DIPRES has presented a Public Finances Report (Informe de la Finanzas Públicas) to Congress that explicitly links the Proposed Budget Law to fiscal policy, the medium-term financial program with a multi-year projection of future revenues and expenditures for three years beyond the year for which the budget is being proposed. The submission of this report is now required by law (Law Nº , Sept. 2003). Executed monthly budgets are made available to the public on DIPRES s website within 30 days. SIGFE, however, enables DIPRES to post budget execution data disaggregated at the agency on its website roughly ten days after of the closing of accounts, as specified in Outcome Indicator 1 (see Section F PDO1). Chile has completed the first stage of adapting its fiscal statistics to the IMF s Government Finance Statistics Manual (GFSM). A new budgetary classification and a new functional classification of expenditures in line with the GFSM have been adopted and implemented throughout the public sector except for municipalities. SIGFE has been crucial in this transition, addressing data gaps, particularly on multi-year arrears, as well as reconciling fiscal and monetary accounts. Regular reporting to Congress and the public of the results of the systematic assessment of government agencies and their programs has substantially enhanced the transparency of public expenditure management in terms of effectiveness and efficiency throughout the central administration. Specifically: Every year, 114 government agencies present to Congress a Comprehensive Management Assessment, describing the use of its resources and the achievement of performance targets agreed upon under the other M&E monitoring tools. These reports follow a standardized format defined by the Ministry of Finance. Agency performance is used as an input in the allocation of budgetary resources. Reports on agency and program performance are presented to Congress together with the proposed Budget Law on an annual basis. To enhance transparency in the allocation of budgetary funds among government programs, ministries can submit applications for the financing of new or expanded existing programs using a format based on the Logical Framework. Based on the quality of the proposed programs and the availability of budgetary funds, the Ministry of Finance then recommends which programs should be financed, with the President making the final decision. A results-based incentive program (PMG) that 12

23 Previous Situation (Pre-SIGFE) Current Situation (Post-SIGFE) established performance-based salary bonus is in place in 178 government agencies for their 68,400 employees. Levels of achievement have been high, with 78 percent of the agencies exhibiting between 90 and 100 percent achievement levels in Efficiency No standard financial analysis was conducted at appraisal since the operation was a technical assistance project. However, evidence from individual agencies suggests that the implementation of SIGFE has resulted in substantial efficiency gains in terms of time, monetary and human resources (see Section Achievement of Project Development Objectives). Moreover, the costs associated with SIGFE s development, implementation and operation are estimated to be substantially lower than those of comparable systems (see Annex 3). Additional non-quantifiable benefits can also be expected in terms of transparency and increased investor and citizen confidence in government budget projections and fiscal discipline. 3.4 Justification of Overall Outcome Rating Rating: Satisfactory This operation has met its project development objective of improving the effectiveness, efficiency, and transparency of the Chilean public administration. Specifically, the implementation of SIGFE together with the strengthening of the expenditure analysis framework with emphasis on multi-annual financial planning and budgeting by results has yielded significant benefits, including enhanced fiscal transparency, robust institution strengthening, improved inter-agency coordination, and enhanced financial planning. It has also contributed to strengthening Chile s public expenditure management, thus consolidating the fiscal discipline that has been at the core of the country s sound macroeconomic management. The operation s objectives remain highly relevant for both the Government and the Bank. Project costs, which have been moderate, have yielded substantial gains in efficiency, not only within DIPRES, but also the central government as a whole. Although the project fell short of completing the implementation of the SIAPER throughout Chile s public sector, the operation succeeded in developing a sound human-resources management system that it is now being piloted in five agencies and will be fully deployed under the follow-up operation. In view of its achievement of the PDO, its continuous relevance and its overall efficiency, the operation is rated as Satisfactory. 3.5 Overarching Themes, Other Outcomes and Impacts (a) Poverty Impacts, Gender Aspects, and Social Development The operation had an indirect impact on poverty alleviation by generating greater efficiency, effectiveness, and accountability in the utilization of public resources. Since 1990, the four consecutive Concertación presidential administrations have enhanced public sector management to channel fiscal resources to finance social expenditures and targeted social programs, aimed at balancing economic growth with equity. (b) Institutional Change/Strengthening As described above, the operation s institutional impact was substantial. The more recent Reports on the Observance of Standards and Codes (ROSC) of the International Monetary Fund provide an assessment of Chile s overall fiscal transparency (IMF 2003, 2005). These reports reveal a high level of fiscal transparency and document the rapid progress made in recent years to close remaining gaps. In particular, the reports point to the Government s success in constructing and 13

24 disseminating a very clear view of its objectives and targets, both at the macro level and for individual budget programs. According to the IMF report, the budget clearly articulates government priorities and there are well-developed tools for evaluating budget performance. In addition, Chile has completed the first stage in adapting its fiscal statistics to the IMF s Government Finance Statistics Manual (GFSM). As mentioned above, the authorities also reformed the budgetary classification system and introduced a new functional classification of expenditures in line with the GFSM. In addition, the report points to the importance of SIGFE in facilitating public financial management, addressing data gaps (e.g., on arrears), as well as a reconciling fiscal and monetary accounts (IMF 2003, 2005). By helping to further increase effectiveness, efficiency and transparency in public sector management, the operation has contributed to further cementing the sound reputation of Chile s public institutions. In turn, the soundness of Chile s institutions has been vital to instilling foreign investor confidence, thereby ensuring a steady flow of foreign direct investment, as well as access to international financial markets. A wide range of governance indicators rank Chile highest in Latin America and better than some Organization for Economic Co-operation and Development (OECD) countries. Specifically, Chile stands out as a highly competitive country, ranking 23 out of 117 countries in the 2005 World Economic Forum s Global Competitiveness Report, far ahead of the rest of Latin America. Similarly, Chile holds the top Latin American ranking in the World Bank s Doing Business in It ranks 28th out of 175 countries in terms of ease of doing business, better than Spain and France. Out of 163 countries assessed by the corruption perception index of Transparency International in 2006, Chile was ranked 20 out of out of 158 countries, together with Belgium and the United States. It is widely recognized that Chile s strong public institutions have been key to the country s economic success. (c) Other Unintended Outcomes and Impacts The process of implementing SIGFE has encouraged coordination between key government agencies, particularly between DIPRES and CGR, as well as DIPRES and line agencies. Given DIPRES strong influence over Chile s public sector, its modernization efforts have spilled over to other agencies. Aggregated information from SIGFE is increasingly being used to support not only reporting requirements but also decision making by various government agencies, including the Ministry of Finance, sector ministries such as the Ministry of Housing and Urban Development, and other government agencies. 3.6 Summary of Findings of Beneficiary Survey and/or Stakeholder Workshops N.A. 4. Assessment of Risk to Development Outcome Rating: Moderate Overall, the sustainability of the achievements of the operation is deemed Moderate, due to pending implementation of SIAPER. SIGFE is already firmly inserted within the central government and its sustainability is assured. The Government is fully committed to its consolidation and further expansion, which will be supported by the Bank under the SIGFE-II operation that was recently approved. Similar continuity is expected for the further development and consolidation of DIPRES M&E system. Under the SIGFE-II project, special emphasis will be given to integrating the various management tools under the auspices of DIPRES, including its budget administration system (Sistema de Administración de Presupuesto SIAP), SIGFE and the M&E system. Likewise, the Government is fully committed to the continuous improvement of budget planning methodologies with an emphasis on multi-year planning. The forecasting of future revenues, particularly those arising from copper and other export commodities, is crucial in 14

25 the achievement of a structural fiscal surplus rule, to which the Government has committed since The sustainability of SIAPER, however, constitutes a notable exception. While the Government has been commended for recent progress made, SIAPER s pending implementation makes its sustainability more questionable. Strong political will from top CGR authorities and a proactive and dynamic implementation team are needed for its successful deployment throughout Chile s public sector. Presently, these two factors seem to be lacking. However, SIGFE s successful implementation constitutes a sound foundation from which to draw a workable implementation strategy and even experienced human resources. 5. Assessment of Bank and Borrower Performance 5.1 Bank Performance (a) Bank Performance in Ensuring Quality at Entry Rating: Satisfactory During preparation, the Bank team contributed its cross-country experience in Latin America, providing access to international specialists with ample experience in public expenditure and management. Project preparation, which was partly financed with a Project Preparation Facility (PPF), went beyond regular project preparation activities to include the development of two prototypes for SIGFE and SIAPER. This helped reduce uncertainty during project preparation and gain useful insights for the task ahead. The Bank team correctly identified areas of intervention in which the Government had already demonstrated its commitment and progress. It designed an ambitious albeit feasible project capitalizing on the Borrower s strong sense of ownership and sound technical and institutional capacity. As mentioned above, the project s quality at entry was satisfactory in terms of the relevance of the operation, its overall design, the M&E framework, and the overall risk assessment except, perhaps, for overestimating the implementation capacity of the CGR. A project launch workshop with participation from the PCU, DIPRES, the CGR, and individual government agencies was organized by the PCU in December 2002 to reinforce implementation and define monitoring responsibilities. (b) Quality of Supervision Rating: Satisfactory The Bank mobilized a strong project team to support the design and implementation of this project. The project is well documented, with Aide Memoires, Back-to-Office Reports (BTOs), Project Status Reports (PSRs) and Implementation Status Results and Reports (ISRs) being filed regularly. Throughout the life of the project, the Bank provided considerable technical assistance through the project team and consultants in core substantive areas, including financial administration experts with experience in, among others, the implementation of integrated financial management systems in Argentina and Guatemala. This technical assistance was highly valued by the Borrower even more, perhaps, than the financial support provided under the loan in question. During the supervision missions, the Bank team met with various SIGFE users, not only at the agency level but in individual UDAFs located in remote areas of the country as well. This allowed for a more accurate pulse-taking that incorporated multiple perspectives. Although the Bank closely monitored the design and implementation of SIAPER, it seems to have overestimated CGN s capacity to effectively implement the system. When the seriousness of the delays in the design of SIAPER by a private firm became obvious, the Bank immediately requested that the SIAPER team review and agree on revised, more aggressive design and implementation plans, aimed at ensuring the quality of final product. These plans were partially 15

26 met. As mentioned above, the lack of a permanently designated Comptroller General for 18 months limited the Bank team s ability to seek the support of top CGR authorities. Even though ISR reports and documents attached were indicating the delays, the supervision ratings did not fully convey the challenges being faced in SIAPER s implementation. With the benefit of hindsight, it would have been useful to downgrade the component s performance to signal the implementation delays. (c) Justification of Rating for Overall Bank Performance Rating: Satisfactory The Bank succeeded in capitalizing on the window of opportunity to further strengthen DIPRES, which is one of Chile s most influential institutions. As a result, the project has had a substantial impact on enhancing public resource management throughout the central government. The Bank s contribution was substantial as it provided high-quality technical advice based on worldwide and regional experience in financial and public resources management. 5.2 Borrower Performance (a) Government Performance Rating: Satisfactory The Government played a key role during project preparation, exhibiting high ownership, commitment, and a clear strategic vision. It effectively sought technical assistance from international financial institutions and bi-lateral cooperation agencies (including the IMF and the IADB) to support its ongoing efforts to improve public expenditure management. Political support from top government authorities remained strong throughout the project, particularly within DIPRES. This was a condition sine qua non for the successful deployment of SIGFE throughout the central administration, which was made possible by political agreements between top agency administrators and the influential Deputy Director of Budget. Unfortunately, comparable political will and, more importantly, drive was lacking within the CGR. Now that a permanent Comptroller General has been appointed, it would be crucial to gain his support for SIAPER. (b) Implementing Agency or Agencies Performance Rating: Satisfactory DIPRES was the project s executing agency and the institutional home of the PCU. The PCU reported directly to the Deputy Director of Budget, who served as the National Coordinator responsible for project implementation. The PCU was responsible for technical support, monitoring and evaluation, and financial management. It provided a crucial link between DIPRES, CGR, and the Bank. The PCU comprised a very solid project management and technical team, which brought sound expertise in key areas, such as financial management and ICTs, as well as the inner workings of Chile s public sector. The PCU s key staff was highly stable during project implementation, which was critical to ensuring continuity. Throughout the life of the project, the PCU coordinated implementation efforts in the various areas, exhibiting a cooperative attitude as opposed to that of enforcer not only vis-à-vis the various institutional actors within Chile but also with the Bank. In summary, the PCU fully capitalized on the political support that it received from DIPRES top leadership and was a crucial factor in the project s success. The PCU was also directly responsible for SIGFE s development and implementation. The SIGFE team exhibited a remarkable capacity to adapt to the needs arising at different stages of project implementation. Specifically, it demonstrated focus during product development ( ), an impressive logistical capability during the deployment stage ( ), and a remarkable response capacity during the consolidation stage ( ). Particularly noteworthy 16

27 were the technical support and capacity building provided to government agencies to ensure the successful implementation of SIGFE at the agency level. DIPRES Evaluation Division, which was responsible for the further development of expenditure management M&E systems, also exhibited a clear conceptual vision, strong technical capacity, and a remarkable logistical ability to introduce its M&E tools within individual agencies. This is not surprising since the project provided support to the division s longstanding efforts in this area. The SIAPER team within the CGR had sound substantive knowledge of the processes pertaining to human resource management in Chile. This knowledge is reflected in SIAPER, which constitutes a valuable administrative tool. However, perhaps as a result of the inherent nature of the CGR, the team was more inward looking than DIPRES and seemingly lacked the dynamism and drive needed to meet the challenges of deploying SIAPER throughout Chile s public sector. (c) Justification of Rating for Overall Borrower Performance Rating: Satisfactory Overall Borrower performance is rated satisfactory for the reasons outlined above. Had it not been for the incomplete implementation of SIAPER, the rating for Borrower s performance would deserve an unqualified Highly Satisfactory, as the performance of DIPRES and the PCU proved outstanding. 6. Lessons Learned Lessons of general application Leadership, clear strategic direction, and commitment are critical for success. DIPRES has led the project from the beginning. Through the passage of the annual budget laws, the project s recommendations have been incorporated. For example, the budget and accounting indicators were simplified and improved in accordance with the IMF s GFSM international standards to better integrate accounting information. Balanced project design and adequate team supervision are critical to achieve agreed intermediate indicators and final goals. As the project s implementation progressed, it was imperative to understand the country s particularities in order to adapt the fully integrated financial management model, generally advocated by the Bank in Latin America and the Caribbean, into a more custom-made model where full integration is not an end but a result of institutional efforts. The aggregation of information is now understood as a result of the coordination among agencies to achieve better results and effective use of scarce public sector resources rather than an obligation of management control. Context matters. The project benefited from a very stable environment, and it has proven an ideal context for institutional reforms. The SIGFE project was instrumental in supporting these reforms process, avoiding any disruption and facilitating an orderly evolution process of modernization. Governance can be strengthened and public efficiency is possible. Chile provides good example for many nations. It has decided to take longer, but critical steps. By doing so, transparency and governance indicators compared with international benchmarks have been stable and even facilitated the increase of foreign investment and economic growth. The efficient allocation of resources and timely reporting have promoted and benefited from efficiency gains. Technology facilitates internal communications and the simplification of bureaucratic processes. Automatization of internal processes reduced red tape and facilitated the flow of 17

28 information and the identification of bottlenecks. The decentralization process and transfer of resources have been accelerated, while central authorities receive budget execution information in real time. It is crucial to incorporate the user into the design and implementation process. A mature information system is best conceived as a system with multiple actors, including those who provide input data and those who use it. Participatory mechanisms such as workshops, focus groups, user groups, and ongoing surveys can be helpful not only in incorporating the users perspective, but also as a pulse-taking mechanism. Training and technical support throughout SIGFE s implementation and beyond are critical. As in many other public sector projects, the process of reform was slower than anticipated. A critical mass of officials at the managerial and operational level had to be trained in the use and benefits of the new instruments. Such activities demanded more time, budget, and effort than initially anticipated. The project was flexible enough to adapt to such needs, and corrections were made in time to train more than 10,000 public officials. Project-specific lessons Learn from pilots. The pilot implementation approach allowed the project to identify problems, develop best practices, and generate economies of scale in the full implementation. Help is needed along the way. It was critical to provide timely and adequate support to users during implementation. The Chilean model supported the development of reports, the facilitation of the different training programs from basic computer use to specific techniques, such as accounting or treasury, and the installation of a help desk able to solve urgent problems on the spot to ease the implementation of the project. Coordination is key. The Central Agencies needed to coordinate both the messages and the actions in order to avoid confusion among the other agencies and to maximize the impact on government functioning. Be open and flexible. Finally, the importance of institutional tolerance to mistakes and the open discussion of alternative solutions protected the project goals. In the case of SIGFE, instead of insisting on following the original plan, the project redesigned the initially complex prototype that was interfering with the dissemination process as soon as it was identified. 7. Comments on Issues Raised by Borrower/Implementing Agencies/Partners (a) Borrower/implementing agencies (for full text in Spanish, see Annex 7) In the Borrower s assessment, the Project achieved its main objective of enhancing the quality and availability of financial information. Other significant outcomes resulting from the project include a deeper understanding of financial management, the strong know-how developed in the areas of project management and service management, as well as increased coordination between rector agencies and the central government in general. The Borrower finds the ICR to achieve its intended purpose, providing a clear and detailed overview of the project s implementation and its achievements. The Borrower, however, wants to emphasize the effort on the part of the CGR team responsible for the development of the human resources management system to overcome the difficulties encountered with the consultant firm that was responsible for the development of SIAPER. Undoubtedly, the implementation of SIAPER will be successfully completed under the follow-up operation. The Borrower wants to emphasize the high degree of complexity of the SIGFE Project, resulting in large part from the challenge associated with transforming financial and accounting practices that were deeply rooted within Chile s public sector. In this regard, the support and personal commitment of the Bank s task manager, Mr. Roberto Panzardi, has been vital in 18

29 ensuring that the implementation process, including procurement procedures, was not only sound and transparent but also dynamic. (b) Cofinanciers N.A. (c) Other partners and stakeholders N.A. 19

30 Annex 1. Project Costs and Financing (a) Project Cost by Component (in US$ Million equivalent) Appraisal Estimate Components (US$ million) Actual (US$ million) Percentage of Appraisal 1. Financial Management Modernization % 2. Budget Reform To Create a Medium-Term Expenditure Framework % 3. Human Resources Management Information System % 4. Strengthening Financial and Human Resources Management Units % 5. Reform Management % Total Baseline Cost % Physical Contingencies 0 0 Price Contingencies 0 0 Total Project Costs % Project Preparation Fund 0 0 Front-end fee IBRD Total Financing Required % (b) Financing Source of Funds Type of Cofinancing (US$ million) (US$ millions) Appraisal Appraisal Actual Percentage of Borrower % International Bank for Reconstruction and Development % 20

31 Annex 2. Outputs by Component CHILE S FIRST PUBLIC EXPNDITURE MANAGEMENT TAL PROJECT OUTPUTS 1. Financial Management Modernization Highly Satisfactory Outputs Anticipated at Appraisal New integrated financial system (SIGFE) implemented in five pilot agencies by end 2002 (including core sub-systems of budget Achieved formulation and execution, and accounting). New integrated financial system (SIGFE) implemented in 25 agencies by end 2003 (including core sub-systems plus cash management and Achieved treasury). New integrated financial system (SIGFE) implemented in 171 agencies by end 2005 (all sub-systems). Achieved (*) (*) Note: All 190 central government agencies integrate their financial information into SIGFE 31 agencies, however, have maintained their own homologated- financial administration systems. All agencies with SIGFE system adhering to commitment control system after 2003, leading to identification of floating debt. Achieved All agencies with IFM system Finance and CGN reporting financial transactions on line to the Ministry of Finance no later than 24 hours Achieved after accounting closing dates. Description of Actual Outputs This component supported a comprehensive effort to modernize and integrate the government s financial management information system, focusing on the development and implementation of an Integrated Financial Management Information System (SIGFE). This component also supported the revision of the Borrower's business processes and norms in accounting, cash management and procurement in order to maximize gains in efficiency, effectiveness, and transparency. The conceptual framework of SIGFE was conceived as an integrated financial management system comprising core sub-systems i.e., budget, accounting, and treasury to be developed during the initial stage, and other sub-systems i.e., public credit, public investment, procurement, and public assets to be developed subsequently. SIGFE is constituted by thee core modules of SIGFE, including: a) the transaction module that records payments and receipts; b) the aggregation module that consolidates financial information; and c) the configuration module that enables the initial loading and subsequent changes of the national budget, the chart of accounts and other institutional or sector classifications. While operationally decentralized, SIGFE operates under normative centralization. DIPRES and CGR share responsibility for its administration. Since its inception, SIGFE has substantially improved the availability and quality of information, thus contributing to greater fiscal transparency in Chile. 21

32 2. Budget Reform to Create a Medium-Term Expenditure Framework - Satisfactory Outputs Anticipated at Appraisal New budget evaluation system implemented in all Achieved agencies in year Budget results implemented in at least 20 agencies, Achieved explicitly linked with MOF in year Improved multi-year financial scenarios presented to Congress from 2004 onward, including alternative Achieved macro-fiscal projections and estimations of future budget costs of policy/program options. Description of Actual Outputs Medium-term expenditure framework: This component supported the strengthening of DIPRES capacity to focus on macroeconomic, fiscal, and public investment policies as a means for deciding on the allocation of resources and the budget in a forward-looking multi-annual context. Multi-year budget planning is now in place. A financial planning tool allows DIPRES to forecast revenues and expenditure at the agency level using a ten-year time horizon. More robust financial planning methodologies have been developed to implement the Structural Surplus (Balance Estructural del Sector Público - BESP), for which the Government has committed itself to achieving structural surplus equivalent to 1 percent of GDP since A panel of independent experts was consulted to develop realistic projections of out-year resource inflows (e.g., long-term price of copper). Alternative recurrent and capital expenditure scenarios are assessed in terms of their impact on the structural balance. The targeted structural balance has been achieved every year since it was adopted. From 2002 onward, DIPRES has presented to Congress a Public Finances Report (Informe de la Finanzas Públicas), which explicitly links the Proposed Budget Law to fiscal policy, the medium-term financial program with a multi-year projection of future revenues and expenditures for three years beyond the year for which the budget is being proposed. The submission of this report is now required by law (Law Nº , Sept. 2003). Result-oriented budget and the further integration of Management, Control and Evaluation (M&E) System into the budget cycle: Under this component, the operation also provided support to DIPRES highly regarded M&E system aimed at enhancing effectiveness and efficiency in the management and control of public expenditures. The system encompasses management and control as well as ex-post monitoring and evaluation. Chile is practically the only country in the region, which has succeeded in developing a management and control system that fully encompasses budget formulation, approval, execution, and monitoring and evaluation, along with mechanisms to provide feedback throughout the budget cycle. Furthermore, the methodologies and systems provide timely and reliable information, which, in turn, enable resources to be allocated on the basis of policy priorities. Some of the tools are: (i) Strategic Definitions; (ii) the Evaluation Program of Government Projects (PERG); (iii) Comprehensive Management Reports; (iv) the Government Competitive Fund; and, (iv) Indicators and Performance Goals included in the budget to enhance the quality of discussion about government programs among line agencies, the Ministry of Finance and Congress. At DIPRES request, a Bank team conducted an independent evaluation of the M&E system and found it to be robust, comprehensive, methodologically sound, systematic and objective. 22

33 3. Human Resources Management Information System - Moderately Unsatisfactory Outputs Anticipated at Appraisal CGO has piloted a new human resources information system (e.g., SIAPER) in 5 agencies by June, Achieved (*) (*) Note: It was achieved in October SIAPER established in at least 200 agencies by Not Achieved Description of Actual Outputs This component supported the design of an information system (i.e., SIAPER) for human resource management and control covering personnel information of all public employees. The development of SIAPER has been completed, including its three modules: (i) personnel information; (ii) management of human resources processes; and iii) generation of reports. In a pilot test, the human resource information now existing in the CGR has been successfully migrated into SIAPER. However, delays in the design and development process have precluded full deployment of the SIAPER in individual government agencies, as originally expected. The implementation stage will be completed under the SIGFE-II follow-up operation. The implementation of SIAPER will bring significant gains in effectiveness, efficiency, and transparency to the administration of human resources in Chile s public sector. It will cover approximately 185 government agencies and 35 municipalities, with an estimated of 8,000 users. SIAPER s consultation module would provide access to roughly 360,000 electronic personnel files to the employee, his/her supervisors and those deciding on transfers and promotions. SIAPER will also administer the electronic processing of approximately 600,000 personnel-related processes per year. This will result in substantial reductions in paperwork and bureaucratic red tape, as well as in enhanced transparency, as the system will identify those responsible for taking action at every stage of the process, decision outcomes when applicable, delays, etc. Finally, SIAPER will also provide managers, including those at the central agencies (DIPRES and CGR) a comprehensive rendition of the human resources within each agency, a critical input for improving allocation and management decisions. 4. Strengthening Financial and Human Resource Management - Moderately Satisfactory Outputs Anticipated at Appraisal Agencies successfully implementing SIGFE and SIAPER systems in line with above schedules. Achieved for SIGFE Not Achieved for SIAPER Description of Actual Outputs The expansion of SIGFE since its inception in 2002 has been remarkable. Currently, SIGFE s transaction module, which records budget and accounting data, commitments, and cash transactions, is now operational in 349 out of the 391 agencies within the central government (equivalent to 90 percent coverage within the central government). This includes the totality of the health sector with 192 public hospitals. The remaining 31 agencies are still operating their own financial administration systems; they feed standardized financial information to SIGFE on a periodical basis, thus permitting the consolidation of financial accounts for the central government. Overall, there are close to 7,000 registered users in 1,313 financial management units (Unidades de Administración Financiera - UDAFs). They handle budget, accounting, and cash management operations using the standardized norms, procedures, and information software defined by SIGFE. The implementation of SIGFE has resulted in substantial capacity building among central government agencies as a result of formal training to support the deployment process, as well as hands-on experience resulting from the direct use of a modern management tool. Unfortunately, SIAPER has not yet been implemented. Its implementation will be supported under the SIGFE-II operation, which has been recently approved. 23

34 Annex 3. Economic and Financial Analysis No standard financial analysis was conducted at appraisal since the operation was a technical assistance project. However, evidence from individual agencies suggests that the implementation of SIGFE has resulted in substantial efficiency gains in terms of time, monetary and human resources (see Section Achievement of Project Development Objectives). Moreover, the costs associated with SIGFE s development, implementation and operation are estimated to be substantially lower than those of comparable systems using local providers and world-class solutions (see Table 3.1). Additional non-quantifiable benefits can also be expected in terms of transparency and increased investor and citizen confidence in government budget projections and fiscal discipline. Table 3.1. Comparison of Maintenance and Operations Costs (US$) Cost Description Cost of software y hardware for 5.5 years, implementation in 159 government agencies and training for roughly 10,000 users. Estimated annual operation cost SIGFE (US$) Local Provider (US$) World Class Provider (US$) 18,750,478 41,048,000 82,595,000 9,000,000 6,750,000 6,750,000 for a total of 4.5 years Total Cost 27,750,478 47,798,000 89,345,000 Source: SIGFE,

35 Annex 4. Bank Lending and Implementation Support/Supervision Processes (a) Task Team members Lending Roberto O. Panzardi Ronald Myers Juan Navas-Sabater Martha Molares Jaime Roman Andres Mac Gaul Susana Cirigliano Xiomara Morel Osvaldo Albano Peter Gregory Names Title Unit Task Manager Sr. Public Sector Specialist Team Leader Principal Public Sector Management Specialist Information and Communication Technology Specialist Counsel Lead Procurement Specialist Procurement Specialist Financial Management Specialist Senior Financial Management Specialist Integrated Financial Management Specialist Civil Service Specialist LCSPS LCSPS CITPO LEGLA LCOPR LCOPR LCOAA LOAG3 CONS CONS Sandra Alborta Language Program Specialist LCSPS Supervision/ICR Roberto Panzardi Carmen Zuleta Edgar Rosas Marcelo Barg Task Manager Sr. Public Sector Specialist Financial Management Specialist ICT Specialist Administration Specialist LCSPS CONS CONS CONS Andrés Mc Gaul Procurement Specialist LCOPR Livio Pino Procurement Specialist CONS Marcos Makón Budget Specialist CONS Gerardo Uña Financial Management Specialist CONS Juan Navas Sabater Information and Communication Technology Specialist CITPO Luis Guillermo Babino Budget Consultant CONS Rodrigo Andres Cofino Consultant CONS Wolfgang K. C. Koehling Economist LCSPS Ronald E. Myers Sector Manager ECSPE Fernando Rojas Lead Public Sector Management LCSPS Silvio V. Solarte Leiton ICT Specialist CONS Responsibility/ Specialty 25

36 (b) Staff Time and Cost Staff Time and Cost (Bank Budget Only) Stage of Project Cycle US$ 000 No. of staff weeks (including travel and consultant costs) Lending FY FY FY FY FY FY FY FY Total: Supervision / ICR FY FY FY FY FY FY FY FY Total:

37 Annex 5. Beneficiary Survey Results N.A. 27

38 Annex 6. Stakeholder Workshop Report and Results N.A. 28

39 Annex 7. Summary of Borrower's ICR and/or Comments on Draft ICR La dirección del Proyecto SIGFE, concuerda en términos generales con la evaluación de los resultados de este que hace el Banco a través del informe. Considerando que, al año 2002, los objetivos del proyecto se enfocaban en mejorar la calidad y oportunidad de la información financiera, se debe reconocer que en tal aspecto los logros del proyecto son muy relevantes. También ha sido muy valiosa la experiencia acumulada en distintas dimensiones: conocimiento del negocio, gestión de proyectos, gestión de servicios, coordinación de organismos rectores y relacionamiento con las entidades del Gobierno Central. Todas ellas constituyen un valioso activo para la nueva etapa que se inicia. El presente informe de cierre del Proyecto no nos merece objeciones, por el contrario nos parece un muy buen informe en el sentido que cumple cabalmente con su objetivo, al reflejar clara y detalladamente el desarrollo del Proyecto considerando de manera adecuada los logros en sus diferentes componentes. Una observación que nos cabría efectuar, se refiere a la percepción del informe con respecto al logro parcial del Sistema de Información de Recursos Humanos. Específicamente respecto de este sistema, nos parece destacable el esfuerzo llevado a cabo por parte de la Contraloría General de la República a pesar de las dificultades que ha debido enfrentar, derivadas en parte importante por los obstáculos en su relación con la empresa consultora externa que tuvo a cargo el desarrollo del sistema. No obstante ello, su estado de avance permite estimar el pronto término de la fase de desarrollo e inicio de la implantación del sistema, por tales razones su continuidad ha sido considerada en la próxima etapa de SIGFE. Finalmente es preciso destacar la alta complejidad de este Proyecto, debido principalmente a la necesidad de transformar estructuras y prácticas muy asentadas y enquistadas en el área financiero contable del sector público de nuestro país. Para ello se requería de una actitud muy comprehensiva respecto del desarrollo y la implementación del Proyecto. En tal contexto la contraparte del Banco Mundial dirigida por el señor Roberto Panzardi ha sido una gran ayuda, comprometiéndose fuertemente con el proyecto, facilitando el dinamismo necesario para llevar adelante la tarea, convocando oportunamente a los expertos pertinentes que fueron requeridos, y muy importante, facilitando los contactos y comunicaciones a través de la burocracia del Banco en especial en el área de adquisiciones al confiar en la transparencia y probidad de nuestra institucionalidad. 29

40 Annex 8. Comments of Co-financiers and Other Partners/Stakeholders N.A. 30

41 Annex 9. List of Supporting Documents Berner, H. (2007), Sistema de Control de Gestión y Presupuesto por Resultados: La Experiencia Chilena,DIPRES, División de Control de Gestión, Ministry of Finance, PowerPoint Presentation, March 2007, Santiago de Chile. DIPRES (2006), Informe de Finanzas Públicas Proyecto de Ley de Presupuestos del Sector Público para el año 2007, Ministry of Finance, Oct. 2006, Santiago de Chile. DIPRES (2007), Estadísticas de las Finanzas Públicas: Ministry of Finance, July 2007, Santiago de Chile. DIPRES (2006), Estadísticas de las Finanzas Públicas: , Ministry of Finance, Aug. 2006, Santiago de Chile. DIPRES (2005), El Proceso Presupuestario en Chile, Aspectos Generales: Marco Legal, Actores Institucionales, Principales Aspectos de Modernización, Ministry of Finance, Sept. 2005, Santiago de Chile. DIPRES (2005), Sistema de Control de Gestión y Presupuestos por Resultados La Experiencia Chilena, División de Control de Gestión, Ministry of Finance, Sept. 2005, Santiago de Chile. IMF (2005), Chile: Report on Observance of Standards and Codes Fiscal Transparency, IMF Country Report No. 05/262, July 2005, Washington, D.C. IMF (2003), Chile: Report on Observance of Standards and Codes Fiscal Transparency, IMF Country Report No. 03/237, August 2003, Washington, D.C. Panzardi, R. (2005), Chile: Towards Results-Oriented Budgeting, En Breve, Issue No. 81, November 2005, World Bank, Washington, D.C. World Bank (2005), Chile: Estudio de Evaluación de Impacto del Programa de Evaluación de Programas, Evaluaciones de Impacto, y Evaluaciones de los Programas del Gobierno, Report No CL, PREM, LAC, Washington, D.C. World Bank (2002), Chile: Project Appraisal Document on a Public Expenditure Management Technical Assistance Loan, Report No CH, January 22, 2002, Washington, D.C. World Bank ( ), Documents in Project s Electronic File, including Loan Agreement, Aide Memoirs, Back-to-Office Reports, Project Status Reports, Project Financial Assessments, and Project Procurement Assessments; IRIS, Washington, D.C. 31

42 List of People Interviewed SIGFE Project Coordination Unit Rodolfo Sepulveda (SIGFE Vice-Project Coordinator) Leonardo Sánchez (SIGFE Financial Development Coordinator) Mario Araneda (SIGFE ICT Coordinator) Carlos Emilio Jaque (SIGFE Administrative Coordinator) María Isidora Bustos (SIGFE Team leader) Andrés Pino Godoy (SIGFE Team leader) Zunilda Díaz Rojas (SIGFE Team leader) Maricarmen González (SIGFE Team leader) Eleonora Araneda (SIGFE Team leader) Claudia Muñoz Suazo (SIGFE) Wilson Cáceres (SIGFE) Natalio Pellerano (SIGFE) SIAPER Project Coordination Unit Sonia Doren Lois (CGO/SIAPER Project Coordinator) Patricia López Álvarez (CGO/SIAPER) José Luis Pedreros (CGO/SIAPER) Other Government Entities Pedro Ortíz (CGO - Accounting Division) Luis Tellez (CGO) Heidi Berner (Evaluation Division - DIPRES) Iris Quintana (CONAFE) Enrique Navarro (CONAFE) Elisa Irarrazabal (CONAFE) Raúl Fernández Cofian (MINVU) Patricia Soto (MINVU) Alicia Nadeau Molina (SENAME) Doris Martinez (SENAME) Karina Sepulveda (Health Services Metropolitan Region South) Ignacio Díaz (Hospital Exequiel González Cortéz) Others Marcela Guzmán (former DIPRES) 32

43 33