Implementation Status & Results Indonesia Local Government and Decentralization Project (P111577)

Transcription

1 Public Disclosure Authorized Public Disclosure Authorized The World Bank Implementation Status & Results Indonesia Local Government and Decentralization Project (P111577) Operation Name: Local Government and Decentralization Project (P111577) Project Stage: Implementation Seq.No: 4 Status: ARCHIVED Archive : 23-Oct-2013 Country: Indonesia Approval FY: 2010 Product Line: IBRD/IDA Region: EAST ASIA AND PACIFIC Lending Instrument: Specific Investment Loan Implementing Agency(ies): Ministry of Public Works, Secretariat General, BPKP, Ministry of Finance, Bappenas Key s Board Approval 08-Jun-2010 Original Closing Planned Mid Term Review 31-Dec-2012 Last Archived ISR 05-Mar-2013 Effectiveness 20-Jan-2011 Revised Closing 31-Dec-2014 Actual Mid Term Review 03-Jun-2013 Project Development Objectives Project Development Objective (from Project Appraisal Document) The objective of the project is to improve the accountability and reporting of the central government s Specific Purpose Grants (DAK) for the infrastructure sub-sectors within pilot local governments (LGs). This will be done through improved financial and technical reporting, and verification of outputs delivered by LGs with the DAK grants. Has the Project Development Objective been changed since Board Approval of the Project? Yes No Component(s) losure Authorized Public Disclosure Authorized Component Name Component Cost DAK Reimbursement Insitutional Strengthening to Central and Local Governments and Project Management Support 8.50 Verification of Outputs 4.50 Overall Ratings Previous Rating Current Rating Progress towards achievement of PDO Moderately Satisfactory Satisfactory Overall Implementation Progress (IP) Moderately Satisfactory Satisfactory Overall Risk Rating Substantial Moderate Implementation Status Overview Key implementation highlights during the period include: (i) a Project restructuring in April 2013; (ii) the processing of GOI FY2012 reimbursement bringing total disbursements to USD 122.8m; (iii) the conclusion of an institutional support mission and Mid-Term Evaluation; and (iv) the decision of GOI to pursue an Additional Financing of the Project. The restructuring that was completed in April 2013 has improved the results of the project implementation, as reflected in the BPKP s verification results and findings from a rigorous Page 1 of 6

2 mid-term evaluation which conducted during the period (the results of which are attached to this ISR). Key findings include increased rate of qualifying percentage of eligible contracts to be reimbursed at the LG level (89% in GOI FY2012), high rate of LG compliance on submitting DAK reports using WBRS (56%%), and general validation of the verification model, amongst other findings In parallel to the restructuring, the Bank and the GOI have made a series of additional process adjustments including: (i) a revision of the Verification Arrangement (MOU) with BPKP; (ii) an updating of the Verification Manual and Checklist; (iii) a recalculation of the Reference Unit Cost (RUC) table based on actual DAK contracts; and (iv) a revision of the TORs of the audit arrangements with BPK, amongst other items. Locations Country First Administrative Division Location Planned Actual Indonesia Not Entered Propinsi Kalimantan Tengah Not Entered Not Entered Propinsi Kalimantan Tengah Indonesia Not Entered Propinsi Jawa Timur Not Entered Not Entered Propinsi Jawa Timur Indonesia Not Entered Propinsi Jambi Not Entered Not Entered Propinsi Jambi Not Entered Not Entered Propinsi Jambi Indonesia Not Entered Propinsi Maluku Utara Not Entered Not Entered Propinsi Maluku Utara Indonesia Not Entered Provinsi Sulawesi Barat Not Entered Not Entered Provinsi Sulawesi Barat Results Project Development Objective Indicators Page 2 of 6

3 Indicator Name Core Unit of Measure Baseline Current End Target Development and use of an information system Percentage Value to which LGs report information to the MoF and the MPW The information system is not yet in place. During the project implementation, the WBRS will be developed both in MoF and MPW, andlinked to LG systems. Physical outputs reported, verified, and meeting eligibility criteria The WBRS is in place although the level of utilization is only reached 65% of participating districts that submitted their technical reports around 56% submitted financial reporting through WBRS WBRS will be used to submit the technical and financial reports of DAK outputs. It is expected to be accessible by GOI and all participating LGs by the end of project. Percentage Value Eligibility criteria include physical realization of outputs (construction completion certificate and compliance 13-May-2013 BPKP's second verification of outputs show that, by value, 64% of total DAK allocation was verifiable. Number of Focusing on the infrastructure sectors within the pilot provinces, it is expected to measure the qualifying with Technical Specifications), sampled contracts and the percentage (QP) of contracts compliance to national procurement Perpres 54/2010, and compliance to qualifying percentage that is eligible for reimbursement is 89%. Most of ineligible in a sample of outputs reviewed by BPKP that comply with eligibility criteria MPW Supplement Technical contracts are due to mismatch for reimbursement by the Guidelines, which include Safeguards. in the RUC. project. Intermediate Results Indicators Indicator Name Core Unit of Measure Baseline Current End Target Percentage of LGs that receive DAK payment Percentage Value from MoF by March 31. The baseline covers all DAK funds recipient districts. 02-Apr-2013 The MoF and the MPW Web-based reporting system (WBRS) fully operated Based on BPKP's report, 76% of total participating districts have received their first DAK payment from MOF by March 31, 2013 The target is to encourage MOF to transfer DAK funds on-time. Percentage Value No system is in place. The on-line WBRS is currently This is an end-of-project in place target. Page 3 of 6

4 Percentage of LGs reporting financial information and outputs through the MoF and MPW web-based systems Supplement of MPW Technical Guidelines on Safeguard issued by MPW Ministerial Circular letter MoF produce annual M&E reports for the project, mid-term evaluation report and final evaluation report Number of eligible outputs completed by LGs by December 31 Percentage of LGs that have passed their budgets and allocated contribution for the DAK by February 28 Percentage Value The LGs are currently submitting financial and technical report manually, since the web-based system is not in place yet. In total, around 65% of participating LGs submitted technical reports using WBRS, and 56% submitted financial reports using WBRS Text Value The original MPW Technical Guidelines do not include Safeguards issues. MPW Technical Guidelines with Safeguards requirements have been socialized and used by all participating Provinces The target has achieved. A regular socialization of the MPW guidelines was held in all participating provinces Text Value N/A The PIU has submitted M&E report on December 2012 and quarterly project progress reports during the first half of 2013 Requirement pertains to project activities, and does not have a logical baseline M&E report for 2012 was submitted on-time Number Value DAK outputs 2010 are not Based on BPKP's first eligible and will not be verification of outputs in 2012, verified, since the MPW 97 % have completed outputs Supplement Technical by December 31, 2012 Guidelines has only been issued on January 20, Issuance of the MPW Supplement Technical Guidelines, include Safeguards. Annual and quarterly project report and IFRs, Annual M&E, Mid-Term Evaluation, and Final Evaluation Reports are submitted on time. The number of eligible outputs might change subject to the total allocation each year. It is expected that all outputs completed by December 31 will be eligible for DAK reimbursement. Percentage Value The project is encouraging LGs to pass their budgets earlier, so that they can receive DAK first payment 02-Apr-2013 There were 59 out of 77 participating districts that have passed their budget by February 28, MOF At the end of the project, it is expected that all participating LGs passed their budget and Page 4 of 6

5 Data on Financial Performance (as of 12-Aug-2013) Financial Agreement(s) Key s from MoF by March 31 each year. requested additional requirements to LGs before they can receive the first DAK allocation allocated contribution for DAK by February 28, each year. Project Ln/Cr/Tf Status Approval Signing Effectiveness Original Closing Revised Closing P IBRD Effective 08-Jun Jun Jan Dec-2014 Disbursements (in Millions) Project Ln/Cr/Tf Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P IBRD Effective USD Disbursement Graph Key Decisions Regarding Implementation The Government of Indonesia has requested the Bank to continue with a two-years Additional Financing for the program to expand to around eight Provinces, which the team is currently preparing Restructuring History Page 5 of 6

6 Level two Approved on 01-Apr-2013 Related Projects P Local Government and Decentralization Project Additional Financing Page 6 of 6