Implementation Status & Results Indonesia Initiatives for Local Governance Reform Project (P076174)

Transcription

1 Public Disclosure Authorized Public Disclosure Authorized The World Bank Implementation Status & Results Indonesia Initiatives for Local Governance Reform Project (P076174) Operation Name: Initiatives for Local Governance Reform Project (P076174) Project Stage: Implementation Seq.No: 8 Status: ARCHIVED Last Modified : 14-Apr-2011 Country: Indonesia Approval FY: 2005 Product Line: IBRD/IDA Region: EAST ASIA AND PACIFIC Lending Instrument: Specific Investment Loan Implementing Agency(ies): Ministry of Home Affairs, MOHA, Bappenas Key s Board Approval 09-Jun-2005 Original Closing 30-Sep-2009 Planned Mid Term Review 31-May-2007 Last Archived ISR 13-Sep-2010 Effectiveness 07-Apr-2006 Revised Closing 30-Sep-2011 Actual Mid Term Review 27-Apr-2009 Project Development Objectives Project Development Objective (from Project Appraisal Document) There will be no change to the Project Development Objectives/Outcomes (PDO). The PDO is to pilot support to district (kabupaten) governments in improving transparency, accountability and public participatory practices and in undertaking reforms in financial management and procurement. 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 Local Governance Reform 1.50 Poverty Targeted Investments Implementation Support 9.95 Overall Ratings Previous Rating Current Rating Progress towards achievement of PDO Satisfactory Satisfactory Overall Implementation Progress (IP) Satisfactory Satisfactory Overall Risk Rating Implementation Status Overview The project well on track in achieving it development objective, and has already attained or exceeded most of its targets. Financial management and procurement reforms and capacity building carried out under the project have significantly improved transparency, accountability, public participation, and local government performance in the 14 participating districts. Almost all of the districts now routinely make public the summaries of their annual budgets, accountability reports, and procurement plans, as well as the estimated amounts of public contracts. The project is now focused on implementing and scaling up more advanced governance improvements in some districts. The project has also financed 249 poverty-targeted investment sub projects that were identified by local governments with input from stakeholders. These sub projects include investments in water supply, Page 1 of 10

2 transportation, irrigation, and school buildings for community use. Seven more sub-projects will be completed before the project closes. Early assessments indicate that the quality of the sub projects is good and the benefits they provide to local communities is significant. Results Project Development Objective Indicators Extent to which recommendations from consultations/public hearings are incorporated into district plans and regulations (perdas) Limited public consultation in policy formulation prior to ILGRP preparation ( ) 21-Dec-2006 The public consultation for draft of Local Budget and draft of local regulations has been implemented in 12 of 14 districts. increasing number of consultation in > 12 districts. Greater public availability of information, in particular financial and procurement information. No legal framework nor active information dissemination prior to ILGRP Preparation. 21-Dec LGs have announced the Summaries of Budgets and the Accountability Reports, and 12 LGs announced district's procurement plan andthe estimated contract amount. increasing announcement in > 12 districts. Page 2 of 10

3 At least 10 district budgets show increases in poverty targeted expenditures by the end-of-project (EOP). In 4 districts surveyed in PRSAP Review, in average 20% of the 2006 budgets was allocated for poverty targeted expenditures. 04-Oct-2007 According to survey in 2007, 1 increased percentage of poverty district showed significant increase targeted expenditures in 10 of poverty targeted expenditures in districts 2007 (from 21% to 56%), butnot in the other 3 districts surveyed. No survey has been carried out in Final Project Evaluation will cover the survey to this topic that expected to be completed prior to project closing. EIRR for project-funded infrastructure (>15%). Not applicable. According to EIRR study in 2009, EIRR is >15% of the sampled subprojects which covers 50% of ILGR participating districts and sampled about 30% of the first investment subprojects: roads, bridges, irrigation channels, and water supply, the average EIRR is 24.6%. The highest EIRR is in water supply, followed by irrigation channels, roads, and bridges. The indicators used are: saving of transportation costs/spending on water and time, increase of production and cultivated areas. There is no plan to carry-out another EIRR study prior to project closing. Page 3 of 10

4 At least 10 district governments practicing accepted standards of procurement as verified by audits and studies by EOP. Procurement assessment, through CPAR in , identified that by all accounts, the public procurement system in Indonesia (includes of all local governments) is not function well, have limited capacity and less than satisfactory procurement systems 31-Dec-2001 Action plans for reforms in Procurement have been prepared by 14 districts, which 12 of 14 districts have conducted the procurementsurvey regarding local contractor perception of procurement process in each district. The procurement survey was conducted by M&E Secretariat in October districts practice accepted standards of procurement. At least 10 district governments practicing sound financial management as verified by studies by EOP. FM assessment in 7 districts (2007) shows the score of fulfilling PFM Measurement framework for Lamongan is 75%, Bantul 74%, Bandung 72%, Ngawi 66%, Bulukumba 65 %, Boalemo 63% & Bolmong 59%. 04-Oct-2007 FM assessment in the sampled 7 districts in 2009 shows the score of fulfilling PFM Measurement framework for Kebumen is 74%, Magelang 74%, Lebak 67%, Takalar 64%, Solok 74%, Gowa 71%, and Tanah Datar 75%. In general, these scores shown that districts have well implemented financial management principals, as requested by the regulation. However, according to opinion from Indonesia Financial Audit Agency (BPK) for the above district financial report, it is acknowledged that they were still facing challenges in the area of asset management. 10 districts practice sound financial management. Page 4 of 10

5 % increase in stakeholder satisfaction with government service delivery. JSDF-PBET survey (2006) indicates that of the top 5 used public services in 13 districts, customer satisfaction rating is 60%. 04-Oct-2007 User-based survey was conducted increased stakeholder satisfaction in 2008, evaluated three public in participating districts. service sectors, which are public health service, irrigation service, and free basic education service in three different districts. The respondents were asked to identify the most crucial issues in these three sectors. Lack of medical staff, short clinic hours and low quality and quantity of medicine for health service; inadequate maintenance, lack of government monitoring for infrastructure quality, and completeness of supporting facility for irrigation service; and withhold information on the free education service were identified as the most crucial issues that needs to be improved bythe LGs. Final project evaluation in 2011 will cover a survey to evaluate community's satisfaction to public administration services. Intermediate Results Indicators 14 districts meet entry requirements Page 5 of 10

6 10 LGs issue local regulations on mechanism for public consultation & access to information and functioning satisfactorily by EOP 12 LGs passed local regulations on access to information and decision making process. 14 districts passed local regulations on access to information and decision making process. 10 districts issue local regulations Poverty reduction strategies and action plans are issued and implemented in 10 districts During project preparation, 14 districts were assisted to prepare poverty reduction strategies and action plans (PRSAPs) During , four out of fourteen districts have reviewed and revised their PRSAP and some of it was integrated to the other poverty alleviation strategies in district. 10 districts issue and implement PRSAPs Action plans in FM reform are prepared and implemented by 10 districts 14 districts have prepared action plans for reforms in financial management and implemented all of the Entry and Pre-Investment requirements, and 12 districts have implemented all of the Investment Year 1 Action Plan and all of the Investment Year 2 Action Plan. 10 districts prepare and implement FM action plans Page 6 of 10

7 A minimum of 24 sub-projects supported by mid-term and 72 subprojects supported by EOP, all following proper technical, financial and procurement procedures. 249 sub-projects already completed and the remaining seven sub-projects are to be completed by May Feb sub-projects suported by EOP 10 project districts receive capacity development assistance in the core governance reform areas (transparency and participation, procurement and financial management) 15 districts received capacity building and TA mainly on Transparency and Participation area during Project Preparation phase ( ) 14 districts have received and will continue receive training/ workshops on procurement, FM, safeguard, transparency & participationup to the end of 2010, in addition to facilitation delivered by district facilitators, regional management consultants, and nationalmanagement consultants. 10 districts receive capacity development in all reform areas. 8 staff at the center supporting project monitoring and implementation, 8 regional staff supporting project implementation and monitoring, 20 staff supporting kabupaten governments 8 staff at the center supporting project monitoring and implementation, 8 staffs at regional level, and 26 staffs supporting LGs. 8 staff at center, 8 at regional and 20 at kabupaten level. Page 7 of 10

8 Project M&E system in place and providing accurate timely data on progress and outcomes Study on EIRR, Mid-Term Evaluation, and Procurement Survey were carried out in An exit strategy activity has been completed by end of The system is in place and functioning. Complaints received resolved satisfactorily. Complaint resolution mechanism is included in the manual, but has not been properly working. However, several complaints have been received and resolved, particularly conveyed through the project website. Complaints were recorded in a database Action plans in Procurement reform are prepared and implemented by 10 districts 14 districts have prepared action 10 districts by EOP plans for reforms in Procurement and implemented all Entry and Pre-Investment requirements and 12districts have implemented all of the Investment Year 1 Action Plan and Investment Year 2 Action Plan. Page 8 of 10

9 Data on Financial Performance (as of 10-Mar-2011) Financial Agreement(s) Key s Project Loan No. Status Approval Signing Effectiveness Closing P IBRD Effective 09-Jun Oct Apr Sep-2011 P IDA Effective 09-Jun Oct Apr Sep-2011 P TF Closed 07-Apr Apr Apr Mar-2007 P TF Closed 13-Oct Oct Oct Mar-2005 P TF Closed 15-Mar Mar Mar Dec-2008 P TF Closed 07-Apr Apr Apr Dec-2010 Disbursements (in Millions) Project Loan No. Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P IBRD Effective USD P IDA Effective USD P TF Closed USD P TF Closed USD P TF Closed USD P TF Closed USD Disbursement Graph Page 9 of 10

10 Key Decisions Regarding Implementation. Restructuring History Board Approved on 10-Sep-2009, Level two Approved on 14-Dec-2010 Related Projects There are no related projects. Page 10 of 10