Sao Tome - ISP for Customs Administration Public Expenditure Management ISP-CAPEM - IPR April 2024

Implementation progress and results report ipr a. report summary and proposed actions report data project name: isp for customs administration public expenditure management isp -capem project code: p-st-kf0-004 country sao tome sector: institutional support environmental categorization 3-low es risks and report type: date of report: 14.04.2024 mission: launching 1 from: 03.04.2024 to: 04.04.2024 prepared by task manager: fenwick dingiswayo kamanga alternate task manager : division manager : gebre -selassie kalayu ecgf2 project data project financing in uac financing sourceinstrument foreign currency local currency totalfragile states facility inssupregrant 3,997.00 4,996,003.00 5,,.00t o t a l 3,997.00 4,996,003.00 5,,.00processing milestones bank approved financing only loan number date approved date signed date of entry into force date effective for first disbursement disbursement deadline 5900155018651 28.11.2023 11.12.2023 11.12.2023 03.04.2024 31.12.2027 loan amount in uac loan number net loan approved uac signed uac cancelled uac net loan uac 5900155018651 5,,.00 5,,.00 5,,.00 0.00 5,,.00 t o t a l 5,,.00 5,,.00 0.00 5,,.00 disbursment status at supervision date in uac loan number disbursed to date disbursed to date uac disbursed to date undisbursed to date in uac undisbursed to date 5900155018651 0.00 0.00 0.00 5,,.00 100.00 t o t a l 0.00 0.00 5,,.00 100.00 executing and implementation agencies borrower ministere d u plan et finances la coop.guarantor gouvernemnt de sao tome and principe ministere de economie et des financesexecuting agency ministere d u plan et finances la coop.performance status progress towards development objective rating on development objective do performance rating summary of key findings current previous outome level targets are rated highly satisfacory while output level targets are rated satisfactory. at output level, there is need for government to expedite the process for finalising the safe -e assessment to pave way for procuring a safe -e consultant. tors for all consulting services have also to be submitted and procure ment processes to be initiated. satisfactoryimplementation progress rating on implementation progress ip performance rating summary of key findings current previous recruitmebt of procurement and fm officers to be expedited. similiarly, annual work plan, training plan and procurement plan have to be submitted for clearance. satisfactoryoverall project performance classification overall project performance pp, or n performance rating summary of key findings current previous this in a non problematic project. none of the ip level indicators is rated below unsatisfactory for it to qualify to be a potentially problematic project. non potentialy problematic projectissues, risks and actions for management consideration issues affecting project implementation key issues corrective actions responsible deadline status program monitoring -government unresponsiveness to provide updates on progress may affect smooth monitoring and delay attainment of project objectives government strengthen project oversight and ensure there exists strong team for project implementation ministry of planning and finance 31.12.2024end of first year of implementation in progress slowness in considering and approving legal and strategic frameworks may affect timely implementation of project activities, e.g. on development of procurement guidelines government to follow -up with the national assembly and council of ministers on approval of bills and strategic documents ministry of planning and finance 30.06.2024end of first 6 months of implementation in progress absence of procurement and fm officer may affect timely and efficient execution of project activities while waiting to recruit procurement and fm officers, government to designate experienced staff to support the project. ministry of planning and finance 30.05.2024urgent required action to be undertaken in progressmain risks and mitigation risks mitigation measures applied or proposed responsible deadline macroeconomic stp's vulnerability to external shocks remains a major source of risk. this has been heightened by the war in ukraine, slowing global growth and tightening of global monetary conditions continue implementing reforms designed to contain the fiscal deficit, bring public debt on a declining path, and address structural challenges under the new imf program ministry of planning and finance 31.12.2027 implementation capacity to implement reforms weak project implementation capacity could lead to start -up delays, weaken ownership of reforms, and affect pace of project implementation the bank through isp -capem will provide complementary ta and capacity building in key areas to help implement reforms. this is also with a view to increasing ownership, which is important for a timely implementation of reforms. ministry of planning and finance 31.12.2027 fiduciary risk the updated country fiduciary risk assessment cfra conducted by the bank for stp in 2023 indicates that the overall residual risk level is deemed substantial, taking into account the risk mitigation factors. the project will use bank's financial management and procurement methods and procedures as well as disbursement handbook. the project targets three key areas of weakness, enhancing financial reporting, the procurement framework and strengthening internal a nd external audits. ministry of planning and finance 31.12.2027 operational capacity weak ict and infrastructure may affect performance of automated systems on-going projects on improving ict and energy infrastructure will help in improving internet connectivity and stability ministry of infrastructure and ict 31.12.2027 b. results reporting and assessment progress towards development objective project purpose state the project development objective usually the project purpose as set out in the results -based logframe and assess progress the overarching development objective of the proposed project is to improve revenue collection and strengthen capacity in public expenditure management through modernized customs administration, efficient borrowing framework, robust financial management i nformation systems, transparent public procurement, and oversight. this will be done through a customs administration modernization and sustainable public debt management aimed at increasing collection of trade revenue, improving efficiency and effecti veness in controlling legitimate trade operation, and sustainable borrowing ; and b stren gthening public expenditure management and oversight through development of an integrated financial management information system, enhancing transparency and accou ntability in the use of public resources, and combatting illicit financial flows. the project has three components, namely: a customs administration modernization and sustainable public debt management; b strengthening public expenditure management ; and c project management outcome reporting outcome indicators as per rlf baseline value most recent value end target progress toward endtarget assesment improved moblisation of customs revenue and public debt sustained cpia score on economic management - debt policy cpia score out of 6 s16 2. 2. 3. 0.00 achievedlikely to be achieved latest data unavailableincreased tax revenue to gdp taxgdp ratio gp 15.600 15.600 18.600 0.00 achievedlikely to be achieved latest data unavailablestrengthened public expenditure management and oversight cpia score on governance [cpia score out of 6] s16 3.200 3.200 3.700 0.00 achievedlikely to be achieved latest data unavailableoutcome rating rating on project outcomes performance rating summary of key findings current previous all the three outcome level targets are expected to be achieved. 4output reporting output indicators most recent value annual target end target progress towards annual target progress towards end of project target assessment customs administration modernized and trade environment improved staff trained and sensitized on use on upgraded customs administration system number of staff nbr 0. 0.00 50. 0.00 0.00 on track awaiting signing of mou between government and unctad to start the upgrade process sydonia world system of 2010 upgraded to window based version data migrated yn no na yes na na on track mou between government and uncatad for system upgrade being processed for signature enhanced capacity and transparency in public debt management staff of dmo and national debt management committee trained and oriented on debt management debt borrowing planning, debt sustainability analysis and reporting nbr 0. 0.00 30. 0.00 0.00 on track training awaiting for operationalisation of debt committee and funds disbursement [women] -staff of dmo and national debt management committee trained and oriented on debt management debt borrowing planning, debt sustainability analysis and reporting nbr 0. 0.00 9. 0.00 0.00 on track waiting for operationalisation of the debt management committee and funds disbursement medium -term debt strategy and borrowing plan developed yn no na yes na na on track mdts being drafted strengthened financial management information system additional institutions connected to safe -e igf,tdc, cossil nbr 0. 0.00 3. 0.00 0.00 not on track waiting for engagement of service provide to develop safe -e system safe -e developed and operational with budget module yn no na yes na na not on track technical assessment for sidonia underway. delay to conclude the assessment pose a high risk to timely engagement of service provider for system development enhancing capacity in management of public resources public procurement regulations and standard bidding documents for goods, works and services developed yn no na yes na na on track development of regulations awaiting approval of the procurement bill strategy on combatting money laundering and financing of terrorism developed yn no na yes na na on track process to engage a consultant to develop the amlcft strategy being initiated framework for climate change mainstreaming in the public sector developed yn no na yes na na on track waiting for submission of tors for engagement of consultant to develop framework for climate change mainstreaming in the public sector development of gender budget guidelines for gender mainstreaming in the public sectoryn no na yes na na on track process to develop guidelines yet to be initiated staff from mpfbe, garfip, dtei, procurement authority, tdc, igf trained nbr 0. 10.00 100. 0.00 0.00 on track waiting for a training needs assessment [women] -staff from mpfbe, garfip, dtei, procurement authority, tdc, igf trained nbr 0. 3.00 30. 0.00 0.00 on track waiting for a training needs assessment output rating rating on project outputs performance rating summary of key findings current previous save for safe -e related targets two in total, all targets are expected to be achieved. however, government needs to move with speed in submission of tors for engagement of service providers and consultants. 3development objective do rating progress towards development objective rating on development objective do performance rating summary of key findings current previous outome level targets are rated highly satisfacory while output level targets are rated satisfactory. at output level, there is need for government to expedite the process for finalising the safe -e assessment to pave way for procuring a safe -e consultant. tors for all consulting services have also to be submitted and procure ment processes to be initiated. satisfactoryadditional andor unanticipated outcomesoutputs optional indicator baseline end target most recent value

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