IRAQ: Public Financial Mgmt Reform

Development Objective

The Project Development Objective is to support the Government of Iraq's efforts to develop more effective, accountable and transparent public financial management. Support will be provided for strengthening budget management, improving public financial reporting and control, strengthening public procurement, and establishing the tools, systems and institutions required to build capacity for effective public financial management.

Key Details

Project Details

Project ID
P110862
Status
Closed
Team Leader
Arun Arya
Borrower 2
N/A

Country
Iraq
Disclosure Date
December 9, 2008
Approval Date
(as of board presentation)
June 26, 2009
Effective Date
July 20, 2009

Total Project Cost 1
US$ 18.00 million
Implementing Agency
N/A
Region
Middle East, North Africa, Afghanistan, and Pakistan
Fiscal Year 3
2009

Commitment Amount
US$ 18.00 million
Environmental Category
C
Environmental and Social Risk
Not Applicable
Closing Date
August 31, 2013

Last Stage Reached
BANK APPROVED
Last Update Date
August 15, 2013

Notes
1. Total project cost includes funding from World Bank and non-bank sources in US$ millions. Active and Closed projects show current commitments. Proposed (pipeline) and dropped projects show the forecast amount. The commitment amount for projects in the pipeline is indicative and may be modified during the project preparation.
2. Borrower refers to the Borrower of a Loan or Recipient of a Grant.
3. ”Fiscal Year” is the fiscal year in which the project was approved (or dropped if the status is dropped). The World Bank's fiscal year is from July 1 - June 30. For example, a fiscal year of 1996 corresponds to July 1, 1995 - June 30, 1996.

Sectors

Themes

FY17 - Public Sector Management

FY17 - Public Administration75%
- FY17 - Administrative and Civil Service Reform25%
- FY17 - Municipal Institution Building25%
- FY17 - Transparency, Accountability and Good Governance25%
FY17 - Public Finance Management25%
- FY17 - Public Expenditure Management25%

Project Map

Interactive Map

Finances

Financing Plan (US$ Millions)

Financier	Commitments
Iraq Reconstruction Trust Fund	18.00

Total Project Financing (US$ Millions)

Product Line	IBRD/IDA
IBRD Commitment	N/A
IDA Commitment	N/A
IBRD + IDA Commitment	N/A

Lending Instrument
Grant Amount	18.00
Total Project Cost**	18.00

Summary Status of World Bank Financing (US$ Millions) as of July 31, 2025

No data available.

Detailed Financial Activity as of July 31, 2025

No data available.

Footnotes

Ratings

IMPLEMENTATION RATINGS

Name	Review	Date
Progress towards achievement of PDO	Moderately Unsatisfactory	2014-02-03
Procurement	Moderately Satisfactory	2014-02-03
Monitoring and Evaluation	Moderately Unsatisfactory	2014-02-03
Counterpart Funding	Satisfactory	2014-02-03
Project Management	Moderately Unsatisfactory	2014-02-03
Financial Management	Moderately Satisfactory	2014-02-03
Overall Implementation Progress (IP)	Moderately Unsatisfactory	2014-02-03

COMPLETION RATINGS

INDICATOR	IMPLEMENTATION COMPLETION & RESULTS REPORT: 02-28-2014
Outcomes	Moderately Unsatisfactory
Risk to Development Outcome	High
Bank Performance	Unsatisfactory
Borrower Performance	Moderately Unsatisfactory
Government Performance	Not Applicable
Implementing Agency	Not Applicable

INDEPENDENT EVALUATION RATINGS

INDICATOR	ICR REVIEW: 02-09-2015	PROJECT PERFORMANCE ASSESSMENT REPORT:
Outcome Rating	Moderately Unsatisfactory	N/a
Risk To Development Outcome	High	N/a
Bank Performance	Unsatisfactory	N/a
Borrower Performance	Moderately Unsatisfactory	N/a
Government Performance	Unsatisfactory	N/a
Implementing Agency	Moderately Unsatisfactory	N/a
Icr Quality	Satisfactory	N/a
M&e Quality	Negligible	N/a

Results Framework

PROJECT DEVELOPMENT OBJECTIVE INDICATORS

INDICATOR		BASELINE	CURRENT	TARGET

Component 1: Capital budget execution rate increases by at least 10 percentage points	Value	75.00	0.00	85.00
	Date	December 31, 2009	June 28, 2013	August 31, 2013
	Comment	Limited strategic planning; unclear and fragmented project preparation rules/procedures hindering efficient and cost-effectiveproject implementation		Capital budget execution rate increased by 10 % in respect of baseline.

Component 3: Outstanding balances in spending units decline by 30 percentage points, as a share of the budget	Value	39.00	10.90	9.00
	Date	June 30, 2009	August 31, 2013	August 31, 2013
	Comment	In June 2009, when the PFM program commenced, the cash balances at the Rafidain and Rashed (R&R) Banks were estimated at about 27trillion ID (38.7% of budget).	As per the report received from the Ministry of Finance, the cash balance as in June 2012 is 3.82 Trillion ID (3.3 % of thebudget). In August 2013, however, the Cash Balances stood at 6.57 Trillion ID (10.9 %) of the Budget.	30% reduction in outstanding cash balances in respect of Baseline.

Component 4: Ministry of Finance training institute providing training on all operational aspects of PFM Project	Value	No	Yes	Yes
	Date	January 1, 2010	August 31, 2013	August 31, 2013
	Comment	Limited capacity in the training institute, both human resources, and physical assets/curriculum	For Capacity Development for Ministry of Finance Accounting Training Institute (MoFATC), a Contract was awarded to M/S CoffeyInternational, which conducted capacity development activities for the MoFATC, which in turn, provided training to government staff.

INTERMEDIATE RESULTS INDICATORS

INDICATOR		BASELINE	CURRENT	TARGET

Component 5 - System Resource Requirement (SRS) for IFMIS is completed	Value	No	No	Yes
	Date	February 1, 2013	August 31, 2013	August 31, 2013
	Comment	The Government has agreed on the scope of IFMIS design	The selection of a FreeBalance company was done to provide this service, but due to the temporary suspension of that company, thecontract could not be signed and no work could be done in this component.	System Requirement Studies (SRS) and Related Activities for IFMIS are completed in order to fully define the Government’srequirements and to prepare a Request for Proposal (RFP) Document that can be released for acquisition and implementation of theIFMIS.

Component 1 - Draft Sector Strategies completed and submitted to all relevant parties for comment/revision/etc.	Value	No	No	Yes
	Date	June 30, 2009	August 31, 2013	August 31, 2013
	Comment	Limited strategic planning	This task of preparation of sector strategies was dropped from the TOR as it was already being done by the government with thehelpof another donor.	Selected line ministries employing new strategies for comprehensive sector budget planning

Component 1 - New procedures in place for project preparation and appraisal	Value	No	No	Yes
	Date	June 30, 2009	August 31, 2013	August 31, 2013
	Comment	Unclear and fragmented project preparation rules/procedures hindering efficient and cost-effective project implementation	The consultancy contract with e.Gen was terminated due to a contractual dispute. Hence the outcome could not be delivered.	10% improvement in capital budget execution performance, as measured by MoPDC and other relevant revies

Component 1 - New Budget Instructions approved and guidelines ready	Value	No	No	Yes
	Date	June 30, 2009	August 31, 2013	August 31, 2013
	Comment	Budget instructions have been fragmented and not sufficiently clear, and framework for expenditure 'ceilings' not in use. As aresult, budget not adhered to.	The consultancy contract with e.Gen was terminated due to a contractual dispute. Hence the outcome could not be delivered.	Budget calendar adhered to. 50% improvement in compliance with ministry/agency budget requests (based on realism, timeliness andcompleteness of submission, etc.)

Component 1 - New Budget Call Circular (BCC) in use	Value	No	Yes	Yes
	Date	June 30, 2009	March 30, 2012	August 31, 2013
	Comment	Current BCC difficult to properly complete, as it does not provide sufficient instructional clarity for ministries/agencies	Target met	New BCC with hard budget ceilings issued.

Component 2 - Sector specific Standard Bidding Documents finalized for ministries of health, education, electricity and public works.	Value	No	Yes	Yes
	Date	June 30, 2009	August 31, 2013	August 31, 2013
	Comment	SBDs not common practice	SSBDs developed for health, education, electricity and public works sectors and delivered to the government.	New SSBDs in use in target ministries. Improved procurement efficiency, transparency, and economy, in target ministries, asmeasuredby data on the method used to award public contracts available

Component 2 - Design of single portal website for public procurement notices prepared	Value	No	Yes	Yes
	Date	June 30, 2009	July 15, 2013	August 31, 2013
	Comment	Limited procurement information available on-line in real-time	Bank assisted in drafting the TOR and design of Web-based portal for publication of bidding opportunities and bidding documents.However, due to lack of coordination between the PMT and Ministry of Planning, contracting of service provider could not be done toprepare and launch the single portal. The government has made provision in its budget for 2014 to do this task from its ownresources.

Component 3 - First round of training on new cash release system completed with selected pilot ministries	Value	No	Yes	Yes
	Date	June 30, 2009	August 31, 2013	August 31, 2013
	Comment	Current cash release system inefficient, does not respond to actual needs	Training on new Cash Release system delivered.

Component 3 - Detailed rules and regulations for new commitment control system developed	Value	No	No	Yes
	Date	June 30, 2009	March 30, 2012	August 31, 2013
	Comment	Commitments are not monitored adequately	Consultancy underway	New system rolled out to at least 4 total sector ministries

Component 4 - Training program fully in place	Value	No	Yes	Yes
	Date	June 30, 2009	August 31, 2013	August 31, 2013
	Comment	Limited capacity in MoF training department	For Capacity Development for Ministry of Finance Accounting Training Institute (MoFATC), a Contract was awarded to M/S CoffeyInternational, which developed a 5 year strategic training plan and 1 year annual plan. The capacity development activities for theMoFATC were conducted, which in turn, provided training to government staff.	Training program continuing to provide targeted training according to needs; program refined based on feedback from PY3. Long-termbusiness plan for sustainable operations of the MoF training department developed and approved

Component 3 - Assessment of IG system completed, and documentation provided clarifying mandate of internal controllers Value No Yes Yes
Date January 1, 2010 August 31, 2013 August 31, 2013
Comment

Component 2 - Training Needs Assessment completed, training curriculum developed and first round of ‘Train-the-trainers’ completed	Value	No	Yes	Yes
	Date	January 1, 2010	August 31, 2013	August 31, 2013
	Comment

Component 1 - New macro-economic and fiscal team established within MoF Economic Policy Division	Value	No	No	Yes
	Date	January 1, 2010	October 31, 2013	October 31, 2013
	Comment		This was to be done as part of e.Gen Consultant's TA contract. However, due to the contractual dispute and ultimately terminationof the contract, this could not be achieved.

Component 3 - Website of Ministry of Finance upgraded for enhancing citizen’s access of fiscal data	Value	No	Yes	Yes
	Date	January 1, 2010	August 31, 2013	August 31, 2013
	Comment		The Project had hired a consulting company (Abacus Consulting and Ask Tech Links) to develop and upgrade the website of MinistryofFinance (MOF). The consulting company has delivered the following: 1) Designed and developed Intranet secure website coveringDocument & Content Management and centralized Help Desk with notifications. 2) Designed and developed Internet Portal coveringNews Bulletin, Calendar Events, News Bar, Currencies Exchange Rates, News Archive, Search, Updateable content pages, Photo Gallery,Discussion Forum and Help Desk (customer care) features. 3) Provided dedicated hosting services for 3 years for internetwebsite.4) Thenew website includes functionalities like secure Intranet, Webmail, help desk functionalities, secure shareddirectories, dynamic contents management, etc.