The World Bank Report No: ISR13279

Implementation Status & Results eGhana (P093610)

Operation Name: eGhana (P093610) Project Stage: Implementation Seq.No: 13 Status: ARCHIVED Archive Date: 17-Feb-2014 Country: Ghana Approval FY: 2007

Public Disclosure Authorized Product Line:IBRD/IDA Region: AFRICA Lending Instrument: Specific Investment Loan Implementing Agency(ies): Key Dates Board Approval Date 01-Aug-2006 Original Closing Date 31-Mar-2012 Planned Mid Term Review Date 30-Jun-2009 Last Archived ISR Date 04-Jul-2013 Public Disclosure Copy Effectiveness Date 21-Nov-2006 Revised Closing Date 30-Jun-2014 Actual Mid Term Review Date 01-Dec-2010

Project Development Objectives Project Development Objective (from Project Appraisal Document) The objective of the Project is to assist the Recipient to generate growth and employment by leveraging ICT and public-private partnerships to i) develop the IT Enabled Services industry, and ii) contribute to improved efficiency and transparency of selected government functions through e-government applications. Has the Project Development Objective been changed since Board Approval of the Project?

Yes No Public Disclosure Authorized Component(s)

Component Name Component Cost Component 1 : Enabling environment 9.37 Comnponent 2 : Support to ITES and ICT SMEs 17.60 Component 3 : E-Government 31.00 Component 4: GIFMIS 28.44

Overall Ratings Previous Rating Current Rating Progress towards achievement of PDO Satisfactory Satisfactory

Public Disclosure Authorized Overall Implementation Progress (IP) Satisfactory Satisfactory Overall Risk Rating Low Low

Implementation Status Overview This ISR reflects the discussions of parallel missions of both the eGhana core Project and GIFMIS (Ghana Integrated Financial Management Information System) component carried Public Disclosure Copy out between October 28 and November 8, 2013. The GIFMIS component was conducted together with DiFD and the Delegation of the European Union. The task teams reviewed implementation progress to date against targets under the Project Appraisal Document and Additional Financing Project Paper; assessed project management, institutional, fiduciary and Monitoring and Evaluation arrangements; and discussed innovative ways to begin communicating project results.

Page 1 of 12 Public Disclosure Authorized The World Bank Report No: ISR13279

Implementation progress and the likelihood of achieving the developmental objectives of the eGhana Project are very Satisfactory. Disbursement rate continues to improve and stands at approximately 90% for the core eGhana project and 75% for the additional financing component. Almost all the key performance indicators under the core eGhana project (jobs created in the ITES sector, revenues as % of GDP, number of PPPs etc) have been met. The automation of the Ghana Revenue Authority (GRA) and the Registrar's General's Department (RGD) has been accepted by Government and related disbursement under the project has been made. Key activities which have been completed as part of the GRA automation include the following: 10 GRA pilot sites have been prepared, and equipped with high-speed connectivity and computing equipment. The system will eventually be deployed at 67 branch offices of GRA, including at GRA Head Quarters, Legon, Agbogbloshie, Achimota, Adabraka, Spintex, Kaneshie, Makola, GRA , GRA DTRD, and Vat House; training has been provided to staff on usage and literacy of information technology; TRIPS tax administration software, involving 12 modules, has been deployed at two data centers; tax payer registration module has been deployed and is in use in 10 GRA sites; core tax modules have been piloted at the large tax payer office; and GRA portal has been deployed and is being tested by GRA and the system auditor. Since December 2011, 200,000 or more taxpayers have registered on the TRIPs system. About 50 filing transactions have been successfully completed. Operational Acceptance (OA) has been agreed between the public and private partners and was finalized in December 2013 following independent and government’s own audit. The Ghana electronic registration for the Registrar General’s Department (GeReg application) is operational at the RGD head office and preparations are underway to roll-out the application at the three regional sites for RGD. The GeReg provides for the electronic registration of businesses, civil marriages, and Public Disclosure Copy properties and estates in Ghana. There has also been significant progress in the support to the IT and IT Enabled services industry, with the completion of training for the first batch of master trainers and agents for the ITES (37 out of 50 master trainers; and 532 out of 2000 agents), the launch of the University connectivity program, the signing of the Business incubation contract and the completion of several investment promotion activities which has increased the visibility of Ghana as destination for IT and IT enabled services business. The recent approval by the Rockefeller Foundation of a grant in the amount of US$3.8 million to complement the World Bank funding for the Business Process Outsourcing (BPO) center is a significant achievement for the project and will contribute significantly to addressing the shortage of Grade A facilities for BPO activities in Ghana.

Implementation progress and the likelihood of achieving the developmental objectives of the GIFMIS component is also rated Satisfactory. GIFMIS is now in place so that it can realistically be expected to make progress towards its objectives. Key progress includes: roll-out of Procure to Pay (P2P) for the Consolidated Fund (Treasury Accounts) across all Ministries, Departments and Agencies (MMDAs), with on-site processing across 25 additional spending units; implementation of payroll upgrade and integration progressing according to schedule; achieved readiness for implementation of phase 1 of HRMIS within schedule; achieved readiness to begin implementation of a new budget module ‘Hyperion’ that will be used for budget preparation during 2014 for the 2015 budget and beyond; and operationalization of Electronic Funds Transfer (EFT) system (with SWIFT) in 16 largest MDAs constitituting over 80% of consolidated fund (Treasury) expenditures. In this regard, the interface with Bank of Ghana (BoG) through EFT is considered a significant milestone towards ensuring strengthened controls. In addition, GIFMIS has been rolled-out at 7 MMDAs for transacting GoG funds. The recent signing of a Loan and Fiscal Agency Agreement (LFAA) between the BoG and MoF marks a critical turning point in establishing the foundation of a Treasury Single Account (TSA) and an effective cash management system based on this and other elements of GIFMIS. Progress also continues in establishing clear plans for implementing Program-Based Budgeting (PBB) and a common platform for budget preparation and execution, though these outcomes will be fully achieved only over the longer run.

Locations Country First Administrative Division Location Planned Actual Ghana Not Entered

Ghana Greater Region Accra ✔ ✔

Ghana Accra

Ghana Sissala East

Ghana Bongo

Ghana Nanumba South Public Disclosure Copy Ghana Northern Region Nanumba North

Page 2 of 12 The World Bank Report No: ISR13279

Country First Administrative Division Location Planned Actual Ghana Upper West Region

Ghana Upper West Region Jirapa

Ghana Northern Region Bole

Ghana Brong-Ahafo

Ghana North

Ghana Volta Region Nkwanta South

Public Disclosure Copy Ghana Volta Region Krachi West

Ghana Upper West Region Karni

Not Entered Not Entered Not Entered

Ghana Adansi North

Ghana Ashanti Region Adansi South

Ghana Agona East

Ghana Central Region Agona West

Ghana Volta Region

Ghana Akuapim North

Ghana Eastern Region Akuapim South

Ghana Aowin/Suaman

Ghana Ashanti Region Asante Akim North

Ghana Central Region Assin North

Ghana Brong-Ahafo Asunafo South

Ghana Central Region Awutu Senya

Ghana Upper East Region

Ghana Ashanti Region

Public Disclosure Copy Ghana Brong-Ahafo

Ghana Eastern Region Birim South

Page 3 of 12 The World Bank Report No: ISR13279

Ghana Upper East Region

Ghana Brong-Ahafo Dormaa

Ghana Central Region Effutu

Ghana Central Region Gomoa East

Ghana Central Region Gomoa West

Ghana Volta Region Ho

Ghana Volta Region Public Disclosure Copy Ghana Brong-Ahafo Jaman North

Ghana Brong-Ahafo Jaman South

Ghana Volta Region

Ghana Western Region Jomoro

Ghana Upper East Region Kassena Nankana

Ghana Volta Region Ketu North

Ghana Volta Region Ketu South

Ghana Central Region Komenda/Edina/Eguafo/Abirem

Ghana Volta Region

Ghana Ashanti Region

Ghana Eastern Region Kwaebibirem

Ghana Eastern Region Kwahu West

Ghana Eastern Region Lower Manya Krobo

Ghana Ashanti Region

Ghana Central Region Mfatseman

Ghana Western Region Mpohor/Wassa East

Ghana Eastern Region New Public Disclosure Copy Ghana Volta Region North Tongu

Page 4 of 12 The World Bank Report No: ISR13279

Ghana Ashanti Region

Ghana Western Region -Huni Valley

Ghana Western Region Sefwi-

Ghana Volta Region South Tongu

Ghana Eastern Region Suhum/Kraboa/Coaltar

Ghana Brong-Ahafo

Ghana Northern Region Tamale Public Disclosure Copy Ghana Western Region Nsuaem

Ghana Brong-Ahafo

Ghana Greater Accra Region Tema

Ghana Central Region Upper Denkyira East

Ghana Central Region Upper Denkyira West

Ghana Eastern Region Upper Manya Krobo

Ghana Upper West Region Wa

Ghana Western Region Wassa Amenfi East

Ghana Western Region Wassa Amenfi West

Ghana Eastern Region West Akim

Ghana Northern Region

Ghana Eastern Region Yilo Krobo

Results

Project Development Objective Indicators Public Disclosure Copy

Page 5 of 12 The World Bank Report No: ISR13279

Indicator Name Core Unit of Measure Baseline Current End Target Direct project beneficiaries Number Value 0.00 19900.00 10000.00 Date 30-Apr-2010 31-Oct-2013 Comments At Additional Financing (Defined here as number of appraisal. It has not yet been people employed, plus trained measured. with support under the project) Female beneficiaries Percentage Value 0.00 10441.00 6600.00 Sub Type Supplemental

Public Disclosure Copy Number of Manpower Trained under the Number Value 0.00 5040.00 5509.00 Project (number of people) Date 30-Apr-2010 31-Oct-2013 30-Jun-2014 Comments At Additional Financing Ghana Revenue Authority appraisal. staff trained on computer literacy and office/other key applications; CIOs, BPO Agents Creation of IPSAS- compliant GoG annual Text Value No compliance Partial Compliance IPSAS-compliant include all financial statements by CAGD for CFA Funds Date 30-Apr-2010 08-Nov-2013 31-Mar-2014 Comments at Additional Financing Report design completed but IPSAS compliant financial appraisal. is being validated by statements prepared and consultants. FY2013 accounts submitted for audit. to be prepared on the improved basis. Production of system-based quarterly GoG Text Value No GFS-compliant report GFS-compliant reports Regular GFO reporting and GFS-compliant Ghana Fiscal Operations available. available within 6 weeks of publication Report by MoFEP (within one month of quater- quarter end (but partly end) systems generated as all funds are not systems covered) Date 30-Apr-2010 08-Nov-2013 30-Jun-2014 Comments at Additional Financing The configuration of the appraisal. reports being carried out along with the General Ledger implementation. MDAs applying commitment controls using Number Value 0.00 32.00 32.00 GIFMIS Date 30-Apr-2010 08-Nov-2013 30-Jun-2014 Public Disclosure Copy

Page 6 of 12 The World Bank Report No: ISR13279

Comments at Additional Financing Commitment controls in place Full central GIFMIS appraisal. There has not yet for all 32 Ministries and 270 functionality in use by all commitment controls. spending units in place for the MDAs. Details on MMDAs will consolidated fund depend on decentralization strategy. Impact on IT/ITES Sector of World Bank Number Value 3.00 4.00 5.00 Technical Assistance (composite score: 1 # low Date 30-Apr-2010 05-Jun-2013 30-Jun-2014 impact to 5 # high impact) Comments at Additional Financing appraisal. User Perception of Quality of Public Services Percentage Value 0.00 30.00 25.00 (%) Date 31-Oct-2013 Public Disclosure Copy Comments Registrar General’s department and GRA automation is operational. ongoing testing of transactions, but this can only be counted when the full eGovt application is completed. Data is collected by survey by M&E team. IT/ITES Employment (number of people) Number Value 3050.00 8900.00 7000.00 Date 30-Apr-2010 31-Oct-2013 30-Jun-2014 Comments at Additional Financing Based on survey of ICT appraisal. companies, done by ITES team. Increase in export led revenues generated by Text Value $32.5 million 70.0million $70 million ICT/ITES industry Date 07-Jul-2007 31-Oct-2013 30-Jun-2014 Comments At least half of the new jobs created in the ICT/ Text Value 1540 (>70%) 4800 (54%) >66% ITES sector are held by women. Date 07-Jul-2006 31-Oct-2013 30-Jun-2014 Comments Based on survey of ICT companies, done by ITES team.

Intermediate Results Indicators Public Disclosure Copy

Page 7 of 12 The World Bank Report No: ISR13279

Indicator Name Core Unit of Measure Baseline Current End Target MDAs preparing budgets on Oracle platform Number Value 0.00 0.00 32.00 Date 30-Apr-2010 08-Nov-2013 30-Jun-2014 Comments at Additional Financing System has been procured A single ICT platform for appraisal. Preliminary testing/ and implementation started budgeting and budget configuration of Oracle budget for completion in May 2014 execution is used across module. and for use in budget for FY government. 15 during 2014. Treasury sites connected to GIFMIS Number Value 0.00 32.00 32.00 Date 30-Apr-2010 08-Nov-2013 30-Jun-2014 Comments

Public Disclosure Copy at Additional Financing GIFMIS General Ledger and All central 28 Treasuries, 10 appraisal. P2P have been implemented Regional Treasuries and all at 32 Treasury sites including MDAs sites as well as MMDA all MDAs in respect of the treasuries connected on consolidated fund phased basis. MMDAs connectivity will depend on decentralization strategy. Internal Audit Staff rained in Computer Aided Number Value 0.00 0.00 30.00 Audit Techniques (CAATs) Date 30-Apr-2010 08-Nov-2013 30-Jun-2014 Comments At Additional Financing Training plan drawn, All key Internal Audit staff in appraisal. very limited procurement of training MDAs trained and are using exposure of IAU staff to consultants and software CAATs for their audits of the CAATs completed and training in IFMIS. progress. Elimination of domestic payment appears (% of Text Value 4% 2.9% <1% GDP) Date 31-Dec-2008 08-Nov-2013 30-Jun-2014 Comments Estimated data from IMF (this Expenditure arrears in relation is the data at Additional of GDP to be less than 1% Financing appraisal.) Completion of review and update of FM Text Value formal review needed Internal review has started; a Updated FM legislative and legislative and operational framework consultant under appointment. operational framework established and functioning Date 08-Nov-2013 30-Jun-2014 Comments at Additional Financing Framework is being New updated PM legal and appraisal. Legislation not established and new operational framework in updated to allow for business Operational Manuals place process change to conform (accounting) prepared. with ICT requirements. Contracting for delivery of

Public Disclosure Copy services related to revision of PFM laws being finalized.

Page 8 of 12 The World Bank Report No: ISR13279

Internal committee established to carry out initial generic review before consultant comes on board. MDAs implement annual program, sub- Number Value 0.00 11.00 92.00 program and activity classifications Date 30-Apr-2010 08-Nov-2013 30-Jun-2014 Comments at Additional Financing MDA pilots have commenced Transition to PBB completed appraisal. Classification by program based budgeting for at least 92 MDAs. objective/output/activity using new classifications. applies only to items 2 and 3 Roll-out pilots increased by 4. and is not integratedwith allocative process. Public Disclosure Copy Budget ceilings lnked to outer year forecasts Percentage Value 5.00 20.00 100.00 for all MDA spending Date 30-Apr-2010 08-Nov-2013 30-Jun-2014 Comments at Additional Financing Ceilings are issued but not Budget ceilings for MDAs are appraisal. Ceilings are issued applied beyond a fair estimate used and linked to outer but not applied beyond a fair of 20%. years. estimate of 5%. Electronic Transactions of Public Services (%) Percentage Value 0.00 0.00 40.00 Date 07-Jul-2006 05-Jun-2013 30-Jun-2014 Comments eGov application yet to be Operational Acceptance of 40 % increase over baseline. deployed. GRA and Registrar General’s depart just completed and being tested. Next mission will document transactions. Total number of transactions of the main public Number Value 0.00 0.00 10.00 service targeted by the project Sub Type Supplemental BPO Center established Number Value 0.00 0.00 10000.00 Date 07-Jul-2006 05-Jun-2013 30-Jun-2014 Comments Selection of Contractor 10000 seats. approved by World Bank. Contract award yet to be completed. Increase in numbers of new companies Number Value 6.00 16.00 30.00 incubated each year Date 07-Jul-2006 05-Jun-2013 30-Jun-2014 Comments New program at bidding stage

Public Disclosure Copy Increase in ICT/ITES industry satisfaction with Percentage Value 30.00 57.00 80.00 ITES Secretariat's support Date 07-Jul-2006 05-Jun-2013 30-Jun-2014

Page 9 of 12 The World Bank Report No: ISR13279

Comments Based on survey of ICT companies, done by ITES team. % of people trained and successfully employed Text Value 0 100% employed in ITES industry Date 07-Jul-2006 05-Jun-2013 30-Jun-2014 Comments Regional Innovation Centers established Number Value 0.00 0.00 10.00 Date 30-Apr-2010 05-Jun-2013 30-Jun-2014 Comments at Additional Financing All 10 contracts signed and at appraisal. various stages of

Public Disclosure Copy construction. Increased protection of intellectual property Text Value 4 electronic legislations 2 additional laws passed Date 30-Apr-2010 05-Jun-2013 Comments at Additional Financing appraisal. Decrease price of bandwidth for ITES industry Text Value US$10000 per full circuit E1 US$4000 line for non GISPA/ GASSCOM members & US $7000 for GISPA members Date 07-Jul-2006 05-Jun-2013 Comments Comp 1: % increase in MDAs expressing Percentage Value 32.00 65.00 75.00 satisfaction with the level of coordination and Date 30-Apr-2010 05-Jun-2013 30-Jun-2014 management by MoC Comments at Additional Financing Based on survey of MDAs, appraisal. done by M&E team. Comp 3: E-Government Text Value 0 100 for technical staff. - x number of technical staff trained - x number of legal and judiciary staff trained 750 Date 07-Jul-2006 05-Jun-2013 30-Jun-2014 Comments Comp 3: E-Government Text Value Electronic -0 Manual - 30,834 40% % increase in the ratio of electronic to manual Date 07-Jul-2006 05-Jun-2013 30-Jun-2014 transactions (application specific) between government and recipients by application Comments Completion of the Registrar (limited to population with connectivity). General’s depart. RGD already registered some 50,000 businesses

Public Disclosure Copy electronically

Page 10 of 12 The World Bank Report No: ISR13279

Comp 3: E-Government Text Value 0 100 x number of CIOs trained Date 07-Jul-2006 05-Jun-2013 30-Jun-2014 Comments Comp 3: E-Government Text Value 0 100% All applications developed under the scope of Date 07-Jul-2006 05-Jun-2013 30-Jun-2014 e-Ghana (IRS, RAGB, RGD, LTU, VAT, Immigration, Parliament) adhere to the IT Comments architecture, and interoperability standards.

Comp 2: Support to ITES and ICT SMEs Text Value 1540 (70%) 20% % growth in positions held by women in ICT/ Date 12-Jun-2007 05-Jun-2013 30-Jun-2014 ITES private sector on (i) non-managerial, (ii) Public Disclosure Copy managerial level. Comments

Data on Financial Performance (as of 24-Jan-2014)

Financial Agreement(s) Key Dates Project Ln/Cr/Tf Status Approval Date Signing Date Effectiveness Date Original Closing Date Revised Closing Date P093610 IDA-42260 Effective 01-Aug-2006 25-Aug-2006 21-Nov-2006 31-Mar-2012 30-Jun-2014 P093610 IDA-47730 Effective 23-Jun-2010 08-Sep-2010 04-Nov-2010 30-Jun-2014 30-Jun-2014

Disbursements (in Millions) Project Ln/Cr/Tf Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P093610 IDA-42260 Effective XDR 26.90 26.90 0.00 24.90 2.00 93.00 P093610 IDA-47730 Effective XDR 29.60 29.60 0.00 21.97 7.63 74.00

Disbursement Graph Public Disclosure Copy

Page 11 of 12 The World Bank Report No: ISR13279 Public Disclosure Copy

Key Decisions Regarding Implementation Two key activities under the project which require urgent attention from Government are: i) the completion of the Certification program under the BPO Training sub-component, and iii) the Connectivity of Selected Tertiary Institutions. The completion of these activities will make significant contribution to the achievement of the Project Development Objective.

To maximize the project impact, the following will require sufficient attention as the project nears closing: (i) establish ex-ante controls through GIFMIS where possible; (ii) improve timeliness and coverage of transactions of funds (such as the multitude of small Internally Generated Funds, or IGFs, and statutory funds) and include these ex ante and or/ex post in GIFMIS, as the case may be; (iii) extend full GIFMIS functionality to MMDAs; and (iv) strengthen the strategic framework for fiscal policy be ensuring that spending decisions are not made outside the parameters agreed by Cabinet in its consideration of the annual Budget Framework Paper. Continuing progress in all these areas is essential to contribute to the achievement of the objective of comprehensive management of general government spending.

Restructuring History There has been no restructuring to date.

Related Projects P120942-eGhana Additional Financing Public Disclosure Copy

Page 12 of 12