Integrated Safeguards Data Sheet (Updated) Report No: AC1068 Section I - Basic Information Date ISDS Prepared/Updated: 10/04/2004 A. Basic Project Data (from PDS) Public Disclosure Authorized I.A.1. Project Statistics Country: TANZANIA Project ID: P070544 Project: Accountability, Transparency & Integrity Project Task Team Leader: Denyse E. Morin Authorized to Appraise Date: January 7, 2005 IBRD Amount ($m): Bank Approval: September 15, 2005 IDA Amount ($m): 40.00 Managing Unit: AFTPR Sector: Law and justice (70%); General finance Lending Instrument: Specific Investment Loan (SIL) sector (15%); Central government administration Status: Lending (15%) Theme: Other accountability/anti-corruption (P); Public expenditure, financial management and procurement (P); Judicial and other dispute resolution mechanisms (P); Standards and financial reporting Public Disclosure Authorized (S); Law reform (S) I.A.2. Project Objectives (From PDS): In recent years, the Government of Tanzania (GOT) has embarked on an ambitious reform agenda: public service (PSRP), public finance (PFRP) and local government (LGRP). In addition, it has just defined, in close collaboration with its development partners (DPs), comprehensive anti-corruption and legal sector reform (LSRP) programs. This holistic strategic approach to improve its governance system is reflected in "The National Framework on Good Governance" (GOT, December 1999). IDA would like to support these efforts through a program that would complement the assistance presently provided for ongoing reforms by other development partners and by IDA itself. The proposed operation is designed as a comprehensive program that assumes the participation of several development partners (DPs). IDA is already informed of overall donor interest in supporting all the program's components described in the Public Disclosure Authorized present document. IDA will work closely with these DPs to define how best to join forces to maximize the benefits for Tanzania's good governance agenda. The primary objective of the Accountability, Transparency and Integrity Program (ATIP) is to support the implementation of Tanzania's strategic framework for good governance. ATIP aims at improving outcomes and impacts of development programs on the poor by enhancing the quality of governance. This will be done through: (i) strengthening the legal and judicial systems; (ii) enhancing public financial accountability; (iii) strengthening oversight and watchdog institutions (OWIs), particularly, supporting the drive to combat corruption; and (iv) improving coordination, management and monitoring and evaluation (M&E) of Government's programs aimed at enhancing transparency and integrity for greater accountability. The IDA project would support these four components and would seek to complement other DPs' programs/projects in these areas. I.A.3. Project Description (From PDS): Public Disclosure Authorized The Project will have four main components, as follows: (a) Strengthening legal and judicial system (b) Enhancing public financial accountability (c) Strengthening oversight and watchdog institutions 2 ISDS (d) Program management and coordination Strengthening legal and judicial system The project will support select components or sub-components of the Government's medium term strategy and action plan for the LSRP in collaboration with other DPs. Technical assistance, including consultancies, training, computers and other office equipment and vehicles, and publishing and disseminating materials contribute to achieving the following key outputs: 1. an updated and modernized legal and regulatory framework; 2. greater independence of the judiciary; 3. strengthened management and coordination of legal sector institutions; 4. enhanced competence, motivation and integrity of personnel; 5. improved pre-service training of legal professionals; 6. better access to justice for the poor and the disadvantaged; and 7. improved work environment for legal and judicial officers. In addition, the project will fund civil works/rehabilitation costs for select high priority structures in the legal sector, possibly: 1. Chambers for the Court of Appeal judges; 2. The Law School; and 3. Primary and districts magistrates courts. Enhancing public financial accountability The project will support activities leading to five key outputs contributing to greater financial accountability: 1. An effectively functioning transparent public procurement system. Major interventions to be supported in this area will include: drafting new laws, regulations, procedures and controls that will govern procurement by all public agencies; facilitating local training institutions to develop a curriculum and capacity to train a procurement cadre for the public service; and other capacity building measures to establish procurement units in MDAs and to contract out services. 2. An effectively functioning internal audit system. Development of the internal audit function now considerably lags behind the milestone development that the country has made in other facets of public financial accountability. The project will support the design and implementation of a cost-effective internal audit system. Interventions will include consultancies, training, computers and other office equipment and vehicles. It is envisaged that work in this area would be done in close collaboration with SIDA. 3. An OCAG that is independent for staffing and funding, and performs its functions with efficiency and effectiveness. Attaining the independence of the OCAG is already leveraged in the recently approved PSAC (?). The project will make available the assistance needed to improve the capacity of the office through training of staff in new and modern audit techniques (especially audit of computer systems and value for money audits), equipping the OCAG's offices in the districts, and procuring transport to facilitate travel to remote rural service delivery centers for audit. 4. Enhanced standards and effectiveness of the accounting profession in the country. Under the just closed FILMUP (IDA Cr. No. 2413-TA), the Bank provided support for strengthening and consolidating the key institutions for development of the accounting profession in Tanzania. In 3 ISDS particular, technical assistance, training and other capacity building measures, and investments in infrastructure were provided to accountancy and finance training institutes, and the National Board of Accountants and Auditors (NBAA) which has the statutory mandate to develop and regulate the accounting profession in the country. Still, the accounting profession needs to be further developed in Tanzania. Furthermore, preliminary findings of the Implementation Completion Report (ICR) of the FILMUP indicate the need for additional assistance, especially for the NBAA, to sustain the outcomes realized under that project. Studies carried out during FILMUP's extension also confirmed this need. The ATIP will make available this support to the NBAA and the accounting profession in general. 5. Effective records management and information dissemination systems in MDAs. In the past four years, the GOT has piloted a program for improving records management in MDAs through two successive projects funded by DFID under the PSRP. However, the scope and coverage of this project have been limited to registry systems in some MDAs. Furthermore, while the evaluations of these DFID projects have clearly identified the need for a National Records and Archives Center in order to develop a sustainable public service records management system, the funds to build this center have not yet been available. The ATIP will provide: (i) on a demand-driven basis funds for the implementation of MDAs' strategies and action plans for development of their records management and information systems (this will be within the same strategic framework for improving the MDA's service delivery standards under the PSRP), and (ii) support to the construction and equipping of the National Records and Archives Center. Strengthening oversight and watchdog institutions (OWIS) This component aims at strengthening the demand side of the accountability equation. In this regard, at this stage of project development, it is clear that technical assistance will be needed under the project to, as a priority, rationalize the mandates, roles and functions of the plethora of public OWIs that have been established over the years (see section B. 2.26). It is, nonetheless, anticipated that among the public OWIs that will receive technical assistance to build their capacity and improve their performance are: (i) the Prevention of Corruption Bureau; (ii) the relevant Committees of the Parliament (and Parliament?); and (iii) the MDAs will also be supported to implement their anti-corruption and action plans on a demand-driven basis, provided that the MDAs meet specific criteria. The project will also provide technical assistance to develop and strengthen the operations of civil society organizations that are active watchdogs on public accountability. The plan is to deliver this support on a demand-driven basis. In this context IDA would integrate in its approach lessons learned from others presently involved in supporting IEC for civil society, e.g., the Netherlands, UNDP, EU and others. Program Management and Coordination This component has three sub-components: l First, strengthening program management and coordination. The project will provide the technical assistance and means needed to ensure that the "Accountability,