Tanzania - Accountability, Transparency and Integrity Project

Updated Project Information Document (PID) Report No: AB1135 Project Name TANZANIA - Accountability, Transparency & Integrity Project Region Africa Regional Office Sector Central government administration (15%); Law and justice (70%); General finance sector (15%) Theme Public expenditure, financial mngmt & procurement (P); Other accountability/anti-corruption (P); Judicial and other dispute resolution mechanisms (P); Law reform (S); Standards and financial reporting (S) Project P070544 Borrower(s) UNITED REPUBLIC OF TANZANIA Implementing Agency(ies) OFFICE OF THE CHIEF SECRETARY/HEAD OF PUBLIC SERVICE Address: State House, P. O. Box 9120, Dar es Salaam, Tanzania Contact Person: Mr. M. Y. C. Lumbanga, Chief Secretary, Head of Public Service Tel: (255-22) 2116679 Fax: (255-22) 2113425 Email: Environment Category C (Not Required) Date PID Prepared September 28, 2004 Auth Appr/Negs Date January 7, 2005 Bank Approval Date September 15, 2005 1. Country and Sector Background 2.1 Overview As the Chief Secretary and Head of the Public Service states in the foreword to the National Framework on Good Governance (NFGG): "The Government of Tanzania has given governance issues the highest priority in recent years as it is aware that the continuing development problems in the country could be associated with difficulties of management in the public sector that are reflected in financial mismanagement, corruption, low level service provision, tax evasion and unnecessary bureaucratic procedures". This perspective is underpinned by a broad view that: (i) governance encompasses political, economic, administrative/managerial and social dimensions, and (ii) a participatory approach is imperative considering the close correlation between development and good governance. As stated in Governance: The World Bank's Experience (1994), good governance implies predictable, open policy making; a bureaucracy with professional ethos; an executive arm of government accountable for its actions; and a strong civil society participating in public affairs; and all behaving under the rule of law. This partnership of the central government, local governments, private sector and civil society is illustrated in Figure 1 below contained in GOT's framework for good governance. Figure 1: Partnership for Good Governance  2 PID 1 CENTRAL . GOVERNMENT (Executive, Judiciary Legislature) 4 PRIVATE . 2 LOCAL SECTOR . . GOVERNMENT (and its organizations) (and its agencies) 3. CIVIL SOCIETY (and its organization) Source: GOT, The National Framework on Good Governance, December 1999 In this broad perspective, the main sector issues, as elaborated in the following paragraphs, generally fall under the following headings: l inefficient and ineffective public service delivery; l corruption; l weak legal and judicial systems; l gaps in procedures and controls for public expenditure management and more broadly financial accountability; l poor management of information including records and data; and l weak oversight and watchdog institutions. 2.2.1 Inefficient/ineffective public service delivery and lack of accountability of public service institutions By mid-1980s the capacity and performance of the public service of Tanzania had declined to lowly levels. There was serious shortage of personnel with professional skills. Civil servants' morale, motivation and discipline were low because of a downward spiral in real incomes over an extended period, political interference and failure to observe merit principles in appointments, and collapsing management systems and controls. In tandem, poor choice of policies and development strategies had resulted in the deterioration  3 PID of the national economy, as characterized by negative or low economic growth, large fiscal deficits and high rates of inflation. Consequently, delivery of most public services (education, health, water, agricultural extension, etc.) by early 1990s was below the standards achieved by early 1970s. Following a series of structural adjustment programs in the past decade, Tanzania has in the last few years achieved a comparatively impressive level of macroeconomic stability and growth. The country has this year qualified for multilateral debt relief under the Highly Indebted Poor Country (HIPC) initiative. However, the quality of public services remains extremely poor, and the capacity of public institutions is still very low. Government, with support of the Bank and other development partners, is addressing these problems through various projects for the development of specific sectors (education, health, water, agriculture, roads, urban infrastructure, etc.), and cross-cutting reform programs for public service, public finance, decentralization and local government. The development objective of the Public Service Reform Program (PSRP), supported by an IDA credit (3300-TA) is to improve efficiency and effectiveness of public service delivery of the Government's economic and social programs on a continuous and sustainable basis through institutional reforms and capacity building measures. The decentralization and Local Government Reform Program (LGRP), launched in 1997 and supported by several development partners, is geared to enhance efficiency, effectiveness, transparency and accountability in the delivery of basic social services through devolution of planning and decision-making authority, and resources from the central government to local governments. 2.2.2 Corruption The problem of corruption in Tanzania was recognized as long ago as 1966 when Government established a Permanent Commission of Enquiry (Ombudsman) to check abuse of power by public officers. Furthermore, in 1971, Parliament enacted the Prevention of Corruption Act, and on this basis the Prevention of Corruption Bureau (PCB) was established in 1975. Still, as explicitly acknowledged in the National Anti-Corruption Strategy and Action Plan (NASCAP - November 1999) for Tanzania, corruption in the public and private sectors has reached endemic proportions. The government further states that it views the corruption scourge as public enemy number one. A 1996 Presidential Commission of Enquiry on Corruption (Warioba Commission) determined that the high level corruption is caused by several factors, including: (i) greed and abuse of power; (ii) poor discipline; (iii)deficiencies in management systems, procedures and controls; (iv) weak legal and judicial systems; (v) weak oversight and watchdog institutions (among these, the Permanent Commission of Enquiry, the Prevention of Corruption Bureau (PCB), the Controller and Auditor General (CAG), Parliament, and the mass media); (vi) political interference; and (vii) low public awareness. The NASCAP is coherent and holistic. It is underpinned by the principles of zero-tolerance, the commitment of political leaders, prevention, public awareness, and institution building. Its seven priority areas are: (i) the rule of law and legal framework: This component of the strategy and action plan aims to facilitate the review of sectoral laws and creation of conditions necessary for restoration of confidence in the Judiciary and law enforcement agencies; (ii) financial discipline and management: The objectives include to curb misuse, waste and loss of Government resources; (iii) procurement: The aim is to ensure strict adherence to efficient and transparent administration of tendering and procuring goods and services so that value for money is realized; (iv) public education, awareness and sensitization of their rights: The strategy involves development  4 PID and implementation of information and education programs that create awareness of how corruption harms the economy, and ultimately undermines the fabric and values of society; (v) public service reform: This will target the transformation of public service officers to accountable" servants of the public; (vi) whistle blowers and witness protection: The aim is to launch a campaign to encourage citizens to volunteer information on corrupt practices to enforcement agencies and to protect them from victimization by the corrupt; and (vii) the mass media: The mass media will be encouraged and supported to report corruption incidences and elements without fear or favor, and to publicize the harm of corruption to the innocent, the poor and the weak in Tanzania. 2.2.3 Weak legal and judicial system Upholding the rule of law through efficient, fair and transparent administration of justice is the bedrock for the promotion and maintenance of social peace and stability of the state. It is also crucial in ensuring an enabling environment for development and prosperity of the nation (Chief Justice of Tanzania, October 1999). However, the peace and stability that Tanzanians have enjoyed over the years cannot be attributed to the efficacy of its legal and judicial system. Neither is the system enabling for private sector development. The quality of legal and judicial services remains of low standards, as reflected by: (a) inordinate delays in resolving disputes and dispensing justice; (b) very limited access to legal services for the majority of the citizens; (c) corruption and other unethical conduct of officers in the legal system; (d) the legal system is significantly outdated and not responsive to either social, political, economic and technological changes, or to increasing resource constraints over the years; and (e) limited public trust in the legal and judicial system. The problems and constraints underlying the weakness of the legal and judicial system are: (i) the legal and regulatory framework is fragmented, excessively bureaucratic and outdated. (ii) weak management and coordination of legal sector institutions; (iii) low competence, morale and integrity of public sector legal personnel; (iv) inadequate numbers of professionally-trained legal personnel; (v) constrained administrative independence of the Judiciary; (vi) ignorance and poverty of the majority of the citizens which deny them access to legal and judicial services; and (vii) excessively limited, poorly furnished and equipped, and poorly maintained work environment in all public sector legal institutions. Government has over the past year developed a comprehensive Legal Sector Reform Program (LSRP). The seven components of this program are targeted at the problem areas outlined in the previous paragraphs. The key features of the Medium Term Strategy and Action Plan (2000-2005) for this program include: l Government's commitment to enhanced funding of the Judiciary and other public legal sector institutions; l emphasis on relatively low-cost and early impact interventions; l strong inter-agency collaboration as a crucial element to the overall successful implementation of the program; l strategic planning by legal sector institutions; and  5 PID l a program that complement and link with such other public sector reforms, such as the PSRP, LGRP and the NASCAP. 2.2.4 Gaps in procedures and controls for public expenditure management and more broadly for financial accountability Government has over the past decade persistently endeavored to improve its systems and practice of public expenditure management. However, the outcomes of these efforts are mixed. With regard to budget management, the imposition of a strict cash control regime has enabled the securing aggregate control over total public expenditure, consistent with revenue raising capacity and borrowing constraints. As a result, fiscal deficits have been within set targets in recent years, and there is macroeconomic stability. At the same time, budget reform through Public Expenditure Reviews (PER), implementation of a Medium Term Expenditure Framework (MTEF) and introduction of performance budgeting (linked to a public service improvement strategy under the PSRP) are underway. These latter initiatives aim at allocative and operational efficiencies of the Government's expenditure programs. In accounting for public expenditures, the central thrust of reform has been the implementation of a transparent computerized integrated financial management system (IFMS). IFMS (PLATINIUM-based system) has now been successfully installed in all ministries, and is currently being rolled out to agencies, ministries and districts. In this, Tanzania is a pace setter in the Sub-Saharan Africa region. However, the procedures and controls for public expenditure management are still conspicuously weak in three important areas: (i) procrument; (ii) internal audit; and (iii) OCAG: (i) Procurement There has been no comprehensive and authoritative set of public procurement statutory controls, regulations and procedures over the years. Consequently, as well elaborated in the report of the Presidential Commission of Enquiry Against Corruption (1996), there has been rampant corruption and waste in the procurement of goods and services by some public officers. While there have been some public procurement reform initiatives since mid-1990s, little, if any, real progress has been attained. The NASCAP emphasizes the need for procurement reforms. As result, a draft Public Procurement Bill and draft "Regulations for Procurement of Goods and Works" have been completed. However, the Bill has not yet been presented to Parliament for enactment. This can be anticipated to happen after the new Parliament convenes in early 2001. In any case, besides the finalization and implementation of the new statutory and regulatory framework, improving public procurement on a sustainable basis will require considerable and sustained efforts in capacity building for this public service function. (ii) Internal Audit An effectively performing internal audit function supports and reinforces the internal controls for safeguarding proper custody, use and accounting for the resources of any organization. While the GOT has had an Internal Audit Department in the Ministry of Finance (MOF) and other ministries, the function has never been effectively carried out. Three main factors explained this situation. First, the system and procedures for internal audit are nowhere documented to guide the officers responsible. Second, the function is poorly staffed in terms of both quality and numbers of personnel. Thirdly, and probably the most important, there was limited, if any, demand for regular internal audit reports by public service managers.  6 PID There are plans to strengthen the internal audit function under the ongoing Government Accounts Development Project (GADP) which has for several years been implemented with support from SIDA and DFID. (iii) Mandate and Capacity of the Office of the Controller and Auditor General The OCAG is established in the Constitution to promote and safeguard financial accountability in the custody and use of public resources. The Exchequer and Audit Act of Parliament requires the CAG to certify that: all revenues due are collected and deposited into a consolidated fund; all monies are drawn out of the consolidated fund on the basis of specific provisions in the Constitution or as appropriated by an Act of Parliament; the monies disbursed have been applied to the purpose for which they were appropriated; and there has been compliance with the prescribed financial rules, procedures and regulations. In all these respects, the capacity and performance of the OCAG have remarkably improved in recent years. This has been made possible by the technical assistance received from a number of development partners, and especially DFID. However, the performance of the OCAG is still significantly constrained in three important respects. Firstly, the mandate of the office has traditionally provided for the restricted function of checking compliance and did not allow for value for money audits, which considerably reduces the value of the function. Secondly, while the CAG has been constitutionally empowered to make independent decisions and report directly to Parliament, the office is denied independence of operation because it wholly depends on the MOF (its primary auditees) for funding and the Civil Service Department (CSD) for staff appointments and compensation. Thirdly, in part as a consequence of the second, the office has too limited a number of skilled personnel to carry out its audits on an efficient, effective and timely basis. Government has acknowledged the need to address these constraints. In the National Framework on Good Governance (December 1999), it is stated that to improve financial accountability as well as control of value for money in government spending, there has to be an effective external audit capacity. Also, Government has embarked on changing the Exchequer and Audit Ordinance with a view to, inter alia, granting the OCAG operational autonomy and giving the mandate to carry out value for money audits. There are also indications that DFID and other development partners (SIDA?) are willing to support capacity building in the OCAG. (iv) National Board of Accountants and Auditors (Marius/Brian Falconer to add) (v) Poor management of records, data and information In the 1999 Tanzania Assistance Strategy (TAS) report, a five year policy and strategic framework for the national development agenda, the GOT has well described the current situation, constraints of the management of records, data, information and communication and the implications of the poor performance in this area. Records management systems are mostly obsolete and overwhelmed by the newly emerging requirements for speed and consistency. Paper-based systems have almost broken down and the gradual build up of redundant paper is causing severe retrieval problems, with high costs in terms of wasted office accommodation, equipment and staff time. Information cannot be located when required; financial audits cannot be carried out effectively; and the success or failure of development initiatives cannot be fully evaluated for timely adjustments. Consequently decision-making and effectiveness of public service managers at all levels are impaired by lack of accurate, reliable and timely information. Furthermore, in absence of information, accountability and transparency cannot be achieved, and corrupt and unethical  7 PID practices are difficult to unearth and follow up. On the other hand, a lot of data and information is produced, analyzed and disseminated by various agencies in the Government, the NGOs, the private sector and donor community. However these efforts are not coordinated. As a result, important information is not adequately analyzed and disseminated, and has limited use. In 1995, with technical assistance of DFID, Government started the implementation of a project to begin to address the problems of records management within the framework of the PSRP. The pilot phase of this project has now come to an end, and a second phase is under design with DFID support. All indications are, however, that the task at hand, including the development of the necessary infrastructure may exceed the resource envelop of a single development partner. In the TAS, Government has defined a more comprehensive strategy to address the issues of data and information quality, availability and communication. Among the measures proposed are the following key ones: l strengthening key data collection, processing and analyzing institutions. Targeted institutions would include the National Bureau of Statistics (which has been relaunched as an autonomous agency), other MDAs, Ministries, Departments and Agencies, NGOs and advocacy agencies; l continuing with the creation of new efficient and effective paper-based record systems; l developing of a national records center and reinforcing the existing National Archives; l modernizing information and communications systems in government offices; and l introducing electronic records systems and establishment of an appropriate framework for managing public records. (TAS, pp. 23/24). 2.2.5 Weak oversight and watchdog institutions (OWIS) Historically, compared to other countries in Africa, Tanzania has led the way in the establishment of oversight institutions for good governance. In 1966, it was the first developing country to legally establish the office of Ombudsman (Permanent Commission of Enquiry, PCE) then following a Scandinavian approach. Also, Tanzania was a pioneer in legislating the Prevention of Corruption Act in 1971, and establishing a national anti-corruption squad (PCB) in 1975. Again in 19XX, the country set an example in introducing a leadership code of ethics, and establishing an Ethics Secretariat whose executive officer is Judge of the High Court. These institutions were additional to the more conventional ones, i.e., the Police, Criminal Investigations Department, Director of Public Prosecutions (DPP), the CAG, and Parliament and its Committees, etc. Yet, in spite of this multiplicity of institutions, the country continues to face serious governance problems. Evidently, these oversight institutions have been and remain weak. These weaknesses emanate from the common maladies that have afflicted other public institutions, including: underfunding of operations, inability to recruit and retain well qualified and strongly motivated officers, overlapping mandates that give rise to conflicts, absence of the necessary collaboration and coordination of the institutions, etc. Hence, the Government's programs for good governance, and particularly those for anti-corruption and legal sector reform specifically target to rationalize the mandates and functions of these institutions, strengthen their capacities and improve coordination of their operations. Government has also recognized that in pursuit of good governance, it is not enough to strengthen only public sector institutions. In The National Framework for Good Governance, Government states that civil society institutions (i.e. NGOs, CBOs, religious societies, trade unions, charities, clubs, cultural groups,  8 PID sports associations, special interest groups, professional associations, academic and research institutions, etc.) constitute a strong instrument for the effective participation and involvement of the people in decision-making, and social, political and economic development activities. Also, civil society organizations have a crucial role in informing and sensitizing the people, and thereby strengthening public demand for accountability by leaders and services providers. In the same document, it is recognized that civil society organizations in the country have considerable capacity weaknesses, in areas of problem analysis, advocacy, outreach, networking, management, revenue raising, accountability and responsiveness. A recent independent review concluded that civil society organizations in Tanzania are very weak even as compared to those in other East African countries [Joel Barkan, 2000]. Professor Mukandala, in a paper presented in June 2000 [Stakeholders Workshop on Accountability and Transparency], points out a key factor that underlies weaknesses in the civil society organizations, and the implications for accountability in the country. According to Mukandala most of the past and ongoing reform programs have concentrated on the supply side of the accountability equation, i.e., getting the state side "to be accountable to the public". However, this approach can work only as long as it continues to be reinforced by the (external) donors of the accountability programs. Continued accountability of state institutions in the long run will require strengthening of the institutions that represent the demand side of the accountability equation, i.e., civil society organizations, the mass media organizations and political parties. These conclusions imply the need for more innovate and inclusive donors-supported approaches to strengthening institutions for good governance. Government has called for measures to promote civil society organization's effectiveness for good governance (NFGG, p.13). However, the challenge of designing and implementing an efficient and effective program to strengthen the demand side institutions in the accountability equation remain. 2.3 The Government Strategic Framework As described in the NFGG, the strategic framework for building good governance chosen by the GOT is multi-point and comprehensive, focusing on the following: (a) Participation of the people in decision-making for social, political and economic development; (b) Legal and regulatory framework for private sector development; (c) Constitutionalism, the rule of law, administration of justice and protection of human rights; (d) Gender equity; (e) Accountability, transparency, and integrity in management of public affairs; (f) Electoral democracy; and (g) Greater public service capabilities to deliver services efficiently and effectively. This holistic approach reflects the understanding that attainment of good governance at the national level entails a wide front of inclusive strategic measures that cover central and local governments, the private sector and the civil society. Furthermore, this comprehensive strategic framework underscores the linkages among the various areas of focus. It is, nonetheless, thereby feasible to formulate specific strategies and action programs, such as has been done with the NASCAP and LSRP, without loosing sight of the ultimate goal and the complementarity of the proposed interventions.  9 PID 2. Objectives 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 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. 3. Rationale for Bank's Involvement The Bank's support is important in the following manner: First, in February 1998, the Bank conducted a comprehensive anti-corruption mission in Tanzania at the request of President Mkapa. The main findings of the mission are taken into account in the implementation of the key ongoing reforms such as the PSRP; other crucial elements of a program to enhance transparency and accountability such as procurement would form part of the proposed operation. Second, this support is more encompassing and therefore preserve the comprehensiveness of the Government's good governance initiative. Without this more comprehensive approach, it is highly doubtful that there will be any appreciable and sustainable progress in this area for the foreseeable future. While several developement partners have either indicated or confirmed their support to the program, important components and subcomponents of the program would remain unfunded without Bank support. Third, Bank's participation in the Government's good governance program could be expected to reinforce the commitment of the other development partners: (i) the Bank's involvement will strengthen dialogue with Government on the sector and program issues and will test Government's commitment to institutional changes; and (ii) the prospects of timely realization of the outcomes and impact of the project are considerably raised by Bank's participation in support of the program through the proposed project. It appears also that the Bank is the only partner so far willing to put the major effort that will be required to tackle public procurement reforms. It is hoped that by showing some leadership in this area that other partners would join this effort. Fourth, through the proposed project, Bank will advance and sustain the outcomes realised through the FILMUP such as (i) work commenced on institutional development in the legal sector and in the training and regulation of accounting and finance professionals; (ii) legal sector reforms and updating of important  10 PID laws such as the Companies Ordinance that has yet to be presented to Cabinet; and (iii) strategic plans for the regulatory environment and the development of the accountancy profession. Fifth, the areas to be addressed through the proposed project will address some of the key issues identified as bottlenecks to enhanced growth of the Tanzania economy, as reflected in the CAS and the recently concluded PSAC. 4. Description 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 (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  11 PID 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 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.  12 PID 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, Transparency and Integrity" coordination unit that Government has decided to establish in the Office of the Chief Secretary/ Head of the Public Service functions efficiently and effectively. l Second, independent Monitoring and Evaluation (M&E) of public accountability. The project will fund contracts for developing and maintaining a cost-efficient system for the M&E of public accountability by an independent agency. l Third, a Fund for Enhanced Accountability and Transparency (FEAT). The project will establish and operate this fund as a vehicle through which all the various demand-driven interventions will be supported under the project. Areas for such interventions that have already been identified include support to: (i) MDAs in developing their records management and information dissemination systems, and implementing their anti-corruption action plans, and (ii) develop and strengthen the watchdog functions of civil society organizations. Strengthening legal and judicial system Enhancing public financial accountability Strengthening oversight and watchdog institutions Program coordination and management 5. Financing Source (Total ( US$m)) BORROWER (10.00) IDA (40.00) BILATERAL AGENCIES (UNIDENTIFIED) (50.00) Total Project Cost: $100.00 6. Implementation The project will be implemented over a five year period. It is envisages that capacity for financial management and procurement will need to be built for the implementation of ATIP. The project will be overseen by the coordination unit in the Office of the Chief Secretary. Specific arrangements are as follows: 4.1 A coordination unit under the Chief Secretary/Head of the Public Service: The project's design places the primary responsibility for implementation with the leadership and management of the various institutions. Accordingly, the Chief Executives and Permanent Secretaries of beneficiary institutions will be responsible for the implementation in their respective organizations. However, the office of the Chief Secretary will need to be strengthened to take on a more active role in coordinating DP activities in the areas of good governance including anti-corruption. 4.2 A program management support unit in the Ministry of Justice and Constitutional Affairs:  13 PID The GOT launched in December 1999 a comprehensive legal sector reform program. To give impetus to the reform program, a legal sector reform steering committee chaired by the Chief Justice was instituted; and inter-agency task forces (ITTs) established to spearhead each of the key areas of the legal sector reform program. In addition, it was decided to set up a Program Management Support Unit in the Attorney General's Chambers. The unit will: (i) provide technical, secretariat and other administrative support to the Steering Committee and the ITTs, (ii) monitor and report on progress in the implementation of legal sector reforms, and (iii) publicize the activities and changes in the legal and regulatory framework. 4.3 Coordination with other reform programs through the IMTC and the IMWG: The overall coordinating mechanism for the reforms (public service, local government and sectors) is the responsibility of the existing committee of all Permanent Secretaries (Inter-Ministerial Technical Coordination--IMTC) chaired by the Chief Secretary/Head of Public Service. An inter-ministerial working group chaired by the Director Operations, PCB, provides technical coordination for the implementation of the NACSAP. 4.4 Monitoring and evaluation arrangements: The coordination unit in the Chief Secretary's office will provide: (i) leadership for the implementation of the GOT's good governance agenda; (ii) active monitoring of various GOT and DP programs; and coordination with the ongoing reform programs. Monitoring and evaluation will cover output and outcome assessment responding to public expectations for accountability, transparency and integrity. Through integrity and public service delivery surveys improvements will be monitored. The results will be widely disseminated to the public as part of the effort to empower citizens to demand greater accountability from the public service. (Need to look at overall M & E issue and capacity). 4.5 A demand-driven flexible funding mechanism: To operationalize the approach of predominantly demand-driven interventions (see section B 3.2 above), a flexible fund for capacity building will be put in place. The fund will have two windows: (i) support ministries in the implementation of their action plans for anti-corruption; and (ii) empower civil society to demand accountability, transparency and integrity from Government. The window that supports ministries will be closely linked to the performance improvement model being implemented as part of the PSRP. The other window will provide access to funds for IEC (information, education and communication) activities by civil society organizations aiming at educating the civil society with respects to its rights and obligations to demand accountability from public institutions. Clear guidelines to access these funds will need to be developed. The latter window will have to be closely coordinated with activities being undertaken by the Local Government Reform Program. 7. Sustainability Factors likely to be critical for the sustainability of project benefits include: (a) Sustaining the political will and commitment of the top leadership to attain good governance, and particularly persist with and strengthen the fight against corruption; (b) Incentives for the public service managers to implement this project, as well as other complementary reform programs and projects; (c) Adequate Government funding of the public legal and judicial institutions in line with the recent categorization of the sector among the priorities under the MTEF. 8. Lessons learned from past operations in the country/sector Among the key lessons learned and reflected in the proposed project design are the following: [see FILMUP ICR]  14 PID (a) A comprehensive approach is more efficient and has more sustainable outcomes. The excess of small, disjointed interventions by several development partners has often resulted in overlapping, waste, and overburden on GOT's capacity and yielding limited sustainable outcomes. Therefore, the proposed project is embedded in the Government's holistic framework for building good governance. (b) Strengthening the demand side of the accountability equation is crucial. To complete the accountability cycle, and therefore achieve timely and sustainable outcomes, it is important to strengthen the OWIs and civil society organizations that promote demand for public accountability. (c) Mainstreaming implementation in the agencies responsible for good governance. Evaluations of Bank projects have confirmed that the enclave/ project implementation unit (PIU) is not consistent with sustainable capacity building and sustainability of project outcomes. Furthermore, with such enclave arrangements, it is difficult to foster and sustain any strong commitment and support in the leaders and managers of the good governance agencies. Therefore the implementation roles and functions for the various components of the proposed project will be the direct responsibilty of designated officers within the agencies responsible for good governance. (d) The need for effective M&E. Without an effective M&E system, there is a pitfall that failure of project inputs to yield the expected outputs and outcomes will go undetected. Also, in the abscence of the M&E key outputs and outcomes indicators, there is no objective basis for proper accountability to the project beneficiaries. (e) The value of effective information, education and communication (IEC) interventions. Besides implementing the actions that contribute directly to the project outputs, it is considered benefitial for both accountability and sustainability of the project outcomes to have regular communication with the beneficiaries to inform and educate them on the objectives of the Government program and the inputs and outputs in the project implementation. 9. Environment Aspects (including any public consultation) Issues : None 10. List of factual technical documents: 11. Contact Point: Task Manager Denyse E. Morin The World Bank 1818 H Street, NW Washington D.C. 20433 Telephone: Fax: 12. For information on other project related documents contact: The InfoShop The World Bank 1818 H Street, NW  15 PID Washington, D.C. 20433 Telephone: (202) 458-5454 Fax: (202) 522-1500 Web: http:// www.worldbank.org/infoshop Note: This is information on an evolving project. Certain components may not be necessarily included in the final project.