Rwanda - Technical Assistance For the Improvement of Public Finance Management Project

Doawunt of The World Bank FOR OMCIAL USE ONLY Rpo,tNo 12232 PROJECT CONPLETION REPORT RWANDA TECHNICAL ASSISTANCE PROJECT FOR THE DMPROVEMNT OF PUBLIC FINANCE MANAGEKENT (CREDIT 1565-RU) AUGUST 6, 199'. MICROGRAPHICS Repo' t No: 12232 Type: PCR Country Operations Division South Central and Indian Ocean Department Africa Regional Office This document has a resricted distnibutfon and may be usd bv recipients only in the performance of deir offcial duties Its contents may not othedwise be disdosed without World Bank authorization.  CURRENCY EQUIVALENTS (period average) Currenvcy Unit - Rwanda Franc (RwF) 1985: USS1.00 D RwF 101.26 1986: USS1.00 - RwF 87.64 1987: USS1.00 - RwF 79.69 1988: USS1.OO RwF 76.4S 1989: US$1.00 RwF 79.98 1990: US$1.00 = RwF 82.60 1991: USSI.00 RwF 125.14 1992: US$1.00 = RwF 1.32.04 FISCAL YEAR Januay I - December 31 GLOSSARY / ABBREVIATIONS ADETEF Association pour le D6veloppement des Technologies Economiqas et Financites (Association for the Development of Eoonomic and Fmancial Tecahnologies). BNR Banque Nationale du Rwanda (National Bank of Rwanda). -C- Comitt Intcrministdriel de Coordination (Interministerial Coordinating Committee). EEC - European Economic Community CCI Comite Consultatif Interministeriel (Interministeriai Advioty Committee). ISFP Institut Supdrieur des Fmances Publiques (Public Finarce Institute) MWNIFINECO - Minastbre des Finances et de IEconomie (Ministry of Finance and Exonomy). MINIFOPE - Miniatere de la Fonction Publique et de Ia Formation Professionnelle (Public Administratlon and Vocational Training Ministry). MINIPLAN MinistOre du Plan (Ministry of Planning). MINISUPRES Ministere de I'ltnseignement Supericur et de la Recherche (Higher Education and Research Ministry). OED Operations Evaluation Department. PCR - Project Completion Report. UNDP - United Nations Development Program. WEIGHTS AND MEASURES Metric BritishAJS Equivalcnts I meter (m) 3.3 feet I hectare 2.47 acres I are (100m2) 0.02 acre 1 kilometer (km) 0.62 mile 1 square kilometer (km2) 039 square miles (sq.mi.) 1 kilogam (kg) 2.2 pounds (lb) 1 liter (1) 0.26 US gallons (gal) metric ton (m ton) Z204 pounds b)  FOR OFICIAL USE ONLY THE WORLD BANK Washington, D.C. 20433 U.SA Offico of Dlreotoreonoral Oporators Evaluation August 6, 1993 MEMORANDUM TO THE EXECUTIVE DIRECIORS AND THE PRESIDENT SUBJECR: Project Completion Report on Rwanda Technical Assistance Project for the Improvement of Public Finance Management (Credit 1565-RW) Attached is the Project Completion Report on Rwanda - Technical Assistance Project for the Improvement of Public Finance Management (Credit 1565-RW) prepared by the Africa Regional Office. The Government of Rwanda did not prepare a Part II of this report, but it did inform the Africa Regional Office that it had no comments and agreed with the report's findings and conclusions. This report was prepared by the Region in parallel with OED's Performance Audit Report (PAR) which was submitted to the Executive Directors and the President (Report No. 12099, dated June 29, 1993), along with the PCR and PAR for a preceding technical assistance operation in Rwanda. The findings, conclusions and ratings of the PCR on Credit 1565-RW are well in line with those reported in the PAR. Robert Picciotto by H. Eberhard Kopp Attachment This documet has a restriced diadbution and may be used by redpients only in the performance of their offcial dutie. Its contents may not otherwie be disclosed without Word Bank authorization.  FOR OMCIAL USE ONLY PROJECT COMPLETION REPORT RWANDA TECHNICAL ASSISTANCE PROIJE FOMR THE IMPROVEMENT OF PUBLIC FINANCE MANAGEMENT (CREDIT 1565-RW) TABLE OF CONTENTS Page PREFACE .................................................(i) EVALUATION SUMMLARY .1 PART I - PROJECT REVIEW FROM THE BANK'S PERSPECWVE .3 L lytRODUCrION ................................... . 3 H. .3E SETING 3 m. THE PROJECr. 4 Project Objectives. 4 Project Description. 4 Project Concept and Design .5 Benefits and Risks. 6 IV. IWLNETTO ..................... 7 Overal Performance. 7 Disbursements. 8 Training of MlNFNTEC and Other Staff. 8 Improvement of Tax, Customs, Budgetary and Accounting Procedures 9 Improvement of Financial Management of the Parastatal Sector Portfolio 10 Improvement of Economic Policy Making .10 Government Performance .11 Bank Performance .11 Project Documentation and Data .12 V. PROJECT RESULTS AND IMPACr ......................... ... 12 VL CONCLUSIONS AND LESSONS LEARNED .12 PART II - PROJECT REVIEW FROM BORROWER'S PERSPECTIVE 14 This document has a rstricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.  page PART m - STATISTICAL INFORMATION .......................... 15 1. Related lDA Credits ...................... 15 2. Project Tunetable ........ ...................... 16 3.Credit Disbursements .................................... 17 4. Project Implementation ................. ............. 18 5. Project Costs and Financing .............................. 19 6. Project Results .............................. 19 7. Status of Covenants .......... .................... 20 8. Use of Bank Resources ................ ................. 21  (i) PROJEC' COMPLETION REPORT RWANDA TECHNICAL ASSISTANCE PROJECT FOR THE IMPROVEMENT OF PUBLIC FINANCE MANAGEMENT (CREDIT 1565-RW) PREFACE This is the Project Completion Report (PCR) for the Technic.l Assistance Project for the Improvement of Public Finance Management in Rwanda, for which Credit 1565-RW in the amount of SDR 4.9 million was approved on March 21, 1985. The credit became effective on January 10, 1986 and was closed on June 30, 1992, (except for Category 4 of Schedule I of the Credit Agreement) two and a half years behind schedule. Category 4 of Schedule I of the Credit Agreement for computers in part C of Project, was closed on September 30, 1992, with disbursement allowed up to December 30, 1992). The last disbursement under the Credit was on January 19, 1993. Only SDR 2.8 million (or about 58% of the Credit) was disbursed, and the balance was cancelled in February 1993. The PCR was prepared by the Country Operations Division of the South-Central and Indian Ocean Department (AF3CO). There was no completion mission. The Bank sent the Borrower Parts I and III with the request to prepare Part II. The Borrower did not have any comments. The PCR is based on the President's Report, the Credit Agreement, reports by and correspondence between the Bank and the Borrower, internal Bank memoranda, interviews of Bank staff who have been associated with the Project over the years, and two OED reports: Rwanda - Evaluation d'un Projet d'Assistance Technigue (credit 1565-RW) - Etude de Cas - 4 Mai 1989, and Free-Standing Technical Assistance for I-Istitutional Development in Sub- Saharan Africa, Report N