Morocco - Public Administration Support Project

Document of The World Bank FOR OFFICIAL USE ONLY Report No. 15838 IMPLEMENTATION COMPLETION REPORT KINGDOM OF MOROCCO PUBLIC ADMINISTRATION SUPPORT PROJECT (LOAN 3048-MOR) JUNE 26, 1996 Country Operations Division Maghreb and Iran Department Middle East and North Africa Region This document has a restricted distribution and may be used by recipients only in the performance of their official duties. [ts contents may not otherwise be disclosed without World Bank authorization.  CURRENCY EQUIVALENTS Currencv UJnit = Dirham (DH) Equivalencv of US$ 1.0 in Dirham (DH) (Annual Average) 1988: 8.21 DH 1992: 8.54 DH 1989: 8.49 DH 1993: 9.30 DH 1990: 8.24 DH 1994: 9.20 DH 1991: 8.71 DH 1995: 8.52DH WEIGHTS AND MEASURES Metric System FISCAL YEAR January 1 - December 31 ABBREVIATIONS AND ACRONYMS CDIF - Informatics and Training Coordination Committee CED - Committee for Public Expenditures Commitment CIPP - Inter-ministerial Project Prequalification Committee CNSS - Social Security Office COCOES - Committee for the Coordination of Economic and Statistical Studies DB - Budget Directorate, Ministry of Finance (Direction du Budget) DI - Tax Directorate. Ministrv of Finance (Direction des Impo'ts) DP - Planning Directorate. Ministrv of Planning DS - Statistics Directorate, Ministrv of Planning GIPE - Interministerial Group for Personnel and Training GOM - Government of Morocco ICB - International Competitive Bidding IGF - General Inspectorate, Ministry of Finance (Inspection Generale des Finances) LCB - Local Competitive Bidding MCI - Ministry of Commerce and Industrv MDF/MDFIE - Ministrv of Finance and External Investments MAE - Ministrv of Economic Affairs MCE - Ministry of External Commerce MDI - Ministrv of Intenror MDP - Ministry of Planning PAAP - Public Administration Support Project PAL - Public Administration Loan PCC - Project Coordination Committee SAL - Structural Adjustment Loan SAP - Structural Adjustment Program TGR - Treasurv General of the Kingdom, Ministry of Finance TR - Treasurv Directorate (Direction du Tre'sor) TVA - Value Added Tax * Several acronyms and organizations' names are the French ones. as used in Morocco.  FOR OFFICIAL USE ONLY -i1- IMPLEMENTATION COMPLETION REPORT KINGDOM OF MOROCCO PUBLIC ADMINISTRATION SUPPORT PROJECT (LOAN 3048-MOR) Table of Contents Page No. PREFACE ........................................................ ii EVALUATION SUMMARY ........................ ................................. iii PART I: PROJECT IMPLEMENTATION ASSESSMENT .................... A. Background ....................................................1 B. Statement and Evaluation of Objectives .......................................... I C. Achievement of Objectives ................................................... 3 D. Major Factors Affecting the Project ................................................. 7 E. Project Sustainability ................................................... 8 F. Bank Performance ................................................... 9 G. Borrower Performance . ................................................... 0 H. Assessment of Outcome .................................................... 1 I. Future Operation .............1...................................... 1 J. Key Lessons Learned ................................................... 12 PART II: STATISTICAL INFORMATION Table 1: Summary of Assessment .15 Table 2: Related Bank Loans .17 Table 3: Project Timetable .18 Table 4: Loan Disbursements: Cumulative Estimated and Actual 19 Table 5: Key Indicators for Project Implementation .20 Table 6: Key Indicators for Project Operation .31 Table 7: Studies Included in Project .32 Table 8A: Project Costs ................ .................................. 34 Table 8B: Project Financing ........................ .......................... 34 Table 9: Economic Costs and Benefits .............................................. 35 Table 10: Status of Legal Covenants .................................................. 36 Table 11: Compliance with Operational Manual Statements ......... ..... 38 Table 12: Bank Resources: Staff Inputs .............................................. 38 Table 13: Bank Resources: Missions ................................... .............. 39 Appendices: A. Missions' Aide-Memoires of Bank Final Supervision/ Completion Missions ................................................... 41 B. Borrower Contribution to the ICR ................................................... 51 This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed wiLhout World Bank authorization.   -ii- IMPLEMENTATION COMPLETION REPORT KINGDOM OF MOROCCO PUBLIC ADMINISTRATION SUPPORT PROJECT (LOAN 3048-MOR) PREFACE This Implementation Completion Report (ICR) is for the Public Administration Support Project (PAL) in Morocco, for which Loan 3048-MOR in the amount of US$23 million was approved on May 2, 1989, and made effective on December 28, 1989. The Loan was closed on December 31, 1995, compared with the original date of June 30, 1993. Final Loan disbursements amounted to US$22.4 million or about 98%. Counterpart funds for the project's local costs totaling about US$17 million equivalent were provided by the Government of Morocco. This ICR was prepared by Antoun Moussa, Senior Informatics Specialist, of the Telecommunications and Informatics Division (IENTI), Project Manager, and Marcel Scoffier, consultant. It was reviewed by Christian Delvoie, Chief, Country Operations Division (MN I CO), Luc de Wulf, Country Economist (MN 1 CO), and Rene Costa, Project Adviser (MN1DR). Preparation of the ICR was begun during the Banrk's final supervision/completion missions to Rabat (Morocco) in March and November 1995. It is based on material in the project file. The borrower contributed to preparation of the ICR by providing views reflected in the final missions' aide-memoires, preparing a full report on project implementation, which incorporated extensiv; information and data as well as its own presentation and evaluation of project execution, and providing comments on the draft ICR. The missions' aide-memoires and a summary of the borrower's report are included as Appendices A and B, respectively, to the ICR.   -iii- IMPLEMENTATION COMPLETION REPORT KINGDOM OF MOROCCO PUBLIC ADMINISTRATION SUPPORT PROJECT (LOAN 3048-MOR) EVALUATION SUMMARY Background 1. Following a severe financial and economic crisis in the early 1980s, the Government of Morocco (GOM) engaged in an extensive Structural Adjustment Program (SAP). The GOM initiated a set of stabilization and adjustment policies in 1984. These efforts were supported by a series of IMF standby arrangements and through a Structural Adjustment Loan (SAL) from the World Bank approved in 1988. Discussions with the government when preparing the SAL had brought to light a series of institutional shortcomings in the management and executive capabilities of the core Ministries responsible for executing the SAP and of organizational weaknesses in several government agencies steering the expected results and benefits from the SAL. This related in particular to procedural complexities, staffing deficiencies and general lack of appropriate information systems leading to weaknesses in tax administration, budgetary processes, trade and industrial promotion activities, among others. To address these weaknesses, the government of Morocco (GOM), in 1988, requested institutional and operational assistance in the form of a loan for a Public Administration Support (PAS) project. The loan was the first PAL project in Morocco to assist in carrying out specific reforms and actions under the country's SAP. It was appraised in 1988 and approved and made effective in Dec. 1989. Project Objectives and Description 2. Project Objectives. The PAL project aimed simultaneously at facilitating the implementation of the SAL reform measures, and at initiating efforts to prepare the ground for related administrative reforms. The project, providing focused support to five Government ministries, was not an administrative reform project and should not be considered as such. Instead, it focused from the outset on providing technical assistance to the GOM to improve administrative performance in targeted areas supported by the SAL, including internal resource mobilization, the monitoring of GOM's public expenditures, budgetary procedures, external debt management and external trade. 3. Project Description. The PAL project consisted of assistance to GOM through financing technical assistance, training, and large scale use of information technology in the areas of:  -Iv- a) inter- and intraministerial coordination, by facilitating the flow of information and establishing the coordination committees working with improved methodologies across administrative boundaries; b) resource mobilization, by assisting the Tax Directorate (DI) and the Treasury General of the Kingdom (TGR) of the Ministry of Finance (MDF) in improving tax administration, collection, and audit; c) resource allocation and expenditures management, by assisting the MDF and the Ministry of Planning (MDP) in: (i) improving budgetary planning cycle and procedures; (ii) implementing a harmonized budget nomenclature; (iii) strengthening of investment projects appraisal, selection, and supervision methodology; and (iv) computerizing the management of public debt; d) trade facilitalin, by assisting the Ministry of Commerce and Industry (MCI) in: (i) training staff in computer modeling for import/export forecasting, (ii) performing statistical analysis on exchange rate fluctuations, and (iii) promoting the industrial sector through enhanced quality control; and e) macroeconomic management and sectoral planning, by training staff supporting GOM's efforts to: (i) improve overall macroeconomic management. (ii) undertake sectorial studies and strengthen statistical analysis capabilities, (iii) introduce adequate information technology facilities, and (iv) promote wide scale dissemination of demographic and economic data to the public. 4. The beneficiary government agencies include the following: the ministries of finance, planning, economic affairs, commerce and industry and external trade (MDF, MDP, MAE, MCI, and MCE). The main committees concerned with project implementation and coordination include the following: the committees for coordination of economic and statistical studies, Informatics and Training, Projects Prequalification (COCOES / National Council on Statistical Data, CDIF, and CIPP), and the project's coordination Committee (PCC). Most Directorates of the concerned Ministries were directly involved in and benefited from the proicct. Implementation Experience and Results 5. The project's objectives were mostly met even though both project start-up and disbursement were slow. Start-up was delayed owing to: (i) an important restructuring, in 1990, of the GOM core agencies concerned with the project; (ii) the relatively large number of beneficiary agencies and the time required for the restructured directorates of the ministries involved to adjust and harmonize, and the cumbersome government procurement procedures; and (iii) the fact thdt the PAL was the first technical assistance project directly aiming at supporting public administration, with the beneficiary services lacking prior experience in dealing with the Bank's procedures. Three extensions of the loan closing date were required for effective project completion.  This facilitated satisfactory and full implementation of the project. Compliance with the legal covenants under the project took place with delays of 10 to 15 months, in line with the shifts in project start-up and the revised implementation schedule (see Part II, Tables 5 to 8, and 10). 6. The qualitative and quantitative results of PAL project execution were satisfactorily met through the effective coordination between the agencies benefiting from the project. Improvements in economic management include the development of "economic" budgets and the implementation of various sectoral measures. These measures include improving access to information on international trade, establishing of industry promotion mechanism, producing of various sectorial studies and publications, and introducing improved methodologies and facilities for information flow and access. Additional accomplishments were achieved in the management of public finance with regard to tax collection and audit, budget preparation, execution and follow-up, and treasury management. 7. Additional efforts remain to be made, however, to achieve the long-term objectives of public administration modernization in Morocco. They relate in particular to: (i) integrated public financial management and fiscal forecasting,; (ii) implementation of a comprehensive human resources development program; and (iii) extension, nationwide, of the new methodologies, and information systems introduced under the project. Although concrete programs were introduced for interministerial coordination, such coordination needs to be strengthened further as does the flow of information in the relevant services. Action plans seeking to further improve such coordination and enlarge project results and benefits were tentatively developed for future operations. (see Part II, Tables 5, 6, and Appendix A). 8. The key findings and lessons learned are as follows: Proper implementation and satisfactory results have been facilitated by: (i) The close liaison and coordination among the borrower and Bank teams associated with the SAL and the PAL, that were observed at all levels of its preparation and execution; (ii) The flexibility in project design that allowed the development of annual work programs; and (iii) The continuity of staff assigned to it from the concerned government agencies and from the Bank during the entire project cycle. The important restructuring and organizational changes, required by the SAL, resulted in some adjustments and delays in project implementation. However, this was beneficial to the project because:  -vi. (i) Implementation occurred in tandem, with organizational/structural changes and therefore assured adequate internal support; and (ii) The delay enabled the beneficiary agencies to benefit from technological progress including open, compatible and more efficient information systems in the various phases of the project; and (iii) The project demonstrated that informatior technology can be used to remove and/or reduce inefficiencies in public administration (tax administration, budget preparation, expenditure management, quality control, etc...), and can be very effective in reinforcing discipline and accountability in public service. 9. With regard to future operations, implementation experience reveals that the project has succeeded in focusing the attention on the major bottlenecks in the Moroccan public administration. The project initiated a process of change which needs to be nourished and continued. To assure such continuity, the turnover of staff in the beneficiary agencies whose skills were upgraded through project supported training needs to be addressed within a larger scope of administrative reforms. The GOM has indicated that future operations should be pursued based on the openings produced by the project to build upon the momentum generated by it. To realize the long-term objectives of administrative efficiency, actions toward further modernization of the public administration in Morocco should be pursued by the Bank, within the context of a comprehensive public administration program focusing on public finance management, overall civil service reforms, and the development of a strategy for deploying a national information infrastructure.  IMPLEMENTATION COMPLETION REPORT KINGDOM OF MOROCCO Public Administration Support Project (Loan 3048-MOR) Part 1: PROJECT IMPLEMENTATION ASSESSMENT A. Background 1. Following a severe financial crisis in the early 1980s, Morocco had to engage in an extensive Structural Adjustment Program (SAP). The crisis was due to the fact that the high level of expenditures financed by a temporary increase in phosphate price and large borrowing, which was not sustainable in light of the plunge in the prices of export (phosphate), compounded by declining productivity of public investment and a prolonged drought through 1984. The SAP aimed to achieve a stabilization first, then a sustainable increase in the rate of economic growth. Tnis was intended to ensure employment opportunities and acceptable living standards for Morocco's growing population, while shouldering debt service burden and enhancing external creditworthiness. The Bank supported first phase of Morocco's adjustment efforts through a Structural Adjustment Loan (SAL) approved in 1988. 2. During preparation of the SAL, discussions with the Government had brought to light a series of institutional shortcomings in the planning, organizational and general management capabilities of those core ministries responsible for executing the SAP. Specific measures were needed to strengthen public administration. These measures were required to alleviate or remedy the prevailing constraints to their effective operation. in particular, their effort to implement fiscal, budgetary, and trade policies. To address these weaknesses, in 1988, the GOM requested institutional assistance in the form of a loan for a Public Administration Support Project (PAL). B. Statement and Evaluation of ObjectivEs 3. Loan 3048-MOR to the (GOM), in an amnount equivalent to US$23.0 million, was the first Public Adminis.ration Loan (PAL) project in this country. It was intended to support the implementation of specific measures under the country's SAP and to lay the ground for future administrative reforms. Since 1989, a first phase of SAP had been underway with the assistance of the SAL (Loan 3001-MOR). The PAL project was appraised in 1988. The loan was approved on May 2, 1989, and made effective in December 1989 (see Part II, Table 2).  -2- 4. Project Objectives. The project aimed simultaneously at facilitating the implementation of the SAL reform measures, and at initiating efforts to prepare the ground for related administrative reforms. It focused from the outset on providing technical assistance to the GOM to improve administrative performance in targeted areas supported by the SAL, including internal resource mobilization, the monitoring of GOM's public expenditures, budgetary procedures, external debt management and external trade. The project, providing targeted support to five Government ministries, was not an administrative reform operation and should not be considered as such. To reach the project objectives, the core agencies were to strengthen their administrative capability as follows: (a) the Ministry of Finance's (MDF) was to increase its capability to mobilize resources through improvements in tax administration and collection, in planning and undertaking public expenditure programs, in managing public debt, and in pursuing the decentralization of its services; (b) the Ministry of Planning's (MDP) was to improve its capability to coordinate investment programming; (c) the Ministries of Planning (MDP) and Economic Affairs (MAE) were to strengthen their capacity to analyze macroeconomics developments and statistics; and (d) the Ministry of Trade and Industry (MCI) was to improve import-export forecasting and external trade management and to enhance industrial quality and undertake export promotion activities. These objectives were set out as priority targets under the SAL on the basis of reports, studies, and reviews of government officials. 5. Project Description. This two-tiered project consisted of (a) assistance to the GOM to introduce improved financial and operational management practices, and (b) enhanced operational capabilities. The first task was to be accomplished by supporting enhanced methodologies and procedures that aimed at strengthening and improving macro-economic management and at facilitating and coordinating the flow of financial and economic information among the core economic ministries. Operational support was to be provided to the GOM through financing, consulting and advisory services; training and workshops, and equipment. Specific project activities include the following elements: (a) resource mobilization, to assist the Tax Directorate (DI) and Treasury General of the Kingdom (TGR) of the Ministry of Finance in improving tax administration, collection, and audit; (b) resource allocation and expenditures management to assist the Ministry of Finance (budget and treasury directorates, and Treasury General) and Ministry of Planning (planning and statistics directorates) in: (i) improving budgetary planning cycle and procedures; (ii) supporting the implementation of a new harmonized budget nomenclature; (iii) strengthening investment project appraisal, selection, and monitoring; and (iv) improving the management of public debt; (c) trade facilitation, to assist MCI in improving external trade management, import- export forecasting and in promoting the industrial sector; and (d) macro-economic management and sectoral planning, to support the GOM's efforts to improve overall macroeconomic management and the statistic and data basis required for specific economic and sectoral programs and planning. 6. For each of the above elements, the project provided funds for: (a) technical assistance and studies to improve management practices and methodology, and  -3- institutional procedures; (b) training to improve staff skills and prepare them to their tasks; and (c) information technology software and hardware to improve operational capabilities in the above areas. 7. To ensure sustained implementation of SAL reform objectives, the project also provided for coordination among the large number of beneficiaries through: (a) establishing a Project Coordination Committe-e (PCC) comprised of representatives from all the agencies concerned, and appoirnting a prGject administrator; (b) establishing or revitalizing committees to improve inter- and intra-agency coordination; (c) simultaneously strengthening all the core agencies involved in implementing policy reforms under the SAL rather than assisting one or two in isolation; (d) covering at the same time complementary organizational, procedural, and technical aspects; and (e) emphasizing staff training. It had been agreed that the w.,rk programs and expected outputs within the core agencies concerned would serve as indicators for project implementation. These schemes and the expected results (detailed in Part II, Table 5) were flexible enough to enable adjustments in project implementation that would result from organizational changes under the SAP. The above project components were appropriate for efficient implementation and had been elaborated during project preparation in 1988, in cooperation with the SAL teams and with external consultation advice. C. Achievement of Objectives 8. As discussed below, most of the project objectives have been substantially achieved. T he measures taken within the concerned government agencies enabled to initiate or accomplish the following improvements that were sought by GOM under major parts of its SAP: (a) introduction of improved practices in budget preparation, tax and revenue administration, public expenditures, industrial quality control, and export promotion; (b) improved coordination among and within the concerned core ministries and their involved agencies, so that new methods and procedures could be introduced, being addressed through "productive sector type" work approach and practices rather than the usual administrative environment; (c) introduction of large scale computerized systems within five ministries responsible for tax administration, budget preparation and execution, external trade, industrial promotion, sectoral statistics, and civil service administration; and (d) extensive training in these and related skill areas. 9. Given the nature of the project, no direct criteria for judging its output were established at the outset. However, indirect development impact criteria were established as output indicators (see Part II, Table 5), and these criteria were monitored and updated during project implementation. Some of these development impact criteria which were realized by the project, include: - Preparation of the Treasury performance chart on a daily basis; - Preparation of a periodic MDF performance chart;  -4- Establishment of a unique tax identification system, which is now used for TVA and is being generalized for all taxes; - Increased volume reliability, and timeliness of tax audits; - Provision of on-line .nformation on, and for, tax payers at the regional and local levels; - Important reduction of time required to pay public expenditures by the TGR. - Establishment of a central library on public debt and a system to identify opportunities for rescheduling; - Routine publication of sectoral statistics and studies; - Introduction of harmonized budget nomenclature enabling economic analysis of budgetary options, the preparation of economic budgets, and the reduction in budget preparation cycle; - Preparation and publication of industrial standards and export opportunities for selected products; - Approximately 1200 management and staff were trained in tax administration, treasury and debt management and information systems - in addition to macroeconomic modeling, statistical analysis, external commerce, industrial promotion as described in the paragraphs below - (see Part II, Table 5); and, shared and efficient information systems were established with effective telecommunication capabilities with other government services. 10. The project was also instrumental in identifying administrative bottlenecks and required solutions. The government in fact requested a follow-up operation, modeled after this project, to launch overall administrative reforms. Summary achievements of the project in its beneficiary core agencies (MDF, MDP, MAE and MCI) are provided below (paras. 11 to 16) and shown in more details in the attached matrix (see Part II, Table 5). Each agency and its directly concerned services benefited of a proportional part of the project's finances and related operations, namely: process coordination, studies and training, and modernization of work methods through computerization. The latter included the creation of shared or compatible data bases and systems (hardware, software, applications) and relevant technical assistance. 11. Improvement in Inter- and Intraministerial Coordination. A number of mechanisms were established under the project to enhance inter- and Intraministerial coordination. The coordination mechanisms focused on: (a) the revitalization/activation of the intermninisterial bodies responsible for the provision and circulation of statistical and financial data (COCOES/National Councii on Statistical Data); (b) the development of a database (GIPE) to enable improved management and remuneration of civil service employees and the creation of an intermilnsterial working group to address related issues; (c) preparation of a new budget nomenclature; (d) introduction of a "Performance Chart" for the Treasury, integrating inputs from different directorates, using compatible information systems and on-line access to common databases between the directorates of the Ministry; (e) selection criteria and methodology for projects to be included in the budget, applied jointly by concerned services of the MDP and MDF, for the first time; it should be noted that due to the subsequent reorganization and the realignment of services  -5- within the MDF and MDP, this important activity is not being pursued actively and require further support; and (f) the establishment of electronic communication (ALL-IN- 1) arnong all public administration agencies in Morocco, and between them and the Bank. The later enabled interagency sharing of information and electronic messaging, in addition to access to data bases of the Bank and other international agencies. Although coordination mechanisms have not resolved all coordination requirements between the agencies concerned, they have resulted in establishing common methodologies, information bases, and interlinked information systems. In turn, these systems have reinforced discipline, introduced efficiency in economic management and monitoring (budget preparation time greatly reduced), and shed the light on existing deficiencies and the required remnedies. 12. Improvement of MDF's Capability in Public Finance Management. MDF was a major project beneficiary, up to about 88 % of its cost. MDF coordinated the implementation of its activities through an interministerial Project Committee, supported by the necessary technical assistance, training, computer hardware and software, and operational support. On the basis of updated organizational and operational plans for the Budget, Tax and Treasury Directorates of the MDF, (DB, DI and DT, respectively), the project achieved the following: (a) new structures were created or merged to deal with fmancial forecasting, debt management, and investment projects analysis, and new budget nomenclature was prepared; (b) tax administration was greatly improved and made efficient through the actual use of computerized taxpayer identification files and related databases in budget, tax codes and tax collection; and (c) large-scale training was provided both within the country and overseas, including France, Canada, and the USA. 13. The effective computerization of the main MDF's activities in public finance management, and the introduction of compatible information systems and shared databases, as well as improved procedures, covered the main areas of activities of MDF's responsibilities. The project's operations covered, among others: (a) DI's Tax Administration, establishment of a unique Tax Identification system, adoption of tax simulation techniques, reinforcing tax audit and collection and establishing shared data bases in the areas of Income Tax, value added tax (TVA) and local taxes (in part), custom duties and other levies. MDF now uses computerized records for taxpayer identification and fiscal data, thus expediting tax collection, and providing means to upgrade tax audits and enhance public use of tax information and awareness. For example, transmission of information tax dues and of belated payment reminder forms to private and institutional taxpayers is now completed in three months and two weeks, respectively, compared to previous six and two months. In addition, the development of computerized and integrated tax management (TVA-IS) has enabled the launching of follow-up measures for late filers 15 days after the filing deadline, as compared to three months prior to the project; (b) DB's budget management and administration, including implementation of new budget nomenclatures with appropriate liaison and interfacing with concerned government and treasury account agencies, and budgetary projections activities, also introducing a "working capital" item for project being financed and mechanisms to simplify credit carryovers, and preparing a new government chart of accounts. The new  -6- budget'nomenclatures permit economic and functional classification of government expenditures as well as special accounts receipts, but needs to be improved further to include identification at the "project" level which would permit better supervision and control of agencies' expenditures. The computerized budget management system, developed under the project, enables instant reference control of public expenditures when they occur, which previously required several days; and (c) DT's and TGR's public treasury administration, with regard to all treasury accounting offices and cash management, domestic and external public financing and debt management, including introduction of auction procedures for treasury notes and current treasury papers. TGR now disposes of 240 PC terminals for its 600 professional staff, which compares with previous 30 units. An integrated database on personnel (GIPE, para. 11) for MDF and for the ministries of public works and higher edlucation which have extensive civil service staff, were also established. 14. Improvement of MDP's and MAE's Capabilities in Macroeconomic Management and Statistical Analysis. Assistance to the MDP and MAE aimed at improving and strengthening of the staff capabilities in: (a) macroeconomic analysis and forecasting; (b) investment planning; and (c) statistical analysis, including establishment of a computerized database of basic national statistics. This resulted in the production of economic budgets, which include macroeconomic trend forecasts currently reflected in the annual Law of Finance. The dissemination of statistical data on the national economy is now made on a regular basis. Also, the capacity for statistical analysis was greatly increased and direct access to statistical databases by concerned parties was made available. 15. The work program to modernize, expand, and computerize these activities was designed during project preparation, and was implemented later in coordination with the actions taken by other core agencies in charge of finance, economy, trade, industry, and population. The concerned directorates were provided with common training in macroeconomic management, software modeling packages, computer hardware, communication networks, and technical and operational support. This was required to ensure efficient internal and inter-agency operations at all levels. The Statistics Directorate (DS) of MDP had expanded its internal network from 19 to 140 terminals sharing access to important national statistical databases. Interagency linkages were also established, and computer-based communication networks were connected to other departments and went beyond planned operations to provide telecommunication to external users through the North African data transmission network MAGHRIPAC, which also introduced selected access to Internet. 16. Improvement of MCI's Capability in Management of External Commerce and Industrial Promotion. The project also enabled and provided for: (a) the establishment of statistical information on the industrial sector by MCI's Industry Administration Directorate, in liaison with MDF/MAE's activities in this field, making this information available to industrial/private sector concerns; (b) training in quality control of industrial products and in external trade management, and (c) computer  -7- modeling and related software to assist in import-export forecasting, in the use of statistical data on external trade and the industrial sector for appropriate follow-up and analysis, and in assessing export competitiveness, the impact of exchange rate and other economic fluctuations. Staff in charge of the external commerce were trained through seminars and courses in specialized institutes, and through on-the-job training on new procedures and activities. D. Major Factors Affecting the Project 17. Factors not generally subject to Government Control. When the project was appraised in 1988, the GOM was pursuing its SAP with Bank support under the first SAL. Important reforms and restructuring of the main ministries were envisaged or underway. Even though the project had adopted a flexible yearly implementation plan, actual execution of some training and computerization programs were delayed on the account of the administradJve changes that were affecting these agencies (see para. 19). Because most of project operations were considered and prepared under a master plan to modernize and improve inter- and intra-agency procedures, these plans had to be readapted to consider the changed structures and procedures. The main functions supported by the project were not materially affected by the reorganizational changes. The project unallocated funds were used to finance studies and technical assistance which came to light as a result of these changes. The detailed planning of the components and actions for the core agencies of the ministries concerned by the project had to be elaborated on account of and in close coordination with the views, factors and changes being determined or undertaken under SAP. Though delays have been involved, this resulted in the improved provision of up-to-date information technology facilities, more appropriate procedures and staff resource utilization, and in increased internal capacities for the effective operation of the current operations and their long-term sustainability. 18. Factors generally subject to Government Control. At project inception in 1989, the GOM promptly established the interministerial PCC, with authority to finalize project preparation with the agencies and to ensure its implementation and supervision through completion, in liaison with the Bank. Project start-up was delayed, however, during the first year of its implementation, as explained below. 19. The problems encountered in the progress and timely implementation of the project are detailed on Table 13 of Part II. These were mainly due to: (a) redistribution of the responsibilities and internal reorganization of several beneficiary agencies of the MDF, MDP, and MAE. This occurred following restructuring of these ministries in 1990, when new ministries were created and old ones merged and delayed, in turn, the finalization of plans for training, technical assistance, and computerization; (b) slow and difficult start-up of an adequate and coordinated procurement process; and (c) initial shortages (until 1992) of local funding for project operations in the budget of the concerned agencies. These difficulties were not foreseeable before the changes at government organization level had been made under the SAP.  -8- 20. Most of the implementation difficulties were overcome by end 1992, through the dedication and experience acquired by PCC and the participating agencies, and the effective guidance and cooperation from the Bank's project supervision team. For instance, project contingency funds were used to increase the production and publication of statistical surveys when the Ministry of Planning was abolished. In 1991 standard bidding documents for equipment and services and uniform selection procedures for seminars and trainees were introduced. Detailed progress reporting by PCC also helped in resolving the initial problems. This enabled a level of commitment of 70 % for the project components by mid-1 993, the remaining 30 % being then defined and programmed. 21. Implementation Schedule. According to the original plan, most of the components to be financed through Loan 3048-MOR should have been completed by the end of June 1993. Moreover, the related achievements on work procedures, staff training, and computerization should have been fully operational by end 1993. In the above context of slow project start-up (paras. 18 to 20), implementation of some operations at the MDF, then restructured and renamed Ministere des Finances et des Investissements Exterieurs (Ministry of Finance and External Investments] (MDFIE), was delayed by about two years. The late start-up and the restructuring and organizational changes made in 1990-91 in the concerned agencies resulted in adjustments to the projected activities and their implementation plan. Three extensions of the closing date-from June 30, 1993, through December 31, 1995- were needed to enable full implementation of the adjusted project. 22. Project costs, financing, and disbursements are detailed in Part II, Tables 4, 8A, and 8B. Project costs were virtually unchanged from appraisal estimates, later tendering for the adjusted components having enabled them to benefit from technological progress and better prices (para. 17). From 1991 on, budget appropriations of the agencies involved in the project were adjusted, as needed, to meet local costs, which increased by about 3 %. Some technical assistance on new and improved methods and procedures, in particular computerization programs of the treasury and budget directorates and the study on the factors of economic growth in Morocco and cash management, were implemented with parallel financing from France, Canada, and the USA. Disbursements reflected the delayed project implementation, with the loan virtually fully disbursed at completion. E. Project Sustainability 23. The benefits and impacts of the project are significant and sustainable. The main objectives of the project were to assist in strengthening the capabilities of the core economic management administrations of the Borrower (i.e., MDF/MDFIE, MDP, MAE and MCI). Expected benefits were largely met from improved capacity both in the mobilization and allocation of domestic resources and in extemal trade. The physical, technical assistance and training components of the project were fully implemented in the several directorates and services of the concerned ministries. These components included  -9- implementing modem and efficient work methods and procedures, assigning qualified and trained staff in charge, and introducing up-to-date computerized facilities. 24. Four important aspects of the project concept and implementation that will support and ensure its sustainability are as follows: (a) the time given to adapt project design and implement its operations after in-depth restructuring of the beneficiary ministries and concerned agencies under Morocco's SAP; (b) the participatory approach to its concept, design, and implementation; (c) the focusing on economic management functions horizontally - encouraging cross-agency staff to come together and address functional and administrative weakness; and (d) the thorough coordination exercised in its preparation and implementation. The ministerial restructuring supported by SAL under SAP enabled the project applications to be developed in a durable environment, and the resulting delay in project schedule enabled the use of more up-to-date and robust information technology solutions. The inter- and intraministerial committees were adjusting and monitoring the project including the information technology development and training (CDIF within MDF) and PCC. This ensured: (i) the development of information systems with common operational and access standards, and of procedures open to vertical and horizontal activities w:thin and between the beneficiary agencies; and (ii) more efficient and durable project outcormies, with broader sustainable impacts. This also prevented the development within the various agencies of duplicate work methods and smaller less efficient and incompatible computerized systems, with limited term capabilities. 25. The project was a first phase to address ascertained weaknesses in GOM's planning and financial management capability and to improve budget procedures and external debt and trade management under the SAL reforms. Through the introduction of modern computerized methods and facilities in the concerned agencies, it started a dynamic process of modernization by enabling the creation of basic info-structures for important aspects of economic management. Project implementation revealed a next stage of future operations, which is required to further modernize and improve the efficiency of the country's economics and financial administration. These operations have been discussed and agreed with the GOM and include (a) further reform of public financial management; (b) the development of strategies for overall computerization of the public administration and its services; and (c) the establishment of adequate information infrastructures, access, and dissemination. 26. Based on the above outcomes, project sustainability is very likely. Prospects to further improve work methods and procedures, and to enlarge the modemization process within Morocco's public administration would enhance the project outcomes and warrant its sustainability. F. Bank Performance 27. Preparation and Appraisal. The project was based on the Morocco's SAP, supported by the Bank's SAL, under which the need to strengthen and improve the  -10- country's finance and economic administration had been identified. The Bank promptly reacted to GOM'S request in 1988 for assistance in improving the production and dissemination of economic and financial infornation within its public administration, enhancing budget management, modernizing fiscal administration and improving public debt management. During preparation, the Bank insisted, in coordination with the SAL implementation team, on the need for tight inter- and intraministerial coordination, and for adequate technical assistance and staff training. This would ensure effectiveness and openness and allow future development in operations undertaken. The Bank also insisted on project coordination and an adequate administration of its implementation. 28. Supervision. The project was supervised as detailed in Part II, Table 13. A total of ten missions were performed during the six-year implementation period. Given the wide scope of the project and the complexity of some of its activities, not enough resources were provided for its supervision. The restructuring of the core ministries concerned, during the first and the second year of project implementation, delayed but did not reduce the need for the coordination requirements emphasized during preparation and appraisal. Also, close consultation and liaison were maintained with the SAL supervision team. Together with active cooperation from the PCC and the beneficiary agencies, this close consultation was greatly beneficial to the project, and to its outcomes and impacts. At project completion, the Government requested the Bank to assist to identify and defme a follow-up operation to refor-m public financial management, to expand the computerization process, and to intensify human resource development in the public administration. 29. The project results discussed above show that the overall Bank performance has been very satisfactory. G. Borrower Performance 30. Borrower performance was satisfactory during project preparation and implementation. In early 1988, the PCC was established, with the mandate and authority to coordinate project preparation and implementation, and to liaise with the Bank. At the same time, three commissions, the National Council of Statistical Data, CIPP and CDIF, were established, or specifically mandated, to cooperate with PCC and adequately liaise, at project concept and during implementation, with the several government services and agencies involved in the project. The cooperation of all these units was tentative at times, but was generally adequate to ensure satisfactory conduct and outcomes of the project. In particular, in 1991-92, PCC adequately resolved implementation problems. Examples include international competitive bidding procurement procedures, the lack of budgetary allocation for local costs, and the selection of candidates for training (paras. 18 to 20). PCC also steadily and thoroughly reported to the Bank on the progress of the different operations under the project. A detailed final report on implementation was preliminarily discussed during the last Bank supervision mission and produced at project completion (December 1995).  -l l- 31. The status of compliance with the legal covenants of the Loan Agreement is detailed in Part II, Table 10. All the covenants were complied with. Compliance took place after delays of 10 to 15 months, in line with the overall delay in project start-up and implementation schedule (para. 21). H. Assessment of Outcome 32. The outcome of the project is satisfactory. All the physical and operational outputs of the project were achieved in the several beneficiary agencies and units of the ministries of finance, planning, economic affairs and commerce and industry. These outputs included: (a) the study of important institutional and organizational aspects and the working out of adequate methodologies and procedures to reorganize and improve the work of these agencies as they relate to economic management; (b) the actual introduction of these procedures within the agencies, with adequate technical assistance; (c) professional and on-the-job training for management and staff; and (d) installation of computerized systems that were operationalized with adequate training. The indicators for project implementation and its outputs are detailed in Part II, Table 5. In line with the objectives agreed at appraisal and in the legal documents, the main project outcomes were an improvement in GOM's capabilities in public resource mobilization, budget preparation and expenditures management, external trade management, sectoral planning and macroeconomic management (paras. 8 to 16). Limited objectives were met with regard to improving public debt management owing to the decision of the Treasury Directorate not to fully use project funds (and assistance) in this area. Perhaps the major impact of the project is that of raising internal awareness about administrative bottlenecks and the importance of both process simplification and information access and sharing. The changes brought up by the projects in these areas have reduced in large part resistance to future administrative reforms. The assessments under the various aspects of project preparation, implementation, and results are summarized in Part II, Table 1. I. Future Operation 33. Achievements under the project are sustainable and beneficial to the agencies involved, which have now enhanced internal skills and operational capacity to improve their future operations (paras. 23 to 25). The project outcomes enabled the achievement of its main objectives, derived from the SAL, and will undoubtedly continue to develop favorably (paras. 8 to 16). 34. The project also revealed the need for continuing the methodological and procedural changes, and the introduction of expanded computerized information systems in public administration. This would be set within the context of appropriate national policy guidelines and coordination mechanisms. In addition, the pursuit of the rationalization and efficiency targets of budgetary, fiscal, and public debt management would require further public expenditure reforms and the continuation of the modernization efforts initiated by the project. The above could occur nationwide at the  -12- central, regional, and local levels. It could be undertaken in a subsequent stage of activities, which has already been considered by GOM and discussed with the Bank. J. Key Lessons Learned 35. The key lessons learned are as follows: a) Project implementation and satisfactory results have been facilitated by: (i) the close liaison and coordination that were observed in project concept and design, at its inception, between the staff involved in the SAL and the PAL, at both Bank and government levels; (ii) the continuity of staff assigned to and involved in the entire project cycle, on both Bank and GOM sides; and (iii) the effective coordination in project planning, implementation and supervision exercised by the Bank and the PCC, and with the sustained contribution and guidance from the other inter-ministerial commissions involved. b) The important restructuring and organizational changes that took place in 1990, as part of the government SAP, resulted in adjustments of the project operations and schedule. This was beneficial to the project in two ways: (a) the project was implemented within a continuing internal support; and (b) the delay caused project computerization activities to take advantage of technological progress, using open compatible technology and common standards, essential for long-term sustainability. c) The successive restructuring and reorganizational changes during project implementation have caused important turnovers in the staff of the administration involved, whose skills were upgraded under the project. Though additional training was introduced to compensate for staffing changes, this contributed to delays in project implementation. d) Overall public administration in Morocco still suffers from procedural bottlenecks and less than satisfactory coordination. However, this project has demonstrated that removing or reducirig these obstacles is possible. Addressing functional requirements across administrative boundaries and using information technology to reinforce discipline, to ensure accountability, and to "de- personalize" the public administration, are catalysts to the administrative reform process. 36. This project was a first of its type and nature, that is, involving work methods and procedures, and the related information systems, in a large administrative context. The introduction of modernized practices and information technology in the beneficiary agencies brought to light the dynamic character of the "computerization process" and the need to pursue and expand it: (a) where the project already provided improvements in procedures and staff capabilities; and (b) globally within and between  -13- most of the other government administrations and services. Future actions toward a feasible stage to further strengthen public administration in Morocco within a global information infrastructure strategy are being considered by government, and discussed with the Bank. This would advocate continued Bank involvement to support and encourage the modernization of Morocco's public administration.  -14- KINGDOM OF MOROCCO IMPLEMENTATION COMPLETION REPORT PUBLIC ADMINISTRATION SUPPORT PROJECT (LOAN 3048-MOR) PART II: STATISTICAL INFORMATION Table 1: Summary of Assessments Table 2: Related Bank Loans Table 3: Project Timetable Table 4: Loan Disbursements: Cumulative Estimated and Actual Table 5: Key Indicators for Project Implementation Table 6: Key Indicators for Project Operation Table 7: Studies Included in Project Table 8A: Project Costs Table 8B: Project Financing Table 9: Economic Costs and Benefits Table 10: Status of legal Covenants Table 11: Compliance with Operational Manual Statements Table 12: Bank Resources: Staff Inputs Table 13: Bank Resources: Missions Appendices A. Missions' Aide-Memoires B. Borrower Contribution to the ICR  -15- Table 1: Summary of Assessments A. Achievement of objectives Substantial l Negligible Not applicable Macro policies E a a:! Sector policies E E IXE Financial objectives x] a o Institutional development E0 I a a Physical objectives E 0 Poverty reduction El E al Gender issues E E El Other social objectives n El Environmental objectives E El 0E Public sector management Ix El aE Private sector development E a ] Other (specify) E E El B. Proiect sustainability Liy Unlikely Uncrrtain (1) (1) (1)  -16- HWhJY satisfal Satisfactorv Deficient C. Bank performanc ( ) ( ) Identification lx ] Preparation assistance [m : Appraisal E C Supervision l j D. Bofrower performance satisf Safacto Deficient (') (V) ) Preparation l El Implementation i x a Covenant compliance lj E D Operation (if applicable) El F ] ~~~~~~~~~~~~~Highly E. Assessment of outcome satisfactoIy Satisfactory UnsatiLfact= isfactory E() (l) (V) (I) 1: mx 1: O  -17- Table 2: Related Bank Loans Loan title Purpose Year of approval Status 1. Loan 3 M001 - To assist Government in a 1989 Completed in Structural Adjustment first phase of Morocco's 1994 Loan (SAL) Structural Adjustment program, aiming at increased rates of economic growth and employment opportunities, at improved living standards for the population and external worthiness for the country. 2. Current Cgmpleted To facilitate the carrying 1989 Completed in Loan 3048-MOR out of the SAL reform December 1995 measures by strengthening of the capabilities of core government agencies in economic, financial and planning management.  -18- Table 3: Project Timetable Steps in project cycle Date planned Date actual/ latest estimate Identification (Executive Project Summary) October 1987 Preparation November 1987 Appraisal June/July 1988 Negotiations. March 6-10, 1989 Letter of development policy (if applicable) November 1988 (under SAL I) Board presentation May 2, 1989 Signing September 28, 1989 Effectiveness December 28, December 28, 1989 1989 First tranche release (if applicable) NA Midterm review (if applicable) NA Second (and third) tranche release (if applicable) NA Project completion June 30, 1993 April 30, 1996 la Credit closing June 30, 1993 December 31, 1995 L la To enable completion of ongoing operations and related final disbursements after the loan closing date. ll Three extensions of the closing date were required for the effective project completion. The first one on 05/19/93, by one year, was due to an important restructuring, at project inception, of the concerned government agencies. The two others were required, to enable completion of the project activities committed under an adjusted implementation plan. They occuired on 06/14/94 and 05/19/95 by one year and six months respectively  -19- Table 4: Loan Disbursements: Cumulative Estimated and Actual (US$ million) FY89 FY90 FY91 FY92 FY93 FY94 FY95 FY96 Appraisal estimate 2.50 8.50 14.50 20.00 23.00 23.00 23.00 23.00 Actual 0.00 0.00 3.07 5.91 8.74 9.65 11.65 22.33/a Actual (as % of estimate) 0.0 0.0 21.2 29.5 38.0 41.9 50.6 97.1 la Date of last disbursement: May 14, 1996 Note: IBRD fiscal year end is June 30th. la An undisbursed amount of US$668.2 millions was canceled on May 14, 1996, the date of the last disbursement and closing of the loan account.  Page I of 11 Table 5: Indicators for Project Implementation Key Project Activities A. Inter- and Intranministerial Coordination Govemnment objectives Measures previously adopted Planned measures Implemented measures Output indicators Responsi (1989) bility Improvement of financial Agreement to revitalize COCOES Definition and preparation by COCOES has been replaced by a Statistical information have become more MDP management by: (a) (the Committee for Coordinating COCOES of procedures for national Statistical council, widely available to the public. Social, DS rationalization and Statistical Studies). identifying and using financial and through a PM decree, with similar demographic and economic statistics are standardization of economic data, and determining mission and attributes. The produced and published periodically. financial and economic Issue of Prime Minister circular on the responsibilities of the various council's efforts are modest, but data; (b) intra- and strengthening of COCOES' role. agencies concemed in particular DS conducted and published a interministerial the Ministry of Finance (MDF), large number of statistical studies. coordination of the Ministry of Planning (MDP), information flow. the Ministry of Interior (MDI), and the Ministry of Commerce & Industry (MCI). Jan 1989 - Dec. 1989 MDF circular on establishment of Implementation of coordinating Several subcommittees were MDF 'tableau de bord,", or performw ice MDF CDIF (Informatics and Training capability. established under the terms of chart, was first produced a. the end of 95, CDIF Coordination Committec) Jan 1989 - Mar 1989 reference of the CDIF. integrating input from different Coordination between different directorates, to the establishment of MDF directorates (TGR, Di, DT, compatible information systems. DB, & CED) was reinforced especially in executing training and computerization programs. Establishment in MDF of an Preparation of MDF performance Economic monitoring capability greatly MDF economnic projections and studies chart. enhanced. Treasury unit Jan 1989 - Dec. 1989 Improved coordination in April 1987 circular for Criteria and methodology for pre-selection CIPP selection and monitoring implementation of economic of investment projects were established and MDP of investment projects. approval of investment projects. commonly used by MDP and MDF prior to (DS) Meeting of CIPP (Inter-Ministerial reorganization of the MDP. While not used Project Prequalification actively now, all material exist and can be Committee). used once restructuring is completed.  Page 2 of II Table 5: Indicators for Project Implementation Key Project Activities 3: Resource Mobilization I) - Tax Administration Govemnment objectives Measures previously adopted Planned measures Implemented measures Output Indicators Responsibility (1989) Comments Preparation of economic PM circular of April 1987; Law Preliminary draft of new budget Eight economic budgets were Correlation between MI)FIE budget. No. 39-87. outline. Harmonization of budget produced by MDFIE/MDP(DP) economic projections and MDP kDP) plan with appropriation law. budget execution greatly Review of budget plan. improved. July 1989-Dec. 1991 Increased f&s&aI revenue within the frmwor': of govanment adjm;rment progran Improvemnent of tax Registration of preliminary files, Completion of file and analysis of Computerized general taxpayer Unique taxpayer MDF adminisution through the 90% cornplete. records for private and records were established for identification for VAT and MDI csbblishment of a unified institutional taxpayers. taxpayer identification/fiscal data other taxes in use. ta> payer identification file. base. Selection from file of tax data Fiscal census was made and MDF (Dl) and computerization of general unified taxpaycr ID and statas taxpayers records. Completion data were used for data bases. and updating of fiscal/taxpayer Actual use of data base in tax identification data base. administration. July 1989 - Dec. 1991 Establishment of records and preparation of taxpayer identification. Computerization of general Computerized unified taxpayer records. taxpayer identification file Jan 1990 - Dec. 1990. in actual use. Completion and updating of fiscal data base. Jan 91 - Dec. 91  Page 3 of II TableS: isad ws for Prjct ipkmeatatieo Key Project Activities B: Resoorce Mobiliatio. - Tax Admimistratdoo Govanment Objectives Menumrs ously dopted Planned measures Implemented measures Output indicators Responsibility (1989) Comments Imrovements in tax Two computer centers Study to identify fisal simulation Recommendations, measures and Use of Tax data base and MDF adminhnrdo redtods and establisied. techniques. Formulation of a action plan for fiscal simulation Tax simulation to provide Dl & TG P-s tihmdugl group to study simulation techniques were implemented and input to budget preparation development of computerized Htrmonization of VAT codes techniques. are being used in budget and related policies. infonnation/mamageuit witbin the crntry with VAT Jan 1989 - Dec. 1990. preparation. decision making systems. codes fbr imports. Study for identifying Working group of TGRDB and Actual progrcss was made MDF Intra- requirments for data transfer, Dl officials, monitors data in use of data bases, ministerial procedural interfaces nd systems transfer and the use of computcrization at TG Comminttee compatibility among tde Budget, harmonized data in budget and enabling direct access to Treasury Geneal and Tax tax codes, and tax collection, unified taxpayer Directorates. (since 1993). identification file. to June 1989-Sept 1989 s Computerization plan prepared. Review and/or updating of Master plan for computerization MDF (Dl & TG) computerization pli if was updated. Equipment and necesswry. software were procured and Sept. 1989 - Dec. 1989 installed. Methods and procedures of fiscal administralion were adapted and coordinated, (since 1993). Preparation of bidding documents MDF (Dl & TG) for computerization, based on computerization master plan. Sept. 1989 - Dec. 1989 ___ ___ __ ___ __ __ ___ __ ___ __ ___ _ _ __ ___ __ _ __ _M DF (Dl & TG)  Page 4 of II Table 5: Indicators for Project Implementation Key Project Activities B: Resource Mobilization - Tax Administration Govemnment Objectives Measures previously adopted Planned measures Implemented measures OLutput Indicators Responsibility (1989) . Comments Initiation of support training General training program in Availability of trained MDF (Dl) program for the production of informatics and fiscal simulation staff at inception of new software for the measures was completed in 1993. procedures. application/idcntification of data required for fiscal simulation. Staff training centers were Sept. 1989 - Dec. 1989. established, in Casablanca and Marrakech. 50 managers and stalf are trained each year. on average plus 31 managers participated in overseas training sessions. Improvements in tax Design and preparation of Combined training on tax Tax collectior performance MDF (TG) collection procedures and computerization and training collection computerized using cornpirterized staff skills. program for improved cfficicncy procedures took place in tcniniques improved and effectiveness of existing tax Morocco and overseas courses for including prompt follow- collection services. tax collectors, inspectors and up on tax evadors. Jan 1989 - March 1989. managers (1992-93). 300 managers/staff were trained in total. Study of required improvements Study done in 1992 with outside to extemal TG services. consultants. April 1989- July 1989. Improvemcnts in fiscal Assistance provided through Extension of new auditing and MDF's general auditing group Efficiency in fiscal control MDF (DI) control and auditing PERL for revising private sector accounting standards to public ((GF) was equipped for and auditing greatly tcchniques and procedures. commercial auditing and auditing and accounting. computerized processing of increased and inspectorate accounts procedures. April 1989 - Dec. 1989. audits and countries also using additional qualificd data bascs. auditors were appointed.  Page 5 of II Table 5: Indicators for Project Implementation Key Projcct Activities B: Resource Mobilization - Tax Administration Govemmient Objectives Measures previously adopted Planned measures Implemented measures Output Indicators Responsibility (1989) Commcnts Improvements in tax auditing Study to identify computerization Fiscal data base now MDF (Dl) through development of requirements for tax auditing and improved and txpanded in computerized management collection. the areas of tax auditing systenms. June 1989 - Dec. 1989. and fiscal control, including an active use of statistical tables jor fiscal control. Preparation of professional Studies were done and several MDF (Dl) monographs. monographs were prepared in Mar 1989 - Mar 1989. 1991-92 using recommendations of study. a tax fraud control program was prepared. Study on use of computerization MDF (Dl) tax fraud control and enterprise audit. July 1989 - Dec. 1989. Provision of assistance related Development of systems for Both systems were implemented Provision of tax MDF (Dl) to fiscal information. providing extemal fax advisory (effective 1993). information, and taxpayer and information services to the use of tax information public services greatly improved June 1991-92 and now available at local levels.  Page 6 of 11 Table 5: Indicators for Project Implementation Key Project Activities C: Resource Allocation and Expenditures Management Government Objectives Measures previously adopted Planned measures Implemented measures Output Indicators Responsibility (1989) Comments Rationalization and Preparation of new budget Continuation of program for New nomenclature implemented Budget data standardized MDF (DB) improvement of budget cycle nomenclature now in progress. rationalizing budget since Jan. 1990. accordingly. mad procedures. nomenclature. June 1989. Improvements in project Preparation of project selection Implementation of monitoring Related processes and criteria Transparency in project MIDF (DB) selection and monitoring procedures and criteria. and evaluation criteria for were adopted and implemented selection criteria. April 1988. approval of investment projects. since 1991. Proccss not activelP Jan 1989 - July 1989. used since 93 reorganization; needs to be revitalized. CIPP MDP (DP) Launching of discount rate and shadow price studies for project appraisal. July 1989 - June 1990. If necessary, refining of methods Criteria applied to all CIPP MDP (DP) and criteria on sectors and projects included in the financial rates of return for budget (costing or selection of investment projects. exceeding DHIOO million). Jan 1989 - Dec. 1989 Preparation of new projects Updating of computer plan; DP was equipped with micro- Project information was MDP (DP) briefs. procurement, if necessary, of processors funded under PAL in developed on data base. microcomputers for immediate 1991 needs. Jan 1989 - Dec. 1989. Budget Directorate Completion of Budget DB was reorganized in 1991. MDF (DG) Improvement of investment reorganization memorandum, Directorate's reorganization. By budget management February 10, 1988. Dec. 1989.  Page 7 of 11 Table S: Indicators for Project Implementation Key Project Activities C: Resource Allocation and Expenditures Managrmcnt Government Objectives Measures previously adopted Planned measures Implemented measures Output Indicators Responsibility (1989) . Comments Improvement of monitoring Creation of Coordination Implementation of circular on Circular provided and effective All debt-relating data are MDF (TGR) and management of extemal Committee to assure the procedures for receiving and since 1991. now central-zed, also debt. implementation of an efficient monitoring extemal loans with providing on-line access to census on extemal debt. govemment guarantees according extemal debt monitoring to SAL Agreement. data. Computerized systems were Preparation of an action plan for Increase in computing capability developed and implemented MDF (TGR) the computerization of extema for improved extemal debt (1991-92). debt managemenL monitoring and management. Sept. 1988 - April 1990. Establishment of a contract Contracts file and library, billing system and library. debt guarantee file and use Jan 1989 - Dec. 1989. of inventory are now fully available. Establishment of an inventory of Inventory, library, data base and Ability to negotiate debt Treasury TG external debt guarantees. guarantees granting criteria and rescheduling and reduction Reviewiredcfinition of criteria registering conditions have been in debt services. and conditions for granting established and made operational guarantees. since 1992. Jan 1989 - Dec. 1989. Improvements in the intemal Establishment of inventory on Further improvements of public debt ianagement systent intemal debt guarantee. debt management required. June 1989- Dec. 1989 Review/redefinition of criteria Application of new criteria. and conditions for granting Jan 1990 - Dec. 1993. guarantees. Jan 1989 - Sept. 1989.  Page 8 of II Table S: Indicators for Project Implementation Key Project Activities C: Resource Allocation and Expenditures Management Goverment objectives Measures previously adopted Planned measures Implemented measures Output Indicators Responsibility (1989) . Comments lmprovements in the Joint study with the Treasury Joint study was completed in TGR and TG have direct MDF magement of special Generation and computerization 1991. access to shared data bases Treasury /TGR Treasury accounts. of special Treasury accounts. on Treasury accounts. Jan 1989 - June 1989 Improvements in physical and Preparation and initial Training programs organized and Improvement of staff skills MDF Treasury b_mn rsowes for debt mad implementation of the Treasury completed in 1991, including: 45 in financial management - financal mananegnct Directorate's training program. managers for HI. training courses i.e.: increase inaccuracy Jan 1989 - Sept. 1989 at ENST-Paris, 57 managers for and frequency of audit, fellowships in French Public ability to prepare timely Account Office, 150 HL staff for perfornance charts, training courses at Int.l. Center improved cash for Banking/Treasury Specialists. management. t 300 more are planned. TGR's 7 Training Service trains 100 inspectors and 120 staff in informatics usage, each year. 10 DT managers attended specialized courses and training sessions in USA, France, Italy and Sweden. Development of an improved MDF Treasury infonnatic capacity in financial management. Improvements in the Establishment of economic Development of economic Computerized economic Financial reports and MDF Treasury monitoing of national and monitoring uniL projection models and a projection models, and management information international financial management information chart. management information and chart are now available, situations. Jan 1990 - Dec. 1990 performance charts in use. simulation capacity is I_strengthened.  Page 9 of 11 Table S: Indicators for Project Implementation Key Projcct Activitics C: Resource Mlocation and Expenditures Management (conl'd) Improvements in information Refinement and increase in the SROT regularly available. MDF TGR on budget execution ad rate of application of SROT-typc Tresmy opeaions statistics. Sept. 1989 (induding public debt and actual investment budget expenditure). Interim mechanisms to monitor Implementation of mechanisms to Computerizzd cash management real investment expenditures, monitor real expenditures. system was seveloped and partily initiated. ]an 1989 established in 1993. _ _  Page 10 of II Table 5: Indicators for Project Implementation Key Project Activities C: Resource Allocation and Expenditures Mlanagement Government objectives Measures previously adopted Planned measures | Implemented measures Output Indicators Responsibility (1989) Comments Data currently being collected for Development and implementation lTraining in economic Availability of data on MDP TG preparation of statistical tables. of economic projection models. mnanagement taken place. Simple execution of budget Jan 1990 - Dec. 1990. projection models -re in usc appropriations law . Improvement in capacity for Preparation of training program. Conditions necessary for Hlardware equipment and Dissemination of statistical MDP (DP) Mac_ieconomic management macroeconomic analysis. software were installed (1992). data on the national MAE and statistical analysis. Jan 1989 - Junc 1989. economy; periodic Implementation of publication of economic computerization plan (1990-91) budget, however with limited distribution. Preparation of training program Annual training program since Improvement of capacity MDP (DP) on macroeconomic managcment. 1992, including overseas training for monitoring and MAE Annually in Oct. courses and fellowships for 16 analysis. tiL stafl ini public managemient, short tenn and regional modeling, informnatics and statistics in several countries: Canada. France. USA (WB), Japan, Egypt, Malaysia. Short-term plan for improving Preparation of infonnation plan Statistical data base at national Direct access to statistical MDP (DS) existing computing capacity for on establishing statistical data level was established in 1992. data bases now availablc. statistical analysis. base. Oct. 1988 - March 1989. Preparation and initiation of Annual programs implemented Increased capacity for MDP (DS) statistics training program. since end 1992. statistical analysis. Jan 1989 -June 1939. First program Sept. 1989.  Page 11 of 11 TaMe 5: ldiston for "eet Impleeobadot Key Project Activities D: Trade Facilitation: External Trade Ramagement Govamen objectivs Measures previously adopted Planned memures Implemented measures Oatput Indicators Responsibility (1939) . Comments Strengtdhning maement of Development of professional Comnputer and software Active use of statistical MCI Extemal extema trade and powtion training and computer modeling capabilities increased through data on cxtcmal trade. Trade Directorate of the industrial sector. capability related to extemal procurement of facilities under trade. PAL (1993). July 1989 -July 1990 Preparation of professional Programs implemented in 1992- Availability of statistical MCI Industry uraining and computerization 93: information on the Administration programs related to industrial industrial sector. Directorate sector promotion. 200 HL and Support staff were Sept. 1989 - Sept. 1990 trained in lnfonnatics in Morocco, and an "analysis and modeling" training unit was established in MCI.  -31- Table 6: Key Indicators for Project Operation Given the nature of the project, there is no direct criteria for measuring or monitoring its outputs in the course of time. The ministries and government agencies that benefited from the project will continue to operate their services, within the country's public administration. They will do this by using the improved methods, systems, procedures, informatics facilities and staff from the project, which strengthened their capabilities and efficiency. The sustainability of the project warrants its durable results. Also, the preparation of a next stage is already underway to expand the "computerization process" within the Government, and toward the public and the institutional users. Undoubtedly, further progress in this direction would enhance and enlarge the project's outcomes and its operation.  Page I of 2 Table 7: Studies Included in Project Status Completion date Impact of Study Implementing Agency Description and Purpose of Study Planied (PC) Actual (AC) Comments I. Interministerial Committee Definition and preparation of procedures Procedures implemented under the auspices Further improvement necessary. related to the flow of financial and economic of the New Ministry of Economic and Social information. Affairs. PC: 12/89 AC: 2. Ministry of Finance Tax and Treasury General Directorates to Implemented Simulation techniques used for financial identify and to design fiscal simulation On going planning. techniques. PC: 12/89 AC: 12/90 3. Ministry of Finance Intra-ministerial Committee to define Committee continues to define and Information access and exchange procedural interfaces and computer systems implement improvements. Adequate enables the daily production of MOF compatibility between Budget, Treasury procedures in place performance chart. General and Tax Directorates. PC: 6/90 AC: n.a. 4. Ministry of Finance Treasury General to define external services Report completed. External services strengthened improvements and define requirements. providing decentralized services to local _____________11__89__ _taxpayers. _ _ _ _ _ _ __ _ PC: 7/89 AC: 11/89  Page 2 of 2 Table 7: Studies Included in Project Status Completion date 5. Ministry of Finance Tax Directorate to identify computerization Completed Now an integral part of tax requirement for tax auditing and fraud administration. control. PC: 12/89 AC: 12/90 6. Ministry of Finance Treasury Directorate to prepare training Underway with initial program completed. Further improvement in debt program on debt management. Additional training planned. management requires additional training. PC: 12/90 AC: 7. Ministry of Finance Preparation of a training program on Annually in October. Some in-house training Common training was provided to staff macroeconomic management. completed. Additional seminars planned. of MOP and MEA. 8. Ministry of Finance Development of professional training and Report completed. Computerization MCI central and external services computerization program to improve external underway and training partly implemented. provide regular training and information trade management and for industrial on quality control of export products promotion. and widely disseminate information in these areas. I________ ________ I PC: 12/90 AC: I  -34- Table 8A: Project Costs Appraisal estimate Actual/Latest estim.ate Item Local La Foreign Total Local La Foreign Total (USSM) tUSSM) 1. Technical assistance 0.10 2.50 2.60 0.10 2.50 2.60 2. Training and workshops 0.10 3.00 3.10 0.20 3.00 3.20 3. Equipment and materials 11.90 14.50 26.40 12.00 14.46 26.46 4. Incremental operating costs 4.00 0.00 4.00 4.30 0.00 4.30 5. Studies and advisory services Lb 0.70 2.80 3.50 0.70 2.80 3.50 6. Refinancing of PPF 0.00 0.20 0.20 0.00 0.24 0.24 TOTAL 16.80 23.00 39.80 17.30 23.00 40.30 La Include taxes and duties of approximately US$8.1 million. Lb Funds to improve macroeconomic management and sectoral planning capabilities. Table 8B: Project Financing Appraisal estimate Actual/Latest estimate Item Loc&l ,a Foreign Total Local La Foreign Total (US$t1) (US$34) IBRD 0.00 23.00 23.00 0.00 23.00 23.00 Government 16.80 0.00 16.80 17.30 0.00 17.30 TOTAL 16.80 23.00 39.0 17.30 23.00 40.30  -35- Table 9: Economic Costs and Benefits For all projects, this table identifies either the major costs and/or benefits that enter into the calculation of a re-estimated net present value (or economic rate of return), or, when the net present value (or economic rate of return) is not estimated, cost-effectiveness in achieving project objectives. - Not Applicable -  Page I of 2 Table 10: Status of Legal Covenants Project Development Objectives Rating: S Original Revised Covenant fulfillment fulfillment Agreement Section type date date Status Description of covenant Comments L39480 3.01(a) Execution project 10 As set forth in Sched. 2. Borrower shall carry out the project with due diligence and efficiency. 09/23/94 C Inefficient procurement. 12/31/95 C No comment. 3.01(b) Project Execution 10 The Borrower shall carry out the project in accordance with a program satisfactory to the Bank and shall furmish to the Bank, not later than October 31 of each calendar year. a proposed action plan. L304S0 3.02 Procurement 3 09/23/94 C No comment. 12/20/95 C No comment. Procurement of the goods & consultants' services shall be govemed by the provisions of Schedule 4 of this Agreement. 09/23/94 c 12/20/95 C L30480 4.01(a) Financial covenants 2 The Borrower shall maintain records and accounts adequate to reflect in accordance with sound accounting practices the operations, resources, and expenditures of the project. 09/23/94 C 12/20/95 C 4.01(b)(i) Audit I The Borrower shall have the project records and accounts, including those for the special account, for each FY audited, by independent auditors 09/23/94 C Intemal auditors hired as agreed with the Bank. 12/20/95 C No comment. 4.01(b)(ii) Audits I The Borrower shall fumish not later than 6 months after the end of each FY, such audit report to the Bank. 09/23/94 C No comment. 12/20/95 C No comment. 4.01(bXiii) Audits I The Borrower shall fuimish to the Bank such other information conceming records and accounts, and the audit report as the Bank shall request from time to time. C - covenst complied with CD - complied with after delay CP = complied with patially NC - noc eomplied with  Page 2 of 2 Table 10: Status of Legal Covenants (cont) Project Development Objectives Rating: S Original Revised Covenant fulfillment fulfillment Agreement Section type date date Status Description of covenant Commcnts 09/23/94 c 12/20/95 C The Borrower shall maintain records and accounts 4.01 (c)(i) Statement of reflecting all expenditures of withdrawals made on Expenditures I the basis of statements of expenditure. No comment. 09/23/94 C No comment. 12/20/95 c The Borrower shall retain until at least I year after 4.01(c)(ii) Statement of each audit report, all records evidencing such Expenditures I expenditures. 09/23/94 C No comment. 12/20/95 C No comment. 4.01(cXiii) Statement of The Borrower shall enable the Bank's Expenditures I representatives to examine such records. 09/23/94 c No comment. 12120/95 C No comment. 4.01(iv) Statement of The Borrower shall ensure that such records and Expenditures I accounts are included as a separate opinion, in the annual audit report. No comment. 09/23/94 C No comment. 12n20/95 c SUM: C - Complied with Covenant Class: I Accounts/audit CD - Complied with after delay 2 Financial performance/generate revenue from beneficiaries SOON - Compliance expected in reasonably shott time 3 Flow and utilization of pro.,ect funds CP - Complied with partially 4 Counterpart funding NYD - Not yet due 5 Management aspects of the project or of its executing agency 6 Environmental covenants 7 Involuntary resettlement 8 Indigenous people 9 Monitoring, review,and rcporting 10 Implementation II Secoal or crosssectoral budgetary or otber resource allocation 12 Sectonl or crosssectionl regubloyfumsbka action 13 Other  -38- Table 11: Compliance with Operational Manual Statements No significant lack of compliance with applicable Bank Statements Operational Manual (OD or OP/BP) was observed under the project. Provisional slow practices in the procurement process were adequately adjusted during supervision. Staiement number and title Description and comment on lack of compliance Not Applicable M:\TONY/MOROCCO:jp\TABLEI I .DOCM(0214/96) Table 12: Bank Resources: Staff Inputs Stage of Planned Actual project cycle Weeks US$ a Weeks US$ Through appraisal 30 72,000 36 86,400 Appraisal-Board 1 0 24,000 12 28,800 Board-effectiveness 8 19,200 10 24,000 Supervision 46 110,400 60 144,000 Completion 10 24,000 12 l 28,800 TOTAL 104 249,600 130 312,000 la At estimated averge staff week cost of USS 2,400. Lb Combined with review and discussion of future operations.  -39- Page I of 2 Table 13: Bank Resources: Missions Performance rating/lb Number Specialized Implemen- Develop- Stage of Date of Days in staff skills tation ment Types of project cycle persons field represented I status objectives problems Thruph appraia To outline scope IS(TM) - PSC of feasible Preparation mission 11/87 4 42 OMS-FE project to support IS(TM) - PSC SAL. Preappraisal mission 04/05/88 5 64 OMS-FE Boalrdappronvy 05/89 through effectiveness Project Supervision I organizational (project start-up IS(TM) - ECO- set-up. mission) 10/11189 3 30 FE I I Procurement wftion Effct1ivcnczs 12189 Supervision Restrneturing of government agencies may delay project progress in procurement and IS (MA) -ECO technical Supervision 2 05/06/90 4 28 Eng - OMS I I assistance (TA) Delay in [CB procedume and in TA and training Supervision 3 11/90 2 16 IS(TM)-ECO 2 1 start-up Organizational measures still Supervision 4 12/91 1 10 IS(TM) 2 I underway Slow progress in IS(IM)-ECO procurement and OMS - Eng shortage of local Supervision 5 4/92 4 36 (Tel) 2 I funding in Budget Delay in procurement Supervision 6 11/12/92 2 22 IS(TM) - OMS 2 1 trnining and TA La Abbreviations: Eng.: Engineer; FinA.: Financial Analyst; IS: Informatics Specialist; TM: Task Manager; PSS: Public Sector Specialist; F.E: Fiscal Expert; OMS: Organization/Management Specialist; ECO: Economist. Lb Keys to overall performance rating (prior to FY 94) = I - problem free; 2 - moderate; 3 - major problems. (subce FY 94 on) = HS - highly satisfactory; S - satisfactory; U - unsatisfactory; HU - highly unsatisfactory.  -40- Page 2 of 2 Table 13: Bank Resources: Missions Pertfonance rating1h Numbei Specialized Implemen- Develop- Stage of Date of Days in staff skills tation ment Types of project cycle persons field represented /a status objectives problems Supervision Progress improving but overall delay requires extension of loan Supervision 7 05/06/93 2 18 IS(TM)-Fin A 2 l closing date Supervision Funds now 95% committed. Late implementation rqire another extension of closing daze by I year (to June Supervision 8 4/94 1 7 IS(TM) S S 30/95) Supery'sion ~~~~~~~~~~~~~~~~~~~~~~~~~Funds fully conmimifted. Requirements for fiture susainability. C3mpletion of procurement/disb ursenients necessitates third extension of closing date to 3/95 l 6 IS(TM) S S 12/31/95 Supervision 9 _ Supervision 10 (Final/completion mission) 11/95 l G IS(TM) S S la Abbreviations: Eng.: Engineer; FinA.: Financial Analyst; IS: Informatics Specialist; TM: Task Manager; PSS: Public Sector Specilist; F.E: Fiscal Expert; OMS: Organization/Management Specialist; ECO: Economist. Lb Keys to overall performance rating (before FY 94) = I - problem free; 2 - moderate; 3 - major problems; (from FY 94 on) = HS - highly satisfactory; S - satisfactory; U - unsatisfactory; HU - highly unsatisfactory.  -41- KINGDOM OF MOROCCO IMPLEMENTATION COMPLETION REPORT PUBLIC ADMINISTRATION SUPPORT PROJECT (LOAN 3048-MOR) APPENDICES A. Missions'Aide-Memoires B. Borrower Contribution to the ICR   -42- APPENDIX A Missions' Aide-Memoires (March 27 - 31, 1995 - 4 pages) (November 15 - 22, 1995 - 4 pages)   -43- Public Administration Support Project Supervision Mission (March 27-31, 1995) Aide-Memoire A PAL supervision mission comprising Mr. Antoun Moussa visited Rabat March 27- 31, 1995 to determine the status of project execution and discuss the future action plan in support of project objectives. The mission held discussions with the Minister of Finance, the Minister of Economic Promotion, the Project Coordination Committee, and the heads of the services benefiting from the project in the Ministry of Finance and External Investment and the Ministry of Trade and Industry. The mission wishes to thank the M1oroccan authorities for their hospitality and assistance in its work. This aide-memoire reflects the standpoints of the Government and the mission on: (i) PAL execution; (ii) activities to be undertaken in support of the project; and (iii) the content of the project's operational plan, including future operations. Proiect obLectives The aim of the project was to assist the administrations responsible for economic and financial management, to implement the economic reforms envisaged by the first SAL. These objectives have been achieved to a large extent. On the basis of the lessons learned during the execution of the project, it is now possible to put in place an action plan for administrative reform that will achieve the project's ultimate objective, i.e., raising performance standards in public finance management and macroeconomics analysis. Tmpementationrsuli The qualitative and quantitative results of project execution are set forth in detail in the Coordination Committee report (see annex). Even though concrete programs were introduced (commission on the GIPE, CIPP, VAT-TGRfDI integrated system, DB[budget directorate]/CED coordination) with respect to inter-ministerial coordination, such coordination remains insufficient as does the flow of information in the relevant services. The action plan for future operations should seek to improve such coordination.  -44- Page 2 of 4 Macroeconomics management has been improved by the development of economic budgets and various sectoral measures including the management of external trade, industry promotion, and the various statistical studies conducted by the current Ministry of Population. The Coordination Committee report shows the results obtained in the management of public finance with regard to taxation, budget management, debt management, municipal finances, and Treasury management. However, additional efforts must be made to achieve fully the objectives set forth in the project, specifically with regard to the introduction of a unified taxpayer identification file, integrated management, and financial forecasting. Owing to .a delay in the project start-up, an extension of the completion date of the loan was required, due to the ctunbersome procedures for the signing of contracts, budgetary controls, reorganization of the administrations involved in the project, and site adaptations, as well as delays in installing computer equipment throughout the national territory. Financial execution of the project While the commitment level is satisfactory, loan-related disbursements are lagging. Given the failure to complete site preparation work before delivery was taken of computer equipment purchased under the last two DI and TGR contracts, and the delays noted with respect to contract approval, it would be virtually impossible to take delivery of all the equipment involved--and to check the invoices, execute the pertinent disbursements, and make the appropriate loan disbursements--between now and June of this year. The Moroccan authorities have therefore informed the mission that they wish to send a last request to the IBRD for a 6-month extension of the loan agreement, with a commitment to complete all operations so that all the loan resources can be used. The authorities also stated that they wish to apply the remainder of the Unallocated Fund to enlist the services, with IBRD support, of specialized technical assistants for discussions with the Ministry of Finance on a new project as successor to the PAL (cf. Ministry of Finance memorandum). Plan for future operations The lessons learned from this project will be the object of a future operational program. The PAL objectives are clearly a necessary stage, but they are no longer sufficient. The main components of the operational plan, details of which are currently being worked out, are as follows: - Produce, expand, process, and circulate domestic and external economic information for both government decision makers, and national and international economic operators.  -45- Page 3 of 4 - Review public finance audits. - Re-examine general financial and economic information with a view to organizing it according to the most efficient international standards and making it available to both public and private users. - Continue large-scale computerization efforts, - Introduce broad-based technology and user training so that computerization is no longer limited to the purchase of machines. - In order to define and rationalize the activities of the Ministry of Finance and the other economic administrations; the Ministry's missions should be context-related; It should also develop the forecasting function so that its activities take place in a coherent macroeconomics framework. Post-PAL The idea of a new financial administration support project arose during a working session the mission held with the Minister of Finance. The mission was extremely pleased to note Mr. Kebbaj's desire for continued implementation financial administration reforms. The Minister of Finance stressed in particular the need to mobilize all the resources and energies needed for: - development of training in the Ministry of Finance through the creation of a advanced-level financial institute; - reactivating of forecasting activities and the operational capability of the directorate set up for the purpose in the Ministry; - improvement of budget management from both the preparation and execution standpoints; - assignment of proper importance to human and material resource management. The Project Coordination Committee is currently fine-tuning these objectives and will shortly send the Bank a request for consultant assistance in preparing for the post-PAL period. Rabat, March 31, 1995  -46- Page 4 of 4 For the Moroccan side For the World Bank Mr. Moharned Moumnen Antoun Moussa Director, PASP Task Manager Chairman of the PASP at the IBRD Coordination Committee ls/ /s/ Director of Budgetary and Banking Operations /s/ Signed: Mohamed Moumnen  -47- Public Administration Support Project Supervision Mission (November 15-21, 1995) Aide-Memoire In view of the completion date of the loan, December 31, 1995, a PAL supervision mission comprising Mr. Antoun Moussa visited Rabat November 15-21, 1995 to take stock of project execution with the Moroccan Authorities. The mission held discussions with the Ministries of Finance and External Investment, of Economic Promotion, of Trade and Industry, and with the Project Coordination Committee. The mission wishes to thank the Moroccan authorities for their hospitality and assistance during the discussions. This aide-memoire reflects the points of view of the Government and the mission on project execution and the plan fcr future support operations after the closing date. It carries on from the discussions held during the last supervision mission of March 1995. Real progress has been made in the execution of project operations, which reflects a growing improvement in working methods and macroeconomics management. By way of example, the modernization program for the Treasury General of the Kingdom has produced encouraging results, which are outlined in the appendix. The other administrations have made similar progress, especially the Tax Directorate (MDFIE), the Ministry of Trade and Industry, and the Ministry of Population. With regard to financial execution, commitments under the loan have reached the rate of 100%. It is expected that full use of the loan for financing will be made by the completion date at end-December 1995. The TGR and the Directorate of Administrative Affairs and Taxes of the MDFIE have again confirmed to the mission the commitments made during the last supervision mission to speed up disbursement and ensure the relevant financing from the PAL loan before end-December 1995. The undisbursed amounts of other departments are much less substantial and will also be settled before this date. The mission and the Project Coordination Committee thus focused their efforts during the visit on preparation of the final report on project execution and the operational plan for future activities. The mission provided the Coordination Committee with details on the information to be covered in the final report and reviewed the available data on project execution. These discussions also identified the operational plan activities for supporting project achievements after the completion date of the project.  -48- Page 2 of 4 Plan for future operations The PAL objectives are a necessary stage but more remains to be done. The project began the process of modernizing the administrations involved. Continued modernization has now been ensured by a plan for future operations centered on the following: (A) Structural modernization (i) Creation of a modernization committee in the Ministry of Finance and External Investment (MDFIE) and the hiring of a research firm "Euro Groupe" to continue modernizing the ministry; (ii) launching of the program for decentralizing and strengthening the Ministry of Trade and Industry external services, including the establishment of investor authorization, data base in the commercial register, and trademark registration; and (iii) ongoing enhancement of inter-ministerial coordination to improve macroeconomics management. (B) Management of public finance (i) A research firm (Boussard) has been hired to draft proposals for reforming the current financial audit system for public enterprises. Studies will also be undertaken shortly on the improvement and simplification of tax audits and public expenditure channels for projects being financed; (ii) Canadian support has already been obtained in the cash management area with a view to launching an operational system that incorporates the computerization systems achieved under the project; and (iii) Efforts are also under way to obtain Canadian financing for the continued improvement of public debt management. (C) Macroeconomics management The MDFIE will oversee reactivating of forecasting activities and the operational capacity of the directorate set up for this purpose under the project. This is necessary to provide a coherent macroeconomics framework; (ii) Likewise budgetary management is to be improved both with respect to budget preparation and execution; and (iii) Diffusion and circulation of external and domestic economic information for users in both the public and private sectors;  -49- Page 3 of 4 (iv) Setting up of an external investment directorate in the MDFIE to coordinate the strategy for promoting foreign investment in Morocco. (D) Training (i) The setting up of a Directorate of Human Resources in the MDFIE will permit institutionalization of the training program begun under the project. It will also ensure ongoing training activities to meet the Ministry's objectives; (ii) The other administrations will continue to implement spccific activities depending on their resources. (E) Computerization and information flow (i) Budget allocations will be placed at the disposal of the relevant administrations for the upkeep of computer equipment, the purchase of supplies, and continuation of the computerization efforts begun under the project; (ii) Electronic links will be created to connect the data bases installed in the directorates benefiting from the PASP; (iii) The Ministry of Trade and Industry will introduce an electronic network enabling the external services to link with each other and to work in real time; (iv) A study has been conducted reliating to INTERNET access for the relevant administrations; use of the INTERNET servicc is scheduled to begin toward end-March 1996; (v) The Ministry of Population and the Ministry of Trade and Industry will continue to publish sectoral surveys and studies for both public and private users; and (vi) The preparation of a strategy for the expansion of information infrastructures at national level is currently being discussed in earnest with various participants in the public and private sectors. Introducing the operational plan will provide essential support for the project measures and the achievement of its ultimate objectives, i.e., raising administrative performance standards in public finance management and macroeconomics analysis. Given the plan's importance, it would be desirable for the PASP supervision committee to visit the Bank in early 1996 for further discussions on the matter and to present its final report on project execution. At any event, the report will be sent to the Bank before end-December 1995; it will be prepared in accordance with the outline agreed with the Coordination Committee.  -50- Page 4 of 4 Rabat, November 1995 For the Moroccan side For the World Bank Mr. Mohamed Moumen Mr. Antoun Moussa Director, PASP Task Manager Chairman of the at the IBRD. PASP Coordination Committee. /s/ /s/  -51- APPENDIX B Borrower Contribution to the ICR A detailed contribution was prepared by the Borrower. The project coordinator prepared a summary of this comprehensive project implementation report from the Borrower. A translation of this summary is attached as Appendix B. (16 pages)  -52- Ministry of Finance and Investment Treasury General of the Kingdom Budgetary and Banking Operations Directorate Public Administration Support Project I (PAL) Evaluation Summary Of the PAL Coordination Committee April 24, 1996  -53- Contents Page 1. Project origin and context 1 2. Project objectives 2 3. Project policy instruments 3 4. Qualitative results 4 5. Financial results 9 6. Project coordination 12 7. PAL audit 14 8. Overall evaluation 15  -54- 1. Project origin and context Ultimate aim: to raise performance standards in public finance management and macroeconomics analysis. 1.1 Achievement of SAL objectives * Improve internal resources mobilization, * Rationalize expenditure management, * Control debt. 1.2 Macroeconomics analysis - Review planning methods, * Develop forecasting activities, C oordinate activities of the administrations involved in macroeconomics management. 1.3 Reshaping public economic and financial sector policy for economic growth * The Government as main agent of this policy, * and the means of achieving structural adjustment policy goals.