Ghana - Public Sector Management Reform (Phase 2 APL) Project

Report No. 23785 Report No: I070609 <--Please check for duplicates! Integrated Safeguards Data Sheet (Initial) Date ISDS Prepared/Updated: 03/01/2002 Section I - Basic Information A. Basic Project Data Country: GHANA Project ID: P070609 Project: Public Sector Management Reform Project (2nd Phase APL) Task Team Leader: Guenter Heidenhof Authorized to Appraise Date: January 28, 1999 IBRD Amount ($m): Bank Approval: December 10, 2002 IDA Amount ($m): 78.80 Managing Unit: AFTI2 Sector: BB - Public Sector Management Adjustment; BI - Institutional Development Lending Instrument: Adaptable Program Loan (APL) Status: Lending I.A.2. Project Objectives: The development objective of the program is to improve the efficiency, effectiveness and quality of public services and policy management in Ghana. It is expected to improve Ghana's overall fiscal performance in the medium term. I.A.3. Project Description: The program will address four different areas which have been identified as the essential elements for the public sector reform agenda: Reform of Subvented Agencies (SAs) PSMRP II will continue to support the government's objective to make the subvented agency sector more cost-effective and to reduce government subsidies to the sector by critically reviewing the mandates of 67 subvented agencies, closing down those without a clear mandate, and restructuring those with a viable mandate. These selection of these agencies (see Annex 6) has been based on (i) the objectives of the GPRS, (ii) the strategic importance for public service delivery, and (iii) the potential for employment generation. The second phase will also finalize the restructuring of those agencies that have been targeted under the pilot phase of the program. Adjustment of central government structures and organizations Under this component the government will finalize and further deepen the restructuring of the Central Management Agencies (CMAs) which has begun under PSMRP I. Key objective will be to continue the implementation of the restructuring plans for each individual CMA which is of critical importance for the rationalization of central government functions. Only after the CMA-reform is finalized the project will support the reform of 10 key sector ministries including the relevant departments. Key objectives are to (i) clarify roles and responsibilities at the various institutional levels, also in respect of Ghana's progressive decentralization policy, (ii) improve overall service delivery, and in this context (iii) define and operationalize the relationship between the public and the private sector. The ministries and departments (see Annex 6 for details) have been selected by the government on the basis of their  importance for the implementation of the GPRS and for the generation of employment. Improvement of systems and processes PSMRP II will continue to address the system constraints in Ghana's public sector. To this end, the project will finalize the implementation of critical elements for public sector operations which were developed in phase I, in particular the human resource management system and the regulatory framework for the subvented agency sector. The second phase will focus on the further refinement and introduction of a comprehensive incentive system for the public sector, in particular the remuneration policy reform. This will include complementary funding for the ongoing reform of the payroll system (IPPD) [to be discussed with DFID]. PSMRP II will also review, modify or fine-tune the existing performance management system with the aim to introduce the revised system in key public sector agencies by the end of phase II. Improvement of national policy management [to be discussed] This component is aimed at complementing ongoing activities of other donors (UNDP, Canada, Germany) to enhance policy analysis capacity and to improve efficiency and transparency of policy design, co-ordination and implementation in critical areas of government, in particular in the Office of the President and the Cabinet office. This component will also improve communication, information sharing and consultation between the Office of the President and policy formulation units in MDAs especially the Policy Planning, Monitoring and Evaluation Divisions (PPMEDs). It will support the design of a framework for electronic governance and enhance work on effective networking which has already been started by the Office of the President including the conversion of Cabinet Paper Files into electronic files. This will include complementary funding for the introduction of a Cabinet Handbook with guidelines and procedures for effective policy management. In addition, the program will continue to provide support (i) for the operations of the Distance Learning Center (DLC) which is part of the Global Development Learning Network (GDLN). This will include funding for the expansion of the center into two regional offices in Kumasi and Tamale. In this context, the project will only finance rehabilitation of existing buildings. (ii) for a comprehensive project management system for the change process to ensure effective implementation of the reform agenda. I.A.4. Project Location: (Geographic location, information about the key environmental and social characteristics of the area and population likely to be affected, and proximity to any protected areas, or sites or critical natural habitats, or any other culturally or socially sensitive areas.) The project will affect all public sector agencies in Ghana. They're mainly located in Accra. Some subvented agencies are located in other cities. B. Check Environmental Classification: C (Not Required) Comments: C. Safeguard Policies Triggered Policy Applicability Environmental Assessment (OP/BP/GP 4.01) No Forestry (OP/GP 4.36) No Natural Habitats (OP/BP 4.04) No - 2-  Safety of Dams (OP/BP 4.37) No Pest Management (OP 4.09) No Involuntary Resettlement (OP/BP 4.12) No Indigenous Peoples (OD 4.20) No Cultural Property (OP 4.11) No Projects in Disputed Territories (OP/BP/GP 7.60)* No Projects in International Waterways (OP/BP/GP 7.50) No *By supporting the proposed project, the Bank does not intend to prejudice the final determination of the parties' claims on the disputed areas Section II - Key Safeguard Issues and Their Management D. Summary of Key Safeguard Issues. Please fill in all relevant questions. If information is not available, describe steps to be taken to obtain necessary data. II.D.la. Describe any safeguard issues and impacts associated with the proposed project. Identify and describe any potential large scale, significant and/or irreversible impacts. NA II.D.lb. Describe any potential cumulative impacts due to application of more than one safeguard policy or due to multiple project component. NA II.D.lc Describe any potential long term impacts due to anticipated future activities in the project area. NA II.D.2. In light of 1, describe the proposed treatment of alternatives (if required) NA II.D.3. Describe arrangement for the borrower to address safeguard issues II.D.4. Identify the key stakeholders and describe the mechanisms for consultation and disclosure on safeguard policies, with an emphasis on potentially affected people. The key stakeholders of the project include Cabinet, the National Overview Committee, public sector agencies, public servants, beneficiaries of public services, trade unions and parliament. These stakeholders participated in a preparation workshop for the project in October 2001. The workshop discussed the implementation experience from the pilot phase, reviewed progress, analyzed bottlenecks and constraints, and recommended modifications for PSMRP II which form the basis for this document. In PSMRP I, the design of all reengineering plans was facilitated by consultants in conjunction with change management teams, largely comprised of senior management ,while implementation was internally driven. PSMRP II will further strengthen the role of senior management/change management teams to conduct the reform process with increased transparency and dialogue with junior staff. Change management teams will include representation of all staff and the main client group, and the process -3 -  will be monitored regarding its effectiveness. Adherence to the GOG's policy on gender representation on decision-making committees and boards will promoted. With an increased focus on quality service delivery, beneficiary assessment will be conducted to adequately review service delivery by the institutions, reengineering plans will be validated with the clients, and repeat beneficiary assessments will form part of monitoring. Table 1 provides an overview about the stakeholders and the level of their involvement. Stakeholders and Beneficiaries Preparation Implementation Operation National Overview Committee COL COL COL Central Management Agencies COL COL COL Ministries, Departments, Agencies COL COL COL Local Government CON COL COL Public Managers CON/COL COL COL Public Servants IS/CON CON/COL CON/COL Private Sector CON CON/COL CON/COL Parliament IS IS IS Customers CON/IS COL/CON COL/CON Civil Society IS/CON IS/CON IS/CON Judiciary CON CON IS Other Donors IS/CON/COL IS/CON/COL IS/CON/COL COL: collaboration; CON: Consultation; IS: Information sharing E. Safeguards Classification. Category is determined by the highest impact in any policy. Or on basis of cumulative impacts from multiple safeguards. Whenever an individual safeguard policy is triggered the provisions of that policy apply. I S1. - Significant, cumulative and/or irreversible impacts; or significant technical and institutional risks in management of one or more safeguard areas I S2. - One or more safeguard policies are triggered, but effects are limited in their impact and are technically and institutionally manageable [XI S3. - No safeguard issues I SF. - Financial intermediary projects, social development funds, community driven development or similar projects which require a safeguard framework or programmatic approach to address safeguard issues. F. Disclosure Requirements Environmental Assessment/Analysis/Management Plan: Expected Actual Date of receipt by the Bank Not Applicable Not Applicable Date of "in-country" disclosure Not Applicable Not Applicable Date of submission to InfoShop Not Applicable Not Applicable Date of distributing the Exec. Summary of the EA to the ED (For category A projects) Not Applicable Not Applicable Resettlement Action Plan/Framework: Expected Actual Date of receipt by the Bank Not Applicable Not Applicable Date of "in-country" disclosure Not Applicable Not Applicable Date of submission to InfoShop Not Applicable Not Applicable Indigenous Peoples Development Plan/Framework: Expected Actual - 4 -  Date of receipt by the Bank Not Applicable Not Applicable Date of "in-country" disclosure Not Applicable Not Applicable Date of submission to InfoShop Not Applicable Not Applicable Pest Management Plan: Expected Actual Date of receipt by the Bank Not Applicable Not Applicable Date of "in-country" disclosure Not Applicable Not Applicable Date of submission to InfoShop Not Applicable Not Applicable Dam Safety Management Plan: Expected Actual Date of receipt by the Bank Not Applicable Not Applicable Date of "in-country" disclosure Not Applicable Not Applicable Date of submission to InfoShop Not Applicable Not Applicable If in-country disclosure of any of the above documents is not expected, please explain why. No safeguards issues Signed and submitted by Name Date Task Team Leader: Guenter Heidenhof 02/14/02 Project Safeguards Specialists 1: Project Safeguards Specialists 2: Project Safeguards Specialists 3: Approved by: Name Date Regional Safeguards Coordinator: Maria Mims 02/15/02 Sector Manager/Director: Brian David Levy 02/15/02 For a list of World Bank news releases on projects and reports, click here - 5-