Turkey - Technical assistance for treasury data

 ICRR 11074 Report Number : ICRR11074 ICR Review Operations Evaluation Department 1. Project Data: Date Posted : 08/07/2001 PROJ ID : P009097 Appraisal Actual Project Name : Ta For Treasury Data Project Costs 28.1 30.05 US$M ) (US$M) Country : Turkey Loan /Credit (US$M) Loan/ US$M ) 9.20 9.15 Sector (s): Board: PS - Central Cofinancing 18.9 20.9 government administration US$M ) (US$M) (100%) L/C Number : L3477 Board Approval 93 FY ) (FY) Partners involved : GTZ Closing Date 06/30/1999 06/30/2000 Prepared by : Reviewed by : Group Manager : Group : Michael R. Lav Jorge Garcia-Garcia Ruben Lamdany OEDCR 2. Project Objectives and Components a. Objectives (a) Improve Treasury's monitoring and policy design functions; (b) Provide timely and efficient access for Treasury staff to a consistent, centralized data source; (c) enable Treasury both to contribute to and draw upon the databanks of multilateral institutions and other agencies; (d) ensure that organizational procedures support efficient data processing and analysis; and (e) support the development of a complementary institutional framework for investment in human capital. In addition, the project sought to improve the availability and reliability of economic data that Treasury provides to other agencies, the private sector, and multilateral organizations . b. Components 1. Develop a Data Management System (DMS) that: (a) provides an appropriate technology environment for macroeconomic data analysis; (b) contains centralized databases to support this work . To do this the project would (i) update mainframe and install LAN services; (ii) convert existing data to the new system . 2. Institution-building initiatives including (a) training in selected economic, financial, and technical subjects; (b) consultant assistance for special studies and economic model -building; (c) management and training consultancy support; and (d) establishment of a Treasury library and Economic Information Center open to the public . c. Comments on Project Cost, Financing and Dates The project costs US$30.05 million, financed by IBRD US$ 9.15 million, GTZ, US$1.95 million, and the Government of Turkey, US$18.9 million. The project was appraised in June, 1992, approved by the Board on May 28, 1992, made effective on September 12, 1992, and closed on June 30, 2000, one year behind schedule . 3. Achievement of Relevant Objectives: 1. Development of a DMS considerably improved the quality and timeliness of Treasury economic data and Treasury's access to databanks of multilateral institutions and other agencies . (a) Hardware: A noteworthy development was the shift in project concept from a mainframe to a PC network in line with developments in the computer industry in the early 1990s. User needs were determined by an extensive consultant study which developed requirements for each of the 11 directorates of the Treasury . The network utilizes ATM switches, a modern technology. Six modern servers support about 875 PCs, with capacity to go to 1500 PCs to allow for future growth. Security systems and firewalls were installed to provide security . (b) Software: An Oracle Relational DMS was acquired. DMS also uses Graphical Query Language and Power Builder software to create department formats and reports. Email was installed. (c) Implementation: Treasury staff assisted by consultants converted existing data, creased new databases within the DMS and Treasury staff were trained in use of the new system . 8 out of 11 Treasury directorates are making effective use of the DMS, including Domestic Debt, External Finance, Banking, Foreign Trade, Macroeconomic Indicators, Asset and Debt Management, Sworn Bank Auditors, and Financial Institutions. The conversion of data to the new system is satisfactory, although further improvements can be made on the interface between Directorates . 2. The institutional development component succeeded in its overall objective of improving the quality of Treasury staff using the new and better information available with the new DMS . (a) Both long and short term training on economic, financial, and technical subjects were provided . Midway through the project, a revised and expanded program for auditors was implemented, and was completed only at the end of 2001. Many of the studies envisaged were completed, including one which developed Financial Early Warning Indicators . (b) consultant assistance for model building was not implemented as foreseen because the high -level consultants sought by Treasury were not available as envisioned . (c) Management and Training support was provided largely as foreseen. 300 staff from 12 departments of the Treasury received short -term training. A system was institutionalized to provide training in the future to new staff and to facilitate the introduction of new applications and knowledge in the future. (d) the Economic Information Center was not established as a physical entity, but Treasury economic information has been effectively disseminated over the Interned . The library, training center, conference facility, and publication center were all developed as envisioned . 4. Significant Outcomes/Impacts: The quality of Treasury economic statistics has improved significantly . As an indicator of this improvement, IBRD staff report that Turkey's Treasury debt reporting is among the best from member countries, attributing this high quality data to this impact of this project . 5. Significant Shortcomings (including non-compliance with safeguard policies): Three directorates are not yet utilizing the DMS . The State-Owned Enterprises Directorate and the Insurance General Directorates made little use of the new system because of institutional problems . Since problems with SOEs have had major macroeconomic implications, this is a major shortcoming . In addition, implementation of the project for the Automated Document Archival Systems has been postponed . The studies to be done under the guidance of high-powered consultants engaged by the project were not done . 6. Ratings : ICR OED Review Reason for Disagreement /Comments Outcome : Satisfactory Satisfactory This project achieved a smooth transition to a much-improved data base for Treasury, a difficult task in the best of circumstances. Institutional Dev .: Substantial Substantial Sustainability : Likely Likely Bank Performance : Satisfactory Satisfactory The new computer system, based on networking of PCs rather than a mainframe as had been envisaged in the 1992 appraisal report was implemented with few problems because of high quality supervision support from the Bank . However, the Bank was not able to provide the high-level consultants for economic studies as agreed . Borrower Perf .: Satisfactory Satisfactory Quality of ICR : Satisfactory NOTE ICR rating values flagged with ' * ' don't comply with OP/BP 13.55, but are listed for completeness. NOTE: 7. Lessons of Broad Applicability: 1. Turkey's experience shows that good and timely data, while useful for making decisions, does not ensure good economic management. 2. Consultants should be chosen for their ability to transmit knowledge as well as for their academic credentials. The overemphasis by Treasury on "star" consultants resulted in disappointing results when the chosen consultants were not available as foreseen . 3. Internal incentive systems to adopt new systems should be fully explored and developed before project implementation begins . The failure of two directorates to adopt the new system might have been avoided if the internal barriers to this progress had been explored more carefully and addressed by Treasury with Bank support . 8. Assessment Recommended? Yes No 9. Comments on Quality of ICR: The ICR is well written and clearly presents this comprehensive data management project, precisely specifying both its positive and negative aspects .