Tanzania - Financial and Legal Management Upgrading Project

Document of The World Bank FOR OFFICIAL USE ONLY Report No: 21356 IMPLEMENTATION COMPLETION REPORT (IDA-24130) ON A CREDIT IN THE AMOUNT OF SDRs 14.6 MILLION TO THE GOVERNMENT OF THE UNITED REPUBLIC OF TANZANIA FOR A FINANCIAL AND LEGAL MANAGEMENT UPGRADING PROJECT JANUARY 4,2001 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 without World Bank authorization.  CURRENCY EQUIVALENTS (Exchange Rate Effective January 4, 2001) Currency Unit = Tanzania Shillings (T.Sh.) 1 Tanzania Shilling = US$ 0.00125 US$ 1 = T.Sh. 803 FISCAL YEAR July 1 June 30 ABBREVIATIONS AND ACRONYMS AGO Attorney General's Office BRELA Business Registration and Licensing Authority CPA Certified Public Accountant CTB Central Tender Board DANIDA Danish International Development Agency DCA Development Credit Agreement DFID Department for International Development FILMUP Financial and Legal Management Upgrading Project GOT Government of Tanzania IAA Institute of Accountancy Arusha IDA International Development Association IFM Institute of Finance Management IISC Inter Institutional Steering Committee LRC Law Reform Commission LSCC Legal Sector Component Committee ICR Implementation Completion Report LRC Law Reform Commission LSRTF Legal Sector Reform Task Force MOF Ministry of Finance MTR Mid-Term Review NBAA National Board of Accountants and Auditors NORAD Norwegian Agency for Development OCAG Office of the Controller and Auditor-General PER Public Expenditure Review PSRP Public Sector Reform Program SAR Staff Appraisal Report SDR Special Drawing Rights SIDA Swedish International Development Agency TAC Tanzania Audit Corporation UNDP United Nations Development Programme Vice President: Callisto E. Madavo Country Manager/Director: James W. Adams Sector Manager/Director: Brian D. Levy Task Team Leader/Task Manager: Denyse E. Morin  FOR OFFICIAL USE ONLY Tanzania Financial and Legal Management Upgrading Project CONTENTS 1. Project Data 1 2. Principal Performance Ratings 1 3. Assessment of Development Objective and Design, and of Quality at Entry 2 4. Achievement of Objective and Outputs 6 5. Major Factors Affecting Implementation and Outcome 14 6. Sustainability 15 7. Bank and Borrower Performance 16 8. Lessons Learned 18 9. Partner Comments 21 10. Additional Information 21 Annex 1. Key Performance Indicators/Log Frame Matrix 22 Annex 2. Project Costs and Financing 24 Annex 3. Economic Costs and Benefits 25 Annex 4. Bank Inputs 26 Annex 5. Ratings for Achievement of Objectives/Outputs of Components 28 Annex 6. Ratings of Bank and Borrower Performance 29 Annex 7. List of Supporting Documents 30 Annex 8. Borrower's Contribution to the ICR 32 This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not be otherwise disclosed without World Bank authorization.   Project ID: P002817 Project Name: FINANCIAL & LEGAL MANAGEMENT UPGRADING Team Leader: Denyse E. Morin TL Unit: AFT12 ICR Type: Core ICR Report Date: January 4, 2001 1. Project Data Name: FINANCIAL & LEGAL MANAGEMENT L/C/TF IDA-24130 UPGRADING Number: Country/Department: TANZANIA Region: Africa Regional Office Sector/subsector: BI - Institutional Development Key Dates ________ Osidnal RevisedlActtual PCD: 09/30/1991 Effective: 12/04/1992 10/15/1992 Appraisal: 02/20/1992 MTR: 06/30/1995 10/13/1995 Approval: 07/09/1992 Closing: 12/30/1998 06/30/2000 |Borrower/Implementing Agency: I GOVT. OF TANZANIAIGOT Other Partners: ISD Saff X Current . At Aip7ral[ Vice President: Callisto Madavo Edward Jaycox Country Manager: James Adams Stephen Denning Sector Manager: Brian Levy David Cook Team Leader at ICR: Denyse Morin Uche Mbanefo ICR Primary Author: Peter Morgan 2. Principal Performance Ratings (HS=Highly Satisfactory, S=Satisfactory, U=Unsatisfactory, HL=Highly Likely, L=Likelv. UN=Unlikely, |HUN=Highly, Unlikely, HU=Highly Unsatisfactory, H=High, SU=Substantial, M=Modest, N=Negligible) Outcome: S Sustainability: L Institutional Development Impact: S Bank Perfornance: S Borrower Performance: S QAG (if availabtle) ICR Quality at Entry: S Project at Risk at Any Time: No  2 3. Assessment of Development Objective and Design, and of Quality at Entry 3.1 Original Objective: Project Introduction and Background. The Financial and Legal Management Upgrading Project (FILMUP) was appraised in March 1992 and became effective on October 1, 1992. It was the first Bank-supported investment in Tanzania to focus on the upgrading of accounting and auditing capacities in both the private and public sectors and the first credit in the history of the Bank to make an investment in the legal framework of a member state. As such, the FILMUP was intended to strengthen both the institutional and organizational infrastructure of the new open market economy in Tanzania that was slowly emerging since the mid- 1 980s under the Economic Recovery Program of the Government of Tanzania (GOT). The key design aspects of FILMUP on the financial side can be traced back to a commission established by the GOT in 1989 to look at issues to do with financial management in the public and private sectors. During the FILMUP discussions, the Government designated three parastatals- the National Board of Accountants and Auditors (NBAA), the Institute for Finance Management (IFM) both located in Dar es Salaam and the Institute of Accountancy in Arusha (IAA) as implementing organizations. The Office of the Controller and Auditor General (OCAG) was selected as the only implementing organization in the public sector. Most of the preliminary discussions between the GOT and the Bank in 1991 were based on the assumption that the FILMUP would focus solely on improvements to auditing and accounting. Both the GOT and the Bank, however, had also come to accept the critical need for legal as well as financial reform if the Economic Recovery Program was to be effective. The GOT and the Bank therefore agreed late in the design stage to include some attention to legal reform in the Staff Appraisal Report (SAR) provided it would not slow the pace of overall project development. The implementing organizations on the legal side selected by the Government for participation in the FILMUP were the Attorney General's Office (AGO), including the Civil and International Law Division, the Legislative Division, the Administrator General's Division, the Judiciary, the Law Reform Commission (LRC) and the Registrar of Companies (now the Business Registration and Licensing Authority or BRELA). The objectives of the FILMUP as set out in the Development Credit Agreement (DCA) were to improve (i) accounting and auditing; (ii) the legal and regulatory framework; and (iii) the administration of justice. These broad objectives were to be achieved by strengthening the NBAA, the IFM, the IAA and the OCAG on the financial side and the AGO, the Judiciary, the Law Reform Commission and the Registrar of Companies on the legal side. The project was also to carry out a series of studies including a legal sector study, a cost recovery study and a review of the role of the Tanzanian Audit Corporation (TAC). 3.2 Revised Objective: (not applicable)  3 3.3 Original Components: Part A: Financial Management: 1. NBAA: (a) Strengthening of NBAA to improve the quality of accounting and. auditing in the Borrower's territories through the provision of training and technical support, preparation of study manuals, and the acquisition of office equipment and vehicles; and (b) Construction of office accommodation for NBAA. 2. OCAG: Strengthening of OCAG to enable it to carry out its functions of auditing all civil service accounts, through the provision of staff training and acquisition of comnputers, office equipment and vehicles. 3. IAA: (a) Strengthening IAA to enable it to better train students for the final stages of the CPA examinations, through the provision of overseas and local training for trainers, acquisition of library books, periodicals and other library equipment, computers, other office equipment and vehicles; and (b) Extension and remodeling of IAA buildings. 4. IFM: (a) Strengthening of IFM, to enable it to expand its curriculum to introduce computing courses and update other courses, through the provision of local and overseas training, acquisition of library books, periodicals and essential library equipment, as well as computer, office and classroom equipment; and (b) Acquisition of furniture for classrooms, a cooling system for their library and assembly hall and other equipment and vehicles. Part B: Legal Sector i. Attorney-General's Office: (a) Strengthening and upgrading the capabilities of the staff in the Civil and International Division, Legislative Division and Administrator-General's Department in the Attorney-General's office, through the provision of training; (b) Acquisition of library books, legal journals, shelving, office equipment and other materials, and the printing of forms for the Administrator-General's Department; (c) Revision and printing of the Laws of Tanzania; and (d) Review of commercial and related laws, including laws that impact on private sector development. 2. Judiciary: (a) Strengthening the judiciary in the area of commercial law developments, and streamlining procedures to ensure speedy disposal of cases, through the provision of training for High Court Judges, Resident and District Magistrates, Registry Assistants and Registrars of the Court of Appeal and High Court; (b) Upgrading of the High Court Library through the streamlining of procedures, training of library assistants and the acquisition of books, legal journals and materials, some shelving and library equipment; (c) Acquisiticon of typewriters for the most busy magistrates courts and computers for the High Court Registries in Dar es Salaam and the eleven zonal centers; and (d) Publication of the Tanzania Lawo Reports. 3. Law Reform Commission (LRC): Strengthening the LRC through the provision of staff training and acquisition of computers and other office equipment.  4 4. Strengthening of the Registrar of Companies and streamlining of its systems, to enable it to provide accurate and timely information about companies and businesses through staff training, acquisition of computers and other equipment. Part C: Studies 1. Legal Sector Study: Carrying out of several in-depth studies of various aspects of the legal sector and the development of strategy to improve its performance. 2. Cost Recovery Study: Carrying out of study of methods of increasing cost recovery in the institutions, both financial and legal, benefiting under the Project. 3. TAC Study: Carrying out a study designed to recommend specific ways of giving effect to the decision to remove TAC's monopoly on the auditing of parastatals. 3.4 Revised Components: Component Cost Rating (USD million) NBAA (Financial Component) 3.7 S IAA (Financial Component) 6.4 U OCAG (Financial Component) 0.5 S Institute of Finance Management 2.7 HS Legal Component 5.6 S Project Coordination 0.9 S 3.5 Quality at Entry: The design and structure of the FILMUP had, from the outset, a number of characteristics that would shape its implementation and outcomes over the next eight years including the two extensions. These were the following: a) Both the financial and legal components- 80% and 20% of the total allocations respectively- were housed together under the FILMUP structure but were managed as separate activities. This 'double' structure of the FILMUP was a reasonable decision at the time given the skepticism within the Bank in 1992 about the appropriateness of separate investments in the legal sector. b) The absorptive capacities of the implementing organizations were quite different in the two sectors. Three of the four organizations in the financial component (except the OCAG) were  5 parastatals reporting to the Ministry of Finance. As such, they had a good deal more operational autonomy in terms of procurement and compensation policies. They were also relatively small and manageable in size. All the organizations on the legal side were within the public sector in 1992 and only one- the Registrar of Companies became an executive agency within the Tanzanian public service during the course of the FILMIJP. Two of the legal organizations- the Attorney General's Office (AGO) and the Judiciary- were large complex systems with a national reach. Coordination amongst the implementing organizations on the legal side was to be much more complex and less coherent, than on the financial side. c) The design of the FILMUP was relatively simple, an approach that served the project well over much of the course of implementation. It involved the supply of a variety of inputs ranging from office equipment to consulting services. The supply of most of the inputs in both components- with the exception of training on computers- was non-sequential meaning that work in the NBAA or the IAA on the financial side or in different parts of the AGO could proceed independently without affecting the overall pace of activities or progress in other units. The FILMUP was not designed as a complex program that had to follow a predetermnined and integrated plan of action. d) Virtually all the implementing organizations in both components had minimal experience in working with international funding organizations. Tanzanian staff knew little about international procurement, contracting, the management of consultants or request for proposal writing. Similarly, the Bank had little experience in working on rejorm programs in accounting, auditing and especially the legal sector. e) Each of the two major components- the financial and the legal- had two (Listinct parts. An immediate package of assistance was to be used to build the physical and institutional infrastructure of the implementing organizations. On the legal side, these infrastructure needs were particularly pressing. But the FILMUP was also intended to help senior Tanzanian officials think through and learn about the key strategic issues facing their respective sectors. In both sectors, this process of leaming and strategy formulation followed rather than preceded the infrastructure assistance. On the FILMUP, the interrelationships between implementation and strategy formulation were more complex than the conventional 'plan then implement' approach. The project was not intended to be a systematic effort in the implementation of comprehensive reforms. Its role was more one of agenda-setting, direction 'finding' and facilitation. It may be useful at this stage in the ICR to make a judgment on the quality at entry issue. As mentioned earlier, neither the Government nor the Bank had much experience in designing projects to do with accounting, auditing or legal affairs. As a consequence, few participants on either the Bank or the Borrower sides were aware of the logistical implications of working in specific activities such as legal revisions. It is not therefore surprising that the quality at entry of the initial FILMUP design proved in hindsight to have been uneven. On the plus side, the strategic decision to invest in the financial and legal sectors in 1992 proved to be a far-sighted one by the end of the 1990s. The value of the FILMUP contributions became irtore relevant and accepted as time proceeded. The FILMUP design also provided sufficienit flexibility and  6 decentralized authority to the implementing organizations to allow their commitment and energy to drive project operations. The non-sequential nature of its activities served to isolate delays to individual components, a characteristic that was critical later in the implementation process. The simple design was also an appropriate one given the lack of absorptive capacity and the inexperience of the participants. It proved to have sufficient relevance over time to provide a framework for action over the decade of the 1990s. But the FILMUP design also contained a series of gaps and omissions, some of which were never rectified during the life of the project. a) The SAR, not surprisingly, underestimated many of the constraints to implementation especially those dealing with procurement and the provision of services. The Mid-Term Review (MTR) in late 1995 was later to describe the implementation timetable as "totally unrealistic" and a "basic defect" in the original appraisal. The SAR process also did not help to create a common understanding of the implementation issues that were to follow. Nor did it help to create much in the way of actual capacity to deal with implementation issues. The result was a series of delays in the first three years 1992-1995 that led eventually to two extensions in 1999 and 2000. A good part of the eventual success of the FILMUP stemmed from the shared ability of both the Tanzanian participants and Bank staff to learn and adapt in an effort to recover lost time. b) The SAR focused on the description of inputs rather than an analysis of potential outcomes, an approach common in the early 1990s. Few performance indicators accepted by all the implementing organizations emerged from the original design. Some were added later but never provided a shared way for both the implementing organizations and the Bank to assess performance at either the organizational or project levels. c) Finally, the SAR did not contain much systematic thinking with respect to a series of project themes including strategies for training, computerization or organizational change. No training needs assessment was ever done on the legal side. The implications of introducing information technology into the legal sector organizations were never clear from the outset. The SAR design paid no attention to gender. And it lacked a long-term view of either the development of the two sectors or the proposed Bank involvement. 4. Achievement of Objective and Outputs 4.1 Outcome/achievement of objective: Two factors affect the assessment of the development objectives of the FILMUP. First, the project achievements varied mainly according to the quite different conditions in the financial and legal sectors. Absorptive capacity was much greater in the financial sector especially in those organizations located in Dar es Salaam and faster progress was to be expected. The potential impact of the FILMUP's work, however, appears to have been as great on the legal side as on the financial. Second, both components had the potential to make equally useful, short-run contributions and important longer-run development impacts. The former are already apparent on the ground in Tanzania. The latter are not yet measurable but should begin  7 to show themselves over the course of the next three to five years. Reasonable chances for sustainability make this prospect more likely. Two indicators of development outcomes appear from time to time in the FILMUP documentation. Much was made in the original SAR in 1992 of the issue of stuclent pass rates on the NBAA examinations as an indicator of FILMUP's effectiveness. Pass rates, in fact, did increase in the period 1992-2000 with success rates of Certified Public Accountants (CPA) students at professional levels III and IV rising from less than 20% in both categories in 1992 to 26% and 28% respectively in 1999. These increases in pass rates are generally felt to be rough indicators of steady, if modest, progress and are generally in line with the slow improvement in most educational organizations that undertake reform prograrns, including some more arnbitious than those of the FILMUP. But it is also true that the pass rate issue conceals as much as it informs in the Tanzanian case and by itself, should be taken as only one limited indicator of development effectiveness. A second indicator that emerges from the studies on the accounting profession carried out during the extension period is the total number of Tanzanian graduates with certified skills in accounting and auditing. At the start of the work in 1992, Tanzania had a ratio of accountants to GDP which was 15% below the regional East African average and 60% below that of Kenya. The FILMUP does not appear to have dramatically shrunk this gap given the rmodest progress to date on graduation levels and the expanding needs of the Tanzanian economy since the mid- 1 990s. Tanzania remains short at least of 2000 fully-qualified and 5600 semi-qualified accountants as well as over 15,000 accounting technicians both in the private and particularly the public sector. The demand in the private sector is now about 160 per annum against the current supply of 70. Shortages in the public sector remain dramatic with only 15 CPAs at present on staff at the national level. Throughout the period 1992-2000, Tanzania also has to contend with a high rate of out migration of accounting and auditing skills. In the short term therefore, the FILMUP prevented the skills gap from widening even further as Tanzania began to outpace other countries in East Africa after the mid-1990s. In the longer term, it is anticipated that the growth in capacity of the implementing organizations will have laid the foundation for a diminution in the gap between demand and supply of accounting and auditing skills. The FILMUP design did not address gender issues in 1992 and the project did not generate desegregated information in its reports. But some analysis carried out during the Implementation Completion Report (ICR) mission indicates that women did get reasonable access to training opportunities provided under the FILMUP. On the legal side, women received almost 52% of all short-term individual training awards, 56% of all short-term group training awards and 46% of the individual long-term awards. No detailed figures were available on the financial side but estimates of both student intakes and opportunities for training awards appear to be in the neighborhood of 25-30%. The OCAG also began to carry out gencder-based audits of government operations. Financial In the longer term, the legacy of the FILMUP should help to induce a series of useful development contributions. First, it did help to strengthen the organizational infrastructure  8 underlying the accounting and auditing industry in Tanzania. The country now has at least five organizations working in the sector including the NBAA, IFM, IAA, the Institute for Development Management at Mzumbe and the Business School at the University of Dar Es Salaam. This growing educational system should be able to work towards producing the graduates who can meet the more sophisticated demands of the market economy now emerging in Tanzania including those of international investors. These include activities such as value- added tax administration, the accounting needs of capital markets and international audit standards for resident firms. In addition, a number of private educational organizations are now coming on stream that can help to meet the demand. Second, the presence, influence and reach of such organizations will be critical in the continuing effort to strengthen the transparency of financial transactions in Tanzania. Institutional development in the form of general rules of the game such as honesty and ethical dealings plus the dissemination and enforcement of acceptable accounting and auditing standards can help to devise and require appropriate standards of behavior. The FILMUP was part of a broader effort by the Government to instill more financial discipline and enforceability including having all parastatals bring their accounts up to date by 1993 and by insisting on the certification of audits in most private firms. Legal Only a provisional judgment can be made on the development outcomes on the legal side. The size of the credit ($6.40 million) was minuscule when compared to the needs in the sector. But the Government of Tanzania's contribution to the ICR does make a considered case for genuine development outcomes coming out of the FILMUP. Most senior Tanzanian officials interviewed for this ICR pointed in particular to the value of the policy work. The six year process both clarified a series of issues to do with legal reform and greatly increased the capacity of both individuals and organizations to think through strategies to promote further legal reform and enhanced accountability. Some initial projects coming out of the Medium Term Strategy have now been taken up such as the Danish assistance to the establishment of the Commercial Court Division. Other international funding agencies are presently considering ways to make a 'quick start' on implementing the Medium Term Strategy. No systematic evaluation has been carried out of the impact of the over 1100 training awards made under the legal component of the FILMUP. And it would be unrealistic to assume dramatic increases in personal and organizational performance given the pervasive constraints that Tanzanian officials still face in their daily working lives. The Borrower's contribution to the ICR also points to the future difficulties in sustaining the personal gains in professional skills made to date. But all the Tanzanian officials interviewed for this ICR attested to the value of the training in terms of building skills, broadening outlooks and creating motivation in organizations that had begun to lose hope of getting access to any professional training opportunities. Few Tanzanian staff had been given much international exposure and even fewer had had training opportunities in more specialized topics such as intellectual property law or in more operational topics such as legislative drafting.  9 The provision of the office equipment likely led to modest irnprovements in organizational performance, a trend that is normal in circumstances such as thDse in Tanzania. The FILMUP resources were simply too small and widely distributed to have a dramatic impact. The FILMUP resources on the legal side were much less targeted in support of a systematic strategy of organizational development compared to the financial. The four- implementing organizations on the legal side also had less absorptive capacity especially with respect to information technology and library resources than did their counterparts on the financial. But these modest gains should not obscure the underlying significance of the supply of equipment. For the first time in modem Tanzanian history, the Government began to invest in the physical and logistical infrastructure of its legal system, a trend that now seems likely to continue. In summary, the main development outcome on the legal side was the: emergence of a broad consensus, both inside and outside the legal profession, of the developmental value of an effective and equitable legal system. The FILMUP acted as both a platform and catalyst for this change. It helped to shift issues to do with the law and the judiciary on to the main development agenda of both the Goverrnment and other international funding agencies for the first time. And it provided an injection of resources in the form of training, equipment and books into six organizations that had long been severely underfunded. 4.2 Outputs by components. Implementation Experience The pace of implementation on the FILMUP was uneven over the first three years. The date of effectiveness was postponed by three months to October 1, 1992. Progress was slow from that point to late 1995 with considerable delays in equipment procurement, contracting with consultants, the design and construction of the civil works and account. replenishments. Disagreements amongst the Ministry of Justice and Constitutional Affairs (MJCA), the Central Tender Board (CTB) and the Government Printer halted procurement on the legal side in late 1995. The MTR noted in October 1995 that only $11,047 of the budgeted amount of $580,000 for legal office equipment had been spent. Only $7,741 out of $1,800,000 had spent on the production of the law revisions. International price fluctuations, changes irn needs and gaps between initial budget projections in the SAR and tender offers led to a series of budget revisions and shifts in procurements. The price estimates in the SAR on the civil works and training proved too low. Prices on computers were overestimated. GOT shortfalls ir. the provision of counterpart funds delayed progress on items such as the NBAA staff houses. In the end, these were never built. Some activities, however, such as the training programs and the procurement of vehicles proceeded more or less on schedule. In 1996, a new Coordinator on the financial side and a growing faniiliarity with the various procurement procedures enabled the FILMUP implementing organizations to accelerate progress. The pace of equipment supply accelerated. The NBAA building complex was completed, albeit three years behind schedule in late 1997. Much of the previous work on strategy development began to show itself. Additional training awards were made with unallocated funds. During the latter years of the project, the Borrower and the Bank also agreed to carry out a series of studies on accounting and auditing that had not been part of the original  10 SAR but that would help take stock of the status of the accounting and auditing profession and would also give indications on the way forward for the profession. It was agreed to extend the closing date of the FILMUP DCA from December 31, 1998 to December 31, 1999 for two reasons: to complete key activities that had not been implemented in the previous six years, and to undertake the above-mentioned studies. A second extension was later negotiated to extend the project to June 30, 2000. By the end of the second extension, the FILMUP had largely made up the implementation gaps that had arisen early in the work. Financial Component Most of the FILMUP inputs on the financial side were focused on improving the human and logistical capacities of the four implementing organizations. This objective was to be achieved by carrying out the following activities: (i) Enhancing staff teaching, research, management and consulting skills; (ii) Upgrading the administrative and training buildings; (iii) Improving library facilities; and (iv) Acquiring modem office and training equipment to improve service delivery. The lead agency was the NBAA based in Dar es Salaam. The Executive Director of the NBAA filled the role of the Chairman of the Inter Institutional Steering Committee (IISC) which coordinated the work on the financial component during the eight years of the project. Under the FILMUP, NBAA received financial support for the construction of a new office complex in central Dar es Salaam including a standby generator, water borehole, cooling system, library, function hall and cafeteria. The FILMUP also provided the NBAA with a broad array of training opportunities (16 long-term and 47 short-term), technical assistance for activities such as the study manuals and office equipment including computers, vehicles (7) and books (1211 volumes). The FILMUP supplied the other organization located in Dar es Salaam--the IFM--with civil works including a new elevator, cooling system, generator, water supply system and cafeteria, training awards (30 long-term and 43 short-term), books (2145 volumes) and journals, technical assistance to fill in behind IFM staff on long-term training, vehicles and office equipment including computers and furniture. At the IAA located on the outskirts of Arusha, the FILMUP funded extensive civil works including an extension of the administrative block, a new cafeteria, a transformer and borehole, all of which were completed in November 1997. In addition other repair work was undertaken during the project extension. IAA also benefited from an in-depth study to help it overcome some of its institutional shortcomings. Even though the quality of the study was only average, its recommendations were not fully implemented. The FILMUP also provided, training (30 long-term and 43 short-term), 2 technical assistance personnel to replace IAA staff on full-time training leave, books and journals (3540 volumes) and computers. The portion of the FILMUP used by the OCAG went towards staff training (58 long-term and 54 short-term out of a total staff of 420), computers, 9 vehicles and office equipment. The FILMUP also sponsored senior staff of the OCAG to attend a study tour to review the practices of the Auditor General of South Africa.  11 Finally, the FILMUP supported a series of studies, analyses and workshops on accounting, auditing and organizational development. The FILMUP supported a study in March 1995 on the role of the Tanzanian Audit Corporation. It also funded a study on cost recovery in the four implementing organizations in late 1995 that proved influential in shaping their strategies for growth and sustainability. Beginning in 1998, using unallocated funds, the Borrower and the Bank decided to carry out seven studies on subjects ranging from The Issuing and Enforcing of Accounting and Auditing Standards by a private consulting firm to a Review of the Effectiveness of OCAG in Fighting/Preventing Fraud and Promoting Inde endence by the Swedish National Audit Office. The FILMUP also sponsored a workshop in February 2000 which brought together a wide range of stakeholders and participants to discuss the results of the studies and to chart the way forward for the accounting and auditing sector. Legal Component The general FILMUP approach to the supply of inputs on the legal side was roughly comparable to that on the financial but differed somewhat in terms of a smaller ilow of financial resources, the absence of civil works, the greater importance of policy formulation and the greater operational constraints of the public service context. The supply on inrults on the legal side was designed to meet two objectives: first, to inject some badly needed resources into some key organizations such as the Judiciary and the AGO in the form of training., equipment and books that had long limited their effectiveness. Second, the Government, from the outset, wanted to use the FILMUP resources to undertake a systematic policy review of the key strategic issues facing the sector over the medium and long-term. The overall supervision and coordination on the legal side were carried out by the Legal Sector Component Committee (LSCC), a group that met much less frequently than did the IISC on the financial side. The FILMUP supplied many of the same type of inputs including 3 vehicles, equipment (4 faxes, 360 manual and 50 electronic typewriters, 50 personal computers and related accessories). The FILMUP also supplied books and journals to most of the implementing organizations including the High Court, AGO and the Law Reform Commission, all of which lacked adequate law library systems. Registration forms and certificates were printed and supplied to the Office of the Administrator General. The training supplied under the FILMUP consisted of a variety of both local and foreign training, individual and group and short and long term. Course content included subjects as diverse as judicial administration, white collar crime, prevention of fraud and corruption, legislative drafting, capital nmarkets and word processing. Over 1100 Tanzanian officials received training including 60 D primary court magistrates. Three of the most important FILMUP inputs centered around the law revisions from 1965, the updating of the Case Law Reports from 1983 and the review of commercial and related laws. The original schedule for the law revisions called for their completion in July 1993. The current completion date for the work ( 28 volumes, 407 chapters and 28,000 pages) is July 2001 being supported by SIDA. Lack of staff time and skills, irregular donor financing, disagreements over staff emoluments and the terms of reference of external consultants all served to delay the work. The production and updating of the Tanzania Law Reports 1983-1992 for the High Court and the Court of Appeal encountered some of the same constraints which delayed their  12 publication for four years until May 1998 at which time they became available in both book and CD-ROM formnats. The Govermment has plans to produce CD-ROMs to bring publication up to 1997. A continuous updating from 1998 will be undertaken by the Tanzanian Law Reports Board. During the discussions in Tanzania for this ICR, senior staff in the AGO cited the FILMUP support of the strategy formulation process as the most important input of the project despite it using only 1% of the total FILMUP credit. The Legal Sector Reform Task Force (LSRTF), a group of Tanzanian legal experts began its work in July 1993, supported by a series of eleven donor-funded studies on particular issues including Legal Aid and Dissemination of Legal Information, Legal Education in Tanzania and the Administration of Justice and others. The Report of the LSRTF was issued in January 1996 and was followed by extensive official and cabinet deliberations, and approval of its main recommendations, a donor conference in October 1997 on a program arising out of the report, further work on the strategy and the recrafting of another more strategic document entitled the Legal sector Reform Program, Medium Term Strategy and Action Plan, 2000-2005 worth $44.0 million which was presented to and well received at a second donor conference in December 1999. Most of the inputs to the legal sector originally scheduled under the FILMUP were eventually provided with a couple of exceptions. The original design had contained plans to introduce modem management information systems into some legal sector organizations such as the Office of the Administrator General's and the Registrar of Companies. But the complexities involved in such technological innovation turned out to be severely underestimated. Modest efforts to introduce computers and microfiche in support of improved records management were soon abandoned in the face of mounting costs, lack of space and trained staff and the prospect of a long period of implementation which the FILMUP could not accommodate. 4.3 Net Present Value/Economic rate of return. not applicable 4.4 Financial rate of return: not applicable 4.5 Institutional development impact: Financial In the short term, the most obvious development objective achieved was the demonstrable strengthening of all of the four implementing organizations. To achieve this goal, three of the four organizations, namely NBAA, IFM and IAA underwent some retrenchment and restructuring in the mid to late 1990s as part of their own efforts to adjust to new stakeholder demands and market conditions. NBAA reduced its total staff from 83 in the mid-I 990s to 42 by June 2000. During that same period, GOT reduced subsidies and training awards. This had a serious effect on both IFM and IAA. Their intake fluctuated but IFM's intake overall increased during the project period. The IFM became a more diversified and capable educational organization under the FILMUP. Student intake rose from 455 in 1992/93 to 805 in 1998/99. Its overall student pass rate rose to about 75% in 1999 from 68% in 1994. The level of its subsidy  13 fell from about 40% to 30% by the end of the project. As for IAA, it faced a. more difficult situation. It did not meet its projected intake of 300 by 1995 or even by late 1998. This lead to a decision to defer FILMUP-supported construction of some of the projected civil works. In addition, it became evident that IAA would be unable to provide the required local funding for construction and the downstream maintenance costs associated with the civil works. All three organizations adapted, albeit at different speeds, by offering new services, focusing on core functions and outsourcing certain aspects of their operations such as cafeteria services. The NBAA and the IFM made the most rapid progress. Both became much more capable organizations with improved capacities and performance in strategic management, computerization, outreach, staff teaching and research skills and policy dialogue. The Tanzanian contribution to the ICR analyzes these gains in organizational performance in somrue detail, all of which were visible on the ground in Dar es Salaam. The NBAA, for example, reduced its dependence on government budgetary support from 52% in 1991 to 21% in 1999. Its objective now is to be self-financing by 2005. The IAA faced a more difficult set of operating conditions compared to those of NBAA and the IFM, both of which were located in Dar es Salaam. It should not therefore be surprising that it achieved fewer of its original objectives compared to the other two parastatals. Founded as a project of the NBAA in 1987, the IAA was a much younger, less experienced organization when the FILMUP began in 1992. Its location on the outskirts of Arusha- a high-cost area compared to Dar es Salaam- seemed to complicate the recruitment and retention of both staff and students. The non-competitive emoluments offered by IAA made it difficult to retain high quality staff, which in return affected the quality of training provided and the ability to attract new students. It remains unclear whether IAA has positioned itself to attract new students and increase its intake to the point of sustainability. Twenty five per cent of the IAA staff that received long-term training under FILMUP left IAA by 1999, mainly for higher salaries in the private sector. The IAA also had to contend with interruptions in the flow of FILMUP funds from Dar es Salaam for its civil works component and comparatively higher costs of its participation in the FILMUP. The focus of its mandate - training at the CPA level - also made it more vulnerable to government cutbacks in training awards in the period 1995-1997 and less able to diversify its course offerings rapidly. Nevertheless, the IAA did manage to make some progress under the FILMUP. The new physical plant in the form of buildings, office equipment, generators and boreholes allowed the IAA to function for the first time as a modem teaching organization. The IAA indicated that it lowered its dependence on governmenrt funding from about 100% in 1992 to 67% in the mid 1990s to 40% in 1999. The pace of institutional growth at the IAA did not meet the original projections of the SAR but it still represented reasonable progress given the constraints to implementation the IAA encountered. The direct developmental impact of the FILMUP on the OCAG is more difficult to assess compared to the other three organizations. The OCAG received proportionately less support through the FILMUP compared to NBAA, IFM and the IAA. And it also received support from a number of other donors including the Department for International Development (DFID) and the Swedish International Development Agency (SIDA), both of whom made substantial contributions to its capacity. But it seems reasonable to conclude that the FILMIJP contributed to OCAG's capacities in terms of staff skills, outreach at the regional and district levels and perhaps  14 most important, assistance to the OCAG to increase its performance in information technology. 60% of its transactions and accounting records are now processed on computers. Annual audit reports are now current. Time taken to complete the annual audit has declined from 24 months to less than 15 months. A more detailed evaluation would have to be undertaken to assess the broader impact on public financial accountability. 5. Major Factors Affecting Implementation and Outcome 5.1 Factors outside the control of government or implementing agency. The FILMUP responded to, and was shaped by, a series of dramatic economic and political policy changes in Tanzania over the period 1992-2000. In 1992, the country had still not resolved a series of key public policy questions centering on the role of the state in economic development and the pace and nature of democratization. The use of information technology was virtually nonexistent in most public agencies. The country still restricted private investment both domestic and foreign. By the mid-1990s, most of these debates had been concluded in favor of a greater emphasis on market forces. The new government elected in 1995 began to privatize rapidly. By 1999, over 400 public enterprises had been privatized including seven large parastatals. Annual private sector investment rose from US$ 20.0 million in 1995 to US$ 170.0 million in 1998. The Dar Es Salaam Stock Exchange opened in April 1998. A value-added tax was introduced in July 1998. The use of information technology expanded rapidly particularly in Dar es Salaam changing many of the work processes on the FILMUP. By the end of the decade, the efforts of the Government were focused on building the institutional infrastructure to support an open market economy, an objective that FILMUP had been pursuing since 1992. The domestic accounting and auditing professions came under pressure to adopt regional and international standards. In many respects, the FILMUP was a timely supply response to the emerging demands of globalization. 5.2 Factors generally subject to government control. The particular state of the legal sector in Tanzania in the 1990s needs to be understood in order to make judgments about the pace and quality of the FILMUP implementation. As is now widely accepted within Government, this sector faced a pervasive crisis of to do with poor incentives, information and institutions. It had, for example, been grossly underfunded over virtually its entire history. Its approved and actual expenditures in 1997/98 and 1998/99, almost all on the recurrent side for personal emoluments, made up less than 1.5% of total Government outlays. Sector organizations such as the Judiciary and the Law Reform Commission lacked vehicles, suitable buildings, office supplies such as stationary and desks, library materials and modern systems of record keeping. The justice system, particularly in the rural areas, suffered from poor access, delays, corruption, lack of transparency and legitimacy. Staff lacked even basic skills let alone those in more advanced subjects such as international commercial law, white collar crime and capital markets. Organizations involved in law enforcement such as the police and prisons knew little about the law. Staff recruitment had been halted in 1996/97 due to financial constraints and had been lifted for replacement purposes only. As a result, the legal system experienced pervasive staff shortages such as the gap of about 700 magistrates at the primary court level. Salary levels were set at derisory levels with for example, High Court  15 judges earning less than 25% of their counterparts in Uganda. Lawyers at the Law Reform Commission received less than half the salary of messengers at the Tanzanian Revenue Authority. Other than personal integrity and a dedication to the rule of law, both the organizations and the individual staff had few incentives for performance. In 1999, Government accepted the need to begin investing in the legal system and made it a priorit y under the Medium Term Expenditure Framework. 5.3 Factors generally subject to implementing agency control: see above 5.4 Costs andfinancing: not applicable 6. Sustainability 6.1 Rationale for sustainability rating. Judgments about the sustainability of the FILMUP contributions valy both according to the particular sector and according to the short and the long term. On the legal side, most of the key organizations are likely to be sustainable given their unique function and mandate within the Tanzanian public sector. The challenge for the FILMUP was to help make these organizations relevant, effective and productive as well as sustainable. In the short andl medium term, the Government will need continued external assistance to achieve this more complex set of objectives. By itself, it will not be able to sustain the supply of training and equipment that has been forthcoming under FILMUP, an issue that is discussed in the Borrower's contribution to the ICR. Further outside support for these activities will likely be discussed between the Government and interested donors in the context of the next steps on the Medium Term Strategy and Action Plan 2000-2005. In the longer term, continuing reform in the legal sector and retairnig the performance gains made under the FILMUP will depend upon domestic pressure for charLge within Tanzania, the implementation of Government's public service reform program and the capacity of the financial management organizations to generate enough income to become self-reliant. The prospects for such pressure and internal support look promising. Background analysis prepared in support of the first phase of the new programmatic structural adjustment credit for Tanzania has identified the existence of a solid domestic constituency, including many in the private sector, arguing for continued legal reform including the further entrenchmeint of property rights, the enactment of bankruptcy laws, the enforcement of the new companies ordinance, the effective operation of the new Commercial Court and many others. A consensus has now emerged in Tanzania on the importance of creating a legal and regulatory framework that can underpin both the rights of individual citizens as well as the economic activities of local and foreign investors. This trend, along with the prospects for continued international involvement in the legal sector, should help sustain the gains made to date under the FILMUP.  16 6.2 Transition arrangement to regular operations: Sustainability in the legal sector will also depend on the impact of other initiatives of the Government and number of international funding agencies including the Bank. The Government has agreed to designate the legal sector as a priority sector under the Medium Term (2000/2001- 2002/2003) Expenditure Framework and to pursue broader legal sector reforms that include an examination of the terms and conditions of employment for the sector. The Public Sector Reform Program will help the Government to address the broader issue of salary and emoluments including those on the legal sector. The legal sector will also benefit from the work of the National Anti-corruption Strategy and Action Plan including diagnostic surveys in the Judiciary and the AGO. The Government is also making efforts to enter into a dialogue with civil society on a number of legal issues. Prospects for sustainability on the financial side need to be assessed differently. All three of the parastatals- the NBAA, the IFM and the IAA- moved at different speeds towards greater cost recovery under the FILMUP. All three have plans to offer a variety of services to members, students and clients in the Tanzanian and East African market places. Given the growing demands for skills in accountancy, auditing and information technology, all three have a reasonable chance to sustain themselves in the years ahead. However, it is anticipated that this will be more difficult to achieve for IAA that has been lagging in terms of reducing its dependence on Government financing and becoming more attractive to the market. The operation of the OCAG will also need to be looked at more carefully. It continues to be a subject of discussion between the Government and the donors, particularly as Government strives to bring more accountability to its operations. 7. Bank and Borrower Performance Bank 7. 1 Lending: The Bank decision to invest in both the financial and legal components was a prescient one that generated development benefits in the short term and has the potential to lead to a stream of useful outcomes over both the medium and longer term. Project preparation and quality of entry were uneven as discussed in par. 3.5 above. The misjudgments on the implementation issues were to be expected in a series of activities where both the Government of Tanzania and the Bank had little operational experience. The overall rating is thus set at satisfactory. 7.2 Supervision: The level of Bank supervision is rated as fully satisfactory. Part of the reason lay in minimal Bank staff turnover on the FILMUP. The Principal Legal Counsel remained in place over the entire life of the project. The core project team remained in place from 1995 until the completion of the project in June 2000. A total of 15 supervision missions were undertaken, most of which left behind useful aide-memoires and schedules of follow-up activities. Most important, virtually all the Tanzanian officials interviewed for this ICR commended Bank staff  17 on their willingness to listen, learn, collaborate and provide a balanced mix of support, trust and pressure for performance. Tanzanian officials also noted the willingness of Bank staff to provide the flexibility needed for a project that required constant adjustments over much of its eight-year life as it endeavored to regain lost time. This flexibility took the form of bNdget reallocations, project extensions and equipment changes. In many ways, the Tanzanian participants and Bank staff succeeded in combining their respective roles into a coherent approach to project management- the Tanzanian officials taking the lead role in policy formulation, technical analysis and implementation and Bank staff providing facilitation, technical support and external monitoring and supervision. The effectiveness of this partnership explains much of the ability of the FILMUP to recover from its initial delays and go on to make substantial progress. 7.3 Overall Bankperformance: Overall Bank performance is rated as satisfactory. Borrower 7.4 Preparation: The effectiveness of borrower preparation varied by sector. Officials on the financial side were able to draw on a background of policy analysis in Tanzania calTied out in the late 1980s and early 1990s. Choices concerning the overall strategic direction and the needs of the implementing organizations built on this legacy. On the legal side, officials were at an earlier stage of diagnosing issues and devising operational strategies for reform. Preparation and design on the legal side were therefore much more experimental and improvised. The overall rating has been judged as satisfactory. 7.5 Government implementation performance: Project coordination especially from late 1995 onwards, was fully satisfactory. On the financial side, the IISC met over 40 times during the course of the FILMUP and provided consistent leadership to the work. The daily coordination on the financial side was inadequate during the period 1992 to late 1995 but improved noticeably from 1996 until project completion after the Bank's MTR mission identified problems with the coordination arrangements. The focal points in the NBAA, IFM, IAA and the OCAG remained stable, effective and committed over the life of the project. Performance on the legal side varied greatly as might be expecte(d given the limited absorptive capabilities of the implementing organizations, the lower level of inter-institutional connections and the lack of experience in dealing with international funding requirements. The LSCC met much less frequently than did the IISC as the analysis in the Government contribution to the ICR makes clear and provided less direction and overall supervision. 'I'he focal points for the implementing organizations were also less involved and effective than wiere their financial counterparts. The Coordination Office on the legal side, however, performed well over the entire course of the project and in many cases ended up carrying out functions that normally should  18 have been the responsibility of the LSCC, the implementing organizations or even other donors participating in the FILMUP. At one stage, the Project Coordination Office was contending with seven or eight different procurement and contracting systems. Tanzanian commitment and ownership were evident on the legal side but the greater organizational complexities and constraints of adhering to government procurement and contracting regulations made it more difficult to translate these qualities into daily operational performance. Reporting on the FILMUP activities has generally been efficient and timely. The submission of audit statements improved considerably over the years and can be rated as satisfactory overall with the final accounts having been submitted in October 2000. 7.6 Implementing Agency: see above 7.7 Overall Borrower performance: Judgments on borrower performance vary given the complex roles and capacities of the eight implementing organizations plus those of other occasional Tanzanian participants such as the Central Tender Board. On balance, borrower performance was satisfactory. 8. Lessons Learned Tanzanian commitment and focus, generated independently of the Bank, were the key factors in achieving the outcomes of the FILMUP. * The need for borrower ownership and commitment to ensure program effectiveness is now conventional wisdom in the international development community. But how does such ownership come about and why? Under what circumstances? And how can it be sustained over the life of a long program? Multi-organizational programs such as FILMUP can have difficulty in getting and keeping ownership and commitment in a way that makes an operational difference. FILMUP did achieve this objective and it is useful to understand the reasons behind this achievement. * The FILMUP was a Tanzanian initiative from the outset and was driven by national "champions"- a new generation of professionals in Dar es Salaam including accountants, auditors and lawyers- who had both strong personal and organizational incentives to see it work. Most of this new generation were committed to organizational performance rather than political ideology as the key to development progress. * Ownership was, in the FILMUP's case, also a function of continuity. The groups and officials mentioned above provided the energy and direction during the appraisal stage and then continued their involvement over most of the implementation phase of eight years. No handover between design and implementation groups broke the continuity of Tanzanian involvement and ownership.  19 Finally, both the Government and the Bank agreed to a delegation of authority that created an operating space for the Tanzanian implementing organizations to take action. The Bank also reinforced the value of this operating space by having a less intrusive policy agenda than normal and being content to play a more facilitative role. Supply-driven organizational development can work under certain circumstances. * The supply-driven approach to organizational development on the FILMUP was a conventional one whose results have often been disappointing on Bank projects in the past. Its characteristics usually include an emphasis on the supply of equipment:, training and civil works, a vague strategy of organizational change and few demand pressures from customers or citizens. And yet the FILMUP, using this approach, made a significant contribution toward strengthening a number of the implementing organizations especially on the financial side. Why did this approach work in this case when it has failed so often before? * The answer appears to come out of the context of Tanzanian commitment described above. Too many supply-driven approaches are expected, by themselves, to create and induce a dynamic for organizational change. In the FILMUP's case, many of the participating organizations by the early 1 990s had already begun to generate their own internal momentum. They were responding to, and contributing to, a drive for modernization that had Tanzanian roots. This dynamic which was independent of the work of the FILMUP, provided the energized process into which the FILMUP resources could. be fitted. In this scenario, injections of resources such as buildings, computers, short-term training courses and vehicles accelerated but did not create or control the process of organization change. Simply put, supply-driven approaches to organizational and institutional development can work when they are a key missing link. But they cannot supply the energy, direction and incentives that the overall process of change requires. Implementation and strategy formulation have a complex set of interrelationships that go far beyond the sequential 'plan then implement' approach on many programs and projects. * The progress of FILMUP provides useful insights into the process of pro ject planning under conditions of uncertainty and unfamiliarity combined with urgent needs in. a new sector. The experience in the legal sector is particularly relevant. During the discussions around the SAR in 1992, the Government and the Bank considered the conventional relationship of strategic formulation and implementation--that is, an initial exercise in up-front analysis and policy work followed by a longer period of program implementation. The FILMUP, mainly at the urging of the Government, reversed this approach. Implementing organizations were given quick access to resources in the form of training and equipment in an effort to help them function and to encourage their collaboration. This 'piece-meal' to project implementation came first. Sorting out the bigger strategic issues at an appropriate pace and style for the country was seen as a much longer-term effort at organizational and even societal leaming that needed to be carried out and owned by Tanzanian participants. Analysis had to be combined with consensus building, complex learning and legitimization. Including the work of the Legal Sector Reform Task Force (1 993 -1995), senior official and Cabinet deliberations  20 (1995 and 1996) and the reformulations of the initial strategy (1997-1999) in the form of a new Medium Term Strategy and Action Plan 2000-2005, the process took about six years and is still ongoing. Senior Tanzanian officials consider the investment in time and learning to have been worth while in terms of building support for legal reform over the longer term. On the finance side, the policy studies in the late 1990s focused on issues that had arisen from or been unresolved by the previous six years of implementation and were useful to formulate a cohesive strategy for the further development of the accounting and auditing profession. More deliberate efforts must be made at the appraisal stage to build project implementation capacity. * The pace of implementation of FILMUP proceeded slowly during the first three of its scheduled five-year life. At certain times during 1992-1995, work ground to a halt particularly on procurement. The Government and the Bank need to find ways to cut dow~'n on such delays in the first two or three years of programs. Separate implementation units are no longer an option. The FILMUP experience thus points to the need for both the Governnent and the Bank to spend much more deliberate effort before, during and immediately after appraisal, building the implementation capacity of the structures both within and between the implementing organizations. In the FILMUP's case, the project coordinators did attend a course on procurement at the East and Southern Africa Management Institute (ESAMI) in Arusha. A project launch workshop was held in late 1992. Both of these preparatory activities were necessary but not close to being sufficient. The level of effort to be required from the coordination offices was also grossly underestimated at appraisal. Most of the implementing organizations did not have a clear sense of the amount of work involved or their own role in carrying it out. Some of the implementing organizations, particularly on the legal side, were only marginally involved during appraisal. The respective roles of the organizational focal points, the various boards of directors and the project coordinators were not widely understood. Project coordinators needed more training on subjects such as proposal writing, project procurement management and consultant management. They needed more familiarity with the unique constraints of procuring and contracting suppliers for civil works and computers. And they needed more capacity to deal with the varied procedures of as many as eight funding organizations, most of whom expected the project coordinators to manage contractors and suppliers on their behalf. The need for more systematic effort would appear to apply particularly to inexperienced organizations in new sectors trying to deal with administratively-intensive activities such the procurement of goods and services. The presence of greater Bank support for procurement and financial management out of the decentralized Country Office should also help improve the pace of implementation.  21 9. Partner Comments (a) Borrower/implementing agency: * The GOT has provided two comprehensive reports on both the financial and legal components of the FILMUP. The full report is in the files and Annex 8 provides a summary of the report. Main comments are as follows: * The detailed procedures of the World Bank were new to all the implementing organizations and the two coordination offices. This lack of experience was the major reason for the delays and slow implementation of the FILMUP in the first two years. After 1995, the procedures and regulations of the World Bank became more familiar leading to accelerating implementation. Better preparation, especially on the procurement side, would have been useful. * Flexibility, both on the part of the Borrower and the Bank, was crucial for effective project implementation. For example, activities budgeted for in a particular year were allowed to be carried forward to the next year. * Constructive supervision by the Bank helped the GOT to coordinate the funding from other donors, focus attention on key issues and support those officials within the GOT pushing for faster action and implementation. Effective supervision can be a part of an effective Borrower-Bank partnership. - Some sort of quality control mechanism should be established on the supply of funds and consultancy services that are provided by a wide range of different funding organizations. From time to time, the FILMUP had to coordinate the inputs of up to eight different donors. - To be effective, the implementation of a training program should be preceded by some sort of needs assessment. Attention also needs to be paid to the incentive system, especially salaries, that governs eventual job performance and staff retention. (b) Cofinanciers: no comments (c) Other partners (NGOs/private sector): no comments 10. Additional Information none  22 Annex 1. Key Performance Indicators/Log Frame Matrix Outcome/Impact Indicators Office of the Controller & Auditor General: 60% of the transactions and accounting increased number of audit reports processed; records of the OCAG are now processed on quality audits for individual ministries. computers. Annual audit reports are now current. NBAA: increased number of students Pass rates, in fact, did increase in the period passing; introduction of quality reviews; 1992-2000 with success rates of CPA accounting and auditing standards and students at professional levels III and IV guidelines issued; study manuals published; rising from less than 20% in both categories financial viability and cost recovery measures in 1992 to 26% and 28% respectively in put in place. 1999. By the end of the project, the NBAA has issued 21 new accounting standards and 16 new audit standards. It had also reduced its dependence on government budgetary support from 52% in 1991 to 21 % in 1999. Its objective now is to be self financing by 2005. IAA: increased number of accountants Due mainly to declining student awards from trained; increased pass rates in NBAA the public sector, the IAA only managed to examinations; financial viability and cost maintain its production of trained accountants recovery measures implemented. but it did maintain its leading position in Tanzania in the NBAA pass rates. It also lowered its dependence on government fanding from about 100% in 1992 to 67% in the mid 1990s to 40% by the end of 1999. IFM: increased number of accountants Student intake at the IFM rose from 455 in trained; increased pass rates (both NBAA and 1992/93 to 805 in 1998/99. Its overall student internal examinations); financial viability and pass rate including those at the diploma level cost recovery measures put in place. rose to about 75% in 1999 from 68% in 1994. Its level of subsidy from the government fell from about 40% in the mid 1990s to 30% by June 2000. Legal sector study: recommendations of the The government has now issued its medium study translated into an action plan and term strategy and action plan 2000/05 for the donors willing to support implementation. legal sector and has discussed it with the donor community in a workshop in December 1999. A donor group has been formed to review quick interventions which could be taken in support of this plan.  23 Output Indicators: Inoaicator/Matrix Projtd in last SR lf | A 4itaLumatet EstimateF7 Not applicable I~ 1/ End of project The SAR did not define specific indicators of performance  24 Annex 2. Project Costs and Financing Project Costs by Procurement Arrangements (Appraisal Estimate) (US$ million equivalent) Category __ NCB Other2 Nl , X: . Total cost 1. Works 6.85 - 6.85 (5.95) - - - (5.95) 2. Goods 5.50 0.64 0.30 - 6.44 (5.25) (0.58) (0.27) - (6.10) 3. Services 7.55 0.22 7.77 (7.55) - (7.55) 4. Miscellaneous 0.40 1.12 1.52 - - (0.40) - (0.40) Total 12.35 0.64 8.25 1.34 22.58 (11.20) (0.58) (8.22) (20.00)  25 Annex 3. Economic Costs and Benefits (not applicable)  26 Annex 4. Bank Inputs (a) Missions: Implementation Development Month/Year Count Specialty Progress Objective Identification/Preparation Nov. 1991 1 Team Leader/Financial Analyst 1 Lawyer 1 Consultant Appraisal/Negotiation Mar. 1992 1 Team Leader/Financial Analyst 1 Lawyer 1 Architect/Procurement Specialist 1 Consultant Supervision Oct. 1992 1 Architech/Pro/Specialist HS HS 1 Lawyer 1 Financial Analyst Feb. 1993 1 Lawyer HS HS 2 Financial Analyst Nov. 1993 1 Lawyer HS S 2 Financial Analyst Jul. 1994 1 Lawyer S HS May 1995 1 Task Manager S S 1 Lawyer Oct. 1995 1 Task Manager S S 1 Lawyer 1 Economist 1 CB Specialist Feb. 1996 1 Task Manager S S 1 Lawyer 1 Economist 1 CB Specialist Dec. 1996 1 Task Manager S S 1 Lawyer 1 Financial Analyst Jun. 1997 ' 1 Task Manager S S Feb. 1998 1 Task Manager S S  27 _1 Operations Officer __I Stage of Pr*Ject Cycle Performance lating Implemerntation Development Month/Year Count Specialty Progress Objective Supervision (continued) June 1998 1 Task Manager S S 1 Lawyer Jan. 1999 1 Task Manager S S Jun. 1999 1 Task Manager S S I Lawyer 1 Operations Officer Oct. 1999 1 Task Manager S S 1 Financial Analyst 1 Procurement Analyst Mar. 2000 1 Task Manager S S 1 Financial Specialist 1 Procurement Analyst _ ICR Oct. 2000 1 Task Team Leader 1 Financial Specialist 1 Consultant (b) Staff: ;tage of--rojec Cycle Actual/Latest Estimate No. Staff weeks US$ (,000) Identification/Preparation 27.5 86,000 Appraisal/Negotiation 19.1 56,000 Supervision 116.1 498,700 ICR 10 40,000 Total 127.5 680,700  28 Annex 5. Ratings for Achievement of Objectives/Outputs of Components (H=High, SU=Substantial, M=Modest, N=Negligible, NA=Not Applicable) Rating Macro policies NA Sector policies H Physical SU Financial SU Institutional Development SU Environmental NA Social Poverty Reduction NA Gender M Other (Please specify) NA Private sector development SU Public sector development SU Other (Please specify) NA  29 Annex 6. Ratings of Bank and Borrower Performance (HS=Highly Satisfactory, S=Satisfactory, U=Unsatisfactory, HU=Highly Unsatisfactory) 6.1 Bank performance Rating Lending S Supervision HS Overall S 6.2 Borrower Performance Rating Preparation S Government implementation performance HS Implementation agency performance S Overall S  30 Annex 7. List of Supporting Documents Government of Tanzania * Financial Component, Implementation Completion Report * Legal Component, Implementation Completion Report * United Republic of Tanzania, FILMUP Project, Report on the Workshop to Review Seven Studies on Strengthening The Finance, Accounting and Auditing Functions in Tanzania, Final report March 14, 2000 * Office of the Auditor General and Controller General, Institutional Framework for Financial Management, undated * Office of the Auditor General and Controller General, Independence, government, accountability and the prevention of corruption, Identification Study, Draft Final Report, prepared by the Swedish National Audit Office, July 19, 1999 * Office of the Controller and Auditor General, Project Design Consultancy, Preliminary Report, October 1997 * Submission by OCAG, NBAA, IFM, IAA, Proposal on Tanzania Financial Management Upgrading (TAFIMU) Project, March 2000 * Legal Sector Component: Project Completion Report Input, FILMUP, submitted by Ministry of Justice and Constitutional Affairs, August 2000 * Financial Component, Implementation Completion Report, submitted by Institutional Steering Committee, FILMUP Project, August 2000ement, * Speech on Vision and Strategy for the Legal Sector Reform Programme, given by Hon. Andrew Chenge, The Attorney General, August 26, 1999 * Public Financial Management Reform, The Strategic Way Forward, technical discussion note prepared by K. Kiragu, November 1997 World Bank * Falconer, Brian, Tanzania Financial and Legal Upgrading Project, What Progress in Accounting and Auditing in Tanzania? internal memo dated May 7, 2000 * World Bank, Staff Appraisal Report, Tanzania: Financial and Legal Management Upgrading (Filmup) Project, June 1, 1992  31 * Capacity Building for Leadership, Management and Coordination of Legal Sector Reform, Request for IDF Financing, undated * Tanzania: Assessment of the Capacity Building Impact of the World Bank P'ortfolio * Aide-Memoire: Supervision Mission on the FILMUP Project February 2-13, 1998 * Supervision Mission May 23-June 3, 1998, Aide Memoire, dated June 3, 1998 * Supervision Mission May 24-June 10, 1999 * Supervision Mission and Aide Memoire, February 12, 1998 * Back to Office Report, March 3, 1998 * Supervision Mission and Aide Memoire, June 3, 1998, * Pre-Appraisal Mission Aide-Memoire, May 24-June4, 1999, dated June 4, 1999 * Tanzania: FILMUP Back to Office Report Supervision, dated December 16 , 1999 * Tanzania: Transparency and Accountability Mission Back-to-Office Report, dated December 1, 1999 FILMUP Documents * FILMUP Project, NBAA Technical Study of NBAA Work Methods and Computerization, Inception Report, November 1999 * The status of accounting and auditing functions in Tanzania and harmonization with international and regional standards, October 1999 * Financial Management Component Report, May 1, 1998-September 30, 1998 * Transtec, Tanzania Financial and Legal Management Upgrading (FILMUP) Project: Project Implementation Progress Mid-Term Review, Final Report, October 1995 * Miscellaneous documents * Shitundu, J.L.M., Mhamba, R.M., Mpuya, J., Ministry of Justice and Constitutional Affairs: Public Expenditure Review, 2000. Final Report, April 2000  32 Annex 8. Borrower's Contribution to the ICR Two comprehensive reports (financial and legal components) were prepared by the Government. Details on the activities and outputs presented below can be found in these reports. Financial Component: Introduction. The project had two components, the sector and the financial sector components. Below are the main issues from the accounting and auditing perspective: a) Identification of the proper role of the National Board of Accountants and Auditors (NBAA) particularly with regard to its training of candidates for its own examinations, and its relation with the Tanzania Association of Accountants (TAA); b) How best to increase the number of qualified accountants in the country; c) The extent to which staff shortages in the public sector are more the result of poor remuneration than of the inadequate numbers of accountants in the economy as a whole; d) The need for NBAA to rapidly issue accounting and auditing standards conforming to international standards; e) NBAA' s capacity to enforce the standards it issues; f) The development of appropriate continuing professional education (CPE) programs for practicing accountants and auditors; g) The desirability of introducing a special accountancy syllabus and qualification for practicing accountants; and h) Other measures for strengthening NBAA and improving effectiveness. Objectives of FILMUP Financial Component. The FILMUP project was established to overcome weakness revealed in previous studies made on the financial and legal sectors and the need to address the issues pointed out in those studies. The objective for establishing this project was to improve accountability and promote better governance in the public sector and strengthen the legal and regulatory framework and administration of justice by: * Strengthening key institutions involved in both activities through improvement in their human and material resources. It was thought that it could be achieved by: (i) Enhancing the skills of the institutes' lecturers through training; (ii) Attract suitably qualified and experience lecturers and retain them; (iii) Improve the library facilities; (iv) Complete administrative and training buildings; (v) Acquire up to date office and training equipment in order to adopt more modern ways of delivering services. * Undertake other studies designed to prepare strategy for improving cost recovery, and increase competition and efficiency in the audit of public sector.  33 Implementation Results. Following are the achievements obtained from the FILMUP for the financial component: Civil Works at NBAA, IFM and IAA. The NBAA built the Mhasibu House Complex to provide office accommodation, educational class rooms, library, function hlall and cafeteria services. Funds were also used to procure one standby power generator, a bcre hole and minor repairs for the complex. These facilities enabled the NBAA to provide better service to students, hold major meetings and earn revenue through rentals. The IFM civil works were comprised of the rehabilitation of existing buildings including installation of new modelrn lift in the IFM administration block, rehabilitation of central cooling system in the function hall and conference room, and installation of five underground water supply tanks. Funds were also used to supply one standby power generator to IFM. The IAA used FILMUP funds to complete its administrative block, fund the construction of the cafeteria/recreational complex, purchase a power generator and bore hole and complete minor civil works to existing buildings. Many of the same benefits-- better service, organizational pride and rental income- were replicated in the IAA case. Office Equipment, Furniture and Motor Vehicles. The FILMUP pro-vided a range of equipment including modern computers, modern printers, UPS, computer software, photocopiers, typewriters, fax machines, TVs, overhead projectors, telephone switchboards, heaters and air conditioners. These additions enabled the implementing organizations to computerize a good part of their operations including the NBAA database fer its members and students records, most of the accounting and reporting systems. The vehicles were used for outreach particularly by the OCAG and the NBAA. Training. The FILMUP provided training for both long and short-termn in the field of management, economics, taxation, accounting, financial management, andi computing. The training was obtained from within the African region and also from outside ihe African region. FILMUP also provided professional training in specialized studies such as CPA, computing, librarian courses and other academic qualifications leading to advanced diploma, post graduate diplomas, and masters degree. The training also enabled IFM and the IAA to introduce a series of computer courses. Technical Assistance. The absence of staff away on long-term training necessitated the engagement of technical experts to perform their duties. Five consultants were engaged two for IFM and three for IAA, where they imparted appropriate skills to the institutions for example on areas of research and consultancy and on writing reading materials. Studies. A series of eight studies were carried out to identify problems and cleficiencies in the previous operating systems and identification of solutions for better business performance among the implementing organizations. These included the following: * Cost recovery * Effectiveness of NBAA Graduates by PWC Tanzania * The status of the Accounting and Auditing Function in Tanzania by ACCA  34 * The Introduction of Audit Quality Review by ICAS * NBAA Examination System by ICAS * NBAA's work methods and computerization by PWC Tanzania * Issuance of Accounting and Auditing Standards by CORE Securities * Effectiveness of the Office of the Controller and Auditor General by the Swedish National Audit Also consultancies for training the academic staffs to IAA and IFM on research and consultancy skills were done. Library Books And Equipment. Books and reading materials amounting to 9,338 volumes in the field of accounting, finance, taxation, auditing, social security, computing and English literature were purchased. KEY LESSONS LEARNT: The detailed procedures of the World Bank were very new to the implementing organizations and to the coordination office. This situation was the major reason for the delays and slow implementation of the project in the first two years. Afterwards, the procedures and regulations of the World Bank became familiar to the coordination office as well as to the four organizations. Operations became smoother than at the beginning. The implementing organizations have assessed the implementation of the project as satisfactory. The coordination office located in Dar es Salaam under the Inter-Institutional Steering Committee played a big role in managing the project activities and in decision-making. Legal Sector Component: Introduction. The immediate beneficiaries of the Legal Sector Component (LSC) were the Office of the Attorney General (AGO), the Judiciary, the Law Reform Commission and the Registrar of Companies now the Business Registration and Licensing Authority (BRELA). The overall supervision and monitoring of the implementation of the Project Activities was vested in the Legal Sector Component Committee (LSCC). Implementation Experience and Results. Project objectives for the LSC were largely achieved and project outcomes were generally realized. Although the project objectives were achieved through improvement of human and material resources of the key Legal Sector Institutions, the impact cannot be measured since the support was limited pending the outcome of a major sector study. The second objective has enabled the Government to develop the Legal Sector Reform Programme Medium Term Strategy and Action Plan 2000-2005 and undertake a public expenditure review with a view to enhance resources to the Public Legal Sector Institutions. The implementation experiences and results may be summarized as here below: Development of a long-term strategy and Action Plan. A legal sector study designed to develop a sector strategy divided into eleven sub-studies was undertaken from July 1993 to February 1996. The study was managed by a Legal Task Force (LTF) chaired by Mr. Mark  35 Bomani, former Attorney General of the Government of the United Republic of Tanzania. A team of law researchers assisted the LTF and the Project Co-ordination Office provided financial and administrative support. The Study reviewed the entire legal sector institutions and agencies, identified the major problems, and estimated costs and action plans for implementation of strengthening measures. The LTF prepared a comprehensive report on eleven sub-studies and submitted to the Government in February 1996. The Government having considered and approved the LTF recommendations designed a ten years Programme for refo:rm of the sector at an estimated cost of US$ 204 million. The Programme was presented to donors in October 1997. However due to the magnitude of the items and costs involved, the Government was required to priorities the programme activities and to develop a strategy for implementation. The Government therefore prepared Legal Sector Reform Programme Medium T'erm Strategy and Action Plan, 2000-2005 at an estimated cost of US$ 44.5 million. The Medium Term Strategy and Action Plan was presented at a programme Launch and Donors Meeting on 8th December 1999. The Medium Term Strategy received a good support from the Donor Co:nmunity therefore is to be funded by the World Bank and a consortium of Donors. Strengthening the Key Legal Sector Institutions. The key legal sector institutions strengthened by the project are the Office of the Attorney General, Judiciary, the Office of the Registrar of Companies and the Law Reform Commission of Tanzania. The inputs were reviewed from time to time to ensure that they were effective and matched with technological development. Most input related to vehicles and office equipment; training and Law Library materials. The support provided to these offices was restricted merely to the headquarters and not to upcountry stations of these offices, thus an impact assessment on these institutions cannot be made. However, strengthening of key institutions was made as follows: a) Vehicles and Equipment: There were only three vehicles procured for the Legal Sector one vehicle for the Co-ordination Office, One for the training department of the Judiciary and one for the office of the Chairman, Legal Task Force. The equipment procured is 4 faxes, 8 photocopiers, 360 manual typewriters, 50 electronic typewriters and 50 personal computers and related accessories. The procurement of the equipment was delayed to fragmented and unclear terms of the Central Tender Board. It was also planned to establish a modern Management Information System for the sector institutions. After analyzing the quantity of the equipment required and the quality of information system available it was found out that more resources were required than earlier anticipated. Thus it became necessary to procure the basic office equipment pending the outcome of the Legal Sector Study. b) Training: Most of the LSC funds were invested in training activities due to the inadequacy of skills throughout the sector, especially in areas such as commercial and company law and post- qualification training facilities. Training has generally been implemented on schedule. The training initially designed under the project could not be implemented as designed since the estimation of cost was not properly done and some of the training was no longer relevant. Most of the personnel were trained individually and in group training abroad or local as appropriate. The training was done at least once for each group and there has not been a continuation on the training although the trainees would appreciate to have a follow up training organized at least once a year so as to provide forums for exchanging working experiences. Although the training objectives under the project were achieved and its impact  36 was satisfactory, the sector lacks adequate resources for sustainability of the continuity of the vocational training that would cover all the personnel. It is expected that in future the Legal Sector Reform that proper and sustainable training programmes are designed and implemented, including identification of adequate or reliable post- qualification training facilities. c) Equipment and publications for Law Libraries: The Law Libraries provided with these inputs were the Attorney General's Chambers and the High Court libraries in Dar es Salaam. The needs identified were law reference materials, law textbooks, periodicals, various Library equipment and furniture. Although, the Libraries have now been updated, no qualified personnel have been recruited to man the libraries. The management of the Library services is therefore not satisfactory for the users. This is also not good for the library assets, as these require intensive and continuous proper updating and recording system. d) Printing of Various Forms and Certif cates for the Administrator General's Office: The registration forms and certificates detailed in the comprehensive report were printed in July 1995 to August 1996. These materials were issued to the office of the Administrator General to alleviate the shortage of registration materials. In order to ensure sustainability of the availability of the printing materials, Government of Tanzania agreed to provide US$ 300,000 annually and allow the department to charge realistic fees for its services. The amount was accordingly provided in 1993/94 but in the subsequent years due to change in the Government policy on the service providing departments, the department was allowed to utilize its revenue collection for its other charges and development expenditures. Updating & Publication of Revised Laws and Case Law Reports. This included the revision and publication of the revised laws and publication and printing of Case Law Reports. The following was accomplished: a) Revision and Publication of Revised Laws: A Law Revision Programme funded by the Government of Sweden through the Swedish International Development Agency (Sida) commenced in January 1993. The objective of the Programme was (i) capacity building in modem law revision techniques at the department of the Chief Parliamentary Draftsman (ii) update the Revised Edition of the Tanzania Laws from 1965 and (iii) sustain the continuous updating of the Revised Edition of Tanzania Laws. At the project identification stage the Word Bank was to fund the publication costs and the compilation costs were to be met by Sida. After the second consultancy Sida agreed to finance the publication costs only for the volumes to be used by the Government. The tendering process started in 1998 but was finalized in 1999. The bid specified for publishing 600 sets of 21-28 volumes in printed and electronic format in 20CD ROMs for the Government. The sets to be sold elsewhere were to be distributed by the publisher and the publisher will be required to remit royalties to the Government. It is expected that the publication and printing of the Revised Laws 1999 Edition will be finalized in June 2001. The objective of capacity building in the CPD's department was satisfactorily achieved notwithstanding lack of adequate personnel in the department. This occasioned delay in the completion of the law Revision Work since there were no arrangements of filling the gaps of the personnel whom were required to undertake the work under the programme.  37 b) Publication and Printing of Case Law Reports of the High Court and the Court of Appeal of Tanzania: The Case Law Reports of the High Court and the Court of Appeal of Tanzania is known as the Tanzania Law Reports (TLR). The Law Reports for the 19'33 - 1992 printed in electronic format (CR-ROM) and in printed format. Initially it was targeted to print only 4000 sets for 1983-1992, but due to saving from the publication of revised laws, it was agreed to extend the contract to include printing 500 sets and of 10 CD-ROMIs for the 1993 - 1997. It was expected that continuous updating of the TLR from 1998 be undertaken by the Tanzania Law Reports Board (TLRB). Review of Laws Relevant to the private Sector Development, the Parastatal Reform Programme and Privatisation. The Contract for the review of Commercial and Related Laws including Laws that have impact on Privatisation was awarded in July 1993 and completed in 1994. The main objective of the consultancy was to provide advice on modalities on how the Commercial and related Laws of Tanzania could be aligned with the microeconomic and social policy changes/developments in the country. The Laws Reviewed included Labour Law, Companies Ordinance, Banking Law, Insurance Law, Parastatal Corporations Act, 1969, Land Law, Arbitration Ordinance and the Bankruptcy Ordinance. Following the report of the consultant on each piece of legislation the Government has so far been able to amend Banking and Insurance Laws, Parastatal Corporations Act, 1969 and the land Law. At ihe same time, the Government established Capital Markets Authority, Stock Exchange, Presidential Parastatal Reform Commission, Private banks and Private Insurance Companies. This also enabled the Government to review the Companies Ordinance. The draft bill was completed in April 2000 and is now waiting to be submitted to the Cabinet for Approval. The laws that have not been revised are the Labour Law, Arbitration Ordinance and Bankruptcy Ordinance. The Arbitration and Bankruptcy Ordinance is now expected to be reviewed under the Public Sector and Privatisation Programme being co-ordinated by the Presidential Parastatal Reform Commission. Technical Assistance. The Technical Consultancy procured included the Procurement Advice on Law Library Equipment and Materials, Review of Commercial Laws (explained above), Assistance to the Legal Task Force on compilation of a comprehensive summary on the Legal Sector sub-studies, Assistance to the Working Group on Legal Sector Programme Priorities, Assistance to the stakeholder participation in designing of the Medium Term Strategy and Action Plan 2000-2005, and continuous advice on the follow up steps from the Donors conference held in Dec. 1999. Establishment of a Legal Component Co-ordinators Office Located in the Attorney General's Chambers. The establishment of the Legal Component Co-ordinator Office was made in 1 October 1992 following the appointment of the Project C'o-ordinator. The Organizational Structure provided for recruitment of a project Co-ordinator, an administrative assistant and a driver-cum-messenger. The workload of the co-ordination office varied from the originally planned workload under the project due to the various donors participating in some of the activities in the Sector. These increased the workload since the various donors had different financing requirements and conditions. It is important that, where a donor supports a programme running for a period of not less than one year, they should establish their own office for managing tasks associated with the project or agree to provide additional funding for expansion  38 of existing co-ordination office. This was contributed by the fact that, at the project identification the volume of work at the project co-ordination was underestimated and hence the resource allocation as well. It was not possible to recruit an assistant to the project co-ordinator with the World Bank funds since the other donors did not provide for such funds. The legal Sector Component Committee chaired by the Deputy Attorney General/Permanent Secretary supervised the Co-ordination Office. The Committee at times could not meet as required since the members of the Committee were the heads or the accounting officers of the various beneficiaries who were occasionally busy with their substantive work. This hampered the effectiveness of the Committee in discharging its obligations under the Programme. SUMMARY OF KEY LESSONS LEARNT: * The Government is generally satisfied with the performance of the legal Sector Component in achieving the two project objectives of improving legal and regulatory framework and administration of justice through strengthening of institutions and undertaking a legal study. The Study on the legal institutions with an objective of examining and making of recommendations of appropriate improvement measures of improving the status of the legal sector institutions and of improving the status of the legal sector institutions and services was designed to assist the Government to design a long term strategy on the improvement of the sector. All the activities undertaken made a major contribution in achieving the project objectives. Problems like delays in the starting, were mainly found in incorporating the Project within the National Budget, differences in the IDA and Government procurement procedures and lack of timely funding by various donors who had agreed to finance the legal sector study, were unanticipated factors at the design of the project. * The design stage of the project is critical for the implementing Ministry together with the care ministries such as the Ministry of Finance and the Planning Commission to ensure that the preliminary procedures are finalized before the beginning of the implementation process. The Ministry of Justice and Constitutional Affairs should take a key role at the designing stage of the FILMUP legal sector and thereafter take a central role in monitoring the process. Some key issues that could have been anticipated at the designing stage could have been addressed such as continuation of some activities which were undertaken by FILMUP legal sector, mobilization of funds to meet shortfall of funding especially where donor funds are inadequate or unavailable. * A major contributing factor to the success of the project was a result of the commitment of and professional guidance rendered to the Management team by the World Bank staff. Several World Bank review missions to monitor the component progress were made. The World Bank further played a key role in guiding the Government on how to co-ordinate funding from other donors for financing the Law Revision Programme, the Legal Sector Study (11 sub-studies) and legal Sector Reform Programme, Medium Term Strategy and Action Plan 2000-2005. The relationship between the Government, World Bank and other Donors was properly managed and co-ordinated with central objective of reforming the Legal Sector. All in all, the project would not have been able to achieve its objective and completed its activities without the professional support and guidance of the World Bank management Team.  39 * The Local Project Management team executed its responsibility with maximum competence and professionalism. The major handicap was the low support from Legal Sector Component Committee, could not secure adequate representation and commitment. This was due to the fact that, the Committee was composed of heads of the beneficiaries of the Legal Sector Component, who occasionally were committed with their official duties, thus it was not easy for them to actively monitor progress, provide effective guidance and feedback. However, the project management team received guidance and feedback most of the time from the Deputy Attorney General/Permanent Secretary and in some cases, from the Hon. Attorney General. These high officials enabled the project component to meet its objectives. * The location of FILMUP Legal Sector was within the Ministry of Justice and Constitutional Affairs. The premise at the Ministry was too limited such that the office of a Project allocated only one room thus making the premise too small for project activities. This caused the project to incur costs of holding meetings elsewhere even for small groups of five people. However, a strong managerial guidance system on the part of the Ministry of Justice assisted in addressing some of the implementation problems. * The experience gained by the local management team is an asset for future legal upgrading programmes. The Ministry of Justice & Constitutional Affairs will in fuil:ure draw upon this expertise in its Legal Sector Reform Programme and especially in the Legal Sector Medium Term Strategy and Action Plan 2000-2005. CONCLUSION The overall assessment of the impact of FILMUP project to the beneficiary institutions of the financial component indicates that it has realized its objectives to a large zxtent. NBAA and IAA have achieved a lot in terms of building for office accommodation. All the beneficiary institutions have managed to improve their staff skills through training under FILMUP, and for the case of training institutions the quality of training has improved and lecturers are highly motivated as they are working under more conducive working environments.