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Support for Fiscal Transparency and Accountability (S-FTA)

PN10125 | Project Completion Report Review Note | 20-May-2007

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3) That it is not realistic to stipulate 22 condition precedent to be met within a short timeframe between the initial and last disbursement; that cascading of conditions renders prompt fulfillment of conditions difficult because if one condition remains unmet other reliant conditions cannot similarly be met

4) That conditions that fall outside the realm of the Government, such as the legislature, result in delays in the fulfillment of conditions that call for parliamentary action

5) The Bank should rethink the funding structure where institutional support/grants are paired with policy support loans in programmes. The S-FTA is a classic case which shows how timely interventions on the policy side (highly rated in this PCR) can be undermined by poor performance of the institutional support component. In this case, the domestic debt management and reforms in ZNTB were the main weaknesses of the programme

6) Individual conditions should be sufficiently thought through during appraisal. Some S-FTA conditions were cascaded so that if one failed, the others contingent on it failed as well. Revision of the ZNTB Act as a condition arrested the fulfillment of almost all other conditions in the institution, such as the setup of the Advisory Council, the Strategic Plan and the preparation of procedural manuals. The concepts and definitions of domestic debt and the structure of the databases flowing from the component provide another illustration

7) A cluster of lessons learned relate to the project cycle. On appraisal, it is important to identify and test conditions/outputs that the Government can fulfill and conditions/outputs that are in the competence of other major arms of government like parliament. In S-FTA, the GOZ alone could not deliver legislation relating to the revised law on ZNTB or the constitutional change needed to give autonomy to the OAG. The same comments then applied to loan signature and fulfilment of loan conditions. The above oversights, together with the financing gap were at the root of the implementation delays and problems of S-FTA. In respect of procurement, accounting and audits, the outcome suggests that they should be installed early in the implementation of programs/projects in order to take timely action on issues raised. The program was audited late, the problems discovered late and the Bank’s recently released Second Tranche could go un-audited after the project is completed in less than one month after preparation of the PCR

8) In the delivery of consultancy services planned in Appraisal Reports of programmes, the Bank should take a keen interest in the delivered outputs. During programme implementation, Governments may not be technically equipped to vet the services they receive under consultancies though mandated by the Bank Group in Appraisal Reports. This fate befell the outputs under the domestic debt management consultancy in S-FTA



Summary Report PN10125_SR_EN PN10125_SR_EN.pdf