Document of

The World Bank

FOR OFFICIAL USE ONLY

Report No: 80224-GM

INTERNATIONAL DEVELOPMENT ASSOCIATION

PROJECT PAPER

ON A PROPOSED ADDITIONAL GRANT

IN THE AMOUNT OF SDR 3.4 MILLION (US$5 MILLION EQUIVALENT)

AND RESTUCTURING

TO THE

THE REPUBLIC OF THE GAMBIA

FOR THE

INTEGRATED FINANCIAL MANAGEMENT AND

INFORMATION SYSTEM PROJECT

August 26, 2013

Poverty Reduction and Economic Management 4 Country Department AFCF1 Africa Region

This document is being made publicly available prior to Board consideration. This does not imply a presumed outcome. This document may be updated following Board consideration and the updated document will be made publicly available in accordance with the Bank’s policy on Access to Information.

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CURRENCY EQUIVALENTS

(Exchange Rate Effective as of July 31, 2013)

Currency Unit = Dalasi US$1.00 = 37.02GMD US$1.00 = 0.66 SDR

FISCAL YEAR

January 1 – December 31

ABBREVIATIONS AND ACRONYMS

AF Additional Financing AfDB African Development Bank

APRC Alliance for Patriotic Reorientation and Construction BADEA Arab Fund for Economic Development In Africa

BANDES Economic and Social Development Bank of Venezuela CBG Central Bank of Gambia CFAA Country Financial Accountability Assessment

DF Donor Funds DNT Directorate of National Treasury DPO Development Policy Operation

EBID ECOWAS Bank for Investment and Development EC European Commission ECOWAS Economic Community of West African States EGRG Economic Governance Reform Grant

ERMS Electronic Record Management System EU European Union EUEI-PDF European Union Energy Initiatives: Partnership Dialogue Facility EXIM Export-Import FA Financing Agreement FM Financial Management GBoS The Gambia Bureau of Statistics GDP Gross Domestic Product

GL General Ledger GoTG Government of The Gambia

GRA Gambian Revenue Authority GTL Greater Than Leadership HIPC/MDRI Heavily Indebted Poor Countries/ Multilateral Debt Relief Initiative HIV/AIDS Human Immunodeficiency Virus infection / Acquired Immuno Deficiency Syndrome HR Human Resources

HRMIS Implementation of Human Resources Management Information System IA Implementing Agency

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IBRD International Bank for Reconstruction and Development ICT Information Communication Technology

IDA International Development Association IDB Islamic Development Bank IFMIS Integrated Financial Management Information System

IFMIS AF Integrated Financial Management Information System Additional Financing IFRS International Financial Reporting Standards IMF International Monetary Fund

IRENA International Renewable Energy Agency ISA International Standards on Auditing ISEFG Institutional Support for Economic and Financial Governance JPS Joint Partnership Strategy

MoF Ministry of Finance NAO National Audit Office MoFEA Ministry of Finance and Economic Affairs

NAS.DNA HITS NAS.NET/NAS.DNA Human Resources Management System NAWEC The National Water and Electricity Company

NEPCO National Electric Power Company NRS National Records Service OF Originally Finance OFID OPEC Fund for International Development PAD Project Appraisal Document PCU Project Coordination Unit PDO Project Development Objective PFM Public Financial Management

PIC Project Implementing Committee

PIM Project Implementation Manual PMO Personnel Management Office PP Project Paper

PSC Public Service Commission QCBS Quality and Cost Based Selection TA Technical Assistance TOR Terms of Reference TSA Treasury Single Account UNDP United Nations Development Program VAT Value Added Tax WB World Bank

Vice President: Makhtar Diop Country Director:

Sector Director: Vera Songwe

Marcelo Giugale Sector Manager: Miria Pigato

Task Team Leader: Annette De Kleine Feige

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THE GAMBIA

INTEGRATED FINANCIAL MANAGEMENT

AND INFORMATION SYSTEM PROJECT ADDITIONAL FINANCING

TABLE OF CONTENTS

ADDITIONAL FINANCING DATA SHEET ................................................................................................... IV

I. INTRODUCTION ................................................................................................................................ 1

II. BACKGROUND AND RATIONALE FOR ADDITIONAL FINANCING ...................................................... 1

III. PROPOSED CHANGES AND RESTRUCTURING ................................................................................... 8

IV. APPRAISAL SUMMARY ................................................................................................................... 14

Annexes:

Annex 1: Revised Results Framework and Monitoring Indicators ........................................................ 21

Annex 2: Results Framework and Monitoring ....................................................................................... 23

Annex 3: Operational Risk Assessment Framework (ORAF) and FM Arrangements .......................... 27

Annex 4: Detailed Description of Project Activities ............................................................................. 30

Annex 5: Revised Estimate of Project Costs ......................................................................................... 36

Annex 6: Revised Implementation Arrangements and Support ............................................................ 37

Annex 7: An Overview of IFMIS Implementation in The Gambia ....................................................... 47

Annex 8: IFMIS Implementation Strategy and Functional Coverage ................................................... 50

Annex 9: Transition plan for consultants and civil servants for IFMIS ................................................ 53

Annex 10: Bank Involvement and Partnerships in the Energy Sector ................................................... 60

Annex 11: Team Composition ............................................................................................................... 61

Annex 12: Country Map ........................................................................................................................ 62 

Tables:

Table 1: Project Outcome Indicators ..................................................................................................... 13 

Table 2: Project Costs by Component ................................................................................................... 13 

Table 3: Risk Ratings ............................................................................................................................ 20 

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THE GAMBIA INTEGRATED FINANCIAL MANAGEMENT

AND INFORMATION SYSTEM PROJECT ADDITIONAL FINANCING

ADDITIONAL FINANCING DATA SHEET

Basic Information - Additional Financing (AF) Country Director: Vera Songwe Sector Director: Marcelo Giugale Sector Manager/Director: Miria Pigato Team Leader: Annette De Kleine Feige Project ID: P132881 Expected Effectiveness Date: October 14, 2013 Lending Instrument: Specific Investment Financing Additional Financing Type:

Sectors: Central Government Administration (100%) Themes: Public Financial Management Environmental category: C Expected Closing Date: December 31, 2018 Expected Completion Date: June 30, 2018 Joint IFC: No Joint Level:

Basic Information - Original Project Project ID: P117275 Environmental category: C Project Name: Integrated Financial Management Information System Project

Expected Closing Date: December 31, 2013

Lending Instrument: Specific Investment Financing

Joint IFC: No Joint Level:

AF Project Financing Data [ ] Loan [ ] Credit [ X ] Grant [ ] Guarantee [ ] Other: Proposed terms: 5 years

AF Financing Plan (US$m) Source Total Amount (US $m)

Total Project Cost: US$5.0 million Cofinancing: 0 Borrower: 0 Total Bank Financing: IBRD IDA: US$5.0 million New Recommitted

5.0

Client Information Recipient: The Government of The Gambia Responsible Agency: Ministry of Finance and Economic Affairs (previously Ministry of Finance) Contact Person: Honorable Kebba Touray, Minister of Finance and Economic Affairs Telephone No.: +220 422-3301 Fax No.: Email:

AF Estimated Disbursements (Bank FY/US$m)

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FY FY14 FY15 FY16 FY17 FY18 Annual 2.157

2.223

0.433

0.090

0.097

Cumulative 2.157

4.380

4.813

4.903

5.000

Project Development Objective and Description

Original project development objective: To increase the Government of The Gambia’s capacity in public resource management.

Revised project development objective: No change

Project description:

Component 1 - Support for Integrated Financial Management Information System (IFMIS) Rollout, Interfaces and System Training: US$3.34 million

This component will finance the expansion of IFMIS capabilities and scope to improve core public resource management functions and strengthen institutional capacity in order to enhance overall public sector service delivery.

Components 2, 3 and 4 from the original Project are being completed by December 31, 2013. No activities under these components are being proposed with Additional Financing.

Component 5 - Project Implementation Support: US$0.46 million

This component will support the Project Coordination Unit for implementation of the project.

Component 6 - Support to National Statistical Capacity Building: US$0.7 million

This new component will support statistical capacity development for more reliable and timely macroeconomic reporting to help the Government monitor progress and improve macroeconomic-policy formulation for the achievement of growth and poverty reduction objectives.

Component 7 - Support for the Preparation of Energy Strategy Study: US$0.5 million

This new component will help the Government with the development of a national energy strategy -- including an action plan and an assessment of the public electric power utility’s finances and financial management system -- to help improve the public resources management and policy framework for the sector and the utility's financial management for improved service delivery, which in turn should support the achievement of growth and poverty reduction objectives.

Safeguard and Exception to Policies Safeguard policies triggered: Environmental Assessment (OP/BP 4.01) Natural Habitats (OP/BP 4.04) Forests (OP/BP 4.36) Pest Management (OP 4.09) Physical Cultural Resources (OP/BP 4.11) Indigenous Peoples (OP/BP 4.10) Involuntary Resettlement (OP/BP 4.12) Safety of Dams (OP/BP 4.37) Projects on International Waterways (OP/BP 7.50) Projects in Disputed Areas (OP/BP 7.60)

[ ] Yes [ X ] No [ ] Yes [ X ] No [ ] Yes [ X ] No [ ] Yes [ X ] No [ ] Yes [ X ] No [ ] Yes [ X ] No [ ] Yes [ X ] No [ ] Yes [ X ] No [ ] Yes [ X ] No [ ] Yes [ X ] No

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Does the project require any waivers of Bank policies? Have these been endorsed or approved by Bank management?

[ ] Yes [ X ] No [ ] Yes [ ] No

Conditions and Legal Covenants: Financing Agreement Reference Description of Condition/Covenant Date Due

Section V. Dated Covenant The Recipient shall by not later than three (3) months form the Effective Date complete the migration of IFMIS to the new web-based platform (Epicore 9.0.5).

Not later than three (3) months after the Effective Date

Section V. Dated Covenant The Recipient shall by not later than six (6) months after the Effective Date recruit in accordance with the provisions of Section III of this Schedule, the external auditors referred to Section II.B.3 of Schedule 2 of this Agreement.

Not later than six (6) months after the Effective Date

Section V. The Recipient shall not amend, extend, abrogate, repeal, suspend, waive, (including issuing any change order thereto) or otherwise fail to enforce, or permit to be amended, abrogated, repealed, suspended or waived, the IFMIS Phase III Contract, or any provision thereof without the prior written approval of the Association.

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I. INTRODUCTION

1. This Project Paper (PP) seeks the approval of the Executive Directors to provide Additional Financing in an amount of US$5 million to the Government of The Gambia for the Integrated Financial Management and Information System Project (P117275/RN 54293-GM). The proposed Additional Financing (AF) is an IDA Grant and entails two main measures; (i) the scaling up and expansion of scope of the project to include new components for greater development impact, and (ii) invoking the Country Financing Parameters for The Gambia by allowing for a disbursement percentage of 100% for financing of IDA’s share of expenditures for all project components and sub-components. The AF will cover the period of five years. This will extend the total age of the project to eight years.

2. This Project Paper also seeks approval for restructuring of the Original Financing (OF) Project. The proposed restructuring consists of: (i) expanding activities to new areas, (ii) amending and adding some of the result indicators and legal covenants, (iii) harmonization of the procurement guidelines, and (iv) the OF is amended to allow for a joint Implementation Completion Report (ICR), i.e., of a submission of the ICR for both OF and AF after the AF Project is completed.

3. The proposed AF would help finance the cost associated with implementation of additional and expanded activities to scale up the OF Project’s impact and better achieve the development objective. In addition, the new funds would allow the implementation of modified activities as part of a restructuring that could not be fully covered by the OF’s envelope. Specifically, the AF will contribute to the (i) Expansion of Integrated Financial Management Information System (IFMIS) capabilities and scope, and automation of the National Records Service, (ii) National Statistical Capacity Building, and (iii) an Energy Strategy Study. The new activities (ii and iii) are included as additional components to properly monitor relevant spending and results. An official request for this AF in the amount of US$5 million was received from the Government of The Gambia (GoTG), on March 28, 2013.

II. BACKGROUND AND RATIONALE FOR ADDITIONAL FINANCING

Country Context and Development Challenges

4. Overall rates of extreme poverty (below the $1.25 per day threshold) remain high, although they declined from 58 percent in 2003 to 48.4 percent in 2010. Education coverage and quality have improved. Recent data also indicate modest improvements in health, notably on HIV/AIDS prevalence (which remains stable) and maternal mortality (which declined considerably). More specifically, with a prevalence rate of 0.9 percent amongst adults aged 15 to 49, according to UNAIDS estimates for 20071, it is at a very low level for Sub-Saharan Africa2. The maternal mortality ratio (number of women who die during pregnancy and childbirth per 100,000 live births) has declined by nearly half over the past two decades from 700 in 1990 to 360 in 2010. Progress has been made in the areas of public sector, economic and fiscal management, civil service and justice reform, anti-corruption and public procurement reform. The Government is committed to consolidating these achievements, while creating space for continued funding of poverty reduction programs.

1 The average HIV/IDS prevalence rate conceals large differences amongst young men and women aged 15 to 24,

however, with rates amongst young women (1 percent) more than double the rate amongst men (0.4 percent). The estimated antiretroviral coverage for both genders continues rising, nevertheless, doubling to 18 percent in 2007 compared to 9 percent in 2004. These figures include expectant mothers living with HIV/AIDS, who saw their antiretroviral coverage increase by over 50 percent between 2005 and 2007.

2 According to UNAIDS, the HIV prevalence in West and Central Africa remains comparatively low, with the adult HIV prevalence estimated at 2% or under in 12 countries in 2009 (Benin, Burkina Faso, Democratic Republic of the Congo, Gambia, Ghana, Guinea, Liberia, Mali, Mauritania, Niger, Senegal, and Sierra Leone).

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5. As a small, open economy, The Gambia remains highly vulnerable to external shocks, given its relatively undiversified economic base. The Gambia is heavily dependent on rain-fed crops for agricultural production, on imports for food security, and on tourism receipts and remittances for foreign exchange earnings. For example, the 2011 Sahelian drought crisis caused massive crop losses, with related impacts on household food security and nutrition, the availability of seeds, and the balance of payments. Gambian transit and re-export trade activity has been hampered by competitiveness gains in neighboring countries, specifically Senegal, as well as the impacts of the most recent crises in Mali and Guinea-Bissau. Finally, the country’s vulnerability to climate change, land degradation and disaster risk explicitly highlights the need to promote and strengthen integrated management of the coastal zone and to protect and preserve biological diversity and ecological assets.

6. The Gambia is still recovering from the negative effects of the severe drought in 2011, and real GDP growth is estimated to have expanded by 5.3 percent in 2012. Prior to the drought that contributed to a 4.6 percent contraction in GDP in 2011, The Gambia had recorded an average real GDP growth rate of 6.2 percent during 2008-2010. While the global financial crisis in 2008 led to a decline in external demand, and in particular The Gambia’s tourism receipts, strong agricultural output more than compensated for the drag on growth. In more recent years, the tourism sector has posted healthy gains, which supported GDP growth.

7. The Gambia’s public resource management challenges have been underscored by the difficult macroeconomic dynamics over recent years. The global financial crisis, high oil prices and severe drought have contributed to a jump in public domestic debt from a 21.2 percent share of GDP in 2009 to a projected 33.8 percent in 2012 and to an increase in domestic interest payments from 2.4 percent to 3.5 percent of GDP. Achieving sustainable economic growth will depend critically on how well public resources are managed in order to minimize risks of interest payments crowding out other public expenditures and private domestic investment.

8. Fiscal discipline slipped in 2009 and 2010, but has since improved and the GoTG signed an Extended Credit Facility with the IMF in 2012. The deterioration was partly due to the unstable global environment and declining tourism receipts. But, it also reflected an increase in tax exemptions on imports, and delays in adjusting the pump prices for petroleum products. The Government generated a basic primary fiscal surplus of an estimated 1.5 percent and 1.6 percent of GDP in 2011 and 2012, respectively, which is projected to be sustained at 1.6 percent in 2013, compared with a deficit of 0.4 percent in 2010. This has helped to contain the Government’s net domestic borrowing and to clear the Government’s overdraft with the Central Bank. After establishing a record of improved macroeconomic policy framework in 2011, the authorities signed an Extended Credit Facility (ECF) with the International Monetary Fund (IMF) in 2012, and just completed the First Review of the ECF in May 2013.

9. Prudent fiscal management is particularly important given the country’s relatively high public debt to GDP ratio, with domestic debt held predominantly at maturities of a year or less. Foreign and domestic public debt remains high, notwithstanding the country having reached the HIPC/MDRI completion point at end-2007. The key exposure indicators of the IMF and World Bank (WB) show that total debt outstanding as a ratio to GDP declined from 143.2 percent in 2006 (pre-HIPC) to 55.1 percent in 2008. However, it has since increased to an estimated 78 percent of GDP in 2012, reflecting the combination of a fast-growing, high-cost, domestic public debt (33.8 percent), and a slow-growing, mostly concessional external public debt (44.3 percent). With short maturities, domestic debt poses high roll-over and interest rate risks. The 2013 update to the joint IMF-WB Debt Sustainability Analysis resulted in an improvement in The Gambia’s rating of risk of debt distress to “moderate” from “high” (on the basis of improved management and inclusion of remittances in exports).

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10. The recent imposition of currency restrictions further underscores the need for the GoTG to maintain a prudent fiscal stance. On June 26, 2013, the Office of the President issued a declaration fixing the Gambian dalasi to a trading band of 30 to 33 per U.S. dollar, which is 18 percent to 25 percent overvalued. The President’s declaration also imposed a moratorium on U.S. dollar shipments, although this was subsequently quickly lifted on July 5, 2013. These actions suggest a significant loss in competitiveness for Gambian exporters and deterioration in the current account position, along with a draw-down in international reserve holdings.

11. The AF Project is aligned with the WB and AfDB’s 2013 Joint Partnership Strategy (JPS) that identifies three major development challenges in The Gambia. These challenges are (i) improving public service capacity for service delivery, (ii) improving transparency and accountability in public financial management and public procurement, and (iii) restoring growth and macroeconomic stability. To address the first challenge the JPS indicates that major bottlenecks include little capacity in the ministries for strategic planning, performance measurement and management, and that as a consequence there is limited accountability for results and delays in the decision-making process. In reference to the second challenge, the JPS underscores the need to improve the demand side of public financial management by disseminating information to the public and creating a culture of accountability and citizen participation. For the third challenge, the energy sector is cited as one of the major bottlenecks to improving public service capacity for service delivery, noting that it faces a number of obstacles including structural and operational issues, as well as the need for significant capital to upgrade and expand its generation, transmission and distribution capacity.

Sector Context

12. Public financial management and transparency have improved in recent years, and have been supported by the establishment of an IFMIS that provided for enhanced financial reporting. The GoTG started implementing IFMIS in early 2006 and it became operational at the central government level to support core budget preparation, execution and reporting functions since 2007. Progress is reflected in the findings of the 2010 Country Financial Accountability Assessment (CFAA) and in the 2011 Public Expenditure Review (PER) Update. There have been a number of benefits, including the following: (i) Implementation of IFMIS was aimed at addressing the GoTG’s perennial problem of managing all its financial transactions in a manual environment that had resulted in a ten-year backlog in the production of Government Accounts; (ii) This system has improved the timeliness of financial reporting by providing monthly and comprehensive within-year budget execution reports that facilitate the preparation of annual financial statements and subsequent budgets; (iii) The system has also supported a strengthening of sectoral allocation, planning, and analysis, along with greater effectiveness in Government expenditure programs by identifying cost-drivers in program activities; and (iv) An IFMIS interface at the Central Bank has successfully been established, providing access to real-time information on budget shortfalls and on the timing of needed public domestic borrowing (as the first step towards a centralized TSA operation for improving cash management).

13. The Gambia has reduced the backlog of audited Government financial statements that was also partly facilitated by IFMIS. In 2012 outstanding audits for 2008 through 2011 were finalized and submitted to the National Audit Office. Further the internal audit function was strengthened (including a shift from pre-payment auditing to risk-based auditing, concentrating on systemic issues), which received renewed attention with the roll-out of IFMIS and the establishment of an improved accounting environment. The internal audit function had been missing for many years, until the establishment of the function was required as part of the institutional arrangements set out in the 2004 Gambia Budget Management and Accountability Act, and in the 2006 legal mandate for the internal audit function.

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14. Despite these improvements, there is significant scope to consolidate recent gains in public resource management, including through improved debt and cash balance management. In particular, the IFMIS system is being upgraded to a web-based platform (under the restructuring of the Original Financing for IFMIS), which will enable off-site users (e.g., 8 sub-treasury offices and embassies) to be integrated into the system during AF. The upgrade and migration of the IFMIS system is from the current version (Epicore 7.3.5) to the web-based version (Epicore 9.0.5), which will enable support of other key objectives that will improve public financial management, such as incorporating donor-funded projects into IFMIS and linking to the debt management system that will be expanded during AF. Web-based version will also reduce the maintenance cost of the IFMIS platform and ensure the sustainability of upgraded version.

15. Additionally, the upgrade of IFMIS to the web-based platform will facilitate the establishment of a Treasury Single Account (TSA) that could generate significant savings. The benefits of efficient cash balance management through centralized TSA operations include: (i) minimization of idle balances and associated costs; (ii) reductions in liquidity impact from budget deficit/surpluses; and (iii) contributions to the development of money market. In order to achieve these, it is essential to have effective cash forecasts, accurate and efficient payment systems, integration of cash balance management with government debt management, and good information sharing and coordination with the central bank, as well as a proper TSA infrastructure.

16. There is also scope for greater enhanced public resource management through improvements in payroll management Better and more frequent human resources planning for payroll management and control given the increase in the civil service over the last few years is under consideration. The validation of the Human Resource records in the IFMIS payroll module envisioned under the proposed AF would allow for the regularization of these records, with the removal of ghost workers and the elimination of vacant positions (system based controls, instead of manual verification of documents). This will, in effect, strengthen the base for a more judicious management of the personnel records, including the inclusion of new entrants into the payroll, under the auspices of the Personnel Management Office. These actions further safeguard the improved macroeconomic framework since 2011.

17. Institutional capacity can also be enhanced by improving the timeliness and functionality of the National Records Service (NRS). NRS information storage and retrieval systems for the national records are currently carried out manually using physical files and paper-based search systems, which can result in significant delays. Automation of national records would provide for more reliable storage of records and for improved efficiency in responding to requests for records.

18. The reliability of national statistics to inform timely and accurate development policy interventions is a key concern and provides significant scope for improvement as well. The National Statistical Systems do not generate data in a regular or consistent way. Data collection has been mostly conducted on an ad hoc basis, with very limited scheduled statistical activities. Long time lags between surveys make it impossible to track progress for even basic indicators. The Gambia Bureau of Statistics (GBoS) was established in 2005 by the National Statistics Act with the mandate, among other functions, to coordinate the National Statistical System in order to ensure that quality statistics are produced and disseminated. Both national-level and lower-level data collection is produced by GBoS. However, GBoS is severely handicapped in many areas, including by a limited number of qualified personnel, and lack of software and hardware systems that hamper the production of regular and reliable basic statistics in the country. More timely, accurate and transparent reporting of National Accounts would support improved macro-policy responsiveness and greater accountability.

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19. Another key concern related to public resource management arises in the energy sector, which is a major bottleneck for economic growth and the business environment. The energy sector of The Gambia faces a number of challenges ranging from structural and operational issues to the need for significant capital to upgrade and expand its generation, transmission and distribution capacity. The high cost and the lack of availability of electricity is a serious constraint to enterprise development and there is also concern that the sector amasses substantial contingent liabilities; including through NAWEC, the national operator, a State-Owned Enterprise overseen by the Minister of Energy of The Gambia. Its three core activities are Water, Electricity and Sewerage services for domestic, industrial and commercial uses.

20. One of NAWEC’s main challenges is to improve access to electricity, reduce its operational costs and its contingent liabilities on State finances. However, its persistent financial difficulties do not permit either timely investment in new equipment or maintenance of the existing ones. This insufficient effort on equipment is one of the root causes for frequent disruptions of electricity supply in the greater Banjul area, which has a strong adverse impact on the country’s development. NAWEC’s electricity generation is 100% dependent on fuel, and is thus very costly. Its commercial billing system (AS400) was old and therefore replaced by new system (GLATEE). The new system, however, is not connected to the accounting, payroll or invoicing. It is therefore difficult for the company to reconcile its various sets of accounts, and to segregate the financial performance of its three different activities. Consequently, although external auditors certify its yearly financial statements, they formulate numerous material reserves.

21. To enhance public resource management in the sector, it is fundamental that the financial management of the utility be improved. Increasing transparency in NAWEC (including by clarifying costs and ensuring clear accounting separation in NAWEC) will provide better understanding on the level of cross subsidies between electricity and water and how the various costs break down in the electricity sector. Such transparency will not only enable better targeting of efforts to reduce costs in the sector, but will also provide data on NAWEC’s credit-worthiness and help pave the way for more private sector investment. As the Gambian Authorities are looking into defining an energy sector strategy to address the sector’s challenges, the implementation of such strategy will undoubtedly require significant capital including important public resources. The quality of financial information on power sector entities will therefore be a key consideration for the government and financing partners given the large capital investments involved and financial losses. Moreover, the strategy could resort to partnerships with entities from the private sector. Sound financial management supporting the reliability of cost information is therefore an important element of the decision making process (for instance, in the setting of tariffs and assessment of capital and operating costs of the utility). More timely, accurate and transparent reporting of NAWEC’s finances would support improved sector responsiveness and greater accountability.

Description of the Original Financing (OF) Project and Performance

22. The Original Financing (OF) Project (P117275) in the amount of SDR 3.4 million, equivalent at that time to US$5.25 million, was approved by the Board on June 1, 2010 and became effective on August 31, 2010. The OF closing date was December 31, 2012, but was extended to December 31, 2013 through a restructuring (November 2012, Restructuring Paper, Report No. 72456-GM). The main purpose of the restructuring was to ensure a successful completion of the OF Project activities and the effective utilization of undisbursed funds.

23. The Project Development Objective (PDO) of the Original Project Financing Agreement is to increase the GoTG’s capacity in public resource management. The three PDO indicators are (i) a high rate of budget execution including the donor funded budget above 75 percent, (ii) a reduced number

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of months of accumulated arrears in payments, and (iii) a timely and periodic publication of budget reports.

24. The OF Project is comprised of the following components: (1) IFMIS Rollout, Interfaces and System Training, (2) New IFMIS Applications, (3) Communications and Change Management, (4) IT and Accounting Capacity Building, and (5) Project Implementation support. The AF Project includes major investments to upgrade the core system of public financial management (budget preparation, execution, accounting, reporting, payroll, and interfaces with other systems) through IFMIS information and communication technology (ICT) solutions, and Technical Assistance (TA) to support institutional reform, policy formulation, and capacity building.

25. In December 2012, the OF project was restructured to reallocate unspent funding of US$1.19 million to complete a number of activities to enhance the existing IFMIS during the first extension phase. The following activities are to be delivered during the first extension phase (that runs through December 31, 2013): (i) an upgrade and migration of the IFMIS system from the current version (Epicor 7.3.5) to a newer web-based version (Epicor 9.0.5); (ii) establishment of a link between IFMIS and the Commonwealth Secretariat Debt Recording Management System (CSDRMS); and (iii) an extension of the IFMIS system to include donor-funded (self-accounting) projects in two pilot sites (the Ministry of Finance and Economic Affairs, or MoFEA, and the Ministry of Information and Communication Infrastructure). Upon completion, the enhanced IFMIS is expected to improve planning, execution and monitoring of the budget by assisting in the prioritization, execution, and reporting of expenditures. These additional activities will also support achievement of related outcome indicators and triggers in the Development Policy Operation (DPO) for the GoTG, Economic Governance Reform Grant (EGRG, series I and II, P123679 and P132889, respectively).

26. The OF Project has realized several tangible achievements to date and has been rated “satisfactory” for the Development Objective and implementation progress since the beginning of the OF Project. Following pilot cases at several key ministries in 2007, the IFMIS, with all the modules3, was rolled-out to all the remaining central Government Ministries and Departments in January 2011. It has also been interfaced with the Core Banking Module of the Central Bank of The Gambia, providing the Treasury Directorate with online access to monitor all Government bank account balances and statements. This facilitates the uploading of the bank statements to the IFMIS for automated bank reconciliations. Positive impacts could include (i) improved timeliness of financial reporting; (ii) enhanced management of ministerial resources; (iii) strengthened sectoral allocation, planning and analysis; (iv) greater effectiveness in the Government’s expenditure programs by identifying cost-drivers in program activities; (v) real-time information on budget shortfalls and the timing of needed public domestic borrowing, due to the IFMIS system interface with the Central Bank; and (vi) validated Human Resources (HR) and payroll records for all central Government civil servants. The implementation of the IFMIS in all Government Ministries, Departments and Agencies has been kept at the budget execution rate above 90% at end 2012. In addition, the backlogs in the preparation of account have now been cleared completely as of December 2012.

27. However, additional needs to further explore the full potential of the IFMIS have arisen during the implementation of the OF Project in order to enhance the impact of the OF Project. These needs include integrated cash and debt management, Treasury Single Account (TSA) operations, commitment control for long term contracts, asset/inventory management, personnel management, pensions, payroll, and interfaces with other public finance systems, as well as the relevant change

3 IFMIS modules operational since 2007: Budget Preparation, Accounts Payable, Accounts Receivable,

Procurement (purchasing module), Cash Management (partially used), Commitment Control (partially used), General Ledger, Payroll, and Reporting.

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management and training activities to ensure the sustainability of enhanced systems. Additionally, strengthening the institutional capacity and improving the timeliness and functionality of the NRS information storage and retrieval systems are other important needs, since these tasks are currently carried out manually using physical files and paper-based search systems. More broadly, statistical capacity development is also an important need to provide for improved policy responsiveness, public resource management and economic development, and transparency. And, a comprehensive national energy strategy is needed to improve the sector’s policy framework. The GoTG has requested the World Bank provide Additional Financing for implementing additional complementary IFMIS activities as part of the global PFM reforms that are described in the section below.

28. As of May 2013, the disbursement rate of the OF Project stands at 88%. The remaining US$0.43 million in the OF Project is expected to be disbursed by December 2013 to complete the aforementioned additional activities under component 1.

Consistency with the Joint Partnership Strategy

29. The proposed AF is fully consistent with the new JPS for 2013 through 2016 that the Executive Directors discussed on April 4, 2013. The AF comes in direct support of the three areas that the JPS identifies as the major development challenges in The Gambia; (i) improving transparency and accountability in public financial management and public procurement, (ii) improving public service capacity for service delivery, and (iii) restoring growth and macroeconomic stability. As noted above (paragraph 6), the JPS indicates that it is critical to improve the demand side of public financial management by disseminating information to the public and creating a culture of accountability and citizen participation, that major capacity bottlenecks in service delivery include little capacity in the ministries for strategic planning, performance measurement and management, and that the energy sector is one of the major bottlenecks in the economy.

30. The JPS explicitly highlights that the proposed AF is expected to contribute to improving the economic governance by complementing on-going institutional support and technical assistance to the MoFEA (AfDB’s second Institutional Support for Economic and Financial Governance, ISPEFG II and IDA’s IFMIS-AF Project). Also, as stressed in the JPS, the World Bank will closely coordinate with other donors, in particular, with the AfDB and the European Commission (EC) to improve governance in The Gambia, under the public financial management component of the EU Governance Support Program approved in 2011.

Rationale for Additional Financing

31. Following successful implementation of the OF Project, the GoTG has requested AF in the amount of US$5 million to better achieve the OF Project development objectives. The GoTG has requested additional IDA financing to (i) expand the existing IFMIS system and automate the National Records Service, (ii) to strengthen national statistical capacity, and (iii) to support an energy sector strategy. The official request of the Government was received on March 28, 2013.

32. AF will enhance the OF Project’s impact by (i) expanding IFMIS functional capabilities and scope, (ii) building statistical capacity, and (iii) helping to prepare an energy sector strategy study. The impact of the OF Project can be enhanced by supporting integrated cash and debt management, TSA operations, commitment control, asset/inventory management, personnel management, pensions, payroll, and interfaces with other public finance systems, as well as the relevant change management and training activities to ensure the sustainability of enhanced systems. The impact of the OF Project can be enhanced also by strengthening the institutional capacity and improving the timeliness and functionality of the NRS information storage and retrieval systems, activities that are currently conducted manually. More broadly,

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the impact of the OF Project can be enhanced through support of (i) statistical capacity development to facilitate improved policy responsiveness and public resource management, and (ii) a comprehensive national energy strategy to improve the sector’s policy framework.

33. The proposed AF is fully consistent with Operational Policy Guideline OP/BP10.00 and the OPCS instructions on Additional Financing. All of the conditions for an AF are met. In particular, implementation of the OF Project has consistently been satisfactory, and the OF Project has substantially complied with financing covenants. The AF also appears economically justified given the potential positive benefits that could result from the enhancing of the IFMIS network and the other proposed activities. The proposed activities are consistent with the development objective of the OF Project and the new JPS, in which the AF is included, as discussed above (paragraphs 6 and 21).

34. An AF is considered to be the best option to reach the OF Project objective. In particular, the advantage of the AF is that it can build directly on the existing activities and implementation structure that have generated satisfactory results. Compared to a new operation, the AF can be prepared more rapidly, thus maintaining the positive momentum of the results achieved to date. The AF will be complementary to the interventions by other development partners, particularly the AfDB and IMF, and GoTG activities. As noted, the World Bank has a JPS with the AfDB, and the IMF has an Extended Credit Facility with The Gambia, both of which complement the proposed IFMIS AF Project. Additionally, the AfDB and the IMF are coordinating on statistical capacity development activities in The Gambia, aiming to best leverage the Bank’s support. Further, The Gambia would benefit from AF support to energy sector because, among other reasons, it would be in a better position to efficiently use Islamic Development Bank (IsDB) funds that might be made available, as the IsDB is interested in financing activities in the energy sector in The Gambia. With respect to the GoTG, the MoFEA, for example, has been actively engaged in IFMIS skills transfer and other change management activities to support sustainability and enhanced local IFMIS management capacity.

III. PROPOSED CHANGES AND RESTRUCTURING

35. The total amount requested for IFMIS AF (P132881) is US$5 million or an equivalent of SDR 3.4 million to be funded as an IDA Grant.4 There is currently no directly linked financing by the Government or other donors. Invoking the Country Financing Parameters for The Gambia last updated in November, 2005 allows for a disbursement percentage of 100% for financing of IDA’s share of expenditures for all project components and sub-components.

36. The PDO, to increase the GoTG’s capacity in public resource management, remains the same. The additional financing is needed to secure its full achievement through enhanced IFMIS capabilities. Most of the additional resources are allocated to the IFMIS expansion and extension under component 1. A smaller part of the AF resources are being directed to other new activities, i.e., statistical capacity development and a national energy strategy, which are also deemed as public goods and are linked with the PDO.

37. The AF will support existing and new activities. The new activities are in the areas of; (i) expanding existing IFMIS functional capabilities and scope, (ii) building statistical capacity, and (iii) helping to prepare an energy sector strategy study. The existing activities that AF will support are tied to IFMIS rollout, interfaces and system training (Component 1, see paragraphs 40-48 below), including capacity expansion of IFMIS system centers and ICT infrastructure, and support for system integration, change management and training.

4 Based on US$/SDR exchange rate as of July 31, 2013.

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38. Key performance indicators of the OF Project remain valid, but are being updated and expanded to reflect these changes. The performance indicators will, more specifically, be expanded to include the Government’s increased ability to manage public resources through improved data reporting and management, and through increased capacity for strategic planning to be measured by (a) regular publication of a comprehensive set of public finance information, national accounts and prices, (b) periodic reports on automation of national records, and (c) development of a national energy sector strategy, its publication, and an endorsement by the GoTG of the action plan derived from the Strategy.

39. The following is a list of existing and new components that AF is intended to support in order to achieve widespread efficiency gains to foster improved macro-financial management. More specifically, this list is comprised of components and activities that are being carried forward from the OF Project (i.e., Components 1 and 5) and new components and activities proposed for AF (i.e., Components 6 and 7). Components 2, 3 and 4 from the OF Project have been completed or are currently being completed under the OF Project (by December 31, 2013), and no new activities are proposed under them with IFMIS AF. (Please see Table 2, below on Project Costs by Component).

Component 1 – Support for IFMIS Rollout, Interfaces and System Training: US$3.34 million

40. Component 1 will finance the expansion of IFMIS capabilities and scope to improve core public resource management functions, and the strengthening of institutional capacity. The IFMIS is operational across the Government to support daily operations (mainly payments processing and accounting) since the first quarter of 2011. A total of 170 end-users in all central Government ministries have been trained, including senior Government officials (Permanent Secretaries, Deputy Permanent Secretaries and Department Directors and Deputy Directors). Skills transfer and other change management and training activities continue as planned under the existing OF Project (P117275). A summary of the IFMIS development phases through several consecutive Bank funded projects since 2005 is included as Annex 7. The IFMIS development strategy and functional coverage included in various phases of the AF Project is also attached as Annex 8. This component will support the third and last phase of IFMIS development, including the transition to multi-year budget framework, integrated cash and debt management, Treasury Single Account (TSA) operations, commitment control, asset/inventory management, personnel management, pensions, payroll, and interfaces with other public finance systems, as well as the relevant change management and training activities to ensure the sustainability of enhanced systems. IFMIS interface with the Central Bank will be improved to support the TSA operations by capturing the details of all payment and receipt transactions on the government bank accounts, and by automating the reconciliation process.

41. The IFMIS Phase III (AF) activities to be funded through this component include the development of new capabilities, the integration of various modules, and provision of access to a larger number of budget users at all levels. The new capabilities are expected to increase the coverage of budget expenditures, and improve the efficiency of resource/asset management (which could generate significant savings by improving overall fiscal account holdings) and cash management (through the extension of IFMIS to all self-accounting/donor-funded projects that account for about 40% of budget spending). Each component activity is linked with a separate procurement package to cover advisory support, and capacity building, as well as system development needs. The expansion of IFMIS capabilities included in Activity 1.1 is not a trivial task. Most of the expansions are based on the activation of existing modules (no or minimal customization) and the data entry/migration aspects are considered. However, there is a substantial change management effort needed, and Activity 1.3 is designed to provide necessary advisory support and training, in parallel to IFMIS expansion.

42. The IFMIS AF will support the following additional activities under this component (estimated cost: US$3.34 million). Details of these activities are provided in Annex 4, and correspond to

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the following respective Parts of the Project description (in parenthesis) as stipulated in Schedule 1 of the Financing Agreement (FA).

Activity 1.1: Expansion of existing IFMIS capabilities and scope (FA Part 1.1, 1.3 and 1.7)

43. This activity will support the extension of IFMIS functional capabilities and scope. Support will be provided by: (i) including all self-accounting/donor-funded projects with a unified chart of accounts (which will also pave the way to using IFMIS as a country system for financial management and accounting of donor funded projects); (ii) supporting the financial transactions and reporting needs for embassies and sub-treasuries; (iii) pilot implementation of multi-year budget framework; (iv) developing interfaces with the Tax Administration systems (Asycuda++ and GamTaxNet); (v) activating the asset/inventory management modules; and (vi) operationalizing the procurement (purchasing) module in additional sites and improving commitment control; (vii) initiating the Electronic Funds Transfer interface with the Central Bank and making the TSA available; (viii) implementing HR Management Information System (for recruitment management & performance appraisal) for the entire government (alternative software solutions will also be considered); (ix) implementing Electronic Records Management (within IFMIS); and (x) increasing the number of IFMIS users through additional licenses. All of these activities are expected to be implemented by amending the existing contract with the IFMIS supplier (SoftTech) to ensure the timely completion of Phase III and reduce the overall cost of implementation. Estimated cost of these IFMIS functional enhancements is US$1.44 million.

Activity 1.2: Capacity expansion of IFMIS system centers and ICT infrastructure (FA Part 1.1, 1.2, and 1.8)

44. In order to support the expansion of IFMIS functionality and scope, existing system centers and information and communication technology (ICT) infrastructure will be improved through this activity. The technical requirements for necessary capacity increases in central servers, data storage units, network connectivity, information security, system management and monitoring, and technical support needs will be defined by the MoFEA with support from the IFMIS supplier (SoftTech). Improvements in engineering systems (fire alarm and extinguishers, access control, remote monitoring) and user management are also included. Planned capacity expansions will also support the implementation of new Electronic Records Management System (ERMS). This activity is expected to be implemented through an International Competitive Bidding (ICB) process, with an estimated cost of US$1.120 million. The procurement documents will be prepared by the MoFEA with support from the consultants to be selected for Activity 1.3.

45. Activity 1.3: Support for system integration, change management and training (FA Part 1.4, 1.5, 1.6 and 1.9)

46. This activity will provide necessary advisory support for a detailed assessment of the PFM reform process, IT Audit, and gap analysis, as well as to identify necessary improvements before the expansion of IFMIS. Additional training and advisory support will be provided during IFMIS expansion to ensure the sustainability of new platform after the completion of the AF activities. A competent firm will be selected to assist in the development and implementation of change management plan for the new IFMIS platform, as well as the organization of dissemination and training activities to improve the skills and awareness of all stakeholders through a Quality and Cost Based Selection (QCBS) process (estimated cost: US$0.518 million).

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Activity 1.4: Development of the Electronic Records Management System (FA Part 1.10)

47. This activity will support the establishment of an Electronic Records Management System (ERMS) for national records to improve transparency and efficiency in accessing information, and prevent the loss of national records. Strengthening the institutional capacity, and improving the timeliness and functionality of NRS information storage and retrieval systems are other important goals, since these tasks are currently carried out manually using physical files and paper-based search systems. The proposed system will allow all the records at all Government agencies to be managed and maintained at head office through gradual expansion (starting with a pilot at the NRS Head Quarters). This system would be scalable to allow National Records Service (NRS) to perform its primary mandate (as defined by the act of parliament in 1993) to manage the public records for all government institutions. The NRS has already developed a system design document with detailed functional and technical requirements, and a preliminary cost estimate. The AF will support the automation of core business processes through web-based application software, and benefiting from relevant ICT infrastructure expansion (included in Activity 1.2) to avoid duplicate investment (estimated cost: US$0.260 million).

48. The MoFEA has approved a transition plan for civil servants to take over the IFMIS consultant roles by end-2013 for Component 1, which is aimed at strengthening internal capacity. Some of the existing IFMIS team consultants and new staff have begun to work as government officials starting from July 2013. The AF Project, the MoFEA specialists are expected to complete this transition and start maintaining the system in early-2014, before the implementation of Activity 1.1 (before the contract signature for IFMIS expansion). Transfer of know-how and skills should be completed during AF of the IFMIS implementation to ensure the sustainability of new web-based platform. (Please see Annex 9).

Components 2, 3 and 4 from the OF Project are being completed by December 31, 2013. No activities under these components are being proposed with Additional Financing. (Please see Table 2 below on Project Costs by Component).

Component 5 – Project Implementation Support: US$0.46 million

49. The same Project Coordination Unit (PCU) will continue to manage the AF, but needs to be strengthened. This unit was established in 2010 within the MoFEA with support from the African Development Bank (AfDB), as a core project management unit for all PFM related projects. Since the AfDB expects to terminate their program, ISPEFG II, in December 2014, that is largely financing the PCU, the AF will take over financial support to PCU from January 2015 onwards. It will mainly consist of top up to the salaries of staff, office supply and running cost, one vehicle, training for PCU staff, and audit. Despite the volume of projects, the unit has been operated by only three key staff (a project coordinator, a procurement officer and an accountant) and a support team (two assistants and two drivers). Given expanded activities in this AF and as a measure of risk mitigation for efficient project management, this component will provide financial support for top-up to the remunerations of two additional staff; an Operations/Monitoring & Evaluation Specialist, and a Financial Specialist (Administration and Financial Management Specialist) that the MoFEA will recruit.

Component 6 - Support to National Statistical Capacity Building: US$0.7 million

50. This new component aims at supporting statistical capacity development to improve the coverage, quality and timeliness of reporting of macroeconomic accounts for improved policy responsiveness, public resource management and economic development, and transparency. It is also intended to support improved policy alignment with the 2020 Vision objectives and help monitor progress toward poverty reduction objectives identified in the Program for Accelerating Growth and

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Employment (PAGE: 2011-2015). There is a dearth of macroeconomic data in The Gambia, due to various factors, including insufficient resources to collect data (e.g., to conduct economic surveys), limited technical capacity in national accounts, and outdated methodologies and technological tools at GBoS. Additionally, macroeconomic statistics are often substantially revised, clouding appropriate fiscal policy responses. The AF will support the following activities: (i) the funding of advisory support for 24 months to lead the organizational restructuring and development of GBoS with a focus on building capacity in economic statistics including the National Accounts; (ii) financing for 12 months of scholarship for master’s degree training for two GBoS staff in the area of statistics to improve the technical capacity to support enhanced service delivery; (iii) support for conducting an economic survey and for data dissemination; and, (iv) financing to purchase software for generating national accounts, benefiting from the recommendations of the first activity.

Component 7 – Support for the Preparation of a National Energy Strategy Study: US$0.5 million

51. This new component aims at helping the GoTG with the development of a national energy strategy to help improve the sector’s policy framework and NAWEC’s financial management for improved service delivery. In turn, these gains should support attainment of growth and poverty reduction objectives. The first part of the activity involves the preparation of an energy sector strategy, which will take stock of the recent studies in the electricity sector, complement the current diagnoses with an assessment of the hydrocarbon sub-sector and its impact on electricity and the Government’s finances, with the objective to propose a clear road-map (action plan) for policy makers5. The second part of the activity will focus on the utility’s finances and financial management system with an aim to: (i) propose a financial management system that will ensure that the three services of NAWEC (Water, Electricity and Sewerage) can be accounted separately; (ii) make recommendations to reduce cost on these cost elements that have the most dramatic impact on the utility’s financial viability (e.g., fuel); and (iii) identify clear areas for capacity building for NAWEC staff in financial management. Improving the utility’s finances will help pave the way for increased private (foreign and domestic) participation in the sector to help meet the country’s surging energy needs. Participation of the private sector could potentially help diminish the sector’s burden on public balances (i.e., through a further reduction of obligations due to power sector arrears to the government).

52. The proposed project restructuring includes the following changes: (i) The project will include under the AF the aforementioned 2 new components; Component 6 - Support to National Statistical Capacity Building, and Component 7 - Support for the Preparation of a National Energy Strategy Study; (ii) The performance indicators are updated, as indicated in the Table 1 and Annex 1, (iii) Harmonization of the procurement guidelines, and (iv) Amendment to allow for a joint Implementation Completion Report.

5 This should help the Government prepare a policy statement for the sector and an action plan with an indicative

budget and timeline. Formal adoption of the policy will help creating the required environment for investment.

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Table 1: Project Outcome Indicators

Indicator Original target Changes with AF Revised target

INDICATOR #1: The budget execution rate is kept above 90%

The budget execution rate is kept above 90%

None 90%

INDICATOR #2: Increased percentage of central government expenditure covered through AF

None New indicator 90%

INDICATOR #3: Government contracts are recorded and managed through IFMIS to produce reliable data on all commitments, payments and arrears.

2 months (Original indicator: The number of months of accumulated arrears in payments to government suppliers is reduced)

Indicator was revised to “Production of detailed and reliable reports through IFMIS on all contractual commitments, payments and arrears”

Delivery of detailed and reliable reports (annual)

INDICATOR #4: Timely periodic publication of budget execution reports on the MoFEA web site

None New indicator Monthly

INDICATOR #5:

GDP data regularly & publicly made available

None New indicator Quarterly

Table 2: Project Costs by Component

Project Component Original Budget

(May 2010)

Revised after Restruct.

(Nov 2012)

AdditionalFinancing(Sep 2013)

Revised After AF

(Sep 2013)* Disbursed Undisbursed

Component 1: IFMIS Rollout, Interfaces and System Training

4.000 4.544 3.340 7.884 3.637 4.247

Component 2: New IFMIS Applications

0.420 0.020 - 0.020 0.020 0.000

Component 3: Communications and Change Management

0.100 0.040 - 0.040 0.040 0.000

Component 4: IT and Accounting Capacity Building

0.330 0.419 - 0.419 0.315 0.104

Component 5: Project Implementation Support

0.400 0.395 0.460 0.855 0.336 0.519

Component 6: Support to National Statistical Capacity Building

- - 0.700 0.700 - 0.700

Component 7: Support for the Preparation of Energy Strategy Study

- - 0.500 0.500 - 0.500

Total (US$) 5.250 5.418 5.000 10.418 4.348 6.070

*Some discrepancies in the revised total amount after restructuring are due to exchange rate fluctuations.

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IV. APPRAISAL SUMMARY

Economic and Social assessment

53. The economic analysis and social assessment of the IFMIS activities financed under the AF remain the same as those of the OF Project. The proposed AF continues to support investment and capacity building for improved public sector financial management reforms. Advisory support and investments envisaged under the AF Project aim at improving performance of key government institutions at the central and local levels in implementing specific public finance management, execution, accounting, auditing as well as human resources management tasks. Therefore, return of investments under the project will be, to a large extent, in a form of better performing public institutions capable of employing financial and human resources in an effective, transparent and accountable way.

54. The major benefits of the IFMIS AF components of the project—in providing the means to ensure effective prioritization and implementation of budget allocations and greater transparency in government’s financial management, also in strengthening instruments of fiscal control—are difficult to quantify and measure. Implementing the integrated IFMIS and streamlining budget preparation and execution procedures would result in efficiencies in government budgetary transactions. This would also enable better control on the targeted use of government financial and human resources. Better cash management would reduce idle balances in government accounts. More efficient execution of budgetary transactions would reduce delays in payments and would eventually reduce the cost of goods and services to the government. With the automation of the national records, the security, reliability and improved ease of access to records should also enhance efficiency of public resource management. Additionally, project implementation is also expected to achieve greater efficiency of budget programs audits and using its results to establish priorities for public expenditure, and raising the quality and reliability in managing public debt. More broadly, the major benefits of the proposed IFMIS activities in the project come in the form of knowledge and governance benefits through the provision of (i) the means for better public resource management, (ii) access to more reliable and comprehensive data on the part of authorities for better policy decisions, and (iii) improved accountability, which are all difficult to quantify and measure. 

55. The economic benefits of the activities under the statistical capacity component of the AF project are expected to derive from three main sources. First, improvements in the efficiency of statistical operations and agencies to result in broader coverage and higher-quality data. Second, better data to enhance the potential for evidence-based decision making, at policy, program and project levels. Third, the activities under the component will help address the significant costs of poor decisions made on the basis of missing or inaccurate data. The component is not amenable to a financial analysis because national statistical offices have very limited opportunities to recover costs, apart from selling compendiums of data. National statistics are generally considered public goods and are generally financed from Government revenue. Therefore, only marginal financial returns are expected from this project. However, indirectly, the project is expected to promote improved allocation of resources, enhanced social monitoring of the impact of Government spending. Additionally, there is the potential benefit of reducing revenue leakages by providing more accurate information on economic activity to the public at large, and the tax authorities in particular.

Technical assessment

56. The scope, duration and budget allocations for all activities including ICT solutions were clarified during the pre-appraisal stage in line with the MoFEA requirements. Three major IFMIS AF activities and the development of Electronic Records Management System (ERMS) (previously within Component 7) were combined under Component 1, to reduce the cost of ICT investments

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benefiting from the shared MoFEA infrastructure. The expansion of IFMIS for the implementation of Phase III activities (AF) through another contract with the supplier appears to be feasible, subject to the achievements of two conditions mentioned above. Improvement of the existing ICT infrastructure and the conditions of data centers (main and backup) for future IFMIS operations are supported through another activity. The MoFEA is substantially ready to implement additional technical capabilities during AF activities and most of the details for IFMIS expansion needs have been identified by the project team and supplier. However, additional efforts are needed to clarify the detailed requirements of the HRMIS module and the ERMS. Therefore, above activities will be complemented by advisory support from a consulting firm for system integration, change management, and verification/validation of deliverables in large ICT contracts.

57. The basic requirements for the Electronic Records Management System (ERMS) have been identified by the NRS officials. The NRS has been testing a prototype developed by a Gambian software development company (Insist Global) to learn more about the capabilities of records management module within the first half of 2012, and the initial results indicate that this solution can meet basic requirements. The Bank team assessed this solution during pre-appraisal visit and noted that the records management and human resources management information system/payroll modules are well developed based on a flexible data model and benefiting from open source development platforms. It was noted that the Insist has a competent development and support team and can provide reliable local support for the customized solutions, in case ERMS is based on such locally developed software. The MoFEA and NRS officials will test the latest version of the software in 2013, and share their views on potential use of this existing solution for the introduction of such a system rapidly and cost effectively.

58. Improvements in the proposed scope of IFMIS expansion are expected to increase the impact of future expansion. Transition to centralized Treasury Single Account (TSA) operations may result in substantial savings and improve cash management (covering all central budget revenues and expenditures). Pilot implementation of multi-year budget framework in six ministries (covering 70% of budget resources) starting from 2015 is expected to contribute to the improvements in resource allocation. Commitment control will be improved by including all service and works contracts, in addition to goods (all multi-year commitments). Interfaces with revenue administrations will provide daily access to information on all government revenues. The chart of accounts data structure has also been improved to cover future requirements. The MoFEA team is very much interested in developing a fully operational IFMIS solution to maximize the benefits of ongoing reform activities. The AF project indicators will be revised to reflect these important improvements.

59. During the pre-appraisal visit, the TSA assessment toolkit was introduced to MoFEA and Central Bank of The Gambia (CBG) officials, and a rapid assessment of the readiness to introduce TSA operations was conducted. Important aspects of centralized TSA operations were shared with the MoFEA and CBG teams during a seminar and the prerequisites for effective Electronic File Transfer (EFT) interface and TSA operations were discussed. It was noted that the CBG has a reliable infrastructure fully operational since December 2011, and the MoFEA can benefit from existing capabilities to introduce TSA during AF activities (in 2015). The CBG and MoFEA teams will continue working closely to develop an action plan for the introduction of TSA operations during IFMIS expansion. The team also discussed possible options for the initiation of Greater Than Leadership (GTL) program for FMIS to address adaptive (non-technical) challenges during the implementation of TSA. The MoFEA is interested in obtaining support for initiating such a program in 2013-2014, and the team will assist in this process as well.

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Institutional and Implementation Arrangements

60. Implementation arrangements of the original IFMIS Project will be maintained under IFMIS AF. The existing arrangements provide for the MoFEA to be the responsible Ministry, as designated by the GoTG, and it will provide oversight and support for Project implementation. The Permanent Secretary (PS) of MoFEA also chairs the IFMIS Inter-Ministerial Steering Committee, which includes representatives from several ministries and agencies, such as The Gambia Revenue Authority and the National Audit Office. Also, a Project Implementing Committee (PIC) and a Project Coordination Unit will be maintained within MoFEA, with responsibilities and procedures. Since both committees have been regularly meeting and well managing the project over the last 2 years to monitor the state of play of the Project, these coordination mechanisms will be maintained under the AF. The additional members will be included from the new beneficiaries of IFMIS AF in GBOS, NAWEC, NRS, and Ministry of Energy.

61. However, staffing of the PCU will be strengthened due to an increased number of new activities. The current PCU was established as the core project management unit in the MoFEA responsible for all PFM related projects in The Gambia, but has been operating with an unusually small team of three, which is comprised of the Coordinator, the Procurement Specialist and an Accountant. The PCU will be expanded to include an Administration and Financial Management Specialist and a Monitoring and Evaluation Specialist in order to strengthen implementation capacity and better manage the expanded activities. The Project will take over financial support to PCU from AfDB from January 2015 onwards when their ISEFG project will be completed. However, the current scale of top-up to salaries for the PCU staff under the AF will be maintained. The Project Implementation Manual (PIM, also referred to as the Project Operation Manual) was updated and the Bank has provided a no objection on July 31, 2013.

Financial management

62. It was agreed with the GoTG that the Projects Coordination Unit of the MoFEA will have overall coordination of the financial management activities of the IFMIS-AF. The PCU will report to the existing IFMIS Inter-Ministerial Steering Committee and Project Implementing Committee (PIC).

63. The Financial Management capacity of the PCU/MoFEA presents a number of strengths. These include (i) the presence of qualified and experienced accounting staff, (ii) the strong experience of the staff in financial management of Bank funded-projects (IFMIS), and (iii) the existence of a computerized financial management system (IFMIS software). In order to increase the strength of its financial management, the PCU/MoFEA has updated the existing Project Implementation Manual (PIM, sometimes also referred to as the Project Operations Manual), which will include the financial management procedures.

64. The conclusion of the assessment is that financial management arrangements meet the Bank’s minimum requirements under OP/BP10. The overall fiduciary risk rating is assessed as moderate once the mitigation measures are implemented. (See Annex 6 for Financial Management Arrangements).

Procurement

65. The procurement activities for the Additional Financing will be conducted using the existing institutional arrangement of the original IFMIS. Hence the PCU will be maintained within MoFEA. The PCU staff is well versed in IDA procedures, and has handled procurement under previous

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and on-going IFMIS phases. With this experience, it is expected that the sum of expertise gained will highly benefit the AF, and will help mitigating the residual risks that may exist. In addition, except for the procurement officer, who did not perform well, PCU comprises a qualified team including a Program Coordinator as well as an accountant. It is expected to expand the PCU staff by recruiting a Financial Specialist (Administration and Financial Management Specialist) and a Monitoring and Evaluation Specialist to strengthen implementation capacity and better manage the expanded activities. Thus, the existing functions would remain appropriate, subject also to the recruitment of a qualified new procurement specialist.

66. An assessment of the capacity of the MoFEA PCU in charge of procurement was carried out by IDA in May 2013. The assessment, which was an update of the assessment for the IFMIS II, reviewed the organizational structure for project implementation and the interactions between the project staff responsible for procurement and other technical staff and stakeholders during project implementation. Most of the issues and risks concerning procurement for the implementation of the AF have been identified and corrective measures have been agreed.

67. Procurement for the proposed Additional Financing will be carried out in accordance with the World Bank’s relevant guidelines. These are; “Guidelines: Procurement of Goods, Works, and Non-Consulting Services under IBRD Loans and IDA Credits & Grants” dated January 2011 (Procurement Guidelines), and “Guidelines: Selection and Employment of Consultants under IBRD Loans and IDA Credits & Grants” by World Bank Borrowers, dated January 2011 (Consultants Guidelines).

68. The procurement procedure to be followed for National Competitive Bidding shall be the open tendering set forth in the Gambia Procurement Act 2001 provided, however, that such procedure shall be subject to the provisions of Section I of Financing Agreement and Paragraphs 3.3 and 3.4 of the “Guidelines for Procurement of Goods, Works, and Non-Consulting Services under IBRD Loans and IDA Credits & Grants by World Bank Borrowers” (January 2011) (the “Procurement Guidelines”) and the additional provisions (Annex 6).

69. Provisions Applicable to Procurement of Goods and Consultants’ Services initiated prior to the date of this Agreement. Notwithstanding the terms and conditions of the Section III (Procurement) of this Schedule 2 to the Financing Agreement: (i) to the extent the Initiation of Procurement Process in respect of goods and services to be financed out of the proceeds of the Financing occurred prior to the date of this Agreement; and (ii) there are no proceeds remaining under the Original Financing to finance such goods and services; then, on an exceptional basis only and subject to the Association’s prior no-objection, Section III of this Schedule shall not apply to the procurement of such goods and services; provided, however, that the provisions of Section III (Procurement) of Schedule 2 to the Original Financing Agreement, as they read at the time of such Initiation of Procurement Process, shall apply to the procurement of such goods and services.

70. The overall project risk for procurement is substantial, even though there are few procurement activities, as the IFMIS AF includes several large IT contracts. The procurement Plan (Annex 6) was agreed with the GoTG on August 6, 2013.

Procurement Implementation Support Plan

71. In addition to the day-to-day assessment of Procurement files under prior review by the Bank, procurement supervision will be undertaken at least twice a year. This supervision will include (i) the review of the procurement plan to be updated from time to time by the PCU ensuring the necessary linkages with the procurement transactions under the existing financing; (ii) necessary advice to the PCU

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on procurement files under preparation; (iii) a procurement post-review during one annual supervision mission of procurement transactions which have not been prior reviewed by the Bank; (iv) the review of the organization and the performance of the procurement function within the PCU (capacity of both procurement staff and other technical staff, including archiving); and (v) any other procurement-related matters.

Fraud and Corruption

72. All procurement entities as well as bidders and service providers, i.e., suppliers, contractors, and consultants, shall observe the highest standard of ethics during the procurement and execution of contracts financed under the project. This is in accordance with paragraphs 1.16 and 1.17 (Fraud and Corruption) of the Procurement Guidelines and paragraph 1.23 and 1.24 (Fraud and Corruption) of the Consultants Guidelines.

Environmental and Social Safeguards

73. No safeguards are triggered for the AF of the project. For the Project, Financial Management and Procurement has been rated Satisfactory, and no safeguards have been triggered (the environmental category is rated “C”).

Dated Legal Covenants

74. The OF Project has been in compliance with all dated legal covenants. There are no overdue or qualified audit reports. The procurement plan and use of Project funds were reviewed in March 2013 in detail to clarify the current status of all contracts and unused funds. All contracts were signed as of March 2013. The IFMIS is used to record and report all Project related expenses through the General Ledger (GL) module. A full listing of all Project related spending was obtained from the IFMIS GL and these were mapped to relevant activities and categories. New covenants are listed below. 75. In order to minimize the risks in the development of technical solutions for the expansion and integration of IFMIS capabilities, several ongoing activities need to be completed successfully. The ongoing IFMIS migration should be completed in 2013 (operational acceptance in September - October 2013, full migration in November 2013), before the initiation of relevant AF activities. This will be included as new dated covenants, to ensure that improved software platform will be available before singing a new contract for IFMIS expansion. The following are the new dated covenants:

i. The Recipient shall provide satisfactory evidence to the Bank that the migration of IFMIS to the new platform (Epicor 9.0.5 operational acceptance) has been completed, no later than three (3) months from the effectiveness date.

ii. The Recipient shall recruit in accordance with the provisions of Section III of this Schedule, the external auditors referred to Section II.B.3 of Schedule 2 of this Agreement, no later than six (6) months from the effectiveness date.

iii. The Recipient shall not amend, extend, abrogate, repeal, suspend, waive, (including issuing any change order thereto) or otherwise fail to enforce, or permit to be amended, abrogated, repealed, suspended or waived, the IFMIS Phase III Contract, or any provision thereof without the prior written approval of the Association.

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Risks and Results

76. Overall risk is rated “high”, as the IFMIS AF includes several large IT contracts, and given the addition of two new beneficiaries (GBOS and Ministry of Energy). Completion of the ongoing IFMIS contract will be a good indicator for the MoFEA’s commitment and the supplier’s capacity to operationalize enhanced system capabilities through December 2013, as an important trigger for the next phase included in AF activities. Moreover, if funding is identified, the GoTG has requested to participate in the Greater than Leadership program for FMIS (GTL4FMIS) that could help the GoTG better manage adaptive implementation challenges tied to the IFMIS AF activities, by improving the efficacy and sustainability of the project and reducing the risk of delays (Annex 3).

77. With expanded activities to National Statistics and the Energy Sector, Project implementation risk is considered High, due to a larger number of counterparts and varying degrees of absorption capacity. This may complicate the Project management for the PCU and could risk the smooth implementation and disbursement of the Project. Strengthening the PCU capacity by deploying two additional staff for Financial and Administrative Management, and Monitoring and evaluation could help mitigate this risk. In particular, GBOS’ capacity is regarded as extremely low following a long period (decade) of neglect. However, the newly appointed Statistician General comes with extensive experience from the Central Bank of The Gambia, and given that there is a new focus by the GoTG and with increased attention and support, GBOS’ capacity is expected to improve. Close attention by the PCU at MoFEA on coordination with GBOS (as well as with NRS and the Ministry of Energy) is expected to help mitigate this risk. In addition, the organization of regular coordination meetings involving all counterparts including the issuing of brief minutes with action items will be proposed as a possible mitigation measure.

78. Another risk is associated with political economy challenges as the AF includes some potential sensitive reform agendas. The AF includes some of the reform agendas, potentially sensitive, such as integrating the revenue information systems, procurement module, and commitment controls and/or validating the HR database to reduce ghost workers. In addition, a recent and frequent change of major senior authorities could undermine sustained government commitment to the project. The project team will strengthen further collaboration and dialogues at the senior level in order to keep them engaged in the project implementation and monitoring. 79. One of the highest risks is associated with the sustainability of the IFMIS Project’s impact. This is dependent upon: (i) MoFEA’s ability to ensure a smooth handover of the IFMIS system at the end of the Project from the contractors to its own staff (correspondingly, the AF stresses the importance of strengthening the technical capacity of the MoFEA team during the transition period); and (ii) continued efforts by the Government to maintain Project initiatives after completion of the Project (correspondingly, the AF finances additional activities in order to sustain the Project’s accomplishments and impacts). The MoFEA and Treasury Department has developed a plan to complete the transfer of knowledge and skills from the IFMIS consultants to their staff and the Minister of MoFEA has approved it on August 1, 2013. Mitigation measures are built into the Project design, and will be implemented and properly monitored. Similarly, with the introduction of an ERMS for national records, training and change management will be critical to the sustainability of the system.

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Table 3: Risk Ratings

Risk Rating Risk Rating Stakeholder Risk Substantial Project Risk Substantial Design Moderate Implementing Agency Risk Social and Environmental Low Capacity Substantial Program and Donor Low Governance High Delivery Monitoring & Sustainability SubstantialOverall Preparation Risk Substantial Overall Implementation Risk High Project closing date

80. The closing date of the OF Project is December 31, 2013. The closing date of the proposed AF is December 31, 2018.

Project completion date

81. The completion date of the proposed AF is therefore June 30, 2018, six months prior to the closing date.

IDA Policy Exceptions/waivers

82. No IDA policy exceptions or waivers are required for the proposed AF activities.

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ANNEX 1: REVISED RESULTS FRAMEWORK AND MONITORING INDICATORS

Integrated Financial Management Information System Project

Additional Financing

Revisions to the Results Framework

PDO Current (PAD) Proposed change* Comments/Rationale for Change

To increase the Government of The Gambia’s capacity in public resource management.

(C) No change

PDO indicators Current (PAD) Proposed change* Comments/Rationale for Change I-1 The budget execution rate is kept above 90% (excluding donor-funded projects)

(C) No change

I-2 New indicator (N) Increased percentage of expenditures covered through IFMIS

To measure the IFMIS coverage and functionality that will be extended under AF

I-3 The number of months of accumulated arrears in payments to government suppliers is reduced

(R + V) Government contracts are recorded and managed through IFMIS to produce reliable data on all commitments, payments, and arrears.

Instead of measuring the delay in arrears (which is difficult to monitor with existing systems), the revised indicator is expected to provide reliable data on all contractual commitments, payments and arrears for monitoring the performance. Change of target value

I-4 Timely periodic publication of budget execution reports on the MoFEA web site

(R + V) Unit of measure changed: Monthly frequency and regularity of budget execution reports (plans vs. actuals); And, Format changed to Excel spreadsheet

Previous measure was the number of reports. To ensure regular monthly publication unit of measure (frequency) was clarified, and to improve accessibility format was changed.

I-5 New indicator (N) GDP data regularly & publicly made available

Reflection of the improvements in statistical capacity and systems and overall transparency in data reporting.

Intermediate Results indicators Current (PAD) Proposed change* Comments/Rationale for Change IR-1 IFMIS infrastructure available at the government sites

(R) IFMIS ICT infrastructure expanded and available at the government sites (Activity 1.2)

Reflection of the expansion of IFMIS ICT infrastructure.

IR-2 IFMIS Financials Modules migrated from Epicor version 7.3.5 to Epicor 9.0.5

(R) IFMIS migration to 9.0.5, system upgrades and interfaces completed (Activity 1.1)

Reflection of the expansion of IFMIS functionality and interfaces.

IR-3 IFMIS infrastructure available at the donor-funded projects

(R + V) IFMIS module to support donor funded projects is operational (Activity 1.1)

Improvement of the description of indicator + Change of target value

IR-4 Delays in debt service payment reduced after debt management system interfaced with IFMIS

(R + V) Delays in debt service payment reduced after debt management system is interfaced with IFMIS (Activity 1.1)

Improvement of the description of indicator + Change of target value

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Revisions to the Results Framework IR-5 Backlog in the reconciliation of government Bank accounts held at CBG are reduced

(V) Backlog in the reconciliation of government Bank accounts reduced (Activity 1.1)

Link with relevant activity displayed + Change of target value

IR-6 New indicator

(N) IFMIS Electronic Funds Transfer module is operationalized with the Central Bank systems and the TSA is available for the central government (Activity 1.1)

New activity

IR-7 New indicator (N) Delays in pension payment after HR Module integrated into the IFMIS (Activity 1.1)

New activity

IR-8 New indicator (N) Automation of records office processes at NRS and 4 pilot sites (Activity 1.4)

New activity

IR-9 Payroll and HR records (excluding security forces) in IFMIS validated,

(R) Payroll and HR records (excluding security forces) are validated through systems (Activity 2.1)

The target was achieved under the OF Project. It was revised to measure the new activity related to the expansion of HR Module.

IR-10 Number of public servants who are well-informed about the capabilities of IFMIS

(R + V) Number of government staff trained for the enhanced IFMIS system (Activity 3.1 + 1.3)

Improvement of the description of indicator + Change of target value

IR-11 Government’s reliance on external consultants to operate the IFMIS reduced

(R + V) Government’s transition plan to minimize the reliance on external consultants to operate the IFMIS is implemented (Activity 4.1)

Improvement of the description of indicator + Change of target value

IR-12 New indicator (N) Timeliness of submission of project implementation reports (Progress, M&E, FM, and Audit) (Activity 5.1)

New activity. There was no indicator to measure performance of PCU (Component 5)

IR-13 New indicator (N) Number of staff trained in Economics Statistics, including National Accounts (Activity 6.1)

New activity

IR-14 New indicator (N) Economic survey (Enterprises) is conducted (Activity 6.2)

New activity

IR-15 New indicator (N) Endorsement of action plan derived from energy strategy study. (Activity 7.1)

New activity

* Indicate if the indicator is Dropped (D), Continued (C), New (N), Revised (R), or if there is a change in the end of project target value (V).

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ANNEX 2: RESULTS FRAMEWORK AND MONITORING

Integrated Financial Management and Information System (IFMIS) Project

Project Development Objective (PDO):

Increase the Government of The Gambia’s capacity in public resource management.

PDO Level Results Indicators

D=Dropped C=Continue N=New R=Revised

Unit of Measure

Baseline 2013 Cumulative Target Values

Frequency Data Source/ Methodology

Responsibility for Data Collection

2014 2015 2016 2017 2018

I-1 The budget execution rate is kept above 90%

C Budget execution rate under IFMIS (%)

90

90

90

90

90

90 Annual

IFMIS Budget Monitoring

Reports

DNT of MoFEA

I-2 Increased percentage of central government expenditure covered through IFMIS

N

Percentage of central govt. exp. transactions captured through IFMIS

60 64 68 75 80 90 Annual MoFEA MoFEA

I-3 Government contracts are recorded and managed through IFMIS to produce reliable data on all commitments, payments, and arrears.

R

Production of detailed and reliable reports through IFMIS on all contractual commitments, payments and arrears.

No No No Yes Yes Yes Annual MoFEA MoFEA

I-4 Timely periodic publication of budget execution reports on the MoFEA web site

R

Frequency and regularity of budget execution reports (plans vs. actuals) in Excel

Ad hoc posting ofmonthly reports

Monthly publication of updated monthly reports,

with max 2 months lag

Monthly publication of updated monthly reports,

with max 2 months lag

Monthly publication of updated monthly reports,

with max 2 months lag

Monthly publication of updated monthly reports,

with max 2 months lag

Monthly publication of updated monthly reports,

with max 2 months lag

Monthly MoFEA MoFEA

I-5 GDP data regularly & publicly made available

N

GDP data regularly posted on the GBOS website

Annually Annually Semi-

Annually

Quarterly

Quarterly Quarterly Annually GBOS annual

report GBOS, MoFEA

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INTERMEDIATE RESULTS INDICATORS

PDO Level Results Indicators

D=Dropped C=Continue N= New R = Revised

Unit of Measure Baseline

2013

Cumulative Target Values Frequency

Data Source/ Methodology

Responsibility for Data Collection 2014 2015 2016 2017 2018

Component 1 - IFMIS rollout, interfaces and system training

IR-1 IFMIS ICT infrastructure expanded and available at the government sites (Activity 1.2)

R

Number of government sites with expanded IFMIS in operation

46 46 46 46 46 46 Annual Project M & E

Report DNT of MoFEA

IR-2 IFMIS migration to 9.0.5, system upgrades and interfaces completed (Activity 1.1)

R

Number of government sites migrated to IFMIS Epicor 9.0.5

46 46 46 46 46 46 Annual Project M & E

Report DNT of MoFEA

IR-3 IFMIS module to support donor funded projects is operational

(Activity 1.1) R

Number of donor-funded projects recorded and reported through IFMIS

4 6 8 10 12 15 Annual Project M & E

Report DNT of MoFEA

IR-4 Interface between CSDRMS and IFMIS is operational to automate the preparation of debt projections and the execution and reporting of debt payments, respectively (Activity 1.1)

R

Debt mgmt. system (CSDRMS) and IFMIS interface is used to exchange information on debt projections and execute all debt payments through IFMIS.

No Yes Yes Yes Yes

Yes

Annual Project M & E

Report Debt Dept.,

MoFEA

IR-5 Backlog in the reconciliation of government bank accounts held at the CBG reduced (Activity 1.1)

C

Number of months of backlog in the reconciliation of public accounts

12 1 1 0.5 0.5 0.5 Annual DNT annual

report MoFEA

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IR-6 IFMIS Electronic Funds Transfer (EFT) module is interfaced with the Central Bank systems and operationalized for Central Government and IFMIS interface for TSA is available (Activity 1.1)

N

IFMIS EFT is operational to record all Central Government’s revenues and payments via CB interface, and the IFMIS TSA interface is available

N N Y Y Y Y Annual Project M & E

Report MoFEA

IR-7 Delays in pension payment after HR Module integrated into the IFMIS (Activity 1.1)

N

Number of months of delays in pension payment

4 3 2 1 1 1 Annual Personnel

Management Office (PMO)

Personnel Mgt Office (PMO)

IR-8 Automation of records office processes at NRS and 4 pilot sites (Activity 1.4)

N

Number of offices using the Electronic Records Mgmt. System (ERMS)

0 0 3 5 5 5 Annually National Records

Service (NRS)NRS, MoFEA

Component 2 – New IFMIS activities

IR-9 Payroll and HR records (excluding the security forces) are validated through systems (Activity 2.1)

R

Number of Payroll and HR records validated through IFMIS

12,513 (2012

baseline reference)

13,000

13,500

14,000

14,500

15,000

Annual PMO report PMO

Component 3 - Communications and change management

IR-10 Number of government staff trained for the enhanced IFMIS system (Activity 3.1 + 1.3)

R

Number of Government staff trained for the enhanced IFMIS

603 650 700 750 750 750 Annual Project M & E

Report DNT of MOFEA

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Component 4 - Accounting and IT Capacity Building for Sustainability

IR-11 Government’s transition plan to minimize the reliance on external consultants to operate the IFMIS is implemented (Activity 4.1)

R

Total number of MoFEA / DNT staff trained for taking over the system management and ICT support roles from the consultants

5 15 20 25 25 25 Annual DNT annual

report DNT of MOFEA

Component 5 - Project Implementation Support

IR-12 Timeliness of submission of project implementation reports (Progress, M&E, FM, and Audit)

(Activity 5.1)

N

Timeliness of submission of all reports (progress, M&E, FM, and Audit)

N/A Y Y Y Y Y Quarter

PCU internal reports

PCU

Component 6 - Support to National Statistical Capacity Building

IR-13 Number of staff trained in Economics Statistics, including National Accounts (Activity 6.1)

N Number of new staff trained

0 6 10 15 20 20 Annual GBOS annual

report GBOS, MOFEA

IR-14 Economic survey (Enterprises) is conducted (Activity 6.2)

N Implementation of economic survey

N N Y Y Y

Y

Annual GBOS annual

report GBOS, MoFEA

Component 7 - Support for the Preparation of Energy Strategy Study

IR-15 Endorsement of action plan derived from energy strategy study.

(Activity 7.1)

N

Endorsement of action plan derived from energy strategy study

N

N

Delivery of the study

n/a n/a n/a Annual

Energy strategy

Ministry of Energy,

MoFEA

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ANNEX 3: OPERATIONAL RISK ASSESSMENT FRAMEWORK (ORAF) AND FM ARRANGEMENTS

Integrated Financial Management and Information System, Additional Financing

1. Project Stakeholder Risks

1.1 Stakeholder Risk Rating Substantial

Description:

Risk Management: The PCU will hire 2 additional qualified staff; Administrative and Financial Management Specialist and Monitoring and Evaluation Specialist /expert for additional components to strengthen implementation capacity. In addition, additional members will be included from GBOS and Ministry of Energy in the Inter-Ministerial Steering Committee and a Project Implementing Committee (PIC), in order to better coordinate the actions. The Bank team will be also strengthened with specialists from SD for the energy component and from AFR Chief Economist office for the statistics component in order to adequately design the project, and strengthen supervision and monitoring of the implementation status of each component.

A larger number of beneficiaries may complicate the project management for the PCU and risk the smooth implementation and disbursement of the Project.

Resp: Both Stage: Both Recurrent:

Due Date:

Frequency: Status: Not Yet Due

2. Implementing Agency (IA) Risks (including Fiduciary Risks)

2.1 Capacity Rating Substantial

Description: Risk Management: The PCU will hire 2 additional staff; Administrative and Financial Management Specialist and Monitoring and Evaluation Specialist to strengthen implementation capacity. In addition, additional members will be included from GBOS and Ministry of Energy in the Inter-Ministerial Steering Committee and a Project Implementing Committee (PIC), in order to better coordinate the actions. The Bank team will be also strengthened with specialists for the energy component and for the statistics component in order to adequately design the project, strengthen supervision and monitor the implementation status of each component.

The current PCU only with staff specialized in the IFMIS may be unable to adequately implement and manage a larger number of beneficiaries due to expanded activities to the national statistics and records, and the energy sector.

Resp: Client Stage: Preparation Recurrent:

Due Date:

Frequency: Status: Not Yet Due

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2.2 Governance Rating High

Description: Risk Management:

The lack of checks and balances in the political system overall poses some risks to project implementation in terms of political interference. The most common problem is the frequent removal and transfer of (senior) government officials, which can undermine sustained government commitment to projects.

The team will strengthen dialogues with senior officials in the government, in particularly, MoFEA and will supervise and monitor closely the implementation situation in order to ensure strong engagement of the beneficiaries and transparent implementation.

Resp: Client Stage: Both Recurrent:

Due Date:

Frequency: Status: Not Yet Due

3. Project Risks

3.1 Design Rating Moderate

Description: The project design is complicated due to the inclusion of several new activities and four different beneficiaries, instead of one, during the AF period. Also, some of the reforms such as integrating the revenue information systems, procurement module, and commitment controls in the IFMIS and/or validating the HR database to reduce ghost workers might be potentially sensitive. Additional components should be designed as simple as possible to ensure the successful completion of activities and obtaining practical results within the remaining period (about two years after the effectiveness of AF).

Risk Management:

Additional components were designed as simple as possible to ensure the successful completion of activities and obtaining practical results within the remaining period (about two years after the effectiveness of AF) and to avoid complex IT components in addition to ongoing IFMIS expansion. Given potentially sensitive reform agendas that might cause some political economy challenges, The team will strengthen dialogues with senior government officials to keep ensuring their engagement. Also the project team was enhanced to support the design (and implementation) of the AF activities, including the WBI (GTL4FMIS program to strengthen capacity of the MoFEA for problem solving and focusing on adaptive challenges), as well as the SCBTF and Africa regional statistics unit, and the energy sector team in the field. Regarding statistical capacity development, the team has initiated discussions with donor counterparts (AfDB and IMF) to enhance collaboration and coordination of Statistical capacity building activities in The Gambia, which will inform the IFMIS AF going forward.

Resp: Both Stage: Both Recurrent:

Due Date:

Frequency: Status: Not Yet Due

3.2 Social and Environmental Rating Low

Description: Risk Management:

No safeguard issues are triggered in this

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Project. Resp: Client Stage: Both Recurrent:

Due Date:

Frequency: Status: Not Yet Due

3.3 Program and Donor Rating Low

Description: Risk Management:

There are a few donors contributing to the PFM issue in The Gambia. None of these are expected to overlap with the current proposed project

The team will continue to engage actively in the sector and ensure that there is complementarity and synergies with other donor activities, especially with AfDB which is actively involved in the PFM through budget support and with the IMF, which has an ECF program with the GoTG.

Resp: Client Stage: Both Recurrent:

Due Date:

Frequency: Status: Not Yet Due

3.4 Delivery Monitoring and Sustainability

Rating Substantial

Description: Risk Management:

The sustainability of the project largely depends on: (i) MOFEA’s ability to ensure a smooth handover of the system at the end of the project from the contractors to its own staff; and (ii) continued effort by the Government to maintain project initiatives after completion of the project.

The MOFEA and Treasury department is currently developing a plan to complete the transfer of knowledge and skills from the IFMIS consultants to their staff and discussing the exit strategy. Mitigation measures are to take it into account in the project design, and to implement and properly monitor the implementation status.

Resp: Client Stage: Both Recurrent:

Due Date:

Frequency: Status: Not Yet Due

4. Overall Risk

Implementation Risk Rating: High

Description:

Comments:

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ANNEX 4: DETAILED DESCRIPTION OF PROJECT ACTIVITIES

Component 1 - Support for IFMIS Rollout, Interfaces, and System Training (US$3.34 million)

1. The Government of The Gambia (GoTG) initiated the implementation of Integrated Financial Management Information System (IFMIS) in early 2006. The IFMIS implementation was aimed at addressing the Government’s perennial problem of managing all its financial transactions in a manual environment, resulting in a ten-year backlog in the production of Government Accounts. A summary of the IFMIS development phases through several consecutive Bank funded projects since 2005 is included as Annex 6. The IFMIS development strategy and functional coverage included in various phases of the Project is also attached as Annex 7. Phase I activities were completed with some delay, and the pilot implementation of IFMIS started in January 2007 in six sites (Ministry of Finance and Economic Affairs, Treasury Directorate, Ministry of Basic and Secondary Education, Personnel Management Office, Gambia Revenue Authority, National Audit Office) to support the budgeting, management of payments and receipts, purchasing, cash management, general ledger, payroll functions.

2. The IFMIS was rolled-out to all the remaining Government Ministries and Departments as part of Phase II implementation, going live in January 2011. The system was interfaced with the Core Banking Module of the Central Bank of The Gambia, providing the Treasury Directorate with online access to all Government bank account balances and statements. This facilitates the uploading of the bank statements to the IFMIS for automated bank reconciliations. The implementation of the IFMIS in all Government Ministries, Departments/ Agencies has led to improvement of the budget execution rate to 97% by the end of 2012. In addition, the backlogs in the preparation of account have now been cleared completely as of December 2012.

3. Remaining challenges in Phase III of the IFMIS implementation include the expansion of system capabilities and scope to support embassies, self-accounting projects, sub-treasuries and sub-vented agencies, the improvement of core public resource management functions, and the strengthening of institutional capacity. The migration of IFMIS to the latest version of Epicor 9 web-based platform is expected to be completed in 2013, to form the basis for planned expansion and full scale roll-out. This component will support the third and last phase of IFMIS development, including the transition to multi-year budget framework, cash and debt management, treasury single account operations, commitment control, asset/inventory management, personnel management, pensions, payroll, and interfaces with other public finance systems, as well as the relevant change management activities to ensure the sustainability of enhanced systems. The new capabilities are expected to increase the coverage of budget expenditures, and improve the efficiency of asset management (which could generate significant savings by improving overall fiscal account holdings) and cash management (through the extension of IFMIS to all self-accounting/donor-funded projects which account for about 40% of budget spending). Each component activity is linked with a separate procurement package to cover advisory support, capacity building, as well as system development needs. Details of these activities are presented below, and correspond to the following respective Parts of the Project description (in parenthesis) as stipulated in Schedule 1 of the Financing Agreement (FA):

Activity 1.1: Expansion of existing IFMIS capabilities and scope (FA Part 1.1, 1.3 and 1.7)

4. This activity will support the extension of IFMIS functional capabilities and scope by developing additional modules and interfaces as described below:

(i) Extension of IFMIS to include all self-accounting (donor-funded) projects with a unified chart of accounts:

Various self-accounting projects are maintaining different accounting and financial reporting systems to submit quarterly returns to the Treasury Directorate for consolidation into the national accounts. However, this practice has been a challenge as most of them fail to submit the returns on a

31

timely basis, coupled with the lack of standardization. A pilot for the extension of IFMIS to self-accounting projects has been undertaken (in two pilot ministries) as a part of ongoing IFMIS II and the AfDB funded ISEFG II, and proved successful in supporting the needs of both projects.

The extension of this capability to all the self-accounting (donor-funded) projects will be helpful in ensuring the timely completion of reliable government financial statements, thus enabling the GoTG meet the statutory, as well as International Public Sector Accounting Standards (IPSAS) requirements of reporting. It will also bring about much needed standardization in terms of classification (chart of accounts) and timely reporting. The inclusion of donor funded projects will also facilitate the use of IFMIS as a “country system” to meet the financial management and accounting requirements in Bank funded projects in the future.

(ii) Extension of IFMIS to support the financial transactions and reporting for embassies and sub-treasuries:

Currently, the Embassies and Sub-treasuries are not connected to the IFMIS. The extension of the system to all the sites will provide online processing of financial transactions and automatic update accounts, as well as speedy production of financial reports.

(iii) Extension of pilot implementation for multi-year budget framework:

The IFMIS Budgeting module (Active Planner 7.3.5) was upgraded to the latest version (Open Integration Active Planner) that supports multi-year budgeting, together with other advanced features. This platform will be used to support/test multi-year budgeting in six pilot sites (Ministry of Finance and Ministry of Secondary and Basic Education). This platform will be extended to four additional line ministries (Ministry of Agriculture, Works, Health, and Tourism) starting from 2015. Necessary legal and regulatory changes and training activities will be completed in parallel, through other component activities (70% of the budget volume is expected to be covered).

(iv) Developing interfaces with the Tax Administration Systems (Asycuda++ and GamTaxNet):

Asycuda++ application software supports customs operations for declarations of imports, valuation and receipting, whereas the GamTaxNet handles similar functions for domestic taxes. The interface between these tax administration systems and the IFMIS system will enable the IFMIS revenue database to be automatically updated from the receipting modules of both Asycuda++ and GamTaxNet and avoid the duplication of efforts of revenue data capturing in IFMIS. This would also enhance the revenue reconciliation process.

(v) Implementing asset management module:

IFMIS asset management module will be activated (already purchased together with the licenses) to capture the details of government assets purchased and maintain a centralized database of important assets by all central government entities. Detailed requirements of this module are being developed by the MoFEA with support from the project consultants.

(vi) Operationalizing the procurement (purchasing) module:

Existing procurement (purchasing) module will be expanded to cover the needs of additional government entities (i.e. self-accounting projects, embassies, and sub-treasuries) through new centralized web-based IFMIS platform. Currently, this module covers the goods contracts only. It will be expanded to a broader commitment control module including the contracts for services and works as well. In the future, this module is expected to be linked with the procurement system for budget controls.

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(vii) Initiate TSA operations through Electronic Funds Transfer interface with the Central Bank:

IFMIS system interface with the Central Bank systems will be used to carry out electronic payments in order to achieve instant clearing of government payments and help gradual reduction and eventual elimination of cheque payments. This interface will also be used to capture timely (daily) information about all government revenues collected under the Treasury Single Account (TSA). A secure electronic payment center will be established in the MoFEA building to automate TSA operations and monitor all revenues/payments on a daily basis. Transition to centralized operations (avoiding idle balances at private banks and paying for transactions fees, if necessary) is expected to result in daily collection of all revenues under the TSA account to be opened in the Central Bank.

(viii) Implementation of Human Resources Management Information System (HRMIS) within IFMIS:

The Personnel Management Office (PMO) has the responsibility to manage the human resources of the entire civil service. Personnel records of the entire civil service are currently maintained by PMO using the separate HRIS system. This system however is characterized by a number of weaknesses.

a) Only basic HR information such as job title, date of appointment and salary grade is kept, and no HR information on training or service records are maintained in the system. There is therefore a lack of comprehensive information on the HR activities available in the system.

b) The current HRIS system has limited reporting capabilities. These records are only updated on a regular basis based on transactions, such as appointments, promotions and termination, approved by the PSC and routed to the HRIS division through the Personnel Management Division.

c) Personnel data relating to staff appointed at the level of the Departments is not captured on the system.

d) Poor external and internal PMO information flows indicate that the civil service personnel records captured in the system are not up-to-date and therefore not very useful in facilitating effective decision making.

e) Poor technical support and maintenance of the system (resulting in system crashes and delays in recovering data from the system).

f) Lack of direct link of the personnel database and the payroll in order to ensure data consistency and integrity. Weak control of the changes to personnel records and the payroll data.

In order to address these challenges, a new HRMIS module will be developed (for recruitment management, training, administration, and performance appraisal) for the entire government, and fully integrated with the government payroll system (Nas.DNA) of the IFMIS. The implementation will be based on the existing legal and regulatory framework, with provision for enhancement in the future, should the need arise. The MOFEA is expected to develop the detailed technical requirements and approve necessary legislation to ensure the regular (monthly updates) use and sustainability of the new HRMIS linked with the Payroll module.

(ix) Implement Electronic Records Management (within IFMIS):

The IFMIS has the capability of maintaining electronic copies of supporting documents to payments. The implementation of the electronic record keeping system called Dock Link (a part of Epicor suite) is essential to address the issue of missing documents for financial transactions.

(x) Increasing the number of IFMIS users through additional licenses:

Additional user licenses are needed for Epicor 9, Nas.DNA, HRMIS, procurement and asset management modules for the extension of IFMIS capabilities to new sites.

33

All of these activities are expected to be implemented by amending the existing contract with the IFMIS supplier (SoftTech) to ensure the timely completion of Phase III and reduce the overall cost of implementation. Estimated cost of these IFMIS functional enhancements is US$1.442 million.

Activity 1.2: Capacity expansion of IFMIS system centers and ICT infrastructure (FA Part 1.1, 1.2, and 1.8)

5. The capacity of IFMIS information and communication technology (ICT) infrastructure and system centers (main data center and business continuity/disaster recovery center) will be improved through this activity, in order to support the expansion of IFMIS functionality and scope. The technical requirements for necessary capacity increases in central servers, data storage units, network connectivity, information security, system management and monitoring, and technical support will be defined by the MoFEA with support from the IFMIS supplier (SoftTech) and consulting firm to be selected under Activity 1.3. Improvements in engineering systems (fire alarm and extinguishers, access control, remote monitoring) and user management are also included. This activity is expected to be implemented through an International Competitive Bidding (ICB) package, with an estimated cost of US$1.20 million. The procurement documents will be prepared by the MoFEA and the consulting firm to be selected under Activity 1.3.

Activity 1.3: Support for system integration, change management and training (FA Part 1.4, 1.5, 1.6 and 1.9)

6. A consulting firm will be selected to provide advisory support during the expansion of FMIS and implementation of relevant change management activities. The consultants are expected to review the current status of PFM reforms, perform an IT Audit, identify gaps and suggest possible improvements in legislation, procedures, organizational structure, staff skills, IT infrastructure, information security, and oversight mechanisms. The international competitive bidding documents for the improvement of ICT infrastructure (Activity 1.2) will also be prepared during this activity, and the consultants will support the MoFEA during contract implementation of Activity 1.1 and 1.2 as verification and validation experts as well. Additional training and advisory support will be provided during IFMIS expansion to ensure the sustainability of new platform after the completion of the AF activities. This consultants will assist in the development and implementation of change management plan for the new IFMIS platform, as well as the organization of dissemination and training activities to improve the skills and awareness of all stakeholders through a Quality and Cost Based Selection (QCBS) process (estimated cost: US$0.518 million).

Activity 1.4: Development of the Electronic Records Management System (ERMS) (FA Part 1.10)

7. This activity will support the establishment of Electronic Records Management System (ERMS) to improve transparency and efficiency in accessing information and to prevent the loss of national records. With an aim to support the new E-Government initiatives as a key priority of the GoTG, the AF will provide support for the creation of an ERMS for national public records, which are currently carried out manually using physical files and paper-based search systems to track, store and retrieve files. The proposed system will allow all the records at all Government agencies to be managed and maintained at head office. This system would be a highly scalable system that would allow NRS to perform its primary mandate (as defined by the act of parliament in 1993) to manage the public records for all government institutions. The NRS has already developed a system design document with detailed functional and technical requirements, and a preliminary cost estimate. This will be improved with support from the IFMIS system integrator (to be selected for Activity 1.3). The AF will support the automation of core business processes through web-based application software (relevant ICT infrastructure components are included in Activity 1.2) development and related advisory support including (estimated cost: US$0.260 million):

34

(i) the design and development of application software for the new ERMS;

(ii) all relevant consultancy services for server configuration, installation of software, development of classification and electronic indexing schemes, development of application program interfaces, development of a security framework, encryption scheme and audit; and

(iii) capacity building for the management of the new records system, including general training of NRS staff and the more extensive training of a core NRS team on database management and system maintenance.

8. The MoFEA has approved the transition plan for strengthening internal capacity and take over key system management and support roles from the project consultants by the end of 2013. Existing and new project team members have begun to work as government staff starting from July 2013. The MoFEA specialists are expected to complete this transition and start maintaining the system in July 2013, before the implementation of Activity 1.1. Transfer of know-how and skills should be completed during Phase III of the IFMIS implementation to ensure the sustainability of new web-based platform. Additional professional training and capacity building support in accounting and information technology will be provided through this component to contribute the development of necessary accountancy and IT skills of Government staff further.

Component 5 – Project Implementation Support: US$0.46 million

9. The same Project Coordination Unit (PCU) in the MoFEA will continue to implement donor financed projects related to public finance reforms including the IFMIS project. The unit consists of three key staff; a project coordinator, a procurement officer and an accountant. Given expanded activities in the AF, this component will also provide financial support for recruitment of two new staff; an Operations/Monitoring and Evaluation Specialist, a Financial Specialist (Administration and Financial Management Specialist). Additionally, the existing Procurement Specialist will be replaced with someone more competent.

10. The IFMIS AF will take over financing of the PCU from January 1, 2015 onwards, when the AfDB will complete ISPEFG II that is currently largely financing the PCU. It mainly consists of top-up for staff remunerations, office equipment, audit and other miscellaneous expenditures.

Component 6 - Support to National Statistical Capacity Building: US$0.7 million

11. This new component aims at supporting statistical capacity development for more reliable and timely macroeconomic reporting for improved policy formulation and greater transparency. This will help the GoTG monitor economic activity and progress toward poverty reduction objectives identified in the Program for Accelerating Growth and Employment (PAGE: 2011-2015) and support improved policy alignment with the 2020 Vision objectives. Additionally, improved data quality and reporting provide an opportunity for transparency and accountability. Various factors have contributed to poor data quality, including insufficient resources to collect data (e.g. the last economic census was last conducted in 2004), limited technical capacity in national accounts, and outdated methodologies and technological tools at GBOS. The AF will support the following activities:

(i) The main activity under component 6 is the funding of advisory support for 24 months to lead the organizational restructuring and development of GBoS. A focus on building capacity in the economic statistics, including the National Accounts, of GBoS will be of principal importance. More specifically, the advisory support will be tasked with reviewing the organizational structure, human resources and skills, the national statistical development strategy, the existing inventory of data sets/systems, and partnerships within The Gambia’s National Statistics System and externally with donors. The advisory support will also be commissioned to provide strategic advice, including the preparation of a roadmap for GBoS over the short, medium and long-term. Furthermore, the advisory

35

support will be responsible for identifying training needs, designing a training program, and for coordinating and directly providing some of the training. This will include reviewing the databases used for National Accounts and guiding the work to update them accordingly, as well as updating the methodologies. These activities will contribute to a more organized Government statistical agency with improved capacity to produce reliable, consistent and timely national account statistics.

(ii) Financing for 12 months of scholarship for master’s degree training for two GBoS staff in the area of economics and statistics to improve the technical capacity to support enhanced service delivery.

(iii) Financial support for conducting an economic survey (economic census/enterprise/production) and for data dissemination. This will help feed into national accounts. And,

(iv) Financing the acquisition of software used for Economic Surveys, benefiting from the recommendations of the first activity.

12. To complement these activities, separately from IFMIS AF, GBoS is also applying for support from the Trust Fund for Statistical Capacity Building (TFSCB) to providing short-term training. The TFSCB supported training would be in various areas, including in National Accounts and Economic statistics, to improve technical expertise of GBoS staff. The overall purpose for the short-term training is to develop staff capacity to produce various statistical data sets and make them publicly available on regular basis. Other short-term training in the areas of household surveys may be provided through another trust fund.

Component 7 – Support for the Preparation of Energy Strategy Study: US$0.5 million

13. This new component aims at helping the GoTG with the development of a national energy strategy to help improve the policy framework for the sector and the utility's financial management for better service delivery, which in turn should support the achievement of growth and poverty reduction objectives. The first part of the activity involves the preparation of an energy sector strategy, which will take stock of the recent studies in the electricity sector, complement the current diagnoses with an assessment of the hydrocarbon sub-sector and its impact on electricity and the Government’s finances, with the objective to propose a clear road-map for policy makers.6 The second part of the activity will focus on the utility’s finances and financial management system with an aim to: (i) propose a financial management system that will ensure that the three services of NAWEC (Water, electricity and Sewerage) can be accounted separately; (ii) make recommendations to reduce cost on these cost elements that have the most dramatic impact on the utility’s financial viability (e.g., fuel); and (iii) identify clear areas for capacity building for NAWEC staff in financial management. Improving the utility’s finances will help pave the way for increased private (foreign and domestic) participation in the sector to help meet the country’s surging energy needs. Participation of the private sector could potentially help diminish the sector’s burden on public balances (i.e., through a further reduction of obligations due to power sector arrears to the government).

6 This should help the Government prepare a policy statement for the sector and an action plan with an indicative budget and timeline. Formal adoption of the policy will help creating the required environment for investment.

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ANNEX 5: REVISED ESTIMATE OF PROJECT COSTS

The Gambia - IFMIS Additional Base Costs Cost 2014 2015 2016 2017 2018 Subtotal

Project Totals >>> 2,156,565

2,222,995

433,460

89,740 97,240

5,000,000

1. Support for IFMIS Rollout, Interfaces and System Training 1,265,395

1,850,885

223,720

- -

3,340,000

1.1. Expansion of existing IFMIS capabilities and scope 826,315

615,515

-

- -

1,441,830

1.2. Capacity expansion of IFMIS system centers and ICT infra 134,750

985,250

-

- -

1,120,000

1.3. Support for system integration and change management 120,330

195,620

202,220

- -

518,170

1.4. Development of ERMS 184,000

54,500

21,500

- -

260,000

5. Project Implementation 84,170

99,110

89,740

89,740 97,240

460,000

5.1. Project Coordination Unit 19,800

58,440

58,440

58,440 58,440

253,560

5.2. Operational and Logistics 64,370

33,170

23,800

23,800 23,800

168,940

5.3. Audit -

7,500

7,500

7,500

15,000

37,500

6. Support to National Statistical Capacity 307,000

273,000

120,000

- -

700,000

6.1. Advisory support for statistical capacity 113,000

222,000

109,000

- -

444,000

6.2. Support for economic survey 143,000

-

-

- -

143,000

6.3. Training and software for statistical capacity building 51,000

51,000

11,000

- -

113,000

7. Support for the Preparation of Energy Strategy 500,000

-

-

- -

500,000

7.1. Support for the energy strategy 500,000

-

-

- -

500,000

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ANNEX 6: REVISED IMPLEMENTATION ARRANGEMENTS AND SUPPORT

Project Institutional and Implementation Arrangement

1. Implementation arrangements of the original IFMIS Project will be maintained under IFMIS AF. The existing arrangements provide for the MoFEA to be the responsible Ministry, as designated by the GoTG, and it will provide oversight and support for Project implementation. The Permanent Secretary (PS) of MoFEA also chairs the IFMIS Inter-Ministerial Steering Committee, which includes representatives from several ministries and agencies, such as The Gambia Revenue Authority and the National Audit Office. Also, a Project Implementing Committee (PIC) and a Project Coordination Unit will be maintained within MoFEA, with responsibilities and procedures. Since both committees have been regularly meeting and well managing the project over the last 2 years to monitor the state of play of the Project, these coordination mechanisms will be maintained under the AF. The additional members will be included from the new beneficiaries of IFMIS AF in NRS, GBOS, NAWEC and Ministry of Energy.

2. However, staffing of the PCU will be strengthened due to an increased number of new activities. The current PCU was established as the core project management unit in the MoFEA responsible for all PFM related projects in The Gambia but has been operating with an unusually small team of three, comprised of the Coordinator, the Procurement Specialist and an Accountant. The PCU will be expanded to include an Administration and Financial Manager and a Monitoring and Evaluation/Operations Specialist in order to strengthen implementation capacity and better manage the expanded activities. The Project will take over financial support to PCU from AfDB from January 2015 onwards when their ISEFG project will be completed. However, the current scale of top-up to salaries for the PCU staff under the AF will be maintained. The Project Implementation Manual (PIM) was updated prior to the negotiation of AF by taking into account the expanded activities and new beneficiaries.

Chart 1. Revised Implementation mechanism

Project Coordinator

M&E Specialist*

Procurement Specialist

Accountant

Financial and Administration

Manager*

IFMIS Project Implementing Committee (PIC) New members from GBOS &Min Energy

Oversight and Policy Advice for the project

Project Implementation Unit (PIU) in the MoFEA

IFMIS Inter-Ministerial Steering Committee New members from GBOS &Min Energy

*New posts

Supervision of the project

Implementation of the project

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Financial Management, Disbursements and Procurement

3. A financial management assessment of the PCU of the MoFEA, the main implementing unit for the Integrated Financial Management and Information System Project-Additional Financing (IFMIS-AF), was conducted. The objective of the assessment was to determine whether the PCU/MoFEA has adequate Financial Management (FM) arrangements in place to ensure that the Project funds will be used for the purposes intended in an efficient and economical manner. The FM assessment considers the degree to which (a) the budgeted expenditures are realistic, prepared with due regard to relevant policies, and executed in an orderly and predictable manner, (b) reasonable records are maintained and financial reports produced and disseminated for decision-making, management, and reporting, (c) adequate funds are available to finance the Project, (d) there are reasonable controls over Project funds, and (e) independent and competent audit arrangements are in place.

4. The assessment complied with the Financial Management Manual for World Bank-Financed Investment Operations that became effective on March 1, 2010.

5. The existing FM team, comprising of an Accountant, has the minimum World Bank requirement to execute the FM activities of the Project. However, to allow the Director (Coordinator) of the PCU to delegate some responsibilities in order to address the increased demands of the project, it was agreed that the project will support the PCU with additional staff, including a Financial Specialist (Administration and Financial Manager) who will support the Coordinator on Financial management, Administration and Contract Management activities for all projects managed by the PCU, under the terms of reference and conditions acceptable to the World Bank.

FINANCIAL MANAGEMENT ARRANGEMENTS

INTERNAL CONTROL

6. The existing Accounting Procedures Manual will be updated to document the financial management arrangements including internal controls, budget process, assets safeguards, and roles and responsibilities of all stakeholders.

BUDGETING

7. The budget cycle process which is clearly described in the existing Accounting Procedures Manual of the PCU/MoFEA will be used for the IFMIS-AF.

ACCOUNTING

8. The IFMIS-AF will rely on the financial and accounting procedures of the IFMIS Project. Project accounts will be maintained on a cash basis, supported with appropriate records and procedures to track commitments and to safeguard assets.

DISBURSEMENT

Disbursement Methods

9. The project will use the transaction-based disbursement procedures, i.e., replenishment, direct payment, reimbursement, and special commitments.

Designated Account

10. The designated account will be located in the Central Bank of The Gambia and managed by the PCU/MoFEA. The currency of the designated account will be the US Dollar and the allocation will cover

39

approximately four (4) months of expenditures. The Designated Account will be managed according to the disbursement procedures described in the Accounting Procedures Manual and the Disbursement Letter.

Monthly replenishment applications

11. The designated account will be replenished through the submission of withdrawal applications on a monthly basis by the PCU/MoFEA, which will include reconciled bank statements and other documents as may be required. The funds flow arrangements are schematized in the figure below.

Figure 1: Funds flow arrangements

Funds flow

Documents flows

Withdrawal applications

FINANCIAL REPORTING

12. Interim Un-audited Financial Reports (IFRs) would be prepared on a quarterly basis. The IFR will include sources and uses of funds by project expenditures classification. It will also include a comparison of budgeted and actual project expenditures (commitment and disbursement) to date and for the quarter. The PCU/MoFEA will submit the IFRs to the Bank within 45 days following the end the calendar quarter.

13. The PCU/MoFEA will produce Annual Financial Statements, and these statements will comply with laws of The Gambia and World Bank requirements. These Financial Statements7 will comprise:

- A Statement of Sources and Uses of Funds, - A Statement of Commitments, - Accounting Policies Adopted and Explanatory Notes,

7 It should be noted that the project financial statements should be all inclusive and cover all sources and uses of funds and not only those provided through IDA funding. It thus reflects all program activities, financing, and expenditures, including funds from other development partners.

IDA Washington Credit Account

Suppliers

Designated Account – Central Bank of The Gambia

PCU/MoFEA

40

- A Management Assertion that project funds have been expended for the intended purposes as specified in the relevant financing agreements.

EXTERNAL AUDIT

14. The Financial Agreement will require the submission audit reports of financial statements for the Project to IDA. Each such audit of the Financial Statements shall cover the period of one fiscal year of the Recipient.

15. External auditor with qualification and experience satisfactory to the Bank will be appointed to conduct audit of the project’s financial statements.

16. A single opinion on the Audited Financial Statements in compliance with International Standards on Auditing (ISA) will be required.

17. The external auditor will prepare a Management Letter giving observations and comments, and providing recommendations for improvements in accounting records, systems, controls and compliance with financial covenants in the Financial Agreement.

18. The audited Financial Statements shall be furnished to the Bank not later than six months after the application deadline. The table below summarizes the auditing requirements:

Audit report Due Date Financial Statements Management letter

End of June

Financial Management Action Plan

ACTION When By whom

1. External audit Recruitment of an external auditor

Six (6) months after

effectiveness

PCU/MoFEA

Conclusion of the assessment

19. The conclusion of the assessment is that financial management arrangements meet the Bank’s minimum requirements under OP/BP10. The overall fiduciary risk rating is assessed as moderate once the mitigation measures are implemented.

Procurement 20. The procurement activities for the Additional Financing will be conducted using the existing institutional arrangement of the original IFMIS. Hence the PCU will be maintained within MoFEA. The PCU staff is well versed in the IDA procedures, and has handled procurement under previous and on-going IFMIS phases. With this background experience, it is expected that the sum of expertise gained will highly benefit to the Additional Financing, and will help mitigating the residual risks that may exist. In addition, except for the procurement officer, who did not perform well, PCU comprises a qualified team including a Program Coordinator as well as an accountant. It is expected to expand the PCU staff by recruiting a Financial Specialist (Administration and Financial Management Specialist) and a Monitoring and Evaluation/Operations Specialist, in order to strengthen implementation capacity and better manage the expanded activities. Thus, the existing functions would remain appropriate, subject to the recruitment of a qualified new procurement officer.

41

21. An assessment of the capacity of the MoFEA PCU in charge of procurement was carried out by IDA in May 2013 by the Bank’s Senior Procurement Specialist. The assessment, which was an update of the assessment for the IFMIS II, reviewed the organizational structure for project implementation and the interactions between the project staff responsible for procurement and other technical staff and stakeholders during project implementation.

22. Most of the issues and risks concerning procurement for the implementation of the AF have been identified. These includes: i) the unsatisfactory performance of procurement officer, ii) the interactions between the PCU and the other new beneficiaries (GBOS, NRS, and Ministry of Energy) may affect negatively the procurement processes.

23. Corrective measures have been agreed. The measures are: i) The PCU will hire a qualified procurement specialist to handle the procurement during Project implementation, and who will assist the PCU in contract management. However, given the limited number of contracts, the PCU may also consider the possibility of hiring a qualified procurement consultant on a part time basis; ii) the interactions between PCU and other beneficiaries need to be closely monitored so as to ensure timely submission of procurement documents (ToRs, Technical Specifications, inputs for bidding documents, etc.) to the PCU.

24. Procurement for the proposed Additional Financing will be carried out in accordance with the World Bank’s relevant guidelines. These are; “Guidelines: Procurement of Goods, Works, and Non-Consulting Services under IBRD Loans and IDA Credits & Grants” dated January 2011 (Procurement Guidelines), and “Guidelines: Selection and Employment of Consultants under IBRD Loans and IDA Credits & Grants” by World Bank Borrowers dated January 2011 (Consultants Guidelines).

25. The procurement procedure to be followed for National Competitive Bidding shall be the open tendering set forth in the Gambia Procurement Act 2001 provided, however, that such procedure shall be subject to the provisions of Section I of Financing Agreement and Paragraphs 3.3 and 3.4 of the “Guidelines for Procurement of Goods, Works, and Non-Consulting Services under IBRD Loans and IDA Credits & Grants by World Bank Borrowers” (January 2011) (the “Procurement Guidelines”) and the following additional provisions:

(i) Prospective bidders will be provided four weeks, from the date of publication of the invitation to bid or the date of availability of the bidding documents, whichever is later, for the preparation and submission of bids;

(ii) Bidding documents acceptable to the Association shall be used, and shall be prepared so as to ensure economy, economy, efficiency, transparency, and broad consistency with the provisions of Section I of the Procurement Guidelines;

(iii) Invitation for bids will be advertised in a national newspaper of wide circulation, or in the official gazette provided that it is of wide circulation, or on widely used website or electronic portal with free national and international access;

(iv) Bids shall submitted in a single envelope; (v) bid evaluation criteria, bidder’s qualifications criteria, and the contract award criteria shall be

clearly specified in the bidding documents; (vi) No margin of preference shall be granted to domestic bidders; (vii) Eligible bidders, including foreign bidders, shall not be excluded from the competition; (viii) The procedures will include the publication of the results of evaluation and of the award of the

contract;

42

(ix) The bidding document and contract as deemed acceptable by the Association shall include provisions stating the Bank’s policy to sanction firms or individuals, found to have engaged in fraud and corruption as defined in the Procurement Guidelines; and

(x) In accordance with the Procurement Guidelines, each bidding document and contract financed out of the proceeds of the Financing shall provide that bidders, suppliers and contractors, and their subcontractors, agents, personnel, consultants, service providers, or suppliers, shall permit the Association to inspect all accounts, records, and other documents relating to the submission of bids and contract performance, and to have them audited by auditors appointed by the Association. Acts intended to materially impede the exercise of the Association’s inspection and audit rights provided for in the Procurement Guidelines constitute an obstructive practice as defined in the Guidelines.

26. Provisions Applicable to Procurement of Goods and Consultants’ Services initiated prior to the date of this Agreement. Notwithstanding the terms and conditions of the Section III (Procurement) of this Schedule 2 to the Financing Agreement: (i) to the extent the Initiation of Procurement Process in respect of goods and services to be financed out of the proceeds of the Financing occurred prior to the date of this Agreement; and (ii) there are no proceeds remaining under the Original Financing to finance such goods and services; then, on an exceptional basis only and subject to the Association’s prior no-objection, Section III of this Schedule shall not apply to the procurement of such goods and services; provided, however, that the provisions of Section III (Procurement) of Schedule 2 to the Original Financing Agreement, as they read at the time of such Initiation of Procurement Process, shall apply to the procurement of such goods and services.

27. The overall project risk for procurement is substantial, even if there are a few procurement activities. The Procurement Plan (Annex 6) was agreed with the GoTG on August 6 as follows;

I. GENERAL 1. Project information: Country: The Gambia Project name: Integrated Financial Management Information System Project - Additional Financing

Borrower: The Government of The Gambia Loan/Credit No.: P132881 Project Implementing Agency (PIA): Ministry of Finance and Economic Affairs

2. Bank’s approval date of the procurement plan: Original: August 6, 2013 Revision: -

3. Date of General Procurement Notice: December 15, 2013 4. Period covered by this procurement plan: September 30, 2013 –December 31, 2018

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II. GOODS AND WORKS AND NON-CONSULTING SERVICES. 1. Prior Review Threshold: Procurement Decisions subject to Prior Review by the Bank as

stated in Appendix 1 to the Guidelines for Procurement:

Procurement Method Prior Review Threshold Comments

1. ICB and LIB (Goods) US$300,000 ICB and LIB for goods will be used for US$300,000 and above

2. NCB (Goods) US$300,000 NCB for goods will be used for less than US$300,000

3. ICB (Works) US$3,000,000 No works is expected under the financing

4. NCB (Works) US$3,000,000 No works is expected under the financing

5. ICB (Non-Consultant Services), if any US$300,000 ICB for non-consultant services will be used for US$300,000 and above

6. NCB (Non-Consultant Services) On a case by case basis NCB for non-consultants services will be used for less than US$300,000

7. Shopping = or >US$50,000 and the first two contract under

US$50,000

Shopping for works, goods and non-consultants services, will be used for less than or equivalent to US$50,000. If more than US$50,000, prior clearance is needed from The Bank with relevant justifications. The cost estimate will not exceed US$100,000.

2. Prequalification. Bidders for _____________ shall be prequalified in accordance with the

provisions of paragraphs 2.9 and 2.10 of the Guidelines [not applicable].

3. Proposed Procedures for Community Driven Development (CDD) Components (as per paragraph. 3.17 of the Guidelines: [not applicable ].

4. Reference to (if any) Project Operational/Procurement Manual: POM will include a

procurement section to reflect the key aspects of the procurement plan. 5. Any Other Special Procurement Arrangements: No advance procurement or retroactive

financing.

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6. Procurement Packages with Methods and Time Schedule

Ref. No.

Contract (Description)

Estimated Cost (US$)

Procurement Method

Prequalification (yes/no)

Domestic Preference

(yes/no)

Review by Bank (Prior / Post)

ExpectedBid-

OpeningDate

Comments

DC-1 Expansion of existing IFMIS capabilities and scope

1,442,000 Direct Contracting

No No Prior Feb 2014 Continuation of ongoing SoftTech contract (for IFMIS migration) to expand the scope and functions

ICB-1 Capacity expansion of IFMIS system centers and ICT infrastructure

1,120,000

ICB No No Prior Apr 2015

SH-1 Software for GBoS

33,000 Shopping No No Post Jan, 2014

SH-2 Vehicle purchase (tbc)

45,000 Shopping No No Post Mar 2014

III. SELECTION OF CONSULTANTS 1. Prior Review Threshold: Selection decisions subject to Prior Review by Bank as stated in Appendix 1 to the Guidelines Selection and Employment of Consultants:

Selection Method Prior Review Threshold Comments 1. Competitive Methods (Firms) US$300,000

And the first contract under QCBS irrespective of its cost

estimate

2. Single Source (Firms) All, irrespective of the cost estimate All

3. Individual Consultants

= or >US$100,000 None

4. Single source for Individual Consultants All, irrespective of the cost estimate

None

5. Contracts for specific assignments such as contracts for the elaboration of manual of the project implementation and the manual of procedures, contracts for monitoring and evaluation assignments; contracts for financial assistance assignments; contracts for financial audit; contracts for technical audit; contracts for environmental and social issues; contracts for legal assignments

All, irrespective of the cost estimate

The review of those contracts are not based on the selection methods; but due to their sensitivity, they will be subject to prior review

45

2. Short list comprising entirely of national consultants: Short list of consultants for services, estimated to cost less than $200,000 equivalent per contract, may comprise entirely of national consultants in accordance with the provisions of paragraph 2.7 of the Consultant Guidelines. 3. Any Other Special Selection Arrangements: 4. Consultancy Assignments with Selection Methods and Time Schedule

Ref. No.

Description of

Assignment

Estimated

Cost (US$)

Selection Method

Review by Bank (Prior / Post)

Expected Proposals

Submission Date

Comments

QCBS-1 Financial Audit 38,000 QCBS Prior Jan 2014 QCBS-2 Support for change

management and training during IFMIS implementation

518,000 QCBS Prior Mar 2014

QCBS-3 Support for economic survey

143,000 QCBS

Prior Sep 2014

QCBS-4- Support for the energy strategy study

500,000 QCBS Prior Jun 2014

QCBS-5 Development of Electronic Records Mgmt System (ERMS)

260,000

QCBS

Prior Oct 2014

SSS-1 PCU Project Accountant 30,000 SSS Prior Jan 2014 Contr extension SSS-2 PCU Accountant Assist 7,000 SSS Post Jan 2014 Contr extension SSS-3 PCU Accountant Assist 7,000 SSS Post Jan 2014 Contr extension SSS-4 PCU Office Assistant 7,000 SSS Post Jan 2014 Contr extension SSS-5 PCU Driver 1 6,000 SSS Post Jan 2014 Contr extension SSS-6 PCU Driver 2 6,000 SSS Post Jan 2014 Contr extension IC-1 PCU Operations / Mon &

Evaluation Specialist 48,000 IC Prior Sept 2013

IC-2 PCU Procurement Officer 45,000 IC Prior Sept 2013 IC-3 PCU Administrative &

Financial Mgmt Specialist 48,000 IC Prior Sept 2013

IC-4 Advisory support for statistical capacity building

444,000 IC

Prior Feb 2014 Long term contract (2 yr)

IC-5 Advisory support for NRS 178,000 IC Prior Feb 2014 Long term contract (1.5 years)

Procurement Implementation Support Plan

28. In addition to the day-to-day assessment of Procurement files under prior review by the Bank, procurement supervision will be undertaken at least twice a year. This supervision will include (i) the review of the procurement plan to be updated from time to time by the PCU ensuring the necessary linkages with the procurement transactions under the existing financing; (ii) necessary advice to the PCU on procurement files under preparation; (iii) a procurement post-review during one annual supervision mission of procurement transactions which have not been prior reviewed by the Bank; (iv) the review of the

46

organization and the performance of the procurement function within the PCU (capacity of both procurement staff and other technical staff, including archiving); and (v) any other procurement-related matters.

Fraud and Corruption

29. All procurement entities as well as bidders and service providers, i.e., suppliers, contractors, and consultants, shall observe the highest standard of ethics during the procurement and execution of contracts financed under the project. This is in accordance with paragraphs 1.16 and 1.17 (Fraud and Corruption) of the Procurement Guidelines and paragraph 1.23 and 1.24 (Fraud and Corruption) of the Consultants Guidelines.

Environmental and Social Safeguards

30. No safeguards are triggered for the AF of the project.

47

ANNEX 7: AN OVERVIEW OF IFMIS IMPLEMENTATION IN THE GAMBIA

IFMIS Supplier: SoftTech, Tanzania

IFMIS

Development

in The Gambia

IFMIS Phase I Contract

2005-2008

P057995

IFMIS Phase II Contract

2009-2011

P117275

IFMIS Phase III Contract

2012-2013

P117275

IFMIS

Additional Financing

2014-2018

P132881

IFMIS Contract signed on

31 Oct 2005 01 Aug 2009 Jan 2013 At planning stage

IFMIS Contract amendments

None 26/05/2010 anti-corruption clause added

- -

IFMIS Contract completed on

Feb 2009 May 2011 Dec 2013 -

IFMIS Functionality

Modules:

Accounts payable

Procurement

Accounts Receivable

Cash Management

Commitment Control

General Ledger

Budgeting

Payroll

Modules:

Accounts payable

Procurement

Accounts Receivable

Cash Management

Commitment Control

General Ledger

Budgeting

Payroll

Modules:

System Manager

General Ledger w/ FRx

Accounts Payable

Accounts Receivable

Purchase Order

Cash Management

Multi Currency Management

Exchequer System

Commitment Control

Revenue Receipting and Accounting

Consolidated Reconciliation

Purchasing module (eProcurement)

Budgeting

Payroll

Asset/inventory mgmt

Modules:

System Manager

General Ledger with FRx

Accounts Payable

Accounts Receivable

Purchase Order

Cash Management

Multi Currency Management

Exchequer System

Commitment Control

Revenue Receipting and Accounting

Consolidated Reconciliation

Purchasing module (eProcurement)

Budgeting

Payroll

Asset/inventory mgmt.

Interfaces with other systems

Central Bank Core Banking Module

CSDRMS Interface GRA Tax Admin systems

Central Bank - EFT

Scope 6 pilots 22 ministries (40 nodes?) All IFMIS sites (all Ministries, Agencies and Departments)

All IFMIS sites (all Ministries, Agencies and Departments)

Single Treasury Account (STA)

Status + Features + % coverage of revenues and expenditures

Budget Classification / Chart of Accounts

GFS 2001, 4 segments, 30 digits

GFS 2001, 4 segments, 30 digits

Plan to update Chart of Accounts

Plan to update Chart of Accounts

Coverage of budget expenditures

All expenditures for central government (Ministries, Agencies and

All expenditures for central government (Ministries, Agencies and

All expenditures for central government (Ministries, Agencies and

All expenditures for central government (Ministries, Agencies and

48

IFMIS

Development

in The Gambia

IFMIS Phase I Contract

2005-2008

P057995

IFMIS Phase II Contract

2009-2011

P117275

IFMIS Phase III Contract

2012-2013

P117275

IFMIS

Additional Financing

2014-2018

P132881

Departments) – excludes expenditures for donor-funded self-accounting projects

Departments) – excludes expenditures for donor-funded self-accounting projects

Departments) – excludes expenditures for donor-funded self-accounting projects

Departments), including expenditures for donor-funded self-accounting projects

Coverage of revenue collection

Non-tax revenue captured on IFMIS at Treasury Directorate

Tax revenue captured on IFMIS through GRA

Non-tax revenue captured on IFMIS through line ministries

Tax revenue captured on IFMIS through GRA

Non-tax revenue captured on IFMIS through line ministries

Tax revenue captured on IFMIS through GRA

Non-tax revenue captured on IFMIS through line ministries

Tax revenue captured on IFMIS through GRA

Technology architecture

Client-server with decentralized databases in Central Gov

Web enabled Fully web-based architecture

Fully web-based architecture

Application Software (ASW)

Name and version of the main IFMIS ASW

Financial Suite: Epicor 7.3.5

Budget: Active Planner

Payroll: Nas.Net

Financial Suite: Epicor 7.3.5

Budget: Active Planner

Payroll: Nas.Net

Financial Suite: Epicor 9

Budget: Active Planner

Payroll: Nas DNA

Financial Suite: Epicor 9

Budget: Active Planner Open Integration

Payroll: Nas DNA

ASW Developer Name/Country of the IFMIS supplier:

Soft-Tech Consultants Ltd, Tanzania

Soft-Tech Consultants Ltd, Tanzania

Soft-Tech Consultants Ltd, Tanzania

Soft-Tech Consultants Ltd, Tanzania?

Warranty Periods Start/End dates of warranty services

for IFMIS and other ICT comp (servers, data storage, network, etc.)

3 years from Date of Inspection Certificate

3 years from Date of Inspection Certificate for Server Room Equipment

1 year from Date of Inspection Certificate for end user equipment

3 years from Date of Inspection Certificate for Server Room Equipment

1 year from Date of Inspection Certificate for end user equipment

3 years from Date of Inspection Certificate for Server Room Equipment

1 year from Date of Inspection Certificate for end user equipment

Number of Offices Connected

6 pilot entities

40 Central Gov entities Central Gov (TBC)

Local Gov/Municipal (TBC)

- All Central Government Ministries, Agencies and Departments

- Self-Accounting Projects under Ministry of Finance and Ministry of Communication (2 pilots)

- All Central Government Ministries, Agencies and Departments

All Self-Accounting (donor-funded) Projects

Number of system users

300 300 450 500

Number of Concurrent users

50 50 50 100 (TBC)

ITC Capacity Analyst/Progr: 0

NW/Telco mgr: 0

Technical support: 4

DB administrator: 0

Analyst/Progr: 0

NW/Telco mgr: 0

Technical support: 6

DB administrator: 0

Analyst/Progr: 0

NW/Telco mgr: 0

Technical support: 6

DB administrator: 0

Analyst/Progr: 0

NW/Telco mgr: 0

Technical support: 6

DB administrator: 2

49

IFMIS

Development

in The Gambia

IFMIS Phase I Contract

2005-2008

P057995

IFMIS Phase II Contract

2009-2011

P117275

IFMIS Phase III Contract

2012-2013

P117275

IFMIS

Additional Financing

2014-2018

P132881

Director: 0

Loc consult: 6

Deputy Director: 1

Loc consult: 6

Deputy Director: 1

Loc consult: 6

Deputy Director: 1

Loc consult: 6

Any IT Assessment/Audit

Yes No Being planned To be planned

Completion level Fully operational? Yes

Any missing/dropped modules? No

Fully operational? Yes

Any missing/dropped modules? No

Not yet operational Under planning

Business continuity solutions

Yes, a hot site located off site

Yes, a hot site located off site

Yes, a hot site located off site

Yes, a hot site located off site

Cost of IFMIS ($m)

2.7 2.8 0.762 2.373

WB funds ($m) 2.7 2.8 0.762 2.373

Government funding ($m)

- - - -

Duration of IFMIS implementation

39 months 22 months 12 months 36 months

50

ANNEX 8: IFMIS IMPLEMENTATION STRATEGY AND FUNCTIONAL COVERAGE

IFMIS Implementation Strategy

The Government of The Gambia (GoTG) has decided to undertake the implementation of the IFMIS using and implementation strategy that will ensure the provision of successful results of the implementation activities by phasing the modules and the implementation ministries. The table below depicts the implementation phasing.

Phase Modules Sites Initial

Implementation Period

Actual Implementation

Period Status of each module

Phase I General Ledger and reporting

Revenue Collectors Cash Book

Payments Bank Reconciliation Purchase Order Payroll Pensions Budgeting

MoFEA Accountant General Central Revenue

Department and Customs Department

Ministry of Education Personnel

Management Office National Audit Office

01/07/05 – 31/12/06

01/01/06 – 01/02/09

All the modules were implemented all fully operational

Phase II A General Ledger and reporting

Revenue Collectors Cash Book

Payments Bank Reconciliation Purchase Order Payroll Budgeting Pensions Interface with Central

Bank Core Banking

8 additional ministries 01/07/06 – 31/12/07

01/09/09 – 31/05/11

All the modules were implemented all fully operational

51

Phase Modules Sites Initial

Implementation Period

Actual Implementation

Period Status of each module

Module (same modules as in Phase I)

Phase II B General Ledger and reporting

Revenue Collectors Cash Book

Payments Bank Reconciliation Purchase Order Payroll Budgeting Pensions Interface with Central

Bank Core Banking Module

(same modules as in Phase I)

9 additional ministries 01/07/07 – 31/12/08

01/09/09 – 31/05/11

All the modules were implemented all fully operational.

Interface with Central Bank Core Banking Module – fully operational since March 2012

Phase III A IFMIS Interface implementation with the following sites Central Bank of Gambia Budgeting Debt Management Personnel Management

System Customs Systems

(Asycuda) Tax Administration

System

To be implemented at Treasury

01/07/08 – 30/06/09

2012-2013 Interface with Central Bank Core Banking module implemented as part of Phase II implementation

Central Bank interface for Electronic Funds Transfer (EFT) to be implemented as part of Additional Financing activities

Budgeting module implemented as part of Phase I

Debt Management Interface to be implemented as part of Epicor 9 Migration contract

Personnel Management System (HR Module) to be implemented as part of Additional Financing

52

Phase Modules Sites Initial

Implementation Period

Actual Implementation

Period Status of each module

activities Customs System (Asycuda)

Interface to be implemented as part of Additional Financing activities

Tax Administration System Interface to be implemented as part of Additional Financing activities

Phase III B Pensions and Gratuity Civil Servants Revolving

Loans Fixed Assets Register Consumable Stores

Inventory Losses Register

To be implemented at Treasury

01/07/08 – 30/06/09

2014-2105 Pensions module implemented as part of Phase I

There is currently one Civil Servants Revolving Loans Scheme (1 x 6 Loan). This is paid, and recovered through 6 monthly deductions, through the Payroll Module

Fixed Assets Register – not in scope as Government not yet ready

Consumables Stores Inventory –not in scope as Government not yet ready

Losses Register – not in scope

Note: Phase II implementation covered 22 Ministries/Agencies, (instead of the originally planned 17) consisting of 40 sites.

53

ANNEX 9: TRANSITION PLAN FOR CONSULTANTS AND CIVIL SERVANTS FOR IFMIS

EXIT PLAN FOR THE IFMIS CONSULTANTS8

The Government of The Gambia (GoTG) has embarked on several Financial Management Reforms since 2005 and one of the most important reforms is the implementation of an Integrated Financial Management Information system (IFMIS). IFMIS was implemented in 6 sites as a pilot in 2007 and later rolled out to all the Ministries and Departments in 2010. The operational modules are:

Accounts Payable Accounts Receivable Cash Management General Ledger Budget Payroll

Additionally, IFMIS and the Central Bank Systems are linked, and the Directorate of National Treasury (DNT) can now access all Government Bank Accounts on line for real time Bank Reconciliation. The IFMIS Project was extended to 2013 for the implementation of following additional activities:

Extension of the IFMIS to two Self Accounting Projects. Upgrading of the IFMIS System from Epicor Version 7.3.5 to Epicor 9.05. Upgrading of the Budget and Payroll Module. Interfacing of the Debt Management system (CSDRMS) with the IFMIS System.

The implementation of IFMIS is aimed at improving the quality of financial management, accounting and reporting in the public sector.

RESTRUCTURING OF THE DIRECTORATE OF NATIONAL TREASURY

The Directorate of National Treasury (DNT) is a major player in spearheading a number of Financial Management Reforms. In order to cope with the demands and challenges that stem from these reforms, the MoFEA management decided to restructure the DNT.

The Directorate of National Treasury is the Paymaster and the Receiver General of the Government that carries out functions of receiving and paying out on behalf of Government.

Other functions include: Accounting of all transactions; Establishing a proper accounting system; Developing and improving controls, processing procedures and recording systems; Ensuring proper security of all public monies and assets, instituting proper documentation and

controls of revenues; Supervising the entire accounting system, exercising efficient human resources management,

staff training and development, and proper functioning of accounting controls;

8 This Exit Plan has been prepared by the DNT, and approved by the MoFEA in May 2013. The new Minister, Hon.

Kebba S. Touray, approved the Plan in July 2013.

54

Preparing timely reports (monthly reports for economic/financial management, annual financial statements and data for fiscal reporting).

Following the restructuring of the Directorate of National Treasury, four Units exist:

Treasury Unit Accounting Unit Systems & Control Unit ICT Unit

Each of these Units is headed by a Deputy Director, assisted by a Principal Accountant, Principal ICT Officer with other middle and junior level support Staff.

Treasury Unit

The Treasury Unit is responsible for processing of the salaries, pensions & gratuity, widows and orphans pension scheme, collection of revenues and processing of Government payment to suppliers. The Treasury Unit staff composition (16 in total) is summarized below:

NO POSITION QUALIFICATION REMARKS 1 Deputy Director ACCA Qualified 1 Principal Accountant On contract

1 Senior Accountant MBA in Finance/ACCA final paper

He is yet to complete his ACCA final paper this year

2 Accountants AAT final level/ACCA Part one + AAT Final

(1) Completed. (2) ACCA and Diploma in Accounting

2 Assistant Accountant HTC/BSC in accounting To be completed in 2015 1 Senior Accounts Clerk BSC degree in accounting To be completed in 2015 6 Accounts Clerks BSC degree in accounting To be completed in 2015/2016 2 Accounts Trainee AAT intermediate Completed

Accounting Unit

The Accounting Unit is responsible for cash management and reconciliation of all Government Bank Accounts under the IFMIS system, the preparation and development of Financial Reports and Financial Statements of Government. The Accounting Unit staff composition (13 in total) is summarized below:

NO. DESIGNATION QUALIFICATION REMARKS

1 Deputy Director ACCA Qualified 3 Principal Accountants ACCA Qualified

2 Senior Accountants ACCA (1) ACCA final paper (2) MBA & ACCA final paper

1 Accountant ACCA Bachelor Degree

1 Assistant Accountant AAT final BSC in accounting & HTC

AAT completed. BSC to be completed in 2014

2 Senior Accounts Clerks BSC in accounting ACCA part one

To be completed in 2014

3 Accounts Clerks AAT Intermediate/finals Qualified

55

Systems and Control Unit

This Unit is responsible for all accounts of the Sub-Treasuries, located at Divisional Headquarters in the Provinces, and Overseas Missions. The Unit is also responsible for all procurements at the Directorate of National Treasury and to ensure systems and controls are complied with by all the Ministries/Departments, Sub-Treasuries, and Overseas Missions abroad.

The Systems and Control Unit staff composition (9 in total) is as follows:

NO. DESIGNATION QUALIFICATION REMARKS

1 Deputy Director BA (Hons) Accounting & Business Administration, Masters of Accountancy

Qualified

1 Principal Accountant BA (Hons) MSc Finance and ACCA

Qualified

1 Senior Accountant AAT final Qualified 1 Assistant Accountant ACCA part 2 Partly qualified

1 Senior Accounts Clerks ACCA part 2 AAT final

ACCA partly qualified

3 Accounts Clerks AAT intermediate

1 Accounts Trainee AAT foundation BSC in accounting

BSC will be completed in 2015

ICT Unit

ICT Unit is responsible for the database administration, network infrastructure, system administrator, security and all other IT related operations.

The ICT Unit staff composition (8 in total) is as follows:

NO. DESIGNATION QUALIFICATION REMARKS

1 Deputy Director BSc in Computing Science and MSc in Computer Networks

Qualified

1

Principal ICT Officer

BSc Computer Engineering/MSc Management Information System

Qualified

2 Cadet ICT Officers BSc Computer Science Qualified

1 IT Support Technician Microsoft Certified System Engineer (MCSE), Computer Science

BSc will be completed in 2016

2 IT Support Technician MCSE /CISCO Certified Network Associate (CCNA)

Qualified

1 IT Trainee MCSE Qualified

Presently, six (6) DNT staff are studying abroad (UK and US). Three (3) of them are taking ACCA Final exams and are expected to complete their studies by the end of 2013. One (1) is in the US enrolled in BSc Accounting and Finance program (expected to be completed by mid-2014). The last two are in the UK enrolled in BSc in ICT (expected completion in September 2013 and March 2014 respectively).

56

Furthermore, the DNT has recently recruited three (3) professional Accountants in order to boost the capacity of the Directorate.

EXIT PLAN The IFMIS project started in 2007 with 20 Consultants (International and Local Consultants). Following the implementation of the first phase of IFMIS, the International Consultants were phased out and the Local Consultants (18) took over the project and rolled out the system to other Ministries/Departments in 2010. The second phase of IFMIS would be completed in December 2012. However, an extension of one year was granted for the completion of remaining activities and the project is expected to be completed by 31 December 2013.

The exit plan for the remaining Consultants is to phase out all the IFMIS Accountants, the IT Technicians, the Data Centre Manager, Network Administrator, and two Financial Management Specialists by end of June 2013. Thus the project will only be left with four Consultants: the (i) IFMIS Project Manager, the (ii) Financial Management Adviser, the (iii) Application Team Leader and the (iv) Database Administrator to drive the implementation process up to 31 December 2013.

The Directorate has come up with the following exit plan:

The Project Management Office functions of the (i) Project Manager will be performed by the Project Coordinating Unit (PCU) under the Ministry of Finance & Economic Affairs.

The (ii) Financial Management Adviser and the (iii) Application Team Leader’s roles will be taken over by the different Unit Heads within the DNT.

The role of the (iv) Database Administrator will be manned by suitable staff within the ICT Unit of the Directorate. These specialists are currently on the ground and are understudying the Consultants. However, the position of the Network Administrator is vacant. The DNT, in collaboration with Personnel Management Office, will fill the position in due course.

It should be noted that all the IFMIS Accountants and IT Technical staff that are going to be phased out on the 30 June 2013, have agreed in principle to be absorbed into DNT as Government staff. The names and qualifications of these specialists are listed below:

DESIGNATION QUALIFICATION REMARKS IFMIS Accountant ACCA Qualified IFMIS Accountant

ACCA

Final Paper to be completed end December 2013

IFMIS Accountant BSC in Accounting Qualified IT Support

BSC in Computer Information Systems

Qualified

IT Support

BSC in Management Information Systems (Honors)

Qualified

IT Support

Microsoft Certified System Engineer (MCSE)

Qualified

In effect, all of them will be streamlined into Government by July 1, 2013.

57

Once the IFMIS Accountants and IT Technicians are streamlined, they will be deployed to Treasury Unit, Accounting Unit, Systems & Control Unit and the ICT Unit respectively. All the Deputy Directors, Principal Accountants, Senior Accountants and some of the key staff have been included in the Core Team Training in which they will be intensively trained to become Super Users. It is the core teams that will drive the implementation process, the end user training and support to sectors etc.

Soft Tech will also be engaged to provide re-enforcement training for the team and the training of trainers so that we can create a critical mass and an in-house training team that will provide re-enforcement training to end users and new intakes. It is envisaged that in the next two years to come 80% of the staff that are undergoing degree courses will complete their studies and henceforth the minimum qualification requirement for entry into Directorate of National Treasury will be BSs Degree in Accounting.

The DNT has noted that the task that lies ahead is both demanding and challenging, and therefore would require the recruitment of additional professional Accountants and ICT personnel.

However, the 2014 budget will factor in the positions of additional staff who would handle the operations of the DNT (payments, salaries, gratuities, etc.) and create the enabling environment that will allow the Core Team Members concentrate on implementation issues.

IMPLEMENTATION OF THE EXIT PLAN HAS BEGUN

The 15 Concultants in the IFMIS Project have been phased out, except for four of them as of 31 June, 2013. The consultants that have been phased out are:

The Data Center Manager 2 Financial Management Specialists 1 Network Administrator 4 IFMIS Accountants 3 ICT Support Staff

The three IFMIS Accountants and the three ICT Support Staff have been streamlined into the DNT starting from 1 July 2013.

The three IFMIS Accountants that have been streamlined into DNT have been deployed to the Treasury Unit, Accounting Unit and the Systems & Control Unit of the DNT as Principal Accountants and Senior Accountant, and the three ICT Support Staff have been deployed to the ICT Unit as Principal ICT Officers and Senior ICT Officers, respectively.

One Financial Management specialist and one Accountant have been absorbed by the MoFEA with effect from 1 July 2013.

58

Designation Relieved Absorbed Section Deployed Data Center Manager Relieved Financial Management Specialist Relieved Network Administrator Relieved Financial Mgt. Specialist Absorbed MoFEA Budget Division IFMIS Accountant Absorbed MoFEA Budget Division IFMIS Accountant Absorbed Treasury Unit IFMIS Accountant Absorbed Account Unit IFMIS Accountant Absorbed Systems Control Unit IT Support Staff Absorbed ICT Unit IT Support Staff Absorbed ICT Unit IT Support Staff Absorbed ICT Unit

The remaining four Consultants, namely the Project Manager, the Data Base System Administrator, the Application Team Leader and the Financial Management Adviser will remain in the Project until 31 December 2013, and from this time forward the Core Team Members of the Application and Technical Team will take over the implementation of the IFMIS Additional Financing Project, taking effect 1 January 2014.

Hereunder is a detailed list of the Application and Technical Core Team Members:

Designation Office Deputy Director of Budget MoFEA Principal Accountant DNT Senior Accountant DNT Senior Fiscal Officer MoFEA Senior Accountant DNT Deputy Director, Accounting Unit DNT Deputy Director, Treasury Unit DNT Deputy Director, Systems and Control Unit DNT Deputy Director, ICT Unit DNT Principal Accountant, Accounting Unit DNT Principal Accountant, Accounting Unit DNT Principal Accountant, Accounting Unit DNT Application System Administrator DNT Asst. Application System Administrator DNT Finance and Accounting Manager, GRA Gambian Revenue Authority, GRA Principal Accountant, Control Unit DNT Procurement Officer MoFEA Principal Accountant, Treasury Unit DNT Accounting Unit DNT National Audit Office National Audit Office, NAO Principal ICT Officer DNT

We have noted that the task that lies ahead is both demanding and challenging and therefore would require the recruitment of additional professional accountants and ICT personnel.

However, the 2014 budget will factor in the positions of additional staff who would handle the operations of the Directorate of National Treasury – payments, salaries, gratuities, etc. – and create the

59

enabling environment that will allow the Core Team Members to concentrate on implementation issues.

The positions of five Principal Accountants and four Principal ICT Officers will be created in the 2014 Budget and it is envisaged that the recruitment exercise will be completed by 30 July 2014.

ACHIEVEMENTS

The IFMIS system has been rolled out to all of the Ministries/Departments The IFMIS system has been interfaced with the Central Bank System Payments of Pensions and Salaries through the Central Bank RTGS system has been automated Streamlined of 1 Financial Management Specialist, 4 IFMIS Accountants and 3 IT Support

Staff with effect from 1 July 2013 Financial Statements of Government for 2008, 2009, 2010 and 2011 have been prepared and

submitted to the National Audit Office for auditing. 7 Professional Accountants have been trained (ACCA) in the UK, 6 Accountants with BSc

degrees in Accounting have been trained at the University of The Gambia, 680 IFMIS End-users have been trained on EPICOR, 32 members of staff are presently undergoing training (Accounting technicians) at different levels. Please note: Capacity Building is an ongoing process.

Training of the Core Team Members of the Application and Technical Teas for the upgrading of the IFMIS system EPICOR 9 completed.

Installation and pre-commissioning of the Hard Ware Equipment for EPICORE 9 Migration completed

Payroll training completed and the payroll module is ready for UAT and will be conducted in August 2013.

CONCLUSION

It is a recognized fact that many of the problems associated with implementation of programs in the Public Sector such as poor service delivery, weaknesses in policy formulation and monitoring and declining performance standards can be traced to the low level of remuneration and lack of appropriate incentive regime. This undoubtedly results in the inability of the Government to attract and retain qualified professional and technical people. Thus, an overhaul of pay and performance incentives can produce a highly motivated, results-oriented and a disciplined workforce.

It is for this reason that the Government of The Gambia resources who will be succeeding the Consultants to drive the implementation process be remunerated well to commensurate their level of extra effort and work from the Project funds. At the end of the Project, Government will ensure the sustainability of core IFMIS team. It is hoped that this scheme will enhance the productivity of Staff and a successful implementation of Epicor 9, as well as the future expansion of IFMIS.

60

ANNEX 10: BANK INVOLVEMENT AND PARTNERSHIPS IN THE ENERGY SECTOR

Recognizing that the current situation is unsustainable and that increased access to reliable electricity is key for The Gambia to improve reliability for economic development and access for social development, the GoTG has sought support from a number of donors. With the World Bank, this interest was not only expressed in the context the Energy Sector Diagnostic Study commissioned by the Bank in 2010, but reiterated at the June 2012 international donors’ meeting, and in particular has emphasized the need for an energy sector strategy study. With support from the EU, the GoTG engaged in the development of an electricity strategy and the strengthening of the legal and regulatory framework for renewable energy, which was released in December 2012. The strategy and law are intended to attract private sector investment in electricity generation from renewable energy sources. The Bank’s supported forthcoming energy sector strategy study, including assessment of the finances and financial management of NAWEC, will build and complement this work, along with that of other donors engaged in the sector as well. A list of the main donors active in the sector is presented below.

Table A10.1: Active Donors in the Energy Sector in The Gambia

Activity Donor Investments

Western Region Electrification Project International Finance Trade Corporation (Private Window of the Islamic Development Bank, IDB)

Refurbishment, Rehabilitation and Expansion of the electricity network in the Greater Banjul Area

The Economic and Social Development Bank of Venezuela (BANDES)

Rural Electrification Extension Project ECOWAS Bank for Investment and Development (EBID) through a line of credit of the EXIM Bank of India

Brikama 20MW Power Supply project Islamic Development Bank (IDB)

Energy Development and Access Expansion Project OPEC Fund for International Development (OFID)

Kotu Power Plant Expansion Project Arab Fund for Economic Development In Africa (BADEA) and OPEC Fund for International Development (OFID)

Economic and Sector Work Renewable Energy Study African Development Bank (ADB)

Renewable Energy Readiness Assessment of The Gambia

International Renewable Energy Agency (IRENA)

National Investment Program on Access to Energy Services

UNDP

Electricity Strategy of The Gambia European Union Energy Initiatives: Partnership Dialogue Facility (EUEI-PDF)

Feasibility Study for Electrification and network upgrading in GBA and Western Region

National Electric Power Company of Jordan (NEPCO)

61

ANNEX 11: TEAM COMPOSITION

World Bank staff and consultants who worked on the project:

Name Title Unit Annette De Kleine Feige Sr. Economist (TTL) AFTP4 Cem Dener Sr. Public Sector Specialist PRMPS Alexandre Arrobbio Lead Public Sector Specialist AFTP4 Shiho Nagaki Public Sector Specialist AFTP4 Rose Mungai Sr. Economist / Statistician AFTPM Antoine A. Simonpietri Sr. Statistician AFTPM Fatouma Toure Ibrahima Wane Sr. Financial Specialist AFTG2 Eric Brintet Lead Financial Management Specialist AFTMW

Daniela Anna B. D. Junqueira Senior Counsel LEGAM

Wolfgang M. T. Chadab Senior Finance Officer CTRLA Sidy Diop Sr. Procurement Specialist AFTPW Ngor Sene Consultant (Financial Mgmt. Specialist) AFTMW Immanuel Frank Steinhilper E T Consultant AFTP4 Dolele Sylla Information Analyst AFRIT Pierre M. Lenaud Program Assistant AFTP4 Judite Fernandes Language Program Assistant AFTP4 Glaucia Reis Ferreira Language Program Assistant AFTP4 Yassin Saine Njie Program Assistant AFMGM

KartungKartung

KalagiKalagi

SukutaSukuta

DiabuguDiabugu

FarafenniFarafenni

BrikamaBrikama

KerewanKerewan MansaMansaKonkoKonko

Basse Santa SuBasse Santa Su

BANJULBANJULN O R T H B A N K D I V I S I O NN O R T H B A N K D I V I S I O N

W E S T E R NW E S T E R ND I V I S I O ND I V I S I O N

L O W E R R I V E RL O W E R R I V E RD I V I S I O ND I V I S I O N

U P P E R R I V E RU P P E R R I V E RD I V I S I O ND I V I S I O N

C E N T R A L R I V E RC E N T R A L R I V E RD I V I S I O ND I V I S I O N

JanjanburehJanjanbureh

Kartung

Kalagi

Sukuta

Diabugu

Farafenni

Brikama

Kerewan

Janjanbureh

MansaKonko

Kanifing

Basse Santa Su

BANJUL

S E N E G A L

S E N E G A L

G U I N E A - B I S S A U

N O R T H B A N K D I V I S I O N

W E S T E R ND I V I S I O N

C I T Y O FB A N J U L

K A N I F I N GM U N I C I PA L I T Y

L O W E R R I V E RD I V I S I O N

U P P E R R I V E RD I V I S I O N

C E N T R A L R I V E RD I V I S I O N

Gambia

Gambia

ATLANTIC

OCEAN

To Kaolack

To Kaolack

To Kolda

To Kolda

To Bignona

To Bignona

14°N

13°N

14°N

13°N

17°W 16°W 15°W 14°W

17°W 16°W 15°W 14°W

THEGAMBIA

This map was produced by the Map Design Unit of The World Bank. The boundaries, colors, denominations and any other informationshown on this map do not imply, on the part of The World BankGroup, any judgment on the legal status of any territory, or anyendorsement or acceptance of such boundaries.

0 10 20 30

0 10 20 30 Miles

40 Kilometers

IBRD 33409R

NO

VEM

BER 2006

THE GAMBIASELECTED CITIES AND TOWNS

LOCAL GOVERNMENT AREA“DIVISION” HEADQUARTERS

NATIONAL CAPITAL

RIVERS

MAIN ROADS

LOCAL GOVERNMENT AREA“DIVISION” BOUNDARIES

INTERNATIONAL BOUNDARIES