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Document of
The World Bank
FOR OFFICIAL USE ONLY
Report No: 51556 - VC
PROJECT APPRAISAL DOCUMENT
ON
A PROPOSED CREDIT
IN THE AMOUNT OF
SDR 1.5 MILLION (US$ 2.3 MILLION EQUIVALENT) TO
ST. VINCENT AND THE GRENADINES
FOR THE
ORGANISATION OF EASTERN CARIBBEAN STATES (OECS)
E-GOVERNMENT FOR REGIONAL INTEGRATION PROJECT FOR ST. VINCENT AND
THE GRENADINES - APL2 (OECS EGRIP-SVG)
IN SUPPORT OF THE FIRST PHASE OF THE
OECS E-GOVERNMENT FOR REGIONAL INTEGRATION PROGRAM (EGRIP)
(SECOND PROJECT (APL2) WITHIN PHASE ONE)
November 16, 2009
Global ICT and LAC-PREM Departments
Caribbean Country Management Unit
Latin America and the Caribbean Region
This document has a restricted distribution and may be used by recipients only in the
performance of their official duties. Its contents may not otherwise be disclosed without World
Bank authorization.
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CURRENCY EQUIVALENTS
(Exchange Rate Effective July 31, 2009)
Currency Unit = XCD
2.67 EC$ (XCD) = US$1
1.55 US$ = SDR 1
FISCAL YEAR
January 1 – December 31
ABBREVIATIONS AND ACRONYMS ASYCUDA Automated System for Customs Data CARICAD Caribbean Centre for Development Administration CARICOM Caribbean Community CARTAC Caribbean Regional Technical Assistance Centre CAS Country Assistance Strategy CDB Caribbean Development Bank CIDA Canadian International Development Agency DFID Department for International Development (UK) ECCB Eastern Caribbean Central Bank ECTEL Eastern Caribbean Telecommunications Authority EGRIP E-Government for Regional Integration Project / Program EU European Union FY Fiscal (Financial) Year GEF The Global Environment Facility IBRD International Bank for Reconstruction and Development (World Bank) ICB International Competitive Bidding ICT Information and Communications Technologies IDA International Development Association (World Bank) IDB Inter-American Development Bank IDRC International Development Research Centre IMF International Monetary Fund IOCR OECS Institutional and Organizational Capacity Review of the Core Public Sector NCB National Competitive Bidding NGO Non-governmental Organization NSC National Steering Committee OAS Organization of American States OECS Organisation of Eastern Caribbean States PAD Project Appraisal Document PFM Public Financial Management PPP Public Private Partnership PPS OECS Pharmaceutical Procurement Service Red GEALC Network of E-Government Leaders of Latin America and the Caribbean REGU Regional E-Government Unit RTC Regional Technical Committee SIGTAS Standard Integrated Government Tax Administration System SVG St. Vincent and the Grenadines TA Technical Assistance TAL Technical Assistance Loan TASF UNDESA/CARICAD E-Government Technical and Advisory Support Facility TCO Total Cost of Ownership
TORs Terms of Reference TRIPS Agreement on Trade-Related Aspects of Intellectual Property Rights UN United Nations UNCTAD United Nations Conference on Trade and Development UNDESA United Nations Department of Economic and Social Affairs UNDP United Nations Development Programme WB / WBG World Bank / World Bank Group WHO World Health Organization WTO World Trade Organization
Vice President: Pamela Cox
Country Director: Yvonne Tsikata
Sector Director: Mohsen Khalil
Sector Director: Marcelo Giugale
Sector Manager: Philippe Dongier
Sector Manager: Nick Manning
Sector Leader: Christina Malmberg Calvo
Sector Leader: Zafer Mustafaoglu
Task Team Leader: Juan Navas-Sabater
Co-Task Team Leader: Roberto Panzardi
ST. VINCENT AND THE GRENADINES
OECS E-Government for Regional Integration Project for St. Vincent and the Grenadines
(OECS EGRIP-SVG)
CONTENTS
Page
I. STRATEGIC CONTEXT AND RATIONALE ................................................................. 1
A. Country and sector issues.................................................................................................... 1
B. Rationale for Bank involvement ......................................................................................... 4
C. Higher level objectives to which the project contributes .................................................... 5
II. PROJECT DESCRIPTION ................................................................................................. 6
A. Lending instrument ............................................................................................................. 6
B. Project development objective and key indicators.............................................................. 7
C. Project components ............................................................................................................. 8
D. Lessons learned and reflected in the project design .......................................................... 15
E. Alternatives considered and reasons for rejection ............................................................ 17
III. IMPLEMENTATION .................................................................................................... 18
A. Partnership arrangements .................................................................................................. 18
B. Institutional and implementation arrangements ................................................................ 19
C. Monitoring and evaluation of outcomes/results ................................................................ 21
D. Sustainability..................................................................................................................... 21
E. Critical risks and possible controversial aspects ............................................................... 22
F. Loan/credit conditions and covenants ............................................................................... 23
IV. APPRAISAL SUMMARY ............................................................................................. 23
A. Economic and financial analyses ...................................................................................... 23
B. Technical ........................................................................................................................... 24
C. Fiduciary ........................................................................................................................... 24
D. Social................................................................................................................................. 25
E. Environment ...................................................................................................................... 25
F. Safeguard policies ............................................................................................................. 25
G. Policy Exceptions and Readiness...................................................................................... 25
Annex 1: Country and Sector or Program Background ......................................................... 27
Annex 2: Major Related Projects Financed by the Bank and/or other Agencies ................. 45
Annex 3: Results Framework and Monitoring ........................................................................ 48
Annex 4: Detailed Project Description ...................................................................................... 58
Annex 5: Project Costs ............................................................................................................... 68
Annex 6: Implementation Arrangements ................................................................................. 69
Annex 7: Financial Management and Disbursement Arrangements ..................................... 72
Annex 8: Procurement Arrangements ...................................................................................... 78
Annex 9: Economic and Financial Analysis ............................................................................. 83
Annex 10: Safeguard Policy Issues ............................................................................................ 87
Annex 11: Project Preparation and Supervision ..................................................................... 88
Annex 12: Documents in the Project File ................................................................................. 90
Annex 13: Statement of Loans and Credits .............................................................................. 91
Annex 14: Country at a Glance ................................................................................................. 92
Annex 15: Map IBRD No. 33488 ............................................................................................... 95
OECS COUNTRIES
OECS E-GOVERNMENT FOR REGIONAL INTEGRATION PROJECT FOR ST. VINCENT
AND THE GRENADINES
PROJECT APPRAISAL DOCUMENT
LATIN AMERICA AND CARIBBEAN
CITPO / LCSPS
Date: November 16, 2009 Team Leader: Juan Navas-Sabater, Roberto
Panzardi
Country Director: Yvonne M. Tsikata
Sector Manager/Director: Philippe Dongier,
Nick Manning
Sectors: Central government administration
(50%); General information and
communications sector (40%); General public
administration sector (10%)
Themes: Regional integration (P);Other public
sector governance (S); Managing for
development results (S)
Project ID: P117087 Environmental screening category: C (Not
Required)
Lending Instrument: Adaptable Program Loan
Project Financing Data
[ ] Loan [X] Credit [ ] Grant [ ] Guarantee [ ] Other:
For Loans/Credits/Others:
Total Bank financing (US$m.): 2.30 (SDR 1.5 million equivalent)
Proposed terms: The Credits will have a 10 year Grace Period, and a Final Maturity of 35 years.
Financing Plan (US$m)
Source Local Foreign Total
BORROWER/RECIPIENT 0.00 0.00 0.00
International Development Association
(IDA)
0.84 1.46 2.30
Total: 0.84 1.46 2.30
Borrower:
Saint Vincent and the Grenadines
Ministry of Finance and Economic Planning
Office of the Prime Minister, Administrative Center
Bay Street
Kingstown
Saint Vincent and the Grenadines
Telephone: 1-784-456-1703 Facsimile: 1-784-457-2152
Responsible Agency: OECS Secretariat
Morne Fortune
PO Box 179
St. Lucia
Tel: (758) 4522537 Fax: (758) 4531628
www.oecs.org
Estimated disbursements (Bank FY/US$m)
FY 10 11 12 13 14
Annual 0.12 0.5 0.98 0.6 0.10
Cumulative 0.12 0.62 1.6 2.2 2.3
Project implementation period: Start January 15, 2010 End: August 31, 2013
Expected effectiveness date: January 15, 2010
Expected closing date: August 31, 2013
Does the project depart from the CAS in content or other significant respects?
Ref. PAD I.C. [ ]Yes [X] No
Does the project require any exceptions from Bank policies?
Ref. PAD IV.G. Have these been approved by Bank management?
Is approval for any policy exception sought from the Board?
[ ]Yes [X] No
[ ]Yes [X] No
[ ]Yes [X] No
Does the project include any critical risks rated ―substantial‖ or ―high‖?
Ref. PAD III.E. [X]Yes [ ] No
Does the project meet the Regional criteria for readiness for implementation?
Ref. PAD IV.G. [X]Yes [ ] No
Project development objective Ref. PAD II.C.
The overall development objective of the project is to promote the efficiency, quality, and
transparency of public services through the delivery of regionally integrated e-government
applications that take advantage of economies of scale.
Project description [one-sentence summary of each component] Ref. PAD II.D.
This project is part of a broader regional horizontal APL program, with two key phases. This
project is the second project (APL 2) within phase one, aimed at adding St. Vincent and the
Grenadines to the program, which already includes Dominica, Grenada and St. Lucia (APL 1
was approved by the Board in May 2008).
In Phase 1, the project has two main substantive components:
Component 1: Horizontal (Cross-Sectoral) E-Government Interventions. This would involve
the following sub-components: (i) Policy and Strategy Implementation; (ii) Legal and Regulatory
Framework Implementation; (iii) ICT Standards and Total Cost of Ownership Optimization; (iv)
Regional E-Government Institutional Framework Strengthening; and (v) Automated Registries
and Multi-Purpose Identification Systems.
Component 2: Vertical (Sectoral) E-Government Interventions. This component will support
further regional harmonization and upgrading of existing information systems in the core areas
of public finance, as well as extend e-government on a pilot basis to other sectors: (i) E-
Government in Public Financial Management; (ii) E-Government in Tax Administration; (iii) E-
Government in Customs; (iv) Electronic Government Procurement; and (v) E-Government in
health and other social and productive sectors.
In Phase 2, the program is expected to expand into other sectoral e-government interventions,
primarily in tourism, agriculture, social protection and education, among others.
A third component for project management is also included in both phases.
Which safeguard policies are triggered, if any? Ref. PAD IV.F.
None.
Significant, non-standard conditions, if any, for:
Ref. PAD III.F.
Board presentation:
N/A
Loan/credit effectiveness:
Effectiveness conditions: (a) the Subsidiary Agreement has been executed on behalf of the
Recipient and the Project Implementing Entity; (b) all conditions precedent to the effectiveness
of the Other Financing Agreements, other than those related to the effectiveness of this
Agreement have been fulfilled; (c) the Operational Manual has been adopted by the Project
Implementing Entity; (d) the REGU has been established and the Project manager, procurement
specialist and Project accountant hired; (e) the RTC has been established and expanded to
include a representative of the Recipient; and (f) an amendment to the Project Agreement has
been signed to include the Recipient as an additional Participating Country and the Project
Implementing Entity has provided a supplementary legal opinion with regard to such
amendment. Additionally, the Bank requires a legal opinion in relation to the Subsidiary
Agreement confirming that the Subsidiary Agreement has been duly authorized or ratified by the
Borrower and the Project Implementing Entity and is legally binding on all parties to the
Subsidiary Agreement in accordance with its terms.
Covenants applicable to project implementation:
N/A
1
I. STRATEGIC CONTEXT AND RATIONALE1
A. Country and sector issues2
1. The Organisation of Eastern Caribbean States (OECS), of which St. Vincent and the
Grenadines is a member state, was established in 1981 under the Treaty of Baseterre. It has at
present a membership of nine (9) states including Grenada, Anguilla, Antigua and Barbuda,
the British Virgin Islands, Dominica, Montserrat, St. Kitts and Nevis, St. Lucia and Saint
Vincent and the Grenadines. With the exception of Anguilla, British Virgin Islands, and
Montserrat, which are all British territories, the remaining independent six member states of
the OECS (Antigua and Barbuda, Dominica, Grenada, St Kitts and Nevis, Saint Lucia, and St.
Vincent and the Grenadines) share many common characteristics. They are all similar in size,
climate, topography and history, and each has a very open economy with limited diversity in
production and a dependence on tourism and/or a few export commodities which are sold, in
many cases, in protected markets. Decades of reliance on traditional markets, and on trade
preference, have given way to a new reality, where agriculture plays a much smaller role in
most economies, and where a much harsher and more competitive international wind blows.
In many respects, the OECS is well positioned. Endowed, for the most part, with strong
traditions of democratic participation and political stability, favorable locations, excellent
climates and an early targeting of universal primary education, many OECS countries already
possess a number of ingredients necessary to adapt to the challenges of the 21st century.
2. St. Vincent and the Grenadines (SVG) consists of 32 islands, the largest of which is St.
Vincent. It is the commercial and political center where 90 percent of the population resides.
As with other countries in the region, St. Vincent and the Grenadines is subject to special
development challenges due to its small size and vulnerability to external shocks. Despite a set
of relatively good social indicators, which improved during the 1980‘s and 1990‘s, for the
period 1996-2000 approximately 38 percent of the country‘s population lived in absolute
poverty. This is the highest percentage in the OECS sub-region.
3. St. Vincent and the Grenadines, like the other OECS countries, faces a number of
development challenges. First and foremost is the global economic crisis, which has already
negatively impacted tourism revenues, FDI inflows and remittances, has markedly slowed
GDP growth and is leading to rising unemployment. Hence, the island is seeking new sources
of growth and a way to reduce vulnerability, against a background of an increasing
competitive global environment. Second, it faces fiscal imbalances and a high debt ratio,
compounded by its vulnerability as a small island developing state. The economy of St.
Vincent and the Grenadines is vulnerable and subject to changes in the external markets and
severe shifts in trade. It is also prone to natural disasters such as hurricane and volcanic
eruptions. La Soufriere, in St. Vincent, remains one of the most studied volcanoes in the
1 This PAD describes the second project (APL2) under the OECS E-Government for Regional Integration Program
(EGRIP), and hence complements the Program PAD of April 29, 2008 (P100635, Report No. 43345-LAC). Since
the participation of St. Vincent and the Grenadines had been envisaged in the Program PAD, much of the material in
the current document, including many of the annexes, is virtually identical to the material of the Program PAD. 2 Given the regional nature of this project, the PAD will refer to regional issues in addition to specific country
issues. It must be noted that in this PAD, unless otherwise specified, the term ―region‖ and associated terms should
be interpreted to refer to the OECS member states only, which include Antigua and Barbuda, Dominica, Grenada,
St. Kitts and Nevis, St. Lucia and St. Vincent and the Grenadines, all members of the World Bank Group.
2
world and is kept under constant monitor for any activity. In such an environment, business as
usual will no longer suffice. The current challenge which faces the country is how to
reinvigorate and sustain growth alongside the following imperatives – reducing high
unemployment and poverty rates, restoring fiscal and debt sustainability, diversifying the
economy, and securing a more sustainable external position.
4. These multi-faceted challenges of St. Vincent and the Grenadines as well as the OECS
countries have prompted the World Bank Group to design its assistance strategy in a way that
reflects the national and the regional development needs of these countries. In order to
address the pressing developmental concerns of the OECS region, the World Bank Group's
Country Assistance Strategy (CAS) for the OECS 2006-2009 (Report # 33118) discussed by
the Executive Directors on September 13, 2005, proposes a new way of doing business to help
these small states meet the challenges facing them at this critical stage of their development.
The CAS supports the sub-region‘s development agenda through two main pillars: (i)
supporting growth and improving competitiveness: and (ii) reducing vulnerability and
strengthening disaster risk management.3 Accelerating Growth in St. Vincent and the
Grenadines will largely depend on the sub-region‘s ability to improve competitiveness and
strengthen its performance in the global economy.
5. Public sector modernization has been targeted by various reports as the key to improving
efficiency and competitiveness in the region. The OECS Institutional and Organizational
Capacity Review of the Core Public Sector (IOCR)4 states that ―the institutions relating to
public sector management need a major overhaul.‖ Presently, the public sector is over-
emphasizing control of inputs and compliance with rules and regulations rather than with
effectively and quickly delivering expected outputs. If it is to reduce costs and improve
efficiency, the public sector must become more concerned with the cost-effectiveness, quality,
and timeliness of outputs. The need for public sector modernization was echoed by the
citizens of the OECS who participated in a 2005 survey managed by the World Bank.5
Respondents felt that the public sector is inefficient and poorly managed. The report attributes
unsatisfactory quality of selected public sector services6 to institutional deficiencies such as
inadequate managerial autonomy, weak accountability, and ineffective enforcement
mechanisms. The report also notes that citizens in the region are receptive to regional
approaches and integration.
6. The public sector strategy in St. Vincent and the Grenadines is focused on improving the
delivery of public sector services, improve internal efficiency (including lower costs of public
service delivery), improve coordination between agencies, and increase transparency through
the use of ICTs with the overall objective of contributing to regional integration.
7. Modernizing the public sector and the delivery of public sector services through the use of
ICTs could potentially be done in a number of ways. In order to target the sectors where
3 World Bank Group Country Assistance Strategy for the OECS for the period FY06-FY09, September 6, 2005, p. v
4 OECS Institutional and Organizational Capacity Review of the Core Public Sector (IOCR), pages 48-49, 90.
5 The survey was conducted by Market Research Surveys, Ltd., and managed by the World Bank. Research was
conducted between February and April, 2005. 6 Serious dissatisfaction was expressed with the services of the police, the courts, public hospitals, solid waste
disposal agencies and agencies responsible for sale of agricultural produce and environmental protection.
3
interventions are most needed, and are also in line with country priorities, specific areas for e-
government interventions were selected during a stakeholder workshop held in 2007. In
anticipation of the workshop, the country representatives had submitted their countries‘
priorities, and during the workshop, these priorities were discussed and then matched across
countries. Input on regional priorities was also obtained from the OECS Secretariat, as well as
from the ECCB. In selecting the specific interventions to be included in the project, in
addition to the perceived priority by the participating countries, a number of additional criteria
were utilized, in particular the following: (i) its likely developmental impact and contribution
to the public sector modernization agenda; (ii) the extent of contribution to or impact on policy
harmonization and regional integration; (iii) likelihood of achieving early results or ―Quick
Wins‖. Further prioritization took place on the basis of (iv) cost of implementation within
available budget; and (v) local capacity for adoption and sustainable use.
8. Several World Bank reports, notably the Doing Business 2007: OECS7, and various
European Union studies have shown that modernizing the public sector and the delivery of
public sector services through the use of ICTs can be beneficial to small island states such as
St. Vincent and the Grenadines. ICT- fuelled public sector modernization in the identified
areas will help St. Vincent and the Grenadines improve the business environment, and
otherwise contribute to private sector development. This project would directly contribute to
the ease of doing business in the country by digitizing records, enhancing online access, and
facilitating data exchange and processing. These improvements would enhance the ease of
enforcing contracts, filing and paying taxes, and trading across borders. They would also
improve the overall quality and timeliness of the information produced by the various public
sector ministries and agencies, thus creating an environment conducive to improved
governance and public oversight. Additionally, by streamlining the public sector processes
and information exchange, St. Vincent and the Grenadines can foster an enabling environment
for the further development of the private sector so that it can assume a more active role in
further growth.
9. Generally across the region many of the countries focus on public sector reform, including
the revision and update of the Legal and Regulatory environment, modernization of the
Budget and Treasury systems, introduction of new tax administration mechanisms and the
restructuring of the Civil Registry. There is significant progress yet to be achieved in St.
Vincent and the Grenadines both in the context of the overall system‘s introduction/upgrade,
and the revision of the underlying policies and processes.
10. The EGRIP components were selected on the basis of the Bank‘s first mission in February
2007, which met with over 70 decision makers in all Member States and stakeholder
organizations. A Stakeholder Workshop took place in May 2007, which was followed by
further consultations in November 2007 and an appraisal and technical discussions workshop
in March 2008. The Program was approved by the Board of Directors on May 29, 2008,
initially including Dominica, Grenada and St. Lucia, but leaving the door open for the addition
of St. Vincent and the Grenadines, St. Kitts and Nevis and Antigua and Barbuda. In the case of
St. Vincent and the Grenadines, subsequent discussions were held during the second half of
2008, Cabinet approval for participation in the Program was obtained in November 2008 and a
further technical discussions workshop took place in April 2009.
7 Doing Business 2007: OECS, Copyright 2006, p. 1
4
11. This regional consultation processes provided the basis to create the main project
components that are classified according to the cross-cutting (horizontal) or sectoral (vertical)
nature. Component one therefore focuses on horizontal initiatives and component two focuses
on selected vertical applications.
12. The key public sector areas selected using the above framework were Registries and
Multipurpose Identification Systems in Component 1, and Public financial Management,
Customs Administration, Tax Administration, and Procurement in Component 2. A
performance or results-based approach has been integrated into the project, and in particular,
Component 2. The proposed systems upgrades and activities under this component
incorporate potential support for results-based management. For example, the
SMARTSTREAM, Standard Integrated Tax Administration System (SIGTAS), and Automatic
System for Customs Data (ASYCUDA) all support application of a result focus through
management and decision making tools for operational and strategic management reporting.
The integrated e-government project will provide the backbone for implementing the proposed
reforms.
B. Rationale for Bank involvement
13. This project emerges from an increasingly strongly articulated political will and
determination for sub-regional cooperation. Particularly strong was the realization that
cooperation in the area of e-government, understood broadly as the application of ICT for
public sector modernization, can produce important outcomes in terms of reducing the cost of
doing business, improving public sector efficiency, transparency and accountability, as well as
lead to more sub-regional harmonization and integration. The project wishes to follow in the
footsteps of the widely successful sub-regional cooperation in the area of telecommunications,
and aims at expanding that cooperation to the broader ICT field.
14. In view of the scarcity of financial resources for e-government development across the
region, the World Bank is well positioned to provide the necessary resources and knowledge
to implement this project. By using a regional approach to promote integration,
competitiveness, public sector efficiency and transparency, the e-government initiative will
provide the countries of the region the benefits of economies of scale and related synergies.
15. This project, consistent with the core principles of the OECS FY06-09 CAS guidelines,
seeks to modernize public administration and rationalize public service delivery to enhance
growth, and improve the efficiency and effectiveness of public services. In addition, it
complements other related Bank activities, notably, support for stimulating growth and
improvement of competitiveness as well as improvement of the quality of social services.
16. The addition of St. Vincent and the Grenadines into the OECS EGRIP program provides
an opportunity to effectively leverage on the findings and recommendations of the OECS
Fiduciary Policy Note, which was completed in October 2007.8 One set of recommendations is
8 The Note recommends improving the efficiency of project implementation in the OECS countries by (i)
contributing to a more efficient use of limited institutional and human resource capacity, (ii) lowering transactions
costs, and (iii) optimizing the use of public funds, while (iv) maintaining a robust control framework.
5
focused on improving the efficiency of the financial management and procurement systems
permeating the entire cycle of public sector activities, which is particularly relevant to the
objectives of this project and provides further justification to some of the proposed
components.
17. The project is also complementary to other donor activities in the region and is formulated
with due consideration of the CARICOM Connectivity Agenda (2003) and the Action-
Oriented E-Government Strategy for Countries of the Caribbean Region 2004-2007. In
particular, the project will be closely coordinated with the EU SFA 2005 program and CIDA‘s
upcoming Supporting Economic Management in the Caribbean (SEMCAR) program which
will build on the successes of Eastern Caribbean Economic Management Project (ECEMP)
and Guyana Economic Management Program GEMP.
18. The EGRIP will closely coordinate its proposed activities with those already implemented
by these projects and by others being planned by donors, and will look for opportunities to
build upon and complement them whenever possible. To a large extent, focus will be on
improving the front-end aspects of government service delivery to citizens and businesses
within a regional framework.
C. Higher level objectives to which the project contributes
19. The proposed EGRIP aims to contribute to the Government of St. Vincent and the
Grenadines‘ strategic objectives of modernizing the public sector, reducing costs, developing
the private sector, enhancing social inclusion, facilitating regional integration, and increasing
competitiveness in the country.
20. The proposed project, stemming from strong client demand as confirmed directly by the
Prime Minister of St. Vincent and the Grenadines, should be seen as a complementary and
catalytic initiative aimed at reinforcing the efforts on the ground in implementing various
public sector reforms and e-government programs across the sub-region. By harvesting the
―low hanging fruit‖ in key priority areas, and achieving early results, the project expects to
create additional momentum to achieve further benefits from highly desired reforms and more
robust e-government implementation. It is therefore designed as the first stage of what could
become a wide e-government implementation program, ultimately impacting various sectors
across the region.
21. In addition, while this project is not primarily directed at private sector development, it
does seek to strengthen the enabling environment for small business development through
support for enhanced State-private sector collaboration and improved quality of public sector
services. It will also provide the Government of St. Vincent and the Grenadines with the tools
necessary to ―right-size‖ public sector functions.
22. The EGRIP is consistent with the strategies outlined in the World Bank OECS CAS,
Doing Business 2007: OECS, and the OECS IOCR. It harmonizes well with other Bank and
donor activities in the region, is designed after extensive client consultations to ensure
ownership, and is inspired by the previous success of other e-government initiatives in Small
Island Developing States.
6
II. PROJECT DESCRIPTION
A. Lending instrument
23. The proposed individual E-Government for Regional Integration Projects are designed to
collectively constitute the first phase of a regional OECS E-Government for Regional
Integration Program. The Program started with the approval of three IDA credits for the initial
participating countries: Dominica, Grenada, and St. Lucia.
24. St. Vincent and the Grenadines is now joining the Program through an IDA credit of
US$2.3 million equivalent or SDR 1.5 million. The Project already qualified for the eligibility
criteria for funding under IDA-14 regional envelope. The proposed second phase of the
Project therefore still fully meets the eligibility criteria for funding under the IDA-15 regional
envelope as approved by the World Bank Board of Directors.
25. The rationale for utilizing the special regional IDA envelope for this project hinges on the
important economies of scale that will be reaped through the regional approach envisaged by
this project and its important impact on furthering regional integration, currently high on the
political agenda of the OECS. The positive externalities that will accrue to the participating
countries by harmonizing policies and implementing common e-government services together,
as opposed to ―going it alone‖ are expected to be substantial and lie at the core of the rationale
for the project in the first place. In this context, the program fits the eligibility criteria of the
IDA-15 regional program, by promoting regional economic integration, supporting the
harmonization of regional policies and regulations, while at the same time implementing
regional programs that build implementation capacity and increase donor harmonization and
coordination.
26. The Program as a whole is expected to eventually include donor parallel financing in the
form of grants and/or concessional lending. However, the World Bank project design is not
reliant on donor co-financing materializing, as the project activities have been selected to be
self-contained and results achievable on the basis of the project activities alone.
27. The instrument chosen for the program is an Adaptable Program Loan (APL), which was
considered the most flexible instrument in terms of facilitating a phased regional approach that
can accommodate the various borrowers‘ needs in technical assistance, specialized advisory
services and targeted catalytic investments.
28. As stated in the Program PAD, this APL is at the same time horizontal and vertical9:
a. On the horizontal (country participation) axis, the project started with a first group
of three IDA-eligible countries (Dominica, Grenada, and St. Lucia), which is now
being followed by the fourth IDA-eligible country (St. Vincent and the
Grenadines). Other two OECS countries, which are not IDA-eligible (St. Kitts and
9 Please note that the terms ―horizontal‖ and ―vertical‖ in this paragraph refer to the geographic (country) and
temporal (phasing) dimensions of the program, respectively, whereas in the project description these terms refer to
inter-sectoral (or cross-cutting) and sector-specific activities.
7
Nevis and Antigua and Barbuda) would join in the future based on readiness,
eligibility for IBRD lending and availability of resources;
b. On the vertical (temporal) axis, the program is structured in two phases. The first
phase corresponds to the project described in this document, with two main
components focusing on cross-sectoral e-government issues as well as specific
sector applications, mainly in the public finance area. The second phase is
expected to expand the regional e-government program into other sectors10
.
29. St. Vincent & the Grenadines has met the criteria for inclusion in the Program, as stated in
the Program PAD, in view of the following:
a. Adequate readiness of the legal framework for e-government, as evidenced by the
existence of the Electronic Transactions Act of 2007.
b. Adequate readiness of the institutional framework for e-government, as
evidenced, by the existence of the Ministry of Telecommunications, Science,
Technology and Industry which has the mandate and adequate staffing to lead the
e-government agenda in the country.
c. The confirmation of government commitment and IDA lending requirements
through official letters dated April 1 and May 14, 2009, respectively.
B. Project development objective and key indicators
30. The overall development objective of the project is to promote the efficiency, quality, and
transparency of public services through the delivery of regionally integrated e-government
applications that take advantage of economies of scale. Regional integration refers to the
implementation of a harmonized regional e-government framework and e-government
applications that are interoperable and deployed to users across the region. Such applications
are expected to produce time- and cost-savings for governments, businesses and private
citizens as well as greater quality of service provision, including increased transparency for
users and the public. The expected benefits would accrue in the areas of public sector reform,
empowerment of citizens and businesses, and efficiency gains for institutions and end-users
through automation and pooling resources at the regional level.
31. To measure the progress toward achieving the project development objective and
outcomes, key indicators were defined along the categories of the table below. Further details
on determining specific variables, baselines and target values are included in Annex 3.
Specific parameters of indicators as well as baseline values will be determined and collected
shortly after project effectiveness through a study funded by the project.
Theme of indicator Specific PDO Indicators
Efficiency: government cost-savings
Government financial savings in areas
such as public financial management,
tax administration, customs and
10
Additional phases could be agreed, and if so, the program would be amended with the appropriate internal
reviews.
8
procurement due to new e-government
systems ($/country/yr)
Efficiency: user (citizen/business) cost and
time-savings
Estimated users‘ time and cost-savings
of new e-government system (measured
through standardized methodology for
representative transactions)
Quality: Usage
Increase in number of electronic
transactions processed by e-government
services funded under the project (total
# of transactions, broken down by
service and national/regional, where
applicable)
Quality: Scope of Services Increase in e-government services
offered or upgraded (#)
Quality: Satisfaction
Improvement of ratings in areas of
functionality, accuracy and usability of
e-government services, as reported by
users through satisfaction surveys
Transparency
Improvement of ratings in areas of
openness, responsiveness and access to
relevant information, as reported by
users through satisfaction surveys
Regionalization
New regional institutional framework is
created with adequate capacity to
provide regionally integrated e-
government services, in accordance
with regionally harmonized policies and
regulations
32. The specific indicators per component and sub-component, as well as baseline and targets
for these indicators, where available, are detailed in the Results Framework and Arrangements
for Results Monitoring tables in Annex 3.
C. Project components
33. The project has two main substantive components: Horizontal (Cross-Sectoral) E-
Government Interventions and Vertical (Sectoral) E-Government. Both components were
articulated and agreed on through a regional consultation process involving substantial
ongoing input from all key stakeholders, considering specific client needs in the regional
context, implementation capacity, and the challenges identified by ICT sector assessments. A
third component for project management is also included in both phases.
34. The break-down by components for St. Vincent and the Grenadines is indicated in the
table below.
9
Table 1: Notional Phase 1 lending envelope by component (US$ million) Component/Sub-component IDA
1. Horizontal e-government interventions 0.80
1.1 Policy and strategy implementation 0.06
1.2 Legal and regulatory framework implementation 0.03
1.3 ICT Standards and Total Cost of Ownership Optimization 0.13
1.4 Regional E-Government Institutional Framework Strengthening 0.35
1.5 Automated Registries and Multi-Purpose ID Systems 0.23
2. Vertical e-government interventions 1.32
2.1 E-Government in Public Financial Management 0.14
2.2 E-Government in Tax Administration 0.20
2.3 E-Government in Customs 0.16
2.4 Electronic Government Procurement 0.20
2.5 E-Government in Health, Postal, Roads and Other Sectors 0.62
3. Project Management 0.16
Unallocated 0.02
TOTAL 2.30
35. The components are structured along the same logic as an increasing number of recent e-
government strategies, whereby e-government initiatives are classified according to their
cross-cutting (horizontal) or sectoral (vertical) nature, as described schematically in the
framework diagram of Figure 1 below. Hence, component one is devoted to horizontal
initiatives, whereas component two focuses on selected vertical applications.
Figure 1. Overall e-government conceptual framework.
36. In light of the fact that the countries‘ top priorities are concentrated in the area of public
finance (both on the expenditure and the revenue side), component two is the largest of the
project and is primarily dedicated to these priority areas. However, there was strong client
demand for including a number of initiatives outside of the traditional public finance area, so
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Financial M
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Agriculture
Education
Health
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Procurem
ent
Custom
s/ Tax
Shared infrastructure
Shared and Common Services
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Energ
y T
ransport
10
as to explore e-government applications in social and productive sectors (e.g. health,
education, agriculture, tourism, postal, among others).
37. However, given the high priority of health, a specific subcomponent 2.5 is included in
Phase 1 of the program, focused primarily around e-government in health. That same
subcomponent will include additional preparatory or complementary activities in other sectors,
such as the postal sector, among others, in the case of St. Vincent and the Grenadines.
Furthermore, unallocated resources are set aside to allow for additional flexibility in
complementing activities under the project.
COMPONENT 1 - Horizontal E-Government Interventions (US$ 800,000)
38. The objectives of this component are to strengthen and harmonize national and regional
e-government processes, operational ICT platforms and frameworks; to promote more
efficient regionally-based ICT development and strengthen capacity, and to provide an
enabling environment to achieve Public Administration objectives in a globally competitive
context, and to better serve citizens, businesses and consumers in the region.
39. Emphasis will be given to capacity building of Public Administration by providing
stakeholders with assistance to implement and further improve already harmonized regional
and national sector policy, strategy, legislation and related legal and regulatory frameworks,
and to develop a structured sustainable means to move forward and improve coordination in e-
government on a regional basis. It must be noted that no new legislation is expected to be
required for the successful implementation of the project.
40. Subcomponent 1.1 - Policy and Strategy Implementation (US$ 60,000): This
subcomponent will build on existing e-government policy and strategy development efforts,
notably under EU-funded programs. The purpose of this subcomponent is to provide
assistance in specific aspects of implementation of the national e-government strategies, as
well as provide support for updating and harmonizing e-government policies and strategies
across the region through on-going consultation with key actors, as well as provide a
framework for regional e-government cooperation activities. At the regional level, the
subcomponent includes the following activities: (a) Strategic review and assessment, including
comparative analysis of high-level regional e-government vision and goals, global lessons
learned, update of national and regional OECS e-government strategies, as well as definition
of detailed implementation action plan; (b) Monitoring and evaluation framework, including
clearly defined timeframe, criteria and indicators, as well as detailed baseline and monitoring
data collection.
41. Subcomponent 1.2 - Legal and Regulatory Framework Implementation (US$ 30,000):
This subcomponent will provide complementary contributions to the EU-funded effort to
harmonize legal and regulatory frameworks for electronic transactions, focusing on
implementation aspects. At the regional level, this subcomponent includes the following
activities: (a) Gap analysis and overall assistance for harmonized legal and regulatory
framework development and implementation, which may involve complementary regulatory
drafting notably on electronic transactions and digital signatures; privacy and data protection;
11
computer misuse; interception of communications; and freedom of information, among others;
and (b) Equipment, software and training for implementation of selected pieces of legislation.
42. In the case of St. Vincent and the Grenadines, since current projects under implementation
have allocations for legal and regulatory framework, the overall allocation to this component
has been reduced.
43. Subcomponent 1.3 – ICT Standards and Total Cost of Ownership Optimization (US$
125,000): This subcomponent is aimed at assisting countries in improving their e-government
standards and architectures, as well as overall public sector ICT management and investment
practices. The subcomponent will assist countries in identifying potential savings in ICT
projects through such tools as pooled procurement of software licenses, implementation of
Public-Private Partnerships, and developing frameworks for the assessment of the total cost of
ownership of a specific solution (including open source software), among others. This includes
analyzing and recommending common information system architectures and standards, viable
mechanisms to support and maintain information systems, and establishing sustainable unified
policy, strategy and implementing guidelines for on-going optimization. The subcomponent
includes the following activities, among others: (a) Assessment of current standards and
architectures, definition of harmonized e-government standards, interoperability framework
and enterprise architecture (on the basis of Service-Oriented Architectures); (b) Assessment of
ICT management and investment practices, development of framework for total cost of
ownership analysis and optimization, identification of potential savings and strategy for
pooled procurement of software licenses; (c) Assistance for pooled procurement of software
licenses on pilot basis; and (d) Capacity building on standards, service architecture, open
source software and Total Cost of Ownership optimization.
44. Specifically for St. Vincent and the Grenadines, as part of the activities above, emphasis
will be given to the use of open source software and ownership of software licenses. This will
reduce the total cost and annual payments for licenses and help develop the sub-regional
human capacity, competence and available expertise within the OECS.
45. Subcomponent 1.4 – Regional E-Government Institutional Framework Strengthening (US$
350,000): This subcomponent will assess the current institutional framework for e-
government project implementation and technical support in the participating countries, and
will provide assistance in the strengthening of the regional institutional framework for e-
government. One option that will be explored through the project, among others, is the
creation of a self-financing sustainable regional E-Government Center of Excellence to
provide participating countries with policy guidance, technical support and capacity building
in the implementation of ICT systems in government, while at the same time implementing
key regional projects and e-government applications on behalf of the participating countries
(such as the regional e-procurement platform), as well as focusing on internationally
recognized certifications, mentoring and ‗train the trainer‘ programs. It will achieve self-
financing and future sustainability by provision of services to the participating governments
and the private sector, such as: management of hardware and software maintenance contracts,
application development and hosting, management of regional information systems (e.g. the e-
procurement platform), as well as provision of technical advisory, certification, training and
capacity building services, among others. Alternative options for performing the functions of
12
a regional e-government center of excellence, include a network of national-level institutions
(such as the existing e-government or ICT units), or integration into a CARICOM-wide e-
government center of excellence or network of centers. The subcomponent includes the
following activities, among others: (a) review of regional e-government institutional
framework, assess options and business plan, and strategic institutional design and
implementation action plan, including governance structure, organizational and business
model, implementation arrangements, staffing, action plan for the first 18 months, etc.; (b)
start-up implementation support for the new regional e-government institutional framework,
including assistance in the establishment of initial service agreements with participating
countries, partnership arrangements with international experts from academia, industry and
governments; (c) equipment for start-up implementation; (d) Support to national e-government
units, through country-based specialists, among others, and assistance to steering committees,
including support for enhancing coordination with donors; and (e) Training and capacity
building at the national level.
46. Subcomponent 1.5 – Automated Registries and Multi-Purpose Identification Systems (US$
230,000): This subcomponent will review the current status of key government registries and
support the creation of harmonized National Identification Systems as a core shared service to be
used throughout all e-government platforms, integrated with other key information systems at the
national and regional level, where appropriate (Civil and Business Registries, Immigration
Systems and Election Systems). The subcomponent includes the following activities, among
others: (a) Needs assessment for national ID system, evaluation and simplification of
processes as needed, and design of Multi-Purpose Identification System as a core piece of the
overall interoperability framework; (b) Development and implementation of system, including
software development, modernization of business and civil registry, election card system, if
required, and integration of back end systems and databases; (c) Implementation assistance in
core user agencies; (d) Pooled procurement of necessary equipment and National ID cards;
and (e) training and consensus building.
47. In the case of St. Vincent and the Grenadines, a priority area for this subcomponent will be
the modernization of business and civil registries, with less emphasis on the new ID card
system, given that the Electoral Office is already implementing such a system.
COMPONENT 2 – Vertical E-Government Interventions (US$ 1.32 million)
48. The objective of this component is to harmonize and improve key e-government systems
by focusing on specific interventions in core areas of public finance. This area was identified
as a national and regional priority by all stakeholders, due to regional commonalities that can
be used as a pragmatic basis to begin to harmonize regional e-government systems, to
modernize their Public Administrations, to evolve guidelines, and to catalyze further
integration in regional processes.
49. In many aspects, the activities included in this component will build upon, and
complement results achieved by the CIDA-sponsored ECEMP program, which is focused on
the modernization and capacity-building of the public finance sector. CIDA is currently in the
process of preparing its new SEMCAR program, which is expected to include further support
for the modernization of core PFM systems, including tax and customs. To that end, CIDA has
13
recently completed an IT diagnostic study through CARTAC, which will inform the design of
SEMCAR as well as prove a useful input to the detailed activities foreseen under EGRIP. In
light of that, EGRIP will focus on web-based front-end systems, for service delivery as well as
interfaces and interoperability among systems, thus minimizing the potential areas for overlap
and maximizing the overall efficiency and synergies of the proposed activities. EGRIP and
SEMCAR will be closely coordinated throughout implementation.
50. This component will coordinate closely with Component 1 (Horizontal E-Government
Interventions) to ensure that the desired vertical goals are supported by the newly developed
horizontal tools, standards and regulations.
51. Subcomponent 2.1 – E-Government in Public Financial Management (US$ 140,000): This
subcomponent will upgrade, integrate and bring to a full capacity existing public finance
systems - budget, treasury and financial reporting, (in most cases, implemented on the basis of
the ―SmartStream‖ software solution), provide better services and information to government
employees and the public in general, and avoid duplication of work in a context of scarce
human resource capacity. This will involve, among others, the full implementation and
integration of budgeting, accounting and reporting modules; full implementation of the HR
module, if applicable; update of the underlying processes and control framework; design of
interfaces to link budget, revenue (tax, customs), expenditure and reporting modules, as well
as development of a web-based public information system, aimed at providing information to
the public at large on government finances in an easily understandable format. This
subcomponent will include the following activities at the regional level: (a) Overall assistance
for PFM sub-component implementation; (b) Gap analysis between government financial
management needs and the PFM systems capabilities; (c) Using the results of (b) as an input,
upgrade and integration of the HR, budgeting, accounting and financial reporting modules and
databases; development and implementation of comprehensive, results-oriented budget
classifications and standardized financial reporting formats; (d) Development of user-friendly
interfaces linking budget, revenue (tax, customs), expenditure and financial reporting modules
into a single public finance system; (e) Development of a web-based public information
system, aimed at providing information to the public at large on government finances in an
easily understandable format; (f) Development of the PFM system operations manual/user
guidelines, and personnel training; and (g) PFM system maintenance contract.
52. Subcomponent 2.2 – E-Government in Tax Administration (US$ 200,000): This
subcomponent is aimed at developing an on-line registration and electronic tax filing
subsystem to interface with the tax management system. It is expected that the current core tax
administration system, SIGTAS, will be upgraded or migrated with the support of a parallel
CIDA regional program. The on-line filing module will be designed so that it can interface
with any underlying core tax administration system, and will allow for integration with the
banking system for payments and refunds, including through a future regional payments
gateway. This subcomponent will also evaluate opportunities to share tax administration
system support through the regional center of excellence or other similar structure. The
subcomponent includes the following activities: (a) Overall assistance for tax system sub-
component implementation; (b) Design, development and implementation of on-line
registration and e-filing system; (c) Tax system personnel training and user manuals; and (d)
Tax system maintenance contract.
14
53. Subcomponent 2.3 - E-Government in Customs (US$ 160,000): This subcomponent is
aimed at creating a regional customs information sharing network within the context of the
upcoming OECS Economic Union. This will allow for interoperability of various customs
systems over heterogeneous regional platforms, as well as sharing and crossing of information
among public agencies involved in the export and import processes. It is expected that a
parallel CIDA regional program and existing World Bank programs in some of the countries
will support the migration to more modern versions of ASYCUDA. This subcomponent is
therefore not expected to assist in that area, but will support any additional systems upgrades
in particular the implementation of an electronic filing module, where required, maintenance
contracts, well-defined interfaces with PFM and tax administration systems, as well as
training. The subcomponent includes the following activities at the regional level: (a) Overall
assistance for customs sub-component implementation; (b) Regional customs information
network, including harmonization and aggregation of trade data, and implementation of the
on-line electronic manifest interchange module, among others; (c) Customs system upgrades
including electronic filing module and interface with PFM and tax systems; (d) Customs
system personnel training and manuals; and (e) Customs system maintenance contract.
54. Subcomponent 2.4 Electronic Government Procurement (US$ 200,000): This
subcomponent will create a regional e-procurement platform, based on the successful
experience of the OECS Pharmaceutical Procurement Service (PPS). This platform will
initially allow for the publication of online notices and award of contracts while eventually
moving to a transactional system for competitive tendering. This subcomponent will also
support the implementation of the national procurement systems, in particular, the
procurement module of SmartStream, and its integration with the regional e-procurement
platform. This subcomponent will explore alternative approaches including a Public-private
partnership (PPP) for implementation of the system. While a full-fledged outsourcing PPP
may not be a viable option in this context, intermediate PPP models may be explored, as well
as models based on the concept of ―cloud computing‖ and linkages with international e-
procurement initiatives, such as the Pan-European e-Procurement On-Line Initiative
(PEPPOL). The subcomponent includes the following activities: (a) Design and
implementation of an action plan for pooled procurement in the OECS, including assessment
of options for a PPP framework for e-procurement; (b) Development of a regional e-
procurement platform and transactional system for competitive tendering; (c) Upgrading and
integrating to the regional e-procurement platform the systems of the OECS PPS and related
capacity enhancement; and (d) Application of the regional e-procurement platform and the
PPS experience to other types of goods and services.
55. Subcomponent 2.5 E-Government in Health and Other Social and Productive Sectors (US$
620,000): This subcomponent will provide assistance in the implementation of a regional pilot
project in health management information systems, and may be complemented with small
preparatory and/or complementary activities in other social and productive sectors, such as
agriculture and tourism, as well as education, among others. The subcomponent includes the
following activities at the regional level: (a) Implementation of a regional e-government pilot
project in the health sector, through, in particular the design and implementation of a regional
health management information system, which may include facilities management systems,
electronic patient records, regional information network and on-line tools for Health
15
Ministries; and, (b) Preparatory activities and/or complementary support to existing e-
government initiatives in other social and productive sectors, notably agriculture and tourism,
as well as education, postal sector, or others as may be identified in the early stages of the
project.
56. In the case of St. Vincent and the Grenadines, insofar as they constitute preparatory
activities or complementary support to e-government activities in other social and productive
sectors, sub-component 2.5 (b) will include support for (i) expansion of the intranet backbone
in and outside the Kingstown area; (ii) computerizing and interconnecting the Postal
Corporation district branches; (iii) integrating the information technology systems of various
departments of the new Buildings, Roads and Bridges Authority; and (iv) upgrading and
operationalizing the government‘s web portal.
COMPONENT 3 – Project Management (US$ 160,000)
57. This component will support the establishment of the Regional E-Government Unit
(REGU) described below, under the direction of an overall Project Manager. The REGU will
also include specialized staff located in the agencies identified in each country as focal points
for the project, thus assisting in project implementation at the local level. To help manage the
fiduciary aspects of the project, there will be a Procurement Specialist, and a Project
Accountant. There is also a provision for office space and equipment, as well as other
operating costs, including those related to participation by REGU in international e-
government standards organizations. Finally, there are resources devoted to community
outreach and public awareness, as well as annual external audits.
UNALLOCATED (US$ 20,000)
58. A small amount of less than one percent of total project costs are set aside as unallocated
to allow for additional flexibility in complementing activities under the project.
D. Lessons learned and reflected in the project design
59. The design of the project reflects key lessons learned from previous operations in the
OECS, including Grenada and Dominica, and elsewhere in the world, from the Doing
Business report, and the CFAA/CPARs done in the region.
60. The following is a summary of the key lessons incorporated in the project design:
a. Work in the OECS states has shown the critical importance of having a harmonized
regional approach. The EGRIP project takes a strategic approach to assisting in sub-
regional cooperation by utilizing a regional approach in virtually all its components,
including the e-procurement component. The EGRIP project also demonstrates its
regional commitment through the key roles of regional organizations such as the OECS
Secretariat, the ECCB, ECTEL, CARTAC and CARICAD, among others
b. The need for reform to address areas that will show early, visible results to build strong
ownership as the reform process moves forward to address more difficult issues. In this
regard, the Bank is quite experienced and has a rich knowledge base in areas of work
16
related to modernization of Tax, Customs, Finance, and Procurement – key areas for the
EGRIP project. Hence the project is well-placed to demonstrate early positive results in
these areas.
c. Small economies with severe capacity constraints in the public sector and faced with a
relatively high vulnerability index, inclusive of periodic natural disasters, may require
longer adjustment periods and greater flexibility on the part of donors. This is reflected
in the design of the project which has two phases under the APL, and is expected to
benefit from coordinated donor assistance.
d. The need for adequate private sector participation and commitment. Experience from
previous similar Bank projects suggests that it is important to secure participation or
input from the private sector through consultation, and to continue to devolve functions
from the relatively public sector to the private sector. The design of this project has
benefited from input from consultations processes and consultations with the private
sector, e.g. under the auspices of the e-procurement sub-component
e. Projects that build institutional capacity and utilize existing Government systems and
structures for implementations are more likely to succeed and be sustainable than projects
that rely only on self-standing Project Implementation Units. At the same time it is
important to have a clear delineation between the national and the regional
implementation arrangement. Both lessons learned have been considered in the
preparation of this project.
f. Even though OECS countries have performed well in Doing Business 2007 report, there
are some of regulatory and institutional areas for further improvement. This project has
been designed taking in consideration those recommendations of improvement such as
harmonization of taxes and property registration where the OECS member countries
continue to use different legislation. The component Legal and Regulatory Framework
will provide complimentary contributions to the EU-funded effort to harmonize at the
regional level, the regulatory framework for electronic transactions. The project also
addresses one of the key recommendations made in this report, in relation to payment of
taxes i.e. the need to allow electronic filing and payment of taxes.
g. This project supports the institutional strengthening of the public financial management
function through addressing some weaknesses in public sector financial management that
apply across all or most countries. In many areas the proposed regional nature of the
project will hopefully enhance the impact and cost effectiveness of the proposed
interventions. The roll out, training and systems development in the areas of government
budgeting, accounting and reporting, and increased functionality of the systems are also
in line with OECS Fiduciary Policy Note and CFAA recommendations.
h. The CPAR of the OECS States (Dominica, Grenada, St. Kitts and Nevis, and St.
Vincent and the Grenadines) identified several instances that demonstrated the lack of
capacity and lack of transparency in the area of procurement. The more recent CPAR
for Dominica (June 2003) had similar follow-up recommendations for the OECS states
which included the need for a sound, harmonized regime for public sector procurement,
appropriate policy oversight arrangements at the regional and national levels, better
economies of scale at the regional level, a comprehensive regional capacity-building
strategy, and development of an appropriate set of tools to facilitate implementation of
the harmonized public sector procurement framework. The EGRIP project attempts to
address the capacity issues as related to procurement. In addition, the e-procurement pilot
contributes to the increased transparency of the procurement process. Finally the regional
17
nature of the pilot and the project overall, also addresses the regionalization issues that
were brought up in the CPARs.
i. Finally, the project is building on some lessons learned from Public Sector Modernization
efforts in Grenada that have shown the importance of taking a strategic, incremental
approach to public sector modernization versus a ―big bang‖ approach which takes time
to produce results and can easily tax the capacity of oversight agencies to manage the
process. E-government experiences from diverse locations, from the islands of Cape
Verde to the province of Nova Scotia, are also brought to bear on the design of this
project, both in terms of institutional design and negotiations with vendors to achieve
volume discounts. All this is reflected in the project design which takes an incremental
approach by addressing primarily the core public finance area first and by attempting to
achieve economies of scale through regional cooperation.
E. Alternatives considered and reasons for rejection
61. Alternative 1: individual country approach instead of the proposed regional
approach. Over the past five years the OECS region has actively organized workshops,
conferences, and e-readiness studies to determine a way forward in regional e-government
cooperation. Yet, only a few projects that would implement recommendations from these
studies have been initiated on the ground, notably in the public finance area, where a large
degree of regionalization has taken place. It remains conceivable for each country to continue
to ‗go it alone‘ and only cooperate ad hoc. While upfront costs for that approach may be
lower, every indication suggests that over time it would become increasingly expensive and
strategically detrimental, if not socially and economically irresponsible to other countries in
the region.
62. E-Government, by definition, increases interdependence between ICT, policies, and the
legal and regulatory framework. In an increasingly globally-connected world of rapid-paced
change, there is continuing need for increased collaboration, as well as for an institutionalized
framework to collaborate, to assess and to address increasingly complex areas. National and
regional systems must be able to update compatibility with global developments, and address
evolving global priorities such as security on an on-going basis in their technical, legal and
physical dimensions. This project will contribute a framework for faster proactive learning for
decision-makers to be better informed, more enfranchised in world developments and
equipped for responsible action. It also increases transparency and accountability. This
platform should also contribute to greater regionally institutionalized robustness to help
accelerate recovery. In view of the region‘s historic susceptibility to shocks, as well as
concerns about border integrity while promoting tourism and trade, and climate change, a
regional approach becomes even more important.
63. As mentioned in the World Bank CAS for the OECS, regional integration will play a
significant role in increasing competitiveness in the region. Not only will regional integration
enhance growth, but it will also reduce the cost of implementing projects on a regional level.
Donor activity in the region will be far more cost-effective if the OECS countries can work
together on a regional initiative. As small island developing states, progress is hindered by
diseconomies of scale where each island is isolated and forced to initiate independent capital
investment strategies. In the face of an increasingly competitive global environment, the
18
OECS must work together to develop a regional strategy that enhances cost-effectiveness
through increased economies of scale.
64. Alternative 2: invest in one single major application instead of in a number of smaller
initiatives. The Member States deliberated on the form that the project should take and
considered whether it would be more advisable to invest in one large high-profile e-
government project as opposed to seeding many smaller efforts. The diversity increases
capacity building through shared experiences, and reduces risk that potential contingencies in
any areas compromise achieving larger project objectives. The approach decided for the
project is also consistent with the aim of achieving ―quick wins‖ through small catalytic
investments, as opposed to a long drawn process covering one single area, which, if it fails,
would compromise the project as a whole.
65. Alternative 3: develop e-government through Public Private Partnerships (PPP)
exclusively. At an earlier conceptual phase some suggestions were put forward to consider
exploring Public Private Partnerships (PPP) as a main vehicle for e-government
implementation. Due attention is being given to ensure e-government applications that are
sustainable, including financial aspects. While PPP‘s may offer a source of potential added-
value over the longer-term, it was felt that the nascent regional e-government cooperation
being developed does not yet have sufficiently robust governance capacity to deal with the
added managerial challenges of a full-fledged PPP e-government implementation approach on
a regional level, at least in terms of setting the initial project scope. The project puts priority
on operational catalytic quick wins, to prove capability and increase attractiveness to donors,
investors, private sector, and put the Member States in a much stronger position to assess true
growth requirements based on benchmarks and to negotiate PPP‘s in subsequent stages
through follow-on projects. A small scale PPP is nonetheless under consideration, on a pilot
basis, for the e-procurement system.
66. Alternative 4: traditional public sector reform project with less emphasis on ICTs.
The past years have seen increased broadband connectivity in the OECS and decreased
overhead costs for broadband access, combined with spectacular increase worldwide in novel
broadband applications providing a prolific array of new web-based and mobile
communication and collaboration, including video. Given this background, the Member States
recognize that they now have the potential to capitalize on their regional achievements in
telecommunications and on their e-government ‗lessons learned‘. By leveraging ICTs towards
public sector reform objectives, the Member States expect to achieve more impact than would
otherwise be possible without ICTs.
III. IMPLEMENTATION
A. Partnership arrangements
67. The project will be closely coordinated with donor activities in the region, notably the EU
e-government programs and budget support assistance, CIDA‘s new SEMCAR program, as
well as other programs being supported by the CDB, OAS, UNDP, CARTAC and CARICAD,
among others. Opportunities are being actively sought for tight coordination of donor activity
in this field, including the option of co-financing of project activities. While exact
arrangements for co-financing could not be concluded within the short space available for
19
approval of this IDA operation, discussions with donors are progressing and it is expected that
specific arrangements will be made in the early stages of project implementation, at which
point a determination will be made as to any eventual reallocation or cancellation of project
funds.
B. Institutional and implementation arrangements
68. The project will be implemented by the OECS Secretariat, Regional E-Government Unit
(REGU). For effective project implementation, the organizational structure will be defined at
two levels: regional and national.
a. At the regional level, two new structures are being created, the Regional
Technical Committee (RTC) for the project and the regional E-Government Unit
(REGU), which will be a specialized unit within the OECS Secretariat, the
implementing agency for the project.
b. At the national level, the project will be coordinated by the respective ICT or e-
government units, which will be the national focal points for the project and will
provide assistance to the REGU in implementing the relevant activities at the
national level. The national focal point will be the Ministry of
Telecommunications, Science, Technology and Industry in the case of St. Vincent
and the Grenadines, and will be in charge of the day-to-day management of the
technical and logistical aspects of the project at the national level, including the
work program, coordinating with the relevant ministries and departments, and the
preparation of terms of reference and technical specifications. This unit will
coordinate its work and receive guidance from the National ICT Forum. No new
structures at the national level are being created for this project.
69. The RTC will be responsible for providing overall policy guidance to the REGU including
monitoring and evaluation of implementation progress and addressing implementation
bottlenecks. Detailed description of roles and responsibilities as well as composition of the
Steering Committees (RTC/NSCs), the implementing agency and the national focal point units
are included in the Project Operational Manual.
70. Given the multisectoral and regional nature of the project, the RTC will be comprised of
country representatives appointed by the participating governments at the level of Permanent
Secretary or higher, as well as the OECS Secretariat. It will also include representatives from
the other OECS states, CARICAD, CARTAC, ECCB and ECTEL, on an advisory role. The
RTC will be chaired on a rotating basis by the participating governments. The REGU will act
as the executive secretariat of the RTC. Any major policy decisions requiring the agreement of
the Heads of State will be channeled through the OECS Secretariat to the relevant OECS
Authority Meeting.
71. The REGU will be responsible for the day-to-day administration of the project, in its
technical, procurement and financial aspects (project fund flow will be handled centrally). The
REGU will report directly to the OECS Secretariat, will seek guidance from the RTC, and will
be responsible for providing timely reports to the governments, the Bank and other donors.
20
The REGU will be staffed with highly qualified technical staff selected from among the
participating countries. Technical staff from CARICAD, CARTAC, ECCB and ECTEL may
also act as advisors to this unit, as needed. This unit will consist of a Project manager, as well
as a procurement specialist and a project accountant. It will be assisted by one fully paid
country-based local specialist per participating country, who will be staff of the REGU located
within existing ICT or e-government units at the national level. Once alternative options are
assessed, it is possible that during project implementation a new Regional Institutional
Framework for E-Government (including the option of a Regional Center of Excellence) may
emerge out of the REGU, to support broad e-government implementation at the regional level,
manage regional platforms and provide technical support.
72. At the national level, in the case of St. Vincent and the Grenadines, the Ministry of
Telecommunications, Science, Technology and Industry will act as the national focal point for
the project, in close coordination with the Director General of Finance and Planning. The
Information Technology Services Division (ITSD), located in the Ministry of
Telecommunications, Science, Technology and Industry, focuses on training, development
and maintenance, software evaluation, and coordination of Government IT operations and
projects. The principal objectives are the on-going development, operation and maintenance of
Computer Systems for ministries, departments and quasi government Organisations and to
support all other government departments in terms of planning, implementing, diagnosing IT
Systems. The Unit is well staffed, with sufficient capacity to undertake the e-government
program. A National ICT Advisory Forum has been created under the ICT Development
Programme (EU SFA 2005), and would also provide support for this project. An ad-hoc
steering committee including the various stakeholders involved in the activities foreseen under
EGRIP may also be created to provide support for the implementation of the project.
73. The diagram below summarizes the key elements of the overall implementation
arrangements. More details on the implementation arrangements are provided in Annex 6.
Figure 2. Implementation arrangements.
OECS Secretariat
OECS Authority
National Steering Committee
Regional
National
New Regional Institutional Framework
for E-Government
Regional E-government
Unit (REGU)
Agency Agency
Agency
Agency
E-government/ICT unit
Regional Technical
Committee (RTC)
21
C. Monitoring and evaluation of outcomes/results
74. Monitoring and Evaluation (M&E) of project components and sub-components will be a
streamlined, integrated aspect of project implementation and management. The following
arrangements are made for this project (more details can be found in Annex 3):
Some indicators may be selected as informal indicators, which will be useful for
following the results and successes of each sub-component, but will not be considered
binding to the project‘s monitoring and evaluation framework. This may be the case with
indicators for which data collection may be more ambitious or challenging, or where
sustainability or reliability is currently not known.
An M&E training will be conducted by experts of the World Bank for the REGU and
their M&E delegates at the time of project launch. The training will cover the basics of
(a) monitoring and evaluation frameworks, (b) different types of indicators, including
impact and outcome indicators, (c) collection efforts, (d) reporting requirements for the
World Bank project. After the training, the national focal points will be asked to present
their plans for data collection through the lifetime of the project, and commit to supplying
the REGU with (1) baseline data within a month of project signing and (2) updates on the
actual/projected data during each World Bank supervision mission.
Data collection and reporting will be the ultimate responsibility of the REGU and
national focal points.
Data collection and reporting should be automated where possible, and be written into the
TORs where sub-components such as portals or applications are implemented by a
vendor. For example, an application should be delivered such that it counts, for example,
its unique users, downloaded forms, and transactions, and is able to create a simple report
of aggregated numbers at regular intervals, or on demand. Associated costs need to be
written into the budgets for the sub-components.
A budget for survey-based collection of results data will be provided under the project.
The mid-term project review may offer the opportunity to amend the indicator series, or
target values based on evolving circumstances.
D. Sustainability
75. The results of the project are expected to be sustainable given the strong emphasis of the
project on institutional strengthening and capacity building, as well as on identifying models
for sustainable technology management, through total cost of ownership analysis. In addition,
as a result of the project, it is likely that a new regional institutional framework for e-
government will emerge, on the basis of a number of alternative models that will be assessed.
This new institutional framework for e-government sustainability will be strongly anchored in
the institutional framework of the OECS Economic Union, and will become the major
guarantor of the future sustainability of the project as a whole. The exact financial model to
ensure the sustainability of this new framework will be defined in the early stages of the
project. It is expected that potential service revenue streams may involve maintenance
contracts, technical advisory fees, application development and hosting, management fees for
regional information systems (e.g. the e-procurement platform), as well as revenues derived
from consulting, training and capacity building activities, among others.
22
E. Critical risks and possible controversial aspects
76. The potential risks and efforts to mitigate them are included below:
Nr Critical Risks Risk
Assessment
Mitigation Measures Residual
Rating
1. Project Complexity and
Institutional Capacity of
participating institutions to
project manage and coordinate
across Ministries / agencies
involved; possible competition
between Ministries; and
involvement of multiple
countries
S The proposed project will include substantial
support for capacity building, following
international good practices in e-
government, project management and
monitoring and evaluation. The project team
will strive to reduce complexity by applying
existing working models, and coordinate
between countries by keeping the project
aligned on clear measurable outcomes, full
stakeholder involvement, a communication
strategy, and by learning from experiences
and sharing knowledge in roll-out
throughout the sub-region.
S
2. Governments readiness to
engage at the regional level in
pooled procurement of software
licenses and IT support services
S The proposed project‘s key design
parameters will include (i) emphasis on cost
savings thanks to regional cooperation,
through identification of best practice ―quick
wins‖ with good likelihood for success; (ii)
building on existing models of regional
cooperation, e.g. through the OECS
Secretariat and ECTEL; (iii) flexibility, to
allow countries to join the program on a
readiness basis.
M
3. Resistance of public sector
employees to support transition
to regional e-government
applications
M While the current attitude towards
e-government appears to be positive, the
project will strive to identify Change
Management Champions to lead the
implementation. Capacity building and
communications will be designed to promote
public sector employees‘ alignment with the
e-government program‘s goals, policies, and
procedures.
L
4. High turnover or attrition of
public sector employees
M Staff of the REGU will be selected based on
qualifications and recruited on the basis of
competitive salaries under consulting
contracts, so turnover is expected to be
limited. With regards to broader public
sector, capacity building and
communications under the project will
provide public sector employees‘ with
opportunities for professional growth.
L
5. Non-aligned expectations and
inefficiency among donors arising from lack of coordination
M Project scope is contained to a robust group
of key directly involved stakeholders.
Longer-term the project aspires to create a
platform to progressively improve donor
coordination in the region.
M
6. Limited enabling environment for electronic and mobile
transactions
M The project goal is not to deploy the most
recent experimental ICT, but to consolidate
existing efforts and build on proven
solutions and ―quick wins‖.
L
23
7. National political priorities not
aligned with the regional
integration agenda in the field
of e-government could hamper
decision-making, and outcomes
M The project will be designed as a tool to
support and implement already ongoing
public sector modernization efforts. Existing
models of regional cooperation will be built
upon, such as the successful ECTEL.
M
8. FM Risk Rating S The project has incorporated selected lessons
learned from the CFAA to protect against
the more obvious FM risks. See Annex 7 for
a detailed FM action plan.
S
9. Procurement Risk Rating H The project has incorporated selected lessons
learned from the CPAR to protect against the
more obvious procurement risks. IT
procurement risk remains significant. See
Annex 8 for a detailed Procurement action
plan.
S
Overall Risk Rating S M
L = Low; M = Medium; S = Substantial; H = High.
F. Loan/credit conditions and covenants
77. By Effectiveness: (a) the Subsidiary Agreement has been executed on behalf of the
Recipient and the Project Implementing Entity; (b) all conditions precedent to the
effectiveness of the Other Financing Agreements, other than those related to the effectiveness
of this Agreement have been fulfilled; (c) the Operational Manual has been adopted by the
Project Implementing Entity; (d) the REGU has been established and the Project manager,
procurement specialist and Project accountant hired; (e) the RTC has been established and
expanded to include a representative of the Recipient; and (f) an amendment to the Project
Agreement has been signed to include the Recipient as an additional Participating Country and
the Project Implementing Entity has provided a supplementary legal opinion with regard to
such amendment. Additionally, the Bank requires a legal opinion in relation to the Subsidiary
Agreement confirming that the Subsidiary Agreement has been duly authorized or ratified by
the Borrower and the Project Implementing Entity and is legally binding on all parties to the
Subsidiary Agreement in accordance with its terms.
IV. APPRAISAL SUMMARY
A. Economic and financial analyses
78. The Economic and financial analysis of Technical Assistance Operations such as the
proposed OECS EGRIP, traditionally focus on the broader economic impact of the activity
rather than attempting to calculate a rate of return. The key impact of the activity will be
through indirect effects. These effects, however, are of great importance for the higher-level
objective to create a political and economic union within the OECS. The project will create
necessary conditions for this union. However, the project will also support a small number of
investment activities with a high rate of return, sufficient to provide an expected positive rate
of return within a few years of implementation.
79. The necessary conditions achieved through the project will include steps towards a (i)
Fiscal consolidation, (ii) Expenditure Management, (iii) a common labor market, (iv) Private
Sector Development, (v) VAT harmonization, (vi) improved customs procedures and (vii) tax
collection.
24
80. As detailed in Annex 9, an economic and financial analysis of the Program was conducted
taking into account the three countries that participated in the first group together with St.
Vincent and the Grenadines, for a total investment of US$ 9.6 million. One particular
investment component was analyzed in depth, the Regional E-Procurement platform, and it is
estimated that it will create savings in the amount of US$ 8.9 million to US$ 26.9 million,
within the first few years of operation. Compared to a total cost of the project in the range of
under US$ 10 million, a break even can be expected within the first three years of operation.
B. Technical
81. The main areas of potential concern from a technical perspective relate to the design,
implementation, operation and maintenance of complex ICT systems to be implemented
through the project. To minimize the risks of potential delays, cost overruns or performance
mismatch in the implementation of the systems, the project will implement the following
measures:
a. Place special emphasis in the utilization of modern ICT systems design, security,
standards and interoperability methodologies and frameworks, including the use
of a total cost of ownership approach, modular design, and web-based service-
oriented architecture, among others.
b. Adopt standardized ICT systems procurement methods, bidding documents, and
contracts, with embedded service-level agreements.
c. Build capacity on a constant basis throughout the project in the participating
agencies as well as through the eventual creation of a new regional E-Government
Institutional Framework.
C. Fiduciary
82. Financial Management. Financial Management responsibilities will be assumed by the
Regional E-Government Unit (REGU), established under the auspices of the OECS
Secretariat. An effort would be made to utilize to the maximum extent possible capacity
already existing within the OECS Secretariat, however, to meet the financial management
requirements defined by the World Bank policies and guidelines a set of additional actions
will need to be implemented prior to project effectiveness. Details pertaining to the project
financial management arrangements are provided in the Project Operational Manual and
Annex 7. The overall project financial management risk is determined to be Substantial.
83. Procurement. As mentioned in section B of Annex 8, the overall project risk for
procurement is considered ―high‖. The procurement risk pertains to the fact that the REGU is
currently in the process of being established and staffed. To mitigate the associated risks, it
was agreed that the following measures should be observed: (i) establishment of the REGU
and recruitment of a qualified Procurement Specialist; (ii) training of key project staff within
the REGU in World Bank procurement procedures; and (iii) establishment of a procurement
filing system satisfactory to the Bank. Details pertaining to the project procurement
arrangements are provided in the Project Operational Manual and Annex 8.
25
84. The OECS Secretariat has developed a Procurement Plan for project implementation
which provides the basis for the procurement methods. The Procurement Plan will be updated
in agreement with the Project Team annually or as required to reflect the actual project
implementation needs and improvements in institutional capacity.
D. Social
85. The project is expected to have only positive social impacts. By reducing the cost of
interacting with governments and improving the efficiency of government operations, the
citizens of the OECS will see indirect improvements in overall public sector service delivery.
E. Environment
86. The project will not finance the construction of any physical infrastructure or other
facilities, apart from minor works that may be required within existing buildings for internal
refurbishing of facilities, such as server rooms, to accommodate ICT equipment and any
ancillary electrical or air conditioning installations. Hence, there are no adverse environmental
impacts expected from the project. Indirect positive impacts may be derived from a small
reduction in use of transportation services in response to improved electronic delivery of
public services.
F. Safeguard policies
87. The proposed project is considered Category C and hence no safeguard policies are
expected to apply.
Safeguard Policies Triggered by the Project Yes No
Environmental Assessment (OP/BP 4.01) [ ] [X]
Natural Habitats (OP/BP 4.04) [ ] [X]
Pest Management (OP 4.09) [ ] [X]
Physical Cultural Resources (OP/BP 4.11) [ ] [X]
Involuntary Resettlement (OP/BP 4.12) [ ] [X]
Indigenous Peoples (OP/BP 4.10) [ ] [X]
Forests (OP/BP 4.36) [ ] [X]
Safety of Dams (OP/BP 4.37) [ ] [X]
Projects in Disputed Areas (OP/BP 7.60)* [ ] [X]
Projects on International Waterways (OP/BP 7.50) [ ] [X]
G. Policy Exceptions and Readiness
88. There are no policy exceptions and the project is ready to be implemented, given that the
effectiveness conditions are close to being met as follows:
a. A draft Subsidiary Agreement based on the one signed by the three other
Participating Countries is currently under discussion between the Borrower and
* By supporting the proposed project, the Bank does not intend to prejudice the final determination of the parties' claims on the
disputed areas
26
the Project Implementing Entity and should be ready for signing at the same time
or shortly after the signing of the Financing Agreement;
b. The three other Financing Agreements for the three other Participating Countries
are already effective;
c. The Operational Manual has been adopted by the Project Implementing Entity
and only minor adjustments are envisaged for the incorporation of St. Vincent and
the Grenadines;
d. The REGU has been established and the Project manager and Project accountant
hired, and a suitable candidate has been identified for the position of procurement
specialist;
e. The RTC has been established and its expansion to include a representative of the
Recipient is under way;
f. The amendment to the Project Agreement to include the Recipient as an
additional Participating Country will be signed at the same time or shortly after
the signing of the Financing Agreement.
27
Annex 1: Country and Sector or Program Background
OECS E-Government for Regional Integration Project for St. Vincent and the Grenadines
Regional Background and CAS Linkage
1. The OECS countries are at a critical juncture in their development. Three decades after
gaining independence, they are struggling to find new sources of growth and to reduce
vulnerability against a backdrop of an increasingly competitive global environment, the
looming end of trade preferences, and dwindling or log-jammed donor resources. These
challenges are further compounded by fiscal imbalances, high debt ratios, and their inherent
vulnerability as small island developing states (SIDS). Within the past decade, the countries
of the Eastern Caribbean have been faced with difficulties stemming from (i) globalization
and trade liberalization, (ii) declining revenues from the agricultural sector, (iii) overcoming
natural disasters and the elements with their effects on productive resources and capacity, and
(iv) blocking the adverse effects of external shocks to the economy. In addition,
governments have become increasingly concerned with improving labor productivity,
increasing national competitiveness, and alleviating poverty.
2. As small states, all OECS countries face a vulnerability to external shocks, including
natural disasters, limited economic diversification opportunities, high dependence on external
trade, high cost of public service provision due to diseconomies of scale, and limited capacity
in the public and private sectors. In a few areas, these diseconomies of scale and capacity
constraints have been successfully overcome through regional initiatives and projects. Going
forward, leveraging regional approaches more aggressively will be critical to the sub-region‘s
efforts to revive growth, improve competitiveness and reduce vulnerabilities. However, a
coordinated regional approach by the OECS governments is often thwarted by differences in
their electoral cycles and national priorities.
3. These multi-faceted challenges have prompted the World Bank Group to design its
assistance strategy in a way that reflects both the national and the regional development
needs of these countries. In order to address the pressing developmental concerns of the
region, he World Bank Group's Country Assistance Strategy (CAS) for the OECS 2006-2009
(Report # 33118) discussed by the Executive Directors on September 13, 2005 proposes a
new way of doing business to help these small states meet the challenges facing them at this
critical stage of their development. Its guiding principles are: (a) supporting regional
integration and coordination efforts; (b) partnering and harmonizing in both lending and
analytical work with other development partners; and (c) the active pursuit of simplification
and capacity building initiatives tailored to small states. The CAS uses these principles and
supports the sub-region‘s development agenda through two main pillars: (i) supporting
growth and improving competitiveness; and (ii) reducing vulnerability.11
The OECS E-
Government for Regional Integration Program (EGRIP) is consistent with the guiding
principles of the CAS and directly tackles elements contributing to both of the main pillars
on both the regional and national levels by facilitating public sector modernization and
greater social inclusion.
11
World Bank Group Country Assistance Strategy for the OECS for the period FY06-FY09, September 6, 2005,
page v.
28
Public Sector Reform
4. In order to better understand perceptions in the Eastern Caribbean regarding various
aspects of public sector reform, a public opinion survey12
was conducted in several of the
OECS countries in mid-2004. The survey probed a number of interlinked issues - including
what concerns people in their daily lives, their current level of satisfaction with public
services, which players were the most trusted in the policy arena, their awareness of public
debt, and how they viewed the benefits and risks of regionalization. The poll found, among
other things:
When asked, respondents felt the public sector is inefficient and poorly managed and they
perceived national debt to be a serious problem. However, most people did not believe
that downsizing the public sector will reduce the public debt. That is, they thought public
sector reform is not about making government smaller but, rather, making it more
efficient.
Many were receptive to current regional approaches and integration, with 85% indicating
that regionalization of public services and functions would help make the region more
economically competitive and, by implication, create more employment opportunities.
5. The poll suggests that public sector reform initiatives that lead to a better managed and
more efficient public service will have a strong likelihood of being supported. Specifically,
actions that would result in visible and concrete improvements for citizens should be given
priority while building the capacity of the government to define and implement follow up
public sector reform efforts.
6. These sentiments were echoed in the OECS Institutional and Organizational Capacity
Review of the Core Public Sector (IOCR)13
, which states that ―the institutions relating to
public sector management need a major overhaul.‖ Presently, ―the public sector is working in
the old, traditional, pre-independence mode,‖ and is over-emphasizing control of inputs and
compliance with rules and regulations rather than with effectively and quickly delivering
expected outputs. If it is to reduce costs and improve efficiency, the public sector must
become more concerned with the cost-effectiveness, quality, and timeliness of outputs.
Furthermore, in light of increasing global competition and vulnerability to exogenous shocks,
the public sector must be able to quickly adapt to changing demands if it is hoping to become
a contender in the global economy. In order to address these public sector deficiencies,
reform efforts should include measures to speed-up decision-making, increase flexibility in
resource allocation, align the incentives of public sector managers and staff with
organizational objectives, strengthen internal and external accountability mechanisms, and
make government operations transparent to the public.
12
The survey was conducted by Market Research Surveys, Ltd., and managed by the World Bank. A representative
sample was recruited from four countries, achieving margins of error between 4.5% and 5.5.%. Research was
conducted between February and April, 2005. Countries included were St. Kitts (n=477), St. Lucia (n=395); St.
Vincent (n=413) and Antigua and Barbuda (n=338). 13
In particular, statements in this paragraph are from OECS IOCR, pages 48-49, 90.
29
7. Greater economic regionalization and integration in electronic delivery of public services
has been prioritized in order to exploit economies of scale and reduce costs while improving
service delivery and increasing efficiency. While this agenda is already in pursuit in the
OECS, its potential remains to be fully exploited, and it is widely acknowledged that OECS
member states could indeed benefit from ―more concerted action.‖ Thus, the potential of
regional integration of public services by leveraging investments in ICTs is a building block
to promote future regional and country-specific public sector reforms. The OECS IOCR
states that overly centralized personnel management and poor human resources planning
have contributed to ―major deficiencies in policy formulation, planning, economic analysis,
project management, and general management.‖14
The public sector lacks systematic
analysis of skill requirements and workload patterns to be utilized for staff transfers,
recruitment, and training. When training is provided, personnel often utilize these newly-
found skills to acquire positions in the private sector or abroad, thus, the public sector bears
the costs of training without receiving the benefits. When trained staff remains in the public
sector, they are often wrongly utilized - soon transferred to unrelated positions or assigned
tasks that do not utilize the skills they have acquired. More extensive HR management
information systems containing dates, promotions/ transfers, movement between salary
scales, training received, performance reports, and date of retirement would allow for
improved monitoring and evaluation, training, as well as human resources planning. With
regard to disciplinary matters, there is no organizational unit responsible for exercising
continued vigilance against corruption, and there are no mechanisms for collecting
information on possible conflicts of interest or wrongdoing.
8. The objective of the project within the context of the broader public sector strategy in the
OECS states is to improve the delivery of public sector services, improve internal efficiency
(including lower costs of public service delivery), improve coordination between agencies,
and increase transparency through the use of ICTs with the overall objective of contributing
to regional integration. This strategy is consistent with the lessons learned from the Cape
Verde experience.
9. Modernizing the public sector and the delivery of public sector services through the use
of ICTs could potentially be done in a number of ways. In order to target the sectors where
interventions are most needed, and are also in line with country priorities, specific areas for
e-government interventions were selected during a stakeholder workshop held in May 2007.
In anticipation of the workshop, the country representatives had submitted their country
priorities, and during the workshop, these country priorities were discussed and then matched
across countries. Input on regional priorities was also obtained from the OECS Secretariat, as
well as from the ECCB. In selecting the specific interventions to be included in the project, in
addition to the perceived priority by the participating countries, a number of additional
criteria were utilized, in particular the following: (i) its likely developmental impact and
contribution to the public sector modernization agenda; (ii) the extent of contribution to or
impact on policy harmonization and regional integration; (iii) likelihood of achieving early
results or ―Quick Wins‖. Further prioritization took place on the basis of (iv) cost of
implementation within available budget; and (v) local capacity for adoption and sustainable
use.
14
OECS IOCR, pages 93-4
30
10. Ultimately the key public sector areas selected using the above framework were Legal
and Regulatory Environment, and Registries and Multi-Purpose Identification Systems in
Component 1, and Public Financial Management, Customs Administration, Tax
Administration, and Procurement in Component 2. A performance or results-based approach
has been integrated into the project, and in particular, Component 2. The proposed systems
upgrades and activities under this component incorporate potential support for results based
management. For instance the SMARTSTREAM, Standard Integrated Tax Administration
System (SIGTAS), and Automatic System for Customs Data (ASYCUDA) all support
application of a results focus through management and decision making tools for operational
and strategic management reporting15
. The integrated e-government project will provide the
backbone for implementing the proposed reforms.
Enabling Environment for the Private Sector as an Engine for Growth
11. According to Doing Business 2007: Organization of Eastern Caribbean States, ―The
OECS countries perform well on the ease of starting a business, dealing with licenses, and
the strength of investor protections. OECS countries fall behind on the ease of getting credit,
enforcing contracts, and closing a business. Results are mixed for trading across borders,
registering property and paying taxes.‖ 16
In order for the OECS to enhance the ease of doing
business in the region, public sector modernization is required. This project would directly
contribute to the ease of doing business in the OECS by digitizing records, enhancing online
access, and facilitating data exchange and processing. These improvements would enhance
the ease of enforcing contracts, filing and paying taxes, and trading across borders.
12. One of the key pillars of Bank support in the OECS region is supporting growth and
competitiveness, for which public sector reform and the regional integration of services have
been identified as focus areas. Strengthening institutional capacity and modernizing the
public sector are integral to the broader economic restructuring (at both the domestic and
regional levels) that the Bank is supporting throughout the sub-region.
13. The nature of OECS economies necessitates diversification if the economy is to grow at a
sustainable pace; both the agriculture and tourism industries are understandably vulnerable to
natural disasters and external shocks. Against this backdrop, OECS countries need to shift
their growth strategies from a public to a more stable private-sector led policy. In this
respect, a focus on enhancing backward linkages between tourism, the leading economic
activity, and other sectors (e.g., agriculture, handicraft, etc.) will be critical. The public sector
must be prepared to create an enabling environment for private sector development,
including reducing barriers to foreign direct investment and promoting indigenous
investment, reducing the costs of doing business, and providing more efficient and timely
service delivery. This project supports the achievement of these broader objectives by
enhancing the effectiveness and efficiency of the systems supporting the functionalities of the
public finance sector, improving the quality and timeliness of the internal and external
information flows within the public sector, and thus fostering a transparent and functional
cross-sectoral business environment.
15
http://www.fiscalreform.net/usaid-egat_fiscal_workshop/proceedings/Mar%206-06/Osmond-
Kamel%20(SIGTAS)_March%206%202006.pdf 16
Doing Business 2007: OECS, p. 1
31
E-government progress to-date and donor activity in this area
14. The project is formulated with due consideration of the CARICOM Connectivity Agenda
(2003) and the Action-Oriented E-Government Strategy for Countries of the Caribbean
Region 2004-2007. During the Ministerial Consultation prior to the adoption of the Regional
E-Government Strategy (Point Salines, Grenada, January 2003), ―the participants confirmed
the need for developing a regional e-government strategy for the Caribbean in order to
benefit from economies of scale, harmonize individual country efforts, foster regional
integration and cooperation and build upon progress already made in a number of
countries.‖17
The project is based on the political consensus that has been built by the
consecutive Caribbean Ministerial Consultations on E-Government, in which all of the
member states of the OECS were well represented. This consensus focused on the need of
capacity building for thoughtful public sector reform; on using ICT to take advantage of new
development opportunities in general and to improve the quality of public services in
particular; on the need to make e-government programs part not only of ICT strategies, but
also of national plans on economic growth and social development.
15. The Country Donor Matrix below illustrates the broad range of activities in the region
that have been completed or are in progress. With a significant amount of help from the EU,
CIDA and other donor agencies, the OECS already has a significant head start in the
direction of public sector reforms. Dominica, St. Lucia, and St. Vincent have a few e-
government related projects that are planned or currently underway, which are in some cases
supplemented by the technical assistance focused on the underlying policy reforms. Grenada
recently negotiated a Technical Assistance Project that will assist the Government to begin
the process of modernizing its public sector. In general, across the entire region, much
attention is being directed towards public sector reforms, including the revision and update of
the Legal and Regulatory environment, modernization of the Budget and Treasury systems,
introduction of new Taxation mechanisms, and restructuring of the Civil Registry. While
significant progress was already achieved in some countries and sectors, much still remains
to be done in the OECS both in the context of the overall systems‘ introduction/upgrade, and
the revision of the underlying policies and processes.
Table A-1.1 Country Donor Matrix Area Antigua Dominica Grenada St.Kitts St. Lucia St. Vincent
1.Horizontal Areas Policy & Strategy
Development
EU
(SFA 2005)
EU
(SBX 1996)
EU
(SFA 2005)
Legal and Regulatory EU
(SFA 2005)
EU
(SFA 2005)
EU
(SBX 1996)
EU
(SFA 2005)
Total Cost of
Ownership (SW
licenses)
Center of Excellence
(Tech Support,
Security, Standards)
EU
(SFA 2005)
WB (CKLN) EU
(SFA 2005)
17
Final Report, Fourth Caribbean Regional Ministerial Consultation and High-Level Workshop on Public Sector
Management: Strategies for E-government‖, Point Salines, Grenada, 14-15 January 2003
32
Area Antigua Dominica Grenada St.Kitts St. Lucia St. Vincent ID Systems Gov. Italy/
UNDESA
Web portals USAID
(COTS)
Taiwan,
China
Taiwan,
China
Gov. Italy/
UNDESA
Connectivity WB
2. Vertical Areas Public Financial
Management
CIDA
(ECEMP)
HR Management DFID
(FERP)
Tax Administration CIDA
(ECEMP)
Customs ICA/IDRC EU
(SFA 2005)
WB
ICA/IDRC
Procurement WB EU
(SFA 2005)
Agriculture: Linkage
with Tourism
EU SFA 99/01
(AIMS)
Health: HMIS PAHO
(Hospital
Records)
PAHO
(Universal
Health Care)
Education: EMIS EU
(SFA 2005)
EU/WB
(CKLN)
EU
(SBX 96)
Civil Registry OAS OAS
Land Registry WB / EU
(MTPSR)
EU
(SFA 2005)
Business Registry WB / EU
(SFA 2005)
EU
(SFA 2005)
Judicial Enforcement CIDA
Environment & GIS
Rationale for Bank Involvement
16. The proposed project seeks to enhance economic and social development, and increase
the competitiveness of the islands as services-oriented (i.e. information and knowledge-
based) economies with modernized public sectors, through the effective use of ICTs in the
Public Administration. This e-government project will serve as a catalyst for e-commerce
and e-business initiatives, supporting the shift towards knowledge-based economies and
information societies in the region. As a major employer, service provider and consumer,
Governments in the OECS are in the best position to initiate and sustain the spread of ICT
applications in the other sectors and the subsequent growth of ICT industries. The success of
any initiative is dependent on the government sector's own efforts toward an effective
deployment and use of these technologies.
17. The project emerges from increasingly strongly articulated political will and
determination for sub-regional cooperation and in particular the realization that sub-regional
cooperation in the area of e-government, understood broadly as the application of ICT for
public sector modernization, can produce important outcomes in reducing the cost of doing
business, improving public sector efficiency, transparency and accountability, as well as lead
to more sub-regional harmonization and integration. The project wishes to follow in the
33
footsteps of the widely successful sub-regional cooperation in the area of
telecommunications, and aims at expanding that cooperation to the broader ICT field.
18. This initiative is critical in light of the scarcity of financial resources for e-government
development across the region. It also acknowledges the need to balance the ICT
development-related and other developmental needs of the Caribbean countries. Therefore, it
will treat opportunity cost as an important factor in choosing and implementing the e-
government options. The project will entail a regional approach to promote integration,
competitiveness, public sector efficiency and transparency, and avail the countries of the
region of the benefits of economies of scale and related synergies, as identified in a recent
infoDev study on the topic18
.
19. The proposed initiative should be seen as a complementary initiative aimed at reinforcing
the efforts on the ground in implementing various public sector reform and e-government
initiatives across the sub-region and aspiring to achieve ―quick wins,‖ which will provide
momentum to achieve additional benefits from highly desired reforms and more robust e-
government implementation. It can therefore be considered as a first stage of what could
become a wider e-government implementation program across the sub-region.
Rationale for the Project Components
20. The process used to develop the project components was based on the first Bank mission
in February 2007 to meet with over 70 decision-makers in all Member States and stakeholder
organizations. The consultation involved key representatives considered by the relevant
Ministries as high-level stakeholders in the information society sector, all having national e-
government implementation experience to address national, regional, institutional and
technological realities.
21. Their inputs formed the basis of a list of options that was then circulated back to key
contacts in each country to rank according to national priorities. This was consolidated and
presented at the follow-up Stakeholder Workshop in May 2007 as a decision-making support
tool, to deliberate merits and refine priorities in real-time. The Member States chaired these
May workshop sessions to ensure ownership, inclusive discussion and ultimately consensus.
During this workshop, the priorities of the participating countries were discussed and the key
areas for inclusion in the project were agreed in principle, on the basis of a number of formal
selection criteria, such as: (i) the expressed level of priority and alignment with existing
national policies; (ii) the likely developmental impact and contribution to the public sector
modernization agenda; (iii) the extent of contribution to or impact on policy harmonization
and regional integration; (iv) likelihood of achieving early results or ―quick wins‖; (v) cost of
implementation within available budget; and (vi) local capacity for adoption and sustainable
use. This decision-making exercise and process in itself represents a foundation for positive
future project dynamics.
22. The project components were further refined during an appraisal and technical
discussions workshop in March 2008. One of the key results of these discussions was the
18
Improving competitiveness and increasing economic diversification in the Caribbean: the role of ICT, infoDev,
2005.
34
decision to incorporate a regional pilot project in health management information systems
into Phase 1. This subcomponent may be complemented with small preparatory and/or
complementary activities in other social and productive sectors, such as education,
agriculture, tourism, postal, among others. None of the proposals were rejected from future
consideration: all remain viable follow-on projects for consideration in subsequent phases of
the program as regional e-government cooperation begins to materialize.
Rationale and Background for Component 1: Horizontal E-Government Interventions
23. Horizontal e-government work dates back to at least 2003. The OAS took steps to
promote Horizontal Cooperation, including pooled purchasing of software to obtain
economies of scale and negotiated volume agreements with suppliers. The OAS took the
view that taking advantage of successful solutions and progress made by some of the region's
more developed countries enables many others to save resources and shorten implementation
times. In addition, the increasing interdependence between countries makes a fluid dialogue
on electronic government necessary among those responsible, so as to address regional issues
such as database and application interoperability as well as legal aspects.
24. The Network of E-Government Leaders of Latin America and the Caribbean (RED
GEALC) is aimed at promoting horizontal cooperation. Originally created by the Institute for
Connectivity in the Americas (ICA/IDRC) Red GEALC also has the support of the Inter-
American Development Bank (IDB), the OAS, the World Bank, as well as numerous other
donors, and more than 60 members from 32 of the region's countries. This virtual forum has
enabled representatives of almost all the countries in Latin America and the Caribbean to get
in touch with the leaders of the most successful electronic government initiatives in the
region.
25. While the OECS Member States are at varied stages of ICT and e-government
development, a Strategy and Action Plan is essential to set the scene for improved co-
ordination in Caribbean e-government policy and project implementation. Much e-
government policy and project implementation takes place at the national level and is not a
regional issue as such. Therefore a regional Strategy and Action Plan will advance political
consensus, provide broad guidelines for harmonization of efforts in the context of this project
as well as on-going national projects, assess readiness of opportunities for further regional
programming, develop partnerships, create avenues for collaboration and mechanisms for
resource mobilization, and pave the way for implementation. This will also facilitate and
expedite alignment with larger regional initiatives by CARICOM, CARICAD and other
organizations, and increase the capacity of policy and decision makers, public administrators,
private sector and the civil-society to share at the regional level.
26. As outlined in the country donor matrix above, the EU is assisting several OECS member
countries in developing national e-government strategies and harmonizing the legal and
regulatory frameworks for electronic transactions. The intricacies of effectively
implementing such a broad range of legal and regulatory texts calls for additional support to
be included in the current operation, particularly with regards to the implementation of digital
signatures, which is likely to require assistance in the establishment of the digital signatures
certification authorities.
35
27. Given the small size of the national governments, regional cooperation through pooled
procurement and joint maintenance of hardware and software will no doubt lead to important
economies of scale in the area of ICT procurement. However, in order to correctly extract
these potential benefits OECS countries must ensure that all forms of regional e-government
cooperation have the capacity and necessary tools to assess and manage the Total Cost of
Ownership of a particular solution, so that cooperation focuses on optimizing positive
outcomes.
28. The availability of skilled manpower is one of the most important factors needed in the
OECS states for attracting investments and developing the information technology products
and services industry, which includes the e-government sector. Development of skills for the
IT industry requires strong linkages between academia, companies, associations, standards
organizations, private sector training institutions and the government. In an increasingly
globalized and networked world, it is important that skill development initiatives linkup with
best-in-class skills providers across the globe. For example, the Customer Operations
Performance Center Inc. (COPC) is the world‘s leading authority on operations management
and performance improvement for contact centers. Carnegie Mellon‘s Software Engineering
Institute is a world leader in standards like CMMI and has developed a range of programs
including those relating to improvement of Personal and Team Software Processes. The
Project Management Institute‘s, PMP professional certification is recognized globally.
Accenture has recently tied up with the MIT's professional education program to develop the
Accenture Solutions Delivery Academy, a new training and certification program based on
the company's application delivery curriculum. These examples illustrate attempts by
different governments, organizations and associations to forge partnerships in order to make
educational/training programs more responsive to the needs of the IT industry.
29. In light of this discussion, together with the need for achieving some economies of scale,
it can be clearly understood why it is important for the governments of the OECS to
strengthen institutional structures for providing cross-cutting oversight and support in the
design and deployment of e-government applications to prevent waste and avoid duplication.
A Regional E-Government Center of Excellence could prove extremely useful in dealing
with such issues, by helping national government agencies and private sector players to adopt
a flexible, agile and highly modular approach to e-government services. Such a Center would
moreover facilitate the adoption of the latest technologies and approaches in e-government so
as to position the OECS at the cutting edge, and establish a leadership position for the
region‘s e-government initiatives. As an IT organization, the Center would be very different
from traditional IT organizations in government. IT is not a back-office utility and is fast
becoming indistinguishable from the business processes that it enables. The IT organization
of the future will therefore most likely have a greater focus on business processes, enterprise
architecture and sourcing strategies. The Center would accordingly aim at melding domain
expertise with technology in each aspect of its functioning. Some of the important functions
that could be provided by such a Center, together with their rationale from the perspective of
the Government and of the IT sector, can be seen in the table below:
36
Table A-1.2 Rationale for an E-Government Center of Excellence
Function Rationale for Government Rationale for IT industry
Enterprise architecture e-government applications can be
designed in a modular fashion so as to
allow reuse of services avoiding waste
and duplication
Smaller companies will find it
easier to participate in the
development of e-government
applications, through access to
reusable components and services
Interoperability and
standards
Important for ensuring that different e-
government applications can talk to each
other, thereby avoiding waste and
duplication
Levels the playing field and
allows smaller companies to bid
for projects using open standards
Creates synergies across disparate
projects allowing different IT
players to collaborate
IT Security
Government data can be secured and
compliance ensured with privacy
requirements
Adherence to security
requirements builds capability of
the private sector to deliver
secure products and services
Application testing and
quality assurance
Integration and application development
risks can be reduced for Government
agencies
Solutions and applications
developed by smaller companies
can be more credible
Application deficiencies can be
tackled early-on reducing
subsequent costs
Technology tracking e-government applications can benefit
from the latest technologies
Smaller companies get an
opportunity to work on cutting
edge technologies
Business Process
Management
Deployment of technology can be
accompanied by process changes to have
greater impact
Companies need to deal with
simpler processes, reducing cost
and time for application
development
Contract and Intellectual
Property management
Government interests are secured through
better contract management and
safeguarding of Government IP
Brings greater clarity and
transparency to government
procurement
Levels the playing field for IT
companies
30. Finally, another core area of effective e-government involves adequate identification
systems and interoperability. There is a need for a National Identification number for
information and security reasons. As of today, the Member States have developed Electoral
Systems to register those people able to vote. Unfortunately, the voter registration system
does not have control of other civil acts such as birth and death certificates, nor is the process
to obtain and manage such information well optimized. Hospitals and Civil Registries lack
this capacity. Initiatives to digitize registries have stagnated because responsible resources
have been assigned to other ministry functions. Life events of individuals are not
systematically registered and there are many related data management and reconciliation
issues. However, the OAS has been assisting the OECS countries in computerizing their civil
registries with a simple application which, while adequate to their needs, may need updating.
31. There is increasing national priority and global consensus on the need to move from
Election ID to a National Identification number for information and security reasons. The
National ID system, with the ID card as its visible component, would allow among others to
37
integrate back end systems and databases, as well as the front-end web interfaces for receipt
of government services.
32. An interoperability framework would therefore be a crucial element of the ID System,
since at present the OECS does not have such a framework in place to guide the development
of e-government applications. This has meant a silo approach to e-government, which could
progressively become a serious bottleneck in integrating disparate applications, across
various government agencies and across the region.
Rationale for Component 2: Horizontal E-Government Interventions (main focus on Public
Finance)19
33. OECS countries share many common characteristics—very open economies, limited
diversity in production and dependence on tourism and/or a few export commodities which
are sold, in many cases, in protected markets. Most of the economies are vulnerable to
changes in external markets and severe shifts in trade, and are prone to natural disasters such
as hurricanes.
34. Since 2003, some economic recovery took place in the region, as tourism rebounded and
the global economy began to strengthen. Some benefits also accrued to the region from the
depreciation of the US dollar. Nevertheless, fiscal imbalances have persisted in a number of
countries, leading to mounting public sector debt. In a number of countries, total debt to GDP
ratios exceed 100 percent, and external debt to GDP ratios are very high. In addition, OECS
countries have been facing a difficult structural transformation as they move away from
traditional agricultural crops to new sectors, typically the service sector. The changing
structure of these economies has created a need for new approaches to macro- and
microeconomic management and its institutional structure.
35. At the regional level, OECS countries are seeking to enhance interaction through the
establishment of the Caribbean Single Market and Economy (CSME) and the OECS
Economic Union, which calls for greater harmonization of institutional structures and the
regulatory framework. This harmonization will affect many aspects of the financial and fiscal
sectors. Some examples are the introduction of the Common External Tariff (CET), which
requires countries to increase revenues from non-tariff sources, and the expansion and inter-
linkage of banks across the region.
36. The pressing need to ensure that adequate support is provided to these developments at
both the regional and country level have highlighted the importance of CARTAC‘s assistance
in providing technical advice that contributes toward improved fiscal and public financial
management and helps countries to design and implement home-grown adjustment programs.
37. Implementation of the financial management, tax administration and customs sub-
components are expected to be fully coordinated with CARTAC and CIDA. So far,
CARTAC has provided technical advice in the area of macroeconomic policy analysis and
management. Looking ahead, OECS countries are expecting technical assistance from
CARTAC to harmonize efforts in a variety of areas including: (i) regional harmonization
19
Some elements from this section were adapted from the CARTAC Action Plan.
38
particularly with respect to laws, codes and practices as the region moves towards the single
market economy; (ii) review of the regulation and of pension arrangements; (iii) training
designed to help supervisors deal with troubled banks and insurance companies; (iv) training
to best address capacity-building in public financial institutions, and strengthening of their
operations; (v) improvement of public finance management, including budgeting, treasury
operations, and debt management; (vi) improvement of revenue policy and more effective
revenue administration, including issues related to the introduction of VAT and the
challenges faced by accession to the Free Trade Area of the Americas (FTAA); and (vii)
improvement of financial sector regulations and supervision, with increasing emphasis on the
supervision of non-bank financial institutions including insurance, and assistance in
enhancing the region‘s capital markets.
Table A-1.3 Information Systems in Use for Public Finance
Area Antigua Dominica Grenada St.Kitts St. Lucia St. Vincent Public Financial
Management
Free
Balance
SmartStream SmartStream FITRIX SmartStream SmartStream
Tax
Administration
SIGTAS SIGTAS SIGTAS SIGTAS SIGTAS SIGTAS
Customs CASE ASYCUDA++ ASYCUDA 2.6 TRIPS ASYCUDA++ ASYCUDA++
38. Financial Management. The Ministries of Finance in all states are the rector institutions
and therefore administer the public financial management systems. The core software
platform being used in four out of six countries is SmartStream (SS),20
an off-the-shelf
solution implemented in the following main modules: funds, payables and cashiering
(accounting and treasury). The SS system has other functionalities such as budgeting,
payroll, financial reporting and HR control which are partially or not implemented. Some of
the countries also make substantial use of off-line tools such as Excel and Access, for
exercises such as budgeting, reporting, printing, etc.21
39. While the treasury and accounting functions in the OECS countries have improved
considerably with the introduction of SS, Free Balance and FITRIX, the capabilities offered
by the systems remain under-utilized. One example of such oversight is the underutilization
of the expenditure classification possibilities embedded in the system. Although SmartStream
offers three coding levels, (program, sub-program, activity), only the first coding level
(program) is currently being used, thus significantly undermining quality and usefulness of
the produced reports. The situation where only some of the available system functions are
being used not only impedes efficiency and quality of the ongoing financial monitoring and
reporting, but also leads to a situation where the majority of donor-financed activities,
representing a significant share of the OECS countries budget, are channeled through
separate arrangements set outside of the government systems that negatively affect the
budget comprehensiveness and add an extra burden to an already scarce human resource
capacity.
20
Antigua and Barbuda is implementing Free Balance and St. Kitts and Nevis has chosen FITRIX. 21
The budget preparation process in most countries is still a very time-consuming and effort intensive exercise
because there is no two-way communication between the Financial Systems and offline Budget Planning tools
currently being used, such as Microsoft Access, Excel as well as other products for printing. Improved integration
and consolidation of planning and execution functions would allow to expedite, modernize and improve the quality
of the budgeting, as well as to increase outputs that make the budget itself more accessible to all citizens.
39
40. As such, there is a clear need to carefully evaluate functionalities present in the systems,
compare them to the existing needs of the government, and eventually bring them to full use,
gradually evolving existing applications to a friendlier web-based environment.22
In the
medium to long run, existing PFM systems need to be upgraded and/or expanded to resolve
basic capacity and performance issues such as: (i) integration of budget formulation and
execution; (ii) incorporation of estimates, monitoring and evaluation (M&E) and multiyear
financial planning functions; (iii) improvement of financial reporting capabilities;23
(iv)
registering of a reliable audit trail e.g. warrants; and (v) linkage of the various applications by
a user-friendly, easy to navigate interface.
41. The technical inputs which would significantly improve efficiency of the existing
financial management systems are relatively modest. To maximize the outcomes, purely
technical adjustments have to be complemented by the update of the existing budget
classifications and charts of accounts, design and programming of the standardized reports,
and development of comprehensive operations manuals, summarizing the underlying
governments‘ financial management policies and defining clear procedures for the systems
use. This would help put in place more efficient internal controls, enhanced quality of
ongoing monitoring, and improved timeliness and quality of periodical accounts. With the
implementation of the proposed changes, the number of system users will rapidly expand,
and a comprehensive training program should be conducted in order to build much needed
capacity in the public sector.
42. Since four out of the six OECS countries already use the same accounting system, there is
a strong potential for further collaboration and harmonization in this area. Optimization of
the technical support arrangements and reduction of the future acquisition and maintenance
costs are just some of the prospective benefits that should be explored in the immediate
future.
43. Once these tasks are accomplished, a fully functional PFM system would help make the
best use of limited qualified resources, and significantly lower transactions costs, by
simplifying day-to-day processing activity, and freeing staff time to focus on tasks that are
value added. At the same time, as high-quality, real-time data would significantly enhance
capabilities for the performance monitoring of the government-led programs and initiatives,
it would ultimately contribute to the improved quality of public spending and public services.
As a side-effect, the system adjustments that would enable automation of financial reporting
would make it easier for the donors to harmonize their reporting requirements.
44. Human Resources. SmartStream has a payroll sub-system that is used by all project
countries. Additionally, the SS system has a module with basic functionalities for Human
Resources management. Unfortunately, such functionalities have not been implemented yet.
The countries are manually handling and recording HR processes in the stages of hiring,
22
Ideally, such evaluation should be accompanied by the evaluation of the underlying government‘s policies and
processes, which in the future would allow for enhanced ICT-focused improvements with the parallel policy reform. 23
At the moment in-house solutions are complementing the PFM systems in this area. For example, Microsoft
Access is used to monitor recurrent expenditures and Excel spreadsheets are used to monitor capital expenditures,
revenues, debt schedules, estimates and classifications of works reporting.
40
evaluating, promoting, and retiring or firing personnel. It is recommended that SmartStream
be evaluated in order to explore possibilities for improvement of the human resources
management module, particularly leave requests. Additionally, it is recommended that the
capacity of Public Service Offices and HR units located in each Ministry be enhanced.
45. Tax and Inland Revenue Systems. The Standardized Integrated Government Tax
Administration Systems (SIGTAS), which was developed by SOGEMA, a Canadian-based
firm, is a system that specializes in management and information systems for developing
countries, under the Eastern Caribbean Economic Management Program (ECEMP), and is
used to manage the collection of taxes. Members of SOGEMA worked with the Inland
Revenue Departments in the OECS to implement the required legislative and business
process changes. Additionally, staff members were trained to operate and manage the
SIGTAS application.
46. The system enables the Inland Revenue department staff to operate more efficiently as
the software has the ability to assess tax payers on time, remind taxpayers that their taxes are
due, identify and record potential taxpayers, retrieve tax information quickly, and reduce the
time taken to make payments to the cashiers. This ensures maximum revenue collection.
47. The most advanced website of the Inland Revenue Departments in the OECS is used to
provide relevant information to tax-payers, and includes a message board, downloadable
forms, FAQs, Press Releases, the Departments Newsletter, and Publications, such as ‗A to Z
of Taxation‘, ‗Know your Taxes‘ and ‗Tax Guide‘. There are plans to integrate the SIGTAS
application and the Website, and using a phased approach, moving from a simple facility that
allows citizens to login to inquire into their tax status to online filing and payments over the
next two years.
48. In addition, it is likely that upgrades to the SIGTAS platform itself may be required,
given that the countries received the source code and have implemented changes
individually, without regional coordination, creating in effect one different version per
country. One possible strategy would be to upgrade all the SIGTAS implementations to the
newest version of the SIGTAS international edition. Alternatively, a new platform could be
implemented.
49. The upgrade of the tax administration systems to allow for online filing and payments
would represent a significant benefit to the private sector given that the preparation and
payment of corporate taxes is an integral aspect of operations. Building upon an established,
robust technical platform used by almost every member state in the OECS also represents a
distinct advantage. The synergies and collaboration inherent in the project design of the
implementation of this upgrade is consistent with the regional integration thrust of this
program. Efforts towards the implementation of the OECS Economic Union and the Rights
of Establishment for businesses under the provisions of the CARICOM Single Market and
Economy (CSME) for example, would make the streamlining of processes, procedures and
systems for tax preparation and payment most useful.
50. Customs. The Customs and Excise Departments of the Region began using information
systems from the early 1990‘s, when as part of a regional initiative, the ASYCUDA software
41
was adopted. ASYCUDA or Automated Systems for Customs Data was developed by
UNCTAD in 1981 and has been installed or is being implemented in over 80 countries and
regions around the world. ASYCUDA is a computerized customs management system which
covers most foreign trade operations and procedures. ASYCUDA++ allows the management
of perceived risk by use of its selectivity controls and the introduction of risk analysis and
risk assessment measures.
51. Revenues derived from customs are of significant economic importance to Member
States and reportedly account for on the order of half of government annual income. Project
stakeholders with Customs expertise have remarked on the need for globally increasing
competitive pressures to ensure prompt, reliable processing of goods. Member States
currently use a diverse heterogeneous array of Customs solutions (e.g., ASYCUDA 2.6, 2.7,
ASYCUDA ++, ASYCUDA World, TRIPS, CASE), which differ in terms of their inter-
connectivity with related Public Administration functions and interoperability of data with
end-users. There is a need for a mapping exercise to identify commonalities and gaps in order
to highlight the most beneficial areas to intervene. That will likely identify opportunities to
initiate small, yet potentially beneficial controlled interventions to achieve data sharing.
Conversely, objective analysis could indicate on a regional level that it is far more cost
effective to migrate to one common platform, and conceivably to implement a single solution
and harmonized platform for all, or a subset of OECS countries, while ensuring
interoperability with other existing platforms.
52. OECS countries require assistance in the implementation of ASYCUDA World as a
standard, harmonized platform throughout the region, possibly including e-filing modules, as
well as in the development and implementation of interfaces to share data over
heterogeneous regional Customs solutions (e.g., ASYCUDA, TRIPS, CASE). A shared
maintenance contract would allow the countries to lower the cost of support and upgrades.
53. ASYCUDA++ can support the complete automation of the cargo manifest. All
manifests‘ bills of lading will be electronically transmitted by shipping agents. Importers and
exporters will lodge their declarations from their offices. Risk management procedures will
determine which goods require physical examination and/or documentary checks. Post-audit
controls will be established to ensure compliance. The elimination of unnecessary
bureaucracy and tedious manual procedures will allow the Customs and Excise Department
to re-allocate and re-deploy its personnel to areas of greater risk and more relevant Customs
work.
54. The primary aim of such a project would be to enhance the imports/exports processing
system, which maximizes efficiency within the Customs clearance process, provides an
efficient service to the trading community, and ensures an effective control and collection of
revenue. This system will also make available quality information for decision-making and
more concise statistical data on trade. The system would be conducive to the successful
attainment of streamlined, simplified and harmonized Customs procedures and processes,
expediting the movement of legitimate goods and legitimate travelers across the borders of
the OECS member states.
42
55. Public Procurement. None of the OECS countries has a fully functioning electronic
public procurement system in place. Nevertheless, all the countries are in the process of
improving their procurement legal framework and building institutional capacity, before they
consider implementing a sub-regional e-procurement system for ICB, local NCB and
shopping. Both the public financial management and the public procurement draft laws are
under discussion regionally. The new legislation should be accompanied by new processes,
training and an ICT solution.
56. World Bank assistance in this area could help facilitate the revision of such draft laws,
showing the international best practices and helping build the institutional and technical
capacity needed. This is also an area where regional integration can be done by building on
the successful history of the OECS Pharmaceutical Procurement Service, a regional
procurement system used for buying pharmaceuticals, dental products, x-ray, and medical
supplies for the public health sector of the OECS countries. One could replicate this existing
platform for international tendering and contracting with suppliers. For example, the system
could be automated and expanded to other areas such as education, purchasing of books, and
basic commodities such as rice, wheat and milk.
57. A pooled procurement mechanism and improved supply management practices will result
in a reduction in unit costs and optimize any services to the OECS. For example, IT
procurement could lead to the standardization of hardware, software and other peripherals.
Currently the EU under the Information and Communication Technology Development
Program/SFA 2005 will help establish an electronic procurement system which will achieve
savings in government expenditure while facilitating participation by local businesses.
World Bank assistance could further enhance upon this electronic procurement system by
making public transactions information available on-line and readily accessible which would
increase the transparency and efficiency of government procurement. Such a system could be
developed and installed for all OECS nations, allowing national access and authorization
codes so that each country can handle independently through their Tender Board regionally
different purchases classified by mutually agreed thresholds.
58. Given that the OECS countries have relied on procurement agents since well before
independence, very few public sector officials have received procurement training and
consequently there is an urgent need to build human capacity in procurement. It is anticipated
that this project will improve procurement capacity within the OECS secretariat.
43
E-procurement examples 1/
Empirical studies over the last few years in Germany have shown that public online procurement would reduce
purchasing prices by 10-30 % and transaction costs by 25-75%. Other studies showed that the average transaction
costs for suppliers dropped by 30 –90%. For example, by using the national education portal in Great Britain, some
500 schools achieve price reductions of up to 100 million British Pounds per year and time reduction of about 90%
in order processing.
The costs for moving online the European electronic procurement SIMAP system amounted to some €10
million. Its distribution in paper has been cancelled saving an estimated €70 million each year. In addition,
the time between advertising and contract awarding can be reduced from 52 days to some 10-15 days.
With the phased introduction of the Government electronic Procurement System (GePS), Korea is able to
save some US$ 2.7 billion of all government procurement (US$ 17.1 billion) as compared to US$ 26
million investment. Between 1998 and 2002, staff of the Public Procurement Service PPS were reduced
from 1,058 to 935, while the total government procurement volume increased by some 30% (from US$
12.8 billion to US$ 17.1 billion). Payments to suppliers are electronically transferred which usually takes
no longer than 4 hours.
Romania uses a government-wide e-Procurement system bringing together about 1,000 public agencies and
8,000 suppliers. During the first 4 months of 2003, more than 60,000 transactions were completed.
According to the Ministry of Communications and Information Technology, the savings through this
platform amount to some 22% (US$ 35.5 million) of the volume of purchased goods and services (US$
161.4 million).
During the first three years of the procurement portal COMPRASNET's, the Federal Government of Brazil
spent about US$ 7million on system development and maintenance. During the first two years of on-line
reverse auction use, the Federal Government is estimated to have saved up to US$ 1.5 million. Besides this
positive return on investment, the system enables better and more transparent procurement, as well as
reducing the red tape in the process. For example, a normal procurement process takes more that two
months. The on-line reverse auction may be completed in less than 15 working days. The use of on-line
procurement has also increased the participation of small businesses in government supplies. 1/
From the ELECTRONIC GOVERNMENT PROCUREMENT (e-GP) World Bank Strategy
59. Health and Other Social and Productive Sectors. Many governments in the OECS
have embarked on reform initiatives in the health sector. Some have acknowledged, over the
past several years, the importance of Information Technology (IT) to the health sector given
the persistence of problems in data management and analysis. An integrated health
management information system can enable the improved management of data, information
and knowledge, effective communication and decision making, improved resource allocation
and a long-term sustainable environment for achieving the enhanced delivery of healthcare
services.
60. The system should also be able to facilitate health services delivery at the regional level
through patient and disease information, and generate reports on areas such as morbidity and
mortality, disease surveillance and disease prevention, and service utilization in order to
determine priority health areas and resource gaps, and maximize the use of health resources
to create a more efficient health system. The HIV/AIDS pandemic in the OECS serves to
highlight the need for priority regional e-government cooperation in healthcare.
Rationale for E-Government in Other Sectors (mostly for Phase 2)
61. The OECS states are facing similar challenges regarding issues related to public sector
modernization. They all have scarce human resource capacities and weak institutional
44
frameworks. The common E-government initiatives under Phase 1 would enable
governments to speed up integration and improve basic institutional needs. Under Phase 2,
countries could deepen their E-government program, tailor it to the specific characteristics of
each country on the national level, and expand it to other sectors beyond public finance, such
as Agriculture, Tourism, and Education sectors, among others.
62. Agriculture and Tourism. Viable linkages between agriculture and tourism can be
strengthened by enhancing or increasing the access of small-scale producers as suppliers to
the local hospitality industry, including hotels and restaurants, with the support of enabling
ICT applications, so as to enhance the competitiveness of local producers, facilitate export
activities, realizing a more equitable distribution of the economic benefits of tourism related
activities and improve the supply chain of the tourism industry. An essential requirement is
the establishment of the size and characteristics of the market for fresh produce in this market
segment (demand profile).
63. Education. Significant improvements can also be made in the Education sector by
enhancing the e-government program in Phase 2. This tool would allow governments to
improve the quality of the teaching and learning process, with more direct interventions and
provision of resources at the school level. It would also provide various mechanisms to
provide student support, strengthened management of the sector and governance of schools,
and coordinated activities and services at the regional level. Governments would be able to
rationalize the use of resources and more effectively monitor programs and their progress.
45
Annex 2: Major Related Projects Financed by the Bank and/or other Agencies
OECS E-Government for Regional Integration Project for St. Vincent and the Grenadines
World Bank:
1. OECS BACKWARD LINKAGES IN TOURISM STUDY P106740: The OECS
Backward Linkages in Tourism report will analyze the demand for local products by the
tourism industry in the OECS; identify obstacles to better linkages to local farmers and
producers, including quality, transport and logistics bottlenecks, and propose concrete policy
actions. The OECS EGRIP Phase II pilot on agriculture/tourism expects to benefit from the
results of this study. The EGRIP task team will coordinate with the TTL and his team before
commencing Phase II operations.
2. PRIVATE SECTOR FINANCING FOR OECS COUNTRIES P101320: This ESW
analyzed the major obstacles that private sector companies face in order to access finance,
especially the SME sector, and reviewed the current role of development banks in the region
and how these institutions can play a better role in enhancing access to finance by the private
sector. This ESW, which has already been completed (11/07), influenced the task team to
extensively involve ECCB in project consultations, as well as define a key role for them in
the EGRIP project.
3. OECS: STRENGTHENING INSTITUTIONAL CAPACITY FOR PROJECT
IMPLEMENTATION P104531: The IDF grant would provide financing for technical
assistance to assist the Governments of the OECS sub-region in implementing specific action
plans to build institutional capacity in the key areas discussed above. The EGRIP project
also aims to strengthen institutional capacity in the OECS, particularly in the areas of
financial management and procurement, and will keep abreast of the results of this IDF/TA.
The IDF grant‘s completion memo is planned for 9/08.
4. OECS-CATASTROPHE INSURANCE P094539: The development objective of the
project is to reduce the participating country's financial vulnerability to natural disasters
through the provision of financing to allow these countries to join the Caribbean Catastrophe
Risk Insurance Facility and the purchase of financial protection against catastrophic
hurricane and/or earthquake losses. This project is currently already effective and will close
in 12/10. Although not directly connected with EGRIP, this project informed the design of
the EGRIP project.
5. OECS FIDUCIARY REVIEW - FINANCIAL MANAGEMENT PROCUREMENT
(JOINT) P098953: The OECS Fiduciary Review, completed on 1/08, was conducted jointly
between financial management and procurement and consisted of a detailed review of
government financial management and procurement system in the OECS in the context of
projects' implementation. As financial management and procurement capacity building are
important aspects of EGRIP as well, the EGRIP task team coordinated their work with the
results of this review.
46
6. OECS COUNTRY FINANCIAL ACCOUNTABILITY ASSESSMENT (CFAA)
P076727: Although this was completed in 2003, some of the lessons learned for EGRIP in
the area of financial management were drawn from this CFAA.
7. OECS (GRENADA) SKILL FOR INCLUSIVE GROWTH P095681: The broad
objectives of the project are two-fold, namely, to increase the employability and career
mobility of unemployed youth and to strengthen the policy framework for the delivery of
training. Results of this project will impact Phase II of OECS EGRIP, which will potentially
include an Education pilot. The task team will also review the operational manual and the
regional and national implementation arrangements in this project for possible lessons
learned.
8. TELECOMMUNICATIONS & ICT DEVELOPMENT PROJECT P088448 as well as
OECS: TELECOMMUNICATION REFORM P035730: Both projects related to improving
the access, quality, and use of telecommunications and ICT services to achieve socio-
economic development in the Organization of Eastern Caribbean States (OECS). Both
projects deal with telecommunications, which is a needed backbone for the EGRIP project.
In the case of OECS Telecom, the structure of ECTEL and the associated implementation
arrangements influenced the implementation plans for the EGRIP project.
9. GRENADA TECHNICAL ASSISTANCE PROJECT P101322: This project, which is
ongoing (board date 2/08), deals with some of the issues EGRIP deals with, namely Customs
Modernization, and Tax Administration. The TAC also includes work on Export strategy,
and. Modernization of Investment Promotion, which are not related to EGRIP.
10. Dominica GROWTH AND SOCIAL PROTECTION TECHNICAL ASSISTANCE
CREDIT P094869: The project aims at making the public sector more efficient and
effective, improving the investment climate, regulatory framework for the energy sector, and
improving social protection. The EGRIP project also deals with the issue of making the
public sector more efficient and effective, and hence we will be coordinating with this
project, which became effective last year and will close in 2010.
Other donors:
11. Multi-donor Caribbean Technical Assistance Centre (CARTAC). The CARTAC24
initiative supports the capacity development needs of countries by providing support to new
and emerging economic sectors, which include offshore and financial services. CARTAC is
IMF-executed and operates as a UNDP project, funded primarily by CIDA, with important
contributions from the IMF, IADB, DFID, UNDP, USAID, the EU, the World Bank, and the
CDB.
12. Under a UNDP Subregional Project, UNDP funded technical inputs to support the
establishment of a Human and Social Development Unit in the OECS Secretariat and to
facilitate the coordination and analysis of social statistics. The Unit created systems and
programmes to assess currently available social data and identify areas where data necessary
for social planning are required on an ongoing basis. It designed and implemented a system
24
http://www.bb.undp.org/index.php?page=about-undp
47
for the collection of new classifications of data, including a permanent household survey
capability which was established and upgraded in the national statistical offices of Member
States. The formulation and publication of an OECS Human Development Report was one of
the main outputs of this project, which received funding support of around US$ 600,000.
13. UNDP in collaboration with CIDA provided US$1.5 million to improve the capacity of
microfinance institutions in selected OECS Member States. The project will also strengthen
the sustainable delivery of financial services to low-income entrepreneurs by enhancing the
institutional and technical capacity of the subregional and national level organizations.
14. EU: Special Framework of Assistance (SFA) 2005: Under SFA 2005, the European
Commission has provided funding to Dominica, Grenada and St. Vincent and the Grenadines
for the development of the ICT sector. Under project number Europe Aid
122848/C/SER/BB, Dominica will receive €4.51M, Grenada €0.5 M and St. Vincent and the
Grenadines €4.53 M respectively25
.
15. Canada: IT SUPPORT OF THE ECONOMIC MANAGEMENT IN THE CARIBBEAN
(SEMCAR), Eastern Caribbean Economic Management Program (ECEMP), and Guyana
Economic Management Program (GEMP) are some of the programs initiated by CIDA26
.
25
http://www.idisc.net/en/Article.38550.html 26
See http://www.acdi-cida.gc.ca/cidaweb/cpo.nsf/vWebCCEn?OpenView&RestrictToCategory=4434 for complete
list of CIDA funded projects in the Caribbean
48
Annex 3: Results Framework and Monitoring
OECS E-Government for Regional Integration Project for St. Vincent and the Grenadines
Results Framework
1. To measure the progress toward achieving the project development objective and
outcomes, key indicators were defined as per the table below. Specific parameters of
indicators as well as baseline values will be determined and collected shortly after project
effectiveness through a study funded by the project.
DO Project Outcome Indicators Use of Project Outcome
Information
The overall development objective
of the project is to promote the
efficiency, quality, and transparency
of public services through the
delivery of regionally integrated e-
government applications that apply
economies of scale
Government financial savings in
areas such as public financial
management, tax administration,
customs and procurement due to
new e-government systems
($/country/year)
Estimated users‘ time and cost-
savings (measured through
standardized methodology for
representative transactions)
Increase in number of electronic
transactions processed by regional e-
government applications (total # of
transactions with breakdown)
Increase in e-government services
offered or upgraded (#)
Improvement of ratings in areas of
functionality, accuracy and usability
of e-government services, as
reported by users through
satisfaction surveys
Improvement of ratings in areas of
openness, responsiveness and
access to relevant information, as
reported by users through
satisfaction surveys
New regional institutional
framework is created with adequate
capacity to provide new regionally
integrated e-government services, in
accordance with regionally
harmonized policies and regulations
Measures efficiency through
financial savings and increased
revenues.
Measures efficiency through users‘
(citizens/businesses) time and cost
savings (both direct and indirect).
Measures coverage of service
delivery
Measures quality through increased
scope of services
Measures quality through end-user
satisfaction
Measures transparency
Measures regionalization
49
Intermediate Outcomes Intermediate Outcome Indicators Use of Intermediate Outcome
Monitoring
1.1 Publication of outcome-oriented
regionally-focused e-government
strategy implementation plans for
OECS countries
Show progress on the policy-making
side of reform.
1.2 Implementation of key
institutional and IT requirements for
priority aspects of a regionally
harmonized e-government
regulatory framework, as identified
by a gap analysis
Show progress on implementing
regulatory reform
1.3 Definition and publication of
regional e-government standards and
total cost of ownership framework
Show progress on implementing
reforms with strategic considerations
1.4 Regional agreement for new
institutional framework is reached,
financing is provided, staff is hired
and trained
Show the creation of sustainable
local capacity
1.5a Detailed design and
implementation of ID system in core
user agencies, including issuance of
ID numbers and cards.
1.5b Design and implementation of
interoperability framework.
1.5c Percentage of regional
population covered in e-ID system
Shows the successful delivery of an
e-government application
2.1a Completion of e-government
service upgrades to the Public
Financial Management system, as
well as interfaces with other systems
and web-based public information
system
2.1b Increase in volume of
transactions of the Public Financial
Management systems (internal and
external users)
2.1c Time savings of new system
(reduction in time needed to
complete representative
transactions)
Level of demand for e-government
services indicating successful
implementation of e-government
50
2.1d Financial savings due to new
system ($)
2.2a Completion of e-government
service upgrades to the e-Taxation
system as well as interfaces with
other systems and web-based tax
filing system
2.2b Increase in volume of
transactions of e-Taxation system
(total of # of transactions per
country)
2.2c Time savings of new system
(reduction in time needed to
complete representative
transactions)
2.2d User financial savings and
increased revenues due to new
system ($)
Level of demand for e-government
services indicating successful
implementation of e-government
2.3a Implementation of a regional e-
Customs system as well as interfaces
with other systems and web-based
customs filing system
2.3b Increase in volume of
transactions of regional e-Customs
system (total # of transactions)
2.3c Time savings of new system
(reduction in time needed to
complete representative
transactions)
2.3d User financial savings and
increased revenues due to new
system ($)
Level of demand for e-government
services indicating successful
implementation of e-government
2.4a Implementation of an e-
Procurement system in all OECS
countries as well as interfaces with
other systems
2.4b Increase in volume of
transactions of regional e-
Procurement system (# of
transactions)
2.4c Time savings of new system
Level of demand for e-government
services indicating successful
implementation of e-government
51
(reduction in time needed to
complete representative
transactions)
2.4d Financial savings due to new
system ($) for (i) private sector and
(ii) public sector.
2.5a. Implementation of a regional
Health Management Information
System
2.5b. Increase in volume of
transactions of a regional health
management information system (#
of transactions)
2.5c Time savings of new system
(percent reduction of time needed to
complete representative
transactions)
2.5d Users‘ financial savings due to
new system ($)
Level of demand for e-government
services indicating successful
implementation of e-government
2. In addition to the indicators above, the performance of client countries in the following
international indices will also be monitored and included in reporting, however not in a
manner binding to the project‘s monitoring and evaluation framework. The indicators are the
(a) ranking and (b) change of ranking from the previous year in the following indices:
Economist Intelligence Unit‘s e-Readiness rankings
United Nations Public Administration Network‘s e-Government Readiness rankings
World Economic Forum‘s Networked Readiness Index
Arrangements for results monitoring
3. Monitoring and Evaluation of project components and sub-components will be a
streamlined, integrated aspect of project implementation and management. The following
arrangements are made for this project:
Some indicators may be selected as informal indicators, which will be useful for
following the results and successes of each sub-component, but will not be considered
binding to the project‘s monitoring and evaluation framework. This may be the case with
indicators for which data collection may be more ambitious or challenging, or where
sustainability or reliability is currently not known.
An M&E training will be conducted for the Regional E-Government Unit (REGU), and
their M&E delegates at the time of project launch. The training will cover the basics of
(a) monitoring and evaluation frameworks, (b) different types of indicators, including
impact and outcome indicators, (c) collection efforts, (d) reporting requirements for the
52
World Bank project. After the training, the national focal points will be asked to present
their plans for data collection through the lifetime of the project, and commit to supplying
the REGU with (1) baseline data and (2) updates on the actual/projected data during each
World Bank supervision mission.
Data collection and reporting will be the ultimate responsibility of the REGU and
national focal points.
Data collection and reporting should be automated where possible, and be written into the
TORs where sub-components such as portals or applications are implemented by a
vendor. For example, an application should be delivered such that it counts, for example,
its unique users, downloaded forms, and transactions, and is able to create a simple report
of aggregated numbers at regular intervals, or on demand. Associated costs need to be
written into the budgets for the sub-components.
A budget for survey-based collection of results data will be provided under the project.
The mid-term project review may offer the opportunity to amend the indicator series, or
target values based on evolving circumstances.
53
Arrangements for results monitoring
Target Values Data Collection and Reporting
Project Outcome Indicators Baseline YR1 YR2 YR3 YR4 YR5 Frequency and
Reports
Data Collection
Instruments
Responsibility for
Data Collection
Government financial savings in
areas such as public financial
management, tax
administration, customs and
procurement due to new e-
government systems
($/country/year)
Estimated users‘ time and cost-
savings (measured through
standardized methodology for
representative transactions)
Increase in number of electronic
transactions processed by
regional e-government
applications (total # of
transactions with breakdown)
Increase in e-government
services offered or upgraded (#)
Improvement of ratings in areas
of functionality, accuracy and
usability of e-government
services, as reported by users
through satisfaction surveys
Improvement of ratings in areas
of openness, responsiveness and
access to relevant information,
as reported by users through
satisfaction surveys
Baseline and
target
indicators to
be
determined
by a
survey/study
to be
launched
shortly after
effectiveness
and to be
completed
during the
first year of
the project.
Update report for each
World Bank
supervision mission and
an annual summary.
Automated
calculations
through vendors‘
applications.
REGU monitoring
or survey/study
REGU
REGU
REGU
REGU
REGU
REGU
54
New regional institutional
framework is created with
adequate capacity to provide
new regionally integrated e-
government services, in
accordance with regionally
harmonized policies and
regulations
REGU
Intermediate Outcome
Indicators27
1.1 Publication of outcome-
oriented regionally-focused e-
government strategy
implementation plans for OECS
countries
0
0
1
1
1
1
Annual summary, plus
an update report for
each World Bank
supervision mission.
REGU monitoring
or survey/study
REGU
1.2 Implementation of key
institutional and IT
requirements for priority aspects
of a regionally harmonized e-
government regulatory
framework, as identified by a
gap analysis
0
0
0
1
1
1
Annual summary, plus
an update report for
each World Bank
supervision mission.
REGU monitoring
or survey/study
REGU
1.3 Definition and publication
of regional e-government
standards and total cost of
ownership framework
0
0
1
1
1
1
Annual summary, plus
an update report for
each World Bank
supervision mission.
REGU monitoring
or survey/study
REGU
1.4 Regional agreement for new
institutional framework is
reached, financing is provided,
staff is hired and trained
0
0
0
0
1
1
Annual summary, plus
an update report for
each World Bank
supervision mission.
REGU monitoring
or survey/study
REGU
27
Many of these indicators are binary in nature, and hence when a ―1‖ is indicated, the intermediate outcome is expected to have been achieved.
55
1.5a Detailed design and
implementation of ID system in
core user agencies, including
issuance of ID numbers and
cards.
1.5b Design and implementation
of interoperability framework.
1.5c Percentage of regional
population covered in e-ID
system
0
0
0
0
0
0
0
1
0
0
1
0
1
1
20
1
1
40
Annual summary, plus
an update report for
each World Bank
supervision mission.
REGU monitoring
or survey/study
REGU
2.1a Completion of e-
government service upgrades to
the Public Financial
Management system, as well as
interfaces with other systems
and web-based public
information system
2.1b Increase in volume of
transactions of the Public
Financial Management systems
(internal and external users)
2.1c Time savings of new
system (reduction in time
needed to complete
representative transactions)
2.1d Financial savings due to
new system ($)
0
Baseline and
target
indicators to
be
determined
by a
survey/study
to be
launched
shortly after
effectiveness
and to be
completed
during the
first year of
the project.
0
0
1
1
1
Annual summary, plus
an update report for
each World Bank
supervision mission.
REGU monitoring
or survey/study
Automated
calculations
through vendors‘
applications.
REGU
2.2a Completion of e-
government service upgrades to
the e-Taxation system as well as
interfaces with other systems
0
Baseline and
0
0
1
1
1
Annual summary, plus
an update report for
each World Bank
supervision mission.
REGU monitoring
or survey/study
REGU
56
and web-based tax filing system
2.2b Increase in volume of
transactions of e-Taxation
system (total of # of
transactions per country)
2.2c Time savings of new
system (reduction in time
needed to complete
representative transactions)
2.2d Users‘ financial savings
due to new system ($)
target
indicators to
be
determined
by a
survey/study
to be
launched
shortly after
effectiveness
and to be
completed
during the
first year of
the project.
Automated
calculations
through vendors‘
applications.
2.3a Implementation of a
regional e-Customs system as
well as interfaces with other
systems and web-based customs
filing system
2.3b Increase in volume of
transactions of regional e-
Customs system (total # of
transactions)
2.3c Time savings of new
system (reduction in time
needed to complete
representative transactions)
2.3d Users‘ financial savings
and increased revenues due to
new system ($)
0
Baseline and
target
indicators to
be
determined
by a
survey/study
to be
launched
shortly after
effectiveness
and to be
completed
during the
first year of
the project.
0
0
1
1
1
Annual summary, plus
an update report for
each World Bank
supervision mission.
REGU monitoring
or survey/study
Automated
calculations
through vendors‘
applications.
REGU
2.4a Implementation of an e-
Procurement system in all
0
0
0
1
1
1
Annual summary, plus
an update report for
REGU monitoring
or survey/study
REGU
57
OECS countries as well as
interfaces with other systems
2.4b Increase in volume of
transactions of regional e-
Procurement system (# of
transactions)
2.4c Time savings of new
system (reduction in time
needed to complete
representative transactions)
2.4d Financial savings due to
new system ($) for (i) private
sector and (ii) public sector
Baseline and
target
indicators to
be
determined
by a
survey/study
to be
launched
shortly after
effectiveness
and to be
completed
during the
first year of
the project.
each World Bank
supervision mission.
Automated
calculations
through vendors‘
applications.
2.5a. Implementation of a
regional Health Management
Information System
2.5b. Increase in volume of
transactions of a regional health
management information
system (# of transactions)
2.5c Time savings of new
system (reduction in time
needed to complete
representative transactions)
2.5d Financial savings due to
new system ($)
0
Baseline and
target
indicators to
be
determined
by a
survey/study
to be
launched
shortly after
effectiveness
and to be
completed
during the
first year of
the project.
0
0
0
1
1
Annual summary, plus
an update report for
each World Bank
supervision mission.
REGU monitoring
or survey/study
Automated
calculations
through vendors‘
applications.
REGU
58
Annex 4: Detailed Project Description28
OECS E-Government for Regional Integration Project for St. Vincent and the Grenadines
COMPONENT 1
Horizontal E-Government Interventions: US$ 3.54 million
(37% of total cost of the project)
1. The objectives of this subcomponent are to (a) strengthen and harmonize national and
regional e-government processes, ICT platforms and frameworks, (b) promote more efficient
regionally-based ICT development and strengthen capacity, (c) provide a better-enabled
environment to achieve the objectives of the public administration in a globally competitive
context, and (d) to better serve citizens, businesses and consumers in the region.
2. Emphasis will be given to capacity building of Public Administration by providing
stakeholders with assistance to harmonize and revise regional and national sector policy,
strategy, legislation and related legal and regulatory frameworks, and to develop a structured
sustainable means to move forward and improve regional coordination in e-government.
Subcomponent 1.1. Policy and Strategy Implementation -- US$ 240,000
3. This subcomponent will build on existing e-government policy and strategy development
efforts, notably under EU-funded programs. The purpose of this subcomponent is to provide
assistance in specific aspects of implementation of the national e-government strategies,
provide support for updating and harmonizing e-government policies and strategies across
the region through on-going consultation with key actors, as well as provide a framework for
regional e-government cooperation activities. This will include assistance in defining the
overall parameters of an interoperability framework and enterprise architectures, which will
be designed in detail under components 1.3 through 1.5. Within this broad theme, the
subcomponent includes the following activities, among others: (a) Strategic review and
assessment, including comparative analysis of high-level regional e-government vision and
goals, global lessons learned, update of national and regional OECS e-government strategies,
as well as definition of detailed implementation action plan; (b) Monitoring and evaluation
framework, including clearly defined timeframe, criteria and indicators, as well as detailed
baseline and monitoring data collection.
Subcomponent 1.2. Legal and Regulatory Framework Implementation -- US$ 360,000
4. This subcomponent will provide complementary contributions to the EU-funded effort to
harmonize legal and regulatory frameworks for electronic transactions, focusing on
implementation aspects. The subcomponent includes the following activities: (a) Gap
analysis and overall assistance for harmonized legal and regulatory framework development
and implementation, which may involve complementary regulatory drafting, notably on
28
All the cost figures indicated here refer to the four IDA countries together, including not only St. Vincent and the
Grenadines, but also the other three that joined the program under APL1 (Dominica, Grenada and St. Lucia). The
amounts corresponding to St. Vincent are estimated at one quarter of those indicated in this annex.
59
electronic transactions and digital signatures; privacy and data protection; computer misuse;
interception of communications; and freedom of information, among others; and (b)
Equipment, software and training for implementation of selected pieces of legislation.
Subcomponent 1.3. ICT Standards and Total Cost of Ownership Optimization -- US$
500,000
5. This subcomponent is aimed at assisting countries in improving their e-government
standards and architectures, as well as overall public sector ICT management and investment
practices. The subcomponent will assist countries in identifying potential savings in ICT
projects through such tools as pooled procurement of software licenses, implementation of
Public-Private Partnerships, and developing frameworks for the assessment of the total cost
of ownership of a specific solution (including open source software), among others.. This
includes analyzing and recommending common information system architectures and
standards, viable mechanisms to support and maintain information systems, and establishing
sustainable unified policy, strategy and implementing guidelines for on-going optimization.
The subcomponent includes the following activities, among others: (a) Assessment of current
standards and architectures, definition of harmonized e-government standards,
interoperability framework and enterprise architectures (on the basis of Service-Oriented
Architectures); (b) Assessment of ICT management and investment practices, development
of framework for total cost of ownership analysis and optimization, identification of potential
savings and strategy for pooled procurement of software licenses; (c) Assistance for pooled
procurement of software licenses on pilot basis; and (d) Capacity building on standards,
service architecture, open source software and Total Cost of Ownership optimization.
Subcomponent 1.4. Regional E-Government Institutional Framework Strengthening -- US$
1.4 million
6. This subcomponent will assess the current institutional framework for e-government
project implementation and technical support in the participating countries, and will provide
assistance in the strengthening of the regional institutional framework for e-government. One
option that will be explored through the project is the creation of a self-financing sustainable
regional E-Government Center of Excellence to provide participating countries with policy
guidance, technical support and capacity building in the implementation of ICT systems in
government, while at the same time implementing key regional projects and e-government
applications on behalf of the participating countries (such as the regional e-procurement
platform), as well as focusing on internationally recognized certifications, mentoring and
‗train the trainer‘ programs. It will achieve self-financing and future sustainability by
provision of services to the participating governments and the private sector, such as:
management of hardware and software maintenance contracts, application development and
hosting, management of regional information systems (e.g. the e-procurement platform), as
well as provision of technical advisory, certification, training and capacity building services,
among others.
7. The exact institutional and business model for the proposed OECS Regional E-
Government Center of Excellence will be decided in the initial phases of project
implementation. Alternative options for performing the functions of a regional e-government
60
center of excellence, include a network of national-level institutions (such as the existing e-
government or ICT units), or integration into a CARICOM-wide e-government center of
excellence or network of centers. It is expected that partnerships will need to be established
with leading private sector companies, training institutions, academic institutions, standards
setting bodies, regional institutions (such as ECCB, CARICAD and ECTEL), industry
associations and the participating governments.
8. The subcomponent includes the following activities, among others: (a) review of regional
e-government institutional framework, assess options and business plan for a regional center
of excellence, and strategic institutional design and implementation action plan, including
governance structure, organizational and business model, implementation arrangements,
staffing, action plan for the first 18 months, etc.; (b) start-up implementation support for the
new regional e-government institutional framework, including assistance in the establishment
of initial service agreements with participating countries, partnership arrangements with
international experts from academia, industry and governments; (c) equipment for start-up
implementation; (d) Support to national e-government units, through country-based
specialists, among others, and assistance to steering committees, including support for
enhancing coordination with donors; and (e) Training and capacity building at the national
level.
Subcomponent 1.5. Automated Registries and Multi-Purpose Identification Systems -- US$
1.04 million
9. This subcomponent will review the current status of key government registries and
support the creation of harmonized National Identification Systems as a core shared service to
be used throughout all e-government platforms, integrated with other key information systems at
the national and regional level, where appropriate (Civil and Business Registries,
Immigration Systems, and Election Systems). The subcomponent includes the following
activities, among others: (a) Needs assessment for national ID system, evaluation and
simplification of processes as needed, and design of Multi-Purpose Identification System as a
core piece of the overall interoperability framework; (b) Development and implementation of
system, including software development, modernization of business and civil registry,
election card system, if required, and integration of back end systems and databases; (c)
Implementation assistance in core user agencies; (d) Pooled procurement of necessary
equipment and National ID cards; and (e) training and consensus building.
COMPONENT 2
Vertical E-Government Interventions: US$ 4.93 million
(51% of total cost of the project)
10. The objective of this component is to harmonize and improve key e-government systems
by focusing on specific interventions in core areas of public finance. This area was identified
as a national and regional priority by all stakeholders, due to regional commonalities that can
be used on a pragmatic basis to begin to harmonize regional e-government systems, to
modernize their Public Administrations, to develop guidelines, and to catalyze further
integration in regional processes. This component will build upon, and coordinate closely
61
with Component 1 (Horizontal E-Government Interventions) to ensure that the desired
vertical goals are supported by the newly developed horizontal tools, standards and
regulations.
11. In many aspects, the activities included in this component will build upon, and
complement results achieved by the CIDA-sponsored ECEMP program, which is focused on
the modernization and capacity-building of the public finance sector. CIDA is currently in
the process of conducting the preparation of its new SEMCAR program, which may include
further support for the modernization of the core PFM systems, including tax and customs.
To that end, CIDA has recently launched an IT diagnostic study through CARTAC, which
will inform the design of SEMCAR as well as prove a useful input to the detailed activities
foreseen under EGRIP. If this type of support is not forthcoming via SEMCAR, CIDA, in
concert with other donors, will explore other means to address the modernization of PFM
systems. In light of that, EGRIP will focus on web-based front-end systems, for service
delivery as well as interfaces and interoperability among systems, thus minimizing the
potential areas for overlap and maximizing the overall efficiency of the proposed activities.
EGRIP and SEMCAR will be closely coordinated throughout implementation.
Subcomponent 2.1. E-Government in Public Financial Management (PFM) -- US$ 1.28
million
12. As a result of CIDA‘s ECEMP program implementation, four out of six OECS countries
(Dominica, Grenada, St. Lucia and St. Vincent and the Grenadines) installed and are
currently using the same accounting software – Smart Stream. However, the installation and
customization processes have not been fully completed. As a result, the degree of Smart
Stream utilization significantly varies from country to country, depending on the availability
and skills of local resources. In addition, all country-clients face problems associated with the
lack of supporting operational processes, insufficient user training and, in some cases,
technical maintenance. Two remaining countries, Antigua and Barbuda and St. Kitts and
Nevis, are currently utilizing different accounting software, (Free Balance and FITRIX
accordingly), nevertheless they face very similar problems, which, in their case, might
eventually become even more perilous due to the lack of the peer support.
13. To address the issues described in the previous paragraph, this subcomponent will focus
on upgrading and bringing the existing core public financial management systems (in most
cases, , implemented on the basis of the ―SmartStream‖ software solution) to full capacity, to
provide better services and information to government employees and the public in general,
and to avoid duplication of work in a context of scarce human resource capacity. This will
involve, among others, the full implementation and integration of budgeting, accounting and
reporting modules; full implementation of the HR module, if applicable; update of the
underlying processes and control framework; design of interfaces to link budget, revenue
(tax, customs), expenditure and reporting modules into a single public finance system, as
well as possible development of a web-based public information system, aimed at providing
information to the public at large on government finances in an easily understandable format.
14. More specifically, this subcomponent will include the following activities, among others:
62
a. Overall assistance for PFM sub-component implementation. This activity will involve
the services of specialized short-term local and international consultants, who will be
brought in at key junctures during the implementation of this sub-component, to provide
long-term assistance to the implementation of all the activities included in this sub-
component. It will provide an action plan, milestones, indicators, and provide on-going
advice to the project teams and beneficiary agencies in the participating countries with
regards to implementation issues and results-monitoring.
b. Gap analysis between the governments’ financial management needs and the PFM
systems capabilities.29
This analysis will be done at the individual country level, so that
the proposed actions can be adequately tailored to meet the country-specific needs. It will
focus on both IT as well as operational processes and requirements, and, as a by-product,
might identify additional capacity-building activities, which, while falling outside of the
scope of this project, will need to be eventually addressed to achieve the high-quality,
lasting results in the area of the public sector financial management. CIDA has recently
launched an IT diagnostic through CARTAC, designed as a stock-taking exercise to
assess the current situation and gather materials for the newly proposed SEMCAR
project. It is expected that its results would be a major input to the proposed gap analysis
as well as to other activities under this sub-component.
c. Upgrade and integration of the HR, budgeting, accounting and financial reporting
modules and databases; development and implementation of comprehensive,
results-oriented budget classifications and design of standardized financial
reporting formats. Currently, the treasury module is the most widely used module in all
four countries implementing Smart Stream. Utilization of the budgeting and reporting
modules continues to lag behind. Depending on the capacity existing within each
individual country, attempts have been made to find alternative solutions, including in-
house development of budgeting/reporting modules/databases and/or acquisition of
additional software. Based on the conducted gap analysis, this activity will focus on
choosing the best-suiting, and hopefully, uniform, solution which would meet the
countries‘ budgeting and financial reporting requirements and one that would allow the
integration of budgeting, accounting and reporting cycles into a continuous process. In
addition to a potential acquisition and installation of hardware and software, this will also
include development of standard processes, formats, budget classification and charts of
accounts, linking all three major components of the public financial management:
budgeting, accounting and reporting. Finally, settings of already existing and/or newly
acquired modules will then be adjusted/fine-tuned to enable production of needed
information and designed reports, and to ensure the full utilization of the potentially
available capacity. The HR module within Smartstream will be critically assessed for
adequacy to meet the governments‘ HR management needs. Based on this assessment,
the project would assist on either fully implementing this module or acquiring an
alternative solution for the participating countries.
29
Ideally, this analysis should be accompanies by the evaluation of the underlying government‘s policies and
processes, which in the future would allow to enhance the ICT-focused improvements with the parallel policy
reform.
63
d. Development of a user-friendly, easy to use interface linking the PFM system with
the tax and customs systems. Implementation of such interface would produce an
integrated public finance system. This, in turn, would allow to ensure accuracy,
timeliness and completeness of the information recorded in all the inter-linked systems,
and would allow to conduct comprehensive performance monitoring and produce a
variety of consolidated financial reports, fulfilling the Governments and public‘s needs.
e. Development of a user-friendly, easy to use web-based public information system,
aimed at providing information to the public at large on government finances in an easily
understandable format. This tool could include not only areas open to the general public,
but also provide for differentiated levels of access to financial reports by different types
of users, including secure areas for use by authorized officials, from national agencies,
regional authorities (e.g. the ECCB) and international finance institutions (e.g. the IMF).
f. Development of the PFM system operations manual/user guidelines and training of
the involved personnel. To achieve lasting, high-quality, sustainable results, supporting
modernization of the public sector financial management, a PFM operations manual will
be developed, leveraging on the results of the conducted gap analysis and any other
projects focused on the public financial management policy reforms, and clearly defining
underlying operational processes, roles and responsibilities. A comprehensive training
program will be offered to the involved personnel, focusing not only on the IT aspects,
but also clearly explaining operational procedures, and roles assigned to different
ministries/department and coordination models.
g. PFM system maintenance contract. Since four out of the six OECS countries already
use the same accounting system, further harmonization would enable mutual technical
support, and would allow reduce system acquisition and maintenance costs by negotiating
a joined/shared acquisition and maintenance contracts.
Subcomponent 2.2. E-Government in Tax Administration -- US$ 1.14 million
15. This subcomponent is aimed at developing an on-line registration and electronic tax filing
subsystem to interface with the tax management system. It is expected that the current core
tax administration system, SIGTAS, will be upgraded or migrated with the support of a
parallel CIDA program. The on-line filing module will be designed so that it can interface
with any underlying core tax administration system, and will allow for integration with the
banking system for payments and refunds, including through a future regional payments
gateway. This subcomponent will also evaluate opportunities to share tax administration
system support through the regional center of excellence or similar structure.
16. More specifically, this subcomponent will include the following activities, among others:
a. Overall assistance for tax system sub-component implementation. This activity
will involve the services of specialized short-term local and international consultants,
who will be brought in at key junctures during the implementation of this sub-
component, to provide long-term assistance to the implementation of all the activities
included in this sub-component. It will provide an action plan, milestones, indicators,
64
and provide on-going advice to the project teams and beneficiary agencies in the
participating countries with regards to implementation issues and results-monitoring.
b. Design and implementation of on-line registration and e-filing system. This will
be the core activity of this sub-component. It will involve the design and
implementation of a web-based tool to allow for taxpayer registration (closely linked
to the ID Systems sub-component), as well as electronic filing of tax declarations and
returns. As indicated earlier, it is expected that the e-filing module will be developed
with an open platform in mind, in line with the regional service-oriented e-
government architecture to be defined as part of Component 1, so that it can easily be
made to interface with any underlying core tax administration system in place, and
will be designed in an evolutionary fashion utilizing the concept of software as a
service, allowing for incremental updates to the system as it matures. This approach
will allow for eventual integration with the banking system for processing of
payments and refunds, through a future regional payments gateway.
c. Tax system personnel training and user manuals. To achieve lasting, high-quality,
sustainable results, a tax system user manual will be developed, clearly defining
underlying operational processes, roles and responsibilities. A comprehensive training
program will be offered to the involved personnel, focusing not only on the IT
aspects, but also clearly explaining operational procedures, and roles assigned to
different ministries/department and coordination models.
d. Tax system maintenance contract. Given the level of harmonization that already
exists in the systems for tax administration across the OECS countries, joint
procurement of a shared support and maintenance contract with the software vendor
would enable a reduction in the cost of technical support, system upgrade acquisition
and maintenance.
Subcomponent 2.3. E-Government in Customs -- US$ 885,000
17. This subcomponent is aimed at creating a regional customs information sharing network
within the context of the upcoming OECS Economic Union. This will allow for
interoperability of various customs systems over heterogeneous regional platforms, as well as
sharing and crossing of information among public agencies involved in the export and import
processes. It is expected that a parallel CIDA regional program and existing World Bank
programs in some of the countries will support the migration to more modern versions of
ASYCUDA. This subcomponent is therefore not expected to assist in that area, but will
support any additional systems upgrades in particular the implementation of an electronic
filing module, where required, maintenance contracts, well-defined interfaces with PFM and
tax administration systems, as well as training.
18. More specifically, this subcomponent will include the following activities, among others:
a. Overall assistance for customs sub-component implementation. This activity will
involve the services of specialized short-term local and international consultants, who
will be brought in at key junctures during the implementation of this sub-component,
65
to provide long-term assistance to the implementation of all the activities included in
this sub-component. It will provide an action plan, milestones, indicators, and provide
on-going advice to the project teams and beneficiary agencies in the participating
countries with regards to implementation issues and results-monitoring.
b. Regional customs information network, including the online manifest
interchange. This activity will involve the implementation of special modules in the
customs systems to allow for the exchange of cargo manifests. It will also include the
development of a regional information system on customs data, focused mostly on
harmonizing the collection and aggregation of trade data.
c. Customs system upgrades including electronic filing module and interface with
PFM and tax systems. This activity will be mostly dedicated to the development and
implementation of an e-filing module to interface with all the existing customs
systems, as well as any necessary linkages from the customs systems to the PFM and
tax administration systems.
d. Customs system personnel training and manuals. To achieve lasting, high-quality,
sustainable results, a tax system user manual will be developed, clearly defining
underlying operational processes, roles and responsibilities. A comprehensive training
program will be offered to the involved personnel, focusing not only on the IT
aspects, but also clearly explaining operational procedures, and roles assigned to
different ministries/department and coordination models.
e. Customs system maintenance contract. Given the level of harmonization that
already exists in the customs systems across the OECS countries, joint procurement
of a shared support and maintenance contract with the software vendor would enable
a reduction in the cost of technical support, system upgrade acquisition and
maintenance.
Subcomponent 2.4 Electronic Government Procurement -- US$ 800,000
19. The public procurement systems in the OECS require further development. The countries
need to review, harmonize and improve their procurement legal frameworks, build
institutional capacity and implement a regional procurement system for International
Competitive Bidding (ICB), local National Competitive Bidding (NCB) and smaller value
purchasing. Relevant financial and procurement draft laws are under currently under
discussion at a regional level. New legislation should be combined with new processes,
training and an ICT solution. The project will help facilitate the revision of draft proposals
by showing international good practices and helping build institutional and technical
capacity. A more robust procurement platform is needed and this area can build on PPS
success to accelerate regional integration. A regional system could be developed and
installed for all OECS nations to participate. National access and authorizations codes could
be implemented to also allow each country to trade independently through their Tender
Board with different procurement methods classified by mutually agreed thresholds.
66
20. The regionalization of procurement activities through the OECS Pharmaceutical
Procurement Services Unit (PPS) has proven to be a sound and effective initiative. In
addition to cost savings, it provides a wide range of related services, such as training and
technical assistance, a common drug formulary manual, drug utilization studies, quality
assurance, medical education seminars, and a tailor-made database program that alerts users
to expired items and blocks expensive emergency orders. OECS PPS has been successful in
handling an estimated 80 percent of pharmaceutical purchases. However, its sustainability is
threatened by late country payments for subscriptions and pharmaceutical purchases, which
undermine its financial viability and creditworthiness with suppliers. To date, OECS PPS has
been able to sustain its operations and pre-finance some countries‘ participation, by retaining
part of its surplus and earning income on its investments. It is anticipated that private sector
involvement will build on the OECS PPS success and address some of the issues currently
faced by OECS PPS.
21. This subcomponent will therefore create, on a pilot basis, a regional e-procurement
platform, to which the OECS Pharmaceutical Procurement Service (PPS) will connect. This
platform will initially allow for the publication of online notices and award of contracts (this
is a CARICOM requirement), while eventually moving to a transactional system for
competitive tendering. It is expected that this subcomponent will implement the above using
a Public-Private partnership (PPP). A PPP describes a government service or private
business venture which is funded and operated through a partnership of government and one
or more private sector companies.
22. Given that the OECS countries have relied on procurement agents since well before
independence, very few public sector officials have received procurement training. There is
an urgent need to build human capacity in procurement. Consequently, most country-level
issues are related to limited procurement capacity: lack of procurement planning,
inappropriate qualification and evaluation criteria, limited capacity for contract
administration, late payments to suppliers and contractors. As the OECS Secretariat will act
as the implementing agency for the project and the task team recognizes that the OECS
Secretariat is also lacking in procurement capacity, the project will support capacity
strengthening within the secretariat, particularly in the area of procurement and to some
extent in the area of financial management.
23. The Project will support the final design and implementation of an action plan for pooled
procurement in the OECS. Countries that have expressed interest in jointly procuring certain
goods and services require an action plan focused on: (i) improving the economy and
efficiency of the procured goods and services selected for joint procurement; (ii) identifying
the necessary documents and procedures for such joint procurement; (iii) increasing
transparency in joint procurement efforts; and (iv) enhancing accountability in joint
procurement.
24. The subcomponent includes the following activities: (a) Design and implementation of an
action plan for pooled procurement in the OECS, including assessment of options for a PPP
framework for e-procurement; (b) Development of a regional e-procurement platform and
transactional system for competitive tendering; (c) Upgrading and integrating to the regional
e-procurement platform the systems of the OECS PPS and related capacity enhancement; and
67
(d) Application of the regional e-procurement platform and the PPS experience to other types
of goods and services.
Subcomponent 2.5 E-Government in Health and Other Social and Productive Sectors --
US$ 830,000
25. This subcomponent will provide assistance in the implementation of a regional pilot
project in health management information systems, and may be complemented with small
preparatory and/or complementary activities in other social and productive sectors, such as
agriculture and tourism, as well as education, among others. The core health elements of this
subcomponent will explore options, in synergy with existing efforts, for implementation of
standardized hospital facilities management systems and electronic patient records, including
key linkages with national identification systems and civil registries, as well as regional
epidemiological monitoring programs. The subcomponent includes the following activities:
(a) Implementation of a regional e-government pilot project in the health sector, through, in
particular the design and implementation of a regional health management information
system, which may include facilities management systems, electronic patient records,
regional information network and on-line tools for Health Ministries; (b) Preparatory
activities and/or complementary support to existing e-government initiatives in other social
and productive sectors, notably agriculture and tourism, as well as education, postal sector, or
others as may be identified in the early stages of the project.
COMPONENT 3
Project Management: US$ 650,000
(7% of total cost of the project)
26. This component will support the establishment of the Regional E-Government Unit
(REGU) described below, under the direction of an overall Project Manager. The REGU will
also include specialized staff located in the agencies identified in each country as focal points
for the project, thus assisting in project implementation at the local level. To help manage the
fiduciary aspects of the project, there will be a Procurement Specialist, and a Project
Accountant. There is also a provision for office space and equipment, as well as other
operating costs. Finally, there are resources devoted to community outreach and public
awareness, as well as annual external audits.
UNALLOCATED: US$ 480,000
(5% of total cost of the project)
27. Five percent of total project costs are set aside as unallocated to allow for additional
flexibility in complementing activities under the project.
68
Annex 5: Project Costs
OECS E-Government for Regional Integration Project for St. Vincent and the Grenadines
Project Cost By Component and/or Activity Local
US$ million
Foreign
US$ million
Total
US$ million
1. Horizontal E-Government Interventions 0.36 0.53 0.89
2. Vertical E-Government Interventions 0.33 0.90 1.23
3. Project Management 0.15 0.01 0.16
Total Baseline Cost 0.84 1.44 2.28
Physical Contingencies (Unallocated) 0.00 0.02 0.02
Price Contingencies (Unallocated) 0.00 0.00 0.00
Total Project Costs1 0.84 1.46 2.30
Interest during construction xx xx xx
Front-end Fee xx xx xx
Total IDA Financing Required 0.84 1.46 2.30
1
Identifiable taxes and duties have been estimated at US$ 0.23 million and the total project cost,
net of taxes, is US$ 2.16 million. Therefore, the share of project cost net of taxes is 90%.
69
Annex 6: Implementation Arrangements
OECS E-Government for Regional Integration Project for St. Vincent and the Grenadines
1. The project will be implemented by the OECS Secretariat, Regional E-Government Unit
(REGU). For effective project implementation, the organizational structure will be defined at
two levels: regional and national:
g. At the regional level, two new structures will be created, the Regional Technical
Committee (RTC) for the project and the regional E-Government Unit (REGU),
which will be a specialized unit within the OECS Secretariat, the implementing
agency for the project.
h. At the national level, the project will be coordinated by the respective ICT or e-
government units, which will be the national focal points for the project and will
provide assistance to the REGU in implementing the relevant activities at the
national level. The national focal point will be in charge of the day-to-day
management of the technical and logistical aspects of the project at the national
level, including the work program, coordinating with the relevant ministries and
departments, and the preparation of terms of reference and technical
specifications. These units will coordinate their work and receive guidance from
existing national e-government or ICT steering committees (NSCs). No new
structures at the national level are being created for this project.
2. The RTC will be responsible for providing overall policy guidance to the REGU
including monitoring and evaluation of implementation progress and addressing
implementation bottlenecks. Detailed description of roles and responsibilities as well as
composition of the Steering Committees (RTC/NSCs), the implementing agency and the
national focal point units will be included in the Project Operations Manual.
3. Given the multisectoral and regional nature of the project, the RTC will be comprised of
country representatives appointed by the participating governments at the level of Permanent
Secretary or higher, as well as the OECS Secretariat. It will also include representatives from
the other OECS states, CARICAD, CARTAC, ECCB and ECTEL, on an advisory role. The
RTC will be chaired on a rotating basis by the participating governments. The REGU will act
as the executive secretariat of the RTC. Any major policy decisions requiring the agreement
of the Heads of State will be channeled through the OECS Secretariat to the relevant OECS
Authority Meeting.
4. The REGU will report directly to the OECS Secretariat, will seek guidance from the
RTC, and will be responsible for providing timely reports to the governments, the Bank and
other donors. The REGU will be staffed with highly qualified technical staff selected from
among the participating countries. Technical staff from CARICAD, CARTAC, ECCB and
ECTEL may also act as advisors to this unit, as needed. This unit will consist of a Project
Manager, as well as a Procurement Specialist and a Project Accountant. It will be assisted by
one fully paid local specialist per participating country, who will be staff of the REGU
located within existing ICT or e-government units at the national level. Once alternative
70
options are assessed, it is possible that during project implementation a Regional Center of
Excellence may emerge out of the REGU, to support broad e-government implementation at
the regional level, manage regional platforms and provide technical support.
5. At the national level, the project will provide assistance to strengthening existing national
e-government/ICT steering committees as well as to national e-government/ICT units. This
function will be carried out in close consultation with the REGU. The national arrangements
for each country are discussed in the paragraphs that follow.
6. In Grenada, the national focal point for this project will be the Central Information
Management Agency (CIMA) located in the Prime Minister‘s Office, in close coordination
with the PS of Human Resources and the Financial Secretary. This unit is headed by a Senior
Advisor. This unit will be further strengthened with at least two additional persons at a senior
level (Director, Manager or Senior Systems Analyst) from the commencement of the Project.
Allocations for such resources will be provided for under this project as necessary. A
National ICT Steering Committee is in place which could also function as the steering
committee for this project. This committee comprises the Permanent Secretary in the Office
of the Prime Minister; Permanent Secretary, Ministry of Education; Permanent Secretary,
Ministry of Agriculture and the Minister of National Security.
7. In St. Lucia, the eGovernment unit, within the Ministry of Public Service, will be the
national focal point for the project, in close coordination with the Permanent Secretary of
Finance. This unit is headed by a Director of E-Government and is mandated to coordinate
ICT initiatives across the Public Service and to implement several ICT related components
under a European Union funded project, including capacity building/training, ICT legislative
and regulatory framework, process analysis and reengineering, systems integration and the
community technology programme. The staff of this unit also includes a: Project
Coordinator, Business Systems Analyst, Website and Database Specialist and Research and
Administrative Assistant. An E-Government Taskforce has been established, chaired by the
Director of E-Government and comprising the following: Project Coordinator and
Website/Database Specialist, E-Government Unit, General Manager, Computer Center
Limited; MIS Manager, National Insurance Corporation; IT Manager, Universal Health Care;
IT Officer, Police Department; Data and Records Officer, Ministry of the Public Service and
IT Managers of the following Ministries/Departments: Finance; Education, Customs and
Electoral. This Taskforce will serve as the steering committee for this project.
8. In Dominica, the national focal point for the project will be the Reform Management Unit
(RMU) under the Establishment Department, in close coordination with the Financial
Secretary. The staffing of the RMU is expected to be strengthened through the EU SFA 2005
ICT Project, to include the following positions: Director/Coordinator of E-Government;
Systems Management Specialist; Process and Change Management Specialist and Database
Specialist. Dominica has already established a national steering committee which could also
function as the steering committee for this project. This existing steering committee consists
of a representative from each Ministry with an IT department or IT related project.
9. In St. Vincent and the Grenadines, the Ministry of Telecommunications, Science,
Technology and Industry will act as the national focal point for the project, in close
71
coordination with the Director General of Finance and Planning. The Information
Technology Services Division (ITSD), located in the Ministry of Telecommunications,
Science, Technology and Industry, focuses on training, development and maintenance,
software evaluation, and coordination of Government IT operations and projects. The
principal objectives are the on-going development, operation and maintenance of Computer
Systems for ministries, departments and quasi government Organisations and to support all
other government departments in terms of planning, implementing, diagnosing IT Systems.
The Unit is well staffed, with sufficient capacity to undertake the e-government program. A
National ICT Advisory Forum has been created under the ICT Development Programme (EU
SFA 2005), and would also provide support for this project. An ad-hoc steering committee
including the various stakeholders involved in the activities foreseen under EGRIP may also
be created to provide support for the implementation of the project.
10. The REGU will be located within the OECS Secretariat. However, given that heavy
demands have been made of the OECS Secretariat by a variety of donor-funded projects,
without simultaneous building of its capacity, through the creation of the REGU, the project
will place a particular emphasis on significant capacity strengthening within the Secretariat,
particularly in the area of procurement and to some extent in the area of financial
management.
IMPLEMENTATION ARRANGEMENTS
OECS Secretariat
OECS Authority
National Steering Committee
Regional
National
New Regional Institutional Framework
for E-Government
Regional E-government
Unit (REGU)
Agency Agency
Agency
Agency
E-government/ICT unit
Regional Technical
Committee (RTC)
72
Annex 7: Financial Management and Disbursement Arrangements
OECS E-Government for Regional Integration Project for St. Vincent and the Grenadines
1. An assessment of the proposed financial management arrangements for the EGRIP
project was undertaken in December 2007 – January 2008. These arrangements include
systems of budgeting, accounting, financial reporting, auditing, and internal controls and to a
certain extent are building upon already existing structures of the OECS Secretariat. While
the OECS Secretariat has experience of implementing donor-financed projects, the
magnitude and complexity of the proposed initiative will require significant capacity building
measures to be put in place prior to the project‘s effectiveness.
2. Based on the conducted assessment, the OECS Secretariat will have the adequate
financial management arrangements in place, once the Actions Plan proposed at the end of
this annex is fully implemented.
Financial Management Implementation Arrangements
3. Annex 6 details the project‘s implementation arrangements. The Regional E-Government
Unit (REGU) will be created as a specialized unit of the OECS Secretariat and will be
responsible for the project‘s implementation, fiduciary management and disbursements.
While individual credit agreements will be signed with the participating countries, the project
implementation, fiduciary management and disbursements will be centralized at the regional
level.
Risk assessment
4. Table 7.1 summarizes the financial management assessment and risk ratings:
Table 7.1: Financial Management Assessment and Risk Ratings
Risk
Assessment
Risk Mitigating Measures Residual
Risk INHERENT RISKS Country level Since this is a regional project, the
REGU will have to deal with the
challenge of coordinating
activities taking place in the 4
participating countries.
S While each country will have to sign an
individual credit/grant agreement,
fiduciary management will be centralized
in the REGU opened under the auspices of
the OECS Secretariat. The REGU will
handle accounting, financial reporting and
disbursements for all of the individually
signed agreements.
S
Entity level While the OECS Secretariat has
certain experience in
implementation of donor-financed
projects, the complexity and
magnitude of the proposed project
present a number of new
challenges and will require
S A specially designated qualified Project
Accountant will be hired to serve the
project.
S
73
Risk
Assessment
Risk Mitigating Measures Residual
Risk significant capacity building. Project level
OVERALL INHERENT RISK CONTROL RISKS Budget: project activities will
need to be reflected in the budgets
of participating countries as well
as in the OECS Secretariat
budget.
S Project Accountant will supply budget
information directly to the OECS
Secretariat accounting system. Prior to the
beginning of the fiscal year, he/she will
communicate with the countries‘ budget
department to provide them with all
necessary information.
S
Accounting: project accountant
will be responsible for registering
transactions for each credit
agreement and consolidating them
into a single project reports.
S Hire adequately qualified, experienced
Accountant. Install accounting software,
able to support project operations.
S
Internal Controls S Project-specific, detailed Operations
Manual will be drafted and used during the
project implementation.
S
Funds flow: individual
contributions received from each
credit agreements, will then be
combined distributed to pay for
the shared activities.
S Individual account will be opened for each
signed credit agreement. All accounts will
be regularly reconciled. Whenever
possible, funds will be combined in the
project account prior to being paid to the
supplier.
S
Financial Reporting: single
consolidated report will be
prepared for the project. It will
include all bank accounts opened
for each credit agreement.
S Format of the periodical financial reports
will be agreed during the project
preparation. Project accountant will be
trained to prepare these reports.
S
Auditing S Qualified private sector audit firm will be
hired to audit consolidated financial
statements of the project, including
activities pertaining to each of the signed
credit agreement.
M
OVERALL CONTROL RISK S S
RESIDUAL RISK RATING S S
Staffing
5. A designated Accountant will be hired to assist the project. This Accountant will have
sufficient previous experience and adequate accounting qualification, and will report to the
OECS Secretariat Financial Controller and to the Project Manager. In addition, a team
assistant will be hired to work with both the Accountant and the Procurement Specialist.
Budgeting
6. The project design does not require contribution of counterpart funds. Project annual
budgeting will be based on the initial cost allocation and procurement plan, and will be
74
updated according to the latest information as the implementation will roll-out. The annual
budgets will be prepared by the REGU. It then will be entered into the project accounting
system and used for periodic comparison with actual results as part of the interim reporting.
7. The project budget will be also added to the overall OECS Secretariat budget for
monitoring purposes. In addition, prior to the beginning of the fiscal year, the project
accountant will communicate with the participating countries‘ budget departments to provide
them with all the necessary information.
Accounting System and Records
8. The project will use the Peachtree accounting software to maintain the project accounts.
The software will allow for the tracking of inflows by funding source, and outflows by: (i)
project component; (ii) funding source; (iii) disbursement category. Based on this
information relevant financial reports can be prepared. The accounting system will be
adequately installed, and the Chart of Accounts will be finalized by project effectiveness.
Accounting transactions will be recorded as incurred, and all primary supporting
documentation will be maintained to facilitate ex post reviews and the external annual audits.
Such documents should be maintained for a minimum period of five years.
9. In addition, the project expenditures will be recorded in the main OECS Secretariat
accounting system. While in the beginning this might be done as a one-line entry, it is
expected that as the OECS accounting system will improve, the project expenditures will
follow a full-scale classification.
Internal Controls and Safeguard of Assets
10. The detailed accounting policies and procedures will be set forth in the project-specific
Operational Manual. The Financial Management part of the Manual will reflect the structure
of the implementing unit, administrative arrangements, internal control procedures, including
procedures for authorization of expenditures, maintenance of records, safeguard of assets
(including cash), segregation of duties to avoid conflict of interest, regular reconciliation of
bank account statements, bank signing mandate (to include at least two signatories), regular
reporting to ensure close monitoring of project activities, as well as the flow of funds to
support project activities. The project specific information, i.e. the Chart of Accounts, the
formats of the Reports, etc. will be added as part o f the Annexes to the Manual.
11. Assets acquired by the project will be in the custody of the respective institutional
departments in the respective countries, which will also keep copies of the supporting
documentation. The REGU will maintain supporting records and balances. At least one
annual physical inspection will be undertaken by the REGU staff, preferably with the
participation of the external auditors.
Interim and Annual Reporting
12. The REGU will be responsible for producing the consolidated Interim Unaudited
Financial Reports (IFRs). The IFRs will be submitted to the World Bank on a quarterly
75
basis, no later than 45 days after the end of each reporting period. The IFRs will provide
consolidated information pertaining to the project. As such, it will include each of the
individually signed credit/loan/grant agreements, financing the project implementation. At a
minimum, the IFRs will include a narrative outlining the major project achievements for the
quarter, a statement of the project‘s sources and uses of funds, a detailed analysis of incurred
expenditures, and reconciliations of all project accounts (including the Designated Accounts).
13. Consolidated annual financial statements will include a statement of the project‘s sources
and uses of funds, a detailed analysis of expenditures, a schedule of withdrawal applications
presented during the year, reconciliations of Designated Accounts, Notes to the financial
statements and a management representation letter. These reports will be prepared by the
implementing unit and made available to the auditors after the end of each fiscal year.
External Audit Arrangements
14. Consolidated project financial statements will be audited annually. For that purpose, a
private sector audit firm will be hired on a competitive basis. The annual project financial
statements will be audited in accordance with International Standards on Auditing and the
World Bank‘s guidelines on auditing as stated in the guidelines: Financial Management
Practices in World Bank-financed Investment Operations (November 2005). The auditors'
terms of reference (TORs) will be prepared by the project and cleared by the World Bank
before the engagement of the auditor. The TORs will require the audit of financial
transactions as well as a review of the internal control mechanisms and project‘s compliance
with the requirements of the credit agreement.
15. The annual audit report will be prepared in a format in accordance with ISA and World
Bank guidelines, and will include an opinion on the project‘s consolidated financial
statements, including Designated Accounts Reconciliations, review of the internal controls,
opinion on the project‘s compliance with the terms of the credit/loan agreements, and a
management letter. The project‘s annual audit report will be required to be submitted to the
World Bank for review no later than four months following the end of the fiscal year.
Disbursement Arrangements and Flow of Funds
16. Designated Accounts. World Bank funds will be channeled to the project through
Designated Accounts denominated in US Dollars, which will be opened by the REGU in
commercial banks. Since each participating country will have to sign a separate credit
agreement, individual Designated Accounts will be opened to serve each of these
agreements. Separate withdrawal applications will have to be prepared to draw funds from
each of the participating credits/loans. The Initial Advance to the US Dollar denominated
Designated Accounts managed by the REGU, will be made following the project
effectiveness and submission of the initial withdrawal application. After that, disbursements
will be made according to the Requesting and Reporting on the use of Advance method (as
described in the World Bank Disbursements Handbook), and will be based on withdrawal
applications, SOEs/Records and, whenever necessary, other supporting documentation
prepared and submitted by the REGU. Detailed instructions pertaining to the management of
the Designated Accounts will be specified in the Disbursement Letter.
76
17. Counterpart funds. No counterpart funds will be required for project implementation.
18. Project accounts. The REGU will open and operate local currency (XCD) and US$
project accounts, to finance project expenditures and facilitate payments to suppliers and
service providers. The funds received in the US Dollar Designated Accounts will be
periodically transferred (funds sufficient to cover no more than 30 days worth of
expenditures) to the project accounts. These accounts will be operated in accordance with the
procedures and guidelines set forth in the World Bank‘s Disbursement Handbook.
19. Payments to the suppliers/consultants. As eligible expenditures are incurred, the REGU
will withdraw the amount to be financed by IDA from the US Dollar Designated Accounts in
accordance with the financing percentage specified in the schedule below and agreed in the
credit agreements, and, if the regional activities/contracts are being financed, in accordance
with the individual country‘s share of expenditures as defined in the TORs specifically
prepared for such activities/contracts. These amounts will then be combined in the XCD or
US$ Project account, from which payments will then be made to suppliers/consultants.
20. Direct Payments and Special Commitments. Project expenditures can also be financed by
Direct Payments from the World Bank to service/goods providers. The World Bank can also
issue Special Commitments if required and make payments under these Special
commitments. The Minimum Application Size for Direct Payments and Special
Commitments issuances will be communicated to the REGU in the Disbursement Letter. All
withdrawal applications for Direct Payments and Special Commitment payments will be
supported by full documentation.
21. Disbursements to the recipient by disbursement category (SDR):
Category
Amount of the Credit
Allocated (expressed in
SDR)
Percentage of Expenditures
to be Financed (inclusive of
Taxes)
(1) Goods, works,
consultants' services,
training and operating
costs for the Project
1,500,000 100
TOTAL AMOUNT 1,500,000 100
22. Retroactive financing. Retroactive financing will be provided under the project for up to
10% (i.e., US$230,000) of the project amount to finance eligible expenditures for project
activities incurred after June 2, 2009. The services, civil works, and goods to be eligible for
retroactive financing should be contracted following World Bank’s "Guidelines: Procurement
under IBRD Loans and IDA Credits" dated May 2004, revised October 2006; and
"Guidelines: Selection and Employment of Consultants by World Bank Borrowers" dated
May 2004, revised October 2006, and the provisions stipulated in the Legal Agreements. All
procurement contracts proposed under retroactive financing will be subject to the Bank’s
prior review.
77
Supervision arrangements
23. As part of its project supervision missions, IDA will conduct risk-based financial
management supervisions, at appropriate intervals. These will pay particular attention to: (i)
project accounting and internal control systems; (ii) budgeting and financial planning
arrangements; (iii) review of the Financial Monitoring Reports; (iv) review of audit reports,
including financial statements and remedial actions recommended in the auditor‘s
Management Letters; (v) disbursement management and financial flows, including
counterpart funds, as applicable; and (vi) any incidences of corrupt practices involving
project resources. It is recommended that during the first year of the project implementation
the FM supervision will be undertaken every six months. This frequency will then be
adjusted based on the ongoing project performance.
Financial Management Action Plan
24. The following table reflects actions which need to be fulfilled for project financial
management arrangements to be considered acceptable to the Bank.
# Proposed Action Responsible Party Date of Completion
1 Hire a designated project accountant
and team assistant
OECS Secretariat Project effectiveness
2 Install accounting software and
prepare a project-specific chart of
accounts
OECS Secretariat Project effectiveness
3 Develop a project-specific Operations
manual, including financial
management section
OECS Secretariat Project effectiveness
4 Prepare a sample IFR OECS Secretariat/
World Bank
Project effectiveness
5 Draft the external auditors TORs OECS Secretariat Project effectiveness
6 Open designated and project accounts OECS Secretariat Project effectiveness
78
Annex 8: Procurement Arrangements
OECS E-Government for Regional Integration Project for St. Vincent and the Grenadines
A. General
1. Procurement for the proposed project would be carried out in accordance with the World
Bank‘s "Guidelines: Procurement under IBRD Loans and IDA Credits" dated May 2004,
revised October 2006, and "Guidelines: Selection and Employment of Consultants by World
Bank Borrowers" dated May 2004, revised October 2006, and the provisions stipulated in the
Legal Agreements. The various items under different expenditure categories are described in
general below. For each contract to be financed by the Loans/Credits, the different
procurement methods or consultant selection methods, the need for pre-qualification,
estimated costs, prior review requirements, and time frame are agreed between the Borrower
and the Bank in the Procurement Plan. The Procurement Plan will be updated at least
annually or as required to reflect the actual project implementation needs and improvements
in institutional capacity.
2. Procurement of Works: Although not expected, works procured under this project could
include: minor refurbishing of existing server rooms to accommodate ICT equipment and any
ancillary electrical or air conditioning installation. Should need be, the procurement will be
done using the Bank‘s standard bidding documents (SBD) for all international competitive
bidding (ICB) and national SBD agreed with the Bank for other procurement methods.
3. Procurement of Goods: Goods procured under this project would include information
and communications technology hardware and software, office furniture and equipment. The
procurement will be carried out using the Bank‘s standard bidding documents (SBD) for all
ICB and national SBD agreed with the Bank for other procurement methods.
4. Procurement under Established Private or Commercial Practices: Although this type
of procurement method may not be used in the project, Public-Private-Partnerships in e-
government may be executed following this method.
5. Selection of Consultants: Consulting services will be required, inter alia, for technical
assistance, financial and technical audits, specialized advisory services, including software
development, and capacity building. Where teams of consultants are not required, individual
consultants will be hired to provide specialized advisory services to support project
implementation and monitoring
6. Operating Costs: Costs of project management and monitoring, including related
expenditures for the regional project technical committee, regional travel, office supplies,
office rental, utilities, communication costs etc. will be financed by the project and procured
using the OECS administrative procedures which were reviewed and found acceptable to the
Bank.
7. Training: The project will finance all costs associated with training, study tours, and
workshops required for the implementation of the project.
79
8. Project Operational Manual. The procurement procedures and SBDs to be used for
each procurement method, as well as model contracts for works and goods procured, will be
presented in the Project Operational Manual.
B. Assessment of the agency’s capacity to implement procurement
9. Procurement activities will be carried out by the Regional E-Government Unit (REGU) to
be created within the OECS Secretariat. This unit will consist of a Project Manager, a
Procurement Specialist and a Project Accountant, as well as one local specialist per
participating country who will be located within existing ICT or e-government units at the
national level. The Procurement Specialist to be hired will have prior experience in
managing and/or implementing World Bank financed projects or other donor funded projects.
10. An assessment of the capacity of the Implementing Agency (OECS Secretariat) to
implement procurement actions for the project was carried out during pre-appraisal and
appraisal missions by a Bank Sr. Procurement Specialist. The assessment reviewed the
organizational structure for implementing the project and the interaction between the project
staff responsible for procurement and the OECS Secretariat‘s administration and finance
staff.
11. The key issues and risks concerning procurement for implementation of the project have
been identified as follows: (a) the REGU within the OECS Secretariat will only be
established and staffed after the project becomes effective; (b) the only procurement staff
within the OECS Secretariat are located in the highly specialized Pharmaceutical
Procurement Services (PPS) office, and are not available to implement this project; (c) the
PPS, as a specialized agency responsible for the procurement of 700 medical products,
normally follows a restricted international tendering process and its staff are not familiar with
World Bank procurement procedures; (d) the minimal prior experience of ICT related
projects and e-government PPPs within the OECS Secretariat, participating OECS countries
and key stakeholders may result in slow project implementation due to the complexity of ICT
projects and PPP contracts, in particular with regard to preparation of bidding documents,
evaluation of bids and contract negotiations; and (e) several issues related to the limited
procurement capacity throughout the OECS countries generate risks for Bank-financed
projects in the OECS. These issues include, among others, a lack of procurement planning,
inappropriate qualification and evaluation criteria, limited capacity for contract
administration, and late payments to suppliers and contractors. In consideration of the
present capabilities within the implementing agency, and the fact that the REGU has not yet
been established and staffed, the overall project risk for procurement is HIGH. Corrective
measures to be agreed upon are identified in the Action Plan below.
Actions Proposed Responsibility Proposed Completion
Date
1. Submission to the Bank of a procurement plan for the first
18 months of the project.
OECS Secretariat By Negotiations
2. Establishment of a Regional E-Government Unit (REGU)
and recruitment of a qualified Procurement Specialist with
prior experience in implementing World Bank financed
projects and/or other donor funded projects.
OECS Secretariat By Effectiveness
80
Actions Proposed Responsibility Proposed Completion
Date
3. Key project staff within the REGU to be trained in World
Bank procurement procedures.
World Bank Project Launch and
Supervision Missions
4. Prepare a project operational manual. The manual should
contain a section on procurement arrangements under the
project.
OECS Secretariat By Effectiveness
5. Establish of a procurement filing system satisfactory to the
Bank.
OECS Secretariat During
Implementation
C. Procurement Plan
12. The Borrower, at appraisal, developed a procurement plan for project implementation
which provides the basis for the procurement methods. This plan has been agreed between
the Borrower and the Project Team on August 19, 2009 and is available at the OECS
Secretariat‘s offices. It will also be available in the project‘s database and on the Bank‘s
external website. The Procurement Plan will be updated in agreement with the Project Team
annually or as required to reflect the actual project implementation needs and improvements
in institutional capacity.
D. Frequency of Procurement Supervision
13. In addition to the prior review supervision to be carried out from Bank offices, the
capacity assessment of the Implementing Agency has recommended a project launch
workshop and two supervision missions per year to visit the field to carry out post review of
procurement actions.
E. Details of the Procurement Arrangements Involving International Competition
1. Goods and Works
(a) List of contract packages to be procured following ICB and direct contracting:
1 2 3 4 5 6 7 8
Ref. No.
Contract
(Description)
Est.
Cost
mUS$
Proc.
Method
P-Q
Domestic
Preference
(yes/no)
Review
by Bank
(Prior /
Post)
Expected
Bid-
Opening
Date
1.4c-G/2010 Equipment and software for
implementation support
0.200 ICB No No Prior 04-22-11
1.4d-G/2009 Office equipment and operating cost
assistance to national e-Gov units
0.200 ICB No No Prior 06-11-10
1.5b-G/2009 Development and Implementation of
system
0.400 ICB No No Prior 08-28-10
2.1a-G/2010 Hardware and software for sub-
component implementation
1.000 ICB No No Prior 04-08-11
2.1c-G/2009 Upgrade of HR, budget, development
of interfaces and web-based public
0.538 ICB No No Prior 03-26-10
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information systems
2.2b-G/2009 Design, development and
implementation of e-filing system
0.500 ICB No No Prior 04-05-10
2.2d-G/2010 Tax system maintenance contract 0.200 ICB No No Prior 04-09-11
2.3b-G/2009 Regional Customs Information
Network and Customs system
upgrades including electronic filing
module and interface with budget and
tax
0.330 ICB No No Prior 03-19-10
2.4b-G/2009 Development of regional e-
procurement platform and
transactional system for competitive
tendering
0.280 ICB No No Prior 03-29-10
(b) All ICB contracts and all direct contracting will be subject to prior review by the Bank.
2. Consulting Services
(a) List of consulting assignments with short-list of international firms.
1 2 3 4 5 6
Ref. No.
Description of Assignment
Estimated
Cost
mUS$
Selection
Method
Review
by Bank
(Prior /
Post)
Expected
Proposals
Submission
Date
1.2a-C/2008 Gap analysis and implementation support for
harmonized legal and regulatory framework
0.100 QCBS Prior 10-16-09
1.3a-C/2008 Standards and architecture assessment and
definition
0.100 QCBS Prior 10-30-09
1.3b-C/2009 Framework for total cost of ownership analysis and
optimization
0.100 QCBS Prior 03-22-10
1.4a-C/2008 Strategic institutional design, business plan,
implementation action plan and Start-up
Implementation support for CoE
0.180 QCBS Prior 11-16-09
1.5a-C/2008 Needs assessment and design for national ID system 0.140 QCBS Prior 12-02-09
3.1g-C/2008 Audit Firm 0.090 LCS Prior 10-02-10
(b) Consultancy services estimated to cost above US$100,000 per contract and all single source
selection of consultants (firms) will be subject to prior review by the Bank.
(c) Short lists composed entirely of national consultants: Short lists of consultants for services
estimated to cost less than US$100,000 equivalent per contract may be composed entirely of
national consultants in accordance with the provisions of paragraph 2.7 of the Consultant
Guidelines.
F. Thresholds for Procurement Methods and Prior Review
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1. Recommended thresholds for use of the procurement methods specified in the legal
agreement, and for Bank prior review of procurement actions, are identified in the table
below. Specific contracts which are subject to prior review are detailed in the Procurement
Plan agreed at negotiations.
Description Contract Value
(Threshold)
US$ thousands
Procurement
Method
Contracts Subject to
Prior Review
1. Works >1,500 ICB All
150-1,500 NCB All
<150 Shopping None
2. Goods >150 ICB All
25-150 NCB All
<25 Shopping None
Regardless of value Direct Contracting All
3. Consulting Services
-3.A Firms >100 QCBS,QBS,FBS,LCS All
<100 QCBS,QBS,FBS,LCS,
and CQS
None
Regardless of value Single Source All
-3.B Individuals Regardless of value Comparison of 3 CVs
in accordance with
Chapter V of the
Guidelines
None
Note: ICB = International Competitive Bidding NCB = National Competitive Bidding
QCBS = Quality- and Cost-Based Selection QBS = Quality-Based Selection
FBS = Fixed Budget Selection LCS = Least-Cost Selection
CQS = Selection Based on Consultants' Qualifications
SSS = Single Source Selection
TOR = Terms of Reference
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Annex 9: Economic and Financial Analysis
OECS E-Government for Regional Integration Project for St. Vincent and the Grenadines
1. A calculation of the NPV = US$ million; ERR = %; FRR = % for the program as a whole
is not pertinent. The Economic and Financial Analysis will focus on the overall economic
relevance of the program for the region as well as a selected cost benefit analysis.
General Analysis
2. Economic and financial analyses of Technical Assistance Operations focus on the
broader economic impact of the activity rather than attempting to calculate a rate of return.
The causality of the technical assistance on economic indicators though strong, is subject to
many externalities that can positively and negatively impact the outcome. However, in this
particular case in addition to the economic impact, the activity is creating necessary
conditions for broader economic reforms.
3. The proposed first phase of the program will have a wide range of regional implications
and benefits. While they are not being directly attributable to the program, would not be
possible to achieve without it. The majority of the program is providing financing for
technical assistance in selected OECS member countries. Such technical assistance primarily
has an indirect effect and creates only limited economic savings. The program focuses on
two areas: (i) creating an enabling environment for major reforms and regional cohesion
(technical assistance), and (ii) one activity with direct economic savings (investment).
4. In addition the OECS EGRIP Program is a two- phased Regional activity. Thus, in
addition to the time dimension of traditional programmatic operations, the economic analysis
has to take into consideration the spatial dimension as well.
5. This analysis will focus on the first phase of the operation and only on the countries
participating in the initial phase: Dominica, Grenada, St. Lucia, and St. Vincent.
6. The economic effect of the proposed operation will be analyzed in two separate
categories: The overall Regional implications, the E-Procurement Component with its related
savings.
Regional Impact (Technical Assistance)
7. The overall Economic and Financial impact is far greater than the economic analysis of
the investment component will be able to show. Both, the World Bank CAS, as well as the
IMF during the Article 4 Consultations reiterated that a common OECS Economy with free
labor, goods and service migration, would be key to economic stability, growth and
employment in the region. The OECS has agreed to take steps to create a joint political and
economic union.
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8. The creation of such a single economic and financial space, with joint diplomatic
representation, provision of security services, tax and customs administration, utilities,
transport, health and education, requires a large number of supporting activities to realize it.
9. The IMF supports an Economic Union, and has urged the authorities to accelerate the
simplification and harmonization of legislative and regulatory framework and the regional
level.
10. The Economic and Fiscal Union will have an impact on a number of areas which are
supported through this Program:
Fiscal consolidation
11. A combination of a series of uncoordinated income tax reforms and a surge in capital
spending have created a deteriorating fiscal imbalance in the ECCU. The implementation of a
joint VAT requires a joint system to monitor and collect the VAT across the ECCU and
redistribute the revenues. Component 2.2 Tax Administration System will facilitate this
process in a centralized and thus cost-effective way. A regional system will prevent a
multiplication of cost to establish local systems.
Expenditure Management and Inflation Targeting
12. The Public Financial Management System of Component 2.1 is the backbone for
information sharing of public revenues and expenditures. The creation of a uniform standards
and systems will allow for a more accurate reporting, and will limit unexpected expenditures.
This will have a positive effect on inflation management and overall deficits.
Common Labor Market
13. The project is supporting a National Identification System in Component 1.5. This system
is key for an open labor market, and will improve the business-enabling environment due to
the simplified processes. It is a first and major step to regional political integration, and will
advance economic integration. Overall this will increase investment, and reduce transaction
costs.
Customs and Free Trade Area
14. The introduction of a Regional Customs Information System of Component 2.3 will
reduce transactions cost, increase revenues, and reduce operational costs. A centralized
database for customs will allow for unified guidelines and simplify imports and exports of
goods.
Employment
15. Though the Regional Center of Excellence or similar structure of Component 1.4 itself
will not employ a large number of people, it its capacity building mandate will have a
positive effect both in governments and in the private sector. In training the trainers, the
center will reach out and create local capacity in the member countries. This activity has a
great potential to become a growth engine, if the center will include private sector training.
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Private Sector Development
16. Unified Legal and Regulatory Standards of Component 1.2 reduce transaction cost within
the private sector across countries. With a common legal environment, the private sector can
more easily take advantage of economies of scale as compliance is consolidated.
17. Market entry costs are not artificially increased due to different rules and procedures, and
thus the market base is larger.
VAT and Customs Synergies
18. The inter-regional trade accounts to around 30 percent of total OECS trade. With the
establishment of an OECS common market and the introduction of a common VAT, the
relevance of an integrated VAT / Customs system is essential to assess, collect and distribute
the appropriate revenues resulting form the VAT. The main risk to VAT fraud is the
misdeclaration of imports and exports and the subsequently unjustified refunds. Thus, an
integrated Customs system will greatly improve the VAT assessment.
E-Procurement Component (Investment)
19. None of the countries visited has a fully functioning electronic public procurement
system in place. All the countries are in the process of improving their procurement legal
framework. World Bank assistance in this area would facilitate the enhancement of this
framework and would ultimately use international best practices to help build the institutional
and technical capacity needed.
20. One example of the benefits to the E-procurement systems of the OECS that the EGRIP
would provide is in the area of pharmaceutical procurement services. An e-government
program would optimize the healthcare services to the OECS through facilitating the pooled
procurement and management of pharmaceuticals and medical products.
21. In 2006, over 12 million XCD (US$4.4 million) was spent on the annual purchase of 700
different kinds of products including pharmaceuticals, medical supplies, contraceptives, x-ray
supplies and more. A study prepared for a recent WHO Expert meeting on Regional Pooled
Procurement in the OECS concluded that there was average cost-savings of 37% from the
pooled procurement for 25 Class ―A‖ items between 1998 and 2002.
22. Pooled procurement provides coordinated informed buying, and centralized tendering and
procurement. Annual spending on goods and services in the participating countries is about
480 million XCD in 2007 (US$ 178 million). Considering the substantial average savings of
37% through the Pharmaceutical Procurement, it is safe to assume that the overall savings
will be lower but substantial. Experience from Germany, Korea, and Romania show a
common savings potential of 10% to 30%, and a reduction in transaction cost of 25% to 90%.
Certainly, not all procurement can be done through the new system as the majority of
services would be provided locally, however if only 50% of the expenditures would be
eligible this still would amount to savings between US$ 8.9 million and US$ 26.9 million per
year. At a total cost of US$ 1 million, it can be expected that the investment will be
amortized in the first year. With respect to the whole project, the total costs are expected to
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be US$ 10 million, and it can be expected that the amortization would be between one and
two years.
23. This project would facilitate this and provide the following elements that would be
critical for success:
Credible Procurement Agency
Key Common Elements such as Culture, language, ethnicity, and Political systems
Gradual process of country membership
Admin and Political Commitment
Harmonization of Drug Policy
Quality Assurance
Monitoring and Evaluation
24. Pooled procurement mechanisms and improved supply management practices will result
in the reduction in unit cost and optimize and services to the OECS. The EGRIP would
create an electronic procurement system and make public transactions information available
on-line and readily accessible which would increase the transparency and efficiency of
government procurement. Such a system could be developed and installed for all OECS
countries, allowing national access and authorization codes so that each country can handle
independently through their Tender Board regionally different purchases classified by
mutually agreed thresholds.
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Annex 10: Safeguard Policy Issues
OECS E-Government for Regional Integration Project for St. Vincent and the Grenadines
Social
1. The Project will have many positive social impacts; no negative impacts are expected. The
Project will have many positive social impacts, as indicated in other parts of this document, mostly
related to improved delivery of government services and is not expected to have any negative social
impacts.
Environment
2. No environmental impacts are expected from this Project. No major works are included in the
project design. The increased use of ICT in the delivery of government services on-line is likely to
reduce the need for citizens to interact with government offices face to face, hence reducing the use of
transportation services, which will no doubt have a positive environmental impact.
Safeguard policies
3. The proposed category is C.
Safeguard Policies Triggered by the Project Yes No
Environmental Assessment (OP/BP/GP 4.01) [ ] [x]
Natural Habitats (OP/BP 4.04) [ ] [x]
Pest Management (OP 4.09) [ ] [x]
Cultural Property (OPN 11.03, being revised as OP 4.11) [ ] [x]
Involuntary Resettlement (OP/BP 4.12) [ ] [x]
Indigenous Peoples (OD 4.20, being revised as OP 4.10) [ ] [x]
Forests (OP/BP 4.36) [ ] [x]
Safety of Dams (OP/BP 4.37) [ ] [x]
Projects in Disputed Areas (OP/BP/GP 7.60)* [ ] [x]
Projects on International Waterways (OP/BP/GP 7.50) [ ] [x]
4. The physical components of this Project will be limited to the installation of ICT hardware in
existing buildings, and are not expected to require any major works. Minor works may be required
within existing buildings for internal refurbishing of facilities, such as server rooms, to accommodate
ICT equipment and any ancillary electrical or air conditioning installations. The project is therefore
assigned to environmental category C under OP 4.01.
Policy Exceptions and Readiness
5. The Program does not require any exception to the Bank policies.
* By supporting the proposed project, the Bank does not intend to prejudice the final determination of the parties' claims on the
disputed areas.
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Annex 11: Project Preparation and Supervision
OECS E-Government for Regional Integration Project for St. Vincent and the Grenadines
1. The table below summarizes the project preparation and implementation schedule.
Planned Actual
PCN review May 2, 2007
Initial PID to PIC May 2, 2007
Initial ISDS to PIC May 2, 2007
QER Dec. 10, 2007
Appraisal Mar. 17, 2008 Mar. 17, 2008 and Apr. 27, 2009
Negotiations August 18, 2009 Aug. 18, 2009 and Oct. 22, 2009
Board/RVP approval December 9, 2009
Planned date of effectiveness Jan. 15, 2010
Planned date of mid-term review September 1, 2011
Planned closing date August 31, 2013
2. Key institutions responsible for preparation of the project include:
OECS Secretariat
Dominica: Reform Management Unit, Establishment Department
Grenada: CIMA and HR Department, Prime Minister‘s Office
St. Lucia: E-Government Unit, Ministry of Public Service
St. Vincent: Ministry of Telecommunications, Science, Technology and Industry
3. Bank staff and consultants who worked on the project include:
Name Title/Role Unit
Juan Navas-Sabater Task Team Leader CITPO
Roberto Panzardi Co-Task Team Leader LCSPS
Kashmira Daruwalla Sr. Procurement Specialist CITPO
Svetlana Klimenko FM Specialist LCSFM
Angela Nelson Voice Secondee LCSPS/CITPO
Anat Lewin Operations Officer CITPO
Oleg Petrov Consultant CITPO
Mikhail Bunchuk Consultant CITPO
Carmen Minoso Senior Operations Officer LCSPS
Alan Carroll Country Operations Adviser LCC3C
Rolande Pryce Communications Officer LCC3C
Edith Ruguru Mwenda Country Lawyer LEGLA
Pilar Gonzalez Country Lawyer LEGLA
Miguel-Santiago Oliveira Finance Officer LOAFC
Randeep Sudan Peer Reviewer CITPO
Kathy Lalazarian Peer Reviewer ECSPE
Pedro Arizti Peer Reviewer LCSPS
Jannina Flores Ramirez Program Assistant CITPO
Sandra Alborta Program Assistant LCSPS
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4. Bank funds expended to date on project preparation:
Bank resources: US$ 35,000
5. Estimated Supervision costs:
Estimated annual supervision cost (program level): US$ 128,000
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Annex 12: Documents in the Project File
OECS E-Government for Regional Integration Project for St. Vincent and the Grenadines
1. OECS: Towards a New Agenda for Growth, World Bank
2. Doing Business 2007: OECS, World Bank
3. OECS Fiduciary Policy Note, World Bank, 2007
4. OECS Institutional and Organizational Capacity Review of the Core Public Sector
(IOCR)
5. Market Research Surveys, Ltd., OECS Citizen Survey, 2005
6. Improving competitiveness and increasing economic diversification in the Caribbean: the
role of ICT, infoDev, 2005
7. CARICOM Connectivity Agenda, 2003
8. Action-Oriented E-Government Strategy for Countries of the Caribbean Region 2004-
2007
9. Assessment of Current Operation of SIGTAS and a Diagnosis of Short-term Needs,
Philippe Dadour, September 2007
10. Advisory Services for Diagnostic Study and Action Plan – e-government in the OECS
Region, Theodore Gering, June 2007
11. Consultant reports by Cletus Bertin
12. Letters from Prime Ministers of Grenada (June 28, 2007), St. Lucia (Dec. 24, 2007),
Dominica (Jan. 10, 2008) and St. Vincent (Jan. 29 2008)
13. Additional letter from the Prime Minister of St. Vincent and the Grenadines nominating
the negotiating team (April 1, 2009).
14. Letter from the Ministry of Telecommunications, Science, Technology and Industry of
St. Vincent and the Grenadines confirming Cabinet approval and funding requirements (May
14, 2009).
15. Minutes: Project Concept Note Meeting, May 2, 2007; Quality Enhancement Review,
Dec. 11, 2007; Program Decision Meeting, Mar. 10, 2008; APL1 Negotiations, April 16,
2008; APL2 Decision Meeting, May 28, 2009; APL2 Negotiations, October 22, 2009.
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Annex 13: Statement of Loans and Credits
OECS E-Government for Regional Integration Project for St. Vincent and the Grenadines
Original Amount in US$ Millions
Difference between
expected and actual disbursements
Project ID FY Purpose IBRD IDA SF GEF Cancel. Undisb. Orig. Frm. Rev‘d
P100635 2008 OECS E-Gov for Regional Integration 0.00 7.20 0.00 0.00 0.00 6.95 0.10 0.00
P094539 2007 OECS-Catastrophe Insurance 0.00 14.20 0.00 0.00 0.00 2.02 1.42 0.00
P088448 2005 OECS-Telecomm & ICT Development Pro 1.36 1.35 0.00 0.00 0.00 1.35 1.15 0.00
P076799 2005 HIV/AIDS Prevention and Control 3.50 1.87 1.87 0.00 0.00 3.39 3.08 0.00
P086664 2004 OECS Education Development Project 3.10 3.43 0.00 0.00 0.00 4.34 4.03 0.00
Total: 7.96 28.05 1.87 0.00 0.00 18.05 9.78 0.00
OECS COUNTRIES
STATEMENT OF IFC‘s
Held and Disbursed Portfolio
In Millions of US Dollars
Committed Disbursed
IFC IFC
FY Approval Company Loan Equity Quasi Partic. Loan Equity Quasi Partic.
Total portfolio: 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Approvals Pending Commitment
FY Approval Company Loan Equity Quasi Partic.
Total pending commitment: 0.00 0.00 0.00 0.00
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Annex 14: Country at a Glance
OECS E-Government for Regional Integration Project for St. Vincent and the Grenadines
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Annex 15: Map IBRD No. 33488
