Document of

The World Bank

FOR OFFICIAL USE ONLY

Report No: 74891-MA

PROJECT APPRAISAL DOCUMENT

ON A

PROPOSED GRANT FROM THE MENA TRANSITION FUND

IN THE AMOUNT OF US$4 MILLION

TO THE

KINGDOM OF MOROCCO

FOR THE

NEW GOVERNANCE FRAMEWORK IMPLEMENTATION SUPPORT PROJECT

September 30, 2013

This document is being made publicly available prior to Board consideration. This does not imply a

presumed outcome. This document may be updated following Board consideration and the updated document

will be made publicly available in accordance with the Bank’s policy on Access to Information.

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KINGDOM OF MOROCCO - GOVERNMENT FISCAL YEAR

January 1st -

December 31st

CURRENCY EQUIVALENTS

US$1 = 8.4077 Moroccan Dirham (MAD)

(Exchange rate effective as of August 30, 2013)

LIST OF ABBREVIATIONS AND ACRONYMS

AAA Analytical and Advisory Activities

AfDB African Development Bank

CMD Modulated expenditure control

CPS-PR Country Partnership Strategy- Progress

Report

CSO Civil Society Organization

DPL Development Policy Loan

EU European Union

FMS Financial Management Specialist

GDP Gross domestic product

GFS Government Financial Statistics

GID Integrated Financial Management

Information System (Gestion Intégrée de la

Dépense)

IBRD International Bank for Reconstruction and

Development

ICPC Anti-Corruption Agency (Instance Centrale

de Prévention de la Corruption)

IGF Inspectorate General of Finance (Inspection

Générale des Finances)

ISA Implementation Support Agency

LIBOR London Inter-Bank Offered Rate

LG Local Governments

M&E Monitoring and evaluation

MAD Moroccan Dirham

MAGG Ministry of General Affairs and

Governance (Ministère des Affaires

Générales et de la Gouvernance)

MCRPCS Ministry in Charge of Relations with

Parlement & Civil Society

MEF Ministry of Economy and Finance

MENA Middle East and North Africa

MICNT Ministry of Industry, Trade and New

Technologies (Ministère de l'Industrie, du

Commerce et des Nouvelles Technologies)

MTEF Medium-Term Expenditure Framework

OBL Organic Budget Law

OECD Organization for Economic Co-operation

and Development

PC Project Coordinator

PD Project Document

PEFA Public Expenditure and Financial

Accountability

PFM Public Financial Management

PPD Public Procurement Decree

PS Procurement Specialist

PSIA Project Social Impact Assessment

SGG Secretary General of the Government

TA Technical assistance

TGR General Treasurer of the Kingdom

(Trésorerie Générale du Royaume)

Regional Vice President: Inger Andersen

Country Director: Neil Simon M. Gray

Sector Director:

Sector Manager:

Bernard Funck a.i.

Guenter Heidenhof

Task Team Leader: Fabian Seiderer

ii

PAD DATA SHEET .

Kingdom of Morocco

New Governance Framework Implementation Support Project (P143979) .

PROJECT APPRAISAL DOCUMENT

.

Basic Information

Date: September 30, 2013 Sectors: General Public Administration Sector (50%); Central

government administration (30%); Sub-national government administration (20%)

Country Director: Neil Simon M. Gray Themes: Administrative and civil service reform (40%), Public

expenditure, financial management and procurement (40%);

Decentralization (20%) Sector Manager/Director: Guenter Heidenhof/Manuela V. Ferro

Project ID: P143979 EA Category: C - Not Required

Lending Instrument: Grant from the MENA

Transition Fund

Team Leader(s): Fabian Seiderer

Joint IFC: No

Beneficiary : Government of Morocco

Client : Ministry of Governance and General Affairs

Beneficiaries: Ministry of Economy and Finance, Ministry in charge of Relations with Parliament and Civil Society, Ministry of

Interior

Implementing Agency: Ministry of Governance and General Affairs

Contact: Mr Jamal Echiguer Title: Project Director

Telephone No.: 0537 68 73 29 Email: echiguer@affaires-generales.gov.ma

Agencies responsible for Component I : Ministry in charge of d with Relations with Parliament and Civil Society and Ministry

of Governance and General Affairs

Contact: Ms. Fatima Zahra Ben

Hussein

Title: Director of Relations with Civil Society

Telephone No.: 212610845306 Email:

Agency responsible for component II: Ministry of Economy and Finance

Contact: Mr. Fouzi Lekjaa Title: Director of Budget

Telephone No.: 212537677267 Email: lekjaa@db.finances.gov.ma

Agency responsible for component III: Ministry of Interior

Contact: Mr. Abdelrhani Guezzar Title: Director of Local Finance

Telephone No.: 212537215865 Email: aguezzar@interior.gov.ma

Project Implementation Period: Start Date: 01-Sep-2013 End Date: 31-March-2018

Expected Effectiveness Date: 120 days after the signing of the grant agreement

Expected Closing Date: 31-March-2018

iii

Project Financing Data(US$M)

[ ] Loan [ X ] Grant [ ] Other

[ ] Credit [ ] Guarantee

For Loans/Credits/Others

Total Project Cost (US$M): 4

Total Bank Financing (MENA Transition Fund) (US$M): 4

Financing Source Amount(US$M)

Borrower 0

International Bank for Reconstruction and Development (MENA Transition Fund) 4

Total 4

Expected Disbursements (in USD Million)

Fiscal Year 2013 2014 2015 2016 2017 2018

Annual 0.2 0.5 1 1 1.0 0.3

Cumulative 0.7 1.7 2.7 3.7 4

Project Development Objective(s)

The Project Development Objective is to contribute to the strengthening of government transparency, accountability and public participation by

supporting (i) the development and implementation of a public consultation policy and a law on petitions; (ii) the improvement of access to fiscal

information and enhancement of performance orientation in budget management; and, (iii) the strengthening of fiscal decentralization.

Components

Component Name Cost (USD Millions)

Component 1: Strengthening Public Participation 0.73

Component 2: Enhancing Efficiency and Accountability in the use of Public Funds 1.824

Component 3: Advancing Regionalization 0.769

: Project Management, communication and contingencies 0.677

Compliance

Policy

Does the project depart from the CAS in content or in other significant respects? Yes [ ] No [ X ]

Does the project require any waivers of Bank policies? Yes [ ] No [ X ]

Have these been approved by Bank management? Yes [ ] No [ X ]

Is approval for any policy waiver sought from the Board? Yes [ ] No [ X ]

Does the project meet the Regional criteria for readiness for implementation? Yes [ X ] No [ ]

Safeguard Policies Triggered by the Project Yes No

Environmental Assessment OP/BP 4.01 X

Natural Habitats OP/BP 4.04 X

Forests OP/BP 4.36 X

Pest Management OP 4.09 X

Physical Cultural Resources OP/BP 4.11 X

Indigenous Peoples OP/BP 4.10 X

iv

Involuntary Resettlement OP/BP 4.12 X

Safety of Dams OP/BP 4.37 X

Projects on International Waterways OP/BP 7.50 X

Projects in Disputed Areas OP/BP 7.60 X

Legal Covenants

Name Recurrent Due Date Frequency

Description of Covenant

Conditions

Name Type

Article V 4.01 Effectiveness

Description of Condition

The Recipient has recruited a financial management specialist, a procurement specialist and a Project coordinator for the PMU, all in compliance

with the provisions of Section III.C of Schedule 2 of the Grant Agreement.

Team Composition

Bank Staff

Name Title Specialization Unit

Fabian Seiderer Senior Public Sector

Management Specialist

Team Lead MNSPS

Guenter Heidenhof Sector Manager Governance MNSPS

Jean-Charles De Daruvar Senior Counsel Legal LEGEM

Hassine Hedda Finance Officer Finance CTRLA

Lida Bteddini Research Analyst Public consultations MNSPS

Khalid El Maasnaoui Senior economist Fiscal decentralization MNSPR

David A. Bontempo Operations Analyst Operations MNSPS

H. Mavoarisoa Ranaivoarivelo Program Assistant Program Assistant MNSPS

Salim Benouniche Lead Procurement Specialist Procurement MNAPR

Abdoulaye Keita Senior Procurement Specialist Procurement MNAPR

Lamyae Hanafi Senior Financial Management

Specialist

Financial Management MNAFM

Laila Moudden Operations Assistant Financial Management MNAFM

Sanaa Bouchikhi Program Assistant Program Assistant MNCMA

Non Bank Staff

Name Title Office Phone City

Rene Cipriani Consultant - operations France

Locations

Country First Administrative

Division

Location Planned Actual Comments

v

Morocco Rabat Rabat X

Morocco

Morocco

The project was prepared by an IBRD team consisting of: Fabian Seiderer (Team Leader, MNSPS),

Lida Bteddini (MNSPS), Khalid El Massnaoui (MNSED), Salim Benouniche, Abdoulaye Keita, and

Laurence Folliot (MNAPC), Lamyae Hanafi Benzakour (MNAFM), Ibtissam Alaoui (MNAEX),

David Bontempo (MNSPS), Sanaa Bouchikhi (MNCMA) and Mavo Ranaivoarivelo (MNSPR);

Tracy Hart (MNSEN) provided key input for the preparation of this operation. Guenter Heidenhof

(Sector Manager, MNSPS), and Joelle Businger (Country Program Coordinator, MNCA1) provided

feedback and comments on a first draft of the Program Document. The legal advisers for this

operation are Jean Charles De Daruvar and Alexandra Sperling (LEGAM). Peer reviewers are Ivor

Beazley (Lead public sector specialist, ECSP4), and Adrian Fozzard (Lead public sector specialist,

PRMPS).

Jean Pierre Chauffour (Lead country economist, MNSED), Yolanda Tayler (Manager, MNAPC) and

the Transition Fund Coordination Unit provided key input and guidance at various stages of the

project preparation. The team worked under the supervision and guidance of Simon Gray (Maghreb

Country Director), Manuela Ferro (Sector Director, MNSPR), and Guenter Heidenhof (Sector

Manager, MNSPS). Special thanks are due to the Ministry of General Affairs and Governance, the

Ministry of Economy and Finance, The Ministry in charge of relations with Parliament and Civil

Society and the Ministry of Interior, for their cooperation.

vi

THE KINGDOM OF MOROCCO

NEW GOVERNANCE FRAMEWORK IMPLEMENTATION SUPPORT PROJECT

Table of contents

I. Strategic Context ..................................................................................................................... 1

A. Country Context ........................................................................................................... 1

B. Sectoral and Institutional Context ................................................................................ 2

C. Higher Level Objectives to which the Project Contributes .......................................... 5

II. Project Development Objectives............................................................................................. 6

PDO ......................................................................................................................................... 6

i. Project Beneficiaries. ....................................................................................................... 6

ii. PDO level results indicators. ........................................................................................... 7

III. Project Description............................................................................................................... 8

A. Project components....................................................................................................... 8

B. Project Financing ........................................................................................................ 13

i. Financing Instrument...................................................................................................... 13

ii. Project Cost and Financing............................................................................................. 13

IV. Implementation .................................................................................................................. 15

A. Institutional and Implementation Arrangements ........................................................ 15

B. Results Monitoring and Evaluation ............................................................................ 16

C. Sustainability .............................................................................................................. 16

V. Key Risks and Mitigation Measures ..................................................................................... 17

A. Risk Ratings Summary ............................................................................................... 17

B. Description.................................................................................................................. 17

VI. Appraisal Summary ........................................................................................................... 19

A. Economic and Financial Analysis .............................................................................. 19

B. Technical .................................................................................................................... 20

C. Financial Management ............................................................................................... 20

D. Procurement ................................................................................................................ 21

E. Social (including safeguards) ..................................................................................... 22

F. Environment (including safeguards) .......................................................................... 23

Annex 1: Results Framework and Monitoring............................................................................. 24

Annex 2: Detailed Project Description ........................................................................................ 27

vii

Annex 3: Implementation Arrangements ..................................................................................... 35

Annex 4: Operational Risk Assessment Framework (ORAF) ...................................................... 53

Annex 5: Implementation Support Plan ........................................................................................ 56

1

I. Strategic Context

A. Country Context

1. Morocco is a middle-income country with a population of 32 million and a per

capita income of US$ 2,951 (2012). Over the past decade, Morocco has made progress

towards achieving its millennium development goals (MDG) and has sustained a growth

rate of 4.6 percent and a stable macroeconomic framework despite adverse external

shocks. Extreme poverty has been reduced but the country still faces a wide-range of

socioeconomic challenges. Poverty and vulnerability remain high, with around 17

percent of the population living just above the poverty line. Likewise, and despite

substantial social spending, inequality and deprivation remain high, as evidenced by the

high and steady Gini coefficient (0.41) and the very high rate of adult illiteracy (30

percent for men and 66 percent for women). In 2012, more than 22% of public

expenditures (except public debt service) have been allocated to social sectors to finance

public services and investments. A further 15% has been allocated to direct food and fuel

subsidies. Nevertheless, socioeconomic disparities and challenges of access to basic

public services persist, as evidenced by the fact that less than half of the first graders

complete primary schooling in rural areas. In January 2012, the Government responded to

these challenges by announcing an ambitious plan to boost the growth rate to 5.5 percent,

lower unemployment to 8 percent, and improve the reach and quality of government

services. These development challenges highlight weaknesses in the effectiveness of

public policies and strengthen the motivation to push forward reforms promoting

citizen’s voice, the performance of public expenditures and government accountability

both at the central and local level.

2. Development challenges have fueled a sense of inequality and disenfranchisement

among large segments of the population, as expressed in recurrent demonstrations. These challenges also raise questions on the effectiveness of past development policies

and the issue of equal access to public services, now a new constitutional right. Although

the protests in Morocco were more peaceful than in other countries in the region, the

demands for reform were very similar, focusing largely on political change, a curbing of

corruption, and a more inclusive development process. Limited voice and participation in

the design and implementation of public policies is considered an important constraint.

More specifically, limited transparency in the use of public resources, both at the central

and local level, has been identified as a key impediment for effective governance by

making it difficult for citizens to hold government accountable. In turn, limited

accountability provides room for discretion in the management of public resources,

reduces the incentives to improve performance, thus limiting the effectiveness of public

policies.

3. Popular demands have been acknowledged in the transition process and have

translated into the main components of the new Constitution, in which governance

reforms feature prominently. In March 2011, the King announced the launch of a

comprehensive process of political, institutional, and social reform that led to the revision

of the constitution and to new elections. On July 1, 2011, the new constitution was

2

adopted which introduced reforms improving Morocco’s governance framework through

greater checks and balances between the legislative, executive, and judicial branches.

More specifically, the Constitution introduced reforms to: (i) strengthen the role of

Parliament through greater legislative powers and increased oversight over the

government; (ii) elevate the role of the Prime Minister to that of Head of Government, to

be proposed by the political party winning a parliamentary election; (iii) enhance the

independence of the Judiciary as a power that is autonomous from both the Executive and

the Legislative; (iv) strengthen citizen’s rights, including public participation and the

right to access public sector information; (v) strengthen consultative bodies and

accountability of institutions, including the National Council for Human Rights, the

Ombudsman, and the Anti-corruption Agency, and (vi) establish far-reaching

regionalization as a democratic and decentralized system of governance. A section of the

constitution (articles 12 to 15) empowering civil society and strengthening its

involvement in the management of public affairs is a direct response to recent protests

and popular demands for better governance and inclusion. Furthermore, the constitution

includes new provisions empowering regions by upgrading them to directly elected local

governments (article 135), reinforcing public participation to improve local governance

(articles 136 and 139) and strengthening fiscal decentralization (articles 141 and 142).

These provisions further support the new strategy for Advanced Regionalization aiming

to improve social and economic development at the local level and reduce geographical

and social disparities.

4. These recent constitutional changes represent the roadmap for Morocco’s transition

process and lay out the comprehensive medium-term reforms required to accomplish it.

The important changes introduced in the mandates and functions of Parliament required

the renewal of representatives through early elections, which were held on November 25,

2011, in which the Justice and Development Party (PJD) won 107 out of 395 seats in the

nationwide vote. The PJD then formed a coalition government in early January 2012,

with its leader becoming the Head of Government, as foreseen by the new constitution.

Following the withdrawal of the second political party in the coalition, negotiations are

underway to rebuild a new majority While the current political situation is unlikely to

lead to a reversal of the high level governance reforms supported by this project, it may

delay their implementation.

B. Sectoral and Institutional Context

5. In line with the new constitution and in response to popular demands, the

government prepared a program that aims to establish a more open and inclusive

governance framework to help strengthen the development process and improve the

delivery of public services. While many areas under this program are not new, the

Government program includes a set of progressive measures which are reinforced by

renewed political support and an improved enabling environment. The 2012-2016

Government program, which was presented to Parliament on January 26, 2012, is

structured around five key pillars, including: (i) deepening national identity and social

cohesion; (ii) the rule of law and advancement of regionalization and governance; (iii)

3

job creation and economic development; (iv) national sovereignty and social

development; and (v) improving access to social services for all Moroccans. The

Government program focuses on a number of governance reforms relating to the delivery

of public services, access to information and public engagement, reform of public

financial management, decentralization, and a strong emphasis on the justice sector.

6. A key transformational change is derived from the new constitutional right to public

consultation, which recognizes inclusive participation in government decision making as

a fundamental principle (Articles 12-15). Enabling citizens to petition and make

legislative proposals as well as to extend the scope of public consultation through a

standardized government-wide mechanism aims to directly respond to these new rights

and help establish a mechanism for more informed policy-making throughout

government. This reform builds on the current practice of online consultation on draft law

and regulations and complements the institutional consultation process, notably through

the Economic, Social and Environmental Council (CESE) established in 2011.

7. The Government program places emphasis on access to information, a parallel area

of reform and prerequisite to effective public consultation. The World Bank is

currently providing technical assistance to the Government for the development and the

implementation of the new legal, regulatory and institutional framework for access to

information (ATI). Through a dedicated law on ATI (article 27) currently under

preparation, proactive disclosure of key financial and budgetary information will be

required at the central and local level. Weak access to information has been highlighted

as a major challenge in previous years, and Morocco’s performance on Global Integrity

indicators illustrates this challenge in recent rankings, with measures of the strength of

access to information and the media cited as “weak” (64/100). Furthermore, the 2012

Open Budget index ranks Morocco at 38 out of 100 due to insufficient reporting and

disclosure on financial information and budget documentation.

8. The budget reform has gained a new momentum and is considered a key lever to

improve the performance of public service delivery and the accountability of

Government over the use of public resources. Growing fiscal constraints in Morocco

(with a budget deficit above 7.6 percent of GDP in 2012) and the international public

debt crisis highlight the importance of fiscal transparency and increased allocative and

operational efficiency in public expenditures. The budget reform is considered

instrumental to achieving these multiple and complementary objectives and to addressing

the above-mentioned weaknesses. The programmatic budget classification and the

introduction of multi-annual budget perspectives are seen as ways to enhance the

strategic nature of the Government’s budget policy and to improve allocative efficiency.

By strengthening the link between public policies, performance objectives, and budget

appropriations, it would improve transparency and facilitate parliamentary oversight. The

introduction of a performance management approach through which the Government,

ministries, and program managers commit to performance objectives and report on their

achievements aims at strengthening the Administration’s external and internal

accountability.

4

9. Advancing regionalization is a key pillar of Morocco’s governance transition, as

confirmed by the constitutional revisions and the new strategy adopted in March

2011. The emphasis on advancing regionalization is warranted by numerous weaknesses

in the accountability and transparency of local governments, as well as the limited scope

for citizen engagement in local affairs, which detrimentally impact the effectiveness of

local government services. These shortcomings are notably reflected in the low score (c)

in the last Public Expenditure and Financial Accountability (PEFA) assessment of the

transparency of inter-governmental fiscal relations. Transparency of financial transfers

and allocations made by the central government can be improved. For instance, the report

on local finances accompanying the budget law does not disclose transfers to individual

local governments. Information on the VAT account are published with the budget

settlement law. Likewise, local government budgets are rarely disclosed on their

Websites. Different sets of rules exist depending on the fiscal sources—VAT, business

tax, and income tax—of transfers to local governments, each passing through special

Treasury accounts.

10. In order to address challenges on the local government level and to implement the

new constitutional principles of self-determination, the Government has initiated a

major reform to the current fiscal transfer and equalization system, in addition to

reforms strengthening the managerial responsibility and accountability of local

governments. Local governments will benefit from increased competences and

corresponding resources according to the principle of subsidiarity (Article 140-141).

These important changes will be implemented through the revision of the organic law on

local governments, the law on local finances and the revision of the regulatory framework

on inter-governmental fiscal transfers. Such revisions are also warranted by the new

organic budget law, as central and local governments share the same budget classification

and public accounting rules. Likewise, the new transparency and public consultation

policies are also applicable to local governments. Regional councils will be entrusted

with greater responsibility for public service delivery and will require the corresponding

financial visibility, autonomy, and tools. This will involve central planning and

coordination with the Government and its local representatives, line ministries and their

devolved regional bodies, and local governments. The constitution also calls for the setup

of two new funds (article 142) to strengthen vertical and horizontal equalization and

reduce development disparities.

11. The proposed project aims to support the Government with the implementation of

critical reforms. The Bank is supporting governance reforms through various

instruments, most notably in the framework of the Accountability and Transparency

Development Policy Loan (DPL) (P130903) which supports the adoption of new laws

and policies. Parallel technical assistance provides financing for the design of these new

policies and the implementation of new right to access public sector information.

5

C. Higher Level Objectives to which the Project Contributes

12. The project is fully aligned with Transition Fund objectives by supporting the

Government in the implementation of transformational reforms that will strengthen

economic governance. The reforms supported by this project will help strengthen

the country’s overall governance framework and make tangible the new

Constitutional principles. The Bank is supporting this governance reform agenda

through a comprehensive support program, including (i) policy advice for the design of

these new policies and laws, (ii) a multi-donor Accountability and Transparency

Development Policy Operation (DPO) to support the adoption of this new legal and

institutional framework and (iii) through the proposed technical assistance project to

support the implementation of this new governance framework. The proposed project is

fully integrated with the DPO and builds on the current policy dialogue by supporting the

implementation of its three strategic reforms strengthening, respectively: (i) open

governance through greater public consultation, (ii) accountability in public financial

management through the budget reform and; (iii) fiscal decentralization through the

revision of the fiscal transfer and equalization system to local governments.

13. The project directly contributes to the achievement of the common objectives of the

Morocco Country Partnership Strategy (CPS) FY10-13 (Report 67694-MA) and its

progress report, namely to strengthen governance and territoriality. The CPS

progress report, discussed by the Board of Executive Directors in May 2012, confirms the

relevance of these objectives while recognizing the need to adapt the strategy to the new

socio-political priorities by strengthening governance and accountability, ensuring greater

social and economic inclusion, and increasing the scope for voice and public engagement.

The proposed project is designed to support the achievement of the two cross-cutting

objectives of the CPS by supporting the implementation of horizontal reforms including:

(i) public consultation; (ii) performance-based budgeting and fiscal transparency; and (ii)

decentralization.

Donor coordination and complementarity

14. The technical assistance proposed under this project complements the current

support to governance reforms provided by the World Bank together with other

development partners. Support to these reforms benefit from close coordination with

other donors, notably through the coordinated Morocco First Transparency and

Accountability Development Policy Operation (Hakama), prepared with the European

Union (EU) and the African Development Bank (AfDB). The components included in

this project aim to support strategic reforms on civic engagement, performance budgeting

and fiscal decentralization, which are central to the joint DPO and for which the

authorities requested implementation support from the World Bank. The project will

complement and strengthen the current engagement. It will also build on a large pool of

analytical underpinnings as well as on up-stream technical assistance provided by the

Bank, the EU, the AfDB and the MENA multi-donor trust fund, through the “Morocco

and Tunisia economic governance support project”. Finally, the governance and

decentralization reforms, supported by this project could eventually be complemented by

dedicated capacity building projects, such as a local government support program

6

discussed with the Bank and a public administration reform project discussed with the

OECD and the Bank.

15. The synergies between this project and current interventions from the Bank and other

donors are presented below:

Table 1: scoping of current donor support to governance reforms.

Reform areas/

Donors

World Bank (own resources and

MENA multi-donor TF project)

European Union African

Development

Bank

OECD

Open

government

Hakama and policy advice on the

access to information law, the public

consultation policy and the fiscal

transparency policy.

Hakama (joint budget

support)

Hakama (joint

budget

support)

Open

Government

Partnership

assessment

Public financial

management

Hakama and policy advice on the

budget reform and on public

procurement.

Hakama and TA on the

budget reform (training plan

and action plan). Twinning on

financial controls: with the

CoA and with the General

inspectorate of Finance. TA

on the tax reform.

Hakama. OECD senior

budget officer

meetings

Decentralization Hakama and diagnostic of the transfer

and equalization system. Sector

specific support to local government

service delivery.

Public

administration

reform

Support to administrative

simplification (CNEA)

Work on deconcentration, on

human resource management

and on the quality of public

services.

Advice on

HRM

Justice sector

reform

Justice sector enhancement technical

assistance project + Justice sector

public expenditure review.

Past MEDA justice support

project (closed).

II. Project Development Objectives (PDO)

16. The objective of the Project is to contribute to the strengthening of government

transparency, accountability and public participation by supporting (i) the development

and implementation of a public consultation policy and a law on petitions; (ii) the

improvement of access to fiscal information and enhancement of performance orientation

in budget management; and, (iii) the strengthening of fiscal decentralization.

i. Project Beneficiaries.

17. The project will support the implementation of a range of new constitutional rights

and structural reforms that are expected to benefit the Moroccan population as a

whole. More specifically the project’s primary beneficiaries will be citizens, civil society

organizations, businesses, parliament, taxpayers, users of public services and local

governments. The project will also support efforts to reduce gender disparities notably by

strengthening women’s participation in public consultations as well as by introducing

gender sensitive performance indicators in the budget reform.

7

Reforms supported under this project will benefit the project beneficiaries through the

following expected outcomes:

(i) The development of a government wide public consultation policy and a law on the

right to petition in line with international standards, will strengthen citizens’ voice in

public affairs;

(ii) Civil society organizations will be associated in the development of new public

engagement policies through an inclusive and structured National Dialogue and will

benefit from capacity building and training to effectively exercise these new rights;

(iii) Businesses and investors will benefit from increased transparency and consultation,

which reduce information asymmetry and create a more predictable regulatory

environment and level playing field conducive to growth and employment;

(iv) Parliament and taxpayers will benefit from the new organic budget law introducing

performance budgeting and increasing government accountability in the allocation

and management of public resources and results achieved. The implementation of

performance budgeting is expected to enhance parliamentary oversight, and

strengthen the allocative and operational efficiency of public expenditures.

(v) Users of public services will benefit from the increased responsibility and

accountability of managers and public service providers, through the introduction of

performance budgeting;

(vi) Local governments will benefit from capacity building and from the revision of the

fiscal transfer and equalization system, which will increase transparency of

intergovernmental fiscal relations and contribute to more effective equalization

policies. This reform would also create incentives for local revenue collection and

greater self-determination, sought by the constitution.

18. The secondary beneficiaries of the project are the public administrations and

notably: (i) the Ministry in charge of relations with parliament and civil society that will

benefit from capacity building and support for its role as permanent secretariat for the

National Dialogue, (ii) the Ministry of Economy and Finance that is in charge of the

budget reform, (iii) the Ministry of Interior that is tasked to implement the new

constitutional provisions for advanced regionalization.

ii. PDO level results indicators.

1. At the level of the project development objective:

Strengthened legal framework and formalized practices for participation in public affairs

Increased accountability of government over the use of public resources.

8

The transparency of local finances and of intergovernmental fiscal relations has

increased.

2. At the component level:

Component I: Strengthening Public Participation

Increased participation rate of CSOs in public consultation activities since and as a

result of the National Dialogue

Strong satisfaction rate among CSOs participating in public consultation

Strong engagement of CSOs in the development of legal framework on public

engagement

Component II: Enhancing Efficiency and Accountability in the use of Public Funds

Strengthened budget transparency, policy based budgeting and external scrutiny

Improved budget execution rate

Strengthened budget transparency and access to information

Component III: Advancing regionalization

Increased public accessibility of formal rules and regulations for fiscal transparency

and equalization

Training on the new procurement rules and on financial management

Strengthened competition and value for money in procurement

Improved fiscal reporting by local governments

III. Project Description

A. Project components

19. The project supports the implementation of the governance framework foreseen in

Morocco’s new Constitution through technical assistance and capacity building for

three strategic intertwined governance reforms aiming to increase civic engagement in

government affairs, enhance the government’s accountability towards parliament and tax

payers, as well as to strengthen fiscal decentralization and local governance. The project

follows an integrated and holistic approach by supporting three horizontal and mutually

reinforcing governance reforms in order to improve the inclusiveness and effectiveness of

Morocco’s public policies across the entire government.

20. The duration of this project is envisaged for a period of 4 years, in line with the time

frame of the Government’s development program (2012-2016). Supporting the

implementation of reforms covered under the Morocco Transparency and Accountability

DPL, this project will also support an information and communication strategy that will

9

help provide the necessary visibility to improve awareness within the administration and

the public on the benefits of the Government’s reform strategy and ongoing initiatives.

The project is composed of three components supporting three strategic and intertwining

governance reforms:

Component I – Strengthening Public Participation: (US$730,000)

21. Fostering greater public engagement is one of the core commitments enshrined in

the new Constitution. Improving public consultation and participation in the design and

implementation of public policies contributes to improving their quality as well as their

implementation by helping build consensus and, in turn, compliance. Consultation

practices are widely accepted as effective tools for building public trust around key

reforms, generating efficiency savings and accelerating public service reform.

22. The Constitution has introduced the right to petition, by which citizen can directly

propose legislation or present motions on public initiatives. These are important levers

to foster a more open mode of governance. They need to be concretized through

dedicated laws, which the Government intends to develop in a participatory manner. The

Ministry charged with relations with Parliament and Civil Society (MCRP) has

established a structured national dialogue around the development of rules, policies and a

legal framework defining public engagement mechanisms. This Dialogue is notably

expected to propose to parliament a draft law on petitions and motions as well as a draft

policy on public consultation.

23. The objective of Component I is to support the development of a legal framework

for public engagement, particularly in the form of a government wide policy on

public consultations and a law on petitions. It will then support the implementation in

pilot ministries and local governments. To ensure that this process is inclusive and

transparent, the project will also support the development of an online consultation

platform provided by the Inter-ministerial Committee for e-government (C-Gov), as well

as a monitoring and evaluation mechanism for the implementation of these policies. The

project’s support will include advice, exchange of experience with relevant countries and

practitioners as well as capacity building to the public sector and Civil Society

Organizations. The latter will complement existing projects supporting the demand side,

such as ANSA-Arab World Initiative.

24. More specifically this component will support:

(a) providing advice and technical assistance to the Ministry in Charge of Relations

with Parliament and Civil Society as well as to the structures of the national

dialogue and civil society organizations;

(b) facilitating national and international exchanges of experiences regarding citizen

participation through the provision of advice and study tours;

10

(c) carrying out activities aimed at raising awareness on the national dialogue and

related public consultation initiatives;

(d) supporting the development of an e-consultation platform launched by the Inter-

Ministerial Committee for e-government;

(e) developing a training-of-trainers program through the provision of training

sessions to selected public officials and civil society actors on, inter alia, public

consultation, change management and advocacy;

(f) testing the new consultation policy developed, in two selected pilot public

institutions; and

(g) developing: (i) a monitoring and evaluation system on public consultations; and

(ii) rolling out a user survey aimed at addressing user satisfaction ratings and

feedback on the consultation process.

Component II: Enhancing Efficiency and Accountability in the use of Public Funds

25. The budget reform is a building block of Morocco’s governance and public sector

reform agenda as it enhances transparency and accountability throughout the

budget process, strengthens parliamentary oversight, and represents a strong lever for

the modernization of the management of public expenditures and services.

26. The second project component supports the implementation of performance

budgeting. The objective of this component is to provide the Government and parliament

with the tools to strengthen internal and external accountability on the implementation of

public policies and the use of corresponding resources. The new organic budget law will

require the Government and the different ministries to commit to performance objectives

along with the budget proposal. At the end of each budget year the Government will have

to report to Parliament and to the public on the achievement of the performance targets.

This new budget management approach will also increase accountability and managerial

flexibility within the public administration. Finally, the new programmatic budget

presentation will foster fiscal transparency and the link between policy priorities and

budget allocations. This project component is subdivided in four subcomponents focusing

respectively on the implementation of the budget reform, the new public procurement

rules, a diagnostic of public investment management and supporting an external public

financial management assessment.

27. Sub-component II-1: will support the implementation of the new organic budget law

by introducing programmatic and performance budgeting. A draft organic budget

law has been prepared and is currently discussed with Parliament and with the Court of

Audit. The adoption of the law is foreseen in 2013 with an early implementation in key

line ministries with the 2014 budget. The Ministry of Finance, the Ministry of

Agriculture, the Ministry of Education and the High Commission for Forestry and Water

will constitute the first implementation wave and start to prepare the new programmatic

11

budget in 2013, with the corresponding performance objectives and indicators. The

reform will be rolled out to all ministries by 2017.

28. The public sector expertise needed for the implementation of this reform will be

provided through a twinning project between the Ministry of Economy and Finance

in Morocco and one or more Ministries of Finance from Deauville Partnership

countries having a unique expertise in the implementation of such a budget reform and

the necessary regional experience and language skills, such as the French Ministry of

Finance, Canada, the UK or Chile. This twinning project will take the form of a direct

service contract with the lead partner public administration. This contract will enable to

pair high public officials from Morocco with their counterparts in these countries to

foster exchange of expertise and experience in the design and implementation of the

various dimensions of the budget reform. The proposed twinning project will be

providing advice and technical assistance to the MEF and selected ministries, through a

twinning program, for: (i) implementing the new organic budget law, (ii) preparing its

implementing regulations and the new budget management procedures; (iii) modernizing

budget classification; (iv) developing a performance monitoring and evaluation

framework; and (v) developing performance commitments for selected ministries.

29. Sub-component II-2: supports the implementation of the new procurement rules

and regulations across the public sector, through the development of training

modules and of a training-of-trainers program in the area of public procurement..

The new rules and regulations aim to enhance transparency, efficiency and value for

money of public procurement, including through e-procurement. They extend the scope

of public procurement rules to agencies and local governments, thus requiring large

training efforts. This subcomponent will focus on the design of training modules and the

training of trainers for the central administration and local governments, leveraging

existing public sector training structures/programs in the country. It will be integrated

into the training program being developed by the working group at the SGG

30. Sub-component II-3: will finance a public investment management diagnostic and

technical assistance to improve the efficiency of public investments in Morocco. It

will use the World Bank’s newly developed public investment management assessment

tool covering the entire project cycle, from identification, selection, management through

to evaluation. Based on the diagnostic of the current practice of the Ministry of Economy

and Finance and one or two pilot ministries, the project will prepare an action plan to

strengthen public investment management.

31. Sub-component II-4: supports an external public financial management diagnostic

to assess the progress made in, inter alia, the performance budgeting reform. It will

use the Public Expenditure and Financial Accountability (PEFA) methodology and, in

turn, update the previous 2009 assessment. This diagnostic will help identify the progress

made and document the results achieved.

12

Component III: Advancing Regionalization

32. Regionalization is a key component of Morocco’s governance transition, as

confirmed by the constitutional revisions and the new Advanced Regionalization

strategy adopted in March 2011. Major changes were introduced to strengthen the

regions and their socio-economic development, increase accountability and transparency

of local governments as well as of intergovernmental fiscal relations. Local governments

are at the frontline of public service provision to citizens and the regions in particular will

have a key role in planning and coordination for public services and infrastructure. The

empowerment of directly elected regional governments and strengthening transparency

and public engagement in the management of local affairs represent a key pillar of the

Country’s new governance framework. Reforms supported under the two first project

components represent an opportunity to bring about more inclusive local governance and

strengthen their financial management. The implementation of the advanced

regionalization strategy and the planned empowerment of regions will necessitate the

transfer of new competences and financial resources. This will in turn require the revision

of the current system of fiscal transfers and equalization, taking into account the new

distribution of competences in a constrained fiscal environment and strengthening local

government’s financial management.

33. Component III will support fiscal decentralization by supporting the revision of the

fiscal transfer and equalization system for local governments through: (i) international

and local expertise; and (ii) the carrying out of study tours and workshops. It will further

provide training-of-trainers for local officials on, inter alia: (i) the budget preparation; (ii)

the new procurement rules; and (iii) internal audit; as well as provide training to regional

and other local authorities on planning and performance contracting guidelines and tools.

More specifically this component will include:

Technical assistance (TA) and advice to the reform of the fiscal transfers and

equalization system, in line with the new constitution and strategy for advanced

regionalization, including: (i) international and local experts; (ii) a consultation

workshop; (iii) information seminars and change management; (iv) international

benchmarking; and, (v) south-south exchange through two study tours.

Support to the implementation of the new law on local finance and capacity

building for local government (LG) public financial management, which includes

international and local technical assistance to the Ministry of Interior (MoI)/Direction

Générale des Collectivités Locales (DGCL) for the development of training and

capacity building on: (i) budget preparation; (ii) strategic budgeting based on the

Communal and regional development plans; (iii) public procurement, based on the

new procurement decree and regulation; and, (iv) training on the new financial

management information system for local governments (GID-CL)

TA for the development of planning guidelines and tools; including: LG training

and capacity building on planning for regions and LG to improve the multi-annual

13

costing, link with the budget, and economic and financial (ecofin) analysis of

projects, performance contracting; TA for the revision and simplification of

performance contracting policies and procedures for regions and LGs, based on the

new organic law for LGs.

B. Project Financing

i. Financing Instrument

34. The technical assistance project will be financed through a grant from the MENA

Transition Fund in the amount of US$4,000,000. The grant will be recipient executed in

line with the Bank and the Transition Fund’s policies and procedures.

ii. Project Cost and Financing

Indicative project budget for 4 years (in USD)

Indicative Cost by Component Transition

Fund

Country

Financing

Bank

Financing

Total

(USD)

I. Strengthening public participation

I-1: Support to Ministry, to Civil society and to the National Dialogue

on the new constitutional principles of citizen participation and to the

participatory development of related consultation and petitions policies.

I-2: Piloting of the new consultation policy in one ministry and one

local government and capacity building of officials and CSOs

I-3: Development of a monitoring and evaluation system, including on-

line consultations and user surveys.

322,000

266,000

142,000

50,000

372,000

Total component I 730,000 50,000 780,000

II. Enhancing Efficiency and Accountability in the Use of Public

Funds

II-1 Support to the implementation of the performance budgeting

reform through public sector expertise from OECD countries having

implemented the same reform. It comprises support to (i) the design

and steering of the budget reform and for the development of the new

procedures and tools, (ii) the implementation of the performance-based

approach in line ministries, and (iii) the development of a government

wide performance monitoring and evaluating system and the revision

of the financial management information systems.

II-2 training and capacity building for the implementation of the new

public procurement rules.

II-3 Public investment management diagnostic and technical assistance

II-4 public financial management assessment through an update of the

2009 PEFA.

1,500,000

124,000

100,000

100,000

70,000

1,570,000

Total component II 1,824,000 70,000 1,894,000

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III. Advancing Regionalization

III-1 Adapting the fiscal transfer and equalization system for local

governments (LG), in accordance with the new constitution and the

advanced regionalization strategy.

III-2 Capacity building for Local Government (LG) financial

management, including on the new public procurement rules.

III-3 Strengthening the planning and performance contracting process

in line with the enhanced role of regions.

277,800

296,000

195,000

50,000

327,800

Total component III 768,800 50,000 818,800

Information and communication 50,000

Unallocated expenditures 137,200

Project Implementation Unit 490,000 200,000 1 690,000

Total project cost 4,000,000 200,000 170,000 4,370,000

Nature of expenditures

Category Amount of the

Grant Allocated

(expressed in USD)

Percentage of Expenditures to be

Financed

(inclusive of Taxes)

Goods, non-consulting

services, and consultants’

services, Training and

Operating Costs under the

Project

4,000,000

100%

TOTAL AMOUNT 4,000,000

35. The project will finance primarily services (99.5%) and limited goods (0.5%), mainly

for the operation of the project implementation unit. The project will not finance works.

Services financed by the project notably include local and international consultancy

services, public sector administrative services, transportation services, information and

communication services as well as events, training seminars and visits abroad.

36. The financing of this project is complemented by financing from the Government

and from the Bank. The Government is providing a counterpart contribution, both in

kind (staff) through its own budget. The Bank is supporting these reforms and project

activities through technical assistance in the amount of US$170,000 as well as through a

proposed development policy loan series under preparation, estimated at US$ 300

million.

1 In kind contribution related to project management (staff, offices, utilities)

15

IV. Implementation

A. Institutional and Implementation Arrangements

37. The project is recipient executed and will be implemented by the Ministry of

General Affairs and Governance (MAGG). The project will be managed by a project

management unit (PMU) headed by a public official from MAGG and supported by a

project coordinator as well as procurement and financial expertise. Each ministry will be

responsible for the preparation and implementation of the activities foreseen under their

respective component. The development of a government-wide consultation policy and

a draft petitions law, foreseen under component I is entrusted to the Ministry in charge of

relations with Parliament and Civil Society. The budget reform and public financial

management diagnostics, covered by component II, are led by the Ministry of Economy

and Finance. The implementation of the decentralization strategy, supported by

component III, is led by the Ministry of Interior. A project Steering Committee will

oversee the project implementation and coordinate its activities.

38. The project steering committee (SC) will oversee the project implementation and

the project management unit and coordinate the different activities and project

stakeholders. The SC, will be headed by the MAGG and include all project stakeholders,

notably the project director and coordinator, representatives from the Ministries in charge

of relations with Parliament and Civil Society, of Economy and Finance and of Interior as

well as other relevant project stakeholders. It will meet as many times as necessary and at

least four times per year.

39. A project management unit (PMU) will be established and supervised by MAGG, which will be responsible for the implementation of project activities, procurement of

services and financial management. The Unit will also be tasked with monitoring the

activities and coordination between the different actors associated in the respective

reforms covered under this project. The Project Director presides over the PMU and will

be assisted by a Project Coordinator, as well as an expert in procurement and financial

management. The Project Director is appointed by the Minister and the three other

positions are financed by the project.

Specific implementation mechanisms:

40. Subcomponent II-1, supporting the implementation of the performance budgeting

reform will be implemented through an administrative services contract with one or

more OECD countries having experience in the implementation of such a budget reform

as well as the necessary regional experience and language skills. This administrative

services contract will enable to pair public officials from Morocco with their counterparts

in these countries to foster knowledge exchange in the design, steering and

implementation of the various dimensions of the budget reform.

16

B. Results Monitoring and Evaluation

41. M&E organizational arrangements. The M&E system will be based on the agreed

results framework and monitoring arrangements (See Annex 1). The PMU will be

responsible for supervising the M&E activities at component and PDO level. For each

component the lead ministry will be in charge of the M&E of its own project activities

and report on a quarterly basis to the PMU at the MAGG. The PMU will produce overall

quarterly progress reports and send them to the Bank no later than two months after the

reporting period. At the end of each year an annual report will synthetize the progress

achieved over the last 4 quarters.

42. M&E actions. The project M&E system will be complemented by specific M&E actions

funded under the project or by respected independent external surveys publicly available.

This includes on-line user surveys and an evaluation to be conducted under component I

on the implementation of the public consultation policy as well as an external Public

Expenditure and Financial Accountability (PEFA) assessment funded under component

II. The results from external independent assessments, such as World value survey, on

citizen’s engagement as well as from the Open Budget Index on fiscal transparency will

further feed the project’s M&E system. Beyond the project level M&E system, it will

also support the development of government-led M&E systems. For instance the national

dialogue on public consultation will have its own M&E system, including a feedback

mechanism for participants, a monitoring system for the implementation of the new

public consultation policy and external evaluations. Component II will support the

development of a government-wide performance M&E system in the context of the

budget reform, comprising performance monitoring integrated in the budget cycle, ex-

post performance audits and evaluations, associating external experts.

C. Sustainability

43. The nature of the policy changes supported by the project increases the likelihood in

sustainability of its results. The project is supporting the implementation of the new

constitutional rights and governance principles, adopted by a referendum in July 2011.

The new policies derived from the constitution represent a priority for the Government

and are difficult to revert to as they have created high expectations. The project design

and its integration with the parallel development policy loan (Hakama) supporting the

same reforms are meant to enhance the sustainability of its results. At the macro level the

project supports the revision of the policy framework and more specifically the

development of a new policy on public consultations, a new law on the right to petition,

the organic finance law and a new regulatory framework on fiscal transfers to local

governments. At the meso level the project is supporting the necessary institutional

development for the implementation of these new policies and laws, including by

supporting the institutionalization of the national dialogue, by supporting the institutional

setup necessary for the management of the budget reform at the ministry of Economy and

Finance as well as in line ministries. At the micro level the project is providing training

and capacity building to the public officials and Non State Actors involved in the actual

implementation of these reforms and new policies.

17

44. To increase the sustainability of the capacity building activities, the project support

will focus on institutional strengthening and on the development of training modules in

close cooperation with existing public training institutions. It will train trainers, both from

the public sector and from the civil society and complement other civil society

organization capacity building initiatives from the European Union or the Bank funded

ANSA-Arab World initiative.

45. Component II will promote peer-to-peer knowledge exchange, by building working

relations across countries, thus contributing to the sustainability of this reform.

Experience has shown that such administrative cooperation between peers has often led

to knowledge-exchange well beyond the project duration.

V. Key Risks and Mitigation Measures

A. Risk Ratings Summary

B. Description

46. Stakeholder Risks are considered high in view of strong expectations to produce

visible and concrete results relating to transparency, accountability and citizen

participation. This will be dependent on government capacity to adequately sequence

and phase reforms, prioritizing ‘quick-wins’ while maintaining a long-term reform

perspective. While the current socio-political context is more conducive to change, it also

bears important risks of frustration and tension in the absence of visible results in the

Risk Category Rating

Stakeholder Risk High

Implementing Agency Risk

-Capacity Substantial

-Governance Moderate

Project Risk

-Design Moderate

-Social and Environmental Low

-Program and Donor Low

-Delivery Monitoring and Sustainability Moderate

Overall Implementation Risk High

18

short term. Managing people’s expectations and the sequencing of reforms and changes

across the public sector are thus critical factors for the success of the Government’s

program particularly given the transformational and transversal nature of reforms relating

to public consultation, performance-based budgeting and decentralization. The authorities

and the project aim to mitigate the risk of frustration by building-in intermediate visible

results throughout the reform process, such as the setup of the national dialogue on

citizen engagement as well as visible fiscal transparency measures.

47. The risk of insufficient ownership by Government, project stakeholders and the

donor community is low. The proposed project responds to the high level directions

outlined by Morocco’s 2011 Constitution that calls for the “inclusive participation in

government decision making (Articles 12-15); balanced public finances (Article 77); and

advancement of the regionalization agenda through principles of good governance,

greater accountability, and improved representation.” The project components and

accompanying reforms are strongly anchored in these new Constitutional provisions as

well as the new Government program.

48. The implementation of the Government’s large governance reform program faces

major coordination challenges, considering the numerous reforms and their cross-

cutting nature. The project design aims to mitigate this coordination risk by focusing on

three strategic and intertwined reforms and by entrusting the project management to the

Ministry of General Affairs and Governance, which has the overall coordination

mandate.

49. Risks to the successful execution of the overall project stem largely from limited

implementation capacity of the implementing agency and counterparts. The Ministry

of General Affairs and Governance, deals primarily with public policies and has limited

experience in managing projects. The mandate to coordinate governance reforms is new

for the Ministry and it is in the process of strengthening its own capacity. Likewise, the

Ministry charged with relations with Parliament and Civil Society, has a new and

extended mandate (Civil Society) and limited experience in managing projects. The

project seeks to mitigate this high risk by supporting the project management unit,

providing implementation support from the Bank and hand holding advice on the

different reforms. Although the reforms support by this project benefit from a large

political consensus, the negotiation of a new Government coalition may delay the reform

process and the implementation of this project.

50. In addition to these horizontal risks, each component/ reform may face its own

specific challenges, which the project design aims to address as follows:

In regards to public consultation, there is a risk of insufficient engagement from

the public administration in the absence of a formalized and established policy.

Although authorities have scaled up public consultation on strategic and high level

reforms, such as the Constitution, the decentralization strategy and the justice reform,

other consultation processes remained generally ad-hoc, primarily focused on

strategies rather than on actual policies and often seen as a mere validation process.

The authorities aim to address this potential risk by launching a high level and

inclusive national dialogue for the design of the country’s new civic engagement

19

policies. The design of Component I aims to further mitigate this risk by

incorporating a strong information and communication strategy linked to the launch

and implementation of the National Dialogue, in order to raise awareness of on-going

initiatives and build consensus for reform. In addition, the e-consultation platform

will be a useful tool to help expand the scope of consultation to a wider user base as

well as act as a medium for Government to disseminate information and updates on

overall progress.

Regarding the budget reform, there is a risk of slippage and lack of engagement

from line ministries in the absence of new formal rules and regulations for

budget preparation and management. Previous reform efforts suffered from delays

in the absence of a clear timetable. Past pilot testing of the performance approach

yielded limited results as the legal and regulatory framework remained unchanged,

which created frustration among ministries which were confronted with parallel

procedures. The authorities recognize this limitation and focus their efforts on the

revision of the organic budget law, which is in its final stage. A sequenced

implementation plan is also being developed. The project will help mitigate this risk

by assisting the Ministry of Economy and Finance in developing the necessary

guidelines for line ministries and by supporting them in their implementation.

The regionalization reform is complex and highly political, and may be faced

with a risk of implementation delay. The constitutional revisions and the new

Advanced Regionalization strategy, adopted in March 2011, introduced major

changes empowering regions, reducing their numbers and redistributing competences

and resources. These changes will be implemented through the revision of the organic

law on local governments and will also require the revision and consolidation of the

regulatory framework on inter-governmental fiscal transfers as well as the

amendment of the law on local finances. These important and sensitive changes may

face a risk of delays and resistance. This risk is partly mitigated by the high level

political support this reform has across the political spectrum as well as by the

participatory approach followed by the high commission for regionalization for the

development of the strategy.

VI. Appraisal Summary

A. Economic and Financial Analysis

51. Strengthening the country’s governance framework will have significant benefits for

the society at large. Although it is difficult to quantify the economic and financial

impact of such transformational and cross cutting reforms, and the causal link with the

project’s support, economic research2 suggests a positive correlation between fiscal

transparency, foreign investments and government borrowing costs and interest spreads.

Anecdotal evidence confirms that a more open mode of governance with genuine public

participation contributes to improve the design, acceptance and implementation of public

2 Gelos & Wei 2005 et Glennerster & Shin 2008

20

policies and regulations. Enabling citizens to voice their priorities ensures better targeting

of public programs and expenditures. Businesses and investors benefit from reduced

information asymmetry and greater regulatory predictability, thus promoting a level

playing field conducive to growth and employment.

52. Regarding public financial management, increased accountability over the budget

allocations and performance creates incentives for greater allocative efficiency.

Likewise, increased managerial responsibility and accountability within the public

administration of budget management fosters greater operational efficiency of public

expenditures. The same is true for increased transparency of intergovernmental fiscal

relations, which will contribute to improve the predictability of resource flows to local

governments. The introduction of resource allocation criteria based not only on size and

population but taking also into account the services provided and the local revenues

generated, will create incentives for local revenue collection and foster greater self-

determination of local governments, sought by the constitution.

B. Technical

53. The project design follows a comprehensive and collaborative approach to support

the implementation of the new governance framework. It uses an integrated approach

by supporting mutually reinforcing reforms that foster open governance, improve public

financial management and strengthen intergovernmental fiscal relations. It follows also a

holistic approach by supporting horizontal structural reforms across the public sector

(central and local governance) to enhance impact. The project is integrated to the Bank’s

comprehensive support to Morocco’s governance reforms, comprising policy advice for

the design of the new laws and policies, a development policy operation (DPO)

supporting their adoption and this technical assistance to support their implementation.

The project follows a collaborative approach with bilateral and multilateral donors, both

through involving OECD member countries in the provision of expertise (component II)

and through the joint Hakama program and related policy dialogue.

54. The proposed project components are technically sound and in line with

international standards and good practices. The policy advice on the public

consultation and transparency policies is based on prior policy notes and international

benchmarking. The advice on the budget reform builds on the Bank’s global expertise

and experiences, including from Europe, North America and Latin America and

associates high level practitioners from OECD countries having experienced similar

budget reforms. Finally, the support to the revision of the fiscal transfer and equalization

system will build on a comprehensive diagnostic of the current system and its evolutions

and integrate an international benchmarking.

C. Financial Management

55. The financial management system within the Ministry of General Affairs was

appraised to determine if it complies with the requirements of the Bank in respect to

OP/BP10.02. The financial management assessment of the Ministry of General Affairs

and Governance cover the areas of accounting and financial management, as well as the

21

reporting and auditing processes of the project. The financial management system,

including necessary arrangements to respond to the needs of the financial monitoring of

the project, satisfies the minimum requirements of the Bank.

56. The assessment concluded that the Ministry of General Affairs and Governance,

strengthened by the suggested arrangement of the PMU, will have sufficient

capacity to manage project financial matters and administer grant funds. The main

responsibilities will include Project budgeting, treasury, general accounting and

reporting. The FM inherent risk for the country, the entity, and the project is considered

moderate.

57. Disbursement files will be prepared by the project management unit at the Ministry of

General Affairs and Governance following established procedures.

58. The PMU within the Ministry of General Affairs and Governance ensure that interim

unaudited financial reports for the Project are prepared and furnished to the World Bank

not later than forty five (45) days after the end of each calendar semester, covering the

semester, in form and substance satisfactory to the World Bank.

59. The Ministry of General Affairs and Governance shall have its Financial Statements for

the Project audited in accordance with the provisions of Section 2.07 (b) of the Standard

Conditions. Each such audit of the Financial Statements shall cover the period of one

fiscal year of the Recipient. The audited Financial Statements for each such period shall

be furnished to the World Bank not later than six months after the end of such period.

60. Financial flow of funds will come from the grant funds of the Bank. Flow of funds

between the World Bank the Ministry of General Affairs and Governance will be

organized according to the Disbursement procedures of the Bank.

D. Procurement

61. Procurement under the Project is mostly for the selection of international and local

consultants for technical assistance, training and capacity building, the design,

development and implementation of policies, operational tools and various guidelines for

the 3 different components. To support the implementation of the performance budgeting

reform under the component 2, an administrative services contract will be concluded

between the Moroccan Ministry of Finance and a consortium/association of Ministries or

public administration agencies of Finance from OECD countries selected for their best

expertise will be formalized on single source basis as an administrative services (non -

commercial) agreement on cost recovery basis. Procurement would include also some

goods and services related to project management, logistics for the organization of

training, workshops, consultations and other capacity building events for the 3

components. Procurement will concern also goods and services related to project

management, logistics for the organization of training, workshops, consultations and

other capacity building events for the 3 components.

22

62. The Ministry of General Affairs and Governance (MAGG) will have the overall

responsibility to manage the project. It will act as the project implementing agency and

its Division in charge of Administration and finance (DAF) which is in charge of

procurement for the Ministry will be handling all procurement under the project. The

units directly in charge of procurement within the DAF (“service des marchés” and

“service Bon de commande”), will have the responsibility in relation with the other

concerned departments, for planning and carrying out procurement activities. A capacity

assessment of the MAGG (“Division administration et finances”) was conducted on

January 7 and 10, 2013. Overall, it shows that the MAGG has limited experience in

implementing Bank funded project.

63. The overall risk for procurement is considered substantial. This is because of: (i) the

weak experience in Bank procedures of the MAGG and its staff working directly on

project implementation and (ii) the absence of training in Bank procurement procedures

for those staff. To help better mitigate the risk and facilitate project implementation the

following measures are recommended: (i) hiring of a procurement specialist, (ii)

organization of training in procurement for all staff involved in the project

implementation (MAGG, MoF, MCRP and all other concerned public entities), before

project effectiveness, (iii) preparation of Standard bidding documents (SBD) for National

Competitive Bidding (NCB) complying with procedures for NCB acceptable to the Bank;

and (iv) preparation of an implementation manual for the project. More details are

provided in Annex 3.

E. Social (including safeguards)

64. This technical assistance project has no direct distributional impact as it focuses on

horizontal structural governance reforms. The project has a positive social impact by

contributing to the Government’s effort to strengthen citizen engagement and voice,

through the support to the development and implementation of a government-wide public

consultation policy and law on petitions. These policies will be developed in a

participatory and inclusive manner associating civil society organizations to the National

Dialogue and through an online consultation platform.

65. The project supports both supply and demand side governance actions. The project

will provide technical assistance to the design and implementation of the new

consultation policy and train public officials (supply side) as well as capacity building for

Civil Society Organizations to strengthen the demand side and facilitate effective

participation. Support to the demand side will leverage and complement existing

programs supporting Non state Actors, such as the ANSA Arab World program financed

by the World Bank and Implemented by Care Egypt, including in Morocco.

66. No involuntary resettlement and/ or involuntary land acquisition can be envisaged

in relation to project activities and therefore OP 4.12 does not apply.

23

F. Environment (including safeguards)

67. The proposed Project is rated Category C for environmental safeguards purposes.

This small technical assistance project is not expected to have any direct environmental

safeguards implications. The technical assistance provided and the policies supported by

the proposed project are oriented toward improving transparency and effectiveness of

public governance and do not include a lending sub-component or physical investments.

The project provides technical assistance to the Government. The project activities do

not support direct investments, involve civil works, or imply policy actions that would

have any direct environmental or social safeguards impacts. In particular, it should be

noted that the proposed actions to enhance citizen engagement, improve the performance

orientation of the budget or the transparency of intergovernmental fiscal relations do not

target environmental procedures and thus will neither directly improve nor degrade

existing standards for public health and safety or the environment. Indirectly, however, as

these institutional capacities for ministries are strengthened, so will public expectations

for all other ministries, including those relating to the management of natural resources

and the environment.

24

Annex 1: Results Framework and Monitoring Project Development Objective (PDO): The Project Development Objective is to contribute to the strengthening of government transparency, accountability and public participation by supporting (i) the

development and implementation of a public consultation policy and a law on petitions; (ii) the improvement of access to fiscal information and enhancement of performance orientation in budget

management; and, (iii) the strengthening of fiscal decentralization.

PDO Level Results

Indicators* Unit of Measure Baseline

Cumulative Target Values**

Frequency Data Source/

Methodology

Responsibili

ty for Data

Collection

Description (indicator

definition etc.)

YR 1 YR 2 YR3 YR 4

Indicator One:

Strengthened legal

framework and formalized

practices for participation in

public affairs

Number of dedicated

policies of formalized

practices for public

engagement established

1 policy related to

US-Morocco Free

Trade Agreement

0 laws

1 policy

1 law

2

policies

1 law

3

policies

1 law

3 policies

Every

legislative

cycle, as

relevant

Official

government

bulletin;

MCRP

MCRP Stocktaking assessment of

newly established laws or

policies in the domain of

public engagement

Indicator Two:

Increased accountability of

government over the use of

public resources

Ranking on PEFA3

performance indicators

related to budget

transparency (nº6),

policy based budgeting

(nº12) and external

scrutiny (nº 26 and 27)

2009 assessment:

Indicator nº6

scored B, nº 12 :

C, nº26: D, and

nº27: B

nº6

scored B,

nº 12 : C,

nº26: D,

and nº27:

B

nº6

scored

B+, nº

12 : B,

nº26: C,

and

nº27:

B+

nº6

scored

B+, nº

12 : B,

nº26: C,

and

nº27:

B+

nº6

scored

B+, nº 12

: B, nº26:

C, and

nº27: B+

Once, by end

of the project

cycle

Morocco

PEFA

assessments

World Bank

and client

Data on PEFA framework

generated by World Bank

PEFA assessments

Indicator Three:

Increased transparency of

intergovernmental fiscal

relations and local finances

Ranking on PEFA

indicator measuring

competition and value

for money in

procurement (PI-19)

PI-19 (2009): B B B B B+ Once, by end

of the project

cycle

Morocco

PEFA

assessments

World Bank

and client

Data on PEFA framework

generated by World Bank

PEFA assessments

INTERMEDIATE RESULTS

Intermediate Result (Component One): Strengthening public participation

Intermediate Result

indicator One: Increased

participation rate of CSOs in

public consultation activities

since and as a result of the

National Dialogue

Number of CSOs

participating in

consultation activities

since and as a result of

the National Dialogue

250 CSO

representatives

(regional

consultation in

Kenitra on

constitutional

roles of CSOs)

500 700 850 950 Annual Diagnostic

survey

conducted by

MCRP

MCRP Participation data compiled

through MCRP diagnostic

surveys

Share of participation by

gender using e-

consultation processes in

NONE 75%

male;

25%

68%

male;

32%

55%

male;

45 %

55%

male;

45%

Annual Participation

measured

through a

MCRP/MCI

NT

Data compiled through

MCRP e-consultation

platform

3 Public Expenditure and Financial Accountability (PEFA) is a multi-donor diagnostic instrument, with 28 high level performance indicators measuring a country’s public financial management.

Morocco was assessed in 2009 and the current budget reform should translate into better scores on budget transparency, link between policies and budget and external budget oversight (respectively indicators nº6, 12, 26 and 27. Indicators are ranked from A to D, D being the lowest score.

25

X sectors female female female female survey

Intermediate Result

indicator Two: Strong

satisfaction rate among

CSOs participating in public

consultation

Percentage of CSOs that

feel public consultation

processes met their

expectations

NONE 0 50 60 70 Annual Satisfaction

survey

conducted by

MCRP

MCRP

Intermediate Result

indicator Three: Strong

engagement of CSOs in

development of legal

framework on public

engagement

Number of proposals

submitted by CSOs to

MCRP for the

development of public

engagement framework

NONE 0 50 150 200 Annual MCRP data MCRP An annual report on the

number of proposals

submitted by CSOs in the

context of public

consultation activities

Intermediate Result (Component Two): Enhancing Efficiency and Accountability in the use of Public Funds

Intermediate Result

indicator One: Strengthened

budget transparency, policy

based budgeting and

external scrutiny

Ranking on PEFA

performance indicators

related to budget

transparency (nº6),

policy based budgeting

(nº12) and external

scrutiny (nº 26 and 27)

Indicator nº6

scored B, nº 12 :

C, nº26: D, and

nº27: B

nº6

scored B,

nº 12 : C,

nº26: D,

and nº27:

B

nº6

scored

B+, nº

12 : B,

nº26: C,

and

nº27:

B+

nº6

scored

B+, nº

12 : B,

nº26: C,

and

nº27:

B+

nº6

scored

B+, nº 12

: B, nº26:

C, and

nº27: B+

Once, by end

of the project

cycle

Morocco’s

PEFA

assessments

World Bank

and client

Data on PEFA framework

generated by World Bank

PEFA assessments

Intermediate Result

indicator Two: Improved

budget execution rate

Budget execution within

budget programs

2010: 67.3% 70% 72% 73% 75% Annual MoF - budget

directorate

database

MoF budget

directorate

Data on budget execution

rates as reported by the

MOF budget directorate

Intermediate Result

indicator Three:

Strengthened budget

transparency and access to

information

Ranking of budget

transparency on OBI

index

2012 ranking: 38

38 38 42 42 Bi-annually Open Budget

Index (OBI)

World Bank

and client

A sub-set of indicators

measuring budget

transparency from the

Open Budget Index,

conducted by the

International Budget

Partnership, which covers

95 countries in total

Ranking of access to

information framework

on RTI measure from

OGP

2010 baseline : 1

3 4 4 4 Annual Right to

Information

Index (RTI) as

presented by

the Open

Government

Partnership

(OGP)

World Bank

and client

RTI assessment on

existence of ATI law (4

points), a constitutional

provision guaranteeing

ATI (3), or a draft ATI law

under consideration (1)

26

Intermediate Result (Component Three): Advancing Regionalization

Intermediate Result

indicator One: Increased

public accessibility of

formal rules and regulations

for fiscal transparency and

equalization

Number of formal rules

and regulations for fiscal

transfers and

equalization made

available online

Transfer rules are

scattered and

allocation criteria

are only partly

public

Partial Full

Full full Annual MoI, local

finance

directorate

MoI local

finance

directorate

Annual assessment

conducted on number of

formal rules and

regulations for fiscal

transfers and equalization

made accessible online via

government websites

Intermediate Result

indicator Two: Training on

the new procurement rules

and on financial

management

Cumulative number of

trainers and officials

trained (disaggregated

by gender).

None 15 (10%

women)

30

(12%

women)

50

(15%

women)

80 (20%) Annual MoI, local

governments

MoI, local

governments

Attendance sheets of

trainings

Intermediate Result

indicator Three:

Strengthened competition

and value for money in

procurement

Ranking in PEFA index

on competition and

value for money in

procurement (PI-19)

PI-19: B B B B A Once, by end

of project

cycle

Morocco

PEFA

assessments

World bank

and client

Public procurement of

local governments has

improved as evidenced by

a higher PEFA ranking

Intermediate Result

indicator Four: Improved

fiscal reporting by local

governments

Budget information

from local governments

are available in real time

through GID

0%

50% 70% 80% 90% Annual MoI local

budget

directorate

assessment

MoI local

budget

directorate

A greater number of local

governments are using the

integrated information

system GID and reporting

their fiscal data in real

time.

27

Annex 2: Detailed Project Description

Component I: Strengthening public participation:

1. Fostering greater public engagement is one of the core commitments enshrined in

the new Constitution. Improving public consultation and participation in the design and

implementation of public policies contributes to improving their quality as well as their

implementation by helping build consensus and, in turn, compliance. Consultation

practices are widely accepted as effective tools for building public trust around key

reforms, generating efficiency savings and accelerating public service reform. Better

informed and engaged users benefit decision-makers by leading to better quality

participation and greater efforts to support and improve reform implementation. Citizen’s

right to petition and to propose draft laws is another effective tool for greater citizen

engagement and a building block for participatory democracy. The new constitution

strengthened citizen engagement and introduced specific rights to petition and to be

consulted (articles 12 to 15).

2. In efforts to concretize these new Constitutional rights, the Ministry charged with

relations with Parliament and Civil Society (MCRP) is organizing a national

dialogue around the development of rules, policies and a legal framework defining

public engagement mechanisms. The outcome of the national dialogue will be a range

of laws and policies, derived from discussions with civil society organizations and

stakeholders, which will comprise the main legal framework for public engagement.

Expected results from the yearlong national dialogue include draft proposals for a

government-wide policy on public consultation and a law on petitions. These legal texts

will be presented to Parliament and Government for review and adoption.

3. The National Dialogue is led by an independent entity, who chairs a large advisory

commission comprised of representatives from relevant ministries, universities and

research centers, specialized experts, civil society representatives, and

representatives from the media industry. The committee is tasked with defining the

National Dialogue action plan as regards consultations concerning the new Constitutional

rights afforded to civil society. The overall dialogue process should adhere to generally

accepted international standards. The Ministry’s role should be limited to facilitation as

well as logistical and organizational support. On issues of monitoring and evaluation, the

Ministry intends to issue reports on the progress of the national dialogue on a regular

basis. These reports will be made public through a website dedicated to the National

Dialogue process and will be disseminated to the media. This process will lead into the

preparation of the final document on the outcomes and recommendations of the national

dialogue.

4. The objective of Component I is to support the implementation of this national

dialogue and a participatory process for the design of a government wide policy on

public consultations and a law on petitions. This project component is subdivided into

three sub-components focusing on (i) support to the Ministry, to the national dialogue on

the new constitutional principles of citizen participation and to the participatory

28

development of related policies; (ii) capacity building and piloting of the new

consultation policy and petitions law, and; (iii) monitoring and evaluation.

5. Sub-component I-1 - Support to the Ministry charged with relations with

parliament and civil society, to civil society and to the National Dialogue on the New

Constitutional Principles of Citizen Participation and the participatory development

of related policies:

5.1 Advice and technical assistance: This sub-component will provide advice and technical

assistance on the above mentioned policy changes to the Ministry charged with relations

with parliament and civil society, to civil society as well as to the different components of

the National Dialogue. This activity will also provide the relevant advice and technical

assistance on the development of a public consultation policy and the development of the

law on petitions. International and local hand-holding technical expertise will help to

strengthen capacity building in this new and innovative reform area. The technical

assistance will be provided in the form of a standard consultancy contract with the

identified international and local expert in the relevant technical field. The project will

also support peer learning with international practitioners having implemented similar

consultation processes and reforms.

5.2 Exchange of international experience: Support provided through this sub-component will

make available good practice international experience from countries such as the UK, a

leading pioneer in the area of public engagement. The expertise will be in the form of

one-on-one exchanges in Morocco and abroad, in the form of working sessions dedicated

to developing draft documents notably related to the National Dialogue process and laws

and policies developed throughout. This activity envisages a total of four (4) persons

throughout this exchange and access to two international country examples. This activity

will build on the international experience and knowledge-exchange organized by the

Bank through a series of multi-country, multi-stakeholder videoconference on public

consultations. The ANSA-Arab World Initiative will also provide an important network

of regional expertise in the area of social accountability and public engagement. This

activity has been designed in close collaboration with World Bank Institute and the

ANSA-Arab World to help ensure the maximum complementarity across these parallel

initiatives.

5.3 Information and Communication: Linked to Component 1 of this project is a dedicated

information and community strategy aimed to strengthen awareness on the reform

initiative and the value of public consultation. This activity will provide support to

activities designed to raise awareness on the national dialogue and accompanying public

consultation initiatives. In addition, this activity will provide support to the development

of a dedicated e-consultation platform to help expand the scope of users and geographical

coverage of consultation activities, in line with international good practice. The e-

consultation platform is a priority of Morocco’s e-government strategy and will build on

the expertise of the Ministry of Industry, Trade and ICT. This platform will aim to act as

a ‘one-stop-shop’ for public consultation initiatives across government on both a central

and sector level, thus building on past initiatives in the area of consultation.

29

6. Sub-component I-2 – Support to capacity building and piloting of the new

consultation policy and petitions law: This sub-component aims to build capacity for

successful implementation of this new reform area by providing support for the

development of training modules and the training-of-trainers for government officials and

civil society organizations. While this sub-component does not provide direct support to

the training of CSOs, the training-of-trainers activity will help to build capacity for

officials who will be responsible in the transfer and knowledge exchange for CSO

capacity building. Training sessions will be provided on (i) the different modalities of

public consultation; (ii) change management; (iii) advocacy and awareness raising; (iv)

public policies and development projects; (v) civic engagement; and, (vi) administrative

and financial management of CSO. This sub-component will also provide support to the

piloting of the petitions law or the new consultation policy in two government agencies at

the central and local level respectively. Support under this sub-component will cover

international and local expertise, in addition to the establishment of training seminars and

material related to these activities.

7. Sub-component I-3 – Support to monitoring and evaluation: This sub-component will

provide the necessary technical assistance for the development of a monitoring and

evaluation system on public consultations. This sub-component includes support for the

provision of international and local expertise in designing an M&E system in line with

public consultation mechanisms, in addition to the development and roll-out of a user

survey aimed to address user satisfaction ratings and feedback on the overall consultation

process. The user survey will be directly embedded in the online public consultation

platform to be established under sub-component I-1 and will be developed in close

coordination with the Ministry of Industry, Trade and ICT. In addition, the Ministry will

develop and issue progress reports on the National Dialogue which are to be published on

the dedicated ministerial website and accessible to citizens and the media. These

progress reports will lead into the preparation of a final document on the results of the

national dialogue, expected to be presented to Parliament beginning of 2014.

Component II: Enhancing Efficiency and Accountability in the use of Public Funds

8. The budget reform is a building block of Morocco’s governance and public sector

reform agenda as it enhances transparency and accountability throughout the

budget process, strengthens parliamentary oversight, and represents a strong lever for

the modernization of the management of public expenditures and services. This project

component is subdivided in three subcomponents focusing respectively on the

implementation of the budget reform, the new public procurement rules and supporting

an external public financial management assessment.

9. Sub-component II-1: Support the implementation of the performance budgeting

reform by pairing the Ministry of Finance in Morocco with countries from the

Deauville Partnership with relevant experience in the implementation of this type of

budget reform. This sub-component will support the Government in the implementation

of the new organic budget law by introducing programmatic and performance budgeting.

A draft organic budget law has been prepared and is currently being discussed with

30

Parliament and with the Court of Audit. The adoption of the law is foreseen in 2013 with

an early implementation in key line ministries with the 2014 budget. The Ministry of

Finance, the Ministry of Agriculture, the Ministry of Education and the High

Commission for Forestry and Water will constitute the first implementation wave and

start to prepare the new programmatic budget in 2013, with the corresponding

performance objectives and indicators. The reform will be rolled out to all ministries by

2016. In each ministry, program heads and managers will be designated and tasked with

setting the performance objectives, managing the corresponding resources and reporting

on their achievements. The corollary of this increased accountability is more managerial

flexibility for the reallocation and management of budget resources. For that purpose, the

Ministry of Finance has started to differentiate and alleviate ex-ante financial controls

based on managers’ capacity and risks.

10. The project will support the implementation of performance budgeting through the

provision of public sector expertise and technical assistance for the modernization of

budget classification, the preparation of bylaws and new budget management

procedures. It will empower program managers in addition to making them more

accountable for their performance. Activities under this component will also support the

development of a government wide performance monitoring and evaluation framework

and will build on the Bank’s past support to the conceptualization and pilot testing of this

reform. The Bank had supported the initial development of guidelines for medium term

budget frameworks and for the design of performance objectives and indicators. These

guidelines now need to be revised in accordance with the new organic budget law and the

results of previous pilot testing. The project will also support the four first ministries for

the restructuring of their budgets in a programmatic and multiannual format as well as the

development of their performance plans along their 2014 budget.

11. The public sector expertise needed for the implementation of this reform will be

provided through a twinning project between the Moroccan Ministry of Finance

and one or more Ministries of Finance from Deauville partnership countries having

a unique expertise in the implementation of such a budget reform and the necessary

regional experience and language skills, such as the French Ministry of Finance, Canada,

the UK or Chile. This twinning project will take the form of a direct service contract with

the lead partner public administration. This contract will enable the pairing of high public

officials from Morocco with their counterparts in these countries to foster exchange of

expertise and experience in the design and implementation of the various dimensions of

the budget reform. As this reform necessitates an overhaul of the current budget

preparation and management procedures with wide ranging implications, both the

Ministry of Finance and the line ministries will need guidance on the steering of this

broad and complex reform. The required guidance includes expertise in the design of

new rules and regulation, coaching for the new performance management approach and

support for the setup of a government wide performance monitoring and evaluation

system, integrated with the Government’s current information systems. The required

expertise is mostly available in the public sector, in countries having implemented similar

budget reforms. The proposed twinning project will be structured along three

components, specified below: (i) support of the design and piloting of the budget reform,

31

(ii) support to the implementation of the performance-based approach in line ministries,

(iii) development of a government wide performance monitoring and evaluating system.

12. The twinning project for the performance budgeting reform would comprise the

following specific activities:

(i) Support to the design of new rules and regulations and pilot-testing:

Advice, training and exchange of international experiences for the budget reform steering

committee and involved administrative structures;

Technical assistance for the drafting of the new organic budget law’s bylaws;

Technical assistance for the development of standards and operational guidelines for the

line ministries;

Advice for the revision of the new budget classification and the development of budget

programs.

Advice and technical assistance for the development of multiyear budget programming

tools and budget rules

Technical assistance to adapt the financial information systems to the new budget

classification and management.

Development of a website and Intranet for reform in order to communicate and create a

community of practice within the administration.

Development of e-learning modules for the new budget management procedures

(ii) Support to the implementation of the performance-based approach in line ministries.

Technical assistance for the development of ministerial budget programs and the

corresponding performance commitment and reports

Advice and technical assistance for the development of performance management tools in

line ministries, including: (i) an operational breakdown of ministerial performance

objectives and indicators, (ii) the development of performance management dashboards,

and (iii ) performance management controls,

Technical assistance for the horizontal and vertical performance contracting for the

implementation of ministerial programs.

(iii) Development of a government wide performance monitoring and evaluating system

Technical assistance to develop a government wide system performance monitoring and

evaluation system, integrated with existing information systems.

Advice for the Development of an inter-ministerial mechanism for quality control and

validation of the ministerial budget programs, performance commitments and reports.

Support the carrying out of two ex-post program evaluations, involving external experts.

Advice for the development of a methodology to review and amend budget programs

based on their performance

32

13. Sub-component II-2: supports the implementation of the new procurement rules and

regulations across the public sector, through the development of training modules and the

training of public sector trainers. The implementation of the new procurement rules and

regulations, which will enter into force in 2013, will be primarily supported through

training and capacity building. The new rules and regulations aim to enhance

transparency, efficiency and value for money of public procurement, including through e-

procurement. The new procurement decree extends the scope of public procurement rules

to agencies and local governments, thus requiring large training efforts. This

subcomponent will focus on the design of training modules and the training of trainers for

the central administration, using the existing training institutions and programs in the

country. This includes the MEF training institute for the central level, and the training

facilities of the Directorate General for local governments (MoI). This subcomponent

could also tap into the pool/network of procurement training experts developed by the

TGR (Trésorerie Générale du Royaume) to teach within those existing sectoral

institutions, and for the development of the e-procurement aspects. Support to local

governments will be provided under component 3, along with the other new local public

financial management rules. It will be complemented by an Institutional Development

Fund (IDF) grant supporting the national tender commission at the Secretary General of

the Government. A multi-stakeholder working group has been set up to coordinate these

training and capacity building efforts across the public sector.

14. Sub-component II-3: will finance a public investment management diagnostic and

technical assistance to improve the efficiency of public investments in Morocco.

Authorities and international organizations have expressed concerns regarding the uneven

effectiveness and impact of public investments. The scaling up of public investments in

social sectors and for basic services has not always yielded the expected development

outcomes. Development challenges and social and regional disparities remain high and

addressing them is the Government’s utmost priority. However given the financial

constraints, this effort requires also enhancing the effectiveness of programmed public

investments and thus the strengthening the public investment management (PIM) process.

The Ministry of Economy and Finance has thus expressed interest in the new and

comprehensive PIM assessment toolkit developed by the World Bank and covering the

entire project cycle, from identification, selection, management through to evaluation.

The current component would support an initial diagnostic with this tool kit for the

Ministry of Economy and Finance itself as well as for one or two pilot ministries. This

will enable customizing further the toolkit, training public officials who could then carry

out the assessment on a larger scale, while already providing some recommendations on

how to strengthen public investment management in the ministries covered.

15. Sub-component II-4: supports an external public financial management (PFM)

diagnostic (PEFA) to assess the progress made in the recent reforms, including the

performance budgeting reform. A joint external diagnostic of Morocco’s public

financial management system, using the Public Expenditure and Financial Accountability

(PEFA) methodology has been conducted in 2009 with the European Union and the

African Development Bank and has made recommendations for improvement. Since

33

then, the Government has initiated important reforms across the budget cycle, from

preparation, execution, with a new integrated financial management system GID, but also

on procurement, public accounting and on financial controls. Regarding the latter, the

commitment control body and the accountant’s financial controls have been merged in a

single entity and the process has been simplified and modernized introducing a risk based

approach (contrôle modulé de la dépense). Likewise, the budget reform, supported by the

DPL and subcomponent II-1 will move to actual implementation, thus addressing some of

the weaknesses highlighted in the 2009 PEFA regarding notably the link between public

policies and budget allocations. The PEFA update will enable to capture these changes

and to incorporate its findings and recommendations in the ongoing reform process.

Similarly to the initial PEFA, the update could be conducted jointly with the European

Union and with the African Development Bank.

Component III: Advancing Regionalization

16. Regionalization is a key component of Morocco’s governance transition, as

confirmed by the constitutional revisions and the new Advanced Regionalization

strategy adopted in March 2011. Major changes were introduced in order to strengthen

the regions and their socio-economic development, increase accountability and

transparency of local governments as well as of intergovernmental fiscal relations. Local

governments are at the frontline of public service provision to citizens and the newly

elected and empowered regions will have a key role in planning and coordination for

public services and infrastructure. Reforms under Component III have important linkages

to other dimensions in this project, particularly to the budget and public financial

management reforms that will impact local financial management. Likewise the open

governance reforms supported by the project aim at fostering public participation across

the public sector. Expectations are particularly high at the local level, considering their

direct interface with citizens for numerous basic public services.

17. Component III supports fiscal decentralization reforms in an effort to strengthen

the performance of local governments and improve relations across levels of

government, in line with the new constitutional provisions empowering local

governments. The project supports the transfer of certain competences to the regional

level to stimulate economic growth across the country and reduce spatial inequalities. It

contributes to re-assessing functions of the central government based on the principle of

subsidiarity, and following an inclusive sectoral approach, in view of improving public

service delivery through decentralization. It would provide regional stakeholders with

instruments to set development strategies and coordinate with the central government.

The Constitution also foresees the setup of two funds to foster equalization in order to

reduce regional disparities. These changes require the overhaul of the current fiscal

transfer and equalization system, currently assessed by the Bank. Activities supported

under Component III are divided into three sub-components, including: (i) support to

adaptation of the fiscal transfer and equalization system for local governments; (ii)

capacity building support; and, (iii) support to the system of planning and performance

contracting.

34

18. Sub-component III-1 – Adapting the fiscal transfer and equalization system for local

governments, in accordance with the new Constitution and the advanced regionalization

strategy. Support will be provided through technical assistance and advice to the revision

of the fiscal transfer and equalization system, including both international and local

expertise. This activity also envisages support through international benchmarking and

knowledge-exchange among two partner countries (TBD) for a total of four persons. This

exchange will be primarily through the form of two south-south study tours. Information

and change management seminars on the new transfer and equalization system will be

designed and supported through this sub-component.

19. Sub-component III-2 – Capacity building for local government financial

management, including on the new public procurement rules. Support will be

provided for technical assistance, the design of training modules and training-of-trainers

for local government officials on: (i) preparation of the budget based on an multi-annual

budget framework and on the priorities of communal and regional development plans (ii)

procurement rules, based on the new decree, (iii) implementation of the new integrated

financial management and revenue information systems called GID CL and GIR; and,

(iv) internal audit.

20. Sub-component III-3 – Strengthening the system of planning and performance

contracting in line with the new organic law on local governments and the enhanced

role of regions: This sub-component will provide technical assistance through

international and local expertise, to the development of planning guidelines and tools in

order to enhance local government development planning processes. Support will also be

dedicated to the development of training and capacity building activities including

dedicated seminars and training modules for regions and other local authorities, with the

aim of improving multi-annual budget-programming in addition to linkages with the

budget. Similar activities will be developed to support economic and financial analyses

of projects.

35

Annex 3: Implementation Arrangements

1. The project is recipient executed and the implementation agency will be the ministry of

General Affairs and Governance (MAGG). The project will be managed by a project

management unit (PMU) headed by a public official from MAGG and supported by a

project coordinator as well as procurement and financial expertise. The responsibility of

specific activity implementation under each component will be left at the responsibility

of each respective lead ministry. The development of a government wide consultation

policy foreseen under component I is entrusted to the Ministry in charge of relations

with Parliament and Civil Society, the budget reform, covered by component II, is led

by the Ministry of Economy and Finance and the implementation of the

decentralization strategy, supported by component III, is led by the Ministry of Interior.

A project Steering Committee will oversee the project implementation and coordinate

its activities. To facilitate project implementation and supervision, a procurement plan,

dated September 5 2013 has been prepared to identify a limited number of key experts

to be recruited and to package most activities into single contracts to be awarded to

international and/or local firms that have proven capacity to deliver results under “turn-

key” contracts or similar results-based approaches.

Project institutional and implementation arrangements

2. A visualization of this implementation arrangement is presented in the following

illustration :

36

Project Management (PM - MAGG)

Project Coordinator (PC)

Procurement Specialist (PS) Financial Specialist (FS)

Project Management Unit – (PMU)

Ministry of General Affaires

and Governance (MAGG) Ministry of Finance

(MoF) Ministry of

Interior (MI)

Steering Committee

Ministry in charge of

relations with Parliament and

Civil Society (MCRP)

Project Beneficiaries of Activities

Ministries: Education, Finances Interior, Agriculture, Water and Forestry, Relations with Parliament, etc. –

Ministerial Departments, Royal Treasury of Morocco (TGR) – Local Governments (LG)

3. A strategic oversight committee at the level of Secretary Generals will be established.

This committee, presided by the Secretary General of MAGG, will provide strategic

guidance to the SC and oversee the overall implementation of the project. It will

convene as needed and at least once a year.

4. The project steering committee (SC) will oversee the project implementation and the

project management unit and coordinate the different activities and project

stakeholders. The SC, will be headed by MAGG and include all project stakeholders,

notably the project director and coordinator, representatives from the Ministries in

charge of relations with Parliament and Civil Society, of Economy and Finance and of

Interior as well as other relevant project stakeholders. It will meet as many times as

necessary and at least four times per year. The task of the Steering Committee is to

provide overall guidance, facilitation, coordination and supervision of project activities

throughout the project cycle. The SC membership, mandate and internal regulation will

be specified in terms of references. This latter committee will provide strategic

37

guidance to the SC and oversee the overall implementation of the project. It will

convene as needed and at least once a year.

More specifically, the SC will be responsible for:

Defining the objectives, priorities and expectations of the project;

Reviewing the activities and related budgets that are presented by the Project

Management Unit (PMU);

Reviewing the progress of planned activities;

Managing differences that may arise in the course of activities and decide on

corrective measures as necessary to ensure implementation;

Facilitating the management of implementation hurdles that may arise;

Ensuring the participation of all stakeholders and that project objectives are met;

Approving any changes in the Project Manual.

5. A project management unit (PMU) will be established and supervised by MAGG,

which will be responsible for the implementation of project activities, procurement of

services and financial management. The Unit will also be tasked with monitoring the

activities and coordination between the different actors associated in the respective

reforms covered under this project. The Project Director presides over the PMU and

will be assisted by a Project Coordinator, as well as by a procurement specialist and a

financial management specialist. The Project Director is appointed by the Minister and

the three other positions are financed by the project. Detailed descriptions of each

position as follows:

The Project Director (PD) is a public official from MAGG. He will be assisted by

a coordinator, and will oversee the implementation of the project; sign contracts, and

validates report implementation reports and financial reports.

The Project Coordinator (PC) is a local expert with project management

experience, hired by the project. He will manage the daily activities of the project,

under the responsibility of the Project Director, manage procurement, accounting and

reporting and oversees financial management. The PC sets up a system for

monitoring and evaluation of activities and results of the project in close coordination

with the Ministries, relevant Departments and beneficiaries involved in respective

reforms. The PC also controls the activities related to information and communication

of ongoing reforms covered under the project.

The Procurement Specialist (PS) is a local consultant, hired by the project. He

prepares a procurement plan for the project and updates this plan as needed. The PS

prepares the bidding documents and assists in recruitment processes with the

coordinator, under the supervision of the PD, and in consultation with the World

Bank on the basis of terms and references provided by the service recipient. The PS

38

works closely with its counterpart office of the Bank. His/ her terms of reference are

annexed to the project implementation manual.

The Financial Management Specialist (FMS), is a local consultant hired by the

project, manages the project accounts and produces quarterly financial reports, in

close coordination with the Finance Office of the Bank. His/her terms of reference are

annexed to the project implementation manual.

6. The MAGG will prepare agreements with respective beneficiary ministries to

coordinate the activities and budget allocations under their respective component. The

beneficiary Ministry of the respective task will, in conjunction with the PMU: (i) define

the needs (preparation of terms of reference, technical specifications, training, etc.), (ii)

provide information on monitoring activities and (iii) validate the services provided by

the resources at their disposal. The MAGG, based on expressed needs, will provide: (i)

procurement, (ii) the provision of resources, (iii) financial monitoring of suppliers and

their payments result in "good pay" issued by the beneficiary. Each year, meetings

between beneficiaries and the PMU will establish the activities and annual budgets to

be submitted to the SC. To facilitate interaction between departments and PMU, each

beneficiary ministry will appoint a focal point that will be in permanent contact with

the PMU and provide an interface between his Ministry and the MAGG.

7. Cross-cutting activities, such as training, will be implemented by the MAGG for

beneficiaries. They will establish the number of trainees, the themes, and venue. The

MAGG will monitor and evaluate the training provided to beneficiaries.

8. Activities will be described, estimated and planned in year n-1. On the basis of this

plan, a procurement and disbursement plan will be established or updated. These

documents will form the basis for the financial monitoring system. Tracking tables will

be presented to the SC during quarterly meetings. An annual monitoring will be

established at the year end. The quarterly assessment will be sent to all participants by

the PMU 15 days before the date of the meeting. On the basis of the monitoring tables,

the SC will take appropriate decisions to achieve the objectives of the project. These

tables will also be forwarded to the World Bank in accordance with the grant

agreement.

9. The table below lists the required steps to be achieved and respective responsible unit:

N° Stage Responsible entity

1. . Nomination of focal point Beneficiaries

2. Preparation of activities and ToRs Beneficiares + MAGG

3. Procurement MAGG

4. Contract signatures MAGG

5. Resources are made available MAGG

6. Activity implementation Beneficiaries + Service

39

providers

7. Follow up of activities (monitoring and evaluation) Beneficiaries / MAGG

8. Validation of services or supplies provided Beneficiaries

9. Payment of service providers MAGG

10. Development of monitoring tables and annual

summary table

Beneficiaries + MAGG

11. Presentation of results to SC MAGG

12. Corrective measures for year n+1 SC

Specific implementation mechanisms for the twinning project:

10. Subcomponent II-1, supporting the implementation of the performance budgeting

reform will be implemented through an administrative services contract with one or

more OECD countries having a unique public sector expertise and experience in the

implementation of such a budget reform as well as the necessary regional experience

and language skills. This administrative services contract will enable to pair high public

officials from Morocco with their counterparts in these countries to foster knowledge

exchange in the design, steering and implementation of the various dimensions of the

budget reform. Under the administrative services contract, the contracting public

institution from the OECD partner country will appoint a high official with relevant

experience in performance budgeting as head of the twinning project. He will act as

adviser and coordinator for the implementation of the twinning. He will be seconded

and supported by a competent official, appointed as twinning coordinator for the

management of the activities and reporting requirements under the contract. Both will

work in close cooperation with the designated Moroccan counterparts, the overall

project management unit and with the Bank. The twinning coordinator could be

visiting or resident in Morocco, in which case he would have an office in the premises

of the Ministry. He will report quarterly to his counterpart at the Ministry of Economy

and Finance as well as to the project director from MAGG on the implementation of the

administrative services contract. Under each specific component of this contract, a lead

expert, who is a high public official with proven expertise and experience in the subject

matter, will take responsibility for the delivery of the advice and technical assistance

agreed upon. He will be supported by a pool of experienced public officials who will

provide specific short term expertise as required for the deliverables of the contract.

Four to five lead experts are foreseen in addition to the twinning head and coordinator.

Public sector expertise can be mobilized from other OECD countries as needed for the

project delivery, under the supervision and responsibility of the contracting public

institution. Such cooperation can take the form of sub-contracting or co-contracting for

the purpose of this administrative services contract. This component and contract

includes two visits of Moroccan public officials to two OECD countries having

implemented such budget reform to learn from their experience. A dedicated steering

committee will be established to oversee the smooth implementation of this

40

administrative services contract. It shall be co-chaired by the two twinning heads, who

are two high officials appointed respectively by the contracting parties. The dedicated

steering committee signatories will meet at least twice a year in Morocco. A launching

and closing seminar are foreseen and included in the budget. Financial management of

the administrative services contract will be ensured by the contracting public

institution, which will send the payment requests in line with the contract schedule to

the project director at MAGG.

Financial Management, Disbursements and Procurement

11. Public Financial Management: The Bank’s experience in Morocco and the main

conclusions of the 2009 PEFA indicate that the Moroccan public finance system is

governed by an elaborate legal and regulatory framework. The financial management

risk of the Moroccan public finance system is considered low.

12. Assessment of the Financial Management System: An assessment of the financial

management system in place at Ministry of General Affairs and Governance was

carried out to determine if it complies with the Bank minimum requirements for the

project management in respect to the OP/BP10.02.

13. The Financial Management System (FMS) in place in the executing agency is based on

principals and procedures defined by the legal framework applicable to the public

sector and more specifically to governmental institutions.

41

Risk Analysis: Inherent risk

Risk Rating Mitigation of risk Risk rating

after

mitigation

Country level The Moroccan public finance system is governed by a

complex legal and regulatory framework that offers

guarantees of high reliability and transparency.

Morocco’s compliance with rules and regulations and

existing accountability arrangements provide an

adequate framework for the use of public funds and

public financial management (PFM) is considered

broadly transparent.

Low

Project level Though the Ministry of General Affairs has a previous

experience on Bank’s financed IDF grant for the

reinforcement of the reform process of the National

Commission of Business Environment (CNEA),

important delays in the implementation of the grant’s

activities and low disbursement of grant proceeds were

mainly due to lack of capacity and monitoring.

Substantial

A Project Management

Unit will have a

dedicated consultant for

FM (financial

management), that will

work closely with the

Director of the PMU.

The PMU will be

overseen by a Steering

Committee representing

the central departments

and the decentralized

units involved.

Capacity building of

financial management

staff of the project.

Close monitoring by the

World Bank financial

management team

A Project implementation

manual acceptable to the

World Bank to ensure

that project activities are

covered in their entirety

and that the risk level is

mitigated.

Moderate

Inherent risk before mitigation Substantial Inherent risk after mitigation Moderate

42

Control Risks

Risks Rating Mitigation of risk

Rating

after

mitigation

of risk

Budget

The administrative and financial management unit is

responsible at the Ministry of General Affairs and Governance

for the preparation of and implementation of the annual

budget for operating and investment programs of the Ministry.

The budget is submitted to the Secretary General/the Minister

and afterwards to the Directorate of Budget at the Ministry of

Finance for primary approval. The draft budget is submitted

for adoption by first and second chamber of Parliament.

Low

Accounting

The accounting system is based on accounting regulations

applicable to public institutions (Royal Decree n° 330-66,

April 21, 1967) BO. n° 2840, April 26, 1967, p. 452) ;

relating to the maintenance of public accounting in accordance

with General Code of accounting Standards.

Low

Financial Reporting

The Implementing agency is using GID to administer its

accounting. The financial reporting for the project can be

extracted from GID.

While presenting the funds to the MoF to be budgeted, the

split of the grant into components will be clearly presented to

allow the bank funds to be reported in GID by components.

The Financial report will require the presentation of the funds

by category as well. Hence, an excel spreadsheet will be

prepared where it will provide the information needed.

Reconciliation with the system will be performed to ensure

accuracy.

Moder

ate

The FM consultant will

extract the report from

GID and will ensure that

complementary

information requested in

the financial report, if not

able to extract it from GID,

are completed in an excel

spreadsheet, reviewed and

submited to the Director

for approval and

submission to the Bank

Low

Funds Flow

Financial flows come from the World Bank and in kind

contribution from the counterpart. The flow of funds from the

World Bank are organized according to the Bank's

disbursement procedures

Low

Internal control

No formalization of the internal control functions within the

Ministry.

Substa

ntial

An implementation

Manual details the control

environment to be applied

for this project.

The external auditor of the

project will submit a report

on internal control

Moderate

Auditing Delay in the submission of the audit report of the project to

the Bank

Moder

ate

The Bank team will ensure

the auditor, its term of

reference are acceptable to

the Bank and that the audit

work is started in a timely

manner to deliver the

required report within the

deadlines.

Low

43

14. Given all the measures to be taken to reduce the level of exposure, to manage and to

reduce the risks and weaknesses identified, the risk of residual financial management at

this stage is considered moderate.

15. Implementing Agency: A Project Management Unit will be established within the

Ministry of General Affairs and Governance. The PMU will ensure the coordination

and execution of the project. The PMU will be overseen by a Steering Committee. The

Steering Committee will meet at the request of the president at least four times per year

and upon request. The task of the Steering Committee is to provide overall facilitation

and supervision of project activities throughout the project cycle. The chair of the

Steering Committee will be the Secretary General, or the Project Director. The Project

Director, a public official from the MAGG, presides over the PMU and will be assisted

by a Project Coordinator, a specialist in procurement and financial management. The

Project Director is appointed by the Minister and the two other positions are financed

by the project.

16. The Administrative and Financial Management unit (Direction Administrative et

Financière - DA) within the Ministry of General Affairs and Governance will

ensure support to projects. The FM consultant will strengthen the DA capacity, and

will assist in ensuring good management of funds, and timely production of the

required financial reporting.

17. Procedures and policies: The Ministry of General Affairs and Governance has a

manual of procedures for the Administrative and Financial unit but does not have a

manual of accounting and organizational procedures. Hence, to allow a good

implementation of the project, a Manual of execution will be required to explain the

procedures to be applied for the funds and the level of controls to be applied.

18. Budgeting: In Morocco, each Ministry prepares its own budget and submits it to the

Ministry of Economy and Finance for approval through the “loi de finance”. In the

case of grants, they can use “le fond de concours” when additional resources become

available during the fiscal year. In this case, the Ministry of General Affairs and

Governance will include the amount of the grant in its budget and submit it to the MEF

through “les fonds de concours” for budgeting. The MAGG will ensure that the Budget

is well presented and that the separation of the funds in the different budget lines will

allow to identify the grant component. This will allow the funds budget presentation

for this grant to be presented in GID accordingly, and hence, extract the financial

reporting directly from the system.

19. Accounting: An acceptable cash based accounting system with the outline of budget

components is operational according to the regulations described in the public

accounting law. The transactions in terms of commitments and disbursements are

reflected in the well-functioning Integrated Financial Management Information System

(IFMIS) named GID (Gestion Intégrée des dépenses). The overall principles for project

Inherent risk before mitigation Substa

ntial

Inherent risk after

mitigation

Moderate

44

accounting are outlined below: (a) Books of accounts for the project will be maintained

on cash basis principles. Maintaining the reporting financial to reflect all the

transaction flow of funds and issuing of the interim unaudited financial report (IUFR)

each semester; and (b) Project accounting will cover all sources and utilization of

project funds. This will include payments made and expenditures incurred.

20. Financial Management Reporting of the Project: Interim Unaudited financial report

(IUFR) will be extracted from GID and complementary information requested will be

maintained on an excel spreadsheet. From GID we will be able to extract the

commitments and disbursements. However, we will not be able to present the

commitment by categories. GIS will allow the extraction of the commitment and

disbursements by component only. Hence, this complementary information will be

prepared by the FM consultant who will compare the information prepared with the

total of the component extracted from GID to ensure accuracy. The head of the

Administrative and Financial Management Unit will review, approve and submit it to

the PMU director for approval and submission to the Bank. The PMU will produce the

IUFRs every semester and send them to the World Bank within 45 days from the end of

each semester.

The FMR’s include, in addition to a summary of project progress the following:

- Summary of funding sources and uses of funds

- Uses of funds by project component and by project category

- Cash withdrawal

- Cash forecast

Bank guidelines on financial monitoring will be communicated to the project. A sample

of FMR to use for the project has been agreed upon and is annexed to the project

implementation manual.

21. Controls: In Morocco, the rules governing funds commitment and payment

authorization are clear, well known, and enforced. The control framework is based on

the segregation of duties between the Commitment (ordonnateur) and payment

(comptable). The Ministry of General Affairs and Governance does not have the

internal control procedures formalized. Hence, a Project Implementation Manual has

been prepared, acceptable to the Bank in order to document the control environment.

The Project Implementation Manual describes, among others: controls mechanisms,

transfer and accountability mechanisms for beneficiaries.

Fiduciary responsibility for control of budget execution and monitoring is assigned to

the General Inspectorate of Finance (IGF). The Budget Directorate within the MEF

plays an important role in controlling transactions financed by external donors.

22. External Audit: Audit Arrangements. Annual Project financial statements audited by

auditors acceptable to the Bank will be submitted to the Bank within 6 months after the

end of each Fiscal Year. The audit will be comprehensive and cover all aspects of the

45

Project (i.e., all sources and utilization of funds, and expenditures incurred). The audit

will be carried out in accordance with International Standards on Auditing. The Project

team will provide the auditor with access to project related documents and records, and

information required for the purposes of the audit. The implementing agency will retain

an auditor acceptable to the Bank to perform an annual audit in accordance with

International Standards on Auditing (ISA), as issued by the international Federation of

Accountants.

The audit terms of reference should be acceptable to the Bank.

23. Annually: Audited Project Financial Statements (PFS) will be submitted to the Bank.

PFS will include: (i) a statement of sources and utilization of funds or Balance sheet,

indicating funds received from various sources, project expenditures, and assets and

liabilities of the project; (ii) schedules classifying project expenditures by components,

expenditure categories; and (iii) a statement of reimbursement made on the basis of

statements of Expenditure (SOEs). Such audits can be performed by the IGF.

24. Internal audit: The Ministry does not have an internal audit unit. Following The 2007-

2008 IGF audit report’s recommendations, three main actions are undertaken: 1) an

internal audit mission will be launched in the beginning of 2014 to review the Ministry

financial procedures. This mission will issue a report with an action plan, 2) the

recruitment of a public official ensuring the function of internal auditor and control

management is programmed for early 2014, and 3) the Organization readjustment of the

Ministry is undergoing.

25. Staffing: The PMU will manage the day to day implementation of the project. The

PMU will be housed at the Ministry of General Affairs and Governance and composed

of a Project Director, assisted by a Project Coordinator, a Procurement consultant, an

FM consultant who will reinforce the DA unit and who will be under the supervision of

the Head of the Administrative and financial management unit.

Accounting staff in the Administrative and Financial unit is composed of six public

officials with administrative, engineering and technician profiles holding positions in the

commitment, procurement, mandating payments and logistics units.

The Head of the administrative and financial unit is qualified. However, he handles

many responsibilities and will not be able to fully dedicate his time to this project. Hence,

the recruitment of an FM consultant is important to strengthen the team and to provide

support to the project. The Head of the administrative and financial unit will have to

control and supervise the work of the consultant to ensure ownership of the project by the

Ministry.

46

Funds flow and disbursement

26. The funds after their budgeting in the “Loi de Finance” will be made available to

Ministry of General Affairs and Governance. The payment justifications supporting

documents will be sent to the Directorate of Budget (MEF) for verification, approval

and then submission to the Bank according to the guidelines for the disbursement of the

Bank and the method agreed in the Disbursement Letter.

The MAGG has the below options:

1- Pre-finance the expenses, and grant disbursement will be made based on documentary

evidence or on presentation of statement of expenditures (SOEs) prepared in compliance

with the World Bank disbursement procedures. The MAGG will provide documentary

evidence and SOE, which will be submitted to the MoF, Budget Directorate, External

financing department, which will review eligibility and submit them to the World Bank

for reimbursement.

2- Direct payment: The MAGG will prepare documentary evidence in compliance with the

World Bank disbursement procedures and will submit them to the MoF. The MoF,

Budget Directorate, which will review eligibility and submit the Direct payment request

to the World Bank for payment.

3- Advance: The beneficiary may also open a designated account, dedicated to the project,

to receive advances. Thus, the supporting documents and / or statements of expenditure

will be determined by the MAGG who shall transmit them to the MEF to justify the funds

used. A request for replenishment must be submitted once the advance justified.

The counterpart in kind contribution will be well detailed and will be honored by the MAGG.

The disbursement procedures will be well detailed in the execution manual.

27. In summary, the proceeds of the grant would be disbursed in accordance with the

traditional disbursement procedures of the Bank and will be used to finance project

activities through the disbursement procedures currently used, that is Direct Payment,

Reimbursement accompanied by appropriate supporting documentation (Summary

Sheets with records and/or SOEs) in accordance with the procedures described in the

Disbursement Letter and the Bank's “Disbursement Guidelines”. The minimum

application size for direct payment and reimbursement will be the equivalent of

US$10,000.

28. In order to allow a continuation of related activities, retroactive financing is allowed to

finance eligible expenditures made prior to the Grant signing date but on or after

January 15, 2013. The aggregated amount should not exceed US$500,000 equivalent.

The Bank will honor eligible expenditures for services rendered and goods delivered by

the Project closing date. A four months' grace period will be granted to allow for the

payment of any eligible expenditure incurred before the grant closing dates.

29. Necessary supporting documents will be sent to the Bank in connection with contracts

that are above the prior review threshold, except for expenditures under contracts with

47

an estimated value of (a) US$100,000 or less for goods; (c) US$100,000 or less for

consulting firms; (d) US$50,000, or less for individual consultants, as well as training

which will be claimed on the basis of SOEs and operational costs. The documentation

supporting expenditures will be retained at the MAGG and will be readily accessible

for review by the external auditors and periods.

30. All disbursements will be subject to the conditions of the Grant Agreements and

disbursement procedures as defined in the Disbursement Letter.

31. E-Disbursement. The Bank has made available e-Disbursement for all projects. Under

e-Disbursement, all transactions will be conducted and associated supporting

documents and SOEs scanned and transmitted online through the World Bank’s Client

connection system. The use of e-Disbursement functionality will streamline online

payment processing to (i) avoid common mistakes in filling out WAs; (ii) reduce the

time and cost of sending WAs to the Bank; and (iii) expedite the Bank processing of

disbursement requests.

32. Planning of Supervision: A supervision mission will be conducted every six months

based on the risk assessment of the project. The mission’s objectives will include: (i)

ensuring that strong financial management systems are maintained for the project

throughout its life; and (ii) semi-annual review of IUFRs, review of annual audited

financial statements and management letters.

33. Action Plan:

Actions to be undertaken When

Selection of a Financial management specialist Effectiveness

Procurement Arrangements

General

34. Procurement for the proposed project would be carried out in accordance with (i) the

World Bank’s Guidelines On Preventing and Combating Fraud and Corruption in

Projects Financed by IBRD Loans and IDA Credits and Grants, known as the ‘Anti-

Corruption Guidelines’ dated on October 15, 2006 and revised in January, 2011; (ii) the

‘Guidelines: Procurement of Goods, Works, and non-consulting services under IBRD

Loans and IDA Credits and Grants by World Bank Borrowers’ (known as Procurement

Guidelines) published by the Bank in January 2011; (iii) the ‘Guidelines: Selection and

Employment of Consultants under IBRD Loans and IDA Credits and Grants by World

Bank Borrowers,’ (known as Consultant Guidelines) dated January 2011; and (iv) all

the accompanying standard bidding documents for any new procurement and the

provisions stipulated in the Grant Agreement. The various items under different

expenditure categories are described in general below. For each contract to be financed

by the grant, the different procurement methods or consultant selection methods, the

48

estimated costs, prior review requirements, and agreed time frame are set out in the

Procurement Plan. The procurement procedures and Standard Bidding Documents

(SBD) that will be used by the recipient is defined in the Project Implementation

Manual, which includes specific and detailed sections regarding Procurement.

35. Procurement under the Project is mostly for the selection of international and local

consultants for technical assistance, training and capacity building, the design,

development and implementation of policies, operational tools and various guidelines

for the 3 different components. To support the implementation of the performance

budgeting reform under the component 2, a direct administrative services contract

between the Moroccan Ministry of Finance and a consortium of Ministries of Finance

from the OECD countries is envisaged. Procurement will also concern goods and

services related to project management, logistics for the organization of training,

workshops, consultations and other capacity building events for the 3 components.

36. National Competitive Bidding (NCB) procedures adjusted as indicated below will be

used for all Goods and Non-Consulting Services contracts estimated to cost less than

the equivalent of US$3,000,000. To ensure broad consistency with the Procurement

Guidelines, the following provisions will apply when using NCB under this project.

Said procedures shall ensure that, inter alia:

a) The bidding documents include explicitly the bid evaluation method, award criteria

and bidder qualification criteria;

b) Technical, administrative and financial envelopes are opened immediately after the

bid opening session has started and prices are read aloud;

c) The bids are evaluated on the basis of the price and any other criteria expressed either

in pass/fail terms or in monetary terms;

d) Contracts are awarded to the qualified bidder who has submitted the least-cost

evaluated and substantially responsive bid as stipulated in the bidding document; and

e) Standard bidding documents and bid evaluation reports found acceptable by the Bank

are used.

37. Moreover, it has been agreed with the borrower that each contract financed from the

proceeds of this grant shall provide that suppliers, contractors and subcontractors shall

permit the Bank, at its request, to inspect their accounts and records relating to the bid

submission and performance of the contract and to have said accounts and records

audited by auditors appointed by the Bank. The deliberate and material violation by the

supplier, contractor or subcontractor of such provision may amount to “obstructive

practice”.

38. The procedures and standard bidding documents (SBD) of the borrower adjusted to

be acceptable by the Bank will be used under National Competitive Bidding (NCB).

49

Thus prior to issuing the first call for bids, a draft SBD to be used under NCB

procurement must be submitted to the Bank for approval;

39. Procurement Plan: A Project Procurement Plan for the first 18 months, dated

September 5, 2013 acceptable to the Bank has been prepared and will be updated at

least once a year. The procurement plan shall indicate which contracts shall be subject

to the Bank’s prior review. All other contracts shall be subject to Post Review.

Specific Procurement Arrangements

No Works contracts are contemplated under the project.

40. Procurement of Goods and non-consulting Services: Procurement of goods and

services related to project management, logistics for the organization of training,

workshops, consultations and other capacity building events among others, will be

carried out using the following methods:

a) National Competitive Bidding (NCB): Each package estimated to cost less than the

equivalent of US$ 3,000,000 may be procured on the basis of NCB procedures as

found acceptable by the Bank. Bidding documents acceptable to the Bank will be

used.

b) Shopping: Goods and non-consulting services estimated to cost US$ 200,000 or less

may be procured using Shopping procedures.

c) Direct Contracting: Under circumstances which meet the requirements of paragraph

3.7 of the Procurement Guidelines, goods, non-consulting Services and works may be

procured in accordance with the paragraph 3.7 of the Procurement Guidelines using

the Direct Contracting procurement method.

41. Selection of Consultants: International and local consultants services required for the

project are mostly for technical assistance, training and capacity building, the design,

development and implementation of policies, operational tools and various guidelines

for the 3 different components. NOTA BENE : the single source selection method will

be used also for the administrative services contract between the Moroccan Ministry of

Finance and a one or a consortium/association of Ministries or public administration

agencies from OECD countries, selected on basis of best expertise to provide an

administrative services (non-commercial) agreement on cost recovery basis to provide

assistance, expertise and support to the implementation of the performance budgeting

reform under the component 2, (despite the fact that this is not a commercial

consultancy services contract).

42. The following Bank methods and corresponding standard documents will be used:

a) Quality & Cost Based Selection (QCBS) for all types of consultant services.

50

b) Least-cost Selection. Services for assignments which meet the requirements of

paragraph 3.6 of the Consultant Guidelines may be procured using the Least-cost

Selection method in accordance with the provision of paragraphs 3.1 and 3.6 of the

Consultant Guidelines.

c) Selection Based on Consultant’s Qualifications (CQS). Services estimated to cost less

than US$100,000 equivalent per contract may be procured in accordance with the

provisions of paragraphs 3.1 and 3.7 of the Consultant Guidelines.

d) Single Source Selection. Under circumstances which meet the requirements of

paragraph 3.8 of the Consultant Guidelines for Single Source Selection, consultant

services may be procured in accordance with the provisions of paragraph 3.8 through

3.11 of the Consultant Guidelines, with the Bank’s prior agreement.

e) Individual Consultants (IC). Services for assignments that meet the requirements set

forth in the paragraph 5.1 of the Consultant Guidelines may be procured under

contracts awarded to individual consultants in accordance with the provision of

paragraph 5.2 and 5.3 of the Consultant Guidelines. Under the circumstances

described in paragraph 5.6 of the Consultant Guidelines, such contracts may be

awarded to individual consultants on a sole-source basis.

Short lists may be composed entirely of national consultants for contracts of less than

US$200,000 equivalent per contract, complying with the remarks mentioned above.

Publication of Results and Debriefing

43. Online (UN Development Business, and /or Client Connection) publication of contract

awards would be required for all Direct Contracting, and the Selection of Consultants

for contracts exceeding a value of US$200,000. All consultants competing for an

assignment involving the submission of separate technical and financial proposals,

irrespective of its estimated contract value, should be informed of the result of the

technical evaluation (number of points that each firm received) before the opening of

the financial proposals. The borrower would be required to offer debriefings to

unsuccessful bidders and consultants should the individual firms request such a

debriefing.

Fraud, Coercion, and Corruption

44. All procuring entities, as well as bidders, suppliers, and contractors shall observe the

highest standard of ethics during the procurement and execution of contracts financed

under the project in accordance with paragraphs 1.16 & 1.17 of the Procurement

Guidelines and paragraphs 1.23 & 1.24 of the Consultants Guidelines.

51

Frequency of Procurement Supervision

45. Supervision of Procurement by the World Bank is an integral part of Project

supervision and implementation monitoring. In addition to the prior review supervision

to be carried out from Bank offices, it is recommended that two (2) supervision

missions take place during a year to visit the project and to carry out post review of

procurement actions.

46. Based on the risk associated with procurement (substantial), as mitigation measures, the

following actions need to be implemented:

a) Hiring of an external consultant to help carry out procurement and build capacities

within the Ministry of General Affairs and Governance (MAGG);

b) Organization of training in procurement for all staff involved in the project

implementation (MAGG, MoF, MCRP and all other concerned public entities);

c) Preparation of Standard Bidding Documents for NCB in accordance with the

Procurement Guidelines and found acceptable by the World Bank for Goods and

Non-consulting Services; these documents, taking into consideration required

adjustment in order to be acceptable to the Bank, will be submitted for review and

approval to the World Bank;

Monitoring & Evaluation (M&E)

47. M&E organizational arrangements. The M&E system will be based on the agreed

results framework and monitoring arrangements (See Annex 1). The PMU will be

responsible for supervising the M&E activities at component and PDO level. For each

component the lead ministry will be in charge of the M&E of its own project activities

and report on a quarterly basis to the PMU at the MAGG. The PMU will provide

quarterly progress report to the Bank. Every semester a report will synthetize the

progress achieved over the last 2 quarters, the main challenges, risks and risk mitigating

measures. It will provide an assessment of the project indicator foreseen in the results

framework.

48. M&E actions. The project M&E system will be complemented by specific M&E

actions funded under the project or by respected independent external surveys publicly

available. The former include on-line user surveys and an evaluation to be conducted

under component I on the implementation of the public consultation policy as well as

an external Public Expenditure and Financial Accountability (PEFA) assessment

funded under component II. The results from external independent assessments, such as

World value survey, on citizen’s engagement as well as from the Open Budget Index on

fiscal transparency will further feed the project’s M&E system. Further, the project will

also support the development of reform specific M&E systems. For instance the

52

national dialogue on public consultation will have its own M&E system, including a

feedback mechanism for participants, a monitoring system for the implementation of

the new public consultation policy and external evaluations. Likewise, component II

will support the development of a government wide performance M&E system in the

context of the budget reform, comprising performance monitoring integrated in the

budget cycle, ex-post performance audits and evaluations, associating external experts.

These different M&E systems, once operational, will further strengthen the project

M&E system and facilitate its alignment with the government’s priorities and

information systems. This will also improve the sustainability of results beyond the

project duration.

53

Annex 4: Operational Risk Assessment Framework (ORAF)

Morocco: New Governance Framework Implementation Support Project

Project Stakeholder Risks

Rating:

High

Description:

A. The risk of challenges in program ownership by Government,

project stakeholders and donor community is low. The proposed

project responds to the high level directions outlined by

Morocco’s 2011 Constitution that calls for the “inclusive

participation in government decision making (Articles 12-15);

balanced public finances (Article 77); and advancement of the

regionalization agenda through principles of good governance,

greater accountability, and improved representation.”

B. The various project components are led by different counterparts

across the respective reform areas. Potential risks include limited

capacity or mandate constraints in clients that are relatively new

to the Bank such as the Ministry charged with relations with

Parliament and Civil Society (MCRP), compared to the solid

relationship of trust which has been established with the Ministry

of Economy and Finance (MEF) through past engagements in the

area of public financial management reform.

C. The third component of the project includes regions and local

governments as counterparts. Capacity challenges vary across

the project components, stakeholders both at central and local

levels as well as among NGOs.

Risk Management:

A. Beyond capacity building and institutional strengthening measures, no further mitigation measures

are foreseen.

B. Beneficiary perceptions will be assessed throughout the project, through reform specific M&E

systems and external surveys. The project and the Bank will carry out /continuous monitoring and

supervision.

C. The project will dedicate resources to systems and capacity development at various levels.

Resp: Client and

Bank

Stage: Through

implementation

Due Date : During

implementation Status: in progress

Implementing Agency Risks (including fiduciary)

Capacity Rating: Substantial

Description: Component I: The new Constitution has expanded the

scope and mandate of the former Ministry charged with relations

with Parliament to include affairs relating to government-civil

society engagement. This new mandate will pose challenges in

regards to capacity and competences, thus potentially affecting

oversight, preparation, management and implementation of planned

activities.

Component II: The Bank has a long-standing relationship with the

main counterpart, the Ministry of Economy and Finance which helps

to minimize uncertainties in regards to capacity constraints and

reform ownership.

Risk Management: Risk will be mitigated through hand-holding technical assistance as well as the

carrying out of training seminars for public administration staff with regards to public consultation,

petitions and motions, e-participation methods, and monitoring and evaluation. The seminars will be

designed with a flexibility component to allow trainings to adjust according to specific capacity needs.

In regards to the regionalization agenda, there is strong ownership on the part of the Ministry of

Interior to push these new reforms forward and strong expectations at the local level for results, thus

stimulating momentum for rapid progress. The program as designed will aim to strengthen local

government capacity as well as capacity of the MoI through international and local expertise, training

seminars, and a strong information and communication campaign to raise understanding and awareness

of these reforms both within government and externally.

54

Component III: The regionalization agenda has been a priority in the

country’s development plan for the past decade. Nonetheless, little

progress has been made in materlizing these objectives. Risks may

potentially arise in regards to political ownership, as well as capacity

constraints on the level of the regional or local governments to

successfully implement these new reforms. Expectations are

particularly high at the local level, considering their direct interface

with citizens for numerous basic public services.

Resp: Client and

Bank Stage: Implementation

Due Date: continuous

during implementation

Status: To be put in

place once the project is

approved

Governance Rating: Moderate

Description: Given the strong emphasis on governance reforms in

the constitution and the new government’s development program,

there seems to be broad consensus about the importance of

strengthening government accountability, transparency, and

participation in order to improve the acceptance and effectiveness of

its development policies. It is also recognized that past public sector

and governance reforms failed to yield visible and tangible results for

the population, as evidenced by the government’s agreement with the

findings and recommendations of the PARL series’ implementation

completion and results report (World Bank: June 30, 2011).

Risk Management: Proper sequencing and phasing of reforms aim to address potential difficulties in

maintaining reform momentum across the different reform components under this project. The

Government aims to address this by combining visible short-term measures with more medium-term

structural reforms in order to build momentum and consensus around visible and successful reform

initiatives in each area.

Resp: Client and

Bank

Stage: through

implementation Due Date : ongoing Status: in progress

Project Risks

Design Rating: Moderate

Description: Given the innovative and cross-cutting nature of the

reforms covered under this project as well as involvement of various

counterparts each with varying capacity constraints, there might be a

risk regarding varying implementation success across the different

components. Due to the medium term nature of the reforms, there is a

risk for limited short term results.

Risk Management: The project design incorporates the principles of flexibility to accommodate for

the long-term nature of these reforms as well as potential factors that might affect overall progress.

Based on progress on the ground, respective reform components will be reviewed and revised, as

needed, during the mid-term review. The project design aims at minimizing the risks by focusing on

an integrated and holistic approach, supporting three strategic and intertwined reforms both at the

central and local government level.

Resp: Client and

Bank

Stage: Through

implementation. Due Date : ongoing Status: in progress

Social & Environmental Rating: Low

Description: The grant funds only TA activities and there are no

direct social or environmental safeguards risks envisaged with respect

to this operation which is rated as a Category C.

Risk Management: No specific mitigation measures are foreseen.

Resp: N/A Stage: N/A Due Date : N/A Status: N/A

Program & Donor Rating: Low

Description: No risk is envisaged with respect to the Transition

Fund which will be providing the grant financing for this project. Risk Management: No specific mitigation measures are foreseen.

Resp: N/A Stage: N/A Due Date : N/A Status: N/A

Delivery Monitoring & Sustainability Rating: Moderate

55

Description: Overall responsibility for oversight and monitoring of

the project rests with Ministry of General Affairs and Governance

(MAGG). Building on the positive experience accumulated over the

course of several World Bank budget support operations, MAGG will

continue to take the lead in monitoring progress in implementation of

this program.

Risk Management: Bank staff both in HQ and in the field will continue to maintain dialogue with the

key counterparts and the relevant sector ministries and will conduct periodic reviews of the

Government’s reform program and activities supported under this project. Specific attention will be

devoted to monitoring the indicators and goals of the program.

Resp: Client and

Bank

Stage: through

implementation Due Date :ongoing Status: in progress

Overall Implementation Risk Rating High

56

Annex 5: Implementation Support Plan

Strategy and Approach for Implementation Support

1. Implementation Support Plan

The Bank will closely monitor and support this strategic technical assistance project, which is part of an

integrated support program to Morocco’s governance reforms, including inter alia the Transparency and

Accountability Development Policy Loan (Hakama), policy advice and technical assistance financed by the

Bank, the MDTF and dedicated IDF grants on the procurement reform. The Bank has a regular policy dialogue

on the reforms supported by this project and established close working relations with its main stakeholders. The

Governance mandate of the Ministry of General Affaires and Governance, which is the implementing agency, is

new (February 2012) and its focus is traditionally more on policy coordination and reforms. The Ministry has

limited experience in the implementation of projects and has thus established a project management unit to help

implement it. Considering the cross cutting nature of the activities supported and the number stakeholders, a

steering committee has been set up to ensure the guidance and coordination of project activities. This project

implementation support plan outlines the main steps the Bank intends to take to assist the implementing agency

(MAGG), the Steering committee and the ministries involved in the implementation of the activities foreseen

2. What would be the main focus in terms of support to implementation during:

Time Focus Skills needed Resource

Estimate

Partner Role

First twelve

months

Advice on project

implementation;

monthly local

supervision; build

the capacity of

project

stakeholders and

assist in the design

of ToRs. Assist in

the design and set

up of the twinning

arrangement for

the budget reform

Project

management

experience,

technical

knowledge in

the thematic

areas of

support +

FM +

Procurement.

USD 100 000

Active participation in the

project steering committee and

activities; collaborative

approach to maximize

synergies among the project

activities.

12-48 months Policy dialogue

and bi-monthly

local supervision;

capacity building;

policy advice and

in-house technical

assistance on the

supported reforms

Project

management

experience,

technical

knowledge in

the areas of

support.

USD 100 000

per annum

Continued active cooperation

from all project stakeholders

and coordination among them,

including through the steering

committee.

57

Skills Mix required

Skills Needed Number of

Staff Weeks

Number of

Trips

Comments : Input

G&PS specialist,

TTL

Public sector

and engagement

specialist

Procurement

specialist

FM specialist

Team assistant

24

8

4

2

4

Field based

2 combined

with other

mission

Field based

Field based

Field based

Policy dialogue, project management and

supervision; communication; technical assistance on

the budget reform and fiscal transfers

Project supervision/ ISR + communication+ Policy

dialogue and TA on the civic engagement

component

Implementation support; Supervision, PR

Implementation support; FM supervision and audit

review.

Correspondence, Filing, mission planning