Table 1: Summary of CPS Results Matrix Program Evaluation (FY07-FY15) WB Strategy Outcomes Intermediate Indicators and Milestones Progress and Status as of Now Lessons Learned World Bank Program PILLAR 1: Fiscal Consolidation and Improving Public Sector Efficiency (Satisfactory) Improved fiscal management by making the MTEF operational (Achieved) There was no intermediate indicators. DPL series supported the Government with implementation of MTEF and preparation of Program Based Budgeting (PBB) in 2007/08 budget. In addition, PEFA report 2011 also helped to improve the policy dialogue. A fully-fledged Program Based Budgeting (PBB) embedded in a three year MTEF has been applied for the budgeting framework for Central Government since 2008/2009. The effectiveness of the PBB-MTEF continues to be improved. The government continues to place emphasis on the preparation of line ministry strategies that are fully consistent with the PBB template and also improve the linkages between the ministry plans with macroeconomic projections, fiscal strategy and budget process. Improved budgeting from an input based annual exercise to a performance based multi-annual exercise linking Some of the indicators supported through DPL series were adjusted during the crisis period have and most of them have been achieved. The Government’s reform program through DPL was maintained even after the financial crisis. Programmatic series was flexible in responding to the needs of the country. Bank’s response to the crisis was time bound. Government’s strong commitment and leadership at the design and implementation of the policy reform have been important in implanting the reform agenda. Since the country moved to the second generation reforms, engagement with sector ministries should be deepened to ensure ownership of the reform plan at the ministries level. Lending: DPL series (1,2,3,4), Public Sector Performance DPL (1,2) AAA/TA: CEM, Exchange rate and output fluctuations in a small open economy, PER, ROSC, Civil Service Reform Policy Note, Mauritius Growth and Shared Prosperity, Building Analytical Capacity to raise Public Sector Efficiency, SOE’s fiscal risks, public sector performance- monitoring and evaluation.
P1-1: Aggregate expenditure out-turn compared to original approved budget 2007 PEFA score: A 2010 PEFA score: B P1-3: Aggregate revenue out-turn compared to original approved budget: 2007 PEFA score: A 2010 PEFA score: A (3) Enforcement of new procurement rules as measured by audits ( Achieved) Adoption and Implementation of new Procurement Act (Achieved) Public Procurement Act of 2006 was enacted. The international best practice standards have been addressed in new procurement legislation enacted in December 2006 which replaced the Public Procurement Transparency and Equity Act of 2000 in 2007/2008. This has resulted in more efficient procurement and better value for money in public expenditure. As prescribed under the Act officials for PPO, the Central Procurement Board and the Independent Review Panel were appointed in 2007/2008. Lending: DPL series (1,2,3,4), Public Sector Performance DPL (1,2) AAA/TA: CEM, Exchange rate and output fluctuations in a small open economy, PER, ROSC, Civil Service Reform Policy Note, Mauritius Growth and Shared Prosperity, Building Analytical Capacity to raise Public Sector Efficiency, SOE’s fiscal risks, public sector performance- monitoring and evaluation. (4) Budget transfers from Central Government to parastatals is reduced (Mostly Achieved) Consolidation of 4 parastatal bodies in the water sector to create a single Water Authority (Not Achieved ) Cabinet established Parastatal Reform Steering Committee in 2008 (prior action to DPL 2). Lending: DPL series (1,2,3,4), Public Sector Performance DPL (1,2)
Action plan to reform selected parastatal began to improve operational efficiency and service delivery. These are: Central Water Authority, Wastewater management authority, central electricity board and Sugar Planters Mechanical Pool Corporation. Six out of 15 SOE’s had an operational deficit in 2010 the highest number since 2006. (Source: IMF 2012 Article IV) Government transfer to SOEs are estimated at 2.7 percent of GDP in 2010. SOE’s debt to GDP has declined from 12.1 % of GDP to 5.2% of GDP in 2013. In 2010 the Government established Office of Public Sector Governance (OPSG) for the implementation and monitoring of SOE reform initiative. DPL series supported OPSG in identifying areas where the corporate governance of SOE’s has improved such as the implementation of audit committees and improved internal controls. It has also supported improved systems for performance monitoring. AAA/TA: CEM, Exchange rate and output fluctuations in a small open economy, PER, ROSC, Civil Service Reform Policy Note, Mauritius Growth and Shared Prosperity, Building Analytical Capacity to raise Public Sector Efficiency, SOE’s fiscal risks, public sector performance- monitoring and evaluation.
OPSG launched Parastatals Information Management System(PIMS) and is implementing comprehensive performance monitoring framework to improve corporate governance of SOEs. The PIMS data currently contains 20 SOEs performance report and it has been published in the OPSG website. (5) Improved system and procedures that reward performance (Achieved) A strategy for human resources is prepared (Not Achieved ) Performance management system was being piloted in three departments followed by 16 ministries. The project rolled out to whole Civil Service from 2008. Approximately 90 percent of the public officers have signed their Performance Agreement which defines their key tasks, performance standards and required competencies. A Strategy for Human Resources were not prepared. Ministry of Civil Service and Administrative Reform (MCSAR) was s preparing a human resource strategy to modernize the management of the civil service. However this has been delayed. Min of Civil Service and Administrative Reform Lending: DPL series (1,2,3,4), Pub Sector Performance DPL (1,2) AAA/TA: CEM, Exchange rate and output fluctuations in a small open economy, PER, ROSC, Civil Service Reform Policy Note, Mauritius Growth and Shared Prosperity, Building Analytical Capacity to raise Public Sector Efficiency, SOE’s fiscal risks, public sector performance- monitoring and evaluation.
barriers could have a positive effect on reducing air transport cost, stimulating connectivity and supporting tourism growth among other sectors (8) Improved telecommunications infrastructure (Achieved) Establishment of a fiber optic cable under EASSY project (Achieved) The Government implemented International Private lease Circuit (IPLC) prices by 50% between 2003 and 2008. Amendments have been made to the Information and Communication and Technologies Act to be in line with international standards. These above changes were prior actions to DPL series has led to substantial increase in ICT enabled business. Cabinet approved National Broadband policy in February 2012. Cabinet approved amendment to ICT Act in 2012 to introduce a definition of Significant of market Power (SMP) and equip the ICT Authority with the appropriate tools to regulate markets in which there is evidence of SMP. ICTA published tariff setting guidelines on ICTA official website in May 2012. This will promote greater price Lending: DPL series (1,2,3,4), Private Sector Performance DPL (1,2) AAA/TA: Competitiveness Update, Next Generation Business Reform TA, Improving Competitiveness TA, ICT-Sector, Improve Regulation and raise value added in the financial sector, Improvement in Business and Trade Environment
The enhanced single window will also be linked to the Government e-payment gateway. financial sector, Improvement Business and Trade Environment PILLAR 3: Improving the Investment Climate (Satisfactory) (11) Reduction in cost of doing business as measured by surveys (land, labour regulations) (Achieved) Creation of a one stop shop business registration mechanism (Mostly Achieved) Improve recovery rate of creditors (Achieved) Mauritius ranks 29 in the Ease of Doing Business in DB 2015. Number of days to start a business reduced from 46 (2006) to 29 (2015) Number of days it takes to enforce commercial contract reduced from 750 (2006) to 44 (2015) Dealing with construction permit 162 (2006) to 117 (2015) A building and land use permit is issued within 14 days. Elimination of trade license. No waiting time to pay trade fee. Reduction in time taken to register property from 210 days( 2007) to 2 (2014)days. The coverage of the credit information bureau is expanded to include all financial institutions. The % of adults covered has increased from 10% (2007) to 50% (2011) to 74.56% (2015). The engagement of the bank in these areas were through a programmatic DPL. In Mauritius, it must be ensured that: (i) the lending or TA instrument is aligned with the government’s priorities and leadership, (ii) the analytical work that preceded the operation helped provide a road map for reform, which shaped the eventual architecture of the project, (iii) there is consensus regarding the reforms that will result in clear and achievable outcomes, (iv) there is political commitment from the sector ministries participating in the reform agenda, (v) technical assistance is provided in parallel to the operations to build capacity as well as nurture collaboration and improve performance, and (vi) the loan is designed to include an appropriate degree of flexibility to allow the government to respond to emerging crises as well as for Lending: DPL series (1,2,3,4), Private Sector Competitiveness DPL (1,2), Infrastructure Project AAA/TA: FSAP Update, Doing Business (08,09), Investment Climate Assessment, Skills Development and Technology Innovation, Next Generation Business Reform TA, Financial Sector Dialogue and TA, , Improving Competitiveness NLTA, Road Safety Management Capacity Review
provides a maximum of 12 months of transitional assistance to employees who wish to take the opportunity of the scheme to seek job replacements Reduce difficulty of firing index from 50 (2006) to 36.8 (2010). The work and residence permit have been combined into only Occupational Permit (OP). With the enactment of Business Facilitation Act in 2006, it takes three days to process and obtain an occupation permit which is issued for a maximum period of three years. The government made reforms in increased mandatory paid annual leave, eliminated the requirement to seek prior approval for redundancy dismissals and reduced redundancy costs (DB 2010) The Mauritius reduced the maximum duration of contracts. (DB 2015) AAA/TA: FSAP Update, Doing Business (08,09), Investment Climate Assessment, Skills Development and Technology Innovation, Next Generation Business Reform TA, Financial Sector Dialogue and TA, , Improving Competitiveness NLTA, Road Safety Management Capacity Review (13) A working land market with reduced Government intervention (Achieved) Development and adoption of a land administration valuation information and management system (LAVIMS) (Achieved) The government amended Transcription and Mortgage Act in 2012 in order to prescribe time limits consistent with business standards to register property. The program (METAP)to support these activities was closed but the Government went ahead to implement without Bank’s support. Lending: DPL series (1,2,3,4), Private Sector Competitiveness DPL (1,2), Infrastructure Project
The Doing Business Survey 2008 showed that in 2008, it took 210 days to register land titles in Mauritius. The Investment Lending Project METAP included funding technical assistance to support computerization of the Registrar General’s Office and the improvement of land registries’ effectiveness so as to facilitate the registration and securitization of land based assets. The objective was to reduce the number of days taken to register land titling. As to date the LAVIMS has been made operational. As per the 2015 Doing Business Report it takes 14 days and 10.6% of the property value to complete a property transfer in Mauritius. LAVIMS is really four in one including: development of the Cadastre; implementation of a digital Deeds Management System; Valuation of properties; and Information Management. The Registrar General has also computerized the electronic Register of Deposit that would enable the platforms to become fully transactional in the medium AAA/TA: FSAP Update, Doing Business (08,09), Investment Climate Assessment, Skills Development and Technology Innovation, Next Generation Business Reform TA, Financial Sector Dialogue and TA, , Improving Competitiveness NLTA, Road Safety Management Capacity Review
term to allow online access, of documents and e-payments. (14) Improved traffic flow along the main corridor in compliance with road safety measures (Partially achieved) Implementation of an integrated plan for traffic decongestion and public transport improvement (Not achieved) Although the Infrastructure Project did not directly influence the outcome indicator, we have used proxy indicators based on achievements in the roads sector through the Infrastructure project. They are: Improvements were made through infrastructure project: Travel time reduced (QM road) from 15 min to 6 min Number of accidents reduced on QM road from 11 to 5 Number of km of roads have been upgraded from 0 to 10. 5 km Number of km road maintained from 0 to 17 km This indicator was carried over from the FY02 CAS when there were activities to justify their inclusion and a prospective urban transport operation. In addition, the proposed Road Decongestion Program (which was eventually taken forward as a PPP but dropped before financial closure) informed the selection of the indicator about traffic flow with Bus modernization study providing the base analysis. This study was dropped due to the political opposition from unions. However, when the decision was made to use private finance, this indicator became doubtful. Lending: Infrastructure Project AAA/TA: Road Safety Management Capacity Review PILLAR 4: Democratizing the Economy through participation, inclusion and sustainability (Mostly Satisfactory) (15) Significant expansion of education (technical and general) (Achieved) Potential efficiency gains are identified at all levels (Partially achieved) Gross enrollment in tertiary education increased from 34 percent in 2006 to 46 percent in 2012. Over the past several years expansion of post-secondary education was mostly driven by the planned internationalization of the sector which has been a flagship program of the Ministry of Tertiary Education. The strong focus The CPS matrix was not entirely aligned with the agenda of the GoM as it did not reflect the focus on internationalization of tertiary education. Lending: Public Sector Performance DPL (1,2), HIV/AIDs (IDF), Indian Ocean Commission Support AAA/TA: Social Protection Review, Social Protection TA, Health Policy note, Education Status Report,
on attracting foreign students into tertiary education in Mauritius has occupied most of the policy dialogue between the Bank and the GoM and the Bank’s support to the expansion of post basic especially in technical education has been somehow modest. Ministry of Education and Human Resources implements new curricula for pre-vocational education, including one for the training of trainers. Technical and vocational training relating to domestic workers, ICT, mechanics, welding and several ones from the hotel industry had been provided to some 2,932 unemployed below SC Level while 348 have been placed in different sectors of the economy. The Pre-vocational system was extended to 4 years. As of December 2014, there were 1744 pre-vocational students awaiting graduation by the end of 2014. Safeguard Country Systems Pilot. (16) Increased articulation between the education strategy (in particular at the post-secondary level) and the overall economic growth Development of a renewed strategy of the post-secondary education sector strongly linked with the An education and human resource strategy plan was prepared in 2008 that diagnoses education sector needs, identifies objective Most of the recent focus in policy actions on tertiary education has been on attracting a growing number of international students and Lending: Public Sector Performance DPL (1,2), HIV/AIDs (IDF),
strategy (Mostly Achieved) overall economic strategy. (Mostly Achieved) and priorities and outlines options. The recently developed Tertiary Education Strategy (2013-2025) includes explicit links with the needs of the labor market as well as the importance of the sector for innovation and economic growth. It is based on the consultation with the Bank and aims to develop Mauritius as an exporter of world-class tertiary education services. Ministry of Education and Human Resources implemented in 2009 a new curricula for pre-vocational education, including one for the training of trainers. efforts on making the tertiary education sector more relevant to the needs of the labor market have been somehow neglected in the policy dialogue. Indian Ocean Commission Support AAA/TA: Social Protection Review, Social Protection TA, Health Policy note, Education Status Report, (17) Elimination of bias (financing, regulatory, skills, etc) against SMEs as measured by increased number of new SMEs registered (Achieved) An SME consultancy services schemes to assist start-ups and existing SMEs put in place (Achieved) The MBGS has been set up and currently provides business development support and financing to start ups and existing SMEs. Over 150 such SMEs have been provided with assistance since inception. The Private Sector Competitiveness DPL also engaged with government to streamline the numerous overlapping business development services provided by the numerous Although there was adequate political buy-in of the Project at the design stage, the political commitment, support and ownership for implementing these reforms eroded at both sector ministry and Ministry of Finance level. The coordination between sector ministries and MoFED needs to be addressed at design stage. For the DBM, the reform was a difficult one, given the political economy situation, and the time frame was underestimated. As Lending: Public Sector Performance DPL (1,2), HIV/AIDs (IDF), Indian Ocean Commission Support AAA/TA: Social Protection Review, Social Protection TA, Health Policy note, Education Status Report, Safeguard Country Systems Pilot.