THE POWER OF PARTNERSHIPS Myanmar Multi-Donor Trust Fund
Annual Report Inception July 2014 – June 2015
Pub
lic D
iscl
osur
e A
utho
rized
Pub
lic D
iscl
osur
e A
utho
rized
Pub
lic D
iscl
osur
e A
utho
rized
Pub
lic D
iscl
osur
e A
utho
rized
TABLE OF CONTENTS
EXECUTIVE SUMMARY .................................................................................................v
Section I: Introduction/Background: The Myanmar Story ............................................1
Section II: The MDTF Program ......................................................................................3
Window 1: Social Development and Inclusion .......................................................................... 4
Window 2: Institutional Strengthening ...................................................................................... 9
Window 3: Implementation Support ....................................................................................... 12
Window 4: Private Sector Development ................................................................................. 13
Section III: Program Summary .....................................................................................17
Section IV: Program Administration .............................................................................19
Annex A: Myanmar Multi Donor Trust Fund Financial Report
as at June 30, 2015 ......................................................................................................21
Donor Commitments and Deposits (as at June 30, 2015) .......................................................21
Disbursements by Activity: Actual and Projections (as at 30 June 2015) .................................22
Donor Contributions Received and Projected ..........................................................................23
Annex B: Myanmar Multi Donor Trust Fund Results Matrix .......................................24
vi
ABBREVIATIONS AND ACRONYMS
BE (World) Bank Executed
CPF World Bank Group’s Country Partnership Framework
CSO Civil Society Organizations
DFAT (Australia) Department of Foreign Affairs and Trade
DICA Directorate of Investment and Company Administration
DLI Disbursement Linked Indicators
DTIS Diagnostic Trade and Integration Study
EGRA Early Grade Reading Assessment
EITI Extractive Industry Transparency Initiative
FDI Foreign direct investment
FESR Framework for Economic and Social Reforms
GoM Government of Myanmar
IDA International Development Association
IFC International Finance Corporation
IMF International Monetary Fund
M&E Monitoring & Evaluation
MBF Myanmar Business Forum
MDTF Multi-Donor Trust Fund
MIC Myanmar Investment Commission
MNPED Ministry of National Planning and Economic Development
MOC Ministry of Commerce
MoE Ministry of Education
MoF Ministry of Finance
MOU Memorandum of Understanding
MTFF Medium Term Fiscal Framework
PFM Public Finance Management
PPD Public-Private Dialogue
RE Recipient Executed
SC Steering Committee
SME Small and medium enterprises
UMFCCI Union of Myanmar Federation of Chamber of Commerce & Industry
VBF Vietnam Business Forum
WBG World Bank Group
vii
EXECUTIVE SUMMARY
This is the first annual report of the MDTF. A semiannual report was delivered to the Steering Committee in May 2015. This annual report builds on that report and covers the period from inception in July 2014 until 30 June 2015.
The Myanmar Partnership Multi-Donor Trust Fund (MDTF) was established as a collaboration between the World Bank Group1 (WBG), the Department for International Development (DFID), the Australian Department of Foreign Affairs and Trade (DFAT), and the Government of Myanmar (GoM). The Kingdom of Denmark joined this partnership in December 2014.
The objectives of the MDTF are to: (i) Support Myanmar’s transition and the implementation of the Government’s Framework for Economic and Social Reforms (FESR) and National Development Plan; and (ii) Enhance cooperation between the World Bank Group (WBG) and Donors to the Trust Fund.
The MDTF Steering Committee (SC) has endorsed five activities falling under three main programs: (i) School Grants and Stipends Program; (ii) Public Financial Management and Public Administration Program; and (iii) Investment Climate and Competitiveness Program. The MDTF is currently valued at US$59,330,034 of which US$32,973,842 has been received from donor partners. Disbursements from the contributions received are approximately 36 percent or US$11,855,474. Disbursements are projected to increase to over 60 percent or approximately US$27,600,000 by the end of June 2016.
Although still in the early stages of implementation, activities financed through the MDTF and implemented collaboratively with partners or solely by government have seen impacts at both the household level and public levels. For example, the school grants and stipends program has helped increase operating budgets for schools and make schooling more affordable for the first time in decades; the public sector development program has transformed how budgeting and planning is done in the country through the introduction of top down availabilities driven expenditure ceilings to all spending agencies across the Union, States, and Regions. This work has drawn together public officials and private business owners seeking achievements to inspire greater development and investment in Myanmar. The introduction of self-assessment tax declarations for large taxpayers has not only made the tax system fairer, but also led to an increase in tax effort. Concurrently, support is being provided to the Public Accounts Committee of the Parliament to strengthen parliamentary oversight. Seeds are also being sown through hands-on training to improve procurement, tax administration and governance on all levels.
Some key achievements reached through the MDTF activities include:
The MDTF’s student stipends and school grants programs. The Ministry of Education (MoE) met the goal of distributing designated funds to more than 200 townships according to a robust and transparent formula. This achievement came three years ahead of schedule. Students, teachers, administrators and parents herald the differences these programs have made. One parent noted: “We no longer worry for children’s learning.”2
1 World Bank Group for the purpose of this MDTF includes the International Bank for Reconstruction and
Development and the International Development Association (collectively referred to as the World Bank) as well as the International Finance Corporation.
2 Quote of one parent interviewed in the Qualitative Assessment of Grant and Stipend Program published in March 2015.
viii
Through the Public Financial Management and Public Administration program, important advances were made in the tax-collection system, including measures to increase transparency and efficiency. Technical assistance was provided on public investment management, debt management, policy-based budgeting, parliamentary oversight, and tax audits using a self-assessment system. The Ministry of Finance (MoF) now is on track to meet recently enacted requirements on publication of the Medium Term Fiscal Framework policy statement, Debt Sustainability Analysis, Budget Strategy Paper and the Citizens’ Budget. Steps also were taken to make the flow of resources more predictable. In addition, direct World Bank assistance was provided to improve Myanmar’s procurement system. Perhaps the most important achievement of the program is the fact that the government has been able to maintain fiscal discipline while changing the structure of public finances in favor of more resources to social and economic sectors. A significant risk identified at the time the reform effort began was one where the pressures on the PFM system could have destabilized service delivery. This risk was effectively managed and mitigated.
Work to improve Myanmar’s investment climate and competitiveness led to progress in the revision of regulatory mechanisms and the strengthening of the advocacy role of the private sector. The Directorate of Investment and Company Administration (DICA) issued new regulations liberalizing Foreign Direct Investment and listing activities that no longer qualify for customs duty or commercial tax exemptions. The Myanmar Business Forum (MBF) was established, leading to vital public-private consultations and discussions.
1
Myanmar has embarked on a three-pronged transition since 2011, moving from authoritarian rule to democratic governance, from a centrally directed economy to market-oriented reforms, from over 60 years of conflict to peace. The country has undergone a remarkable series of reforms in the past four years. This ongoing transformation reached another milestone in November 2015, when the former opposition party won the most seats in parliamentary elections and the former governing party accepted defeat. The new government to emerge in 2016 confronts a critical challenge: Making good on the promise of Myanmar’s reforms through sustained, long-term efforts that can translate into tangible improvements in the lives of the majority of the population.
Myanmar is among the poorest countries in Asia, has among the worst social indicators in the region, and has one of the lowest levels of access in the world to phones, roads, and other infrastructure. The country holds abundant natural resources but these have not been managed well or tapped with transparency, causing loss of revenue, corruption, and community grievance. Its rich farmland has been mismanaged for decades, leading to high levels of poverty and chronic rural indebtedness. Long isolation has left the country poorly integrated in the region and in the world.
In response to many of these challenges, the Government of Myanmar (GoM) outlined an ambitious program for change in the Framework for Social Reforms (FESR), a set of policy priorities published in 2013. The GoM refers to the FESR as a three-year “reform bridge” to keep Myanmar on track toward the country’s 20-year National Development Plan (NDP), which aims to create a democratic society and close the gap with the powerhouse economies of Asia. The FESR states: “By becoming a modern, developed nation, Myanmar will be able to contribute more effectively to maintaining peace and stability in the region as well as in responding to the problems currently causing deep concern in the international community.”
Development Partners support the GoM reform agenda by aligning aid with the FESR and NDP strategies, and by working closely with government counterparts to implement the many reform activities now underway. The Myanmar Partnership Multi-Donor Trust Fund (MDTF) was established in 2014 to help donor partners get the most impact possible out of resources designated to support Myanmar’s reform programs. The MDTF is a collaboration between the World Bank Group (WBG), the Department for International Development (DFID), the Australian Department of Foreign Affairs and Trade (DFAT), the Kingdom of Denmark and the Government of Myanmar (GoM). The MDTF has defined two explicit objectives: (i) Support Myanmar’s transition and the implementation of the FESR and National Development Plan; and (ii) Enhance cooperation between the World Bank Group (WBG) and donors to the trust fund. These objectives support the goals of the GoM, Donor Partners and the WBG.
The MDTF plays a key role in bolstering GoM’s reforms and increasing chances for lasting success. The WBG’s Country Partnership Framework (CPF) for 2015-2017 stresses that a key challenge to reform “will be to ensure that the political, economic and peacemaking transformation gives voice to the whole population, benefits the country’s most needy and vulnerable, and develops the non-state sector to support broad-based economic growth.” The MDTF provides a strong coordination and planning mechanism between key donors
Section
IIntroduction/Background: The Myanmar Story
2
and the GoM. It also serves as a model that enables donor partners to provide financing quickly and efficiently. The MDTF Steering Committee3 (SC) meets twice a year and provides strategic guidance and general oversight of the MDTF.
The MDTF provides co-financing to large IDA programs implemented by the GoM, finances stand-alone activities implemented by GoM or the WBG, and provides funds for activities to ensure enhanced support for project implementation and development of evidence-based information to improve reforms. The MDTF’s early activities support reforms or activities launched by GoM in the areas of education, public finance management, and private sector development.
MDTF programs in Myanmar are framed by three activity windows: Social Development and Inclusion, Institutional Strengthening, and Private Sector Development. Activity design and implementation draw from international experience and close consultation and collaboration with the GoM. Current MDTF programs pursue major goals that include: (i) Increasing social capital and inclusion through participatory local development and service provision; (ii) Strengthening institutions to deliver improved management of public revenue expenditure and services, and increased access to finance; and (iii) Increasing private sector development, including job creation and investment climate reforms.
Through sequenced assistance projects that are national in scope but with local impact, the MDTF ensures involvement in Myanmar that is varied and far-reaching. The MDTF is relatively new and is expected to add additional financing for more activities as other reform programs are identified.
The annual report provides a summary of achievements to date and builds on the semiannual report that was delivered to the SC in May 2015. The annual report covers the period from inception (June 2014) until 30 June 2015. The report is divided into four sections:
Section I: Introduction/Background – This provides context to explain the rationale and role of the MDTF in Myanmar.
Section II: The MDTF Program – This provides a breakdown of the windows and of activities undertaken to date, including program achievements and the outlook for upcoming activities.
Section III: Program Summary – This provides an overview of lessons learned and overarching challenges facing the MDTF as it moves forward.
Section IV: Program Administration – This provides updated information on the financial status and results framework.
3 The Steering Committee is composed of representatives from the Ministry of National Planning and Economic Development (MNPED), the Ministry of Finance (MoF), the World Bank, the International Finance Corporation, DFID, DFAT and Denmark. Representation is at heads of agency level equivalent or as delegated.
3
Myanmar Partner Multi-Donor Trust Fund Activities - At a Glance 4
Window 1: Social Development & Inclusion
Decentralizing Funding to Schools ProjectUS $17 million
Plus IDA credit of US $80 million
Objective: Help improve and expand Myanmar’s School Grants Program and Student Stipends Program.
Implemented by MoE
Window 1: Social Development & Inclusion
Monitoring & Evaluation of School Grants and Stipends Program
US $2.28 million
Objective: Generate evidence that supports improvement of the government’s design and implementation for the grants and stipends programs and evidence-based policy dialogue in the education sector.
Implemented by WB
Window 2: Institutional Strengthening
Modernizing Public Finance Management
US $20 million Plus IDA credit of US $30 million
Objective: To support efficient, accountable and responsive delivery of public services through the modernization of PFM systems and strengthening institutional capacity.
Implemented by MoF
Window 2: Institutional Strengthening
Implementation Support for PFM and Public Administration Performance Program
US $7.233 million
Objective: Support and coordinate with developmental partners on PFM reforms, support program implementation, assist in linking social accountability initiatives with government reform program. Also provide targeted analytical work on PFM reforms and period evaluation of the project.
Implemented by WB
Window 4: Private Sector Development
Policy and Investment Climate Reform
US $2,712,115 4
Objective: To improve the competitiveness and dynamism of the private sector to increase trade and investment and create jobs in Myanmar. This will be achieved by building on the comparative advantages of Myanmar and focusing program interventions on areas of WBG value addition.
Implemented by WB and IFC
4 Additional contribution from DFAT was received end June 2015 toward the investment climate and competiveness program. Endorsement from the SC was received in July 2015 for allocation to this program for an amount of US$2,177,115. The allocation is shown although endorsement received slightly out of the reporting time frame.
Section
II The MDTF Program
4
ROAD TO REFORM: Seen Through the Windows
Window 1: Social Development and Inclusion
The objective of this window is increased social capital and inclusion through greater participation in local development and enhanced delivery of services.
Activities underway under Window 1 are focused in the education sector. They include (i) Myanmar Decentralizing Funding to Schools project; and (ii) Monitoring and Evaluation of the School Grants and Stipends Program. The
total MDTF financing under this window is approximately US$19.28 million. The program has seen huge success to date and additional financing in this sector is anticipated, including through the MDTF.
Disbursement for the government-executed project from the MDTF grant financing is US$7.2 million as of June 2015, or 42.4 percent of the originally committed $17 million. Total disbursements and commitments under contract for the parallel World Bank-executed M&E program are 96 percent of the original US$2.4 million.
CONTEXT
Education reform is one of the key priorities set out by the government. The design, implementation and monitoring of socio-economic development indicators and progress have been limited. The 30-year Education Development Plan (2001/02-2030/31) outlines strategies to promote greater access and to improve the quality of basic education. Significant progress has been made in these areas. Enrollment in primary and secondary schools has increased rapidly and public expenditure in education has tripled during the last three years. In the FESR, the GoM designated the education sector as a strategic area for scoring “quick-wins” in its reform program.
Early Grade Reading Assessment in action.
In the CPF the WBG highlighted concerns over enrollments with figures showing significant increases in dropout rates as students in Myanmar get older: “In education, while primary net enrollment rates have improved over the past two decades, enrollment rates drop from 87 percent in primary school to 58 percent and 32 percent for middle and high school, respectively."
The GoM took major steps in 2009-10 to address needs in the education sector, establishing the school grants program and the student stipends program. The school grants program provides transfers to schools, with the objective of improving educational outcomes through strengthening the supply of education. The stipends program provides cash to poor children at risk of dropping out of school.
SChOOl GRANTS PROGRAM REFORMED
The reform changed the program in several fundamental ways: (i) Increasing resources flowing to schools; (ii) Regularizing resource flows; (iii) Granting greater autonomy to schools in how they spend resources; and (iv) Aiming to increase community participation and oversight in how the funds are spent. A more progressive and transparent allocation rule was applied in the 2014-15 school year that linked grants to enrollments. For the first time, detailed guidelines and extensive training were provided to township education officers and school heads to explain the basic design features.
5
The school grants program was established by ministerial decree in 2009-10. Although a basic framework of the amounts and flow of funds existed, irregular and inconsistent payments to schools hampered implementation. There was poor documentation of objectives, implementation arrangements, performance indicators and monitoring. Resources were earmarked for the program, but school officials did not know when they would receive them. In the 2014-15 school year, the school grants program was reformed with technical and financial assistance of the WB and DFAT.
STUDENT STIPEND PIlOT PROGRAM EXPANDED
The pilot program introduced more rigorous targeting approaches, increased stipend amounts for secondary students, and initiated attendance requirements. About 37,000 students in eight townships were covered in the first pilot phase. Officials planned to expand the program each school year, originally setting a target of providing stipends to students in 12 new townships in the 2015-16 school year. Initial reporting in 2015 indicated that goal was exceeded by seven townships. Under the pilot program, students receive a stipend between US$6 and US$10 a month depending on their grade level if they comply with program conditions such as attending school regularly and passing a year-end exam.
The stipends program initially was stretched thin across townships, causing substantial administrative work to support a limited number of students. Selection processes were unclear and the number of stipends did not meet needs. Receiving stipends was intended to be based on school attendance, but in the early phase of the program it effectively became an unconditional cash handout. The program lacked a formal time frame with transfers varying year to year and there was no standardized documentation of program objectives or implementation requirements. There also were no provisions for measuring performances or monitoring implementation. An expanded version of the program was piloted in the 2014-15 school year with technical support and financing through the MDTF and IDA program.
Working with development partners, including the WB and DFAT, the GoM already has had an impact in this sector. However, challenges remain. Myanmar remains far from full primary enrollment; progress has
been made on legislation and the policy framework for education but the policy framework in particular remains a work in progress, and there is a strong demand for the government to address curriculum and language of instruction to reflect Myanmar's diverse language and cultural context. Capacity to implement reform at all levels also remains a concern, particularly as increasing roles and responsibilities of local authorities will be required for decentralization to take place. The donor-supported Country Education Sector Review (CESR) has provided the foundation for a draft National Education Sector Plan that is expected to inform strategic policy directions of the new Government.
APPROACh TO IMPlEMENTATION
Development partners have aligned their support to an existing GoM program, integrated this support into the government systems and structures, and use evidenced-based monitoring and evaluation to feed into continuous improvement for the program. The program uses a Disbursement Linked Indicator (DLI) approach that focuses on outcomes achieved by the GoM as opposed to relying solely on inputs.
The school grants and student stipends programs were initiatives of the GoM implemented prior to the MDTF’s inception. Development partners recognized the strengths of this program and worked with the MoE to further strengthen it. This collaboration includes: (i) Formalizing the structure; (ii) Developing guidelines and processes for implementation and fund allocation; and (iii) Helping to expand the scale and scope of the program by providing financial resources via the Decentralized Funding to Schools Project (the project) with financing from MDTF and IDA resources. By building on an existing program, the project is fully integrated within MoE operations, resulting in strong government leadership and ownership.
6
The MDTF provides financing to a parallel Monitoring and Evaluation (M&E) program. Qualitative assessments and quantitative surveys are conducted under the management of the World Bank, which is leading the M&E components in close collaboration with the MoE and other stakeholders. Save the Children is carrying out the qualitative research and a local firm, Myanmar Survey Research, will undertake a quantitative survey of school grants and stipends program implementation, in addition to a household survey.
This project also uses a DLI approach. Disbursements are directly linked to achieving clearly defined indicators. This approach decreases administration and keeps the focus on achieving goals defined by the indicators.
PROGRESS
The project is performing well, the World Bank’s implementation progress rating was raised to highly satisfactory based on two factors: (i) GoM’s success in implementing relatively complex, well-defined programs on time and on budget, and (ii) GoM’s willingness to use feedback and recommendations from the M&E program to solve problems and introduce program improvements. The MoE has successfully achieved all its process-related objectives in the project first two years (see the achievement section below). While the project development objective and related results indicators are process-oriented (which is appropriate for a new program for a new implementing agency), MoE seems to be well on track to show increasing access and retention rates and to build its capacity to evaluate learning outcomes (e.g. early grade learning assessments). Equally important, MoE has used program implementation as a learning exercise. It has shown a willingness and capacity to consume annual process and quantitative evaluations and to use lessons to improve its programs from year to year. This attention to monitoring and evaluation and rapid reaction to findings has exceeded expectations.
The success of the project and particularly the results-based DLI approach has made this project a prime candidate for additional financing, which currently is being prepared. The additional financing will have two aims: (i) It will help promote a transition within the existing program from output-oriented DLIs (grants transferred, stipends paid) to outcome-oriented DLIs (increase in 5th and 6th grade transition rate, states/regions reporting on early grade reading levels, etc.), and (ii) It will expand the scope of the results-based funding to promote school and cluster-based in-service professional development for teachers, with a focus on teacher mentoring.
AChIEVEMENTS AND IMPACTS
The school grants and stipends program with support from the MDTF through the Decentralized Funding for Schools Project and the M&E program has made significant impacts. 5 Achievements of the program include:
Grade 5 teacher, Laputta Township:
“It has taken nine years now as a teacher in this village. In the meantime, the students had to struggle to remain in school and now they can attend comfortably this year because of stipend program. They now have adequate schooling materials and they are working harder than before. In addition, their parents are interested in school and joined school activities. I am very glad as they become lead in prize-awarding ceremony in school. I would like to suggest to provide the remaining poor students too.”
5 Quotes have been sourced from case studies in “Qualitative Assessment of Myanmar School Grant and Pilot Stipend Programme,” Save the Children, March 6, 2015.
7
• Stipends program, including training and consultations, rolled out to 27 townships (out of 330 total townships).
• Initial reporting for school year 2015-16 showed that more than 100,000 students were receiving stipends under the program (There are about 8.6 million students in government schools in Myanmar).
• 53.3 percent of stipend recipients in 2014-15 were girls.
• School grants program funds for school year 2014-15 were transferred in accordance with the funding formula to about 229 townships; nearly all schools have produced school improvement plans ahead of schedule.
• The first transfer for 2015-16 occurred in June 2015 in nearly all townships.
• Schools in flood-affected areas received an early transfer of their second payment for 2015-16.
• MoE included monastic schools (about 1,800 of them, compared with about 43,000 government schools) in the program in school year 2015-16; this is significant because it shows a capacity and willingness to reach out to non-state schools.
• Second DLI disbursement from the World Bank of $22.8 million made to MoE in June 2015, one month ahead of schedule.
• MoE increased its own funding for school grants to more than $80 million for 2015-16 and increased the amount of individual grants depending on school size. 6
• Qualitative assessments will continue into 2017. The qualitative analysis provides annual feedback on social and operational issues.
• The first phase of the Early Grade Reading Assessment (EGRA) conducted in the Yangon area was shared with MoE in 2015.
• Development partners and MoE have begun preparing to add financing to the program and continue to use the results-based funding mechanism.
SIX-MONTh OUTlOOK
Strong implementation progress is expected to continue during the next six months. The joint World Bank-Australia team will work closely with the MoE and other stakeholders to prepare the additional financing project. Disbursements through June 2016 are estimated to be an additional US$28 million from IDA and the MDTF combined, putting total disbursement at about US$71 million with 17 percent of the disbursements financed from the MDTF.
A quantitative analysis, including school surveys and household surveys is expected to be completed in December 2015. This analysis will examine program impacts on enrollments, attendance, dropout rates and overall satisfaction.
In preparation for year three of the programs and the additional financing, the World Bank/DFAT are undertaking several reviews. A financial assessment of central capacity is scheduled to be carried out in November 2015 and will continue in the new year to cover selected townships and schools. The World Bank and DFAT are also undertaking conflict assessments in some conflict sensitive states (Rakhine, North Shan and Kachin) in preparation for the roll out of the third year stipends programs to those areas.
6 School grants now range from US $400 per year for the smallest schools to about $2,000 annually for the largest schools.
8
A concept review of the proposed additional financing has been shared with core donors and is currently being fleshed out. The grants and stipends programs are expected to continue and expand in the context of adding additional DLIs that are more oriented to outcome results (access and retention). The new activity or program that supports teacher professional development is being prepared with a working group appointed by MoE. It will be a priority to ensure active support and buy in from the new government. All final decisions on approach and DLIs will be negotiated and agreed with the new government after April 1, 2016.
ChAllENGES AND OPPORTUNITIES
Potential Challenges:
New Government: The preparation and processing of additional financing will be undertaken after Myanmar’s election season and into the period of forming the new government. This presents risks and opportunities. Discussions on the substance, timing and process of the education programs will need to be broad-based, i.e. briefing and consulting with Myanmar’s parliamentary committee, which represents all major political interventions to build broad political support for the school grants and stipends programs.
Professional Development of Teachers: Both the existing MoE and the new government have indicated teacher professional development, particularly in-service programs, is the highest priority for the coming few years. This priority reflects the roughly one-third of primary teachers in the system who have been teaching for two years or less. A key focus of the design of the additional financing component will be ensuring the new Government has buy in and that the Ministry has ownership and leadership of the new design ahead of negotiating the financing agreement.
Conflict Sensitivity: As the stipends program expands to government schools in all 15 states and regions during the third year of implementation, there is a risk that non-state schools and those populations currently not using government schools could express concerns about the program. The World Bank/DFAT will undertake conflict assessments in selected states (Rakhine, North Shan and Kachin) that will help provide advice to MoE and the donors on township selection and implementation to minimize any potential risks to the program. World Bank-executed funding for monitoring and evaluation will be used to work closely with government counterparts on building conflict sensitivity into project implementation.
Potential Opportunities/lessons:
Improved Delivery: MoE is continuing to improve its delivery of services through the school grants and student stipends programs by using a continuous learning approach based on real time feedback and information from implementation and the M&E program.
Parallel M&E program implemented by the Bank has been a useful and powerful tool to support implementation. Having this program implemented by the Bank has enabled the Bank to draw on international experience and expertise to design and manage the project, allowing MoE to focus on implementation. The program is integrated into the MoE. Training and informing MoE staff is ongoing, providing government the opportunity to make evidence-based decisions.
Disbursement Linked Indicators: Using DLIs has been successful and could be a model for other projects. This success is particularly notable because it involves a new borrower. Funding is being added to continue support for the school grants and student stipends programs, and to expand into new areas such as in-service training for teachers. The DLI approach decreases administration and empowers the implementing agency with a focus on delivering.
Integrated approach builds capacity “on the job.” The project has no implementation unit and finances no consultants with government-executed funding. This approach ensures government systems are strengthened,
9
government staff lead program implementation, and increased financing focuses on project objectives instead of technical assistance. By placing government in management and decision-making positions on project implementation, this approach also ensures engagement with other stakeholders involved in the sector.
Window 2: Institutional Strengthening
The objective of this window is strengthening institutions to deliver improved management of public revenue, expenditure and services,
and increased access to finance.
CONTEXT
The Myanmar government says improving management of public finances will be a long-term commitment that is vital to keeping the reform process on track to bring lasting social change and shared prosperity to its citizens. In its FESR, the government acknowledges “both the urgency and historic scale of reforms required in Myanmar, involving the development of market mechanisms, changes in economic decision-making and the correction of policy distortions inherited from the previous period.”
The WBG’s CPF backs up the FESR approach to phased-in changes in the public sphere, also stressing the importance of such reforms: “A critical prerequisite for Myanmar’s peace and development is to move from centralized and authoritarian rule towards an accountable public sector, including at the local level.”
The Myanmar government has established a three-tiered sequence for Public Finance Management (PFM) reforms expected to take eight to 12 years. These activities include: Improving spending controls and revenue management in the short term; more effective use of resources based on better analysis of sophisticated financial data in the medium term, and development of strategically driven budget management systems in the long term.
The MDTF provides co-financing to the IDA program through the Modernization of Public Financial Management Project (the PFM project) and a parallel World Bank-executed implementation support activity. These activities provide assistance to the first stage of the GoM’s three-stage strategy: Improving spending controls and revenue management. Work focuses on three main channels: (i) Increasing revenue to combat poverty through delivery of critical public services; (ii) Increasing efficiency of service delivery; and (iii) fostering greater accountability for service delivery.
Disbursements from MDTF financing for the PFM project are low at 2.3 percent of the grant amount. Disbursements are at 25.2 percent of the grant amount for the World Bank-executed Implementation Support for PFM and Public Administration Performance Program.
APPROACh TO IMPlEMENTATION
The PFM project builds on the reform initiative of the government and like the education project utilizes an integrated approach to implementation. Both projects are embedded into the organization structures of the GoM. This approach is strengthening government structures, building capacity and ensuring strong government leadership and ownership of the program. The parallel financing for implementation support by the WB complements the PFM project, providing targeted technical advice and assistance along with enhanced implementation support.
10
The PFM project is being implemented by the MoF, the Ministry of National Planning and Economic Development, the Public Accounts Committee, and the Office of the Auditor General (OAG). Project activities are embedded within existing GoM structures and carried out under government leadership and supervision. This approach has taken more time than creating a Project Implementation Unit (PIU), but has led to strong government ownership while building management capacity among government staff.
Reforms supported through the project launched in 2014 by the GoM aim to help policy-makers match targeted funds with policy priorities, build consistency in fiscal transfers to states and regions, and generate feedback to top managers so they know when problems or inefficiencies develop that must be addressed. Government officials also receive training in budgeting, financial reporting and procurement to serve the public more effectively, fairly and efficiently.
The PFM project designates developmental finance to support the GoM’s ability to generate more revenue through a transparent manner, use resources to fund policy priorities, and account for the efficient use of resources to parliament and the public.
PROGRESS
The PFM project and the parallel implementation support activity are progressing well with the implementation pace anticipated to pick up by the end of 2015. By March 2015, the MoF had implemented a Medium Term Fiscal Framework (MTFF) with a formula-based transfer to states and regions for fiscal 2015/16. MoF carried out extensive restructuring, creating a Treasury Department, revamping the Budget Department and establishing the Large Taxpayer Office (LTO). To develop the skills base, more than 2,000 officials across the country began computer training.
PFM REFORM: GOOD GOVERNANCE AND TRANSPARENCY
Initial work in PFM reforms focused on building a solid foundation for revamping fiscal operations on every level. Staff recruitment, computer training, English-language instruction, technical training, and hands-on training in budgeting, financial reporting and procurement led to significant progress to increase the skills base and create expertise within the GoM. These efforts provided important steps toward larger PFM goals: Developing good governance in a transparent, fair and efficient tax system so Myanmar can make the most of its resources. Both PFM projects carried out with MDTF support are embedded in the GoM, ensuring strong local leadership and ownership of the modernization process.
Recent progress has included several key appointments made by the government, including: (i) A full-time project coordinator; (ii) Four staff as accountants and procurement assistants; and (iii) A full-time international procurement specialist. The auditor general also appointed full-time staff to execute the project. These appointments led to renewed vigor within the GoM to implement the project. The bank has received international competitive bidding documents worth about US$10 million for computers and software. Countrywide computer training and English-language instruction has started.
After the international procurement specialist began work in August 2015, progress with procurement activities increased. These advances included training and mentoring of project staff on basic procurement and hands-on training on the preparation of shopping and bidding documents. The modular training for US$500,000 delivered by
the British Council started in May 2015, reaching almost 300 government staff from all project-implementing agencies. This program may be scaled up during the next fiscal year. Computer training, both basic and advanced, is underway for all implementing agencies. In addition, consultant contracts are in the advanced stage for work in the Myanmar Economic Bank and the International Revenue Department.
11
Under the complementary implementation support activity, recruitment of Myanmar-based PFM staff has progressed. Two staff members were selected to provide continuous implementation support and ensure strong development partner coordination. Both staff members are expected to be located in Myanmar by January 2016. Enhanced implementation support missions are conducted on a bimonthly basis to ensure focused support to GoM counterparts. A WB operations specialist spent three months in country, providing intensive implementation support.
AChIEVEMENTS AND IMPACTS
PFM project achievements in 2015 include:
• The LTO has been established and received the first self-assessment forms for LTO-administered taxpayers in April 2015 with a compliance rate of 95 percent.
• The Medium Term Fiscal Framework (MTFF) provided ceilings to ministries, states and regions, increasing predictability of resource availability.
• The Law on Budget Documents Presentation to Parliament was passed in 2015. This law requires the publication of the MTFF policy statement, Debt Sustainability Analysis, Budget Strategy Paper and the Citizen’s Budget.
• After publishing the Citizen’s Budget, MoF is on track to meet the newly established publishing requirements.
• The Extractive Industry Transparency Initiative (EITI) Secretariat has relocated to the MoF. The first EITI report is expected by January 2016. With publication of the EITI report Myanmar’s natural resource baseline information will be made available.
• Work is advancing on the Pay and Compensation Review of Civil Service.
• The Public Expenditure Review has been completed and the dissemination workshop was held late October 2015.
• On the job technical assistance has been provided on public investment management, debt management, tax audits and the MTFF.
• Direct World Bank technical assistance is being provided on improving the country procurement system. All information has been shared with Development Partners.
• Tax to GDP ratio projected to increase to 8.1 percent of GDP in 2015/16. The variation between budget estimates for 2014/15 and revised estimates for 2014/15 was reduced to less than 10 percent.
SIX-MONTh OUTlOOK
With key staff in place, training delivered on fundamental processes such as procurement and increased staffing on the World Bank side, the team expects the PFM project to continue increasing its pace of implementation. About US$15 million is expected to be committed during the next year. Disbursements from the MDTF during that period are projected to be more than US$5 million.
12
ChAllENGES AND OPPORTUNITIES
Potential Challenges:
Newly formed Government: The 2015 election aftermath and subsequent forming of the new government may disrupt the pace of implementation. Government understanding and ownership of the program may need to be rebuilt. The NLD has indicated it will consolidate ministries. The impact of this consolidation could affect the pace and scope of reform programs.
Lack of Government Experience: This is the first time the government is implementing an externally financed project. Understanding of procurement rules and financial guidelines is limited, and government is very cautious not to make mistakes. In this regard, implementing agencies apply most cumbersome and constraining internal rules and regulations to ensure no mistakes are made. This slows down implementation. The team has been providing enhanced implementation support to implementing agencies to make them more comfortable and to streamline regulations.
Lack of Delegation: Even when annual work plans are approved by the Executive Reform Team, each hiring of TA and procurement of goods is resubmitted individually to the Minister for approval. This becomes very cumbersome and slows down pace of implementation.
Conflict Sensitivity: The risk of possible conflict has been included in the PFM program, especially as it relates to supporting the technical aspects of decentralization. For example, issues related to revenue sharing and functional assignments across different levels of government will need to be carefully considered.
Managing Expectations: The PFM is a large, complex and far-reaching program that goes to the core of the country’s financial management. Expectations of quick results and impacts must be balanced with the level of reform being undertaken. Development partners and government should be prepared for a long-term commitment with incremental results.
Collaboration: Coordination and collaboration with all stakeholders has been strong. Stakeholders need to continue to support the approach being taken for this program but also ensure that the program continues to be demand-led.
Potential Opportunities/lessons:
Enhanced resources for implementation support and targeted technical assistance provided through the MDTF give an opportunity for focused support to the government in implementation. This also enables the Bank team to draw on international experience and expertise to design and manage the project so the GoM can focus on implementation.
Integrated approach builds capacity “on the job.” The project has no implementation unit. This approach ensures government systems are used and strengthened, and that government staff lead and implement the program. This approach also places government in management and decision-making positions on project implementation and ensures engagement with other stakeholders involved in the sector.
Building on an existing initiative increases understanding of the reforms being undertaken. It also is not seen as a “donor-led” reform initiative.
Window 3: Implementation Support
There are currently no activities under this window.
13
Window 4: Private Sector Development
The objective of this window is increasing private sector development, including job creation and investment climate reforms.
CONTEXT
After decades of international isolation, improving the climate for investment, trade and business development has emerged as a focal point in Myanmar’s transition to a market-based economy. Political, economic and regulatory reforms launched since 2011 by the Myanmar government have yielded progress in many critical sectors, leading Western nations to lift most sanctions that crippled trade and investment during Myanmar’s previous leadership. However, the country still suffers from a weak investment environment and the GoM has targeted this area for improvement.
The FESR stresses the need to liberalize trade and investment policies to open up the Myanmar economy while strengthening the private sector, saying that “improving the regulatory environment for business is crucial to enhancing a country’s competitiveness and stimulating economic growth.” In addition, Myanmar has sought to diversify exports, promote tourism and offer tax incentives to attract new businesses. The GoM also aims to take advantage of the country’s strategic location and youthful population of about 50 million people, and to responsibly profit from an abundance of natural resources including oil, gas, minerals, gems, forestry and under-utilized land.
The WBG supports Myanmar’s goals for private sector development. In its CPF, the WBG states: “Myanmar has the potential to emulate the successful growth trajectory of other economies in the region” through sustained reforms and economic development.
The WBG Myanmar Investment Climate and Competitiveness Program aligns with the government’s ambitious reform agenda to develop policies promoting private sector growth, supporting legal and regulatory reforms, and strengthening the advocacy role of the private sector.
The PSD program received an additional AUD $3 million from the Australian DFAT in 2015, translating to a fund transfer for this contribution of US$2,177,115 7 Disbursements as of June 30, 2015 amounted to almost 17 percent of the total allocation of US$2,711,115 for this window.
APPROACh TO IMPlEMENTATION
The WBG leads the execution of the program through IFC and WB implemented activities. The WBG utilizes a consultative approach to implementation and draws on international expertise and experience. The WBG works collaboratively with the relevant government departments, the private sector and organizations representing the private sector.
The Private Sector Development (PSD) program crosses many sectors and is implemented jointly by the Ministry of National Planning and Economic Development, the Ministry of Commerce, and the Union of Myanmar Federation of Chamber of Commerce & Industry (UFCCI). The PSD program is executed by the IFC and WB with funding from the MDTF.
7 Thisreflectstheexchangerateandnetofthe5percentadministrativefees.
14
Activities focus on increasing private sector development, including job creation and investment climate reforms. Other key aspects supporting the GoM include strengthening public-private dialogue, improving corporate governance, supporting economic integration, providing technical assistance on developing inclusive trade policies and implementing business regulatory reforms.
PROGRESS
The PSD program is gaining momentum. Widespread progress across all activities was achieved during the past year. This included: (i) continued consultations on drafting an investment law; (ii) coordinated activities between government and the private sector through involvement with the Myanmar Business Forum (MBF); and (iii) steps to facilitate trade including changes in customs fines and import/export licensing.
Experts from the region and the WBG global investment policy team supported Myanmar in consultations and writing of three drafts of the Investment Law. Initial consultations began in 2014. Meetings were held with members of Parliament and at the request of the leader of the National League for Democracy, the program team met with Daw Aung San Suu Kyi to discuss key elements of the draft Investment Law. Concerns emerging from these meetings included questions about: (i) the role of foreign investment in Myanmar and whether policies would be implemented to ensure local investors benefit from market reforms; (ii) government discretion and how to encourage responsible investment; and (iii) points raised by members of Parliament about how a new Investment Law would affect other laws.
Workshops and consultations continued as drafts were revised. Other issues raised related to provisions on land, currency transfer, resolving investor disputes, business conduct and the role of the Myanmar Investment Commission in approving investments and making policy decisions. Discussions with the drafting team also focused on implementing regulations and rationalizing investment incentives. The third draft of the law has been submitted to the Attorney General’s Office.
The MBF Secretariat began operating in early 2015 to promote formal dialogue among public and private entities. The IFC coordinated a visit of staff from the government and private sector to attend the Vietnam Business Forum in Hanoi to learn from Vietnam’s experience and build networks to help the MBF develop. Two key government officials also participated in the WBG Global Public-Private Dialogue Conference in Copenhagen in early 2015. The efforts to raise awareness to business concerns and build capacity led to extensive public-private dialogue, giving the government insight into private sector concerns regarding reforms that affect the business environment.
The results of the Doing Business 2015 report and the WBG Investment Climate Assessment were discussed with relevant government counterparts to help prioritize the reform process. The PSD program also supported data gathering for the Doing Business 2016 report, including support for the Doing Business team’s work in Myanmar in March 2015 and meetings with key officials. IFC organized an assessment in November 2014 to examine border trade and customs procedures in Myanmar, including consideration of private sector constraints to trade.
AChIEVEMENTS AND IMPACTS
The Doing Business 2016 report highlights Myanmar as a top global reformer in the category of starting a business.
15
The PSD Program achievements in 2015 include:
• Drafting and consultation of the second and third drafts of the Investment Law completed.
• IFC expert from Sudan brought in to support the drafting of implementing regulations for the new investment law.
• Preparations underway on implementing regulations for the Investment Law. The third draft of the Investment Law was submitted to the Attorney General’s Office after extensive consultations with the private sector and Civil Society Organizations.
• The government secretariat for the MBF began operating in early 2015. The secretariat consists of 13 GoM staff who coordinate MBF activities across the government agencies, working closely with the private sector secretariat at UMFCCI to organize and facilitate public-private sector meetings to discuss issues raised with the government.
• 22 Public-Private Dialogue (PPD) meetings have been held and several issues related to customs/trade facilitation and tourism were raised. Concerns relate to customs valuation of imported cargo for tariff calculation and the lack of effective risk management at customs resulting in excessive inspection of cargo, licensing obstacles for tour operators and hoteliers, rules preventing foreign guests from staying at small guesthouses and the need for more training and skills development. Other trade-related issues discussed involved the simplification of testing of imported foods and the use of risk management practices to eliminate redundant testing that slows down the clearance of goods at ports.
• The government has acted on two issues raised through the MBF: (i) Abolishment of bank certificates for obtaining customs clearance; and (ii) Removal of customs fine on import of car spare parts for which no import license is required. In total, nearly 10 issues have been solved with progress seen on solving others.
• A draft action plan has been prepared for a Task Force on Business and Trade Promotion focusing on key reforms including construction permits, business startup and licensing. Further discussions are planned with the Task Force to prioritize reforms in the action plan for implementation.
• A regional private sector working group meeting was held in Mandalay to obtain information about businesses outside Yangon for dialogue with government. An objective of these regional working group sessions is to ensure the inclusiveness of the MBF.
• The Ministry of Commerce issued a new list (negative list) identifying items that still require a license for import/export. This has reduced the number of items requiring import/export licenses by about 40 percent.
• Information is being gathered on import/export licensing from the past three years to identify licenses to review as part of procedural mapping and reform intervention with the Ministry of Commerce.
• The global team prepared a draft report highlighting trade logistics to target for possible improvements, such as simplifying customs and port procedures.
• The local consulting firm gathered information on import/export licensing for the past three years to assess and make recommendations for streamlining procedures.
SIX-MONTh OUTlOOK
Steady engagement with all stakeholders in Myanmar will be necessary to prevent backsliding on reforms after the elections. The PSD program is being strengthened financially and new staff members are being recruited to
16
work in Myanmar. Resources will be available to ensure pro-active engagement with the new leadership. Reform momentum should be encouraged by positive results in the Doing Business 2016 report. Disbursements during the first six months of 2016 are projected at US$1.27 million.
The additional resources provided to the MDTF by DFAT to the PSD program in June 2015 will support ongoing activities, including: (i) Business regulatory reform; (ii) Improving the investment policy framework and corporate governance; and (iii) Improving trade competitiveness and connectivity. The funds will enable the planned expansion of work in these areas along with efforts to move forward to prepare for sector level work in agribusiness and tourism.
ChAllENGES AND OPPORTUNITIES
Potential Challenges:
Newly formed government: This could present both challenges and opportunities. A key challenge will be to continue the momentum for reforms with the new government. There will be many new parliamentarians and senior government officials in policy roles. It will be important to consult frequently and early with these new players to exchange ideas on key legal and regulatory issues and to highlight past achievements. The Investment Law will be considered by the next government and Parliament, therefore it will be necessary to hold workshops or other capacity-building and awareness-raising events with the new leadership. New leaders will have demands on their time and attention that may delay the process of considering new laws. Additional resources have been provided through the MDTF to support this intensified engagement and consultations.
Continued support to public-private dialogue: In regard to the MBF, it will be important to ensure the new government continues to support this public-private dialogue process. A key factor will be ensuring that the private sector demonstrates demand for the MBF process to ensure support and continuity from the new government. The UMFCCI will play an important role in this process.
Potential Opportunities/lessons:
Additional WBG Staff: The PSD program has been strengthened financially by additional resources from DFAT and additional resources are anticipated from DFID. This will enable increased staff members to be recruited to work in Myanmar.
Doing Business 2016: Reform momentum should be encouraged by positive results that will be included in the Doing Business 2016 report.
Trade: With the completion of the DTIS report and the TFA Assessment, the government will be in a position to prioritize reforms related to trade facilitation and logistics. With these assessments, the program team will be able to strengthen engagement with key government agencies and the private sector.
Agribusiness and Tourism: Scoping work continues for the development of the agribusiness and tourism sector programs. The team looks forward to close engagement with MDTF partners on the development of these initiatives. As the WBG recently has taken on the role of the multilateral co-chair for the Tourism Working Group, the program will be in a position to take on more leadership in coordination of activities involving development partners and government, a role the WBG already performs for the Trade Sector Working Group.
17
The MDTF has provided financing in three main sectors and many achievements have been made. Key lessons and common challenges have emerged.
General lessons
Programs should build on government initiatives where possible. They should be integrated and embedded into government structures as opposed to an approach that would develop parallel donor-financed systems. Building from within supports and strengthens local systems, leading to greater government ownership that enhances capacity building as programs continue. To make this approach work, financing for enhanced implementation support is necessary that can ensure additional WB staff members are available on the ground to provide ongoing support.
A parallel program of monitoring results is powerful and helps government make well-informed decisions. In addition, using DLIs should be considered where relevant.
Development partners working collaboratively and in a coordinated approach allows the GoM to focus on improved management and implementation, increasing chances to achieve lasting success from current reforms.
Overarching Challenges
Newly elected government may impact implementation of many programs. New government officials will require time to learn and understand reform programs. Intensive consultations and capacity-building will be needed to ensure the momentum now underway will not be lost.
Section
III Program Summary
18
19
Section
IV Program Administration
Financial
All financial information in the annual report refers up to June 30, 2015.
Program level
The total value of the MDTF as of June 30, 2015 amounts to US$59,330,034. This represents a decrease of approximately 6 percent due to exchange rate fluctuations from the original value of the MDTF of US$63,070,925. Since the last report this devaluation gap has not increased. Contributions received from donor partners’ amount to US$32,973,842. 8
Disbursement at the program level from donor funds received to date (cash on hand) is approximately 36 percent, this is projected to increase to approximately 60 percent by June 2016.
An additional contribution of AUD11.5 million was received from DFAT towards the end of the reporting period. This contribution equals about US$8,345,607 available for programming. From this amount, US$2,134,884 has been allocated to the PSD program and was endorsed for allocation by the SC in early July 2015. Additional contributions are anticipated from DFID and DFAT in the coming 12 months.
Annex A provides a breakdown of donor contributions by development partner including the breakdown of funds received and projected fund transfers through June 2016. Details on the grant amounts and percentage of disbursement by window and activity are included in Annex A.
Activity level
Disbursements at the activity level started slow but picked up during the past six months. All but two activities have disbursements ranging from 28.5 percent to 93.6 percent of the total grant amount.
The PFM project experienced a slow start, which is reflected in disbursements of the approved grant of US$20million of only 2.3 percent. This project has experienced a delay in effectiveness with long start-up times to adjust annual work plans by agencies and starting out the first procurement packages. It should also be noted that the MDTF only contributes 17 percent toward the total PFM program, therefore disbursements to the PFM project are overall higher than what is reflected from only the MDTF financing. The coming 12 months should see increased disbursement on the PFM project with more staffing available in country to provide on-going support and guidance.
8 This amount reflects the exchange rate when received and deducts the 5 percent for TF administration.
20
The Improving Trade Competitiveness in Myanmar activity also shows a low disbursement rate of 2.4 percent. As this activity became effective very recently this is to be expected.
Cumulative projected disbursements for the MDTF by June 2016 for all programs are estimated at US$ 27,608,3249 or about 61 percent of deposits or funds on hand.
Results Framework
Positive results are being achieved from the activities. The results framework has been updated to reflect these achievements and is attached in Annex B. New indicators have been included for the new PSD program - Improving Trade Competitiveness in Myanmar.
9 Thisamountrefleudstheexchangeratewhenreceivedanddeductsthe5percentforTFadminstration.
Ann
ex A
Mya
nmar
Mul
ti D
ono
r Tr
ust
Fun
d F
inan
cial
Rep
ort
as
at J
une
30, 2
015
Don
or C
omm
itmen
ts a
nd D
epos
its (a
s at
Jun
e 30
, 201
5)
Cas
h on
Han
d #
##
##
#To
tal D
onor
Dep
osits
1/
32,9
73,8
42
Fund
s D
isbu
rsed
/Com
mitt
ed fr
om to
tal D
epos
its
Inve
stm
ent I
nc. E
arne
d 54
,259
36
.1%
To
tal R
ecei
pts
33,0
28,1
01
D
onor
Com
mitm
ents
and
Dep
osits
(loc
al a
nd U
S C
urre
ncy)
Don
ors
Com
mitm
ents
in
Don
or C
urre
ncy2/
D
onor
C
omm
itmen
t Am
ount
in
USD
at t
ime
of
AA3/
Don
or
Com
mitm
ent
Amou
nt in
USD
as
at J
une
30
2015
Paid
in
Con
trib
utio
n C
urre
ncy
Paid
in
USD
4/
Unp
aid
in
Con
trib
utio
n C
urre
ncy
Unp
aid
in
USD
5/
Cur
renc
y Am
ount
Aust
ralia
AU
D
42,1
00,0
00
38,5
35,7
16
35,3
75,5
52
29,1
00,0
00
24,4
51,9
85
13,0
00,0
00
9,37
2,35
0 U
nite
d Ki
ngdo
m
GBP
12
,000
,000
19
,554
,716
18
,994
,000
2,
250,
000
3,56
1,37
5 9,
750,
000
14,9
28,7
13
Den
mar
k D
KK
30,0
00,0
00
4,98
0,49
3 4,
960,
481
30,0
00,0
00
4,96
0,48
2 0
0 To
tal
63,0
70,9
25
59,3
30,0
34
32
,973
,842
24,3
01,0
63
1/ T
otal
Dono
r Dep
osits
= C
ontri
butio
ns re
ceive
d m
inus
5%
fee.
2/ A
s pe
r the
adm
inist
ratio
n ag
reem
ents
. 3/
Com
mitm
ents
mad
e in
cur
renc
ies
othe
r tha
n US
$ ha
ve b
een
conv
erte
d at
the
exch
ange
rate
as
of th
e da
te o
f the
firs
t adm
inist
ratio
n ag
reem
ent (
June
16)
prio
r to
their
de
posit
into
the
fund
, and
is fo
r ind
icat
ive p
urpo
ses
only.
4/ E
xcha
nge
rate
use
d da
te fu
nds
wer
e re
ceive
d by
the
Bank
. 5/ T
his
refle
cts
the
valu
e as
at J
une
30, 2
015.
21
Dis
burs
emen
ts b
y Ac
tivity
: Ac
tual
and
Pro
ject
ions
(as
at 3
0 Ju
ne 2
015)
Activ
ity
Gra
nt
Amou
nt1/
Fu
nds
Tran
sfer
red
Tota
l D
isbu
rs. &
C
omm
itted
Perc
enta
ge o
f: D
isbu
rsem
ent &
Com
mitm
ent
Proj
ectio
ns
Gra
nt
Dis
burs
ed
Fund
s on
H
and
Dis
burs
ed
July
201
5 -
D
ecem
ber 2
015
Janu
ary
2016
- Ju
ne
2016
W
indo
w 1
: So
cial
Dev
elop
men
t and
Incl
usio
n D
ecen
traliz
ed F
undi
ng to
Sch
ools
Pr
ojec
t (RE
) 17
,000
,000
9,
000,
000
7,20
0,00
0 42
.4%
80
.0%
0
4,80
0,00
0
Scho
ol G
rant
s &
Stip
ends
(BE)
2/
2,28
0,00
0 2,
280,
000
2,13
4,88
4 93
.6%
93
.6%
46
7,00
0 1,
000,
000
Tota
l Win
dow
1
19,2
80,0
00
11,2
80,0
00
9,33
4,88
4
46
7,00
0 5,
800,
000
Win
dow
2:
Inst
itutio
nal S
tren
gthe
ning
M
oder
niza
tion
of P
FM P
roje
ct (R
E)
20,0
00,0
00
3,00
0,00
0 46
0,00
0 2.
3%
15.3
%
1,50
0,00
0 4,
500,
000
Imp.
Spt
for P
FM &
Per
form
ance
Pr
ogra
m (B
E)
7,27
7,45
7 2,
000,
000
1,55
3,33
6 21
.3%
77
.7%
47
8,00
0 1,
000,
000
Tota
l Win
dow
2
27,2
77,4
57
5,00
0,00
0 2,
013,
336
1,97
8,00
0 5,
500,
000
Win
dow
4:
Priv
ate
Sect
or D
evel
opm
ent
Polic
y an
d In
vest
men
t Clim
ate
Refo
rms
(IFC
) 1,
534,
000
1,53
4,00
0 43
7,30
1 28
.5%
28
.5%
41
4,35
0 62
5,00
0
Impr
ovin
g tra
de c
ompe
titiv
enes
s in
M
yanm
ar (B
E)
750,
000
750,
000
18,2
86
2.4%
2.
4%
270,
000
650,
000
Cor
pora
te G
over
nanc
e (IF
C)
250,
000
250,
000
0
Ye
t to
be a
lloca
ted
to a
ctiv
ity
177,
155
177,
155
0
To
tal W
indo
w 4
2,
711,
155
2,71
1,15
5 45
5,58
7
68
4,35
0 1,
275,
000
Oth
er
TF M
anag
emen
t and
Adm
inis
tratio
n up
to 3
%
100,
000
51,6
67
13,5
00
35,0
00
Gra
nd T
otal
49
,268
,612
19
,091
,155
11
,855
,474
24
.1%
62
.1%
3,
142,
850
12,6
10,0
00
1/ G
rant
am
ount
s ar
e th
e SC
-end
orse
d am
ount
s m
inus
5%
fees
. Th
e Ed
ucat
ion
& PF
M R
E pr
ojec
ts re
flect
the
Gra
nt A
gree
men
ts w
hich
hav
e be
en
redu
ced
from
the
“end
orse
d am
ount
” to
rem
ain w
ithin
the
Bank
's p
olicy
of c
omm
ittin
g on
ly up
to a
cap
of 8
5% o
f tot
al d
onor
con
tribu
tions
as
per
AAs.
Th
is is
a ris
k m
itigat
ion
tool
aga
inst
exc
hang
e ra
te fl
uctu
atio
ns.
The
GA
for t
he E
duca
tion
proj
ect t
here
fore
is U
S$17
m a
nd w
ill be
revis
ed to
$1
9m (2
0m -
5%
) the
PFM
can
be
revis
ed to
21.
375m
(22m
- 5
%) o
n re
ceip
t of m
ore
fund
s leg
ally
com
mitt
ed to
the
TF.
Add
itiona
l DFA
T fu
nds
rece
ived
June
201
5 ar
e in
dica
tivel
y al
loca
ted
to P
SD, P
FM a
nd E
duca
tion.
Allo
catio
n ha
s no
t bee
n en
dors
ed b
y SC
yet
for E
duca
tion
and
PFM
and
th
eref
ore
is no
t ref
lecte
d in
the
tabl
e.
2/ P
roje
cted
disb
urse
men
ts e
xcee
ds g
rant
am
ount
. Ad
ditio
nal f
inan
cing
is a
ntic
ipat
ed to
be
adde
d to
this
activ
ity. A
mou
nt w
ill be
det
erm
ined
as
part
of th
e ov
eral
l AF
proj
ect p
repa
ratio
n.
22
Don
or C
ontr
ibut
ions
Rec
eive
d an
d Pr
ojec
ted
Don
ors
Ac
tual
R
ecei
ved
Oct
ober
201
5 -
Dec
embe
r 201
5 Pr
ojec
ted
Janu
ary
2016
- Ju
ne 2
016
Pr
ojec
ted
Aust
ralia
24
,451
,985
2,
336,
100
2,33
6,10
0 U
nite
d Ki
ngdo
m
3,56
1,37
5 3,
000,
000
4,30
2,05
0 D
enm
ark
4,96
0,48
2 0
0 To
tal
32,9
73,8
42
5,33
6,10
0 6,
638,
150
Perc
enta
ge D
isbu
rsed
Aga
inst
Con
tribu
tions
Rec
eive
d: A
ctua
l and
Pro
ject
ions
Actu
al
July
201
5 -
Dec
embe
r 201
5 Ja
nuar
y 20
16 -
June
201
6
Con
tribu
tion
(Dep
osits
) Cum
ulat
ive
32,9
73,8
42
38,3
09,9
42
44,9
48,0
92
Dis
burs
emen
t Cum
ulat
ive
11,8
55,4
74
14,9
98,3
24
27,6
08,3
24
Perc
ent D
isbu
rsed
aga
inst
Dep
osits
36
.0%
39
.1%
61
.4%
23
Mya
nmar
Mul
ti D
onor
Tru
st F
und
Res
ults
Mat
rix
(G
) = G
ende
r-di
sagg
rega
ted
data
O
bjec
tives
: (i)
Su
ppor
t Mya
nmar
’s tr
ansi
tion
and
the
impl
emen
tatio
n of
the
Fram
ewor
k fo
r Eco
nom
ic a
nd S
ocia
l Ref
orm
(FES
R) a
nd N
atio
nal D
evel
opm
ent
Plan
.
(ii)
Enha
nce
coop
erat
ion
betw
een
the
Wor
ld B
ank
Gro
up a
nd D
onor
s to
the
Trus
t Fun
d.
Hig
h Le
vel G
oals
the
MM
TF w
ill c
ontr
ibut
e to
O
utco
mes
Ex
pect
ed b
y 20
19
Mile
ston
es
WB
G In
stru
men
ts
Win
dow
1:
Soc
ial D
evel
opm
ent a
nd In
clus
ion
Incr
ease
d so
cial
cap
ital
and
incl
usio
n th
roug
h pa
rtic
ipat
ory
loca
l de
velo
pmen
t and
ser
vice
pr
ovis
ion
Out
com
e 1:
Ex
pand
ed c
over
age
of p
oor
stud
ents
in th
e St
uden
t Stip
end
Prog
ram
. In
crea
sed
num
ber o
f stu
dent
s re
ceivi
ng
paym
ent p
rogr
am.
Bas
elin
e 0
to 1
00,0
00
stud
ents
by
2017
/18.
With
at l
east
50%
of
bene
ficia
ries
bein
g fe
mal
es.(G
) O
utco
me
2: I
mpr
oved
relia
bilit
y an
d tra
nspa
renc
y of
Sch
ool G
rant
s. I
ncre
ased
nu
mbe
r of t
owns
hips
dist
ribut
ing
scho
ol
gran
ts a
ccor
ding
to a
form
ula.
Bas
elin
e 0
tow
nshi
ps to
200
tow
nshi
ps b
y 20
17/1
8.
Stud
ent S
tipen
ds G
uide
lines
ado
pted
that
(i)
incl
ude
obje
ctiv
es a
nd p
erfo
rman
ce in
dica
tors
, (ii)
use
obje
ctiv
e cr
iteria
and
cle
ar p
roce
dure
s fo
r ta
rget
ing
stip
ends
fund
ing
by e
duca
tiona
l and
so
cio-
econ
omic
sta
tus
and
(iii) d
efin
e fin
anci
al
man
agem
ent p
roce
dure
s.
Achi
eved
Pa
ymen
t of s
tipen
ds in
acc
orda
nce
with
the
guid
elin
es. P
rogr
ess:
App
roxi
mat
ely
37,0
00
stud
ents
wer
e se
lect
ed a
nd re
ceiv
ed s
tipen
ds
betw
een
$6- $
10 p
er m
onth
(dep
endi
ng o
n gr
ade)
fo
r 10
mon
ths
in 2
014-
2015
, in
8 to
wns
hips
. With
5.
33%
of g
irls
bein
g re
cipi
ents
for t
he s
tipen
ds
for t
he s
choo
l yea
r 201
4-15
U
PDAT
ED P
rogr
ess:
An
addi
tiona
l 100
,000
st
uden
ts a
re e
xpec
ted
to re
ceiv
e st
ipen
ds in
19
addi
tiona
l tow
nshi
ps d
urin
g th
e sc
hool
yea
r 20
15-1
6.
Scho
ol G
rant
s G
uide
lines
ado
pted
that
(i) i
nclu
de
obje
ctiv
es a
nd p
erfo
rman
ce in
dica
tors
and
(ii)
defin
e fin
anci
al m
anag
emen
t pro
cedu
res.
Ac
hiev
ed
UPD
ATED
Pro
gres
s: S
choo
l gra
nt fu
nds
wer
e tra
nsfe
rred
on ti
me
and
in a
ccor
danc
e w
ith th
e fo
rmul
a in
abo
ut 2
29 to
wns
hips
(out
of 3
30 to
tal)
Ope
ratio
n:
Dec
entra
lizin
g Fu
ndin
g to
Sch
ools
Pr
ojec
t.
Ann
ex B
Mya
nmar
Mul
ti D
ono
r Tr
ust
Fun
d R
esul
ts M
atri
x
24
Hig
h Le
vel G
oals
the
MM
TF w
ill c
ontr
ibut
e to
O
utco
mes
Ex
pect
ed b
y 20
19
Mile
ston
es
WB
G In
stru
men
ts
Out
com
e ha
s be
en a
chie
ved:
M
ore
than
20
0 to
wns
hips
hav
e di
strib
uted
thei
r sch
ool
gran
ts a
ccor
ding
to th
e fo
rmul
a.
Out
com
e 3:
Stre
ngth
en th
e qu
ality
of
MoE
’s m
onito
ring
and
repo
rting
act
iviti
es;
Mon
itor i
mpa
ct o
f the
stip
ends
and
gra
nt
prog
ram
s.
in M
yanm
ar d
urin
g sc
hool
yea
r 201
4-15
. The
firs
t tra
nsfe
r for
sch
ool y
ear 2
015-
16 to
ok p
lace
in
June
201
5. I
n ad
ditio
n, s
choo
ls in
floo
d-af
fect
ed
tow
nshi
ps re
ceiv
ed a
n ea
rly tr
ansf
er o
f the
ir se
cond
and
fina
l ann
ual s
choo
l gra
nt fu
ndin
g fo
r ye
ar 2
015-
16.
Qua
ntita
tive
scho
ol a
nd h
ouse
hold
sur
veys
co
nduc
ted.
(G)
UPD
ATED
Pro
gres
s: S
choo
l and
hou
seho
ld
surv
eys
bega
n in
Sep
tem
ber 2
015
and
will
be
com
plet
ed b
y D
ecem
ber 2
015.
Ini
tial r
esul
ts w
ill be
repo
rted
at th
e Ja
nuar
y 20
16 P
roje
ct S
teer
ing
Com
mitt
ee m
eetin
g.
Rand
om S
pot C
heck
s ca
rried
out
U
PDAT
ED P
rogr
ess:
Spo
t che
cks
agai
nst D
LI
resu
lts w
ere
cond
ucte
d du
ring
April
and
May
20
15 a
nd c
onfir
med
that
the
prog
ram
is b
eing
im
plem
ente
d ac
cord
ing
to th
e gu
idel
ines
. Bas
ed
on th
e ve
rific
atio
n of
DLI
resu
lts U
S$22
.8 m
illion
w
as d
isbu
rsed
. Q
ualit
ativ
e as
sess
men
ts o
f sch
ool g
rant
s an
d st
ipen
ds p
rogr
ams
in 1
2-15
tow
nshi
ps
com
plet
ed. (
G) P
rogr
ess:
Qua
litat
ive
asse
ssm
ents
w
ere
carri
ed o
ut in
12
tow
nshi
ps d
urin
g th
e 20
14-
15 s
choo
l yea
r; an
ass
essm
ent r
epor
t was
di
scus
sed
at th
e Ja
nuar
y 20
15 P
roje
ct S
teer
ing
Com
mitt
ee M
eetin
g.
UPD
ATED
Pro
gres
s:
A fo
llow
-up
asse
ssm
ent
and
repo
rt co
verin
g 12
add
ition
al t
owns
hips
is
unde
r pr
epar
atio
n an
d w
ill be
dis
cuss
ed a
t th
e 20
16
Janu
ary
Proj
ect
Stee
ring
Com
mitt
ee
mee
ting.
Mon
itorin
g an
d Ev
alua
tion
of th
e Sc
hool
Gra
nts
Stip
ends
Pro
gram
.
25
Hig
h Le
vel G
oals
the
MM
TF w
ill c
ontr
ibut
e to
O
utco
mes
Ex
pect
ed b
y 20
19
Mile
ston
es
WB
G In
stru
men
ts
Win
dow
2:
Inst
itutio
nal S
tren
gthe
ning
In
stitu
tions
st
reng
then
ed to
del
iver
tr
ansp
aren
t and
im
prov
ed m
anag
emen
t of
pub
lic re
venu
e,
expe
nditu
res
and
serv
ices
and
incr
ease
d ac
cess
to fi
nanc
e
Out
com
e 1:
Gre
ater
fund
ing
for s
ervi
ce
deliv
ery
by (i
) con
tribu
ting
to e
nhan
cing
the
Tax
to G
DP
ratio
and
(ii)
decr
easi
ng th
e co
mpo
sitio
nal v
aria
nce
of b
udge
t app
rove
d to
exp
endi
ture
. (i)
Bas
elin
e 6.
2% in
FY
2012
/13
to o
ver 1
0% in
FY
2108
/19
(ii)
Base
line
24%
in F
Y201
1/12
to 1
4%.
Prog
ress
: Tax
to G
DP
ratio
incr
ease
d to
7.4
pe
rcen
t in
2014
/15.
Red
uctio
n in
var
iatio
n of
ex
pend
iture
s to
less
than
20
perc
ent i
n 20
13/1
4 U
PDAT
ED P
rogr
ess:
Tax
to G
DP
ratio
pr
ojec
ted
to in
crea
se to
8.1
per
cent
of G
DP
in 2
015/
16. R
educ
tion
in v
aria
tion
betw
een
budg
et e
stim
ates
for 2
014/
15 a
nd re
vise
d es
timat
es fo
r 201
4/15
less
than
10
perc
ent.
Out
com
e 2:
Fo
ster
acc
ount
abilit
y fo
r se
rvic
e de
liver
y.
Gov
ernm
ent c
omm
itmen
t to
fisc
al tr
ansp
aren
cy in
line
with
glo
bal g
ood
prac
tice,
incl
udin
g re
port
on re
venu
es fr
om
natu
ral r
esou
rces
. Bas
elin
e (i)
key
fisc
al
docu
men
ts 1
to 4
ann
ually
1 (ii)
natu
ral
reso
urce
info
rmat
ion
base
line
not a
vaila
ble
to
avai
labl
e.
Prog
ress
: For
201
5/16
MoF
pro
duce
d a
Gui
de o
n th
e Ex
ecut
ive’
s Pr
opos
al. T
his
is in
ad
ditio
n to
the
publ
icat
ion
of th
e en
acte
d bu
dget
. Thi
s ra
ised
pub
licat
ion
of k
ey
info
rmat
ion
from
1 to
2 –
on-
track
to m
eet
outc
ome
crite
ria.
Stre
ngth
enin
g ta
x ad
min
istra
tion
incl
udin
g in
crea
sing
tax
colle
ctio
n fro
m la
rge
taxp
ayer
s.
Prog
ress
: Lar
ge T
ax O
ffice
(LTO
) est
ablis
hed
April
1, 2
014;
sel
f-ass
essm
ent s
yste
m
esta
blis
hed
and
retu
rns
bein
g re
ceiv
ed.
UPD
ATED
Pro
gres
s: L
TO re
ceiv
ed fi
rst s
elf-
asse
ssm
ent f
orm
s fo
r LTO
adm
inis
tere
d ta
xpay
ers
in A
pril
2015
with
a c
ompl
ianc
e ra
te o
f 95
perc
ent.
Incr
easi
ng c
redi
bilit
y of
bud
get a
lloca
tions
for
line
min
istri
es.
Prog
ress
: Med
ium
Ter
m F
isca
l Fra
mew
ork
(MTF
F) p
rovi
ded
ceilin
gs to
min
istri
es, s
tate
s an
d re
gion
s fo
r 201
5/16
incr
easi
ng
pred
icta
bilit
y of
the
reso
urce
env
elop
e.
UPD
ATED
Pro
gres
s: M
TFF
impl
emen
ted
and
requ
ired
by L
aw o
n Bu
dget
doc
umen
ts
pres
enta
tion
to P
arlia
men
t pas
sed
by
Parli
amen
t in
2015
. For
FY2
015/
16 M
OF
has
furth
er re
fined
the
cont
ribut
ions
to S
tate
and
Re
gion
s to
refle
ct fi
scal
con
stra
ints
and
eq
uity
issu
es.
Ope
ratio
n:
Mod
erni
zatio
n of
Pu
blic
Fin
anci
al
Man
agem
ent P
roje
ct
Impl
emen
tatio
n Su
ppor
t to
Publ
ic
Fina
ncia
l Man
agem
ent
and
Perfo
rman
ce
Prog
ram
1N
ine
core
doc
umen
ts in
clud
e: (i
) pre
budg
et s
tate
men
t; (ii
) ann
ual E
xecu
tive
budg
et p
ropo
sal d
ocum
enta
tion,
(iii)
ena
cted
bud
get,
(iv) i
n-ye
ar a
nd y
ear
end
budg
et e
xecu
tion
repo
rts,
(v) a
udite
d-
an
nual
fina
ncia
l sta
tem
ents
, (vi
) ext
erna
l aud
it re
port
s, (v
ii) s
umm
ary
of th
e E
xecu
tive
budg
et p
ropo
sal;
(viii)
med
ium
term
bud
get p
ropo
sal,
and
(ix) s
umm
ary
of e
nact
ed b
udge
t.26
Hig
h Le
vel G
oals
the
MM
TF w
ill c
ontr
ibut
e to
O
utco
mes
Ex
pect
ed b
y 20
19
Mile
ston
es
WB
G In
stru
men
ts
Win
dow
2:
Inst
itutio
nal S
tren
gthe
ning
In
stitu
tions
st
reng
then
ed to
del
iver
tr
ansp
aren
t and
im
prov
ed m
anag
emen
t of
pub
lic re
venu
e,
expe
nditu
res
and
serv
ices
and
incr
ease
d ac
cess
to fi
nanc
e
Out
com
e 1:
Gre
ater
fund
ing
for s
ervi
ce
deliv
ery
by (i
) con
tribu
ting
to e
nhan
cing
the
Tax
to G
DP
ratio
and
(ii)
decr
easi
ng th
e co
mpo
sitio
nal v
aria
nce
of b
udge
t app
rove
d to
exp
endi
ture
. (i)
Bas
elin
e 6.
2% in
FY
2012
/13
to o
ver 1
0% in
FY
2108
/19
(ii)
Base
line
24%
in F
Y201
1/12
to 1
4%.
Prog
ress
: Tax
to G
DP
ratio
incr
ease
d to
7.4
pe
rcen
t in
2014
/15.
Red
uctio
n in
var
iatio
n of
ex
pend
iture
s to
less
than
20
perc
ent i
n 20
13/1
4 U
PDAT
ED P
rogr
ess:
Tax
to G
DP
ratio
pr
ojec
ted
to in
crea
se to
8.1
per
cent
of G
DP
in 2
015/
16. R
educ
tion
in v
aria
tion
betw
een
budg
et e
stim
ates
for 2
014/
15 a
nd re
vise
d es
timat
es fo
r 201
4/15
less
than
10
perc
ent.
Out
com
e 2:
Fo
ster
acc
ount
abilit
y fo
r se
rvic
e de
liver
y.
Gov
ernm
ent c
omm
itmen
t to
fisc
al tr
ansp
aren
cy in
line
with
glo
bal g
ood
prac
tice,
incl
udin
g re
port
on re
venu
es fr
om
natu
ral r
esou
rces
. Bas
elin
e (i)
key
fisc
al
docu
men
ts 1
to 4
ann
ually
1 (ii)
natu
ral
reso
urce
info
rmat
ion
base
line
not a
vaila
ble
to
avai
labl
e.
Prog
ress
: For
201
5/16
MoF
pro
duce
d a
Gui
de o
n th
e Ex
ecut
ive’
s Pr
opos
al. T
his
is in
ad
ditio
n to
the
publ
icat
ion
of th
e en
acte
d bu
dget
. Thi
s ra
ised
pub
licat
ion
of k
ey
info
rmat
ion
from
1 to
2 –
on-
track
to m
eet
outc
ome
crite
ria.
Stre
ngth
enin
g ta
x ad
min
istra
tion
incl
udin
g in
crea
sing
tax
colle
ctio
n fro
m la
rge
taxp
ayer
s.
Prog
ress
: Lar
ge T
ax O
ffice
(LTO
) est
ablis
hed
April
1, 2
014;
sel
f-ass
essm
ent s
yste
m
esta
blis
hed
and
retu
rns
bein
g re
ceiv
ed.
UPD
ATED
Pro
gres
s: L
TO re
ceiv
ed fi
rst s
elf-
asse
ssm
ent f
orm
s fo
r LTO
adm
inis
tere
d ta
xpay
ers
in A
pril
2015
with
a c
ompl
ianc
e ra
te o
f 95
perc
ent.
Incr
easi
ng c
redi
bilit
y of
bud
get a
lloca
tions
for
line
min
istri
es.
Prog
ress
: Med
ium
Ter
m F
isca
l Fra
mew
ork
(MTF
F) p
rovi
ded
ceilin
gs to
min
istri
es, s
tate
s an
d re
gion
s fo
r 201
5/16
inc r
easi
ng
pred
icta
bilit
y of
the
reso
urce
env
elop
e.
UPD
ATED
Pro
gres
s: M
TFF
impl
emen
ted
and
requ
ired
by L
aw o
n Bu
dget
doc
umen
ts
pres
enta
tion
to P
arlia
men
t pas
sed
by
Parli
amen
t in
2015
. For
FY2
015/
16 M
OF
has
furth
er re
fined
the
cont
ribut
ions
to S
tate
and
Re
gion
s to
refle
ct fi
scal
con
stra
ints
and
eq
uity
issu
es.
Ope
ratio
n:
Mod
erni
zatio
n of
Pu
blic
Fin
anci
al
Man
agem
ent P
roje
ct
Impl
emen
tatio
n Su
ppor
t to
Publ
ic
Fina
ncia
l Man
agem
ent
and
Perfo
rman
ce
Prog
ram
1N
ine
core
doc
umen
ts in
clud
e: (i
) pre
budg
et s
tate
men
t; (ii
) ann
ual E
xecu
tive
budg
et p
ropo
sal d
ocum
enta
tion,
(iii)
ena
cted
bud
get,
(iv) i
n-ye
ar a
nd y
ear
end
budg
et e
xecu
tion
repo
rts,
(v) a
udite
d-
an
nual
fina
ncia
l sta
tem
ents
, (vi
) ext
erna
l aud
it re
port
s, (v
ii) s
umm
ary
of th
e E
xecu
tive
budg
et p
ropo
sal;
(viii)
med
ium
term
bud
get p
ropo
sal,
and
(ix) s
umm
ary
of e
nact
ed b
udge
t.
Hig
h Le
vel G
oals
the
MM
TF w
ill c
ontr
ibut
e to
O
utco
mes
Ex
pect
ed b
y 20
19
Mile
ston
es
WB
G In
stru
men
ts
Inst
itutio
ns
stre
ngth
ened
to d
eliv
er
tran
spar
ent a
nd
impr
oved
man
agem
ent
of p
ublic
reve
nue,
ex
pend
iture
s an
d se
rvic
es a
nd in
crea
sed
acce
ss to
fina
nce
Out
com
e 2
(con
t.)
UPD
ATED
Pro
gres
s: L
aw o
n Bu
dget
do
cum
ents
pre
sent
atio
n to
Par
liam
ent
pass
ed in
201
5 re
quiri
ng p
ublic
atio
n of
the
Med
ium
Ter
m F
isca
l Pol
icy
Stat
emen
t, D
ebt
Sust
aina
bilit
y An
alys
is, B
udge
t Stra
tegy
Pa
per,
and
the
Citi
zen’
s Bu
dget
on
the
April
Bu
dget
ses
sion
. MO
F ar
e on
trac
k to
mee
t th
ese
legi
slat
ive
requ
irem
ents
. With
the
EITI
re
port
to b
e pu
blis
hed
in J
anua
ry 2
016,
na
tura
l res
ourc
e ba
selin
e in
form
atio
n w
ill be
m
ade
avai
labl
e.
Key
fisca
l doc
umen
ts a
nd re
port
on
reve
nues
from
nat
ural
reso
urce
s be
com
e av
aila
ble
publ
icly
Pr
ogre
ss: E
xtra
ctiv
e In
dust
ries
Tran
spar
ency
Initi
ativ
e pr
oces
s un
derw
ay
with
key
mile
ston
es m
et. F
irst r
epor
t ex
pect
ed in
Jan
uary
201
6.
UPD
ATED
Pr
ogre
ss:
EITI
Se
cret
aria
t m
oved
to
MO
F; p
repa
rato
ry w
ork
for
the
first
repo
rt on
-goi
ng. O
n tra
ck to
be
met
by
Janu
ary
2016
.
27
Hig
h Le
vel G
oals
the
MM
TF w
ill c
ontr
ibut
e to
O
utco
mes
Ex
pect
ed b
y 20
19
Mile
ston
es
WB
G In
stru
men
ts
Win
dow
4:
Priv
ate
Sect
or D
evel
opm
ent
Incr
ease
d pr
ivat
e se
ctor
de
velo
pmen
t, in
clud
ing
crea
tion
of e
cono
mic
op
port
uniti
es fo
r men
an
d w
omen
and
in
vest
men
t clim
ate
refo
rms.
Out
com
e 1:
Impr
ove
the
busi
ness
en
viro
nmen
t by
supp
ortin
g le
gal a
nd
regu
lato
ry re
form
s.
Out
com
e 2:
St
reng
then
ing
the
advo
cacy
ro
le o
f the
priv
ate
sect
or.
Regu
latio
ns a
nd p
roce
dure
s fo
r app
rovi
ng
fore
ign
and
dom
estic
inve
stm
ent r
evis
ed
and
refo
rmed
. Pr
ogre
ss: D
ICA
issu
ed tw
o ne
w re
gula
tions
to: i
) lib
eral
ize F
DI
rest
rictio
ns; a
nd ii
) to
list a
ctiv
ities
that
no
long
er q
ualif
y fo
r the
cus
tom
s du
ty a
nd
com
mer
cial
tax
exem
ptio
ns
En
actm
ent o
f a n
ew in
vest
men
t law
. Pr
ogre
ss: N
ew in
vest
men
t law
dra
fted
and
cons
ulta
tions
on
first
and
sec
ond
draf
ts
with
priv
ate
sect
or a
nd C
SOs
unde
rtake
n w
ith IF
C in
put a
nd s
uppo
rt U
PDAT
ED P
rogr
ess:
Thi
rd d
raft
subm
itted
to
the
Atto
rney
Gen
eral
’s O
ffice
follo
win
g co
nsul
tatio
n w
ith p
rivat
e se
ctor
/CSO
s.
M
yanm
ar B
usin
ess
Foru
m e
stab
lishe
d an
d pl
enar
y ev
ent h
eld.
Pr
ogre
ss: M
yanm
ar B
usin
ess
Foru
m (M
BF)
esta
blis
hed.
Six
Wor
king
Gro
ups
esta
blis
hed
with
11
WG
mee
tings
hel
d.
Thre
e is
sues
-bas
ed W
Gs
esta
blis
hed
on
Land
, Cus
tom
s an
d Ta
xatio
n. S
ix p
ublic
-pr
ivat
e W
G m
eetin
gs h
eld
with
issu
es
rais
ed b
y pr
ivat
e se
ctor
to re
leva
nt
gove
rnm
ent a
utho
ritie
s. B
usin
ess
sent
imen
t su
rvey
com
plet
ed
Ope
ratio
n:
Tech
nica
l Ass
ista
nce
to
supp
ort l
egal
and
re
gula
tory
refo
rm a
nd
supp
ort
impl
emen
tatio
n.
28
Hig
h Le
vel G
oals
the
MM
TF w
ill c
ontr
ibut
e to
O
utco
mes
Ex
pect
ed b
y 20
19
Mile
ston
es
WB
G In
stru
men
ts
Incr
ease
d pr
ivat
e se
ctor
de
velo
pmen
t, in
clud
ing
crea
tion
of e
cono
mic
op
port
uniti
es fo
r men
an
d w
omen
and
in
vest
men
t clim
ate
refo
rms.
Out
com
e 2:
(con
t.)
Out
com
e 3:
Str
eam
linin
g tr
ade
regu
latio
ns
(non
-tar
iff m
easu
res)
and
trad
e lic
ensi
ng
UPD
ATED
Pro
gres
s: 2
2 Pu
blic
Priv
ate
Dia
logu
e m
eetin
gs h
ave
been
hel
d to
di
scus
s is
sues
rais
ed b
y th
e pr
ivat
e se
ctor
w
ith th
e go
vern
men
t tha
nk to
MBF
pro
cess
: (i)
Abo
lishm
ent o
f ban
k ce
rtific
ate
for
obta
inin
g cu
stom
s fin
e on
impo
rt of
car
sp
are
parts
for w
hich
no
impo
rt lic
ence
re
quire
d.
Actio
n pl
an fo
r ref
orm
dev
elop
ed w
hich
pr
iorit
izes
impl
emen
tatio
n ef
forts
. Pro
gres
s:
Enga
gem
ent w
ith S
peci
al T
ask
Forc
e on
Bu
sine
ss T
rade
Pro
mot
ion
initi
ated
on
regu
lato
ry re
form
with
initi
al fo
cus
on D
oing
Bu
sine
ss in
dica
tors
. Pr
ogre
ss: T
he M
inis
try o
f Com
mer
ce
subm
itted
a re
form
pla
n fo
r app
rova
l by
the
Cab
inet
to re
duce
the
num
ber o
f pro
duct
s re
quiri
ng li
cens
e fo
r im
port.
The
pro
pose
d re
form
is e
xpec
ted
to c
ut th
e nu
mbe
r im
port
prod
ucts
requ
iring
impo
rt lic
ense
fro
m 1
00%
tarif
f lin
es to
50%
.
29
32
The World Bank Group, Yangon Office
No.57, Pyay Road,6 1/2 Mile, Hlaing Township,Yangon, MyanmarTel: +95 1 654824Internet: http://www.worldbank.org/en/country/myanmarEmail: [email protected]