Progestão Alagoas: Public Sector Management Efficiency

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The proposed project is the first operation in a Series of Projects (SoP) under the Progestão Program designed to assist Brazilian States implement reforms that will improve efficiency in public expenditure. The Progestão Program recognizes that the subnational fiscal crisis is largely a result of structural problems in public sector management. The Program, available to all Brazilian States regardless of their fiscal situation, will provide technical assistance to help participating States modernize and improve the following whole-of-government functions through investments in management reforms and information systems: human resource management; pensions; public procurement; public investment; debt management; state-owned Enterprises; and asset management. The Program also supports investments in management reforms and information systems in four strategic sectors: health, education, social assistance, and environment. Progestão Alagoas Project will help tackle public sector management and public sector inefficiencies through investments in management reforms and information systems in: human resource management; pensions; public procurement; public investment; and asset management. Progestão Alagoas also supports investments in management reforms and information systems in four strategic sectors: health, education, social assistance, and environment.The Progestão Alagoas Project will include three components:Component 1: Whole-of-Government Management Systems includes activities related to human resources management, pensions management, public procurement, public investment management and budgeting, and asset management. The component includes five subcomponents:1.1: Human Resource Management. Activities include: (i) development of a strategic workforce planning system and functional reviews to identify the competencies needed and plan organizations’ staff recruitment and deployment in all State departments and selected agencies; (ii) design and implementation of selection processes for senior management positions; (iii) design and implementation of measures to strengthen government capacity using the government’s grievance redress mechanism; (iv) Implementation of a transactional HRM information system; (v) design and implementation of a management analytics system and artificial intelligence for automated wage bill audits; (vi) periodic staff surveys to assess reform implementation and support change management; and (iv) communications and capacity building.1.2: Pensions Management. Activities financed under this subcomponent include: (i) design and implementation of a pension fund investment management strategy to maximize the State’s portfolio and integrate Environmental Social Governance factors in the investing strategy; (ii) development of a pension management information system to implement the new benefits scheme and capacity-building to improve management of pension benefits; (iii) procuring energy-efficient hardware to support the deployment of these systems; and (iv) communications and capacity building.1.3: Public Procurement. Activities financed include: (i) development of a sustainable procurement strategy, which addresses environmental, climate and gender equality considerations, and an implementation plan to help embed sustainable procurement across the State's purchases; (ii) development and implementation of a centralized e-procurement system; (iii) development and implementation of an integrated digital system for processing and analyzing data and managerial information in public procurement and contract management, including data aggregation with gender attributes; (iv) development and implementation of digital systems that support contract management functions and the procurement low value, non-complex goods and services; (v) development and implementation of a system that certifies enterprises owned by women and automatize data aggregation by the gender attribute; (vi) offer training for women participate in public procurement process; (vii) development and implementation of e-marketplace solution for procuring off-the-shelf goods, stationery and products through an online platform that integrates state’ s agencies and suppliers; (viii) capacity building,Sub-Component 1.4: Public Investment Management and Budgeting. Activities financed include: (i) development and implementation of a public project management system for State’s investments, integrating environmental and climate change considerations in project preparation, screening and appraisal; (ii) development and implementation of tools to support environmental and climate change risk assessment and project screening; (iii) preparation of a portfolio of technically appraised, implementation ready projects to support Alagoas’ development, environmental and climate change objectives; (iv) design and implementation of a governance strategy to manage the project portfolio execution; (v) development and implementation of internal integrity and audit system, including data analytics, to identify potential fraud in expenditures; (v) development and implementation of a contract and transfer management system to monitor and evaluate projects financed at the municipal level, including systems accessible to the public to monitor physical and financial progress, and provide feedback; (vi) design and implementation of a public expenditure review, including gender equity and climate change considerations; (vii) design and implementation of budgeting practices to embed green and gender budgeting practices; (viii) capacity building for state and municipal government officials on public investment and expenditure management practices, to support the rollout and implementation of new tools and the integration of gender and climate change considerations; and (ix) periodic staff surveys to assess reform implementation and support change management.1.5: Asset Management. Activities include: (i) hiring of technical support to assess up-to-date information of real estate properties, including geospatial data, area, occupation rate, valuations and registry’s status; (ii) development and implementation of a comprehensive public asset management system that includes a climate risk assessment of real estate assets (ii) energy audits based on CCB methodology for selected government properties, focused on reducing energy consumption or GHG emissions; (iii) acquisition and implementation of a system for identification and recording of movable assets; (iv) rationalizing the movable assets and identifying opportunities to shift to electrify and improve energy efficiency; (v) development and implementation of a system for mapping costs of information and communication technologies (ICTs), including identification of synergies between government-to-government systems, interoperability, and a governance strategy for new acquisitions and maintenance; and (vi) capacity building on asset management practices and support the rollout and implementation of new tools.Component 2: Management Systems in Strategic Sectors includes four strategic sectors – education, health, social assistance, and environment – focusing on the highest priority management systems that can impact on the efficiency of resource allocation. 2.1: Education. Activities financed include: (i) development and implementation of IT systems to ensure digitalization and improve enrollment and class formation for students, allowing procedures to be performed online, including reliable contact of student parents, georeferencing of students, and efficient and automated creation of classes at the beginning of the school year, considering the local pedagogical criteria; (ii) design and implementation of a teacher allocation system, covering over 6,800 teacher assignments, allowing procedures to be performed online, including alerts to teachers of available classes and the integration and automation of this procedures with the enrollment sy