Progestão Mato Grosso: Public Sector Management Efficiency

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The proposed IPF operation follows the overall Progestão approach of providing technical assistance around the whole-of-government functions to the State of Mato Grosso to improve efficiency in the management of public resources and through targeted actions in the Health, Social Protection and Environment sectors.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.The Progestão Mato Grosso Project will include the following components and sub-components:Component 1: Whole-of-Government Management Systems (US$ 38.5 million)1.1: Human Resource Management. Activities financed under this subcomponent mainly target the central HR management of the State of Mato Grosso, but also support departments and agencies. 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, aiming to increase women’s participation; (iii) design and implementation of measures to strengthen harassment reporting mechanism using the government’s grievance redress mechanism; (iv) design and implementation of a management analytics system and artificial intelligence for automated wage bill audits; (v) functional review of the public administration careers and positions; (vi) periodic staff surveys to assess reform implementation and support change management; and (vii) communications and capacity building to support the rollout and implementation of new tools.1.2: Pensions Management. Activities financed under this subcomponent include: (i) development and implementation of an actuarial impact calculation system; (ii) design and implementation of a pension financial asset and liability management system implemented to balance public accounts; (iii) a full financial audit of all pension benefits and payments (iv) design and implementation of a pension fund investment management strategy to maximize the State’s portfolio and integrate Environmental Social Governance (ESG) factors in the investing strategy (v) procurement of energy efficient hardware to support the deployment of these systems; and (vi) communications and capacity building to support the rollout and implementation of new tools.1.3: Public Procurement. Activities financed under this subcomponent support procurement in central and sectoral areas of procurement in the State of Mato Grosso. Activities include: (i) development and implementation 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, including green and climate sensitive procurement and the redesign and automation of key processes to ensure cost-effective acquisitions; (iii) development and implementation of a stock management system integrated to procurement, including an e-marketplace portal; (iv) design and implementation of a strategic sourcing methodology to help identify demand for goods and services across the government; (v) application of artificial intelligence using electronic invoices and to identify and reduce fraud and corrupt practices; (vi) establish a women-owned business definition (>51 percent ownership/stake by a woman/women; women as CEO/COO; or women-sole-proprietors; (vii) development and implementation of a system that certifies enterprises owned by women and automatize data aggregation by the gender attribute; (viii) capacity building program for officials working in procurement across the state; and (ix) procurement of energy efficient hardware to support the deployment of these systems.1.4: Public Investment Management and Budgeting. Activities financed under this subcomponent are focused on enhancing public expenditure efficiency and effectiveness through : (i) development and implementation of a public investment system, 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) development and implementation of an electronic tool for the management of the portfolio of technically appraised, implementation ready projects to support Mato Grosso’s 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 a management system for the transfer of resources from the State of Mato Grosso to municipalities, allowing for digital monitoring of the preparation and implementation stage; (vi) review of budgeting practices to embed green and gender budgeting practices; and (vii) procurement of energy efficient hardware to support the rollout and implementation of new tools.1.5: Asset Management. Activities financed under this subcomponent include: (i) contracting of technical support to assess and update information on the state’s real estate properties, including geospatial data, area, occupation rate, valuations and registry status; (ii) development and implementation of a comprehensive public asset management system that includes a climate risk assessment of each real estate asset; (iii) energy audits based on CCB methodology for selected government properties, focused on reducing energy consumption or GHG emissions; (iv) 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; (v) capacity building on asset management practices and support the rollout and implementation of new tools; and (vi) procurement of energy efficient hardware to support the rollout and implementation of new tools.Component 2: Management Systems in Strategic Sectors (US$ 9.5 million)2.1: Health. Activities financed under this subcomponent include: (I) development of an expenditure review to identify cost structure and assess budgeting practices in the state's public health units; (ii) implementation of systems to support budgeting and expenditure management in the State's health units; (iii) introduction of communication and capacity-building to support the rollout and implementation of new tools; and (iv) procurement of energy efficient hardware to support the rollout and implementation of new tools.2.2: Social Assistance. Activities financed under this subcomponent support SETASC management act ivities and contribute indirectly to monitor implementation in municipalities. Activities include: (I) design and implementation of an integrated management system to facilitate the execution of social assistance programs, including financial management, cash transfer programs and management of other benefits, as well as internal registries; (ii) development and implementation of a transparency panel to support decision-making in social assistance; (iii) digitalization and automation of socia