Progestão Piauí: Public Sector Management Efficiency

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Progestão Piaui is the fifth operation in a Series of Projects (SoP) under the Program designed to assist the Brazilian States to implement reforms to improve efficiency in public resource management. The objective of the Progestão Program, as stated in the Memorandum of Understanding between the National Secretariat of Treasury (Secretaria do Tesouro Nacional, STN) and the World Bank, is to develop the fiscal budget and asset management of the Brazilian governments through actions that aim at reducing and rationalizing public spending with long-term results to contribute to the fiscal sustainability of subnational entities. The Piaui Progestão project addresses five whole-of-government functions (human resource management, pensions, public investment management, asset management, and procurement) and three strategic sectors (health, education, and social assistance). These focus areas were selected applying the Progestão Program selectivity criteria: strategic alignment, implementation capacity, impact on beneficiaries, and alignment with World Bank corporate commitments.The Project will support investments mainly in management information systems and reforms for whole-of-government functions and in strategic sectors in the State of Piaui. The project scope and structure are aligned with the Progestão Program. Specific interventions in sectors were selected after consultation with government officials and based on their contributions to improvements in efficiency and implementation readiness. The project will support management systems in health, education, and social assistance management. The project will have three components.Component 1. Whole-of-Government Management Systems (US$36.8 million)Sub-Component 1.1: Human Resource Management. Activities include: (i) strategic workforce right-sizing of all State Secretariats and subsidiaries; ((i) strategic workforce right-sizing of selected agencies and departments; (ii) design and implementation of workforce right-sizing platform integrated with the human resources management system to identify core competencies of public officials and organizations’ adequate hiring needs; (iii) implementation of a personnel management dashboard, including dynamic distribution of the workforce, replacement alarms and automated reallocation documentation; (iv) development and implementation of a management analytics and artificial intelligence system for automated payroll audit to reduce errors and fraud; (v) automation of human resources management services and other processes identified through the strategic workforce planning; (vi) periodic staff surveys to assess reform implementation and support change management; (vii) communications and capacity building to support the rollout and implementation of new tools; and (viii) procurement of energy-efficient hardware to support the rollout and implementation of new tools.Sub-Component 1.2: Pensions. Activities include (i) design and implementation of pension management system functionalities t hat support auditing the pensions payroll and unifying management of benefit concession for all branches of government based on remuneration history and verification of actual contribution payments, including improvements in users‘ interface and access to services through the digital platform; (ii) expansion and update of the pension record management information system to increase efficiency and enable operational, actuarial, and financial analyses to reduce costs and allow for better long term financial planning; (iii) procurement of energy-efficient hardware to support the implementation of these systems; and (iv) capacity building to support the deployment and implementation of new tools.Sub-Component 1.3: Public Procurement. Activities include: (i) development of a sustainable procurement strategy, which addresses environmental, climate and gender equality considerations as relevant, and an implementation plan to help embed sustainable procurement across the State's purchases; (ii) development and implementation of an integrated system for sustainable e-procurement, including the redesign and automation of key processes, and reviewing the regulatory framework and institutional arrangements to increase transparency; (iii) design and implementation of integrated dashboards with reliable data aligned to sustainability and gender equity practices; (iv) application of artificial intelligence using electronic invoices to identify and reduce fraud and corrupt practices; (v) design and implementation strategic sourcing methodology to help identify demand for goods and services across the government; (vi) capacity building program for officials working in procurement across the state; and (vi) procurement of energy-efficient hardware to support the deployment of these systems.Sub-Component 1.4: Public Investment Management and Budgeting. Activities include: (i) development and implementation of a public project management information system for State’s investments, integrating project preparation, screening and appraisal; (ii) preparation of a portfolio of technically appraised, implementation ready projects; (ii) preparation of a portfolio of technically appraised, implementation ready projects; (iii) design and implementation of a governance strategy to manage the project portfolio execution; (iv) design and implementation of sustainable budgeting systems and practices; (v) development and implementation of a management system for the transfer of resources from the State of Piaui to municipalities and organizations, allowing for digital monitoring of project preparation, implementation and accounting; (vii) capacity building for state and municipal government officials on sustainable public investment and expenditure management practices, to support the rollout and implementation of new tools; and (vii) periodic staff surveys to assess reform implementation and support change management.Sub-Component 1.5: Asset Management. Activities include (i) 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 modules in the public asset management system that includes a climate risk assessment of real estate assets, strategy panels and information for decision making and fleet management; (iii) energy audits based on CCB methodology for selected government properties, focused on reducing energy consumption; (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; and (v) capacity building on asset management practices and support the rollout and implementation of new tools.Component 2. Management Systems in Strategic Sectors (US$16 million)Sub-Component 2.1: Health. Activities include (i) development of an expenditure review to identify cost structure and assess budgeting practices in the state’s hospitals; (ii) implementation of an information system to support budgeting and expenditure management in the state's health units; (iii) introduction of communication and capacity-building activities 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. Sub-Component 2.2: Education. Activities include (i) development and implementation of IT systems to improve management of transferred resources from the federal government, student enrollment and classroom formation, document monitoring, and other transactional tools of the Secretariat; (ii) design and implementation of a student's transport system; (iii) design and implementation of a school's meals system and (iii) capacity building to support the rollout and implemen