Progestão Program - MPA Phase 1 State of Rio Grande do Sul

active

Prospective

The proposed multi-year, with several phases MPA aims to incentivize and support structural reforms across states, addressing the fragmented impact of past reforms through the joint federal-state Progestão Program. Subnational fiscal imbalances necessitate that governments rationalize spending and manage current expenditures more efficiently to achieve 'more with less.' Designed as a multi-phased umbrella program, Progestão seeks to enhance management capacity, increase public expenditure efficiency, and tackle fiscal imbalances via a coordinated technical assistance lending program. Recognizing that Brazil's subnational fiscal crisis stems partly from common structural issues in public sector management (PSM), the program aims to implement various interventions across states to achieve impact at scale and allow for customization to meet each state's unique needs. The MPA is designed to support the implementation of the newly-defined Progestão Program. In 2021, the World Bank through a partnership with the Ministry of Finance designed the Progestão Program as a key instrument to address fiscal imbalances and strengthen public spending efficiency at the state level in Brazil. The program, as outlined in the Memorandum of Understanding (MoU) between the National Secretariat of Treasury (Secretaria do Tesouro Nacional, STN) and the World Bank, is organized around a menu of interventions targeting six whole-of-government functions, including human resource management, pensions, procurement, public investment management, state-owned enterprises, and asset management. Additionally, it focuses on the fiscal and financial management of three strategic sectors: education, health, and social assistance. To support its implementation, a line of credit of US$1 billion in federal guarantees has been approved for participating states. As of December 2023, five standalone Progestão IPF projects have been approved by the Board, in the amount of US$220 million. The remaining US$780 million of the approved envelope is expected to be committed through the proposed MPA. The proposed MPA phase 1 (State of Rio Grande do Sul) operation supports investments in management information systems and reforms for whole-of-government functions and in strategic sectors for the State of Rio Grande do Sul. The proposed technical assistance operation will support activities to improve government services delivery. The project will have three components. Component 1. Whole-of-Government Management Systems (US$40.2 million)Sub-Component 1.1: Human Resource Management (US$7.1 million). Activities include: (i) a comprehensive assessment of HRM governance structures, regulations, and processes, including legal and governance recommendations for improvements; (ii) a market study and in-depth analysis of the current state HRMIS to identify appropriate policy options and implement new functionalities; (iii) the design and implementation of a human resources management system, integrated with the payroll system, with modules covering HRM processes; (iv) the design and implementation of a workforce right-sizing methodology; (v) the implementation of a workforce platform integrated with the HRMIS to identify core competencies of public officials and organizations’ hiring needs; (v) periodic staff surveys to assess reform implementation and support change management and new methodologies; (vi) communications and capacity building to support the rollout and implementation of new tools; and (vii) procurement of hardware to support the rollout and implementation of the proposed activities. The implementing agency of these activities will be the Secretariat of Planning, Governance, and Administration (Secretaria de Planejamento, Governança e Gestão, SPGG). Sub-Component 1.2: Pensions (US$5 million). Activities include: (i) the design and implementation of a pension management information system integrated with accounting records, payroll, and other HR transactional processes; (ii) development and implementation of data analytics tools for the RPPS, including artificial intelligence for automated processes and services; (iii) design and implementation of an actuarial impact predictive model; (iv) assessment of the RPPS structure and its sustainability; (v) procurement of hardware to support the rollout and implementation of the proposed activities; and (iv) communications and capacity building to support the rollout and implementation of new tools. The implementing agency of these activities will be the IPE PREV. Sub-Component 1.3: Public Procurement (US$9.2 million). Activities include: (i) application of artificial intelligence in procurement processes; (ii) design and implementation of a strategic sourcing methodology to help identify demand for goods and services across the state; (iii) development and deployment of an e-marketplace tool; (iv) implementation of a spend analysis tool for purchasing planning; (v) improvements to the functionality of the supplier and contract module to increase digital interaction; (vi) assessment of viability of different scopes for the shared services center; (vii) redesign of process to be integrated with the new shared services center structure; (viii) design and implementation of a shared services center; (ix) capacity building program for state officials working in procurement; and (x) procurement of hardware to support the rollout and implementation of the above proposed activities. The implementing agency of these activities will be the SPGG.Sub-Component 1.4: Public Investment Management and Budgeting (US$11.1 million). Activities include: (i) development and implementation of a public project management system for State’s investments, integrating project preparation, screening and appraisal; (ii) implementation of a project bank of technically appraised, implementation-ready projects; (iii) design and implementation of a governance strategy to manage the project portfolio execution, including a comprehensive process review and methodologies for Public Investment Management (PIM); (iv) assessment, design and implementation of integrated and sustainable planning, budgeting, fundraising, and monitoring systems; (v) evaluation of new sources for fundraising projects and its integration with the new PIM framework; (vi) development and implementation of a system to structure, monitor, and manage concessions and PPPs, including contractual rebalancing, standardized technical models, and processing and communication with stakeholders; (vii) improvements to the works management system, including tools compatible with inspection and monitoring processes, and web services integration with other systems; (viii) periodic staff surveys to assess reform implementation and support change management; and (ix) procurement of hardware to support the rollout and implementation of the proposed activities. The implementing agencies of these activities will be the SPGG, the Secretariat of Public Works (Secretaria de Obras Publicas, SOP), and the Secretariat of State Reconstruction (Secretaria de Reconstrução Gaucha, SERG).Sub-Component 1.5: Asset Management (US$7.8 million). Activities include: (i) improvements to accounting audits and methodologies to ensure accurate disclosure of public assets and their variations; (ii) provide technical support to assess up-to-date information of the real estate properties database, including georeferenced polygons data, area, registry status, occupation rate, market value estimates, topographic surveys, construction standards, state of conservation, photographic records, and marginal strips status; (iii) development and implementation of improvements in the public asset management system that includes automated expenses payment processes, enhanced management reports on revenues and expenses related to state properties, georeferenced mapping, and integration with other administrative systems; (iv) design and implementation of a solution to au

Education,Health,Public Administration,Social Protection

World Bank Group

Project

Residential, Government, Education, Commercial