1.1. Overview of the Technical Assistance Component
The Technical Assistance Component for SFTAS (also referred to as the “TA component”) uses the Investment Project Financing (IPF) instrument and will be managed in accordance with the Bank’s Policy and Bank Directive for Investment Project Financing (IPF). The TA Component has a total financing envelope of US$50 million (equivalent).
There are three sub-components: (1) Strengthening State Government Systems and Capacities; (2) Strengthening Program Coordination and Verification of Results; and (3) Strengthening Policy Coordination between Federal and State Governments. The first sub-component is expected to be the largest in terms of financing with an indicative allocation of US$35 million, followed by the second sub-component with an indicative allocation of $13 million over the life of the Program. The actual allocation will be determined based on the annual work plans and budgets approved by the Bank.
Timing: The activities under the TA component will commence once the Program is effective. It is envisaged that the majority of capacity building activities to help states achieve the Program DLIs will be carried out in 2019, 2020 and H1 2021 to help states achieve the 2019-2021 DLRs. H2 2021 and 2022 will focus on the 2021 annual performance assessment, program M&E, reporting and audit activities.
Sub-Component One: Strengthening State Government Systems and Capacities:
This sub-component will focus on providing capacity support through selected implementing agencies and partners to all participating state governments to strengthen their systems and capacities to enable them to achieve the Program results (the DLRs).
Beneficiaries: All participating (36 plus FCT) can access the capacity building activities based on demand. Within each state, the activities will focus on the MDAs and state officials that are involved in achieving the EC and DLIs. While no states are excluded from accessing capacity building support, the support will make efforts to reach states that have not been receiving support on strengthening PFM under existing Bank and development partners’ projects and states that are found to be lagging based on the 1st and 2nd APAs.
Type of capacity building support: The focus of the support will be training and learning facilitation on areas directly linked to the achievement of the EC and DLIs of the Program. While the areas of capacity building will be guided by the EC and DLIs, broader fiscal management issues can be covered if appropriate. It will be delivered as in-kind capacity building support to states i.e. the states will not need to pay for the support. The capacity building support is not envisaged to include provision of IT hardware and software and other procurable goods to states.
Timing and Sequencing: Activities will commence as soon as possible once the Program is effective. Most activities to help states achieve the Program DLIs will be carried out in 2019, 2020 and H1 2021 to help states achieve the 2019-2021 DLRs. Activities most strongly linked to the achievement of the 1st and 2nd year DLRs will be implemented first.
Implementing Agencies and Partners: The implementing agencies and partners who will deliver activities under this sub-component are described in the below sections 5.2 and 5.3,
Sub-Component Two: Strengthening Program Coordination and Verification of Results:
This sub-component will support the establishment and operations of the Program Coordination Unit (PCU) at the Federal Ministry of Finance Home Finance department. The details of the resourcing and functions of the PCU are contained in Section 3.1 of the POM.
This sub-component will also support the verification of the states’ performance against the PforR EC and DLIs: Through the PCU, the OAuGF will be supported to carry out its formal role as the independent verification agent (IVA) for the SFTAS Program leading the annual performance assessments (APAs). The PCU will also select and appoint a third-party external firm to work with the OAuGF in its IVA role. Details of the IVA role and the third-party external firm are covered in Section 4.5 and 4.6 of the POM. The sub-component will also support the DMO to strengthen its capacity to compile, verify and analyze the debt information submitted by states as the state debt reports constitute a primary source of data for the IVA to assess accomplishment of DLI 8 and 9. The PCU will also hire consultants to carry out any additional independent surveys required as inputs into the APAs, including the survey of states to collect baseline and end-of-program data for the e-procurement and open contracting DLRs under DLI 6.
Sub-Component Three: Strengthening Policy Coordination and Cooperation between Federal and State Governments:
This sub-component intends to support federal-state coordination institutions to strengthen policy coordination and cooperation between the federal and state governments. Through the PCU, institutions such as the NEC Secretariat and the Joint Tax Board (JTB) could be supported to use the data generated by the Program, for example state performance results from the APAs to strengthen evidence-based policy making and support coordinated action by the federal and state government entities in critical areas such as fiscal management and tax policy. The Project may also support the Office of Accountant General of the Federation (OAGF) who is responsible for federation and FGN accounts to use the state fiscal and budget data being published under the Program to provide a consolidated government fiscal picture, which currently does not exist. The institutions to be supported under this sub-component will be determined and confirmed post program effectiveness by the PCU. The specific activities of selected institutions will then need to be cleared by the Bank as part of the annual work plan and budget of the PCU.