restructuring status: final - world bank...up within an existing governmental institution: apix; (v)...
Post on 03-Sep-2020
1 Views
Preview:
TRANSCRIPT
Restructuring Restructuring Type: Level one ( 'ls1 modifIed 'm f"!,' . 06/23/201 i) , .-f{."_'¥ '<._ _k ,te: . \.<'
Or anization Agence National Chargee de la Promotion de l'Investissement et des Grands Travaux
DATA SHEET
Status: Final
Senegal
Pub
lic D
iscl
osur
e A
utho
rized
Pub
lic D
iscl
osur
e A
utho
rized
Pub
lic D
iscl
osur
e A
utho
rized
Pub
lic D
iscl
osur
e A
utho
rized
Pub
lic D
iscl
osur
e A
utho
rized
Pub
lic D
iscl
osur
e A
utho
rized
Pub
lic D
iscl
osur
e A
utho
rized
Pub
lic D
iscl
osur
e A
utho
rized
Does the restructured project trigger any new safeguard policies? If yes, please select from N the checklist below and u date ISDS accordingly before submitting the acka e.
7a. Project Development Objectives/Outcomes Original/Current Pro.ject Development Objectives/Outcomes The objective of the Project is to help create the conditions to stimulate a sustained increase in private investment in Senegal through an improved investment climate, greater private participation in economical activities, and policy and sector reform. The project is thus expected to make important incremental contribution towards Senegal attaining the 8 percent GDP growth called for in the Government's poverty alleviation program.
7b. Revised Project Development Objectives/Outcomes
The Project development objective is to create the conditions to increase private investment. This will be accomplished through an improved investment climate, greater private participation in economic activities, and policy and sector reforms.
11
Document of
The World Bank FOR OFFICIAL USE ONLY
RESTRUCTURING PAPER
ONA
PROPOSED PROJECT RESTRUCTURING
OF THE
PRIV ATE INVESTMENT PROMOTION PROJECT
(CREDIT NO. 3762-SE)
MAY 20, 2003
TO THE
REPUBLIC OF SENEGAL
July 1,2010
Finance and Private Sector Development Country Department AFCF 1 Africa Region
Report No: 55029-SN
AAA APIX
ARMP
ARTP
CAS CDSMT
CEDAF
CF CPAR DCMP DDI FDI GDP GPN HIPC ICA IDA IFC IFR ISO IT MD METR MIGA MIS MTEF NCB NPS OECD OHADA
PCN PMU PDO PEM PIC PIPP PPA PREM
ABBREVIATIONS AND ACRONYMS
Analytic and Advisory Activities Agence Nationale Chargee de la Promotion de l'Investissement et des Grands Travaux (Investment Promotion Agency) Autorite de Regulation des Marches Publics (Procurement Regulatory Agency) Autorite de Regulation des Telecommunications et de la Poste (Telecommunications Regulatory Authority) Country Assistance Strategy Cadre de Depenses Sectorielles it Moyen Terme (Medium-Term Expenditure Framework) Cellule d'Execution Administrative et Financiere (Implementing Unit of the PSJ) Counterpart Funding Country Procurement Assessment Review Direction Centrale des Marches Publics (Public Procurement Control Unit) Direction de la Dette et de l'Investissement (Debt and Investment Office)
. Foreign Direct Investment Gross Domestic Product General Procurement Notice Heavily Indebted Poor Countries Initiative Investment Climate Assessment International Development Association International Finance Corporation Interim Financial Report International Organization for Standardization Information Technology Managing Director Marginal Effective Tax Rate Multilateral Investment Guarantee Agency Management Information System Medium Term Expenditures Framework National Competition Bidding National Procurement System Organization for Economic Co-operation and Development Organisation pour I 'Harmonisation en Afrique du Droit des Affaires (Organisation for the Harmonization of Business Law in Africa) Project Concept Note Project Management Unit Project Development Objective Public Expenditure Management Presidential Investment Council Private Investment Promotion Project Project Preparation Advance Poverty Reduction and Economic Management
PRSC PRSP PSAC PSD PSJ RFP SBD SME SPN SSA UEMOA
USAID WBI WTO
Poverty Reduction Strategy Credit Poverty Reduction Strategy Paper Private Sector Adjustment Program Private Sector Development Programme Sectoriel Justice (Justice Sector Reform Program) Standard Request for Proposals Standard Bidding Document Small and Medium-size Enterprise Specific Procurement Notices Sub-Saharan Africa Union Economique et Monetaire des Etats de l'Afrique de ['Ouest (West Africa Economic and Monetary Union) United States Agency for InternationalDevelopment World Bank Institute World Trade Organization
Regional Vice President: Country Director:
Sector Director: Acting Sector Manager:
Task Team Leader:
Obiageli Katryn Ezekwesili Habib F etini Marilou Uy Peter Mousley Gilberto de Barros
REPUBLIC OF SENEGAL
Private Investment Promotion Project
CONTENTS
Page
A.~ SUMMARy ................................................................................................................ 1
B. PROJECT STATUS .................................................................................................... 2
C. PROPOSED CHANGES ............................................................................................ 2
D. APPRAISAL SUMMARY ....................................................................................... 13
ANNEX 1: RESULTS FRAMEWORK AND MONITORING ....................................... 16
A. SUMMARY
1. This Restructuring Paper seeks the approval of the Executive Directors to introduce the changes outlined in the Development Credit Agreement (DCA), and Extension of the Closing Date from August 31, 2010 to December 31, 2011. This restructuring is a Level I restructuring due to changes in the development objective and in all of the project's four components which are being refocused to meet the revised development objective.
2. While some progress has been achieved in terms of meeting the project development objectives (PDO), the review of the performance indicators shows that only half of the indicators have been met, and others partially met, making it unlikely that the PD~ would be met by the current closing date. Progress towards meeting the Development Objective is rated moderately unsatisfactory; and an implementation of the agreed actions prepared for the restructured project should bring it to a satisfactory performance within the next ten to twelve months.
3. The major modifications being proposed are as follows:
(i) Increase the importance of Component 1. Improving the Investment Climate while focusing it on the most needed reform areas in light of changes noted since the Project's effectiveness and the increased Government clarity and commitment to investment climate reform;
(ii) Re-Iaunch the matching grant subcomponent of Component 2. Facilitating Private Participation and Enhancing Competitiveness, so that it operates, as originally envisaged, and fully complements the investment promotion facilitation that has been supported under the Project and contributes meaningfully to skills development in small and medium enterprises.
(iii) Focus the activities financed under the Project Component 3. Stimulating Sector Investment and Implementing Policy Reforms - by terminating Project's assistance to the following sub-components which have been completed or will not be completed in light of an absence of consensus: (a) telecommunication reform and development of Information Technology sector; (b) postal reforms; and (c) edible oil sector reform;
(iv) Formalize the closing of the stand-alone Project Implementation Unit supported under Component 4. Supporting Implementation and Capacity Building and mainstream the Project coordination and fiduciary functions through a small management team to be set up within an existing governmental institution: APIX;
(v) Revise PD~ and restructure, simplify, and update the results framework to target and better measure the outcomes delivered by each component and subcomponent;
(vi) Restate the legal covenant to finance a joint IDAJIFC risk-sharing facility. This covenant would enable financing the T A and providing partial guarantee for a portfolio of loans to participating commercial banks, which meet the eligibility criteria specified in the RiskSharing Framework Agreement.
1
(vii) Extend the closing date so as to enable sufficient time for implementation, and
(viii) Reallocate funds across the Project categories to accomplish the proposed changes.
4. Restructuring the Project implementation arrangements mentioned above in relation to Component 4 will be fully formalized during this restructuring, since it has been agreed and partially implemented by the Borrower to meet the conditions to lift the Project disbursement suspension which occurred last year. The measures adopted by the Borrower to lift the suspension of the disbursement also created the conditions for the Project to be implemented in adherence with Bank fiduciary and monitoring and evaluation (M&E) guidelines.
5. Furthermore, this restructuring will help address the project deficiencies. These key implementation deficiencies were, by and large, related to inadequate Project coordination and a disregard for procurement, financial management guidelines and procedures, and the M&E functions. These deficiencies have been partially addressed by closing the PIU, and ensuring closer involvement of a significantly revamped Steering Committee. These changes were critical. However, more changes are needed to meet the project's development objectives by ensuring a closer attention to providing timely and qualitY implement~tion support to project beneficiaries.
B. PROJECT STATUS
6. The implementation progress is rated Moderately Unsatisfactory. While some progress was achieved,'particularly under Component 1: Improving the Investment Climate, and under
,Component 2: Facilitating Private Participation, the overall Project's performance was not satisfactory. The implementation progress of the Key Performance Indicators, as extracted from page 2 of the PAD reflects the uneven implementation progress that translates into only 6 of the 14 key performance indicators having been met and another 4 partially met.
C. PROPOSED CHANGES
Project's Development Objectives
7. The initial PDO was as follows: "The Private Investment Promotion Project development objective is to create the conditions to stimulate a sustained increase in private investment through an improved investment climate,greater private participation in economic activities, and policy and sector reform. The project is thus expected to make important incremental contributions towards attaining the 8 percent GDP growth called for in the Government poverty alleviation program."
8. The revised Project Development Objective reads as follows: "The Project's development objective is to create the conditions to increase private investment. This will be accomplished through an improved investment climate, greater private participation in economic activities, and policy and sector reforms."
2
9. The PD~ was revised to simplify and clarify it while making it more realistic since Senegal is not going to achieve what was mentioned in the previous PD~ as " ... the 8 percent GDP growth called for in the Government poverty alleviation program."
Resultsllndicators
10. As a result of the reduction in the number of activities financed under the Project, the Results Framework has been revised and simplified to significantly reduce the number of indicators from 81 to 12. Additionally, the new results framework includes more relevant and up-to-date performance indicators that are better suited to evaluate and monitor the implementation progress toward achieving the PD~ under the restructured Project. Furthermore, the performance indicators for certain components have been revised to reflect that the indicators established in the original results framework have been partially achieved and that new indicators are needed to monitor the performance during the implementation of the restructuring phase. A summary of the revised Results Framework appears in annex 1.
Components
11. The changes proposed in the restructuring are as follows:
(a) Formally close the Project Management Unit, which had been receiving support through Component 4, Supporting Implementation and Capacity Building
12. The Region's "Guidance Note on Project Implementation Arrangements for Investment Lending Operations" states, "Existing government institutions (using civil servants and country systems and procedures) should be the first choice to implement Bank-financed Projects." On this basis, and in light of the existing institutional capacity of Project's beneficiaries to implement their respective activities, it has been agreed with the Government that the closing of the PIU achieved in the context of the lifting of the Project's disbursement suspension will be formalized. The PAD states that most beneficiary organizations "have the capability to manage the activities supported by the Project. Strong complementary implementation capacity [is] needed to ensure that Project objectives are met. The Credit will thus finance a team of high caliber local professionals located at the PMU and the related support staff." This assessment remains valid today since most of the Project's beneficiaries have the capacity to implement and manage their respective activities if adequately supported by a small team of local professionals located in APIX. This team of professionals would oversee the coordination, financial management, procurement, reporting, M&E, audit, and related functions.
13. These arrangements differ from the previous stand alone PIU as it. is no longer a standalone entity which ensures the project coordination and fiduciary functions, but an existing institution. Moreover, these new arrangements help build sustainability by using APIX's staff (accountant, procurement and financial specialists) which will remain even when the project closes. However, to ensure that the project completes its activities on time, a dedicated Project Coordinator would also be recruited. However, as this function will no longer be needed when the project is closed, the project coordinator would not remain at APIX.
3
14. Under the restructured Project, the small team of three professional will be housed within APIX, an institution which has previously managed the project preparation advanced (PPA) and is the project's largest beneficiary. This institution was chosen since it had already positively been assessed by the Bank team in the context of the pr.eparation of the approved DakarDiamniadio Toll Highway Project for which it acts as a Project Unit. This team will be responsible for project coordination, as well as for fiduciary functions and M&E and under the oversight of the revamped Project Steering Committee. While the three additional staff are being hired APIX's Deputy Director is carrying out the Project Coordination functions. The project procurement support is provided by APIX's procurement specialist and its accountant and the assistant account are ensuring adherence to Bank financial management standards. The three additional local professionals would thus be hired to ensure that APIX has all the resources to carry out its expanded responsibilities effectively and ensure that the Project objectives are met. The Restructured Project will thus finance a small team of high caliber local professionals located at APIX. This small project team would be fully dedicated to implementing the Project activities to ensure that the Project makes up the disbursement lag and that all procedures and guidelines for Bank financed operations are adhered to while ensuring that the earlier dissatisfaction noted by some beneficiaries is not repeated. To mitigate the risk associated with the transition period between now and the hiring of the additional project staff, this period is shortened as much as possible while adhering to Bank procurement guidelines and the need to advertise. The full team should be in place by September 15,2010. Additionally, the task team has intensified its implementation support by holding individual meetings with every beneficiary and APIX to ensure that implementation progresses in a timely manner. The early results of this approach are quite encouraging and show that implementation progress is taking place.
15. These new implementation arrangements were partially put in place to meet the conditions to lift the Project's disbursement suspension. However, they need to be strengthened to ensure adequate project coordination and fiduciary functions. These arrangements also allow for the immediate mainstreaming of the Project's management, fiduciary, and M&E functions in an existing government institution. These new institutional arrangements also include the appointment of the already appointed new President of the Steering Committee and the replacement of half of its members.
(b) Increase the importance of Component 1: Improving the Investment Climate, while focusing it on most needed reforms in light of changes noted since the Project's effectiveness
16. The Project has quite effectively helped finance some work to improve the investment climate, resulting in Senegal's being ranked the best Sub-Saharan Africa reformer in the 2009 Doing Business report. However, the improvements envisaged for the airport have not started. Given that the Government is already building a new international airport in Dakar with private partners, the assistance to be provided to the existing airport for US$l million to update technology infrastructure, as well as to facilitate the movement of passengers and baggage, is no longer necessary. Consequently, the amount previously allocated to the airport subcomponent will be reallocated. The subcomponent on infrastructure regulation that financed capacity building for the telecommunication regulatory agency is also ended since Project assistance has contributed to make this institution self sustaining and assistance is no longer needed.
4
17. In addition, the activities under Component 1 are being better aligned with the Government's own Accelerated Growth Strategy - which was designed in collaboration with the private sector -and approved after the original Project design. This strategy was developed in close collaboration with the private sector. The strategy lays out the establishment of an investment climate of international class as the only cross-cutting theme and the key requisite to fostering growth. The activities of Component 1 are now being focused to help the Government improve the investment climate in the ways envisaged in the Accelerated Growth Strategy. The restructured PIPP would provide assistance that fosters the improvement of the time and cost related to four aspects: (a) general entry and operation requirements, (b) import and export procedures for trade, (c) construction licenses procedures, and (d) tax administration and payment.
18. The project will finance the technical assistance that is required to draft the necessary texts to change and simplify the procedures in all these four areas. Additionally, to obtain input from stakeholders and build consensus .on the investment climate reforms to be implemented, and ensure follow up, the Project will continue to extend its support to the Presidential Investment Council, which is a effective mechanism for private-public sector dialogue. Moreover, the project will provide assistance for consensus building events for every one of the four areas mentioned above. The project will also finance the establishment of a management information
. system to computerize the general entry and operations, as well as· a technical assistance to digitalize the registration done in years, prior to the establishment of the management information system.
(c) Re-Iaunch the matching grant subcomponent of Component 2: Facilitating Private Participation and Enhancing Competitiveness, to fully complement the investment promotion facilitation that has been supported under the Project
19. While the investment promotion assistance provided by the Project has helped attract additional private investment to Senegal, this assistance needs to be complemented by a well performing technical learning for SMEs through a matching grant to provide a broader range of support to· SMEs. The· better performance of the matching grant would help increase labor productivity and, overall, firms' performance and enhance competitiveness. To these ends, the restructured PIPP would ensure that ''the management of the matching grant will be outsourced to a team of local and international consultants," thus bringing back the Project in line with the implementation arrangements laid out in the PAD and which will be used under the restructured project.
20. This change in the implementation approach coupled with an emphasis on delivering simultaneous training for a group of firms and trainees would help increase the number of people trained, as well as the relevance of the grants approved while ensuring adequate separation of the approval and payment of the grants. Moreover, in increasing the grants awarded, the matching grant now would be expected to focus a greater part of its assistance on more suitable assistance including to the five strategic sectors indentified as offering greater potential to increase economic growth in the Accelerated Growth Strategy. These sectors are (a) agriculture and agro industry, (b) information technology and telecommunication, (c) tourism and cultural industry, (d) textiles, and ( e) fisheries and aquaculture. This increased emphasis on the key sectors will be done without excluding any sector of activity. To this end, the project will not specifically target
5
the sectors mentioned above so as to allow the market to ultimately determine the sector beneficiary. Instead, a marketing campaign and voluntary pro active approach to fostering technical learning for SMEs would be used to help foster the uptake of the assistance for these strategic sectors. Additionally, in its delivery the matching grant will focus on providing training for a group of people in certain areas to simplify the approval process and maximize the number of people trained. Examples of typical training include a variety of skills mix in the hospitality industry, electricians, carpenters, plumbers, to name a few. As a result of the above arrangements, the performance of this matching grant is expected to improve in terms of number of people trained.
21. The matching grant will be implemented using the implementations arrangements already laid out in the original PAD and in adherence with the procedures established in the prepared matching grant manual setting forth eligibility criteria for Beneficiaries, as well as terms and conditions for Matching Grant Agreements, including the procurement, financial and monitoring aspects. Based on a demand for a matching from a firm or training institutions, a team of consultants will review the request for the matching grant and determine whether the matching grants should be approved based on criteria commonly used for matching grants. These criteria include additionality and selectivity of the proposed training.
22. Component 2 also will increase the assistance to institutions and private associations to help them develop and start the implementation of their business plans and to offer better services to their member firms to establish a revenue base for future self sustainability.
23. Assistance to APIX, as a project beneficiary, has been substantial and will continue under the restructured project. APIX has been by far, the beneficiary which has received the most substantial amount of assistance and financing under the PPIP, totaling 3.2 billionCF A (approximately US$ 7 million), as of December 31, 2009. This has helped establish APIX as a reputable institution in Senegal and beyond. Other key achievements which the project helped foster include: (i) the establishment of the one stop shop to start up a business at APIX, (ii) the ISO 9001 Certification of APIX's Investors Facilitation Department; (iii) the good preparation and management of the Presidential Investment Councils by APIX; (iv) the management of the Project Preparation Advance of the World Bank financed Dakar-Diamnadio Toll Highway road with the fiduciary team financed and trained under the PIPP, among others aspects.
24. The additional assistance under the restructured project will support APIX's efforts to strengthen its capacity and work towards establishing its sustainability. To that end, the project will continue to finance several technical assistance and capacity building activities for APIX staff. Moreover, the Project will fund the technical assistance for the ISO certification of APIX's Marketing and Finance Departments. The Project will also finance the development of a set of marketing and communication tools (website, brochure, sector kit, etc.). The PPIP will also provide the assistance to carry out an organizational diagnosis of APIX and to develop strategies to help ensure APIX's sustainability. To complement this action, assistance will be provided to allow APIX to exchange experience with other investment promotion agencies such as the one from Mauritius and Tunisia, including studying how Tunisia has developed medical tourism.
6
25. The subcomponent on support to divestiture and oversight of public entities for US$500,000 will be discontinued in the restructured Project. The reason is that the support planned under this subcomponent has been provided and this would allow reducing the scope of the Project and focus it on activities that are critical to meeting the PD~. Likewise, the support to the Ministry of Foreign. Affairs which has not been provided for lack of demand also will be discontinued and the US$l million reallocated.
(d) Reduce·the number of subcomponents financed under Component 3: Stimulating Sector Investment and Implementing Policy Reforms :from 6 to 3 by ending Project assistance to three subcomponents: (a) telecommunication and development of information technology, (b) postal reforms, and (c) edible oil sector reform
26. Additional World Bank financial assistance is not necessary in the telecommunication sector since the performance indicators for this subcomponent have been met or exceeded. Moreover, the telecommunication regulator (ARTP) has been established, as intended in the PAD and has become a self-sustainable institution that also receives substantial revenues. These revenues are obtained from the operators' contribution to the Universal Access Fund and the use of a :frequency management. The US$3.5 million of assistance envisaged to promote rural access to telecommunications services will thus be reallocated. Moreover, the competition among the three different operators in the mobile segment of the market has fostered a reduction in the cost of calls and improved quality of service and access. Independently from assistance through this Project, these trends will be sustained thanks to the competitive pressures that the Project has helped establish. Moreover, Agence de Regulation des Telecommunications et des Postes (ARTP) has significant revenues, and could finance any external assistance that may be required to complement the in-house expertise. Additionally, the regulator could use the template documents that were developed under the Project to foster additional universal access.
27. Regarding the postal service sector, and as established in the PAD, the PPIP has financed the postal service's reforms through the "provision of advisory services, training and purchase of Management Information System (MIS) and other equipment." These reforms have helped the postal service company, La Poste, improve its performance. However, this assistance will not be sufficient to put the company on the path of financially and operationally sustainable performance. The reason is that, despite its commitments to recapitalize the firm made in the context of both this Project and the Private Sector Adjustment Credit (Cr. 38750-SN), the Government has not done so, despite numerous reminders from the World Bank team and management. It would thus be counter-productive to continue providing assistance to the firm through this Project beyond the amount envisaged until the Government commitment of recapitalizing the company is fully materialized.
28. The restructured Project contains no additional activities for the edible oil sector reform subcomponent, since the activities planned under this component have been completed. As envisaged under the PAD, the project financed the technical assistance to prepare the divestiture strategy of SONACOS, the then State-owned groundnut corporation. The divestiture took place and was one element of the sector strategy, which also included the removal of the excise tax (Taxe Conjoncturelle d'Importation) on edible oil and the harmonization of the import surcharge on processed and unprocessed edible oils (Taxe specifique.). Althoughthe application
7
of the excise tax was suspended for a period, an upsurge of palm oil imports in 2005 lead the authorities to reinstate all protections against imported edible oil. This measure, however, did not comply with W AEMU and WTO provisions regarding safeguards measures and constituted, from the Bank's view, a reversal of policy commitment. In light of this situation, the financing of additional activities could prove counter-productive until legal and operational conditions are continuously in place to guarantee that no barriers to import edible oil into Senegal exist.
29. The restructured Component 3 will provide assistance to undertake the following activities.
(i) The tourism industry is one of the five key sectors that the Government and the private sector have selected as offering potential for growth in the Accelerated Growth Strategy. The Project will develop an updated strategy for the tourism se<;tor to provide the authorities with a coherent vision and plan that could be later implemented without the Project's assistance. Additionally, the Project could help the authorities develop the legal arrangements for tourism classification to foster quality service.
(ii) Regarding promotion' of the music industry, the restructured Project will finance the completion of the legal reform regarding the copyright legislation. Specifically, the Project will finance the preparation and dissemination of the decrees needed to complement the Copyright Law prepared under the Project to operationalize the approved Copyright Law. This will allow legal protection against music piracy and create a legal and institutional framework conducive to the payment of royalties to musicians and artists. The Project also will finance the electronic archiving of Senegal's musical heritage, which risk being lost. While the Project originally planned to finance the rehabilitation of a building to house the national archives, this approach would be costly. Instead, the national musical archive would be archived virtually and be accessible independent of the location, thus providing an international platform from which to download Senegalese music after payment via the internet, thus helping foster sales and even better monitoring of royalties payment.
(iii)The Project will provide targeted technical assistance (TA) to support the capacity building for the pension. This assistance is being provided to finance the financial audit reports of the three key pension institutions, which are: (i) Caisse de Securite Sociale, (ii) Institut de Prevoyance Retraite du Senegal (lPRES), and (iii) Fonds National de Retraites to obtain a better understanding of the financial situation of these enterprises and ensure that they are operating with internationally established financial prudential standards.
30. The three sub components that have been maintained contain activities for which the implementation can be completed during the proposed 16 months extension since their respective implementation has started or is about to start. For example, the decrees needed to complement the already adopted Copyright Law should be completed by June 25, 2010 and then submitted for Cabinet's approval. Moreover, dropping this assistance would be counterproductive since it would result in withholding assistance for an activity which has stared and could be completed without substantial financial assistance and could have a significant impact in the revenues earned by musicians and artists.
8
31. The scope of the assistance under Component 4: Supporting Implementation and Capacity Building will be reduced by mainstreaming the Project Coordination and fiduciary functions into an existing public institution. As explained above, this new implementation arrangement enables the mainstreaming of the Project coordination and fiduciary functions and has been initiated as part of lifting the Project's suspension of disbursement. Under this component, additional assistance envisaged in the PAD and that remains relevant will receive support from the Project. Support will include a public information campaign and targeted assistance to support the Unite de Politique Economique (UPE), a think tank advising the Ministry of Economy and Finances. Additionally, the successful reform of the public procurement code will receive targeted assistance to start establishing a network of likeminded institutions and to ensure that small and medium enterprises are not denied opportunities to compete for the provisions of goods and services for public contracts.
(e) A restated legal covenant to finance a joint IDAlIFC risk-sharing facility will be formally added, to be funded by proceeds from the Credit for SDR 1.4 million
32. This covenant would enable financing the TA and providing partial guarantee for a portfolio of loans to participating commercial banks, which had met the eligibility criteria already specified in the Risk-Sharing Framework Agreement. It is worth noting that the arrangements for this risk-sharing facility are modeled after those that have been previously developed and implemented jointly by the IFC and Bank including in Madagascar and Mali. The assistance is provided by the development of a partial credit guarantee program for the benefit of small and medium sized enterprises, through: (i) the provision of financing for local currency, small and medium enterprise loan portfolio partial credit guarantees to Participating Banks to be issued by IFC . on a 50/50 pari passu basis and to be partially backstopped by the Borrower on a first loss basis; and (ii) the provision of technical advisory services and training to personnel of Participating Banks. It is worth noting that the terms of this Risk-Sharing Facility have been signed by the Government and by IDA. However, given (i) the time lag between the signature by IDA and the counter-signature by the Borrower; and (ii) the fact that the Borrower countersigned a copy and not the original amendments to the DCA that introduced the Risk-Sharing Facility, the restructuring will be used to restate the amendment to the DCA related to the financing of the Risk-Sharing Facility.
33. The preparatory work of the Risk-Sharing Facility has started and will help create the conditions for its implementation during the remaining period. Among the main progress, it is worth noting the following: (i) Risk-Sharing Framework Agreement; (ii) Risk-Sharing Facility Agreement; (iii) terms of reference for the technical assistance to be provided to the commercial banks; and (iv) discussion with a commercial bank that is likely to use the Risk-Sharing Facility. The facility is meant to foster increased lending of funds to small and medium enterprises (SMEs) by commercial banks, which often seem to be too risk averse in lending to SMEs. The facility will reduce the perception of risk by guaranteeing the loans. In addition, under the restructured PPIP, this component will work closely with the matching grant component to provide the often-needed T A that an SME requires to address a technical or operational risk identified by the banker. Under this circumstance, the matching grant would be provided to the SME to address or mitigate the technical or operational risk, thus providing the commercial
9
banks with the comfort level that would allow the banks to make an independent decision to approve a loan for the SME.
(f) A restated covenant reaffirming Development Credit Agreement amendments made through the letter dated May 14, 2009 and which establishes an increase in prior review thresholds for the Project, as well as the fact that:
(i) " All goods, works and services (other than consultants ' services) shall be procured in accordance with the provisions of Section I of the " Guidelines for Procurement under IBRD Loans and IDA Credits dated May 2004, as revised in October 2006 and May 2010 (the procurement guidelines), and with the provisions of this schedule thus restating the" Anti-corruption guidelines", and
(ii) "All consultants' services shall be procured in accordance with Sections I and IV of the "Guidelines: Selection and Employment of Consultants by World Bank Borrowers" dated May 2004, as revised in October 2006 and May 2010 (the Consultant Guidelines), and with the provisions of this schedule.
(g) As a result of the decrease in the number of activities financed under the Project. the Results Framework has been revised and simplified to reduce the number of indicators.
34. Additionally, the new results framework includes more relevant and up-to-date indicators that are better suited to evaluate and monitor the implementation progress toward achieving the PD~ under the restructured Project. The key Project performance indicators, as reflected in the original DCA and the Project Appraisal Document, also have been simplified as well as updated to reflect the new performance targets and results framework. Furthermore, the performance indicators for certain components have been revised to reflect that the indicators established in the original framework have been partially achieved and that new indicators need to be adopted to monitor the performance during the implementation of the restructuring phase. A summary of the revised Results Framework, which will be used to assess and monitor progress, appears in annex 1.
(h) The Project closing date is being extended from August 30,2010 to December 31, 2011. This 16-months extension is necessary and sufficient to complete the implementation of the Project's activities and will facilitate the achievement of the PDO. The additional time is intended to help address implementation and disbursement lags for the numerous activities that arelagging in implementation. Moreover, this period would provide sufficient time for the implementation of the Risk-Sharing Facility, which is now ready for implementation and has been agreed with the authorities.
(i) Reallocate funds between components and disbursement categories to support the changes proposed in this document. The tables on page 16 of this package reflect the new and proposed allocations.
35. The main changes are to (a) increase funding to finance activities to improve the investment climate and support the procurement reform; and (b) reallocate unutilized funds from dropped activities such as updated technology infrastructure for the airport, postal and telecommunication
10
activities, as well as the assistance to the Ministry of Foreign Affairs and exchange rate gains that resulted from favorable fluctuations between the SDR and the US$.
Safeguards
36. The proposed changes do not raise the environmental category of the Project nor trigger new safeguard policies. The environmental category rating for this project is C. Institutional arrangements
Formally close the Project Management Unit, which had been receIvmg support through Component 4, Supporting Implementation and Capacity Building
37. The Region's "Guidance Note on Project Implementation Arrangements for Investment Lending Operations" states, "Existing government institutions (using civil servants and country systems and procedures) should be the first choice to implement Bank-financed Projects." On this basis, and in light of the existing institutional capacity of Project's beneficiaries to implement their respective activities, it has been agreed with the Government that the closing of the PIU achieved in the context of the lifting of the Project's disbursement suspension will be formalized. The P AD states that most beneficiary organizations "have the capability to manage the activities supported by the Project. Strong complementary implementation capacity [is] needed to ensure that Project objectives are met. The Credit will thus finance a small team of high caliber local professionals located at PMU and the related support staff." Under the restructured Project, the Credit will finance the recruitment of a small team of local professionals located in APIX. This team of professionals would oversee the coordination, financial management, procurement, reporting, M&E, audit, and related functions.
Financing
(a) Project Costs
Project Costs (US$ millions) Components/Activities Currene Proposed
Improving the Investment Climate 7.000 10.200
Facilitating Private Participation and Enhancing 11.500 13.800 Competitiveness Stimulating Sector Investment and implementing 21.800 17.000 policy reform Supporting Implementation and Capacity building 5.700 10.300 Total Cost(*) 46,000 51,300
* The difference between the two amounts related to total cost in USD, is due to exchange rate due to the appreciation of the Special Drawing Rights against the US Dollar from the negotiation date until now.
1 lfthe project has had a previous restructuring, the current should reflect the latest approved costs.
11
(b) Financing Plan in (US$O,OOO)
Revised financing plan
Estimates 2004 2005 2006 2007 2008 2009 2010 2011
IDA 3,281 4,263 ..
·7,591 8,013 7,110 4,591 8,460 8,000
Cum. IDA 3.,281 7,544 15,13.5 23.,148 3.0,258 3.4,841 43,300 51,300
Government 0,037 0,206 0,335 0,308 0,254 0,158 0,350 0,350
Cum. Government 0,03.7 0,243. 0,578 0;887 1,142 1,300 1,650 2,000
Total per year 3,318 4,469 7,926 < 8,3.21 7,364 4,749 8,810 8,300
Cum. Total (IDA+Gov.) 3,318 7,787 15,713 ..24,03.4 31,398 39,590 44,950 53,300
Reallocations
Allocation of Credit Proceeds (All amounts in SDR) Category of Expenditure Allocation % of Financing
Current Revised Current Revised Current Revise l. Works l. Works 400,000 400,000 100 100 2. Goods 2. Goods
Under Part C.2 (2) of Under Part C.2 (2) of the 2,200,000 0 50 50 the project project Other Other 7,450,000 8,700,000 100 100
3. Consultant's services and 3. Consultant's services audit and audit
(c) under Part B.1 of the project (c) under Part B.1 of the 3,700,000 0 50 50 project
(d) under Part B.2 ofthe project (d) under Part B.2 of the 2,200,000 1,650,000 50 50 project
(e) Other (e) Other 11,150,000 13,540,000 100 100 4. Training &Workshop 4. Training &Workshop 2,900,000 4,700,000 5. Operating costs 5. Operating costs 1,650,000 2,200,000 90 90 6. Refund of Preparation 6.Refund of preparation 1,600,000 1,210,000 N/A N/A
Advance Advance 6. Partial Credit Guarantee 7. Partial Credit Guarantee 1,400,000 1,400,000 100 100 7. Unallocated 8. Unallocated 550,000 0 N/A N/A Total amount 33,800,000 33,800,000
12
Procurement
38. The restructuring provides an opportunity to introduce a restating covenant reaffirming Development Credit Agreement amendments made through the letter dated May 14, 2009 so that all the. amendments are contained in a single document. The changes that which had brought about are the following changes:
(a) Increase in prior review thresholds for the Project, as well as the fact that "all goods, works and services (other than consultants' services) shall be procured in accordance with the provisions of Section I· of the "Guidelines for Procurement under IBRD Loans and IDA Credits dated May 2004, as revised in October 2006 and May 2010 (the procurement guidelines); .
(b) Confirmation that "All consultants' services shall be procured in accordance with Sections I and IV of the "Guidelines: Selection and Employment of Consultants by World Bank Borrowers" dated May 2004, as revised in October 2006 and May 2010 (the Consultant Guidelines), and with the provisions of this schedule".
39. Additionally, .the revised DCA will introduce the "Anti-corruption guidelines", which were not introduced at the time the project was originally signed.
Closing date
40. In the context, ofthe restructuring, the Project closing date will be extended from August 30, 2010 to December 31, 2011. This 16-months extension is necessary and sufficient to complete the implementation of the Project's activities and will facilitate the achievement ofthe PDO. The additional time is intended to help address implementation and disbursement lags for the activities that are lagging in implementation.
Implementation schedule
41. The Bank has reviewed the effectiveness and realism of the proposed action plan for the period of the extension in the context of the restructuring to ensure that the implementation of the activities will contribute to fully meet the Project's objectives. The 16 months extension is sufficient for the implementation of the activities several of which have already started and will be completed before the closing date.
D. APPRAISAL SUMMARY
42. The economic analysis undertaken in the original PAD remains relevant.
43. The economic analysis of this type of private sector development (PSD) project presents the limits encountered in all similar Project evaluations. The difficulty in quantifying the economic benefits results mainly from the indirect relationship between the Project's intervention and the stream of benefits; and from the lagged effects of the Project on the.performance of the different beneficiaries and sectors directly supported. Nevertheless, it is important to note that, with the reduction of the marginal cost of operating the PCU during the period of extension coupled with
13
the reduction of the less relevant activities supported under the Project, the overall Project economic rate of return (ERR) has improved slightly from the 19.8 percent. The reasons are that the base case scenario was conservative; and important positive externalities, such as the skills and technology transfers, which are difficult to measure, will be taking place, partly as a result of the Project's contribution.
44. The main assumptions underlying· this economic analysis are as follows: (i) stable macroeconomic environment, as projected in the CAS with 4 percent real GDP per annum on average; and an inflation rate under 3%; (ii) An improved investment climate - including the reduced tax rate'" helps attract increase private investment; (iii) each $1,000 spent by APIX will generate 2 jobs by end of project; and (iv) a minimum of 1000 trainees improve their skills through the matching grant.
45. Moreover, based on preliminary actual implementation results thus far, the cost-benefit analysis shows greater benefits than expected in the PAD. For example, based on data provided by APIX, the work done by APIX-. which was supported through the Project-has contributed to the creation of 28,200 jobs for the period 2004-06. Moreover, US$1.70 billion investment was made in 2006 by the firms operating with APIX - issued Special Investment Certificates. While it is not possible to attribute all of the merit of these results to APIX and/or the Project, since determining how much is actually due to the Project is subjective, it is clear that the project has been providing APIX some useful assistance. Independently of attribution, the benefits to the country are higher than envisaged in the PAD. The private investment levels are expected to continue to' increase throughout the implementation period of the restructured operation. The ongoing increase is due to the· fact that APIX has already helped the start of several important Projects. They include the Dakar Port revitalization with Dubai Port World; the mining Project in Sabodala (gold) and Kedougou; the energy Project, Kounoune, the new international airport; the toll road Dakar Diamniadio; Dakar Special Integrated Economic Zone; and the investment of the third telecommunication operator.
46. The Project's benefits and risks, as envisaged in the PAD, are not changed substantially. The Project was expected to benefit the country by providing employment, the transfer of skills and technology. Through the performance of Component 2, since 2005, and based on data provided by APIX, the Project has helped generate over 136,500 jobs, and approved total investment of over US$ 1.7 billion? Moreover, the Public Procurement agency established under the Project has helped reduced the percentage of sole sourcing award in the procurement of goods and services from 80 in 2006 to 14% in 2009, and generated US$ 115,000,000 savings for the tax payer! These good results will be complemented by the implementation of additional activities during the restructuring period. Moreover, the reduction of activities proposed under this restructuring will contribute to . an increased focus on assistance to improve the investment climate. The latter will, in tum, increase the private sector's productivity and investment, thus helping create more employment. The Project also is also expected to contribute toward opening up business opportunities for SMEs based on a transparent and competitive procureIpent system.
2 The perfonnance indicator target is considered as being met based on data provided by APIX. However, this needs to be continned through an independent evaluation.
14
Risk
47. The Project's benefits and risks, as envisaged in the PAD, are not changed substantially. The overall risk assessment included in the PAD was revised. The expected outcomes, which have an overall rating of "substantial," are set out in detail in annex 2. The central, underlying risk was the continued implementation of this Project, without strengthening APIX's institutional capacity for project coordination, as well as for procurement and financial management functions. This risk is addressed through the financing of the recruitment of a dedicated team of high caliber specialists to carry out the above-mentioned functions which has started. For the project to meet its development objectives, the project coordination and fiduciary functions will need to be carried out in a timely manner and with consistent quality. To mitigate any risk related to the transition arrangements while the three additional staff are being hired, APIX' s Deputy Director is carrying out the Project Coordination functions. The project procurement support is provided by APIX's procurement specialist and its accountant and the assistant account - who are all familiar with World Bank procedures - are carrying out the financial management responsibilities. World Bank implementation has recently started to be even more pro active through a daily communication to ensure timely and quality follow up, particularly during the transition period. This has shown result in the improved implementation progress.
48. Regarding risk previously identified. The risk related to the payment of counterpart fund which existed previously has been addressed since counterpart fund for 2009 were paid in full and the counterpart fund for 2010 are being paid. The portfolio data does not show any delay in the payment of counterpart funds. Regarding monitoring and evaluation, the results framework has been completed revamped and it was agreed that a monitoring and evaluation specialist would be hired every six months to help strengthen this function. The recruitment of a dedicated project staff as explained in paragraphs 12 through 15 will address the project management issue and result in an increase of disbursement level. The risk related to the matching grant is addressed by changing the implementation arrangement to reflect good practice, as informed by the Bank's implementation of matching grants as clarified on paragraphs 19, 20 and 2l. Regarding the risk sharing facility, the preparatory work to start this risk sharing facility as described on paragraph 33 will help mitigate the risk associated with this sub component. Moreover, this component will receive implementation support from an experienced IDAlIFC team which is based in Dakar making it easier to promptly provide timely assistance.
49. The risk assessment considers the risk at country and Project levels, and suggests mitigating measures for each. At the country level, the policy dialogue has been strengthened by a more active involvement of the World Bank team with all of the Project's beneficiaries. However, the main risks at the country level are the political and social tensions resulting from the combination of the worldwide increase in food prices, the world financial crisis, and inadequate electricity services. These risks will be mitigated by the World Bank and other donors by providing the authorities with both the technical and financial assistance necessary to help reduce the negative impact of the most vulnerable segment of the population. At the Project level, the measures adopted in the context of this restructuring increased the likelihood of achieving the PD~.
15
Pro
ject
Dev
elou
men
t Obj
ecti
ve (P
DO
}:
RE
PU
BL
IC O
F S
EN
EG
AL
P
riva
te I
nves
tmen
t Pro
mot
ion
Pro
ject
AN
NE
X 1
: R
esul
ts F
ram
ewo
rk a
nd
Mon
itor
ing
"The
Pri
vate
Inv
estm
ent P
rom
otio
n P
roje
ct d
evel
opm
ent o
bjec
tive
is t
o cr
eate
the
cond
itio
ns to
sti
mul
ate
a su
stai
ned
incr
ease
in
priv
ate
inve
stm
ent
thro
ugh
an im
prov
ed in
vest
men
t cli
mat
e, g
reat
er p
riva
te p
arti
cipa
tion
in
econ
omic
act
ivit
ies,
and
pol
icy
and
sect
or r
efor
m.
The
pro
ject
is t
hus
expe
cted
to
mak
e im
port
ant i
ncre
men
tal
cont
ribu
tion
s to
war
ds a
ttai
ning
the
8 p
erce
nt G
DP
gro
wth
cal
led
for
in th
e G
over
nmen
t pov
erty
all
evia
tion
pro
gram
."
Rev
ised
Pro
ject
Dev
elou
men
t Obj
ecti
ve:
The
Pro
ject
's d
evel
opm
ent o
bjec
tive
is t
o cr
eate
the
cond
itio
ns to
inc
reas
e pr
ivat
e in
vest
men
t. T
his
wil
l be
acc
ompl
ishe
d th
roug
h an
im
prov
ed
inve
stm
ent c
lim
ate,
gre
ater
pri
vate
par
tici
pati
on in
eco
nom
ic a
ctiv
itie
s, a
nd p
olic
y an
d se
ctor
ref
orm
s.
D-D
ropp
ed
Cum
ulat
ive
Tar
get V
alue
s**
.. C
=Con
tinue
U
nit o
f B
asel
ine
Dat
a So
urce
! R
espo
nsib
ilit
y fo
r P
DO
Lev
el R
esul
ts I
ndic
ator
s*
.... N
=New
F
requ
ency
0 U
R=R
evis
ed
Mea
sure
(p
rogr
ess
to d
ate)
Y
RI
YR
2
Met
hodo
logy
D
ata
Col
lect
ion
Indi
cato
r O
ne:
100
new
fIn
ns w
ith
New
N
umbe
r 75
85
10
0 Se
mi a
nnua
l A
PIX
rep
orts
A
PIX
in
vest
men
t in
cent
ives
sta
rt
0 o
f firm
s
oper
atin
g.
Indi
cato
r T
wo:
The
lev
el o
f pri
vate
N
ew
US$
2.
5 bi
llion
2.
8 bi
llion
3.
0 bi
llion
Se
mi a
nnua
l A
PIX
rep
orts
A
PIX
inve
stm
ent r
eali
zed
reac
hes
US
$ 3
0 bi
llio
n.
Indi
cato
r T
hree
: T
he
num
ber
of
Rev
ised
N
umbe
r 11
5,00
0 12
2,00
0 13
0,00
0 Se
mi
annu
al
API
X r
epor
ts
API
X
dire
ct n
ew jo
bs
crea
ted
reac
hes
of j
obs
130,
000
by
end
of P
roje
ct.
(Dir
ect
0 pr
ojec
t ben
efIc
iari
es n
umbe
r, %
of
fem
ales
).
16
INT
ER
ME
DIA
TE
RE
SUL
TS
Inte
rmed
iate
Res
ult (
Com
pone
nt O
ne):
The
pre
viou
s re
sults
fra
mew
ork
had
81 d
iffe
rent
indi
cato
rs. I
t is
not
poss
ible
to f
it th
ese
indi
cato
rs in
the
fra
mew
ork
prov
ided
in t
his
fram
ewor
k.
How
ever
, the
ori
gina
l re
sults
fra
mew
ork
was
att
ache
d as
Ann
ex 1
of a
ful
ler
draf
t ver
sion
of t
he r
estr
uctu
ring
pap
er w
hich
is a
vaila
ble
in fi
les
but t
hat
has
been
str
eam
line
d fo
r B
oard
pr
esen
tatio
n.
Rev
ised
Int
erm
edia
te R
esul
t (C
ompo
nent
One
): I
nves
tmen
t cli
mat
e in
Sen
egal
com
pare
s fa
vora
bly
wit
h th
at o
f cou
ntri
es w
ithi
n W
AE
MU
Inte
rmed
iate
Res
ult i
ndic
ator
One
: N
ew
Day
s 9
9 8
Ann
ual
DB
rep
ort
Wor
ld B
ank
The
tim
e to
reg
iste
r a
firm
is
0 re
duce
d to
8 d
ays.
In
term
edia
te R
esul
t in
dica
tor
Two:
N
ew
% ra
te
28%
28
%
28%
S
emi-
annu
al
Aid
e m
emo
ire
Wor
ld B
ank
The
cor
pora
te m
argi
nal t
ax r
ate
is
0 re
duce
d to
28%
by
2011
. In
term
edia
te R
esul
t in
dica
tor
Thre
e:
0 N
ew
Num
ber
of
8,50
0 9,
200
10,0
00
Sem
i an
nual
A
PIX
rep
ort
AP
IX
The
num
ber
of n
ew f
irm
s fir
ms
regi
ster
ed e
xcee
ds 1
0,00
0 In
term
edia
te R
esul
t in
dica
tor
Fou
r:
0 N
ew
Day
s 10
(ex
port
) 9
8 A
nnua
l D
B r
epor
t W
orld
Ban
k T
ime
to c
lear
goo
ds f
or
10 (
impo
rt)
expo
rt/i
mpo
rts
redu
ced
to 8
day
s.
8 8
Rev
ised
Int
erm
edia
te R
esul
t (C
ompo
nent
Tw
o):
AP
IX e
ffec
tive
ly p
lays
its
rol
e as
pro
mot
er o
f inv
estm
ents
, and
is i
ncre
asin
gly
able
to
cove
r a
port
ion
of i
ts o
pera
ting
cos
ts f
rom
its
re
venu
es o
r th
ose
of t
he B
udge
t. In
term
edia
te R
esul
t in
dica
tor
One
: N
ew
%o
f 50
%
60%
70
%
Ann
ual
AP
IX r
epor
t A
PIX
A
PIX
ope
rati
ng c
osts
are
cov
ered
0
oper
atin
g at
leas
t by
70%
by
its r
even
ues
and
cost
th
e S
tate
bud
get b
y en
d o
f Pro
ject
. In
term
edia
te R
esul
t ind
icat
or T
wo:
N
ew
Num
ber
of
0 10
25
S
emi
annu
al
Aid
e m
emoi
re
Wor
ld B
ank
The
num
ber
of l
oans
mad
e us
ing
loan
s th
e P
arti
al C
redi
t Gua
rant
ee
0 re
ache
s 25
by
end
of p
roje
ct a
nd
the
amou
nt l
ent U
S$
10 m
illi
on.
--------_
.. -
'--
'--
-----------------
---
--
17
Rev
ised
In
term
edia
te R
esu
lt (
Co
mp
on
ent
Th
ree)
: A
ctio
ns a
re u
nder
take
n to
im
prov
e th
e qu
alit
y o
fth
e to
uris
m p
rodu
ct a
nd p
rom
ote
the
deve
lopm
ent o
f the
mus
ic i
ndus
try.
Inte
rmed
iate
Res
ult i
ndic
ator
One
: 0
New
N
/A
No
stra
tegy
D
raft
St
rate
gy
Sem
i an
nual
A t
ouri
sm s
trat
egy
is a
dopt
ed b
y st
rate
gy
end
of p
roje
ct.
A d
ecre
e is
ado
pted
to e
stab
lish
a
new
col
lect
ing
soci
ety
or s
ocie
te d
e ge
stio
n co
llec
tive
to e
nsur
e pa
ymen
t of r
oyal
ties
In
term
edia
te R
esul
t ind
icat
or tw
o:
0 N
ew
N/A
N
o de
cree
D
ecre
e Pa
ymen
t of
Sem
i ann
ual
A d
ecre
e is
ado
pted
to e
stab
lish
a
roya
lties
new
col
lect
ing
soci
ety
or s
ocie
te d
e ge
stio
n co
llec
tive
to e
nsur
e pa
ymen
t of r
oyal
ties
Rev
ised
In
term
edia
te R
esu
lt (
Co
mp
on
ent
Fo
ur)
: P
roje
ct c
ompo
nent
s ar
e co
ordi
nate
d an
d ar
e ef
fect
ivel
y im
plem
ente
d
Inte
rmed
iate
Res
ult i
ndic
ator
One
: A
RM
P is
ful
ly o
pera
tion
al a
nd
cove
rs a
ll o
f its
ope
rati
onal
cos
t fr
om i
ts r
even
ues
to e
nsur
e su
stai
nabi
lity
by
end
of P
roie
ct.
Inte
rmed
iate
Res
ult i
ndic
ator
Tw
o: %
o
f an
nual
ope
rati
ng c
ost
cov
ered
Inte
rmed
iate
Res
ult i
ndic
ator
Thr
ee:
% o
f pro
cure
men
t com
plai
nts
prop
erly
inve
stig
ated
and
dec
ided
,-
on.
0 N
ew
N/A
A
RM
Pis
A
RM
Pis
A
RM
Pis
Se
mi a
nnua
l pa
rtia
lly
part
ially
fu
lly
oper
atio
nal
oper
atio
nal
oper
atio
nal
0 N
ew
60%
80
%
100%
Se
mi a
nnua
l
0 N
ew
%o
f 70
%
80%
90
%
Sem
i ann
ual
com
plai
nts
inve
stig
ated
---
--
-_
.. _------
*P
leas
e in
dic
ate
wh
eth
er t
he
ind
icat
or
is a
Co
re S
ecto
r In
dic
ato
r (s
ee f
urt
her
htt
p:/
/co
rein
dic
ato
rs)
**
Tar
get
val
ues
sh
ou
ld b
e en
tere
d .f
or t
he
yea
rs d
ata
wil
l b
e av
aila
ble
, n
ot
nec
essa
rily
an
nu
ally
18
Aid
e m
emo i
re
Wor
ld B
ank
Aid
e m
emo
ire
Wor
ld B
ank
- Aid
e m
emoi
re
Wor
ld B
ank
Fina
ncia
l Mgt
A
RM
P re
port
Aid
e m
emo i
re
Wor
ld B
ank
AR
MP
AR
MP
Aid
e m
emo i
re
Wor
ld B
ank
AR
MP
AR
MP
Mac
ro-e
cono
mic
F
ram
ewor
k
Inte
rnat
iona
l fi
nanc
ial
and
econ
omic
cri
sis,
an
d fo
od a
nd f
uel
pric
e st
abil
ity.
Ann
ex 2
: R
isk
Ass
essm
ent
The
re is
a c
erta
in r
isk
to m
aint
aini
ng
mac
roec
onom
ic d
isci
plin
e,
part
icul
arly
thro
ugh
off
bud
get
expe
ndit
ures
and
pot
enti
ally
ex
cess
ive
borr
owin
g.
One
ext
erna
l ris
k th
at h
as t
o be
m
onit
ored
in th
e m
ediu
m-t
erm
is
the
fisc
al a
nd e
cono
mic
impa
ct o
f the
in
tern
atio
nal
fina
ncia
l cr
isis
and
foo
d an
d fu
el p
rice
sta
bili
ty.
So f
ar,
this
imp~ct h
as b
een
rela
tive
ly l
imit
ed, b
ut
ther
e is
a r
isk
that
the
situ
atio
n co
uld
sign
ific
antl
y de
teri
orat
e de
pend
ing
on
futu
re d
evel
opm
ents
of t
he g
loba
l ec
onom
y, w
hich
cou
ld l
ead
to f
isca
l pr
essu
res
on th
e go
vern
men
t bud
get.
A p
rolo
nged
glo
bal e
cono
mic
cri
sis
coul
d co
nstr
ict i
nves
tmen
t flo
ws,
ex
port
s an
d re
duce
d th
e le
vel o
f re
mit
tanc
es.
The
im
port
ant d
ownt
urn
in t
ouri
sm a
rriv
als
due
to th
e su
spen
sion
of A
ir S
eneg
al's
op
erat
ions
cou
ld b
e ex
acer
bate
d.
Sub
stan
tial
Sub
stan
tial
19
Sli
ppag
es i
n m
acro
econ
omic
po
lici
es w
ould
be
mit
igat
ed b
y cl
ose
mon
itor
ing
and
coor
dina
tion
by
ID
A,
IMF
and
oth
er d
onor
s. T
he
need
for
ext
erna
l bo
rrow
ing
wou
ld
be r
educ
ed b
y in
crea
sed
gran
t re
sour
ces.
S
usta
inin
g so
und
mac
ro p
olic
y st
ance
: T
he a
utho
riti
es a
re p
ursu
ing
corr
ecti
ve f
isca
l ac
tion
s st
arte
d ea
rlie
r, i
nclu
ding
the
sett
lem
ent o
f do
mes
tic
arre
ars,
whi
ch s
houl
d of
fset
ext
erna
l sh
ocks
. T
he g
over
nmen
t ha
s so
far
ear
ned
out r
elat
ivel
y pr
uden
t mea
sure
s in
re
spon
se to
rec
ent i
nter
nati
onal
de
velo
pmen
ts a
nd c
onti
nues
to
mai
ntai
n a
dial
ogue
wit
h th
e de
velo
pmen
t par
tner
s on
ap
prop
riat
e po
licy
res
pons
es a
nd
the
poss
ible
nee
d fo
r au
gmen
ted
conc
essi
onal
ext
erna
l ai
d in
the
fo
rm o
f gra
nts.
Sub
stan
tial
Sub
stan
tial
Cou
ntry
T
he c
olla
bora
tion
bet
wee
n th
e E
lim
inat
e ar
rear
s an
d pl
ace
enga
gem
ent w
ith
gove
rnm
ent a
nd th
e W
orld
Ban
k is
in
coun
try'
s fi
scal
sta
nce
on
the
Wor
ld B
ank
rela
tive
ly g
ood
stan
ding
. The
sec
ond
sust
aina
ble
trac
k.
and
IDA
Por
tfol
io
phas
e o
f a p
ortf
olio
rev
iew
took
pla
ce
in M
arch
201
0 to
add
ress
cro
ss
Mod
erat
e I En
sure
pay
men
t of c
ount
erpa
rt
Mod
erat
e cu
ttin
g is
sues
. fu
nds:
The
Ban
k te
am i
s w
orki
ng
clos
ely
wit
h G
over
nmen
t so
that
all
C
F a
rrea
rs a
re p
aid,
and
ade
quat
e is
sec
ured
in th
e fu
ture
.
Cro
ss s
ecto
r-R
isks
I T
he e
rrat
ic a
cces
s an
d qu
alit
y o
f T
he B
ank
prov
ides
sub
stan
tial
el
ectr
icit
y w
ill u
nder
min
e th
e as
sist
ance
to th
e en
ergy
sec
tor a
nd a
im
prov
emen
t in
inve
stm
ent c
lim
ate
Sub
stan
tial
st
rong
ene
rgy
sect
or.
I S
ubst
anti
al
and
priv
ate
firm
s' p
rodu
ctiv
ity.
Im
plem
enta
tion
pro
gres
s ha
s be
en
unev
en th
us f
ar.
Res
ista
nce
to i
nves
tmen
t cli
mat
e T
he c
onse
nsus
on
the
refo
rm i
s re
form
s co
uld
com
e fr
om
gene
rate
d th
roug
h th
e P
resi
dent
ial
stak
ehol
ders
in th
e ad
min
istr
atio
n In
vest
men
t Cou
ncil
. S
ince
this
has
w
ho a
re u
sed
to d
eal w
ith
busi
ness
es
Sub
stan
tial
al
read
y be
en d
one,
the
res
ista
nce
Mod
erat
e in
a s
low
and
inef
fici
ent m
anne
r and
co
uld
be o
verc
ome.
co
uld
thus
res
ist t
he c
hang
e br
ough
t ab
out b
v th
e re
form
.
The
Pro
ject
is c
hang
ing
the
impl
emen
tati
on a
rran
gem
ents
oft
he
Sub
stan
tial
m
atch
ing
gran
t to
ensu
re th
at it
is in
I
Sub
stan
tial
li
ne w
ith
the
PA
D o
rigi
nal d
esig
n an
d w
ith
W
'
AP
IX n
ot a
ble
to f
ulfi
ll i
ts e
xpan
ded
The
Pro
ject
is p
rovi
ding
AP
IX w
ith
man
date
due
to in
crea
sing
dem
and
in
adeq
uate
ass
ista
nce
to r
aise
its
. rol
es a
nd r
espo
nsib
ilit
ies.
pe
rfor
man
ce u
nder
the
expa
nded
S
ubst
anti
al
man
date
. M
oder
ate
The
rec
ruit
men
t of a
ful
l tim
e pr
ojec
t Coo
rdin
ator
wil
l add
ress
the
issu
e
20
Pri
vate
sec
tor
orga
niza
tion
s do
not
pa
rtic
ipat
e ad
equa
tely
to th
e P
roje
ct's
im
plem
enta
tion
.
PC
U in
not
abl
e to
ade
quat
ely
carr
y ou
t coo
rdin
atin
g fu
ncti
ons.
GO
S c
ount
erpa
rt f
unds
are
eit
her
not
avai
labl
e or
not
ava
ilab
le i
n a
tim
ely
fash
ion.
Com
plex
des
ign
hind
ers
impl
emen
tati
on.
Mon
itor
ing
and
Eva
luat
ion
is n
ot u
sed
adeq
uate
ly to
impr
ove
Pro
ject
's
perf
orm
ance
.
Subs
tant
ial-
Sub
stan
tial
Sub
stan
tial
Mod
erat
e
Mod
erat
e
addr
essi
ng th
e sl
ow d
isbu
rsem
ent.
Pri
vate
sec
tor
orga
niza
tion
s ar
e no
w b
ette
r eq
uipp
ed to
par
tici
pate
ef
fect
ivel
y to
the
Pro
ject
's
impl
emen
tati
on d
ue to
pas
t ex
peri
ence
, an
d be
tter
co
mm
unic
atio
n w
ith
both
the
stee
ring
Com
mit
tee
and
the
PC
U.
The
new
PC
U is
bei
ng r
einf
orce
d to
ad
equa
tely
man
age
the
Pro
ject
.
The
new
Pre
side
nt o
f the
Pro
ject
S
teer
ing
Com
mit
tee
is th
e D
irec
tor
of C
abin
et o
f the
Bud
get M
inis
ter
and
is k
een
to e
nsur
ing
that
the
fund
s ar
e av
aila
ble.
T
he P
roje
ct c
ompl
exit
y ha
s be
en
redu
ced
thro
ugh
a re
duct
ion
of
acti
viti
es a
nd b
enef
icia
ries
. T
he m
onit
orin
g an
d ev
alua
tion
fr
amew
ork
has
been
sim
plif
ied
in
the
cont
ext o
f the
Pro
ject
re
stru
ctur
ing.
Mor
eove
r, a
n ex
tern
al
M&
E s
peci
alis
t wil
l car
ry o
ut a
bi
annu
al e
valu
atio
n an
d m
ake
reco
mm
enda
tion
s fo
r ad
diti
onal
o
fth
eM&
E.
Mod
erat
e
Mod
erat
e
Mod
erat
e
Mod
erat
e
Mod
erat
e
Rat
ing
of r
isks
on
a fo
ur-p
oint
sca
le-H
igh
, S
ubst
anti
al, M
oder
ate,
Lo
w-a
cco
rdin
g to
the
like
liho
od o
f occ
urre
nce
and
mag
nitu
de o
f ad
vers
e lr
r11
'\<
ll't
21
top related