Document of The World Bank

FOR OFFICIAL USE ONLY

Report No. 37997-SL

MEMORANDUM AND RECOMMENDATION

OF THE

PRESIDENT OF THE

INTERNATIONAL DEVELOPMENT ASSOCIATION

TO THE

EXECUTIVE DIRECTORS

ON ASSISTANCE TO

THE REPUBLIC OF SIERRA LEONE

UNDER THE ENHANCED

HEAVILY INDEBTED POOR COUNTRIES INITIATIVE

November 22,2006

Department: AFTP4 and PRMED Country Management Unit: AFClO Region: Africa

This document has a restricted distribution and may be used by recipients only in the performance o f their official duties. I t s contents may not otherwise be disclosed without Wor ld Bank authorization

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SIERRA LEONE

Currency Equivalents (Exchange Rate Effective as o f September 29,2006)

AAP ACC AfDB AGD B S L CAS CFAA CPIA CWIQ DACO DEPAC DfID DPT DSA DTIS E C ECOWAS EITI ENCISS ERRC/G ESO FIAS GDP GRGG HIPC HIV/AIDS H M O IDA IFMIS IGAP I M C IMF IRCB JSS IsDB L C

Currency Unit = Leone U S $ l .OO = L e 2,975

Government Fiscal Year January I -December 31

Weights and Measures Metr ic System

ABBREVIATION AND ACRONYMS

Assessment and Action Plan Anti-Corruption Commission African Development Bank Accountant-General's Department Bank o f Sierra Leone Country Assistance Strategy Country Financial Accountability Assessment Country Performance and Institutional Assessment Core Welfare Indicators Questionnaire Development Aid Coordination Office Development Partnership Committee Department for International Development (United Kingdom) Diphtheria Pertussis and Tetanus Debt Sustainability Analysis Diagnostic Trade Integration Study European Commission Economic Community o f West African States Extractive Industries Transparency Initiative Enhancing Interaction and Interface between Civ i l Society and the State Economic Rehabilitation and Recovery CredidGrant Establishment Secretary's Office Foreign Investment Advisory Service Gross Domestic Product Governance Reform and Growth Grant Heavily Indebted Poor Countries Human Immunodeficiency Virus/ Acquired Immune Deficiency Syndrome Human Resource Management Office International Development Association (World Bank) Integrated Financial Management Information System Improved Governance and Accountability Pact Inter-Ministerial Committee International Monetary Fund Institutional Reform and Capacity Building Junior Secondary School Islamic Development Bank Local Council

LGA LGFC M&E MAFFS MDA M D B S MDRI MEST MMR MOF M O H S MOT1 MTEF N A C S NaCSA NASSIT N C C T NCP NGO N P A NPPA N P V NRA OAG OECD OPCS PAC PAF PEFA PER PETS P F M PRGF PRS PRSP ROSC SDR SLPA S L R 4 SSL UK UN UNDP USAID WTO

FOR OFFICIAL USE ONLY Local Government Ac t (2004) Local Government Finance Committee Monitoring and Evaluation Ministry of Agriculture, Forestry and Food Security Ministries, Departments and Agencies Multi-donor Budget Support Multilateral Debt Relief Initiative Ministry o f Education, Science and Technology Ministry o f Mineral Resources Ministry o f Finance Ministry o f Health and Sanitation Ministry o f Trade and Industry Medium-Term Expenditure Framework National Anti-Corruption Strategy National Commission for Social Action National Social Security Insurance Trust National Coordinating Committee on Trade National Commission for Privatization Non-Governmental Organization National Power Authority National Public Procurement Authority N e t Present Value National Revenue Authority Office o f the Auditor General Organization for Economic Co-operation and Development Operations Policy and Country Services Public Account Committee Progress Assessment Framework Public Expenditure and Financial Accountability Public Expenditure Review Public Expenditure Tracking Survey Public Financial Management Poverty Reduction and Growth Facility Poverty Reduction Strategy Poverty Reduction Strategy Paper Report on the Observance o f Standards and Codes for Accounting and Auditing Special Drawing Rights Sierra Leone Port Authority Sierra Leone Road Authority Statistics Sierra Leone United Kingdom United Nations United Nations Development Program United States Agency for International Development World Trade Organization

Vice President: Gobind T. Nankani Country Director: Mats Karlsson

Sector Director: Sudhir Shetty Director PRMED Vikram Nehru Sector Manager: Robert R. Blake

Task Team Leader: Douglas Addison

This document has a restricted distribution and may be used by recipients only in the performance o f their off icial duties. I t s contents may not be otherwise disclosed without Wor ld Bank authorization.

MEMORANDUM AND RECOMMENDATION OF THE PRESIDENT OF THE INTERNATIONAL DEVELOPMENT ASSOCIATION TO THE EXECUTIVE DIRECTORS ON ASSISTANCE TO THE REPUBLIC OF SIERRA LEONE

UNDER THE ENHANCED DEBT RELIEF INITIATIVE

TABLE OF CONTENTS

I. 11. 111.

IV.

V. VII.

VIII.

XI. X.

BACKGROUND ............................................................................................................... 1 FULFILLMENT OF COMPLETION POINT CONDITIONS .................................. - 2 REVISION OF EXTERNAL DEBT AND ADJUSTMENTS TO THE RELIEF APPROVED UNDER THE ENHANCED HIPC INITIATIVE ................................... 3 IDA’S DELIVERY OF ASSISTANCE UNDER THE ENHANCED HIPC INITIATIVE ..................................................................................................................... 4 IDA’S DELIVERY OF ASSISTANCE UNDER MDRI ................................................ 4 PROSPECTS FOR LONG-TERM DEBT SUSTAINABILITY UNDER THE ENHANCED HIPC INITIATIVE AND MDRI ............................................................. 5 SATISFACTORY FINANCING ASSURANCES FROM SIERRA LEONE’S CREDITORS ..................................................................................................................... 6 R I S K S ................................................................................................................................ 6 RECOMMENDATION .................................................................................................... 7

LIST OF FIGURES

Figure 1. Debt Service to IDA after HIPC Rel ief and MDRI, 2007-44 .......................................... 5

LIST OF ANNEXES

Annex 1 : Sierra Leone IDA Credits Subject to Debt Service Reduction under the Enhanced Heavily Indebted Poor Count ies Initiative ..................................................................... 8

Annex 2: Sierra Leone Schedule o f Debt Service Reduction under the Enhanced Heavi ly Indebted Poor Countries Initiative, Calendar Year As Approved at the Decision Point. 9

Annex 3: Sierra Leone Revised Schedule o f Debt Service Reduction under the Enhanced Heavily Indebted Poor Counties Initiative, Calendar Year ....................................................... 10

MEMORANDUM AND RECOMMENDATION OF THE PRESIDENT OF THE INTERNATIONAL DEVELOPMENT ASSOCIATION TO THE EXECUTIVE DIRECTORS ON ASSISTANCE TO THE REPUBLIC OF SIERRA LEONE

UNDER THE ENHANCED HIPC DEBT INITIATIVE

1. I submit for your approval the following Memorandum and Recommendation on the assistance to be provided to the Republic o f Sierra Leone under the Enhanced Heavily Indebted Poor Countries (HIPC) Debt Initiative with respect to the debt owed by this country to the International Development Association. This report and i t s recommendation address the criteria for reaching the Completion Point under the Enhanced HIPC Initiative as agreed by the Boards o f the International Monetary Fund (IMF) and IDA in February 2002,’ and establish the debt rel ief to be provided with respect to the debt owed to IDA. Upon reaching the Completion Point, Sierra Leone wil l become eligible for the Multilateral Debt Relief Initiative (MDRI) from IDA.

2. This document complements the jo int IDA-IMF paper entitled “Republic o f Sierra Leone: Enhanced Heavi ly Indebted Poor Countries (HIPC) Initiative Completion Point Document”, the f i rs t Annual Progress Report (APR) for the Sierra Leone Poverty Reduction Strategy Paper (PRSP) prepared by the Sierra Leonean authorities, and the IDA-IMF Joint Staff Advisory Note (JSAN) o f the APR, al l concurrently submitted with this document. The Completion Point Document presents (i) Sierra Leone’s progress in fulfilling the triggers o f the Completion Point under the Enhanced HIPC Initiative; (ii) an update o f Sierra Leone’s reconciled public external debt and the debt rel ief committed at the Decision Point under the Enhanced HIPC Initiative; and (iii) the provision o f MDRI relief by IDA, the IMF, and the African Development Fund (AfDF).

I. BACKGROUND

3. Sierra Leone reached the Decision Point under the Enhanced HIPC Initiative in February 2002. Based o n the debt sustainability analysis (DSA) presented in the Decision Point Document, debt rel ief under the Enhanced HIPC Initiative amounted to US$600.3 mi l l ion in net present value (NPV) terms as o f end 2000. This reduced Sierra Leone’s NPV o f debt after full application o f traditional debt rel ief from US$748.7 mi l l ion to US$148.4 million. The total relief corresponded to a common reduction factor o f 80.2 percent on the NPV o f debt outstanding as o f end-December 2000 for al l creditors, after the application o f traditional debt relief. Debt rel ief attributed to multilateral creditors amounted to US$332.0 mi l l ion (55.3 percent o f total relief) in NPV terms.

4. Debt relief f rom IDA under the Enhanced HIPC Initiative approved at the Decision Point amounted to US121.5 mi l l ion in NPV terms (US$229.9 mi l l ion in nominal terms). According to the Decision Point calculations, this assistance would be delivered through an 88.5 percent reduction in debt service to IDA over the 2002-2022

Sierra Leone: Decision point document for the Enhanced Heavi ly Indebted Poor Countries (HIPC) Init iative Report No. IDA/R2002-0015.

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period. Interim assistance in the amount o f US$38.1 mi l l ion in nominal terms has been delivered through end-November 2006. Annex 2 o f the current memorandum presents the debt service reduction schedule approved by Executive Directors at the time o f the Decision Point.

11. FULFILLMENT OF COMPLETION POINT CONDITIONS

5. In accordance with the decision o f the Executive Directors o f the IMF and IDA at the Decision Point, Sierra Leone would reach i t s floating Completion Point under the Enhanced HIPC framework when a set o f agreed conditions were met. These conditions and the assessment o f progress for meeting them are summarized in the accompanying Completion Point document. The conditions for reaching the floating Completion Point, as set out in the Box 6 o f the Decision Point document, comprised: (i) preparation o f a full PRSP and implementation for at least one year, as evidenced by the satisfactory jo int staff assessment o f the PRSP and the country’s annual progress report; (ii) continued maintenance o f macroeconomic stability as evidenced by satisfactory implementation o f the PRGF-supported program; (iii) key reforms in the areas o f governance, private sector development, education and health and (iv) the increase in total spending on designated poverty reducing expenditure priorities will be proportionate to HIPC relief.

6. Sierra Leone has satisfactorily met al l but two o f the thirteen floating Completion Point triggers agreed at the Decision Point, and has therefore made sufficient progress to reach the Completion Point under the enhanced HIPC Initiative. The Government of the Republic o f Sierra Leone completed its PRSP in February 2005 and the Executive Directors o f IMF and IDA endorsed the staffs’ assessment o f the PRSP in M a y 2005.

7. Implementation in 2005 and the first ha l f o f 2006 was adequate, as evidenced by the f i rs t Annual Progress Report and noted in the accompanying JSAN. Sierra Leone successfully completed al l six reviews under the first arrangement under the PRGF with the IMF between September 2001 and June 2005 and is set to complete the first review under the successor PRGF arrangement initiated in M a y 2006. I t is expected that the first review, covering performance through end-June 2006, wil l be discussed by the IMF Executive Board concurrently with the HIPC Completion Point document. Government made use o f the budgetary savings from HIPC debt rel ief broadly in accordance with the ,criteria set forth at the Decision Point. The increase in total spending on designated poverty reducing expenditure priorities was more than proportionate to HIPC relief.

8. The trigger concerning the bi-annual tracking o f public expenditures on priori ty areas within the Public Expenditure Tracking Survey (PETS) framework, including development expenditures, was met only in part because the reporting frequency was annual rather than bi-annual and development expenditures were omitted. Although the initial PETS reports in 2001 were conducted bi- annually, they proved too taxing for the government to maintain in subsequent years, both organizationally and financially, and so were subsequently scaled back to annual exercises. Also, the tracking o f development expenditures required engineering and other technical skills that were lacking in the Ministry o f Finance, and so were not done.

Two triggers have been partially met.

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Despite the partial implementation o f this condition, the staffs judge that the PETS tracking reports were effective in achieving their goals. Their documentation o f serious resource leakages in the provision o f education and health services have led to substantial reforms and resource savings.

9. The trigger in the education sector that concerned teacher training was also met only partially. The target that was set was exceeded by over 100 percent in the case o f primary school teachers as 3,510 teachers were trained rather than the target o f 1,500. However, for secondary school teachers, only 90 percent o f the target o f 500 teachers has been met. The failure to meet this target reflects capacity limitations in the Ministry o f Education, Science and Technology as well as delays on the parts o f key donors in providing assistance to upgrade training facilities.

111. REVISION OF EXTERNAL DEBT AND ADJUSTMENTS TO THE RELIEF APPROVED UNDER THE ENHANCED HIPC INITIATIVE

10. As detailed in the Completion Point document, the updated D S A based on additional information received from creditors has resulted in the nominal stock o f debt at end-December 2000 being revised from $1,210.0 mi l l ion to $1,282.5 mi l l ion and the N P V o f debt after the delivery o f traditional debt rel ief from $748.7 mi l l ion to $829.1 mil l iona2 The N P V o f debt owed to multilateral creditors was increased to US$417.6 mi l l ion from the US$413.9 mi l l ion estimated in the Decision Point d o ~ u m e n t . ~ The N P V o f debt owed to IDA at end-2000 amounted to US$151.5 mi l l ion or 18.3 percent o f the total. The N P V o f debt owed to the IMF amounted to US$153.7 mi l l ion or 18.5 percent o f the total N P V o f debt at end-2000.

1 1. This reconciliation exercise, together with revised estimates for exports4, has resulted in the common reduction factor being increased from 80.2 to 81.4 percent. Therefore, the total required HIPC assistance in end-2000 N P V term has been revised upward from US$600.3 mi l l ion to US$675.2 million, o f which the costs to multilateral creditors and bilateral and commercial creditors would amount to US$340.1 mi l l ion and US$335.1 million, respectively.

* This review revealed additional debts to multilateral, official bilateral and commercial creditors. A number o f commercial creditors, which approached the authorities after reaching the Decision Point, were identified and included in the Decision Point database.

NPV o f debt to IFAD and the IsDB was revised respectively upwards by U S 2 . 9 million and downwards by USO.3 million, due to the correction o f the currency o f denomination o f outstanding loans. The NPV o f debt to BADEA has been increased by US$4.0 million to reflect the arrears rescheduled prior to the Decision Point.

Estimates o f exports o f goods and services used to evaluate HIPC assistance at the Decision Point have also been revised from an average o f US$98.9 million per year over 1998-2000 to US$102.6 million. Revised export data were f i rs t submitted by the authorities in 2003 as a result o f their efforts to improve data quality after receiving technical assistance from the IMF.

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IV. IDA’S DELIVERY OF ASSISTANCE UNDER THE ENHANCED HIPC INITIATIVE

12. approve an upward revision o f IDA’S assistance in NPV terms by US$1.8 mi l l ion to US$123.4 from US$121.5 mi l l ion estimated at Decision Point.

In light o f the revision to the DSA, it i s proposed that the Executive Directors

13. In accordance with the revision o f HIPC assistance and with the guidelines approved by the Executive Directors on the provision o f HIPC assistance,’ the delivery mechanism approved at the Decision Point required the IDA to provide US$123.4 mi l l ion in NPV terms at Decision Point. Of this amount, IDA would have delivered US$32.4 mi l l ion in NPV terms (US$38.5 mi l l ion in nominal terms) as interim rel ief between April 2002 and December 2006, corresponding to a reduction o f 88.5 percent o f debt service falling due over this period. On reaching the Completion Point, the revised HIPC debt re l ie f would equal an average o f 90.0 percent o f debt service due o n debt disbursed and outstanding at end-2000, provided till April 2022 (Figure 1). Annex 3 o f the current memorandum presents the revised debt service reduction schedule. Provided that Executive Directors agree with the revisions outlined above and that satisfactory assurances o f debt rel ief are received from Sierra Leone’s other creditors at the Completion Point under the Enhanced HIPC Initiative then the debt service reduction for the remaining period up to April 2022 would become irrevocable.

V. IDA’S DELIVERY OF ASSISTANCE UNDER MDRI

14. If Executive Directors approve the Completion Point for Sierra Leone under the enhanced HIPC Initiative, Sierra Leone wil l also qualify for additional debt relief under the Multilateral Debt Relief Initiative (MDRI). Three creditors would provide debt rel ief under the MDRI: IDA, the African Development Fund (AfDF) and the IMF. Total stock o f debt reduction achieved under the HIPC Initiative and the MDRI would amount to US$861.3 mi l l ion and MDRI debt relief (net o f HIPC assistance) would lead to debt service salrings o n debt owed to IDA, the IMF and the Af i ican Development Bank of US$609.9 mi l l ion over a period o f 45 years.

15. Once the MDRI becomes effective, IDA would provide debt rel ief through a debt stock cancellation o f debt disbursed before end-2003 and s t i l l outstanding on January 1, 2007. Debt rel ief under the MDRI would cover al l remaining debt service obligations on eligible IDA credit balances through maturity, after any debt service rel ief available under the Enhanced HIPC Initiative.6 IDA would provide MDRI debt forgiveness by irrevocably canceling the borrower’s payment obligations under the eligible credits. This would reduce Sierra Leone’s debt stock owed to IDA by US$500.0 million, o f which a reduction o f US$326.7 mi l l ion would be due to the implementation o f MDRI and the remainder to HIPC assistance. Debt cancellation under the MDRI from IDA would result in average annual debt service savings (net o f HIPC assistance) for Sierra Leone o f

“Heavily Indebted Poor Countries (HIPC) Initiative: Note o n Modalit ies for Implementing HIPC Debt

See “IDA’S Implementation o f the Mult i lateral Debt Rel ie f Initiative”, M a r c h 14,2006. Rel ie f Under the Enhanced Framework,” IDAR2000-4, January 10,2000.

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US$4.9 mi l l ion between 2007 and 2021 and US$13.3 mi l l ion from 2022 to 2043. Total debt service savings would amount to US$366.3 mi l l ion (SDR 261.0 million). Figure 1 illustrates the impact o f MDRI o n projected debt service due to IDA as o f end-December 2006.

Figure 1. Debt Service to IDA after HIPC Relief and MDRI, 2007-44 (In millions o f U S dollars)

30.0

25.0

20.0

15.0

10.0

5.0

0.0

Before relief After HIPC

..... After MDRI

.................................................... ......................... .... ............... v) g 7 z E ? - i g g & ; g # g g g $ g L % % L %

VII. PROSPECTS FOR LONG-TERM DEBT SUSTAINABILITY UNDER THE ENHANCED HIPC INITIATIVE AND MDRI

16. The DSA included in the Decision Point document was updated on the basis o f end-2005 loan-by-loan debt data, using updated exchange and interest rates. Based o n full debt data reconciliation, Sierra Leone’s nominal stock o f external debt reached US$1,573.2 mi l l ion at end-2005, compared with US$1,210.0 mi l l ion at end-2000. Multilateral creditors accounted for 67.4 percent o f total debt, while bilateral and commercial creditors for 23.5 percent and 9.2 percent respectively.

17. As detailed in the Completion Point Document, the NPV o f Sierra Leone’s external debt at end-2005, after full delivery o f the assistance committed under the HIPC Initiative at the Decision Point, i s estimated at US$481.0 million, equivalent to 202.3 percent o f exports, compared with a Decision Point projection o f 130.2 p e r ~ e n t . ~

The NPV o f debt to export ratio has substantially increased with respect to projections at the time of the Decision Point, mainly because o f different discount rates, more depreciated US. dollars vis-A-vis other currencies in which Sierra Leone’s debt i s denominated and lower concessionality o f new borrowing.

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18. Sierra Leone does not meet the condition for topping-up. After the delivery o f additional bilateral rel ief beyond HIPC assistance, the NPV o f external debt i s further reduced to US$425.0 mi l l ion or 178.8 percent o f exports in end-2005. However, under borrowing assumptions in l ine with the past and conservative export growth estimates, the NPV o f debt to export ratio, after HIPC and additional bilateral rel ief i s projected to fa l l under the 150 percent threshold by 2007 and to decrease to 84.8 percent by 2025.

19. An updated debt sustainability analysis shows that Sierra Leone’s external debt will remain below the HIPC Initiative threshold throughout the projection period. After HIPC relief, the NPV o f debt-to-export ratio i s expected to fa l l below the HIPC threshold after 2007, even assuming progressively less grant financing over the medium term. Fol lowing enhanced HIPC assistance, as wel l as additional bilateral and MDRI rel ief at the Completion Point, the NPV o f debt-to-exports ratio would drop to 46.3 percent at end-2006 and i t would subsequently increase to 67.7 percent by the end o f the projection period. The NPV o f debt-to-GDP ratio would decrease from 92.0 percent at end-2005 to 8.7 percent at end-2006. I t is expected to rise modestly over the medium-term while staying at about 14 percent in the long-run. External debt service ratios will decline to comfortable levels in l ine with a significant reduction o f the NPV o f debt stock after the Completion Point. Debt service to export ratio after the HIPC and additional bilateral assistance is expected to average 5.3 percent in 2006-2015 and to decline further to 4.2 percent on average in 2016-25. The debt service to revenue ratio would decline from an average value o f 9.8 percent in 2006-15 to 6.5 percent over 2016-25. N e w borrowing wil l be mainly on IDA terms and is expected to decline from 3 percent o f GDP in 2006 to below 2 percent o f GDP by 2025.

20. Sierra Leone sustainability outlook heavily depends upon sustained export growth and prudent debt management. Stock indicators are expected to substantially exceed the HIPC thresholds in the event o f large shocks to exports and shortfall in grant financing. Thus, the sensitivity analysis underscores the importance o f pursuing export diversification and prudent borrowing policies in order to avoid potential risks for debt sustainability.

VIII. SATISFACTORY FINANCING ASSURANCES FROM SIERRA LEONE’S CREDITORS

2 1. Sierra Leone has received financing assurances o f participation in the Enhanced HIPC Initiative f rom creditors representing 81 percent o f the NPV o f HIPC assistance estimated at the Decision Point. Most multilateral and Paris Club creditors have confirmed their participation in the HIPC Initiative and the authorities are working toward reaching agreements with al l remaining creditors.

XI. R I S K S

22. The main risks affecting this operation are (i) uncontrolled spending in the post- Completion Point period, financed by external borrowing that could undermine debt sustainability and jeopardize macroeconomic stability, long-term growth and poverty

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reduction; (ii) the possible failures o f the continued development o f key minerals especially ru t i le and bauxite, and slower growth o f diamond exports owing to weak mining policy to attract foreign investors; and (iii) slippages in structural and governance reforms that might discourage private investments and inf lows o f official resources. These risks wil l be mitigated by continued close monitoring o f developments in fiscal outcomes, the balance o f payments and structural reforms in the context o f annual development pol icy operations as wel l as a mix o f financing consistent with a l o w risk o f debt distress.

X. RECOMMENDATION

23. In view o f the above, I recommend that the Executive Directors endorse the staff assessment contained in the Completion Point Document concerning Sierra Leone’s fulfillment o f the floating Completion Point conditions under the Enhanced HIPC Initiative and that debt relief on debt owed to IDA by Sierra Leone be provided unconditionally.

24. I further recommend that the Executive Directors agree with the staffs’ revision o f the NPV o f debt and o f HIPC assistance and approve the recommendations on the manner and the amount o f debt rel ief to be provided on remaining debts owed by Sierra Leone to IDA.

Paul Wolfowitz President

by Juan Jose Daboub, Managing Director Graeme Wheeler, Managing Director

Washington, D.C. November 17,2006

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Annex 1 Sierra Leone

IDA Credits Subject to Debt Service Reduction under the Enhanced Heav i l y Indebted Poor Countries Init iative

Credit Project Name Balance at December 3 1,2000 Currency In original currency In U S D equivalent

1700 2180 3230 5680 5730 7340 9700 10940 11280 11290 12650 13530 15010 16950 23520 23521 23522 23560 24350 245 10 25110 25460 25461 25462 25463 25464 27020 28270 28950 33120 33210 3321 1

Education First Highway Integrated Agricultural Devel. Integrated Agricul. Dev. Ii Second Education Third Power Technical Assistance East. Integrated Agri. Dev Iii North Integrated Agri Dev Ii Second Highway Power Sector Engineering Third Education Agricultural Sector Support Health And Population Reconstruction Import Reconstruction Import Reconstruction Import Power Sector Rehabilitation Public Sector Mgmnt Support Road Rehabilitation & Mainten. Freetown Infrastructure Rehab Structural Adjustment Structural Adjustment Structural Adjustment Structural Adjustment Structural Adjustment Urban Water Supply Integrated Health Sector Transport Sector Community Reintegration & Reha Economic Rehab. & Recovery Economic Rehab. & Recovery

U S D U S D U S D U S D U S D U S D SDR SDR SDR SDR SDR SDR SDR SDR SDR SDR SDR SDR SDR SDR SDR SDR SDR SDR SDR SDR SDR SDR SDR SDR SDR SDR

1,753,23 1.69 2,194,836.86 2,773,500.00 3,675,000.00 5,233,406.19 6,5 1 1,698.00 1,682,312.09 7,587,307.71 2,569,107.3 1 7,108,179.83 4,117,500.00

12,474,769.15 16,665,825.45 4,393,000.00

3 1,400,000.00 220,000.00 2 10,000.00

11,281,684.63 6,885,068.75

29,345,465.56 16,566,250.81 35,900,000.00

140,000.00 200,000.00 200,000.00

99,974.43 14,613,534.49 8,149,597.64 7,8 17,001.85 8,660,602.06

18,300,000.00 7,900,000.00

1,753,23 1.69 2,194,83 6.86 2,773,500.00 3,675,000.00 5,233,406.19 6,5 11,698.00 2,191,901.25 9,885,579.09 3,347,315.61 9,261,3 18.58 5,364,73 1.93

16,253,501.47 21,714,070.64 5,723,683 -63

40,911,374.00 286,640.20 273,611.10

14,699,019.72 8,970,624.93

38,234,500.53 21,584,333.84 46,774,469.00

182,407.40 260,582.00 260,582.00 130,257.68

19,040,120.22 10,6 18,192.26 10,184,849.88 11,283,985.03 23,843,253 .OO 10,292,989.00

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Annex 2 Sierra Leone

Schedule o f Debt Service Reduction under the Enhanced Heavi ly Indebted Poor Countries Initiative, Calendar Year

As Approved at the Decision Point

Calendar Year Amount to be reduced

(In thousands o f US. dollars)

TOTAL. 229,860

April I -December 31, 2002 2003 2004 2005 2006 2007 2008 2009 201 0 201 I 2012 201 3 201 4 2015 201 6 201 7 201 8 201 9 2020 2021

January I - March 31, 2022

4,126 7,088 8,472 9,196 9,603 9,692 9,638 9,583

10,294 10,576 11,057 12,639 13,612 14,089 14,40 1 14,397 14,302 14,207 14,795 14,940 3,155

Source: World Bank, Loan Accounting Department and staff estimates.

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Annex 3 Sierra Leone

Revised Schedule o f Debt Service Reduction under the Enhanced Heavi ly Indebted Poor Countries Initiative, Calendar Year

Calendar Year Amount to be reduced

(In thousands o f US. dollars)

TOTAL 234,48 1

April I -December 31, 2002 2003 2004 2005 2006 2007 2008 2009 201 0 201 I 2012 2013 201 4 2015 201 6 201 7 201 8 2019 2020 2021

January 1 -Apr i l 30,2022

4,126 7,088 8,472 9,196 9,603 9,853 9,797 9,742

10,464 10,75 1 1 1,240 12,849 13,838 14,323 14,640 14,635 14,539 14,442 15,040 15,188 4,657

Source: World Bank, Loan Accounting Department and staffestimates.

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