REPUBLIC OF CONGO : ECONOMIC MANAGEMENT SUPPORT PROJECT (EMSP)

Transcription

1 REPUBLIC OF CONGO : ECONOMIC MANAGEMENT SUPPORT PROJECT (EMSP) PROJECT COMPLETION REPORT * * Questions on this document should be referred to: Mr. G. NEGATU Director OSGE Ext. 077 Mr. J. M. GHARBI Director ORCE Ext. 060 Mrs. M. KANGA Manager OSGE. Ext. 5 Mr. T. HOUENINVO Senior Marco-Economist OSGE. Ext. 07 SCCD: N.A.

2 Format approved by Operations Committee on 4//09 A. PROJECT INFORMATION AND KEY DATES I. BASIC INFORMATION Project Number P-CG-K Project Name: ECONOMIC MANAGEMENT SUPPORT PROJECT (EMSP) Country: Republic of Congo Lending Instrument(s): ADF Window Sector: Multisector Environmental Classification: Category Original Commitment: UA Amount Cancelled: UA 0.00 Amount Disbursed: UA Borrower: Government of the Republic of Congo % Disbursed: 7 Executing Agency(ies): Ministry of the Economy, Finance and Budget/PIU Co-financers and other external Partners: Government of Congo II. KEY DATES Project Concept Note Approved by Ops. Com.: NA Appraisal Report Cleared by Ops. Com.: NA Board Approval: 7/09/00 Restructuring: Nil Original Date Actual Date Difference in months [Actual-Original] EFFECTIVENESS November 00 4 March 004 MID-TERM REVIEW January 005 NA NA CLOSING January 005 December 008 >6 months III. RATINGS SUMMARY CRITERIA SUB-CRITERIA RATING Achievement of Outputs PROJECT OUTCOME Achievement of Outcomes Timeliness OVERALL PROJECT OUTCOME Design and Readiness BANK'S PERFORMANCE Supervision OVERALL BANK PERFORMANCE Design and Readiness BORROWER'S PERFORMANCE Implementation OVERALL BORROWER PERFORMANCE IV. BANK STAFF RESPONSIBLE POSITIONS AT APPROVAL AT COMPLETION Regional Director Sector Director Task Manager PCR Team Leader PCR Team Members L.S.B. CHAKROUN NA A. BA NA J. GHARBI G. NEGATU T. HOUENINVO T. HOUENINVO

3 B. PROJECT CONTEXT Summarize the rationale for Bank assistance. State: - on which development challenge is the project focused, - overall strategy of the borrower to meet this challenge, - Bank activities in this(ese) country(ies) and in this sector during the previous year and performance, and - ongoing activities financed by the Bank and other external sources that supplement duplicate or relate to the project. Over the period , the Government prepared a reform programme supported by an IMF post-conflict facility (PIPC) and an IDA economic recovery loan for the period to address certain challenges, in particular the promotion of good governance and strengthening of the macroeconomic framework. This programme could not be implemented as envisaged due to weak institutional capacity which hindered the introduction of structural and macroeconomic reforms. Although the outputs at the macroeconomic level are still inadequate, they are improving significantly. To consolidate this trend, the Government undertook to reinforce reforms within the framework of a staff-monitored programme covering the first half of 00. This programme had two objectives: (i) support major reforms to ensure better State control of oil resources; (ii) support the non-oil sector plagued by serious problems, in particular an unsustainable external and internal debt burden, inadequate social and economic infrastructure, an almost non-existent information and statistics system. Over the period , the Government prepared a reform programme supported by an IMF post-conflict facility (PIPC) and an IDA economic recovery loan for the period to address certain challenges, in particular the promotion of good governance and strengthening of the macroeconomic framework. This programme could not be implemented as envisaged due to weak institutional capacity which hindered the introduction of structural and macroeconomic reforms. Although the outputs at the macroeconomic level are still inadequate, they are improving significantly. To consolidate this trend, the Government undertook to reinforce reforms within the framework of a staff-monitored programme covering the first half of 00. This programme had two objectives: (i) to support major reforms to ensure better State control of oil resources; (ii) to support the non-oil sector plagued by serious problems, in particular an unsustainable external and internal debt burden, inadequate social and economic infrastructure, an almost non-existent information and statistics system. C. PROJECT OBJECTIVE AND LOGICAL FRAMEWORK. State the Development Objective(s) of this Project (as set out in the appraisal report) The overall objective of the project is to contribute to capacity building for the formulation and implementation of economic policies. Its specific objective is to consolidate and develop competencies in economic forecasting, debt management and public investment programming.. Describe the main project components and state how each will contribute to achieving the project objectives. The project comprises two main components, namely the strengthening of debt management and public investment programming. (A) Strengthening of debt management. It supports the CCA through the procurement of adequate computer equipment and the training of 0 management personnel in modern debt management and analysis techniques and provision of technical assistance for seven months. (B) Strengthening of public investment programming. It supports the DGP through the procurement of adequate computer equipment and training of 60 management personnel in project evaluation and monitoring of public expenditure and provision of technical assistance for six months.. Provide a brief assessment (up to two sentences) of the project objectives along three dimensions: insert a working score, using the scoring scale provided in Appendix. PROJECT OBJECTIVES DIMENSIONS ASSESSMENT WORKING SCORE RELEVANT ACHIEVABLE CONSISTENT (a) Relevant to the country's development priorities. (b) Objectives could be achieved with the project inputs in the expected time frame. (c) Consistent with the Bank's country or regional strategy. (d) Consistent with the Bank s overall priorities Consistent with the reform programme: average Except for economic forecasting, the objective could be achieved in the expected time frame: average Consistent with the Bank's CSP and current RBCSP Governance and the Bank's strategy to roll back poverty in RMC 4. Lay out the project logical framework. If no logical framework exists, complete the table below stating the overall objective of the project, the main components of the project, the main activities of each component and expected outputs and outcomes as well as indicators for measuring progress. Add additional rows for components, activities, outputs or outcomes, if needed. COMPONENTS ACTIVITIES EXPECTED OUTPUTS EXPECTED OUTCOMES INDICATORS FOR MEASURING PROGRESS Component : Strengthening of debt management Component : Strengthening of public investment programming Component : Project management and monitoring Activity : Recruitment of one Output : CCA diagnosis expert and one trainer in debt carried out; management mgt. personnel trained Activity : Procurement of equipment for the CCA Activity : Procurement of equipment for the DGP Output : Supply and installation of equipment Activity : Recruitment of one Output : Diagnosis of the expert and one trainer in public DGP and 7 management invest personnel trained Activity : Putting in place and equipment of PIU Output : Supply and installation of equipment Output : Supply and installation of equipment Activity : Recruitment of auditinoutput : Signing of contract with auditing firm Outcome : Debt is better monitored Outcome : Equipment and All equipment connected to the network by December networks are operational 008 Outcome : Public invest. is better managed Outcome : PIU is operational and monitored Outcome : Financial mgt. is certified The debt stock reduced by 55 % from 006 to 007. Rate of PIP implement. increased from 87. % (00) to 98. % (008) Outcome : Equipment and All equipment connected to the network by December networks are operational 008 Periodic progress reports Annual financial audit reports of project 5. For each dimension of the logical framework, provide a brief assessment (up to two sentences) of the extent to which the logical framework contributed to the achievement of the objectives mentioned below. Insert a working score using the scoring scale provided in Appendix. If no logical framework exists, score this section a. LOGICAL PROJECT LOGICAL FRAMEWORK DIMENSIONS ASSESSMENT WORKING SCORE MEASURABLE THOROUGH (a) Presents a logical causal chain for Except for macroeconomic forecasting, the causal chain between the achieving the development objectives of resources to be allocated and the project objectives are logical the project (b) Expresses objectives and outcomes in a way that is measurable and quantifiable Objectives and outcomes are measurable and quantifiable, but the identification of indicators is injudicious for outputs Resources: Risk linked to the effect of the exchange rate on debt not taken (c) States the risks and key assumptions into account

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5 D. OUTPUTS AND OUTCOMES I. ACHIEVEMENT OF OUTPUTS In the table below, assess for each main activity the achievement of actual vs. expected outputs. Import the expected outputs from the logical framework in Section C. Score the extent to which the expected outputs were achieved. Calculate the weighted scores in proportion to the approximate cost of project activities. The overall score will be auto-calculated as the average of working scores. Override the auto-calculated score, if desired, and provide justification. Expected Outputs MAIN ACTIVITIES Actual Outputs Working Score Proportion of Project Costs expressed as a percentage (as set out in the appraisal report) Weighted Score (auto-calculated). Diagnosis of CCA and training of 0 Diagnosis of CCA carried out and management personnel management personnel trained (cf C4). Supply and installation of CCA CCA equipment supplied and installed (cf equipment C4). Diagnosis of the DGP and training of Diagnosis of DGP carried out and 60 management personnel management personnel trained (cf C4) 4. Supply and installation of DGP DGP equipment supplied and installed equipment Provide justification for overriding the auto-calculated score OVERALL OUTPUT SCORE [Score is calculated as the average of weighted scores] Check here to override the auto-calculated score Insert the new score or re-enter the auto-calculated score II. ACHIEVEMENT OF OUTCOMES. Using available monitoring data, assess the achievement of expected outcomes. Import the expected outcomes from the logical framework in Section C. Score the extent to which the expected outcomes were achieved. The overall outcome score will be auto-calculated as an average of the working scores. Override the auto-calculated score, if desired, and provide justification. OUTCOMES Expected Actual - The management of public investments is satisfactory PIP implementation rate increases from 87. % (00) to 98. % ( 008) (Cf C4) - DGP equipment and networks are operational All equipment connected to the network is operational, but their use is not optimal (Cf C4) - Better monitoring of debt Debt stock was reduced by 55 % from 006 to 007. (Cf C4) 4 - CCA equipment and material installed and operational All equipment connected to the network is operational, but their use is not optimal (Cf C4) OVERALL OUTCOME SCORE [Score is calculated as the average of working scores] Working Sore Provide justification for overriding the auto-calculated score Check here to override the calculated score Insert the new score or re-enter the auto-calculated score. Other outcomes: Comment on the additional outcomes not included in the logical framework which focus notably on cross-cutting issues (gender, for example). Seven women, representing 4% of beneficiaries, were trained within the project context. In the medium term, the social impact of the project will be improved significantly through better selection of projects, in particular those in the social sectors. These sectors will be allocated resources from debt relief. The share of social sectors in the investment budget will increase from % in to 8% in the PIP Risks to sustained achievement outcomes. State the factors that affect, or could affect, the long-term or sustained achievement of project outcomes. Indicate the new activity or institutional change recommended to help sustain outcomes. The analysis should be based on the sensitivity analysis in Annex, if relevant. The trend in oil prices had a positive economic impact on Government capacity to finance the counterpart funds whose formation is not chargeable to grant resources due to noncompliance with Bank procedures. On the contrary, the current downward trend in prices is likely to negatively impact the capacity of the State to maintain the equipment procured and thus affect the sustainability of project impact over time. This is also true for the instability of personnel trained which remains a real and constant threat to sustaining the project's positive impact.

6 E. PROJECT DESIGN AND READINESS FOR IMPLEMENTATION. State the extent to which the Bank and the Borrower ensured the project was commensurate with the Borrower s capacity to implement by designing it appropriately and by putting in place the necessary implementation arrangements. Consider all major design aspects such as: extent to which lessons learned from previous PCRs in the sector or in the country (please cite key PCRs) were taken into account in the project design; extent to which the project was informed by robust analytical work (please cite key documents); how well Bank and Borrower assessed the capacity of the project implementing agencies of the project; scope of consultations and partnerships, economic justification for the project and provisions made for technical assistance. [50 words maximum. Any additional narrative about implementation should be included in Annex 6: Project Narrative] During appraisal, the Bank and the Government decided by mutual consent to set up a Project Implementation Unit whose actions will be directed and controlled by a steering committee comprising several sector directors of the DGP and CCA. These bodies were put in place in 004. Thanks to Government s counterpart contributions, the PIU went operational that same year. Lessons from Bank operations, other partners and the Government were taken into account in project design and implementation. Thus, the Interim PRSP made a significant contribution by highlighting, in its preparatory work, the strengths and weaknesses of the Congolese administration in view of the country s economic and social development objectives. However, quality at entry posed a problem due, not only to the fact that no preparation mission was carried out, but also to project's limited resources and the objectives that it sought to achieve. Furthermore, the capacity of the implementing agency was underestimated during appraisal.. For each dimension of project design and readiness for implementation, provide a brief assessment (up to two sentences). Insert a working score, using the scoring scale provided in Appendix. PROJECT DESIGN AND READINESS FOR IMPLEMENTATION DIMENSIONS ASSESSMENT Working score REALISM RISK ASSESSMENT AND MITIGATION USE OF COUNTRY SYSTEMS (a) In view of its complexity, the project is underpinned by an analysis of the country's capacity and political commitment. (b) Project design includes adequate risk Risk analysis is fairly satisfactory, but risks linked to exchange rate and mitigation measures. fluctuations on debt were identified at appraisal stage. (Cf.C5c) (c) Procurement, financial management, monitoring and/or other systems are based on those already in use by government and/or other partners. Small size of project and limitation of its coverage to two structures are suitable for the smooth implementation of the project. However, the country's capacity is weak. The deficiency of the national procurement system hindered its use; poor systems development due partly to the war and to the suspension of activities of many international finance structures for the period 995 to 00 For the following dimensions, provide separate working scores for Bank performance and Borrower performance: Bank Working Score Borrower CLARITY (d) Responsibilities for project implementation were clearly defined. Clear definition of roles, but poor effective participation of the Steering Committee due to many changes at the institutional level. PROCUREMENT READINESS (e) Required implementation documents (documents concerning specifications, design, procurement, etc.) are ready at the time of assessment. Poor mastery of Bank procurement procedures by the PIU MONITORING READINESS (f) Monitoring indicators and monitoring plan were agreed upon Some weaknesses at the level of the Bank which did not field enough supervision missions during the first two years of the project due to rotations of Task Managers and institutional changes during the project. BASELINE DATA (h) Baseline data collection is completed or underway. Quantitative and qualitative resources

7 F. IMPLEMENTATION. State the major characteristics of project implementation with reference to: adherence to schedules, quality of buildings and other works, performance of consultants, effectiveness of Bank supervision and effectiveness of Borrower oversight. Determine to what extent the Bank and the Borrower ensured compliance with safeguard measures. [00 words maximum. Any additional narrative about implementation should be included in Annex 6: Project Narrative] The physical implementation of the project was not satisfactory with regard to planning. The Borrower did not ensure effective project implementation monitoring. Poor mastery by the PIU of bidding documents and Bank rules of procedure, coupled with poor monitoring and implementation of recommendations by supervision missions spread project implementation over a period of approximately 60 months against the projected 4 months. The two consultants started their services in 006 with the diagnosis of structures concerned, while training proper wit the IDEA firm was provided partially in Although various equipment and materials were supplied in 006, the computer network was completed at the end of 008 due to administrative and technical problems. However, the computer equipment cannot be used to perform the tasks and related training for which it was originally intended owing to the unavailability of specialized software (Debt-pro, electronic archiving software and appropriate PIP software). The required number of supervision missions were not carried out during the first two years of the project. The quick rotation of staff in charge of the project at the Bank (six in sixty months) hindered the improvement of operation performance. The main outcomes after extending the project period twice include: (i) the recruitment of two debt management and public investment programming consultants for seven months and six months, respectively; (ii) the delivery and installation of various equipment and the installation of the computer network; (iii) the training of twelve management personnel in debt management and seventeen management personnel in public investment programming, representing 40% and 8% of projections, respectively. The State financed part of the training due to non-compliance of this contract with Bank rules of procedure.. Comment on the role of other partners (donors, NGOs, enterprises, etc.). Assess the effectiveness of co-financing arrangements and of donor coordination, if applicable. The project is not co-financed by the other donors, but it enjoys the collaboration of the World Bank within the framework of its project (PRTCG) concerning transparency in public finance and the French Co-operation project regarding the PIP. These two partners have maintained close collaboration ties with consultants within the framework of the PAGE project. The Frenc Co-operation project complements the action of the DGP within PAGE. These two donors took PAGE into account in designing their projects.. Harmonization. State whether the Bank made explicit efforts to harmonize instruments, systems and/or approaches with the other partners: Although there is no formal donor harmonization framework in Congo, consultation with development partners during supervision missions helped develop complementarity in approaches. However, the Bank was absent from several meetings of development partners involved in reform and institutional building programmes. The setting up of the Kinshasa Regional Office should help strengthen such coordination. 4. For each dimension of project implementation, assess the extent to which the project achieved the following objectives. Provide a brief assessment (up to two sentences) and insert a working score, using the scoring scale provided in Appendix. PROJECT IMPLEMENTATION DIMENSIONS ASSESSMENT Working Score TIMELINESS (a) Extent of project adherence to the original closing date. If the number on the right is: below, score 4 between. and 4, score between 4. and 6, score beyond 6., score Difference in months between original closing date and effective closing date or 98% disbursement rate >6 months Disbursement rate: 7 % (b) Bank enforced: Project placed in category, low environmental impact Environmental Safeguards Fiduciary Requirements Annual audit of the project required on a regular basis BANK PERFORMANCE Conditions and Triggers (c) Bank provided quality supervision in the form of skills mix and practicality of solutions Adherence by the Bank to contracts concluded. Delayed reinforcement ( ) which is however beneficial to the project thanks to orientations in the preparation of work programmes and other documents (d) Bank provided quality management oversight Strengthened supervision and increased audit requirement (Cf. F4c) (e) Borrower complied with: Environmental Safeguards Fiduciary Requirements Environmental impact is a criterion in the selection of projects for the PIP 009/ audit carried out behind schedule in 008; the first reports submitted to ADB are not satisfactory BORROWER PERFORMANCE Conditions and Triggers (f) Borrower was responsive to Bank project supervision findings and recommendations Poor monitoring of contracts with suppliers Delayed implementation of recommendations and proposed solutions (g) Borrower collected and used monitoring information for decision making Very poor collection and use of monitoring data in decision-making by the PIU

8 G. COMPLETION. Is the PCR delivered on a timely basis, in compliance with Bank policy? Date of 98% disbursement rate (or closing date, if applicable) Date PCR was sent to pcr@afdb.org Differen ce in months WORKING SCORE (auto-calculated) if the difference is 6 months or less, a 4 is scored. If the difference is 6. or more, a is scored 6 4 Briefly describe the PCR process. Describe the Borrower s and co-financers involvement in producing the document. Highlight any major differences of opinion concerning the assessments made in the PCR. Describe the team composition and confirm whether an exhaustive site visit was undertaken. Mention any major collaboration from other development partners. State the extent of field office involvement in producing the report. Indicate whether comments from peer reviewers were received on time (provide names and positions of peer reviewers). [50 words maximum] The project completion report was prepared on the basis of documents available at the Bank s Temporary Relocation Agency in Tunis and surveys conducted on the ground during a mission to Brazzaville from 8 to 9 March 009. The mission comprised Mr D. Marini, Procurement Expert at the Regional Office in Democratic Republic of Congo and a Consulting Economist. During its surveys, the mission benefitted, in addition to the contribution of State structures, from the collaboration of development partners represented in Brazzaville, in particular the World Bank, French Co-operation and UNDP, organizations involved in the operations being implemented and mentioned in Section B. The final audit required by the Bank after the end of the project on December 008 which had to take its observations into account in the annual accounts is still not available. According to the Borrower, related works are expected to begin in April. H. LESSONS LEARNED Summarize key lessons for the Bank and the Borrower suggested by the project s outcomes. [00 words maximum. Any additional narrative about implementation should be placed in Appendix 6: Project Narrative] Conclusion: The implementation of the project, which was adversely affected by the weaknesses of the PIU, was not satisfactory; it spread over a period twice longer than envisaged. This situation which is not specific to PAGE and affects all projects in Congo is due to inadequate capacity in a post-conflict country that remained for nearly a decade without intervention by the Bank and most donors. However, despite these unfavourable factors, the project outputs measured by some indicators and enjoying synergy with other similar ongoing operations and macroeconomic policies were positive. The main lessons that can be drawn from the project implementation include: (i) the need to build capacity in procurement; (ii) the need to improve the quality of leadership in projects and to strengthen supervision missions qualitatively and quantitatively; (iii) the need to integrate our interventions with other donors within a more general framework and to strengthen harmonization, for example joint implementation units. The main recommendations to the Government and the Bank are as follows: To the Government: (i) ensure that management personnel trained by the project are maintained in their jobs; (ii) promote accountability; To the Bank: ensure better quality at entry of projects and better I. I. RATINGS SUMMARY All working scores and ratings are auto-generated by the computer from the relevant section in the PCR. CRITERIA PROJECT OUTCOME BANK PERFORMANCE SUB-CRITERIA Achievement of outputs Achievement of outcomes Timeliness OVERALL PROJECT OUTCOME SCORE Design and Readiness Project objectives are relevant to country development priorities. Project objectives could in principle be achieved with the project inputs and in the expected time frame. Project objectives are consistent with the Bank s country or regional strategy Project objectives are consistent with the overall priorities of the Bank The log. frame presents a logical causal chain for achieving the project development objectives. The log. frame expresses objectives and outcomes in a way that is measurable and quantifiable. The log. frame states the risks and key assumptions. Project complexity is matched with country capacity and political commitment. Programme design includes adequate risk analysis Procurement, financial management, monitoring systems and/or other processes are based on those already in use by government and/or other partners. Responsibilities for project implementation were clearly defined. Documents for implementation (specification, design, procurement documents, etc.) were ready during assessment. Monitoring indicators and monitoring plan were agreed upon. Baseline data collection was completed or underway. DESIGN AND READINESS SUB-SCORE Supervision: Bank enforced: Environmental Safeguards Fiduciary Requirements Covenants and triggers Bank provided quality supervision in the form of skills mix and practicality of solutions. Bank provided quality management oversight. PCR was delivered on time WORKING SCORE 4 SUPERVISION SUB-SCORE OVERALL BANK PERFORMANCE SCORE

9 Design and Readiness Responsibilities for project implementation were clearly defined Documents for implementation (specification, design, procurement documents, etc.) were ready during assessment. Monitoring indicators and monitoring plan were agreed upon; baseline data collection was completed o underway. DESIGN AND READINESS SUB-SCORE Implementation BORROWER PERFORMANCEBorrower complied with: Environmental Safeguards Fiduciary Requirements Conditions and triggers Borrower was responsive to Bank supervision findings and recommendations. Borrower collected and used monitoring information for decision-making. IMPLEMENTATION SUB-SCORE OVERALL BORROWER PERFORMANCE SCORE J. PROCESSING STAGE SIGNATURE AND COMMENTS DATE Sector Manager Clearance Mrs. Kanga, Sector Manager OSGE. Regional Director Clearance Mr. J.M. Gharbi, Director ORCE Sector Director Approval Mr. G. Negatu, Director OSGE