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Cedre Local Group Meeting

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Cedre Local Group Meeting CEDRE LOCAL GROUP MEETING May 18, 2020 Grand Serail, Beirut, Lebanon AGENDA Remarks by H.E. the Prime Minister Remarks by H.E. the Deputy Prime Minister Remarks by H.E. the Ambassador of France Remarks by H.E. the French Inter-Ministerial Delegate for the Mediterranean CEDRE Update Electricity Sector Update Anti-Corruption Strategy Update Open Discussion CEDRE UPDATE GoL Development Framework CEDRE Follow-Up Mechanism CIP & Sectoral Reforms Structural Reforms Productive Sectors GoL DEVELOPMENT PLANNING FRAMEWORK | TOOLS Today’s meeting complements ongoing discussions on the government’s reform and development priorities; with a specific focus on CEDRE commitments COVID Financial Reform Infrastructure & Governance Response Utilities CEDRE CEDRE GoL Economic Reform Plan (CIP & Sectoral Reforms) Cabinet Policy Statement UPCOMING MEETING TODAY’S FOCUS TODAY’S FOCUS Productive Social Policies Environment GoL COVID-19 Sectors Development Response Plan; MoSA Plan MoI, MoA, & MoT Plans National Social Solidarity Program (NSSP) MoE Plan UN & Partners Emergency Social Safety Net Program (ESSN) Appeal CEDRE - Lebanon Economic Social Protection Policy CEDRE Vision MoL Plan Waste Management Strategy UPCOMING MEETING COVERED EARLIER COVERED EARLIER COVERED EARLIER CEDRE FRAMEWORK What follows shall cover updates and next steps across all CEDRE focus areas: the follow-up mechanism, CIP project reprioritization and sectoral reforms, structural reforms, and productive sectors Follow-up Mechanism Structural Reforms Set-up of a project management secretariat and implementation of a monitoring and tracking system at Fighting Fiscal Capital Market the Project Management Unit in the PM office. Corruption Governance Reforms Follow-up mechanisms activated & tracking system set up Public Digital Doing Business CIP & Sectoral Reforms Procurement Transformation Environment Public Sector Transparency in Electricity Water Judicial Reforms Modernization Oil & Gas Solid Waste Reforms Underway; Telecom Fiscal Reforms updated; within the context of the Economic Reform Plan Tourism & Productive Sectors Wastewater Transport Industry Development and implementation of the Lebanon Economic CIP reprioritization currently underway; Vision (McKinsey Plan) Sectoral Reforms underway Plans presented under the GoL 3-Yr. Development Priorities CEDRE UPDATE GoL Development Framework CEDRE Follow-Up Mechanism CIP & Sectoral Reforms Structural Reforms Productive Sectors FOLLOW-UP MECHANISM | OVERVIEW 1 The GoL is activating the CEDRE follow-up mechanism, previously agreed upon between the GoLand donors, in order to push forward on its commitments Local Group Inter-Ministerial Committee GoL-Donor Group oversees Strategic Group Coordinates cross- government progress at the local level GoL-Donor Group oversees implementation First meeting held today progress at the capital level Dedicated Monitoring Website Monitors progress across both projects and reforms and tracks funding FOLLOW-UP MECHANISM | INTER-MINISTERIAL COMMITTEE 1 In order to ensure adequate cross-government implementation of both projects and reforms, the GoL has established an inter-ministerial committee, whose secretariat is positioned within the Prime Minister’s Office MEMBERSHIP MODUS OPERANDI Prime Minster Technical secretariat, positioned at the PMO to provide Deputy Prime Minister implementation coordination and progress tracking support; secretariat shall also support the local group by Minister of Finance organizing & following-up on meetings, and coordinating Minister of Economy and Trade with donors, civil society, & private sector Minister of Industry Minister of Environment Decree issued by CoMROLEXXXXX Minister of Public Works Coordinate and track implementation of reforms and project implementation Manage the reform tracking database Additional ministries & institutions might be mobilized as relevant, on a per need basis Oversee the project and funding tracking platform FOLLOW-UP MECHANISM | LOCAL GROUP 1 Today’s meeting is the first for the local group, which shall meet on a quarterly basis to discuss project and reforms progress MEMBERSHIP MODUS OPERANDI PRESIDENCY Quarterly Meetings Co-chaired by the PM & Ambassador of France Supported by the Inter-ministerial Committee’s technical secretariat The government commits to organize regular meetings with private MEMBERS sector & civil society representatives, as well as relevant parliamentary AFESD EBRD EIB committees, and adopt a participatory approach throughout. IDB UNRCO World Bank An int’l audit firm shall be retained for non-MDB funded projects to ensure transparent & efficient procurement & implementation. EU France Germany Public audit bodies shall be activated in parallel. Italy Kuwait Netherlands Qatar Saudi Arabia Spain ROLE United Kingdom United States of America Oversee project implementation progress and associated sectoral reforms, oversee structural reforms; flag challenges Follow up on donor funding disbursement for CIP projects PRIVATE SECTOR & CIVIL SOCIETY REPRESENTATION Identify capacity-building needs FOLLOW-UP MECHANISM | STRATEGIC GROUP 1 The Government aims at holding the first strategic group meeting by Q4 2020, and shall shortly proceed with the preparation of its first progress report MEMBERSHIP MODUS OPERANDI AFESD Arab Monetary Fund Asian DB Annual Meetings, co-chaired by GoL & host capital EBRD EIB IFC Meetings held based on regular reports jointly prepared by the IMF IDB UNRCO GoL, WB, IMF and UNRCO World Bank Canada China An int’l audit firm shall be retained for non-MDB funded projects Egypt EU France to ensure transparent & efficient procurement & implementation Germany Italy Japan Kuwait Netherlands Norway ROLE Qatar Saudi Arabia Spain Sweden Switzerland Turkey Focus on structural and sectoral reforms, including those in the UAE UK USA cabinet policy statement Close monitoring of the economic and financial situation PRIVATE SECTOR & CIVIL SOCIETY REPRESENTATION Roadmap setting Follow up on implementation of the McKinsey recommendations FOLLOW-UP MECHANISM | TRACKING PLATFORMS 1 A reform tracking database is currently being managed by the PMO while the project dashboard shall go live by June; information on both dashboards shall be made public on both the PCM website REFORMS PROJECT PUBLIC ONLINE DASHBOARD DASHBOARD INTERFACE Tracks sectoral & structural Tracks project implementation and Provides public access to reforms. Also includes cabinet funding flows information based on both the policy statement commitments. reforms and project dashboard Housed & Operated by the PMO Housed & Operated by the CDR Housed & Operated by the PMO Overseen by the PMO Already activated To go live by June 2020 To go live by Q3 2020 FOLLOW-UP MECHANISM | PROJECT DASHBOARD 1 Funded by the EU and developed through the Technical Assistance Facility Crown Agents with Arabia GIZ; the CDR web reporting tool shall track funding and implementation status of CEDRE projects. CEDRE UPDATE GoL Development Framework CEDRE Follow-Up Mechanism CIP & Sectoral Reforms Structural Reforms Productive Sectors CIP PROJECTS | REPRIORITIZATION CIP projects have been reprioritized and rephased, leading to a total of 138 projects instead of the initial 285, and 12 a total budget of USD 8.233 BN, in lieu of USD 22.94 BN. The CIP now extends over 10 years instead of 12… Prioritization criteria 6 1.946 Electricity 18 5.592 projects USD BN projects USD BN URGENCY Relevance to delivery of key public services 75 1.559 Water & Irrigation 124 4.845 projects USD BN projects USD BN IMPACT ON FISCAL POSITION 25 1.074 expenditure and revenue consolidation Wastewater 82 2.682 projects USD BN projects USD BN IMPACT ON ENABLING ENVIRONMENT 4 1.615 for doing business & job creation Transport 24 7.381 projects USD BN projects USD BN IMPACT ON LIVELIHOODS 11 0.72 Impact on poverty levels Telecom 10 0.7 projects USD BN projects USD BN EASE OF IMPLEMENTATION 15 0.144 Culture & Industry 26 0.339 Probability & feasibility of project implementation projects USD BN projects USD BN OPERATIONAL SUSTAINABILITY Ability to cover operating expenses, and ensure Environment 1 1.4 1 1.4 project USD BN project USD BN sustainable management CIP PROJECTS | REPRIORITIZATION … following this first round of reprioritization, sector level working groups shall be organized to develop sectoral 2 plans including reforms, projects and technical support needed. Plans shall then be raised to the CoM 1 Sectoral Working Group • Discuss projects related to the sector, reprioritize and phase them 2 Council of Ministers • Discuss and provide updates on • Discuss plan sent by Sectoral relevant the sectoral and structural Working Group 3 Parliament reforms • Raise plan to parliament after • Discuss sectoral plan and ratify it • Discuss technical assistance approval through relevant legislation requirements and raise challenges • Develop sector plan including reforms, projects technical assistance requirements and raise it to the CoM CEDRE in the Government’s Reform Plan 12 The CIP is a core part of the Government’s reform plan, which accounts for a minimum of USD 6.4 BN of CEDRE committed financing to be disbursed over a period of 10 years starting in 2021 MINIMUM EXPECTED CEDRE DISBURSEMENTS (in US$ billion, excl. grants) in % of GDP: 0.0% 1.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 0.7 0.7 0.6 0.6 0.7 0.7 0.7 0.7 0.7 0.3 - - 2019E 2020F 2021F 2022F 2023F 2024F 2025F 2026F 2027F 2028F 2029F 2030F The Government’s Financial Recovery Plan takes into account minimum CEDRE funds
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