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DOCUMENT OF THE WORLD BANK FOR OFFICIAL USE ONLY Public Disclosure Authorized Report No: 121718-SN PROGRAM APPRAISAL DOCUMENT ON A PROPOSED CREDIT IN THE AMOUNT OF EURO 93.1 MILLION Public Disclosure Authorized (EQUIVALENT TO US$110 MILLION) TO THE REPUBLIC OF SENEGAL FOR A MUNICIPAL AND AGGLOMERATIONS SUPPORT PROGRAM Public Disclosure Authorized JANUARY 8, 2018 Social, Urban, Rural and Resilience Global Practice Africa Region This document has a restricted distribution and may be used by recipients only in the performance of Public Disclosure Authorized their official duties. Its contents may not otherwise be disclosed without World Bank authorization. CURRENCY EQUIVALENTS (Exchange rate effective: November 30, 2017) Currency Unit = CFAF US$1 = 554 CFAF US$1 = 0.84488003 Euro FISCAL YEAR January 1 – December 31 ABBREVIATIONS AND ACRONYMS ADM Municipal Development Agency (Agence de Développement Municipal) ADS Association of Departments of Senegal (Association des Départements du Sénégal) AFD French Development Agency (Agence Française de Développement) AGETIP Agency for the Execution of Public Works (Agence d’Exécution des Travaux d’Intérêt Public) AMO Assistance in Project Management (Assistance à Maîtrise d’Ouvrage) AMS Association of Senegalese Mayors, (Association des Maires du Sénégal) ARD Regional Development Agency, (Agence Régionale de Développement) ARMP Procurement Regulatory Authority (Autorité de Régulation des Marchés Publics) BCId Decentralized Consolidated Investment Budget (Budget Consolidé d’Investissement décentralisé) BCL Office of LGs, DGID (Bureau des Collectivités locales de la DGID) BFL Local Tax Office (Bureau de Fiscalité Locale) CC Court of Auditors (Cour des Comptes) CFAF CFL Local Fiscal Commissions (Commission de Fiscalité locale) CNDCL National Council for the Development of Local Governments (Conseil National de Développement des Collectivités Locales) CNDT National Commission for the Dialogue of Territories (Commission Nationale du Dialogue des Territoires) CNFAT National Training Center for Territorial Stakeholders (Centre National de Formation des Acteurs Territoriaux) CPF Country Partnership Framework CPS Country Partnership Strategy CTC Continuous Territorial Coaching (Coaching Territorial Continu) DA Designated Account DCFE Cooperation and External Financing Directorate (Direction de la Coopération et du Financement Extérieur) DCL Local Government Directorate (Direction des Collectivités Locales) DCMP General Directorate of Procurement (Direction Centrale des Marchés Publics) DCT Local Government Directorate (Direction des Collectivités Territoriales) DEEC Environment and Classified Establishments Directorate (Direction de l’Environnement et des Etablissements Classés) DGAT General Directorate of Territorial Management (Direction Générale de l’Administration Territorial) ii DGB General Directorate of Budget (Direction Générale du Budget) DGCPT National Treasury (Direction Générale de la Comptabilité Publique et du Trésor) DGID General Tax Directorate (Direction Générale des Impôts et des Domaines) DLI Disbursement Linked Indicator DREEC Regional Division of Environment and Classified Establishments (Division Régionale de l’Environnement et des Etablissements Classés) DSPL National Treasury’s Local Government Department (Direction du Secteur Public Local) ESSA Environmental and Social Systems Assessment FDD Decentralization Allocation Fund (Fonds de Développement de la Décentralisation) FECL Local Government Equipment Funds (Fonds d’Equipement des Collectivités Locales) FM Financial Managemen FY Fiscal Year GDP Gross Domestic Product GFILOC Interconnected Local Government PFM System (logiciel de tenue de la comptabilité des collectivités locales) GRM Grievance Redress Mechanism HCCT High Council of Local Governments (Haut Conseil des Collectivités Territoriales) IAL Internal Inspectorate of Local Administration (Inspection de l’Administration Locale) IDA International Development Association IPF Investment Project Financing IVA Independent Verification Agency LADP Local Authorities Development Project (Programme de Renforcement et d’Equipement des Collectivités Locales, PRECOL) LGs Local Governments LPS Sectoral Policy Letter (Lettre de Politique Sectorielle) LTU Learning and Training Unit LVATF Local Value Added Transfer Fund M&E Monitoring and Evaluation (Suivi-Evaluation) MASP Senegal Municipal and Agglomerations Support Program (Programme d’Appui aux Communes et Agglomérations du Sénégal - PACASEN) MEFP Ministry of Finance and Planning (Ministère de l’Economie, des Finances et du Plan) MGT Ministry of Territorial Gouvernance (Ministère de la Gouvernance Territoriale du Développement et de l’Aménagement du Territoire) MMC Minimum Mandatory Conditions MOD Delegated Project Management (Maîtrise d’Ouvrage Déléguée) NPV Net Present Value OBFILOC Local Governments Finance Online Platform (Observatoire des Finances Locales) OM Operation Manual OTC Operational Technical Committee PAs Performance Assessments PARCA Annual Capacity Development Plans (Plans Annuels de Renforcement de Capacités des Communes et Agglomérations) PDO Program Development Objective PEFA Public Expenditure Framework Assessment PFM Public Financial Management PforR Program for Results PI Performance Indicators PNDL Local Development National Program (Programme National de Développement Local) PROACTSEN Government’s Program for the Second Phase of Implementation of Act III (Programme d’Opérationnalisation de l’Acte III de la décentralisation du Sénégal) PSE Emerging Senegal Plan (Plan Sénégal Emergent) iii SSA Sub-Saharan Africa STC Program’s Strategic Steering Committee (Comité de Pilotage Stratégique) TA Technical Assistance ToR Terms of Reference UDDP Urban Development and Decentralization Project (Projet d’Appui aux Communes, PAC) US$ United States Dollar WB World Bank Regional Vice President: Makhtar Diop Senior Global Practice Director: Ede Jorge Ijjasz-Vasquez Country Director: Louise J. Cord Practice Managers: Meskerem Brhane, Chiara Bronchi Task Team Leaders: Salim Rouhana, Bronwyn Grieve iv Republic of Senegal Municipal and Agglomerations Support Program Table of Contents Page I. STRATEGIC CONTEXT 1 A. Country context 1 B. Sectoral and Institutional Context 2 C. Relationship to the CPF and Rationale for Use of Instrument 5 II. PROGRAM DESCRIPTION 7 A. Government program 7 B. Program Development Objectives and Key Results 8 C. PforR Program Scope 9 D. Disbursement Linked Indicators and Verification Protocols 20 E. Capacity Building and Institutional Strengthening 21 III. PROGRAM IMPLEMENTATION 22 A. Institutional and Implementation Arrangements 22 B. Results Monitoring and Evaluation 25 C. Disbursement arrangements 26 IV. ASSESSMENT SUMMARY 27 A. Technical 27 B. Fiduciary 31 C. Environmental and Social Effects 32 D. Risk Assessment 33 E. Program Action Plan 35 ANNEXES Annex 1: Detailed Program Description 38 Annex 2: Results Framework 59 Annex 3: Disbursement Linked Indicators, Disbursement Arrangements, Verification Protocols 63 Annex 3-1: DLI Verification Protocol Table 65 Annex 3-2: World Bank Disbursement Table 70 Annex 4: Summary Technical Assessment 75 Annex 5: Summary Fiduciary Systems Assessment 89 Annex 6: Summary Environmental and Social Systems Assessment 104 Annex 7: Implementation Support Plan 116 Annex 8: IPF Component – Project Appraisal 119 MAP 124 v PAD DATA SHEET REPUBLIC OF SENEGAL Municipal and Agglomeration Support Program PROGRAM APPRAISAL DOCUMENT . Basic Information Approval Date: January 30, 2018 Sectors: Sub-national government administration (40%); Country Director: Louise J. Cord General water, sanitation and Practice Managers: Meskerem Brhane flood protection (20%); Chiara Bronchi Urban transport (20%); General public Global Practice Vice President: Laura Tuck administration sector (10%); Solid waste management (10%) Program ID: P157097 Themes: Decentralization, city-wide Team Leaders: Salim Rouhana infrastructure and service Bronwyn Grieve delivery, municipal finance, municipal governance and institution building Program Implementation Period: Start Date: January 30, 2018 End Date: July 30, 2023 Expected Financing Effectiveness Date: May 1, 2018 Expected Financing Closing Date: July 30, 2023 . Program Financing Data [ ] Loan [ ] Grant [ ] Other [X] Credit For Loans/Credits/Others (US$M): Total Program Cost: 260 Total Bank 110 Financing: Total Co-financing from AFD: 90 Financing Gap: 0 Financing Source Amount BORROWER/RECIPIENT 60 AFD 90 IBRD/IDA 110 Total 260 vi . Borrower: Republic of Senegal Responsible Ministry: Ministry of Local Governance, Decentralization and Territorial Development Contact: Alassane Saïdou Sow Title: Cabinet Director, in the Ministry of Territorial Governance (MGT) Telephone No.: +221 33 869 4706 Email: [email protected] Responsible Agency: Municipal Development Agency (Agence de Developpement Municipal – ADM) Contact: Cheikh Issa Sall Title: Director General Telephone No.: +221 338 492 710 Email: pacadem@or ange.sn . Expected Disbursements (in US$ Million) Fiscal Year 2018 2019 2020 2021 2022 2023 2024 Annual 29.2 22.5 23.5 21.5 12.3 1.0 0 Cumulative 29.2 51.7 75.2 96.7 109.0 110.0 110.0 . Program Development Objective(s) The Program and Project Development Objectives (PDO) are to: (i) improve local government financing; and (ii) enhance the performance of participating urban local governments in managing public investments. Compliance Policy Does the program depart from the CAS in content or in other Yes [ ] No [X] significant respects? . Does the program
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