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African Development Bank Budget Support Programme

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African Development Bank Budget Support Programme AFRICAN DEVELOPMENT BANK BUDGET SUPPORT PROGRAMME IN RESPONSE TO THE COVID-19 CRISIS (PABURC) GABON APPRAISAL REPORT Date: June 2020 Team Leader: P. TOKO, Chief Governance Specialist ECGF Co-Team Leader: M. DIOP-LY, Chief Health and Social Sector Specialist AHHD Programme Team: K. LUMBILA, Chief Economic Governance Officer, Coordinator, Central ECGF Africa Region COGA E. NYAMBAL, Senior Consultant, Governance H. LOHOUES, Lead Economist ECCE A. NSHIMYUMUREMYI, Chief Country Economist, C. MBENG, Chief Finance Specialist PIFD J. BISSAKONOU, Social Development Specialist COCM B. FOKO TAGNE AHHD1 N. THIOYE-DIALLO, Financial Management Coordinator SNFI.2 R. HANNE DIALLO, Procurement Officer SNFI.1 A. SANOGO, Public Health Consultant AHHD2 Appraisal M. KEI BOGUINARD, Chief Legal Counsel PGCL.1 Team O. COLE DE MEL, Consultant AHGC B. OLLAME, Operations Analyst RGDC Sector Director A. COULIBALY ECGF (Governance): Sector Manager W. ABIOLA ECGF Governance: Social Protection-Health B. OMILOLA AHHD2 Sector Director (Human M. PHIRI AHHD Development): Director, Country E. PINTO MOREIRA ECCE Economics: Director-General: S. KONE RDGE Country Manager R. MASUMBUKO COGA A. IBRAHIM, Principal Economist ECGF Peer R. LAKOUE, Principal Economist ECGF Reviewers H. YAMUREMYE, Principal Country Programme Officer RDGC2 Public Disclosure Authorized Public Disclosure AFRICAN DEVELOPMENT BANK BUDGET SUPPORT PROGRAMME IN RESPONSE TO THE COVID-19 CRISIS (PABURC) GABON Public Disclosure A Public Disclosure APPRAISAL REPORT uthorized ECGF/RDGC/AHHD DEPARTMENTS June 2020 Translated Document Table of contents I. INTRODUCTION ........................................................................................................... 1 1.1 Management…………………………………………………………………… 1 1.2 The Programme's overall objective…………………………………………………………. 1 II. CONTEXT ....................................................................................................................... 1 2.1 Economic, Social and Governance Context ........................................................................ 1 III. RATIONALE FOR BANK SUPPORT ......................................................................... 3 3.1 Rationale ............................................................................................................................... 3 3.2 Collaboration with other partners ....................................................................................... 4 3.3 Compliance with eligibility criteria ...................................................................................... 4 IV. PROPOSED PROGRAMME ........................................................................................ 5 4.1 Programme Goal and Objective ........................................................................................... 5 4.2 Proposed Programme ........................................................................................................... 5 4.3 Financing Needs and Mechanisms ..................................................................................... 8 4.4 Programme Beneficiaries ..................................................................................................... 8 4.5 Prior actions ......................................................................................................................... 8 4.6 Policy Dialogue..................................................................................................................... 9 4.7 Impact on Gender, Poverty and Vulnerable Groups. .......................................................... 9 4.8 Impact on Climate Change ................................................................................................ 10 4.9 Environmental and social safeguard measures ................................................................ 10 V. IMPLEMENTATION AND LEGAL DOCUMENTATION ...................................... 10 5.1 Implementation, Monitoring and Evaluation ................................................................... 10 5.2 Identification and Compilation of Emergency Statistics .................................................. 10 5.3 Financial Management, Procurement and Disbursements .............................................. 10 5.4 Legal Documentation ......................................................................................................... 11 5.5 Risk management ............................................................................................................... 12 VI. RECOMMENDATION ................................................................................................. 12 6.1 Management ....................................................................................................................... 12 ANNEX 1: RESULTS-BASED LOGICAL FRAMEWORK ............................................. I ANNEX 2: COUNTRY BRIEF: SOCIAL SECTORS ................ Erreur ! Signet non défini. ANNEX 3: PBO GENERAL AND TECHNICAL CONDITIONS ................................. III CURRENCY EQUIVALENTS (As at May 2020) UA 1 = CFAF 822.46 UA 1 = USD 1.39 UA 1 = EUR 1.25 FISCAL YEAR 1 January – 31 December WEIGHTS AND MEASURES 1 metric tonne = 2 204 pounds (lbs) 1 kilogramme (kg) = 2.2 lbs 1 metre (m) = 3.28 feet (ft.) 1 millimetre (mm) = 0.03937 inches (”) 1 kilometre (km) = 0.62 miles 1 hectare (ha) = 2.471 acres i ACRONYMS AND ABBREVIATIONS Acronyms Description AfDB African Development Bank AGANOR Gabonese Standards Agency APIEX Investment and Export Promotion Agency BEAC Central Bank of Central African States BPW Building and Public works CDE Business Development Centre CEMAC Central African Economic and Monetary Community CFAF BEAC CFA Franc (XAF) CMR Multi-Sector Response Committee CNAMGS National Health Insurance and Social Guarantee Fund COPIL Steering committee CPG Gabonese Employers' Confederation CPI Corruption Perceptions Index CSP Country Strategy Paper DGBFIP Directorate-General of Budget and Public Finance DGEPF Directorate-General of Economy and Fiscal Policy DGPME Directorate of Small and Medium-Sized Enterprises ECCAS Economic Community of Central African States ECGF Governance and Public Financial Management Coordination Office ENEC National Survey on Employment and Unemployment ERP Economic Recovery Plan, 2017-2019 E&S Environmental and social impact studies EUR Euro FED Federal Reserve Bank GAP II Governance Strategic Framework and Action Plan, 2014-2018 GCI Global Competitiveness Index GDP gross domestic product GPN General Procurement Notice Graines Gabonese Agricultural Achievements and Initiatives of Committed Nationals IC Individual consultant IIAG Ibrahim Index of African Governance ILO International Labour Office ISS Bank's Integrated Safeguard System LLC Limited Liability Company MDG Millennium Ddevelopment Ggoals MEDF Ministry of Economy and Finance MIC Middle-income country ii MS Ministry of Health MSME Micro, small and medium-sized enterprises NICT new information and communications technologies NOO no-objection opinion NPPP National public procurement procedures NPS National procurement systems NSBD national standard bidding documents OHADA Organisation for the Harmonisation of Business Law in Africa PABRC Budget Support Programme in Response to the COVID-19 Crisis PIU Project Implementation Unit PP procurement plan PPH Public Procurement Hub PROMO GABON National Agency for the Promotion of Small and Medium-sized Enterprises. PSGE Emerging Gabon Strategic Plan QCBS Quality- and cost-based selection SBD standard bidding documents SC Steering Committee SME small and medium-sized enterprises SMI small and medium-sized industries TFPs Technical and Financial Partners UA Unit of account UNDP United Nations Development Programme UNFPA United Nations Fund for Population Activities USD United States Dollar VSE very small enterprises World Bank WB iii PROGRAMME INFORMATION INSTRUMENT : COVID-19 Crisis Response Budget Support PBO DESIGN MODEL : Single tranche support operation LOAN INFORMATION Client’s information BORROWER : Republic of Gabon EXECUTING AGENCY : Ministry of Economy and Finance (MEF) 2020 Financing Plan Source EUR Amount Instrument (2020) AfDB EUR 100.5 million Loan World Bank EUR 134,7 million Loan IMF EUR 264 million Loan AFD EUR 0 million Loan TOTAL COST EUR 499.2 Million Key AfDB Financing Information Loan Currency: Euro (EUR) Loan Type: Fully flexible loan Tenor: To be determined (up to 25 years) Grace Period: To be determined (up to 8 years) Average Loan Maturity**: To be determined (function of the amortisation profile) Repayments: Consecutive semi-annual payments after the grace period Interest Rate: Base Rate + Funding Cost Margin +Lending Margin + Maturity Premium. This interest rate must be equal to or above zero. Base Rate: Floating (6 Months EURIBOR as determined on 1 February and 1 August) A free option to fix the base rate is available. iv Funding Cost Margin: The Bank funding cost margin as determined on 1 January and 1 July and applied on 1 February and 1 August with the base rate. Lending Margin: 80 basis points (0.8%) Maturity Premium: To be determined: - 0% where the average loan maturity <= 12.75 years - 0.10% where 12.75<the average loan maturity <=15 - 0.20% where the average loan maturity >15 years Front-end Fee: 0.25% of the loan amount payable at or before the date of signature of the loan agreement Commitment Fee: 0.25% per year on the undisbursed amount. Accruing 60 days after signature of the loan agreement and payable on the determined payment dates. Option to convert
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