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Togo: An IDEV Evaluation of the Bank’s Country Strategy and Program 2004-2013 Summary Report

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From experience to knowledge... From knowledge to action... From action to impact Country Strategy Evaluation

Togo: An IDEV Evaluation of the Bank’s Country Strategy and Program 2004-2013 Summary Report

January 2016 Acknowledgments This summary report was finalized by Tonssour Clément Bansé, Evaluation Officer at the Independent Development Evaluation (IDEV) Department of the African Development Bank, under the supervision of Herimandimby Razafindramanana, Evaluation Team Leader. Rakesh Nangia, Evaluator General, and Samer Hachem, Division Manager, provided general guidance. The evaluation also benefited from the research skills of Eglantine Marcelin, Junior Consultant, and the effective administrative and financial support of Myrtha Diop, Ruby Adzobu-Agyare and Henda Ayari. To ensure the successful conduct of this evaluation exercise, IDEV secured the expert services of a team, led by Jean Marie Wathelet, from the Analysis for Economic Decisions (ADE) firm,. The evaluation team is grateful to the entire of the Bank’s Field Office in Togo (TGFO) for their key role in the organization and conduct of the evaluation under the supervision of the Resident Representative, Serge N’Guessan, as well as their relevant comments on the draft reports. The evaluation benefited from the constant and positive contributions of a reference group and project officers, comprising Frederik Teufel, Carpophore Ntagungira, Adam Amoumoun, Ferdinand Bakoup, Emmanuel Nyirinkwaya, Kokou Amouzouvi, Maimounatou Ndiaye Diop, Koudeidiata Issabré Sow and Achille Charles Toto Same. Internal and external peer reviewers made very useful comments which were taken into account during the finalization of the evaluation. These reviewers include Claudine Voyadzis at the external level and Joseph Mouanda from IDEV. The Independent Development Evaluation (IDEV) expresses its gratitude to the Togolese authorities, particularly the Ministry of the Economy and Finance, civil society organizations and members as well as private sector organizations of Togo that participated in this evaluation exercise. IDEV is fully responsible for the content of this report. The publication of this report was coordinated by David Akana, Communications and Knowledge Management Specialist, IDEV.

© 2016 African Development Bank Group All rights reserved – Published January 2016

Togo: Evaluation of the Bank's Country Strategy and Program 2004-2013 ­– Summary Report IDEV Country Strategy Evaluation, January 2016

Disclaimer Unless expressly stated otherwise, the findings, interpretations and conclusions expressed in this publication are those of the various authors of the publication and are not necessarily those of the Management of the African Development Bank (the “Bank”) and the African Development Fund (the “Fund”), Boards of Directors, Boards of Governors or the they represent. Use of this publication is at the reader’s sole risk. The content of this publication is provided without warranty of any kind, either express or implied, including without limitation warranties of merchantability, fitness for a particular purpose, and non- infringement of third-party rights. The Bank specifically does not make any warranties or representations as to the accuracy, completeness, reliability or current validity of any information contained in the publication. Under no circumstances including, but not limited to, negligence, shall the Bank be liable for any loss, damage, liability or expense incurred or suffered which is claimed to result directly or indirectly from use of this publication or reliance on its content. This publication may contain advice, opinions, and statements of various information and content providers. The Bank does not represent or endorse the accuracy, completeness, reliability or current validity of any advice, opinion, statement or other information provided by any information or content provider or other person or entity. Reliance upon any such opinion, advice, statement, or other information shall also be at the reader’s own risk.

About the AfDB The overarching objective of the African Development Bank Group is to spur sustainable economic development and social progress in its regional member countries (RMCs), thus contributing to poverty reduction. The Bank Group achieves this objective by mobilizing and allocating resources for investment in RMCs and providing policy advice and technical assistance to support development efforts.

About Independent Development Evaluation (IDEV) The mission of Independent Development Evaluation at the AfDB is to enhance the development effectiveness of the institution in its regional member countries through independent and instrumental evaluations and partnerships for sharing knowledge.

Independent Development Evaluation (IDEV) African Development Bank Group Avenue Joseph Anoma 01 BP 1387, 01 Côte d’Ivoire Phone: +225 20 26 20 41 Fax: +225 20 21 31 00 E-mail: [email protected] idev.afdb.org

Design & layout: CRÉON – www.creondesign.net IDEV Layout and Design Task Manager: Felicia Avwontom Contents

Abbreviations and Acronyms v Executive Summary 1 Management Response 9

Introduction 19 Evaluation Objectives and Approach 19 Evaluation Limitations 19

Country Context 21 Geographical and Political Context 21 Economic Performance 21 Togo’s Situation of Fragility, Challenges and Development Opportunities 21

Bank Strategies and Programs during the 2004-2013 Period 27

Findings: Achieving Development Results 31 Relevance 31 Effectiveness 33 Sustainability 41 Policy Formulation, Knowledge and Counselling 42 Environment 44 Summary: Has the Bank Made a Difference in Togo? 44

Findings: Performance-Based Management 47 Efficiency 47 Country Strategy Paper (CSP) Quality and Selectivity 49 Development Results-Based Management 49 Implementation of the Paris Declaration and the Principles for Engagement in Fragile States 50 Complementarity and Synergies 50 Leveraging 51

Findings: Country Performance 53

Conclusions and Recommendations 55

Annexes 59 Contents

List of figures Graph 1 Chronology of Significant Political Events in Togo 22 Graph 2 Theory of Change 28 Graph 3 Distribution of Bank Operations in Togo by Sector 28 Graph 4 Bank Involvement in Fragility Factors 40

List of tables Table 1 Trends in AfDB CPIA Indicators 39 Table 2 Bank Portfolio Performance 48

List of boxes Box 1 Complementary Socio-economic Facilities – What Effectiveness? 35 Abbreviations and Acronyms v

Abbreviations and Acronyms

ADF African Development Fund EBID ECOWAS Bank for Investment and Development AFD French Development Agency ECOWAS Economic Community of West African States AfDB African Development Bank ESMP Environmental and Social Management Plan ARMP Public Procurement Regulatory EU Authority AWF African Water Facility EUR

BOAD West African Development Bank F-PRSP Full-fledged Poverty Reduction Strategy Paper CFAF African Financial Community FSF Fragile States Facility

CODE Committee on Operations and GDP Development Effectiveness of the Bank’s Board of Directors HIPC Heavily-Indebted Poor Country CPIA Country Policy and Institutional Assessment Country Strategy Evaluation HIV/AIDS Human Immunodeficiency Virus CSP Country Strategy Paper / Acquired Immunodeficiency

Syndrome An IDEV DAC Development Assistance Committee I-CSP Interim Country Strategy Paper of the OECD DEG Deutsche Investitions- und IDEV Independent Development Evaluation, Entwicklungsgesellschaft mbH AfDB DGTP General Directorate of Public Works IFC International Finance Corporation

DNCMP National Directorate of Public IGF General Inspectorate of Finance Procurement Control DOAR Bank’s Development Outcomes IMF International Monetary Fund Aggregate Rating vi Togo: Evaluation of the Bank's Country Strategy and Program 2004-2013 – Summary Report

IPR Implementation Status and Outcomes PIA Priority Intervention Area Report I-PRSP Interim Poverty Reduction Strategy PPER Project Performance Evaluation Paper Report LCT Lome Container Terminal PPR Project Performance Review

MDG Millennium Development Goal PROPARCO Economic Cooperation Promotion and Equity Investment Company (plc) MTR Mid-term Review PRS Poverty Reduction Strategy

MTS Medium-term Strategy PRSP Poverty Reduction Strategy Paper

ODA Official Development Assistance RER Results Evaluation Report

OECD Organization for Economic SAFER Road Maintenance Financing Cooperation and Development Corporation OFID OPEC Fund for International SCAPE Accelerated Growth and Employment Development Promotion Strategy OTR Togolese Revenue Authority SEGUSE One-Stop Promotion Company

PAL Lome Port Authority SIGFIP Integrated Public Finance Management System PARCI Institutional Capacity Building SIIEAU Integrated Water Management Support Project System PARG Reforms and Governance Support SRF Special Relief Fund Project PCR Project Completion Report TEU Twenty-foot Equivalent Unit

PD Paris Declaration TFP Technical and Financial Partner

PDN Policy Dialogue Note TGFO Togo Field Office

PEFA Public Expenditure and Financial UA Unit of Account Accountability PER Project Evaluation Report UN Abbreviations and Acronyms vii

UNDP United Nations Development WAEMU West African Economic and Monetary Programme Union UNFPA United Nations Population Fund WB Bank

USD WFP World Programme Country Strategy Evaluation An IDEV Photo ©: Eglantine Marceline objective of promoting growth in Regional Member Countries. Sixty six percent of AfDB of objective of promoting growth in Regional Member Countries. Sixty six percent including the Lome between 2004-2013 went to economic infrastructure Togo support to container terminal. Support to economic infrastructure is central to AfDB’s strategy to achieve its overarching overarching its to achieve strategy AfDB’s to is central infrastructure economic to Support Executive Summary 1

Executive Summary

This document is a summary of the main findings Findings: Achieving Development Outcomes of the evaluation of the African Development Bank’s strategy in Togo during the 2004-2013 period. Relevance The evaluation was initiated and carried out by the Bank’s Independent Development Evaluation (IDEV) The relevance of the Bank’s strategies in Department. Togo has been deemed satisfactory. They are perfectly consistent with Togo’s needs and Regarding methodology, the evaluation focused priorities and the Bank’s overall strategies. A on 18 evaluation issues. A specific approach was good practice is that since the conduct of the adopted under this study to analyse fragility, its Country Strategy Paper (CSP) mid-term review in inclusion in Bank strategies as well as the Bank’s 2014, aspects related to inclusion are now being contribution to changing fragility factors. effectively considered in line with the evolution of the Bank’s guidelines which prioritize inclusive and growth (2013-2022 Ten-Year Strategy). Bank Strategies during the 2004-2013 Hitherto, issues of gender (although identified) Period and youth employment were not taken into account and most operations were concentrated The Bank’s overall objective is to achieve in the capital, Lome. The Bank has implemented economic growth. This strategy is mainly based on its Fragile States Strategy in Togo to address the two pillars, namely economic infrastructure and manifold fragility factors identified. However, no economic governance. integrated approach has been adopted to address Country Strategy Evaluation these factors.

The Bank’s Portfolio in Togo The Bank has been able to adapt its instruments An IDEV and actions in Togo to the country’s changing The Bank’s portfolio in Togo over the 2004-2013 context, firstly, by supporting the resumption period represents UA 195 million. This portfolio, of relations with Togo and attainment of the which comprises 28 projects, is a clear reflection of completion point of the HIPC Initiative and, the implementation of the Bank’s strategy in Togo. secondly, by laying special emphasis on economic The Bank focuses mainly on economic infrastructure factors. (66% of the portfolio) and multi-sector projects (26% of the portfolio) with budget and institutional support operations, and more recently, projects financed Effectiveness by the Fragile States Facility (FSF). The Bank also operates in the energy, water and sanitation, and The effectiveness of the Bank’s operations in financial sectors, and finances various emergency Togo in terms of infrastructure development and operations. economic governance support is satisfactory. 2 Togo: Evaluation of the Bank's Country Strategy and Program 2004-2013 – Summary Report

Concerning road infrastructure, the achievement were created during the construction phase and of outputs is satisfactory. The Bank has opted about 70% during the operation phase. Conversely, for multinational projects with a high integration the objective of increasing the port’s capacity is potential, the most important of which, in terms of largely being achieved (since its commissioning, cost, are ongoing (North-South Lome- the throughput capacity of the Lome Container Corridor and the Lome- Road Rehabilitation Terminal is about 333,000 TEUs per annum, Project). while the Togo Terminal has a throughput capacity of 315,000 TEUs per annum, bringing the total Concerning the only road project that has been capacity to about 650,000 in a full year). This completed, namely the Project to Rehabilitate performance is expected to reach 2.5 million TEUs and Modernize the Port Roundabout-Avepozo in 2017. The current performance will, in principle, Road Section, 10.3 kilometres of roads have been make it possible for the Port Authority to generate rehabilitated and socio-economic infrastructure EUR 1.7 million. constructed. This project has helped to increase the annual average traffic volume by 5% and Concerning the energy sector, the electrical grid improve traffic flow by reducing the time taken to projects linking , , Togo and cover the distance between the Port and the Benin seek to reduce poverty in the ECOWAS region (from border from 1 hour 30 minutes to 17 minutes. The 50% to 25%) by increasing the number of people combined effects of project activities have helped with access to (from 20% to 60%). The to increase investment in real estate (hotels, planned facilities have been successfully completed businesses, shops, industries, etc.) as well as rents (construction of a 71.2-kilometre transmission line by at least 57.7%. Concerning the temporary jobs and installation of equipment) and the impact of to be created during construction works, 69% of infrastructure on the countries concerned has been the targets set have been met. Though related enhanced, particularly in the economic and social facilities have been constructed to meet the needs domains (cost of electricity maintained between expressed by the population, their outcome is 8 and 10 USD cents per kWh, increased electricity moderate. access for the population with a 117% increase in electric power consumption between 2007 and As regards the construction of the Lome 2013). The electric power transmission line helps Container Terminal, given the progress made to reduce the dependence of Togo and Benin on so far and the quality of outputs, the project’s power imports from Côte d’Ivoire and Ghana the objectives can be fully achieved. efficiency of which is limited (losses of 30% to 35%). Effectiveness in the achievement of outputs is limited at this juncture, particularly regarding Concerning the water and sanitation sector, improvement of the Port’s operational effectiveness, the level of achievement of project outputs with cost reduction and job creation. The container respect to the Integrated Water Management terminal’s throughput capacity will be increased System (SIIEAU) is moderately satisfactory. Most from 30 twenty-foot equivalent units (TEUs) per of the deliverables under the four SIIEAU project hour to 120 TEUs per hour. Its present capacity is components have generated genuine outputs about 40 TEUs. corresponding to the forecasts, although some deliverables are still not fully operational. Against The project’s performance in terms of job creation this backdrop, it was not possible to measure the was inadequate as only 75% of the expected jobs expected project outcomes. Executive Summary 3

The performance of economic governance improvement in the latest operations. There operations is satisfactory. The Bank’s assistance are difficulties at various levels: project design has helped to build the country’s institutional and right-sizing in keeping with needs, timing, capacity in the steering of reforms and in specific information channels and coordination. aspects such as budget management, debt management, procurement, domestic resource The assessment of Bank operations by mobilization etc. beneficiaries is positive. They affirm that institutional support projects were instrumental By building the capacity of State entities, the Bank in the functioning and structuring of institutions. has helped to boost the drive to resume cooperation The visibility of the Bank’s contribution to the and, in the same vein, budget support programmes infrastructure sector is more limited and obviously have made it possible to create conditions not well identified. conducive to the resumption of cooperation. Thus, the legal and regulatory framework for public The combined effects of the Bank’s interventions finance management has been strengthened with had an impact on a number of fragility factors, visible outcomes: budget preparation is now more notably support for the resumption of relations inclusive and Finance Acts are now passed on with partners, growth, economic governance time and extra-budgetary expenditure has been and the credibility of the State. However, the eliminated. Similarly, the operationalization of Bank addressed extreme poverty in a very indirect control bodies and the public procurement process manner and inequality and environmental issues has made procurement more transparent, although were tackled marginally. more efforts are needed in this domain.

In addition, the implementation of structural Sustainability reforms in revenue services, resulting in the establishment of the Togolese Revenue Authority The sustainability of the outcomes of Bank

(OTR) in 2012, has helped to progressively mobilize operations in Togo is deemed moderately Country Strategy Evaluation more domestic revenue. The tax ratio thus rose unsatisfactory. Regarding infrastructure, Bank from 15.7% in 2010 to 19.5% in 2013 (against a projects are well designed and are based on relevant Community target of 17%). The estimate for 2014 technical options. However, the sustainability of An IDEV stood at 20.4%. infrastructure is not guaranteed for various reasons (lack of maintenance and overload regarding road Reforms have also helped to improve the business projects, erosion at the Lome Port, and lack of climate in Togo. The country has gained 15 positions ownership of the SIIEAU project). The sustainability in the “Doing Business” ranking, rising of the energy sector project outputs is contingent to 149th (out of 189 countries). Togo is also ranked on Nigeria’s capacity to ensure constant energy as the third most active country in the world in supply which, according to the project performance terms of reforms. However, these improvements evaluation report, seems uncertain. However, the have not yet led to an increase in foreign direct ongoing energy sector reform may minimize this investments (FDIs), implying that more efforts need risk. to be made in this domain. The issue of sustainability regarding governance The Bank’s emergency assistance operations projects rather concerns the continuation of the are not satisfactory, although there was some reforms initiated, the retention of trained staff 4 Togo: Evaluation of the Bank's Country Strategy and Program 2004-2013 – Summary Report

and the maintenance of investments in computer Concerning environmental issues, the hardware, which is currently ensured by private gradual shift towards a more cross-cutting service-providers. In addition, the implementation approach to environment issues has not been of Government reforms slowed down at end-2013, mainstreamed into the Bank’s strategies in which could jeopardize the sustainability of project Togo. The environmental objectives of the national outputs. strategies designed and implemented with Bank support are explicit, but there is a need to improve The entities supported by the Bank under governance in this domain. Fragile-States-Facility (FSF) projects are not prioritized in the national budget, thus compromising their financing at the end of Bank intervention. Findings: Performance-Based Management

Efficiency Policy Formulation Knowledge and Counselling Efficiency is deemed moderately satisfactory. It varied depending on the type of project or criteria The Bank successfully conducted policy dialogue used: (i) proper adherence to schedule regarding in Togo, which produced tangible results. It budget support operations; (ii) very satisfactory actively lobbied other development partners for internal rates of return for the two infrastructure the resumption of cooperation with Togo and the projects but with major time overruns; and attainment of the completion point of the HIPC (iii) inefficiency regarding FSF operations. Initiative. It also successfully engaged in dialogue on sensitive issues such as the establishment of the Implementation delays remain a problem. Togolese Revenue Authority (OTR). Weak national capacity and delays in approving procurement documents, difficulties in releasing Dialogue between the Bank and civil society national counterpart contributions, and delays in organizations and the private sector has improved issuing the Bank’s no objection opinions seem to be in recent years. However, these organizations the main causes of project implementation delays. deplore the absence of direct support and lack of visibility of the Bank’s achievements in Togo. Although the establishment of the Bank’s Country Office has not eliminated all the Concerning analytical works, achievements were causes of delay, it has significantly contributed also made in the country on several key issues to improving the situation. The Bank’s key portfolio particularly: (i) the feasibility study on the reform of performance indicators in Togo are better than the the customs and tax administration; (ii) the feasibility average of countries eligible for ADF resources. study on the establishment of a teachers savings and loan cooperative; (iii) the Transport Sector Strategy; (iv) the Youth Employment Strategy; (v) social Country Strategy Paper (CSP) Quality business; and (vi) the organizational and institutional and Selectivity audit of the education and infrastructure sectors. Overall, quality at entry of the Bank’s strategies The analytical work carried out helped to confirm and operations is satisfactory. However, efforts still the Bank as a trusted partner, and enhance its need to be made to better mainstream the context credibility and image. of fragility into the design of some projects. The Executive Summary 5

Bank was selective in Togo, concentrating more which lacks an integrated approach. FSF projects than 92% of net commitments in the transport and analytical works helped to meet specific infrastructure and economic governance sectors. requirements.

Development-Results-Based Leverage Effect Management Institutional capacity building support projects Bank operations in Togo were marked by a growing encouraged the EU to provide technical assistance consideration of results-based management at to the Ministry of the Economy and Finance the strategic and operational levels. Successive through the IMF. Similarly, the financing of the CSPs and the majority of projects include a logical OTR by the AfDB encouraged the involvement of framework expressing the expected outcomes the IMF, which was very reticent about this reform. in a relatively structured manner, apart from FSF The EU and French Cooperation agencies are also projects. In addition, Bank supervision mechanisms involved. functioned well in Togo, helping to ensure effective strategy and programme implementation. Findings: Country Performance

Implementation of the Paris The country’s performance is considered Declaration and the Principles moderately unsatisfactory. The country was for Engagement in Fragile States proactive, demonstrating its capacity to implement key reforms within a difficult context The use of national public finance management in order to stabilize its economic governance and procurement systems by the Bank remains (e.g. the establishment of the OTR). However, limited due to their fiduciary risks, despite the performance with respect to coordination, support provided by the Bank to improve them. project management and the sustainability of Country Strategy Evaluation results, was moderate. The harmonization and coordination of operations is a challenge in Togo. The national Conclusions and Recommendations An IDEV institutional framework established in 2010 is not yet fully operational. In this context, dialogue Conclusions between partners is held on an informal and bilateral basis. Nevertheless, the opening of a Bank The evaluation identified some major challenges Country Office in Togo has helped to address this concerning the Bank’s future strategy in Togo. challenge. The main weakness identified regarding relevance was the absence of operations focussing directly Complementarity and Synergies on extreme poverty and few operations targeting inequalities, gender and environmental issues. All economic governance operations, institutional During the conduct of the evaluation, the changes and human capacity building programmes and the in the Bank’s guidelines, prioritizing inclusive and budget support programme are closely articulated. green growth had only been partly considered. This is not the case in the infrastructure sector Though regional disparities were properly identified 6 Togo: Evaluation of the Bank's Country Strategy and Program 2004-2013 – Summary Report

in dialogue notes and strategies, they have not Redirecting infrastructure investments to the been mainstreamed into the strategies of the Bank, creation of agricultural value chains may help most of whose operations are concentrated in the to enhance economic diversification potential, capital, Lome. while contributing to reducing inequalities by operating in a high growth sector which employs Though the overall effectiveness of the Bank’s 79% of the poor in Togo. Similarly, the sustainable operations is satisfactory, emergency assistance tapping of natural resources may become the operations were fraught with difficulties at various guideline for future strategies by prioritizing levels: design and sizing with respect to needs, green infrastructure. The potential to develop timing, information channels and coordination. mineral resources can be supported by targeted Excessive delays affected the quality of outputs and private sector operations as well as by specifically the achievement of objectives. redirecting investments into infrastructure. The Bank should carry out a series of analytical The sustainability of operations is a cause works to better select investment options with for concern at several levels. Generally, the high growth potential and impact on poverty and sustainability of infrastructure is not guaranteed. inequalities. Lastly, given the ineffectiveness of The issue of sustainability regarding governance its emergency assistance operations, the Bank rather concerns the continuation of the reforms should review the use of this method of action. initiated, the retention of trained staff and the maintenance of computer hardware investments. Improve the use and monitoring of analytical works

The policy dialogue momentum, which enabled The evaluation demonstrated the potential offered international re-engagement in Togo, has been by analytical works for building and sharing dying down lately, crystallizing, for example, knowledge, strengthening policy dialogue and into discussions on the credibility of the 2013 enhancing the Bank’s image. Analytical works budget. This trend is reflected in the absence should be considered as a tool in its own right, of a programme with the IMF and difficulties in alongside other methods of intervention used by mobilizing budget support and initiating dialogue the Bank. Concretely, this implies that they should: on reforms. (1) be better mainstreamed into intervention strategies, while maintaining some flexibility; Lastly, implementation delays are a setback. The (2) be validated based on the systematic analysis poor quality at entry of some operations, delays in of opportunities; (3) have adequate resources for the issuance of the Bank’s no-objection opinion, their implementation; and (4) be monitored and weak capacity of public administrative entities and evaluated. delays in the approval of procurement documents at the National Directorate of Public Procurement More specifically, the following study topics Control cause project implementation delays. could, for example, be explored during strategy design, as stated in the first recommendation: Recommendations exclusion and insecurity dynamics in rural areas, environmental issues in agricultural and Make a significant shift in the next inclusive and food security policies, integrated economic green growth strategy by seizing opportunities development niches in the agricultural sector, in sectors where the Bank has a comparative terms and conditions for transport sector advantage. development (in the sub-region). Executive Summary 7

Reviving policy dialogue by focussing on a few key system more efficient and reduce delays. The subjects Bank could provide direct support to build the capacity of public works and civil engineering The Bank plays a prominent role in policy dialogue enterprises. As the leader of transport sector by virtue of its “trusted partner” status. Thus, partners, it could encourage the authorities to it should take the initiative to revive the reform ensure the strict control of overloading. process and improve the coordination of activities between the authorities and development partners. ❙❙ Concerning economic and financial governance, This dialogue could specifically focus on the the Bank could encourage the Administration to following points: define a clear and attractive career plan for the staff of the Ministry of Economy and Finance, ❙❙ the continuation of public finance management particularly the computer specialists responsible reforms with special emphasis on debt for the maintenance and development of the sustainability; Integrated Public Finance Management System which is the most integrated system in the ❙❙ the sustainability of investments at the strategic WAEMU zone. and sector levels; Specific analytical works on sustainability should ❙❙ the effective implementation and functioning of help to strengthen dialogue and to promote coordination mechanisms; and operations. The topics concern, for example, road maintenance, the sustainability of capacity ❙❙ the mobilization of resources for the building activities, and environmental risks related implementation of more inclusive policies. to Port activities.

Make sustainability a strategic issue Strengthen results orientation and the assessment of strategies

Besides policy dialogue, sustainability should be Country Strategy Evaluation carefully analysed to provide sustainable solutions The report has highlighted the difficulty of within the framework of the Bank’s programme. assessing the contribution of operations to The options to be explored are as follows: strategic objectives. This is a key aspect in An IDEV transforming the CSP into a more operational tool. ❙❙ Concerning road maintenance, the Bank could This involves defining short- and long-term strategy provide technical and financial support for the and project objectives. One of the methods could identification of innovative sources of financing be to systematically use the various theories of in order to reduce SAFER’s fiscal deficit, while change developed by sector to define a common continuing to provide support for the reform framework for strategy formulation, implementation of the DNCMP to make the procurement and ex-post evaluation. Photo ©: Eglantine Marceline

Photo ©: Jean Pierre Muimana Kalala The combined effects of project activities have helped to increase investment in real estate estate investment in real helped to increase The combined effects of project activities have at least 57.7%. by as well as rents etc.) industries, shops, businesses, (hotels, About ten KMs of the regional road between Abidjan and Lagos (Avépozo Traffic Circle-Port) Circle-Port) Traffic Abidjan and Lagos (Avépozo road between About ten KMs of the regional the annual increase to project has helped This AfDB funding. thanks to rehabilitated was cover taken to reducing the time by flow traffic by 5% and improve volume traffic average from 1 hour 30 minutes to 17 minutes. the distance between the Port and the Benin border Management Response 9

Management Response

Management welcomes the evaluation findings of the Independent Development Evaluation Department (IDEV) which focused on Bank Group assistance to Togo over the 2004-2013 period and its contribution to the country's development. Overall, Management agrees with the conclusions of the report. The report acknowledges the effectiveness and relevance of Bank interventions in Togo during this period. However, the report stresses the need for the Bank to henceforth: (i) make a decisive turn towards inclusive growth and green growth, seizing the opportunities where the Bank has an advantage; (ii) ensure a better use and monitoring of analytical work, (iii) re-launch the political dialogue, structuring it around a limited number of important subjects; (iv) make sustainability a strategic concern; and (v) reinforce the focus on results and the evaluability of strategies. These recommendations will be taken into account when preparing the Bank’s new assistance strategy for Togo (2016-2020) and the various resulting operations.

Introduction remaining aligned with the Bank's overall strategies. Management notes the conclusion that aspects The evaluation focused on three Country Strategy related to inclusion were not always mentioned, but Papers (CSPs): 1999-2001, 2009-2010 and are beginning to be effectively taken into account. 2011-2015. The evaluation also analyzed several Management shares the report's finding on the belated dialogue notes given the absence of country strategies consideration of gender and youth employment over a long period of the socio-political crisis in the issues and the fact that most of the interventions on country from 1990 to 2005. The evaluation was governance were concentrated in the capital, Lomé. conducted using a methodological approach that However, it should be noted that the CSP midterm Country Strategy Evaluation presents results based on relevance, effectiveness, review conducted in 2014 proposed new programmes efficiency, and sustainability. The analysis focused on to correct certain strategic inadequacies, particularly the preparation of CSPs, their implementation, their those aimed at addressing the challenges posed by An IDEV impact and consideration of sector and cross-cutting gender and youth employment with indicators and issues. The report includes recommendations on achievable targets. Regarding the issue of spatial the Bank's strategic orientations and positioning in inclusion and concentration of operations in the future interventions in the country. capital, ongoing dialogue on the Bank's new strategy in Togo intends to correct this situation by focusing on pro-poor and rural sectors in order to raise the level of Relevance the farming population that are the poorest.

Management has taken note of the findings of the report produced by IDEV, which considers that "the Effectiveness relevance of the Bank's strategies in Togo is deemed satisfactory." Management is satisfied that the country The effectiveness of Bank interventions over the strategies and dialogue notes over the past decade 2004-2013 period was deemed satisfactory were consistent with Togo's needs and priorities, while particularly in two areas, namely infrastructure 10 Togo: Evaluation of the Bank's Country Strategy and Program 2004-2013 – Summary Report

development and governance support, which Management has taken note that some projects, dominated the Bank's operations over the period. such as the integrated water information system Regarding infrastructure, Management takes note of (SIIEAU) recorded moderately satisfactory results. the conclusions of the IDEV report which considers Management has already requested the sector that the achievement of outputs was satisfactory. departments and the Bank's Office in Togo to At the same time, the report welcomes the fact maintain dialogue with the Togolese authorities to that the Bank made the right choices in terms of ensure the quality at entry for projects. multinational projects with high integration potential including roads on corridors along the coast and Regarding Governance, Management noted with those leading to countries of the hinterland. For satisfaction that the Bank has helped to build the example, it is encouraging to note that thanks to country's institutional capacity in the conduct of the Bank, travel time reduced from 1h 30 minutes reforms in fiscal management, procurement and (2009) to 17 minutes (2014) on 10 km of coastal domestic resource mobilization. Management road. This Bank project facilitated traffic for trucks has also noted with satisfaction that the Bank exiting Lomé Port and going to coastal countries, has been and remains leader in the conduct as well as countries in the hinterland. Management of the 2nd generation reform which helped to is pleased to note that infrastructure projects have establish the Togolese Revenue Authority in 2012. knock-on effects on the growth of investment (hotels, Management is pleased to note that the tax ratio shops, stores, industries, etc.). to GDP increased from 15.7% in 2010 to 19.5% in 2013 and that Togo was among the 10 countries Management also appreciates the fact that the that made the most progress according to 2015 evaluation report highlights the Bank's contribution Doing Business report by gaining 15 spots in its to the construction in Lomé of the largest container ranking. terminal in the West African region and its effects in terms of modernization of port services, job creation Management welcomes the production of analytical and tax revenue. work and knowledge sharing achieved by the Bank in Togo during the period under evaluation. This has Furthermore, Management shares the concern enabled the Bank to strengthen its image in policy raised in the report regarding the impact of major dialogue withconcrete results on sensitive subjects. port projects on coastal erosion. The Bank has The Bank will make every effort to consolidate its already commissioned a study financed by the Global position as a knowledge production institution in Togo. Environment Facility (GEF) of which the findings will be available in March 2016 to assess the level of Management has taken note of the poor performance coastal resilience so as to propose actions to be of its emergency assistance operations in Togo, but taken to protect the coast. welcomes the improvements of the last two years. The lessons learned from the first experiences will allow Management has also taken note that efforts should the Bank to pay more attention in the future to the be made to address the issues of electricity access design of projects, the duration of their management, and prices. Management would like to indicate that and coordination with the other stakeholders. ongoing dialogue in the country provides that the Bank's future strategy in Togo retain the improvement Generally, beneficiaries have positively appreciated of energy access as the 2nd priority focus after the Bank's interventions in the areas of governance in order to improve the living conditions and economic infrastructure. Management welcomes of the population. the combined effects of the Bank's interventions Management Response 11

which helped Togo to emerge from a situation of meeting the challenges that need to be overcome fragility and engage in a development process with a to avoid accumulated delays that undermine the GDP growth rate that has exceeded 5% since 2012. quality of achievements and goals, especially for certain infrastructure and emergency aid Management will take appropriate measures to projects. Management will explore the possibility of continue to make growth green and shared. The strengthening the Bank's country office in accordance plan is to use the 2016-2020 Country Strategy with the Bank's action plan on decentralization given to tackle challenges related to extreme poverty, that close project monitoring always allows for inequality and environmental protection. significant reduction in implementation delays.

Efficiency Sustainability

The efficiency of Bank assistance was deemed The Bank notes that sustainability of outcomes moderately satisfactory overall. The positive points of the Bank's assistance is deemed moderately noted are: (i) proper compliance with the budget unsatisfactory overall. The evaluation report support schedule; (ii) very satisfactory internal acknowledges that sustainability of infrastructure, rate of return for the two infrastructure projects. which lies primarily with the Government, is a major Among the negative points, Management noted: challenge, partly because of weak national human (i) significant delays in the implementation schedule and financial resources devoted to this purpose. of infrastructure projects, and (ii) unsatisfactory efficiency of Transition Support Facility (TSF) The report considers in particular that sustainability interventions, but with progress following the of infrastructure is not ensured for various reasons opening of the Bank's Office in Togo in 2012. (lack of maintenance and overloading in road Management also noted IDEV recognition that the projects, erosion at the Lomé Port and lack of establishment of the Bank's field office helped to ownership of the Bank-financed project to set up reduce project implementation delays, especially an integrated water information system). Country Strategy Evaluation with the acceleration of “no objection” procedures. It is significant to note the increase in the disbursement The report also questions the sustainability of the rate of public sector projects from 9% in January outcomes of electricity projects confronted with the An IDEV 2011 to 45% in June 2012 subsequent to the uncertainty of Nigeria's ability to ensure a constant opening of the Bank's office in Togo. supply of electricity. The Bank, in its dialogue with the country's authorities, is already stressing on Several actions have been taken to reduce project the need to preserve quality at entry of projects, implementation delays including: (i) reinforcement as well as on the urgency for the Government to of the national public procurement agency (DNCMP) initiate far-reaching reforms of its energy sector. To in the approval of procurement files, and (ii) the this end, the Government proposes to organize a planning capacity of Ministries in charge of Finance national energy sector forum in 2016 to agree on and Infrastructure. reforms to be implemented, in consensus with all stakeholders. Management welcomes the performance of Togo's key portfolio indicators deemed to be significantly As regards governance, Management notes above the average of the Bank’s ADF countries. the concern mentioned in the IDEV report on At the same time, Management is committed to maintaining the reforms initiated, keeping trained 12 Togo: Evaluation of the Bank's Country Strategy and Program 2004-2013 – Summary Report

staff, and maintaining the IT investments that of comprehensive basic data in the country on the greatly benefited from Bank support. At the same environment and the need to conduct studies and time, the report recognizes that the computerized specialized analyses to better guide and define public finance system in Togo is the most integrated its future strategies. Specifically, Management in the WAEMU area. Currently, the AfDB, European has noted that Togo's coastal area and the Union and the Regional Technical Assistance infrastructure established there, including that Center (AFRITAC) have combined their efforts financed by the Bank, face the risk of erosion. to help ensure the maintenance, improvement Already, an ongoing study conducted by the and sustainability of the integrated computerized Bank and financed by the Global Environment system of Togo's public financial management. Facility (GEF) on enhancing the climate resilience of infrastructure in coastal areas in Togo will be The Country Portfolio Performance Improvement published during the 2nd quarter of 2016. The Bank Action Plan (CPPIP 2015) provides for strong plans to implement a coastal erosion protection involvement of Government structures right from project in 2016 as part of the 2nd rehabilitation the project identification stage to ensure the phase of the road linking the capital Lomé to the ownership of interventions. However, Management Benin border. notes the observation made on the weaknesses of public administration bodies in charge of project Gender: Management acknowledges IDEV's implementation, especially to ensure continuity of findings which consider that the Bank's strategies benefits generated by the Bank's interventions in and interventions have not always factored in the medium and long terms. gender issues. The report considers that gender inequality is well identified in the CSPs as an The Bank will continue to support the strengthening important issue in Togo, but that the Bank does not of project implementation units within Ministries in its strategies plan specific actions in this regard. instead of creating parallel project management However, the report which covers a period of ten units. years notes a positive development over the past five years. In addition, the Bank will encourage the Government to organize awareness sessions for infrastructure To that end, in 2011, the Bank financed a capacity projects so as to boost ownership of the structures building project for the Ministry of Women's built under the projects. The development of Advancement. Since 2013, the Bank has been transport strategy financed by the Bank as well as supporting Togolese women who were victims of fire measures taken in the area of road maintenance outbreak in the two major markets of the country. and overload control were intended to build They are receiving substantial support from the institutional capacity. Bank in terms of financing for the reconstruction of the markets, as well as human and financial capacity building. In addition, a project approved Cross-cutting Areas in 2015 aims to strengthen economic inclusion and promote employment for youths and women Environment: Management takes note of the IDEV through entrepreneurial capacity building and evaluation which considers that country strategies inclusive financing. However, Togo does not yet are gradually taking into account environmental have gender strategy. The Bank will support the concerns, but still without targeted indicators. To Government to update its policy and developing its this end, Management acknowledges the absence strategy on gender equality. Management Response 13

Fragility: Management has noted with satisfaction reduced significantly from 2.2 days in February that the Bank's strategies in Togo were well 2015 to 1.2 days in June 2015. The Bank is also designed to act on previously identified factors of satisfied that road sector interventions focused fragility. Management shares the evaluation that the on regional trunk roads and significantly reduced combined effects of Bank interventions acted on a travel time and costs for products in transit. number of factors of fragility, in particular: support for the resumption of relations with partners, growth, support for economic governance and State credibility. Management of Bank Assistance Management welcomes the substantial addition of the TSF funds to the country's performance-based Management welcomes the observation made allocations to better tackle the various challenges by the evaluation report on the Bank's active role related to the country's fragility and poverty. in policy dialogue with stakeholders at strategic and sector levels. Management agrees with the The TSF funds helped to alleviate the country's debt evaluation with regard to the challenges posed by under the HIPC Initiative and finance infrastructure, the need to ensure harmonization and coordination governance and economic inclusion projects mainly of interventions by development partners. in favor of women and youths. The results achieved by operations financed by the Transition Support However, Management appreciates the existence of Facility (TSF) funds have been highly appreciated by several collaborative initiatives between the Bank the Government. Management takes due note of the and Togo's other technical and financial partners fact that the Bank intervened belatedly to combat around specific activities (joint review, co-financing) extreme poverty and inequalities and the need in in line with the Paris Declaration. Management also future to increasingly link fragility and inclusion. appreciates the actions taken by the Bank's Togo office as part of advisory support, coordination Interventions under Togo's new Country Strategy of activities with technical and financial partners, Paper (2016-2020) will be better targeted, building and permanent dialogue with national authorities. on the findings of an ongoing analysis of Togo's It is highly appreciated that dialogue on sensitive Country Strategy Evaluation fragility conducted by the Transition Support topics and advice on innovative reforms first built Department (ORTS). on analytical work provided for or not in the CSP. However, Management notes with satisfaction that An IDEV Regional Integration: IDEV's evaluation report the Bank analytical work had a positive impact in acknowledges that the Bank's strategies in terms of image and support for dialogue. Togo were consistent with regional priorities and strategies, and clearly demonstrates the Bank's Management acknowledges the finding on the contribution to accelerating Togo's economic lack of linkages between analytical work and CSP integration in the ECOWAS area. The Lomé port, objectives. Analytical work often lacks monitoring financed by the Bank in 2011 through its private to produce tangible results. Management also sector window, has become the region's main takes note of the delay in the completion of the transit and transshipment hub for both the coastal Public Expenditure and Financial Accountability countries and those of the hinterland. review (PEFA) in 2013. The lack of this review limits the assessment of the Bank support in Moreover, it emerged from the report that as a result the management public Finance. Nevertheless, of the modernization of the Lomé port, customs Management welcomed the fact that the analysis is declarations and invoicing processing times ongoing and is conducted by the Bank jointly with 14 Togo: Evaluation of the Bank's Country Strategy and Program 2004-2013 – Summary Report

the European Union and the World Bank. Its results fiduciary risks entailed, despite substantial support will be available by end March 2016. from the Bank. In this regard, one of the pillars proposed for the Bank's new country strategy in The Bank was the Government's preferred Togo for the 2016-2020 period is the strengthening interlocutor in the international community during of financial, sector and local governance. The the establishment of the Togolese Revenue Bank will work with other partners in the future Authority. This coordination and facilitation role to ensure better alignment of national systems within the community of technical and financial with international norms and standards. The partners in the tax administration reform will be Bank will also work towards making more formal continued during the next CSP (2016-2020). the national institutional mechanism put in place in 2010 to organize dialogue between partners Despite this progress, Management has taken and the Government in order to better ensure note that the public financial management and complementarity between the Bank's programmes procurement system remains limited due to the and those of other partners.

Management Action Record

Management agrees with the findings of IDEV's evaluation report. The key lessons and recommendations of the evaluation will be taken into account when preparing the Bank's new assistance strategy for Togo (2016-2020), which will be presented to the Board in march 2016 and all the operations that will be implemented within this framework.

Recommendation Management Response Recommendation 1: Shift focus significantly in the next strategy towards inclusive and green growth by leveraging the opportunities offered by the sectors where the Bank has an advantage. The Bank has a comparative advantage, Agreed – The key objective of Togo's Country Strategy Paper (2016-2020) as in particular in the area of : (i) creation of proposed so far has a greater impact on the well-being and living conditions of agricultural value chains ; (ii) sustainable the population. The new strategy will undertake actions to structurally transform exploitation of mineral resources by high-potential and job-creating productive sectors, such as the agricultural sector. the private sector; and (iii) options with It will also seek to improve the living conditions of the population through energy higher impact on the reduction of poverty production, water availability and local governance. Thus, the first pillar of the CSP and inequalities. under preparation (2016-2020) focuses on the development of inclusive growth and agribusiness competitiveness poles. Agribusiness poles will be developed through an integrated approach focusing on: ❙❙ Support for agricultural processing ❙❙ Development of clean energy, ❙❙ Support for for the production of to boost agricultural development of the country. Turning towards inclusive growth and green growth as recommended by IDEV will be also considered in the design and implementation of each operation arising from the Bank strategy in Togo (2016-2020). Management Response 15

Recommendation Management Response Recommendation 2: Ensure better utilization and improved monitoring of analytical works. These analytical works should be Agreed – This recommendation will be taken into account during preparation of the integrated into the intervention strategies Country Strategy Paper (2016-2020) the proposed pillars of which have already been with financing sources, a specific outlined. validation process and be subject to The findings of the two ongoing studies will be taken into account when preparing the new monitoring and evaluation. The analytical CSP (2016-2020). The two studies will be published during the 1st half of 2016. The first works will focus particularly on: (i) the focuses on strengthening the climate resilience of infrastructure in coastal areas and the dynamics of exclusion and insecurity in second on the analysis of fragility in Togo. rural areas, (ii) environmental challenges in agricultural and food security policies, Three new studies were already commissioned by the Government during the CSP (iii) integrated economic development (2011-2015) completion mission. These include: (i) the study on equalization of niches in the agricultural sector, and oil prices, (ii) feasibility study for Phase II of the e-government project for the digitization (iv) transport development mechanisms. of data and administrative procedures of the State in Togo, and (iii) study for the use of biometric SIM cards to facilitate identification within the framework of inclusive financing. As recommended by the evaluation mission, these three new studies commissioned by the Government will be integrated into the country strategy, specifying the resources necessary for their implementation, the procedure for their adoption and monitoring of their impact. Also, direct links will be established between the topics of analytical work, the need to improve the impact of the Bank's operations and the major challenges facing the country. Management acknowledges IDEV proposals for studies on themes of inclusion, environment, agriculture and transport. All the above mentioned studies will be discussed to ensure their programming during the preparation of the new DSP (2016-2020). Recommendation 3: Resume policy dialogue with focus on a small number of critical subjects. The dialogue could focus on: (i) debt Agreed – This recommendation is already being discussed with the Government as part sustainability, (ii) sustainability of preparation of the Country Strategy Paper (2016-2020). As recommended by IDEV, the of investments, (iii) coordination Bank status of "trusted partner" will be preserved. This leadership will be materialized mechanisms, and (iv) resource by taking initiatives in dialogue on reforms and coordination between government and mobilization for more inclusive policies. partners until appropriate institutional mechanism is operational. As regards point (i) on public debt, the Bank and the Government will continue to discuss ways and means of sparing the country from a higher risk of public debt accumulation. The level of the public debt, which was 46% of GDP in 2012, rose to 58% of GDP in 2015 and could reach

62% in 2018, reflecting the continued investment in public infrastructure. The quality of Country Strategy Evaluation analysis and dialogue on public debt management should help speed up negotiations with the IMF for a new reform programme which could not be concluded since 2013. The absence of a programme with the IMF does not afford the Togolese Government access to budgetary support programmes and resources of the ADB window. An IDEV As regards point (ii) on the sustainability of investments, the Bank will strengthen its dialogue at two levels: infrastructure and governance, as specified under Recommendation 4 below on sustainability. As regards point (iii) on coordination, Management agrees with the evaluation mission's recommendation on the need to update the institutional consultation mechanism, which was established in 2010. Even though isolated initiatives by partners have been able to make up for the absence of a formal consultation framework, the Bank will encourage the Government to operationalize the institutional development policies monitoring and evaluation management mechanism (DIPD) of the Accelerated Growth and Employment Promotion Strategy (SCAPE, 2013-2017). Regarding point (iv) which recommends dialogue on resource mobilization with an inclusive approach, the Bank is already engaged in talks with the Government to influence the current trend of the Togolese Revenue Authority mobilizing 97% of tax resources in the capital. The Bank will use its leadership in financing and tax administration dialogue to spur the country to embark on the fiscal and financial decentralization process. The second pillar proposed for CSP (2016-2020) focuses on financial, sector and local governance. 16 Togo: Evaluation of the Bank's Country Strategy and Program 2004-2013 – Summary Report

Recommendation Management Response Recommendation 4: Make sustainability a strategic issue Beyond the policy dialogue, the issue Agreed – This recommendation will be taken into account when preparing the new of sustainability must be a subject of Country Strategy Paper (2016-2020). Management intends to support the Government's rigorous analysis to provide sustainable efforts towards sustainability of outcomes through actions at two levels: infrastructure solutions over the Bank's program. Some and governance. options to explore are at the level of: The findings of the ongoing study on strengthening the climate resilience of infrastructure i) infrastructure and ii) governance. in coastal areas will help to establish responsibilities with respect to rising sea waters and determine mechanisms for coping with them. In addition, the strategic plan on transport infrastructure, which is being adopted, will provide a roadmap on dialogue with the Government and partners on issues relating to lack of maintenance and vehicle overload on roads, as well as on actions to be taken to address these challenges to sustainability of infrastructure. The next CSP (2016-2020) will encourage the Government to adopt indicators and targets that will help to monitor the progress made to ensure sustainability of investments in general including maintenance of infrastructures financed by the Autonomous Road Maintenance Financing Company (SAFER). The latter was created in 2012 and is funded by fuel taxes and road tolls. This will also imply agreeing on the publication of statistics on the systematic weighing of trucks at the exit of Lomé Port. The sustainability issue will be addressed in a comprehensive manner beyond the maintenance challenges of project achievements. This issue will cover all phases of a project from its inception and shall be subject to a permanent dialogue in the country between the Bank, the government and other partners. The Bank will also discuss with the Government the actions to be taken to ensure ownership and proper use of infrastructure acquired under the Integrated Water Resources Information System Project, which was closed since 2015. Regarding financial governance, the Integrated Public Finance Management System (SIGFIP) has been satisfactorily established, integrating the entire expenditure chain. Already, once each quarter, the Bank meets with the Government, European Union, IMF and AFRITAC to encourage the Government to define an action plan in the medium term to take over any ultimate need for maintenance and development of SIGFIP. Recommendation 5: Strengthen the results focus and evaluability of strategies Beyond the policy dialogue, the issue Agreed – This recommendation will be taken into account when preparing the of sustainability must be a subject of Country Strategy Paper (2016-2020). Every output, outcome and results indicators rigorous analysis to provide sustainable and targets of the new Country Strategy will be defined as clearly as possible solutions over the Bank's program. Some following relevant standards. All precautions will be taken for links to be established options to explore are at the level of: between the indicators and targets of the country strategy and the resulting i) infrastructure and ii) governance. operations.

Jean pierre Muimana Kalala Muimana pierre Jean ©: Photo enrollment from262 students in2010-11to6292014-15. and was notbeingused, theBankmadeitpossible tomore thandoubleschool By re-building and cleaning up the Baguida Primary School, andcleaninguptheBaguidaPrimary which hadbeenflooded

An IDEV Country Strategy Evaluation Photo ©:

Jean Pierre Muimana Kalala

Women in Baguida Market designated to serve the ten villages in Baguida canton. IDEV's evaluation found that AfDB's strategies and interventions have not always factored in gender issues. Introduction 19

Introduction1

Evaluation Objectives and Approach operations. Site visits provided an opportunity to meet final project beneficiaries (mainly concerning This evaluation report covers the Bank’s strategies, infrastructure). operations and policy dialogue activities implemented in Togo using all the relevant As provided for in the methodology, a workshop was financing instruments over the 2004-2013 organized with stakeholders at the end of the field period. This evaluation, which was initiated and mission to exchange views on the initial findings. carried out by IDEV, is also consistent with the It helped to validate or qualify some analyses and overall evaluation of the outcomes of the Bank’s deepen certain aspects such as fragility. development activities carried out at the behest of the Committee on Operations and Development Based on the cross-analysis of the lessons learnt Effectiveness (CODE) of the Bank’s Board of from these multiple sources (triangulation), 10 project Directors. outcomes evaluation reports were prepared and sector and strategic analyses were carried out at country The evaluation process focuses on two main level, containing answers to evaluation questions, themes: (i) the achievement of development conclusions and the recommendations of this report. outcomes; and (ii) the management of the Bank’s performance-based operations. Evaluation Limitations The technical report and this summary report, which contain answers to evaluation questions, are the result In carrying out this essentially results-based Country Strategy Evaluation of a multidisciplinary approach combining technical evaluation, difficulties were encountered in obtaining and evaluative expertise and based on various specific data in the two key thrust areas (public qualitative and quantitative information sources. finance and infrastructure) and in implementing An IDEV emergency assistance activities. Thus, the individual and group interviews conducted at various levels helped to put the literature review Regarding public finance, where the main outcome and the processing of quantitative data into indicators were public expenditure and financial perspective. In addition, four visits were conducted accountability (PEFA) indicators, the main constraint to construction sites with concrete realizations faced was lack of a recent PEFA evaluation (the (road section and related facilities, the Port latest dates back to 2009). Terminal, the Integrated Water Management System and the Lome temporary market). The main constraint faced in the infrastructure Discussions were held with about one hundred domain was that 4 of the 5 sector projects (Port, actors from the Togolese Government (at the Lome-Ouagadougou Corridor, Lome-Cotonou central and local levels), the private sector, NGOs Corridor, and SIIEAU) were still being implemented or other development partners. A large fraction of at the time of the evaluation. Thus, many expected the actors met are the direct beneficiaries of AfDB outputs were not visible at this stage. The absence 20 Togo: Evaluation of the Bank's Country Strategy and Program 2004-2013 – Summary Report

of key stakeholders and detailed implementation where its collaboration with the Government involves reports were the main constraints on emergency other partners. However, the evaluation team tried assistance. Lastly, it was very difficult to assess to inform many outcome indicators using similar the level of the Bank’s contribution to achievement indicators and diverse data sources to strengthen of the country’s strategic objectives in a context assessment.

Burkina Faso

Benin

TOGO

Ghana Nigeria

Lome

Bight of Benin

Togo is one of the smallest African countries, with an area of 56,785 km and an estimated population of 7 million, of which sixty percent is 25 years old or younger. Country Context 21

Country Context

Geographical and Political Context investments and agricultural production performance. The economy is still dominated by the primary Togo is one of the smallest countries in Africa with sector which accounts 51% of GDP, of which a surface area of 56 785 square kilometres (see 46% for agriculture, followed by the tertiary sector map in Annex 6). Its population, which is estimated (32%) and secondary sector (17%) sectors. at more than 7 million (World Bank, 2014), is very young, with 60% aged less than 25 years. Togo is Public debt, which represented 41.4% of GDP in the 5th most urbanized country in the sub-region, 2012 (IMF), is expected to increase to an average with an urbanization rate of 38.5%. However, this of 62% of GDP over the 2015-2018 period, in urbanization is very unbalanced and concentrated keeping with the public infrastructure investment in the capital, Lome, which accounts for 70% of the policy. In August 2015, the IMF recommended that urban population2. the “fiscal stance needs to be gradually adjusted to keep debt stable and ensure long-term external The landmarks in Togo’s recent political history stability”. can be summarized as follows: (i) serious socio-political crisis (1990-2005) and withdrawal of the international community; (ii) return of the Togo’s Situation of Fragility, Challenges international community to the country from and Development Opportunities 2008; (iii) controlled strikes and political protests (2008-2015); (iv) revitalization of political parties The fragility issue is an essential yardstick for

(2012-2015) and organization of two presidential assessing AfDB’s engagement in Togo. In fact, Country Strategy Evaluation elections (2010 and 2015) in a relatively peaceful the context of Togo in 2004 was marked by social atmosphere, but whose results were not mutually reinforcing political, social and recognized by the opposition; and (v) failure to economic fragility. A protracted democratic deficit An IDEV organize local elections in 25 years. These aspects and human rights violations3 resulted in: as well as trends in international community and AfDB engagement are summarized in Graph 1 on i. international sanctions (1994-2005) and the next page. the suspension or limitation of cooperation (1993-2002), low growth, limited public resources, poor public services4 and Economic Performance widespread extreme poverty;

Togo’s economy during the evaluation period ii. social and spatial inequalities, identified by the (2004-2013) improved slightly with a 3.5% average AfDB in its 2005 Dialogue Note; annual real GDP growth rate (AfDB). The AfDB estimates GDP growth at 5.6% and economic growth iii. all these factors caused social and political at about 5.5% during the 2015-2018 period. This tension which in turn jeopardized growth and growth is mainly driven by transport infrastructure development. 22 Togo: Evaluation of the Bank's Country Strategy and Program 2004-2013 – Summary Report

Graph 1: Chronology of Significant Political Events in Togo

2004–2013 EVALUATION PERIOD

September 2006 Union Feb. 1994 April 2005 Government Opposition wins Presidential elections. begins its legislative elections Violence mandate

Oct.1992 People vote on the TOGO EVENTS TOGO Constitution. Multi-party Dec. 2002 April 2004 Oct. 2007 system; Unilateral 22 governments August 2006 Satisfactory violence and Constitutional succeed one General Political legistlative protests changes another Agreement elections

2003 2004 2005 2006 2007 2008

2005 2007 2008 Paris Declaration OECD 10 HIPC Launch principles for (2 years) engagement 2008 Resumption of

INVOLVEMENT cooperation with INTERNATIONAL INTERNATIONAL the IMF

CSP 1999-2001 2001 CDP 2005 CDP 2006 2008 Priority intervention Sanctions for Debt Strategy to Political context and Strategy for sectors: social sector Arrears strengthen dialogue non-application of CDP enhanced and transport for international 2005 engagement in reengagement and Emphasis on i) dialogue fragile states 2004 access to HIPC with the government DB EVENTS

f through institutional and agreement with A Post-conflict support, support to development partners Country Facility finalize the PRSP, and (clear arrears, financial donor coordination cooperation) and FSF Fragile ii) capacity building States Facility

CSP Country strategy paper HIPC Heavily Indebted Poor Countries CVJR Truth, Justice and Reconciliation CDP Country dialogue paper FSF Fragile States Facility Committee Country Context 23

2004–2013 EVALUATION PERIOD

May 2009 March 2010 CVJR takes Presidential elections. April 2012 July 2013 April 2015 office to support Beginnings of a CVJR hands in President's party wins Presidential elections. reconciliation crisis of confidence its first report legislative elections Incumbent reelected

2009 2010 2011 2012 2013 2014 2015

Nov. 2010 2011 Country Strategy Evaluation HIPC Completion New Deal Point Reached (2 years) An IDEV

I-CSP 2009-2010 2012 2014 CSP 2011-15 Access to FSF resources FSF evaluation Conclusions of In the context of the (ODA 2008) Goal: High-level Panel return of international mitigate fragility and on Fragile States development partners, accompany HIPC new partnership completion. Improve focused on i) developing management of economic national and regional policy (governance economic infrastructure, and capacities) and and ii) promoting good Growth (infrastructure governance rehabilitation) 24 Togo: Evaluation of the Bank's Country Strategy and Program 2004-2013 – Summary Report

The consequences of the democratic deficit (failure in 2011. The public sector has difficulty in to organize local elections), human rights violations, performing its social function and there are still and social (gender) and spatial (urban – rural many challenges to be met. In fact, the inequalities and regional) inequalities, owing to their severity in Togo are substantial and manifest themselves (suspension of cooperation and limited public in various ways. The Gini Index – which measures resources) or protracted crisis, in turn became income inequalities – dropped from 0.344 in fragility factors (low growth, limited public services, 2006 to 0.393 in 2013. In 2014, only 3% of the low credibility of the State, and extreme poverty). rural population had access to basic sanitation and 45% to an improved water source. In 2011, A post-crisis scenario gradually unfolded between the youth unemployment rate was 8% and the 2004 and 2015 with an improvement in democratic underemployment rate was 21%. governance and the human rights situation. However, besides addressing the crisis, it is crucial ❙❙ Marked inequalities also exist between to tackle the lingering causes of fragility which are, regions, notably with wide disparities between and often intensify, social inequalities. Togo still Lome and the rest of the country, and between faces major challenges in various domains5: urban and rural areas. Thus, the Maritime Region, which includes the capital, Lome, and ❙❙ Politically: though the last elections were held covers only 11% of the country, collected 98% without any major incident, the political climate of tax revenue and benefited from 86% of the continues to be characterized by a crisis of country’s electrical energy supply in 2014. In confidence between the Government and a addition, the literacy rate, which is 81.5% in significant part of the opposition which refused Lome; is only 32.8% in the Savannah Region. to recognize the results of the last presidential Poverty is mainly concentrated in rural areas election. (79% of the poor live in rural areas and mainly depend on agriculture for their livelihood), ❙❙ Economically: Togo has made significant particularly in the Savannah Region (here, the progress on the economic front. Despite the poverty rate exceeded 90% in 2011). Lastly, progress made, the prospects for sustainable there are considerable gender inequalities growth remain fragile and the business climate though, lately, there has been increased is not conducive to investment. Constraints awareness among the authorities reflected, for include inadequate energy resources with a example, in the abolition of excision in November low electricity access rate (27%), inadequate 2012 and the tabling before of a bill transport and infrastructure, to institute gender parity in elective positions. and the weak capacity of the Administration. In addition, Togo still lacks genuine growth poles in ❙❙ The regional context in 2015 is characterized by its 35 secondary towns. environmental stress, instability and extremism (Boko Haram or the Islamic State) as well as the ❙❙ Legally: the legal system is still fraught with avian influenza outbreak and the (visible or future) problems (corruption, remand system, etc.), consequences of the Ebola epidemic. though progress has been made in terms of the rights to freedom of expression and association. The overall dynamics of fragility and resilience factors, and the loss of faith in the “social contract” ❙❙ Socially: poverty remains a cause for concern between the State and citizens and between social in Togo and affected 58.7% of the population groups suggest a lingering risk of crisis. Thus, Country Context 25

several key actors of the international community ❙❙ Agricultural potential: the development of such as the AfDB, the OECD and the WB continue cash crops and enhancement of the value of to consider Togo as a fragile country. Nevertheless, food crops create economic diversification Togo has a huge potential which can be unlocked to niches, provided value chains as well as the provide opportunities for development: required infrastructure are developed;

❙❙ Regional integration: the Lome Port has become ❙❙ Mineral resources: Togo has a huge phosphate, a key hub for transit and transhipment. It is at , manganese, and mining present the largest deep-sea port in ; potential. Country Strategy Evaluation An IDEV Photo ©: Photo The AfDB estimates GDP growth at 5.6% and economic growth at about 5.5% during the 2015-2018 period in Togo. This growth is mainly driven by transport infrastructure UNDP Africa investments and agricultural production performance. Bank Strategies and Programs during the 2004-2013 Period 27

Bank Strategies and Programs during the 2004-2013 Period

During the 2004-2013 period, four documents In line with these strategic orientations, the Bank’s provided the framework for cooperation between interventions in Togo have been a combination the AfDB and Togo, namely the 2005 and 2006 of operations and policy dialogue sometimes Policy Dialogue Notes as well as the two Country supported by analytical works. Strategy Papers (CSPs) respectively covering the 2009-2010 and 2011-2015 periods. The main Concerning operations, the total volume of orientations (pillars) of these documents can be the Bank’s interventions in Togo amounts to summarized as follows: UA 195 million. These operations concern transport infrastructure and economic governance: Graph 2 below presents an overall simulation of the more than 92% of AfDB net commitments in Togo Bank’s action in Togo. The Bank’s overall objective during this period focused on these two sectors is to achieve economic growth. This strategy hinges (66% for the transport and 26% for the governance on two pillars, namely economic infrastructure and sectors). The Bank is also active in the water and economic governance. sanitation, and financial sectors, and in various emergency assistance operations (Graph 3 below). Road sector operations focus on major regional It is worth noting that besides these portfolio roads, and the construction of the Lome Container operations, the Bank co-financed two multinational Terminal is in line with this same logic of promoting operations in the energy sector involving Togo. The trade and reducing transport costs. The second list of projects in AfDB portfolio in Togo during the Country Strategy Evaluation thrust area seeks to strengthen an economic period of cooperation covered by the evaluation – environment that is conducive to the development 2004-2013 – is appended to this report. of enterprises and growth by improving public An IDEV finance management and introducing reforms in The Bank participated actively in dialogue and growth sectors. aid coordination. It maintained policy dialogue

Strategy Document Pillar 1 Pillar 2 2005 Dialogue Note Strengthening Dialogue 2006 Dialogue Note Dialogue for the Resumption of the Bank’s Institutional Capacity-Building Operations Interim Country Strategy Promotion of Good Governance Economic Infrastructure Rehabilitation Support Paper 2009-2010 Country Strategy Paper Economic Infrastructure Development Good Governance Support 2011-2015 28 Togo: Evaluation of the Bank's Country Strategy and Program 2004-2013 – Summary Report

Graph 2: Theory of Change

IMPACT ASSUMPTION P1 Stimulating strong economic, job-creating growth ASSUMPTION P2

OUTCOMES OUTCOMES Improving of competitiveness of enterprises - Political and social development of trade stability Reduction in Environment is favourable to the Infrastructure is used El. prod. costs development of enterprises Favourable international Access and Reduction in transport costs (attendance, supply) reliability of and regional economic supply context (prices of , ...) All the infrastructure is well articulated and well OUTPUT OUTPUT OUTPUT OUTPUT OUTPUT sized (no bottlenecks) Enterprises identify The terminal opportunities and seize Establish Increase the % is functional Improvement of Improvement them Roads and electricity electrical of roads in good both for public financial of governance networks are maintained interconnections condition transhipment management in the growth in good condition and internal sectors Constructive dialogue market between the economic and social circles and the The terminal is used Government Energy project Construction Policy based Road projects programmes / Reforms of multi-country of terminal modern. GFP growth sectors Government commitment in reforms Financial and non-financialINPUTS (dialogue, expertise...)

Source: IDEV

Graph 3: Distribution of Bank Operations in Togo by Sector

Water and Sanitation Finance 1% 4%

Multi-sector 26%

Emergency assistance 3% Transport 66%

Source: AfDB Statistics Bank Strategies and Programs during the 2004-2013 Period 29

with Togolese authorities at the strategic and EU, China, , the AfDB, the US, Germany and sector levels. Occasionally, it carried out analytical . Collaboration between the Bank and other works to support such dialogue. The evaluation technical and financial partners of Togo is carried mission prepared a non-exhaustive list of the out through Sector Committees and specific analytical works included or not in the CSP (see activities (joint review and co-financing) in the Annex 5). Concerning aid coordination, an analysis spirit of the Paris Declaration. A table of showing carried out using 2013 data shows that Togo’s the distribution of ODA by sector is presented in major partners are BOAD, the UN, the WB, the Annex 4. Country Strategy Evaluation An IDEV Photo ©: Photo

The economy is still dominated by the primary sector which accounts 51% of GDP, of which UNDP Africa 46% for agriculture, followed by the service sector (32%) and manufacturing (17%). Findings: Achieving Development Results 31

Findings: Achieving Development Results

Relevance coordination frameworks at sector and regional levels or lack of analysis of the specialization of other donors in the country. The Bank’s strategies in Togo are perfectly consistent with the country’s needs and Togo’s fragility (political, economic, social and priorities, and its overall strategies to environmental) factors have been properly particularly address fragility factors. identified in the Bank’s strategy documents. This identification of factors is widely shared by other partners. However, these documents do not contain an integrated approach to fragility The two CSPs covering the evaluation factors. Thus, the three pillars specific to fragile period are perfectly consistent with national States were well adapted to the Togolese post- development strategies. They include context crisis context. The first pillar (supplemental support) and needs analyses as well as intervention helped to provide additional financing to meet logics based on such analyses. Under these pressing infrastructure rehabilitation and capacity circumstances, the rationale for AfDB strategic building needs. The second pillar (payment of positioning with respect to cooperation arrears) was used to assist Togo to normalize its frameworks, its comparative advantage, choice relations with international partners and to attain of thrust areas and the definition of objectives the completion point of the HIPC Initiative. The third Country Strategy Evaluation is considered moderately satisfactory. Some pillar (capacity building) was strongly mobilized in gaps have been identified such as the failure Togo (13 projects), indicating a strong need in this to systematically mainstream cooperation and domain after 20 years of crisis. An IDEV

Evaluation Criteria Rating AfDB strategy and analysis of the context of fragility Satisfactory Adapting assistance to changing fragility factors Highly Satisfactory Intervention on fragility factors and resilience building Satisfactory Aligning operations with the Bank’s overall priorities Highly Satisfactory Mainstreaming of new priority objectives: inclusive green growth Moderately Satisfactory Adapting instruments and methods to better address needs Satisfactory Mainstreaming cross-cutting concerns into strategies and operations (gender, youth Moderately Satisfactory employment, and regional disparities) Relevance Satisfactory 32 Togo: Evaluation of the Bank's Country Strategy and Program 2004-2013 – Summary Report

The Bank adapted its action in Togo to the transition to a green economy in the customary developments taking place in the country. In practices of direct and final beneficiaries. the 2006 Dialogue Note, the Bank focused on the payment of arrears and institutional and human The methods of intervention are generally capacity building, which are prerequisites for the tailored to the needs and the specificities resumption of operations by development partners of interventions, particularly the Fragile and the attainment of the completion point of the States Facility (FSF) which represents about HIPC Initiative. Following the attainment of the HIPC 17% of the Bank’s commitments. Similarly, Initiative in 2010, the Bank expanded its activities the Bank was one of the first donors to use to include economic infrastructure and governance the budget support instrument in the context during the CSP 2009-2010 so as to create of fragility in Togo. Concerning emergency conditions conducive to the revival of growth. This projects, a sector in which the Bank has no strategy was continued in the CSP 2011-2015 experience or proven expertise, it has adjusted which hinges on two pillars, namely economic its procedures by delegating implementation to infrastructure development and good governance other international and national agencies such promotion. as the WFP or DGTP.

On the whole, the Bank’s strategies in Togo Although there is still much to be done, an are aligned with its priorities and overall example of good practice is the positive strategies. In fact, its operational priorities measures implemented during the CSP which are listed in the Medium-Term Strategy mid-term review in 2014 in order to make (2008-2012) and the Ten-Year Strategy (2013- the Bank’s strategy more inclusive. Gender 2022) focus on infrastructure development, inequality has been well identified in the CSPs regional integration, private sector development, as a major issue in Togo, but the Bank does not skills and technology development, as well plan to include specific gender-related actions in as governance and accountability. The Bank’s its strategies. The gender dimension has been portfolio in Togo is consistent with these priorities. mainstreamed into project implementation, but it is limited to the identification of specific needs and The Bank has adopted an integrated approach to the assessment of target groups of interventions. sustainable development through the “green and The specific issue of youth employment has not sustainable growth” objectives defined in its new been considered in CSPs. The FSF project, which Ten-Year Strategy 2013-2022. Environmental seeks to promote self-employment, is an exception. concerns are gradually being mainstreamed It focuses on youth employment and has helped to into country strategies in Togo, though in a highlight this issue in national policies. However, non-targeted manner. AfDB operations in the there was a shift during the CSP mid-term review infrastructure sector, which are most capable with the identification of operations targeting the of affecting the environment, generally comply most vulnerable groups, particularly the approval with the obligation to carry out environmental in October 2015 of the Support Project for Youth and social impact assessment. AfDB operations Employability and Integration in Growth Sectors in other sectors, particularly the economic in Togo. Though regional disparities have been governance sector in Togo, do not often seize the identified in national strategies, they are not opportunity to raise awareness and mainstream included in the different strategies of the Bank most the principles of sustainable development and of whose operations focus on the capital, Lome. Findings: Achieving Development Results 33

Effectiveness projections (the rehabilitation of the monument and the public square was added to the construction of the Baguida market and the Overall, the effectiveness of the Bank’s school at Avépozo). operations is satisfactory, indicating the contribution of the operations to promoting According to the project socio-economic impact growth and limiting fragility factors. In addition, assessment report, the following results were the assessment of the operations by beneficiaries recorded: (i) a 5% annual increase in traffic volume is positive. However, the Bank’s emergency (7.9 million vehicles in 2013 against 6.5 million assistance operations are not satisfactory, vehicles in 2009); (ii) significant improvement despite improvements in the last operation. in traffic fluidity between the Lome Port and the Benin border (from 1 hour 30 minutes during the without-project situation to 17 minutes at the end of the project, that is an average of 36 km/h on Economic Infrastructure Rehabilitation the 10.3 kilometres). and Reinforcement Support The combined effects of project actions (the The table above summarizes the analysis of rehabilitated road and related infrastructure) the effectiveness of three completed or almost could, in due course, contribute to improving the completed projects considered in this evaluation. incomes of the population in the project impact These are the Lome Container Terminal area, where the rental value of real property Construction Project, the 10.3 kilometre-long has increased by at least 57.7%. Although (Port Roundabout-Avépozo) stretch of the Abidjan- the number of temporary jobs created during Lagos regional road, and the water sector project project implementation fell short of forecasts (SIIEAU). On the whole, the implementation, quality (550 against 800 expected, that is 69%), there and contribution of these socio-economic has been a real estate bubble at the end of the infrastructure projects to achieving the desired project (hotels, stores, shops, industries, etc.) and Country Strategy Evaluation results are satisfactory. increased trade, which will eventually create jobs and contribute to reducing poverty. The Project to Rehabilitate and Modernize the An IDEV Port Roundabout-Avépozo stretch of the Abidjan- The support of the local population was a key factor Lagos regional road has helped to rehabilitate in the successful implementation of the project. The 10.3 kilometres of road and construct additional technical modification of the project in favour of the socio-economic infrastructure compared with option to build four overpasses so as to reduce traffic

Evaluation of Project Results Infrastructure Governance Effectiveness in producing outputs Satisfactory Satisfactory Effectiveness in achieving outcomes Moderately Satisfactory Satisfactory Unintended outcomes Moderately Satisfactory n/a Effectiveness Satisfactory Satisfactory Photo ©: Photo In response to this evaluation, AfDB management acknowledges the absence of comprehensive basic data in the country on the environment and the need to conduct studies and specialized UNDP Africa analyses to better guide and define its future strategies. Findings: Achieving Development Results 35

congestion and improve flow was an enabling factor Lome-Cotonou corridor, 77.5 kilometres of roads will which enhanced effectiveness. Also, the necessary be rehabilitated in Benin and a juxtaposed checkpoint balance between traffic fluidity and road safety constructed on the border between the two countries (particularly that of pedestrians) was achieved by in order to increase trade between both countries by installing speed bumps at pedestrian crossings. 20%. Regarding the Lome-Ouagadougou corridor, 303 kilometres of roads will be rehabilitated Although related facilities were built to meet the (150 kilometres in Togo and 153 kilometres in needs expressed by the population, their results Burkina) and related facilities constructed to increase are quite different. The construction of the school the annual volume of intra-Community trade in the was a success despite some technical errors, WAEMU zone by 7% and promote integration in the while the market was not operational during the West African sub-region. There has been a long conduct of the evaluation. The interest in the delay in the effective start-up of these projects, construction of a public square seems rather which were approved respectively in 2011 and 2012 limited (see details in Box 1). with a cumulative disbursement rate of 27% as at August 2015. Besides this project which is enhancing the Lome-Cotonou link, the Bank is supporting Judging from the progress made so far and the rehabilitation of the Lome-Cotonou and the quality of outputs, the targets of the Lome Lome-Ouagadougou corridors. Concerning the Container Terminal project can be fully achieved.

Box 1: Complementary Socio-economic Facilities – What Effectiveness? Three complementary socio-economic facilities, which fall under other sectors (education, trade and heritage), were built under the Bank-funded road rehabilitation and modernization project. These facilities were included in the project to ensure the social acceptability of road works during the construction phase and particularly during the infrastructure operation phase involving an increase in traffic and related effects in the area. To avoid organized

resistance by local communities, the AfDB adopted a participatory approach during the identification of community Country Strategy Evaluation needs, and the prioritization and validation of final options: ❙❙By constructing and draining the Baguida Primary School – which had been flooded and unused – AfDB’s

intervention has helped to more than double the enrolment rate (the number of pupils has risen from 262 An IDEV in 2010-2011 to 629 in 2014-2015) and upgrade the school into an examination centre closer to pupils who used to cover a relatively long distance for that purpose. ❙❙The Baguida Market was rebuilt, but it had not yet been commissioned at the time of the evaluation. It should be note that this market is intended to serve the ten villages in Baguida canton whose population is estimated at more than 183 000. The commissioning of this facility depends on voluntary coordination and the completion of some technical adjustments (sewage system, etc.). Another key sociological factor, which should be considered in the ownership of the market, is the symbolic importance that traders attach to the history of sites. ❙❙The rehabilitation and upgrading of a public square along the road section was not included in the project’s initial logical framework. Although all of the works executed meet the needs and expectations of the population, the success of some facilities remains moderate (e.g. the Baguida Market). Furthermore, these facilities, which were built at the request of the population and Government, are an outcome of the opportunity provided by the road infrastructure investment and do not necessarily align with sector policies and priorities (education, trade, heritage, etc.). The risk is the inability to produce sustainable results and, thus, losing all the benefits in terms of social image and acceptability. It should, however, be noted that the Togolese authorities have adopted this integrated approach and are now trying to ensure its systematic implementation through all road projects. 36 Togo: Evaluation of the Bank's Country Strategy and Program 2004-2013 – Summary Report

In fact, during the conduct of the mission, the of entry and invoicing from 2.2 days in February depth of the channel and basin after dredging was 2015 to 1.2 days in June 2015. 18.6 metres, the 1 050 metre-long quay had been completed, the 6 quay cranes and 12 rubber tired The performance of the project in terms of gantry cranes initially planned were operational, job creation is poor as only 75% of jobs were and 30% of the construction work on the created during the construction phase and about 53-hectare container park and parking lot was 70% during the operation phase, in spite of the completed. There are plans to install additional present status of implementation. Lastly, the equipment (quay cranes and rubber-tired gantry expected allocation by the end of the project of cranes). a new customs building within the LCT and the completion of terminal access/exit systems are Efficiency in achieving outputs is limited in the expected to reduce vessel waiting time. light of the present status of implementation, particularly concerning the improvement of the In due course, this platform should enable operational efficiency of the Port, cost reduction shipping companies to deploy their largest and job creation. On the whole, the objective of container vessels to West Africa. Thus, Lome will increasing the port’s capacity is being achieved: offer a transhipment platform for West and Central since its commissioning, the throughput capacity Africa, thanks to its natural deep-sea port. of the Lome Container Terminal (LCT) is about 333,000 TEUs per annum, while the Togo Terminal The key project success factors are: (i) the strong (1st port operator) indicates a throughput capacity commitment of the private partner/concession of 315,000 TEUs per annum, bringing the total holder and other public partners reflected in the capacity to about 650 000 for a full year. This mobilization of substantial financial resources; performance is expected to reach 2.20 million and (ii) the mastery of technical aspects. The only TEUs by 2017.The current performance would, in downside relates to the absence of a coherent principle, make it possible for the Port Authority to comprehensive plan of the port area in which generate EUR 1.7 million6. project facilities should have been constructed.

The operational effectiveness was expected to The implementation rate of the Integrated Water improve, increasing from 30 TEUs per hour to Management System Project (SIIEAU) in the water 120 TEUs per hour, but only about 40 TEUs are and sanitation sector, in terms of physical currently handled per hour. In addition, it should implementation, is moderately satisfactory. be noted that the start-up of the activities of the Most of the deliverables under the four SIIEAU LCT (as well as the Togo Terminal) following its project components have generated genuine recent commissioning has not led to a reduction outputs corresponding to projections, although in freight costs. Competition, the monopoly of some outputs were not yet fully operational at vessel owners over a given terminal, including at the time of the mission7. Against this backdrop, the regional level, are key factors in achieving this the expected project outcomes have not been objective. Moreover, it emerged from discussions fully realized. Although the gauging stations are that at this stage, that the reduction of vessel operational, measuring equipment have not yet waiting time was not effective. However, data from been installed in synoptic stations, although they the One-Stop Trade Promotion Company (SEGUSE) have been supplied. The Protocols on Basic Data indicate that the computerization of processes Sharing to be established by the technical data significantly reduced delays in processing bills services have not yet been prepared, although Findings: Achieving Development Results 37

they are a medium for properly feeding data into imports from Côte d’Ivoire and Ghana, whose SIIEAU. On the other hand, the website is being efficiency is low (losses of 30% to 35%). designed. Thus, the evaluation team could only obtain basic data from the technical services. Project objectives could be achieved in the long Capacity Building and Governance Support run when the system is properly fed, provided that all partners provide and/or use the reliable data of Economic governance support is one of the two the SIIEAU platform. pillars of Bank strategies. It covers budget support (PARG1 and PARG2) and institutional support (PARCI A risk/inhibiting factor for project effectiveness 1 and PARCI 2) operations and FSF projects. Overall, relates particularly to the protocols on the collection, governance support is considered satisfactory centralization and use of the data to be provided based on the operations effectiveness by a complex network of institutional actors whose assessment summary. capacity was not necessarily built by the project. During evaluation, it was not possible to obtain evidence of networking and the establishment of Institutional and Budget Support Programmes sector databases. The absence of a protocol that clearly defines the responsibilities and procedures The outcomes of most operations are satisfactory. for the regular updating and monitoring of data by By building the capacity of State entities technical services in the medium/long term also and supporting the formulation of strategies, constitutes a real risk. PARCI has helped to boost the drive to resume cooperation. For instance, the reorganization The Bank is present in the energy sector in Togo by of the Directorate of Budget has been initiated, co-financing two multinational electrical grid projects computer hardware has been installed, and more linking Nigeria, Benin, Togo and Ghana which were than 530 senior officers (15.5% of them women) the subject of a specific performance assessment. have been trained. This capacity building exercise

The overall objective of these projects is to reduce has made it possible from now on to present a Country Strategy Evaluation poverty in the ECOWAS sub-region (from 50% to unified budget and significantly reduce the time 25%) by increasing the population with access to taken to prepare general account balances. electricity (from 20% to 60%). An IDEV Thanks to the support of PARCI 2, the establishment The planned facilities have been successfully of the Integrated Public Finance Management completed (construction of a 71.2 kilometre System (SIGFIP) by integrating the entire expenditure transmission line and the installation of equipment) chain was satisfactory. The General Inspectorate of and the project performance assessment report Finance (IGF) and the Audit Office received support prepared in July 2015 shows a significance impact in the form of capacity building and equipment of infrastructure on the countries concerned, to enable them to conduct their audit activities particularly in economic and social terms (cost of and prepare the expected reports. Following the electricity maintained between USD 8 cents and establishment of the Public Procurement Regulatory USD 10 cents per kWh, increased electricity access Authority (ARMP) and the National Directorate of for the population with a 117% increase in electric Public Procurement Control (DNCMP) which are power consumption between 2007 and 2013). The fully operational, public procurement procedures electric power transmission line helps to reduce the were completely reorganized, in line with WAEMU dependence of Togo and Benin on electric power directives. 38 Togo: Evaluation of the Bank's Country Strategy and Program 2004-2013 – Summary Report

Beneficiaries confirmed that institutional support operationalization of audit bodies and the public project outputs are essential for the functioning procurement process has enhanced transparency and structuring of institutions, the implementation in contract execution, although much progress is of their activities and design and management of still required in the area. In fact, Togo’s ranking appropriate public policies. on the Transparency International Corruption Perceptions Index has improved steadily over Budget support programmes were implemented the past years up to 2013 (with a spectacular in synergy with PARCI programmes. They first gain of 15 places in the 2012 ranking), before of all helped to create conditions conducive losing 3 places in the 2014 ranking to occupy the to the resumption of cooperation (PARG1) and 126th position. In addition, Bank support helped then contributed to improving public finance Togo to be recognized as an Extractive Industries management and the business climate (PARG2). Transparency Initiative (EITI) compliant country in PARG2 also laid emphasis on improving the May 2013. business climate, particularly by supporting the operationalization of the Business Start-up Structural reforms of revenue services leading to One-Stop-Shop by reducing the time and cost of the establishment of OTR in 2012 and its effective starting a business. operationalization in 2014 gradually helped to mobilize more domestic revenue. The tax pressure Though FSF project implementation ran into some rate thus increased from 15.7% in 2010 to 19.5% difficulties, at least at the start-up phase, virtually in 2013 (against a community objective of 17%). all the expected outcomes, except the organization The estimate for 2014 was 20.4%. of a donor round-table on the financing of the Accelerated Growth and Employment Promotion Togo’s progress in the World Bank’s Doing Strategy (SCAPE), were achieved. In fact, these Business ranking on business climate attests to projects helped to build the capacity of many the reform drive. In fact, the country has moved State entities (the Presidency and ministries), to up 15 places in the ranking and now occupies carry out the strategic and organizational audit of the 149th position (out of 189 countries). Togo six ministries and to prepare policy documents, is also ranked the world’s 3rd most active particularly the full-fledged PRSP and sector country in terms of reforms. The report however steering documents (youth employment). stresses that these efforts must be maintained, and even accelerated, as many other indicators are insufficient, namely business development, Impact of Bank Operations on the Business obtaining building permit, access to electricity, Climate, Economic Governance and Public transfer of ownership, obtaining loans, protecting Finance Management minority investors, tax collection, cross-border trade, execution of contracts and settling cases Bank assistance helped to build institutional of insolvency. capacity and strengthen the legal and regulatory framework as well as financial administration Despite the absence of recent PEFA indicators external and internal audit bodies. The budget to assess overall governance improvement in preparation process is more inclusive and Togo, the impact of operations carried out can budget execution more effective as finance be assessed through trends in some progress laws are now voted at the right time and extra- indicators in these areas (CPIA & Mo Ibrahim budgetary expenditure no longer exists. Also, the Indicators). Findings: Achieving Development Results 39

Table 1 below presents a selection of relevant Impacts of Bank Operations on Fragility Factors CPIA indicators of operation objectives and their trends over the period under review. For greater The Bank addressed a good number of fragility readability, three indicators were taken into factors within its areas of competence, namely: account. The table first shows positive trends over support for the process of re-establishing relations the period, although there has been a slowdown with partners, growth strategy, support for economic since 2013. Particularly remarkable progress was governance and credibility of the State. made between 2007 and 2011. Consequently, the overall level reached is relatively low and The graph below highlights the fragility factors points to the economic governance progress still addressed by the Bank (circled). There is a required. Moreover, the situation has not improved correlation between Bank involvement in a fragility from 2013 to date. Communication between factor and the positive trend in the factor (in green development partners has even become more in the graph). The level of Bank contribution to this difficult. change is assessed in Annex 3.

This trend is confirmed by the discussions that the The Bank, however, addressed extreme mission had with the various stakeholders, with poverty only indirectly and inequalities and the growing concern about increased internal debt environment marginally. The determination to especially and the current account deficit. concentrate its resources led the Bank to exclude the agricultural sector. The Bank did not address Since 2011, the Mo Ibrahim Index, which assesses democratic governance directly, but relied on the quality of governance of African countries other partners such as the EU. each year on the basis of 93 indicators, has ranked Togo 5th among African countries having recorded the highest progress. However, its overall Impacts of Bank Operations on Growth score of 48.4 in 2014 (up by 4 points compared with 2013) is below the average of West African The contribution of the outcomes achieved by Country Strategy Evaluation countries (52.4), which has improved by 2 points. all the projects to Bank objectives in terms Togo’s improved score is the result of the progress of sustainable economic growth stimulation made with respect to the four indicator categories is more difficult to estimate. Based on data An IDEV of the Index, namely: Sustainable Economic published by the Bank, economic activity in Togo Development (+9.5); Human Development (+4.3) has increased at a sustained rate over the past and Participation and Human Rights (+2.5). In years with the end of the crisis in 2009-2010. contrast, the Security and Rule of Law indicator The growth rate stood at around 5.4 % in 2013- category has dropped by 0.3 point. 2014 (it was 4.0% in 2010, 4.9% in 2011 and

Table 1: Trends in AfDB8 CPIA Indicators

ECPI Indicators 2005 2006 2007 2008 2009 2010 2011 2012 2013 Economic Management 2.67 2.67 3 3.33 3.5 3.5 3.67 4 3.67 Debt Management 2 2 2.5 3 3 3 3.5 3.5 3 Public Administration Quality 2 2 2 2 2 2 2 2.75 3.5 40 Togo: Evaluation of the Bank's Country Strategy and Program 2004-2013 – Summary Report

5.9% in 2012). This positive trend is mostly driven growth. In fact, as stated in the above-mentioned by agricultural production, the extension of the report, increased public investments have resulted Lome lnternational Airport and Port as well as the in a sharp rise in the use of the sub-regional capital construction of major road networks with significant market and in the current account deficit, leading Bank contribution. to an unsustainable debt risk.

Growth prospects are considered "positive in the medium term" by AfDB and the IMF, at around Emergency Assistance 5.5% for the period 2015-2018. The outcomes of Bank operations in growth sectors in Togo such In Togo, during the evaluation period, the Bank as port and infrastructure development, and in financed three emergency and humanitarian aid business development and growth reforms lead operations against flu, floods and fire outbreaks to the conclusion that the Bank contributed to in the Lome and Kara markets. These operations to the growth observed. However, attention needs to address emergency situations through delegation be paid to the sustainability of these impacts on to external organizations were not satisfactory. Poor

Graph 4: Bank Involvement in Fragility Factors

Democracy and Human Rights Growth Situation of inequalities Situation

State Situation of extreme poverty credibility

State Public resources Services

Rel. with partners

Socio-political tensions

Fragility - subregion (radicalism, Ebola) Environmental Fragility Findings: Achieving Development Results 41

design and inefficiency explain the weaknesses of economic and financial viability, institutional emergency aid outcomes. sustainability, ownership, environmental and social sustainability levels. The design of emergency operations mainly focuses on disaster consequences. Needs analysis provides Technically, Bank infrastructure projects seem an often detailed inventory of the various types solid and sustainable, revealing relevant technical of needs and problems to be addressed, but options. which remains static and non-prioritized. The rationale for Bank assistance (targeting) is not Regarding economic and financial viability, the systematic and explicit. Bank granted a loan to a private entity under the Lome Container Terminal Project which The definition of and adherence to schedule are is expected, in the long term, to generate major critical and cross-cutting points for emergency an excellent economic and financial viability. operations. Where channels for consultation, Moreover, the rehabilitated Aflao-Sanvée-Condji information sharing and coordination between AfDB road has achieved a very high internal rate of and the other relevant governmental or international return (37.9% achieved, against 29% estimated). partners in the emergency aid implementation chain The financial viability of the SIIEAU project do exist, they face serious difficulties. does not seem to be ensured. At this project implementation completion phase, no measure has been taken with respect to ownership. Sustainability Concerning institutional sustainability of the LCT project, it can be considered at this stage that partnership between the beneficiary LCT and the The sustainability of Bank operations is State of Togo is profitable for both parties and deemed moderately unsatisfactory. It is not should be sustainable. With regard to roads, Bank ensured, especially for infrastructure, owing operations were subject to the establishment of Country Strategy Evaluation to maintenance problems, overloading and, an entity to manage road network maintenance, sometimes, the insufficient consideration of namely SAFER (Société Autonome de Financement environmental issues. de l’Entretien Routier) (Autonomous Road An IDEV Maintenance Financing Company). However, the analysis of the project completion report (PCR) Bank project sustainability is mainly assessed shows that SAFER’s financial viability was not following indicators which identify the technical, ensured. The analyses of successive SAFER

Project Sustainability Evaluation Ratings Infrastructures Governance Technical Solidity Satisfactory Satisfactory Economic and Financial Viability Satisfactory n/a Institutional Sustainability and Capacity Building Unsatisfactory Moderately Satisfactory Ownership and Sustainability of Partnerships Unsatisfactory Unsatisfactory Environmental and Social Sustainability Moderately Satisfactory n/a Sustainability Moderately Unsatisfactory Moderately Unsatisfactory 42 Togo: Evaluation of the Bank's Country Strategy and Program 2004-2013 – Summary Report

balance sheets show that since 2012, only an entities is deemed low, save for some FSF projects. average 25% of SAFER’s needs are covered. Bank-supported entities are not prioritized in the Furthermore, lack of resources is not the only national budget, which raises the issue of their maintenance problem. The lengthy procurement financing at the end of Bank financing. Lastly, processes do not allow for the absorption of emergency assistance ratings are low, especially the limited resources provided on time, and assistance to flood victims, which is logical given overloading is recurrent. Concerning this last point the nature of operations (response to an urgent precisely, the field mission raised the difficulty of need without a sustainability objective). ensuring compliance with WAEMU Rule 14 on axle load. Even before the completion of SIIEAU, there is the issue of the actual ownership of the Policy Formulation, Knowledge project by its beneficiaries (data producers), its and Counselling institutional anchoring and its sustainability.

With respect to environmental and social sustainability, infrastructure projects (LCT & The Bank carried out policy dialogue on road) complied with the obligation to conduct an sensitive issues with concrete results, environmental impact analysis and to implement although such dialogue has been slow compensation measures. However, LCT did not recently. Analytical works contributed to comprise an erosion risk analysis which could, in establishing the Bank’s status as trusted the long run, affect infrastructure sustainability partner. and be a source of conflict with the affected coastal people. Policy dialogue is defined as one of the key For the road project, ownership and the elements of AfDB multi-year strategic plan for sustainability of partnerships for related facilities the period 2003-2007. This document focuses are moderate. Ownership of the school is perfect on the need to intensify policy dialogue with aid as attested to by some electrical repair works beneficiary countries. In Togo, policy dialogue is a carried out by the beneficiaries. In contrast, the very important dimension of the country’s strategy market has not yet been commissioned and papers. owned by users. The level of ownership of SIIEAU by its beneficiaries seems low. The two policy dialogue notes express the determination to play a leading role in the Concerning governance projects, the viability coordination and mobilization of the other donors of governance reinforcement projects entails operating in Togo. In this connection, the Bank the continuation of reforms undertaken, that is: played a very active role in lobbying the other (i) constant political will of the national and local development partners for the resumption of authorities; (ii) maintenance of investments in cooperation and then in the attainment of the computer hardware; and (iii) retaining trained completion point of the HIPC Initiative which is staff in the entities. A slowdown was rightly noted a milestone in the resumption of international in the implementation of Government reforms community commitments. The CSPs which at the end of the period, which is detrimental to followed are geared towards aid effectiveness sustaining the impacts of operations. In addition, (alignment, absorption, monitoring and evaluation, the ownership of projects by the beneficiary etc.). Findings: Achieving Development Results 43

The Bank successfully conducted policy dialogue of the country office. They admit having been with the Togolese authorities leading to concrete consulted during the preparation of the last CSP outcomes on sensitive issues such as the (complete) as well as the preparation of some establishment of the Togolese Revenue Authority. operations. In addition, open door days organized In fact, the Bank played a very active role in by the office provided more information on Bank providing counselling support to the Government, assistance in Togo. Civil society considers these ensuring the quality of studies and official actions insufficient and thinks that the Bank instruments, and in obtaining the support of the should have direct civil society support and other technical and financial partners (TFPs) communicate more on achievements to make its most of which were reticent about this daring actions more visible. and pioneer reform in the WAEMU zone. However, many donors involved in economic and financial governance reforms in Togo deplored the absence Analytical Works of a governance specialist in the AfDB Country Office which negatively impacted dialogue quality Analytical works are not the subject of either and effectiveness in this sector led by AfDB. a specific definition or special monitoring by the Bank. The analytical works provided for are The Bank was also active in providing counselling very relevant to the needs they are supposed to on policy formulation in the transport and energy cover, although in many cases, the linkages with sectors. Generally, the role of the Bank, which CSP objectives are not shown. Many studies has increased with the opening of its permanent provided for have not yet been carried out such representation office in the country, is recognized as PEFA and most studies provided for in the last by development partners and Togolese authorities. CSP mid-term review. The two analytical works planned and carried out have not yet produced concrete outcomes. AfDB Dialogue with the Private Sector and

Civil Society in Togo The feasibility study on the customs and taxation Country Strategy Evaluation administration reform, which was not provided Togolese private sector players positively for, was finally carried out because the Bank appreciate Bank assistance which has helped decided to support the Government of Togo to An IDEV to improve the business climate in Togo. For reform the two revenue services leading to the example, the major private entrepreneurs met establishment of the Togolese Revenue Authority say the public procurement reform enhances (OTR). Furthermore, achievements were recorded transparency in the Togolese public procurements with the country in many other reforms and in which they participate, although there is still crucial challenges, notably: (i) the feasibility need for more progress, especially in the time of a teachers’ savings and loan cooperative; required to settle invoices. In contrast, despite (ii) the transport sector strategy; (iii) the youth the large volume of Bank investment in Togo, they employment strategy; (iv) “social business”; deplore the fact that it does not benefit Togolese and (v) the organizational and institutional audit enterprises much, owing to their low financial and of the education and infrastructure sectors. technical capacity. The analytical works carried out contributed to establishing the Bank’s status as trusted partner The civil society members met underscore and enhancing its credibility, and positively improved dialogue with AfDB since the opening impacted the Bank’s image. 44 Togo: Evaluation of the Bank's Country Strategy and Program 2004-2013 – Summary Report

Environment collaboration with the other partners. At the beginning of the process, the Bank strongly Environmental concerns are gradually being engaged in the resumption of policy dialogue and mainstreamed into country strategies in Togo, the mobilization of appropriate specific instruments though in a non-targeted manner. AfDB operations to create conditions for the re-engagement of the in the infrastructure sector, which are capable of international community in Togo. Capacity building affecting the environment, generally comply with projects such as PARCI or FSF operations have the obligation to carry out environmental and social provided the authorities with the resources to impact assessment. However, the implementation prepare and implement this re-engagement. and monitoring of measures provided for and/or expected impacts may face major obstacles. AfDB Secondly, the quality of partnership between operations in other sectors, particularly the economic the various stakeholders operating in Togo and governance sector in Togo, do not often seize the the Bank gives it the status of "trusted partner" opportunity to raise awareness and mainstream the recognized by all and regularly consulted by the principles of sustainable development and transition Togolese authorities on strategic issues. This to a green economy in the customary practices of partnership was backed by mutual trust even on direct and final beneficiaries. On the other hand, delicate files such as the establishment of OTR, the only operation financed in the water sector flexible Bank adaptation in the implementation does not sufficiently highlight its potential to build of its capacity building operations and Bank the resilience of the population and the environment availability for policy dialogue. and to prevent risks related to extreme natural phenomena. National strategies, the preparation Thirdly, the Bank’s portfolio targeted at and implementation of which are backed by the concentrating on a limited number of operations Bank, have explicit environmental objectives, but has produced significant tangible outcomes. governance in this area needs to be improved. Concerning economic governance, Bank assistance has helped Togo to be among the leading WAEMU countries to be able to transpose Summary: Has the Bank Made into national laws most of the community a Difference in Togo? public finance management directives. These achievements have helped to improve the On the basis of the 2013 ODA data (Annex 4), preparation of the budget and transparency in its the Bank is Togo’s 6th financial partner in terms execution as well as the mobilization of domestic of volume, far behind multilateral partners such resources. Bank operations have also contributed as BOAD, the United Nations and the World Bank, to providing Togo with modern infrastructure and bilateral partners such as the EU and Japan. in the areas of regional roads and electricity However, three factors highlighted in this supply, and to upgrading the capacity of the Lome evaluation help to conclude that the Bank has Port to transform it into the biggest port on the really made a difference in Togo. West African coast since 2014. These projects contribute to the country’s economic growth and Firstly, the Bank played a decisive role in the the enhancement of the country’s resilience to resumption of international cooperation in external shocks. Country Strategy Evaluation An IDEV

Photo ©: Photo Redirecting infrastructure investments to the creation of agricultural value chains may help to enhance economic diversification potential, while contributing to

UNDP Africa reducing inequalities by operating in a high growth sector which employs 79% of the poor in Togo, this evaluation recommends. Photo ©: UNDP Africa Environmental concerns are gradually being mainstreamed into country strategies in Togo, Togo, into countryEnvironmental concerns being mainstreamed gradually in are strategies concludes. IDEV's evaluation manner, though in a non-targeted Findings: Performance-Based Management 47

Findings: Performance-Based Management

In Togo, the Bank has based its actions on performance in a moderately satisfactory manner, with limits to implementation deadlines and the implementation of the Paris Declaration and the principles of engagement in fragile States.

Performance-based Management Assessment Ratings Assessment Efficiency Moderately satisfactory CSP Quality and Selectivity Satisfactory Performance Management Strategy Satisfactory Implementation of the Paris Declaration and the Principles for Engagement in Fragile States Moderately unsatisfactory Complementarity and Synergies Moderately unsatisfactory Leverage Effect Satisfactory Performance-based Management Moderately satisfactory

Efficiency support operations were all completed before Country Strategy Evaluation the stipulated dates and only PARCI1 recorded a slight 3-month time overrun. An IDEV Bank efficiency is considered moderately Many FSF institutional support operations satisfactory. Project implementation delays recorded long delays. In fact, the field mission are the major problems on which the noted that the schedule of activities of the various establishment of a Bank country office has, projects experienced several delays, largely due however, had a positive impact. to complex procedures and delays in obtaining no-objection opinions. In the final analysis, most FSF projects required a double implementation On the whole, late project implementation is the period compared with the prescribed major problem, although the assessment varies implementation period. The other two efficiency depending on the type of project. criteria do not apply to the multisector projects mentioned above. Concerning economic and financial governance, there was overall satisfactory Adherence to the provisional schedule seems to adherence to schedule. The two budget be more problematic for infrastructure projects. 48 Togo: Evaluation of the Bank's Country Strategy and Program 2004-2013 – Summary Report

Project Efficiency Evaluation Infrastructure Governance Adherence to Schedule Unsatisfactory Moderately satisfactory Cost-Benefit Analysis Highly satisfactory n/a Cost-Effectiveness Analysis - n/a Efficiency Moderately satisfactory Moderately satisfactory

The Project to Rehabilitate the Port Roundabout – However, all works are expected to be completed Avépozo Road Section recorded a delay of more at end-2015. There would therefore be a delay of than 16 months due mainly to additional works. about one year (for a stipulated period of 2 years), However, the socio-economic study of the project, which was partially offset by the commissioning which confirmed the PCR data, shows that its of the terminal before the completion of works. internal rate of return was very high (37.9% However, the comparative advantages of the achieved, against the estimated 29%). This is terminal (strategic geographical position, natural mainly due to the significant increase in traffic as draught, wharf length, modern equipment and well as improved impacts of the road, which are presence of a major sector player) give it a strong higher than initially estimated. internal financial rate of return potential.

The Lome Container Terminal project recorded a At the time of the evaluation, the SIIEAU project delay of close to 4 years between the signing of the was behind schedule by more than 44 months concession agreement (December 2008) and the largely due to the reasons mentioned below and start of works (November 2012), owing to several it is not considered as viable in its present state, reasons, namely: (i) the amendment in December especially in terms of financial resources and 2011 of the concession agreement signed in ownership by its beneficiaries. December 2008 between LCT and the Government; (ii) the late conduct of environmental and social On the whole, poor quality at entry of some impact assessments (ESIAs); (iii) long delays in projects, lack of ownership of Bank procedures concluding about 60 construction contracts, etc. by Togolese partners, long delays in approving The initial works schedule ran from 26 November contracts by DNCMP and delays in issuing 2012 to 26 November 2014. The start-up date was no-objection opinions by the Bank seem to be adhered to and the project site was effectively made major factors of the late implementation of the available on 23 October 2014 (according to LCT). various projects.

Table 2: Bank Portfolio Performance

Key performance indicators 2012 2013 2015 (August) Togo Bank Togo Bank Togo Bank Disbursement Rate (%) 45 22.0 23.9 21.0 26.6 - Interval Between Approval and First - 13 7.9 10 4.5 - Disbursement (months) Proportion of Problematic Projects (%) 0 2 0 14 0 -

Source: CPPR - 2012, 2013 and 2015 (Draft); CPIR 2012 & 2013 Findings: Performance-Based Management 49

Nevertheless, the opening of a Bank country Development Results-Based office in Togo in 2012 was a positive element Management recognized by all to improve efficiency, although many decisions are still centralized at the Bank Bank operations in Togo were marked by headquarters. In 2012, a portfolio improvement a growing consideration of results-based action plan was established at the end of the joint management at the strategic and operational review by AfDB, the World Bank and the Togolese levels. authorities. The satisfactory implementation of this action plan (including, for example, close At the strategic level, mention can be made of monitoring and training of players) has helped the quality of CSPs which comprise, for example, to improve some indicators. In fact, it was noted the systematic establishment of a results-based that the disbursement rate of portfolio public framework which explains the overall linkages sector projects increased from 9% in January between the country’s development objectives 2011 to 45% in June 2012 following the opening (PRSP), the problems identified as obstacles to the of the office. This rate stood at 23.9% in 2013 achievement of these objectives, the outcomes against a 21% Bank average, before increasing and outputs expected under the projects financed to 26.6% in August 2015 (draft version of the as leverages for surmounting such obstacles. The combined CSP 2011-2015 and CPPR report). monitoring and evaluation mechanism mainly took The portfolio does not comprise risky projects the form of CSP mid-term reviews conducted in and the average interval between approval and October 2014. Nonetheless, the CSP does not first disbursement reduced from 7.9 months include a results chain description, with appropriate in 2013 (against 10 months for the Bank) to intermediate indicators clearly showing the 4.5 months in 2015. contribution of CSP the achieving the objectives of PRSP/SCAPE.

Country Strategy Paper (CSP) Quality The analysis of the incorporation of performance and Selectivity and results-based management requirements Country Strategy Evaluation is confirmed at theoperational level. Most of Overall, quality at entry of its strategies and the projects have a logical framework (or matrix) operations is satisfactory. However, efforts still which expresses the project target outcomes in a An IDEV need to be made to better mainstream the context of structured manner. This is less so with FSF projects fragility into the design of some projects (particularly (objectives specified in an annex to the Letter of conditions precedent to first disbursement and the Agreement) which have a specific character in the setting of objectives in line with the schedule). The country portfolio. The projects comprise performance Bank was selective in Togo, concentrating more monitoring indicators (impact, outcome, achievement, than 92% of net commitments in the transport indicators, except for FSF projects). Most projects infrastructure and economic governance sectors. which were active during the 2004-2013 evaluation Its operations in the water sector (SIIEAU), which period have a feedback, especially concerning their falls within the socio-economic infrastructure achievements, and even outcomes. sector, is an exception. Although it addresses an urgent need to tackle the persistent degradation The structuring of this feedback has evolved of the country’s capacity to collect basic data on towards the establishment of a link between water, it is not identified as a priority thrust area monitoring and the growing concern for in CSPs. outcomes. Special monitoring and evaluation 50 Togo: Evaluation of the Bank's Country Strategy and Program 2004-2013 – Summary Report

measures were also adopted such as the monitoring fully operational. In this context, dialogue between of environmental and social mitigation measures partners is held on an informal and bilateral basis, under the LCT project or the ex-post evaluation of the each partner conducting dialogue in relation to impact of the road project. However, a shortcoming its own operations. However, the opening of the of the systems established is the absence of a link Togo Country Office has been a favourable factor and synergy between systems and frameworks for for ensuring complementarity between Bank the monitoring and evaluation strategies (CSP) and programmes and those of other partners. special financed operations, which does not facilitate the assessment of the contribution of operations to As such, besides the above-mentioned joint AfDB- strategic objectives. WB review in the transport infrastructure sector where the Bank is leader, the preparation and The Bank has a series of learning mechanisms evaluation mission of the Port Roundabout-Avepozo based on the lessons learned from past experiences. project was coordinated with the collaboration of: (i) The Bank, for example, carried out two portfolio BOAD, IsDB and BIDC which financed the Aflao-Port reviews (one in 2012 carried out jointly with the Roundabout road section; (ii) WB which financed World Bank and another in 2013 incorporated the Aneho-Sanvee Condji road section; and (iii) the into the mid-term review of CSP 2011-2015) French Development Agency (AFD) which financed which present an overview of the performance sanitation projects in Lome. It was the same considered useful in guiding the continuation of with BOAD, BIDC and UNFPA which financed the operations. A portfolio performance improvement Lome-Cinkassee-Ouagadougou trunk road (RN1). plan was prepared during the 2012 review and Moreover, the Bank participated in the consortium its satisfactory implementation has helped to of donors (IFC, FMO, OFID, DEG and PROPARCO), in continuously improve portfolio quality. Moreover, addition to private promoters such as Global Terminal in the two key thrust areas (infrastructure and Limited (GTL) and China Merchants Holding (CMHI) economic governance), the Bank relies on sector which financed the construction of the container competences and knowledge capital acquired in terminal. the two key thrust areas. Lastly, the Bank was able to convince the IMF in 2013 to support the process for the operationalization of Implementation of the Paris Declaration OTR. and the Principles for Engagement in Fragile States Complementarity and Synergies The use of national public finance management and procurement systems by the Bank remains All the 13 FSF projects addressed specific limited due to their fiduciary risks, despite the requests and, as such, were not coherent. In support provided by the Bank to improve them. contrast, concerning economic and financial The continuation of Bank contribution in this sector governance, institutional and human capacity should help to better align national systems with building programmes and the budget support international norms and standards in future. programme are closely articulated. A large number of the 14 expected outputs under PARG 2 are The harmonization and coordination of directly linked to PARCI 2 activities, especially operations is a challenge in Togo. In fact, the training and technical support. Similarly, many institutional mechanism established in 2010 is not PARG 2 impacts are directly linked to PARG and Findings: Performance-Based Management 51

PARCIs complementary interventions. For example, Lastly, analytical works carried out or provided for in the procurement system reform was backed by PARG Bank-prepared strategy papers are generally not in with respect to monitoring indicators and by PARCI, line with its operations. They mostly address random notably through the training programme. It should requests. be noted that in this specific case, this intervention is also complementary with PRMP-WAEMU through which the Bank is supporting the reform of public Leveraging procurement systems. Discussions on the ground confirm these complementarities in practice, which Many Bank operations have created conditions for stakeholders recognize as a success factor. or encouraged other partners to intervene in the same sectors. Such is the case with PARCIs which Concerning infrastructure on the whole, encouraged the intervention of the EU for the complementarity is not systematic. For example, supply of office equipment and the establishment synergy between two types of operations in the of technical assistance in the Ministry of Economy same sector (transport), namely the rehabilitation of and Finance through the IMF. In addition, the the Port Roundabout-Avepozo road section and the successful establishment of the OTR with Bank development of a transhipment terminal at the Lome support encouraged the IMF, which was very Port, was delayed and non-optimal. An integrated reticent about this reform, to provide technical approach was lacking, at least at the level of the support to this entity, especially with respect to entire road and at the level of the infrastructure tax policy. The EU, which is the economic and located within the same functional space (road financial governance leader, and AFD have also and port). in it. Country Strategy Evaluation An IDEV Photo ©:

This evaluation recommends that sustainability should be made a strategic issue. UNICEF Findings: Country Performance 53

Findings: Country Performance

The adoption of interim and full-fledged poverty full-fledged PRSP was not really concretized. reduction strategy papers in Togo has helped Sector committees and the Committee of Donor to revive and refocus the country’s cooperation States have not been operationalized (only the with key technical and financial partners. These Transport Committee has been established, but no papers, which cover the period 2008-2011, activity has been carried out within its framework). did not sufficiently reflect the country’s fragility factors and there has been little progress in their As concerns Bank operations, shortcomings consideration between the interim PRSP and the in governance performance and project full-fledged PRSP. It is only at the end of the period implementation units were pointed out during the that SCAPE (adopted in January 2013) adopted an CSP 2011-2015 mid-term review. They include: inclusive strategic guideline which was confirmed (i) the quality of preparation of files (procurement by the Government’s policy letter presented during and disbursement); (ii) the mastery of the the evaluation data collection mission. conditions precedent under infrastructure projects; (iii) monitoring and supervision by supervisory During the period 2004-2013, the country ministries and the Ministry of Finance; (iv) deadlines was proactive, demonstrating its capacity for approving procurement files by national entities; to implement key reforms within a difficult and (v) the preparation of audit reports. context in order to stabilize its economic governance. One of the glaring examples to that There are real long-term risks for the continuity end is the establishment of the Revenue Authority of the benefits generated by AfDB operations

(law establishing OTR, December 2012). (cf. Sustainability). It is up to the Government to Country Strategy Evaluation sustain macroeconomic reforms, retain trained In contrast, Togo failed to live up to expectations staff and maintain the computer systems with respect to the coordination of development underlying these reforms. Yet, the dynamics at the An IDEV assistance on the whole. The country lacked end of the period are less active. Similarly, there leadership and did not mobilize all the resources are real risks regarding environmental resilience required to coordinate all the technical and financial and transport infrastructure maintenance. The partners operating in the country. The institutional national technical and financial ownership of the mechanism for monitoring and evaluating the water management system is less visible at this development policies (DIPD) outlined in the stage. Photo ©: Photo The sustainability of operations is a cause for concern at several levels. Generally, the sustainability of infrastructure is not guaranteed for various reasons (maintenance and overloading in road projects, UNDP Africa erosion at the Port of Lome, and lack of ownership of the project SIIEAU). Conclusions and Recommendations 55

Conclusions and Recommendations

Conclusions The issue of sustainability regarding governance rather concerns the continuation of the reforms The evaluation identified some major challenges initiated, the retention of trained staff and the concerning the Bank’s future strategy in Togo. maintenance of computer hardware investments. Furthermore, the slowdown in the implementation The main weakness identified regarding relevance of Government reforms at the end of the period was the absence of operations focussing directly affects the sustainability of intervention outcomes. on extreme poverty and few operations targeting The entities supported by the Bank under FSF inequalities, gender and environmental issues. projects are not prioritized in the national budget, During the conduct of the evaluation, the changes raising the issue of their financing once the Bank in the Bank’s guidelines, prioritizing inclusive and operation comes to an end. green growth had only been partly considered. Though regional disparities were properly The policy dialogue momentum, which enabled identified in dialogue notes and strategies, they international re-engagement in Togo, has been have not been mainstreamed into the strategies dying down lately, crystallizing, for example, of the Bank, most of whose operations are into discussions on the credibility of the 2013 concentrated in the capital, Lome. budget. This trend is reflected in the absence of a programme with the IMF and difficulties in

Though the overall effectiveness of the Bank’s mobilizing budget support and initiating dialogue Country Strategy Evaluation operations is satisfactory, emergency assistance on reforms. Analytical works enabled the Bank to operations were fraught with difficulties at various enhance its image, without being managed in a levels: design and sizing with respect to needs, strategic and structured manner. An IDEV timing, information channels and coordination. Excessive delays affected the quality of outputs Lastly, implementation delays are a setback. and the achievement of objectives. The poor quality at entry of some operations, delays in the issuance of the Bank’s no-objection The sustainability of operations is a cause opinion, weak capacity of public administrative for concern at several levels. Generally, the entities and delays in the approval of procurement sustainability of infrastructure is not guaranteed documents are important factors. However, for various reasons (maintenance and overloading portfolio management has improved with the in road projects, erosion at the Port of Lome, establishment of the TGFO. However, the guidance and lack of ownership of the project SIIEAU). of CSP outcomes should be strengthened. 56 Togo: Evaluation of the Bank's Country Strategy and Program 2004-2013 – Summary Report

Recommendations stated in the first recommendation: exclusion and insecurity dynamics in rural areas, environmental Make a significant shift in the next inclusive and issues in agricultural and food security policies, green growth strategy by seizing opportunities integrated economic development niches in in sectors where the Bank has a comparative the agricultural sector, terms and conditions for advantage. transport sector development (in the sub-region).

Redirecting infrastructure investments to the Reviving policy dialogue by focussing on a few key creation of agricultural value chains may help subjects to enhance economic diversification potential, while contributing to reducing inequalities by The Bank plays a prominent role in policy dialogue by operating in a high growth sector which employs virtue of its “trusted partner” status. Thus, it should 79% of the poor in Togo. Similarly, the sustainable take the initiative to revive the reform process and tapping of natural resources may become the improve the coordination of activities between the guideline for future strategies by prioritizing authorities and development partners. This dialogue green infrastructure. The potential to develop could specifically focus on the following points: mineral resources can be supported by targeted private sector operations as well as by specifically ❙❙ the continuation of public finance management redirecting investments into infrastructure. The reforms with special emphasis on debt sustainability; Bank should carry out a series of analytical works to better select investment options with ❙❙ the sustainability of investments at the strategic high growth potential and impact on poverty and and sector levels; inequalities. Lastly, given the ineffectiveness of its emergency assistance operations, the Bank ❙❙ the effective implementation and functioning of should review the use of this method of action. coordination mechanisms; and

Improve the use and monitoring of analytical ❙❙ the mobilization of resources for the works implementation of more inclusive policies.

The evaluation demonstrated the potential offered by Make sustainability a strategic issue analytical works for building and sharing knowledge, strengthening policy dialogue and enhancing the Besides policy dialogue, sustainability should be Bank’s image. Analytical works should be considered carefully analysed to provide sustainable solutions as a tool in its own right, alongside other methods within the framework of the Bank’s programme. The of intervention used by the Bank. Concretely, this options to be explored are as follows: implies that they should: (1) be better mainstreamed into intervention strategies, while maintaining some ❙❙ Concerning road maintenance, the Bank could flexibility; (2) be validated based on the systematic provide technical and financial support for the analysis of opportunities; (3) have adequate identification of innovative sources of financing resources for their implementation; and (4) be in order to reduce SAFER’s fiscal deficit, while monitored and evaluated. continuing to provide support for the reform of the DNCMP to make the procurement system More specifically, the following study topics could, more efficient and reduce delays. The Bank could for example, be explored during strategy design, as provide direct support to build the capacity of Conclusions and Recommendations 57

public works and civil engineering enterprises. As The topics concern, for example, road maintenance, the leader of transport sector partners, it could the sustainability of capacity building activities, and encourage the authorities to ensure the strict environmental risks related to Port activities. control of overloading. Strengthen results orientation and the assessment ❙❙ Concerning economic and financial governance, of strategies the Bank could encourage the Administration to define a clear and attractive career plan for the The report has highlighted the difficulty of staff of the Ministry of Economy and Finance, assessing the contribution of operations to particularly the computer specialists responsible strategic objectives. This is a key aspect in for the maintenance and development of the transforming the CSP into a more operational tool. Integrated Public Finance Management System This involves defining short- and long-term strategy which is the most integrated system in the and project objectives. One of the methods could WAEMU zone. be to systematically use the various theories of change developed by sector to define a common Specific analytical works on sustainability should help framework for strategy formulation, implementation to strengthen dialogue and to promote operations. and ex-post evaluation. Country Strategy Evaluation An IDEV Photo ©:

Concerning road maintenance, the Bank could provide technical and financial support for the Eglantine Marceline identification of innovative sources of financing in order to reduce SAFER’s fiscal deficit, while continuing to provide support for the reform of the DNCMP to make the procurement system more efficient and reduce delays, the evaluation recommends. Annexes 60 Togo: Evaluation of the Bank's Country Strategy and Program 2004-2013 – Summary Report

Annex 1: Methodological Approach

On the whole, the evaluative approach is broken down into the two main levels of analysis, namely: the strategic level (overall) and the operational level (operations).

Overall level (country strategies)

A Contribution Analysis

The analytical approach adopted for this evaluation is the contribution analysis, the starting point of which is the (re)construction of the theory of change of Bank assistance in Togo during the period 2004-2013. The theory of change has a strong heuristic potential as it highlights, in a overall and systematic manner, the logical causal links between the various intervention and results levels (output, outcome, impact). The analysis mainly seeks to ascertain how Bank assistance contributes to the expected outcomes through more general action frameworks which are the Bank’s own priorities and the national development priorities and policies.

Focus of assessment of immediate and intermediate results levels

During this results-based evaluation, effort will be mainly geared towards results analysis at the output and immediate and intermediate outcome levels. Results at the higher level (impact) will be very difficult to identify, except where there are robust data sources.

Country and Sector Analyses Grids

The main tool for collecting relevant information and analysing results at the strategic level is the special grid (Country Template) created by IDEV. It also provided data for the Bank’s overall evaluation of development outcomes (DOAR).

Moreover, the evaluation team utilized an internal working tool to conduct an analysis of the country’s key sectors where AfDB operations are concentrated. This analysis was conducted on a documentary basis and using interviews with key resource persons involved in national sector policy implementation, as well as site visits.

Intervention Levels (Project Outcome Assessment)

Project Selection Approach

Project selection was conducted by IDEV during the start-up phase using criteria (completed projects or being completed) defined to determine projects eligible for a results analysis approach (PRA). Annexes 61

The projects that were the subject of an in-depth study are characterized as follows:

❙❙ they represent 61% (UA 108.1 million) of the total operations budget in Togo approved between 2004 and 2013.

❙❙ they cover 4 out of the 6 Bank operations sectors in Togo during the period 2004-2013, namely: transport, multisector, water and sanitation and assistance. The finance sector is not included in the sample. The Benin-Togo-Ghana Power Grid Interconnection operation was taken into account in the technical report.

❙❙ At the level of intervention mechanisms, PRA projects mobilize all the instruments (AfDB, ADF, FSF, AWF, SRF), which reflects their diversity and relative importance in the overall portfolio.

Projects which have not yet matured (disbursement rate) or are excluded from the analysis owing to their size or implementation level are the subject of an implementation performance analysis.

Evaluation Process

Data collection Starting phase and analysis phase Reporting phase

Data Response to evaluation questions - Evaluation issues Additional collection and findings and conclusions Information assumptions Structuring into sub-questions Approach

Methodological Answers Cross-checking Indicators Summary and recommendations

1. Inventory of available information

and literature review Country Strategy Evaluation 2. Context analysis and 1. Analysis of relevant documents 1. Integration of results – reconstruction of theory of change and literature summary of information by 3. Structuring of evaluation 2. Field Mission: indicator, analysis by sub- An IDEV questions and preparation of the a. Interviews with key question, preliminary response evaluation framework stakeholders 2. Triangulation of information Tasks 4. Detailed inventory of interventions b. Case study: Workshop and verification of validity and sampling results presentation in Togo 3. Conclusions and 5. Preparatory mission to Togo c. Administration of surveys recommendations 6. Preparation and testing of collection tools

• Summary note of the literature • Evaluation grid filled out review systematically and in a targeted • "Theory of change" reference manner - preliminary answers • Provisional technical report framework and assumptions to be tested • Final summary report • Information collection and • Cross-cheking information

Deliverables analysis grid with the reality on the ground • Start-up report - reports

Presentation of the approach to the Information and discussion AfDB at start of mission, interviews Provisional technical report sessions with AfDB stakeholders with stakeholders, site visits, end of discussion session (including preparatory mission)

Involvement mission workshop 62 Togo: Evaluation of the Bank's Country Strategy and Program 2004-2013 – Summary Report

Evaluation Questions

Questions Criteria QE1 – Relevance of assistance in a context ❙❙AfDB strategy and fragility context analysis of fragility and transition to more resilience ❙❙Adaptation of assistance to trends in fragility factors ❙❙Intervention on fragility factors and resilience reinforcement QE2 – Portfolio Alignment with Bank ❙❙Alignment of interventions with Bank general priorities strategy and innovating practices ❙❙Consideration of new priority objectives: green inclusive growth ❙❙Adaptation of instruments and methods to better address needs QE3 – Inclusiveness of Bank operations Integration of a cross-cutting concern in strategies and interventions relating to: ❙❙gender equality ❙❙youth employment ❙❙regional disparities QE4 – Economic infrastructure and growth ❙❙Objectives defined and economic infrastructure achievements recorded stimulation ❙❙Economic infrastructure outcomes achieved ❙❙Impact on economic growth QE5 – Governance reinforcement ❙❙Objectives defined and economic governance outcomes obtained ❙❙Impact on economic governance, PFM and business climate QE6 – Sustainability of outcomes Sustainability of outcomes achieved in the areas of: ❙❙economic infrastructure ❙❙economic governance QE7 – Response to emergency situations ❙❙Objectives defined, reactivity and emergency aid impacts achieved ❙❙Needs coverage and re-establishment of initial conditions ❙❙Coordination, information sharing and leadership assumed QE8 – Beneficiaries/target groups ❙❙Definition of target groups ❙❙Felt influence exerted by interventions on target group QE9 – Environmental sustainability and ❙❙Integration of environmental and transition to green growth concerns in: transition to green growth • strategy • interventions ❙❙Major achievements of measures to integrate environmental concerns QE10 – Intervention efficiency ❙❙Assessment of portfolio efficiency ❙❙Adaptation of financial instruments to the specific needs of fragile States ❙❙Role of the opening of Bank Country Office in portfolio efficiency QE11 – Compliance with timing and ❙❙Duration of interventions and consistency with objectives operational standards ❙❙Decision channel efficiency level QE12 – CSP Quality ❙❙Needs analysis and strategic alignment ❙❙Bank strategic positioning and comparative advantage ❙❙Monitoring and evaluation, consideration of risks and mitigation measures QE13 – Selectivity ❙❙Origin and content of the principle of selectivity ❙❙Strategic selectivity ❙❙Operational selectivity QE14 – Coordination and synergies Intervention complementarity and synergy in the areas of: ❙❙capacity building ❙❙public finance management ❙❙infrastructure ❙❙analytical works with the other Bank interventions QE15 –Policy Dialogue ❙❙Involvement in policy dialogue with the Government and the other partners ❙❙Mechanisms for dialogue with national and international actors ❙❙Trends in and achievements of policy dialogue with national and international actors QE16 – Analytical works ❙❙Rationale and findings of scheduled analytical works ❙❙Rationale and findings of unscheduled analytical works ❙❙Impacts of analytical works carried out on Bank image among stakeholders and on dialogue with them Annexes 63

Questions Criteria QE17 – Implementation of the Paris ❙❙Compliance with the principles for engagement in fragile States Declaration and the Principles for ❙❙Bank contribution to the implementation of the Paris Declaration Engagement in Fragile States ❙❙Decisive nature of Bank interventions for resumption of cooperation ❙❙Leveraging effect generated through Bank operations in: • economic governance • infrastructure QE19 – Performance management strategy ❙❙Integration of the performance requirement in: • strategies • operations

List of Entities Met

No. Name 1 Lome Container Terminal 2 Mediterranean Shipping Company 3 Grande Entreprise Routière 4 Holding of CECO Group Companies 5 Extractive Industries Transparency Initiative 6 Embassy of France 7 West African Development Bank 8 World Bank 9 African Development Bank 10 PROPARCO 11 International Monetary Fund 12 United Nations Development Programme Country Strategy Evaluation 13 European Union 14 World Food Programme An IDEV 15 World Health Organization 16 Lome Port Authority 17 Société d'Exploitation du Guichet Unique pour le Commerce Extérieur au Togo 18 Implementation Unit of the Multisector Programme to Build the Capacity of FSF Projects 19 Presidency of the Republic 20 Ministry at the Presidency in charge of Forecasts and Evaluation of Public Policies 21 Ministry of Environment and Forest Resources 22 Ministry of Public Works and Transport 23 Ministry of Agriculture, and Fisheries 24 Ministry of Plan and Regional Development 25 Ministry of Public Service and Administrative Reform 26 Ministry of Social Action, Women’s Empowerment and Literacy 27 Ministry of Grassroots Development, Crafts, Youths and Youth Employment 28 Ministry of Trade and Private Sector Promotion 64 Togo: Evaluation of the Bank's Country Strategy and Program 2004-2013 – Summary Report

No. Name 29 Ministry of Economy and Finance 30 Ministry of Rural Equipment 31 Ministry of Industry, Free Zone and Technological Innovations 32 Implementation Unit of the Multisector Programme to Build the Capacity of FSF Projects 33 Autonomous Public Establishment for the Operation of Lome Markets 34 National Environment Management Agency 35 National Grassroots Development Support Agency 36 National Food Security Agency of Togo 37 National Solidarity Agency 38 Public Procurement Regulatory Authority 39 Togolese Revenue Authority 40 General Inspectorate of Finance 41 Public Procurement Regulatory Authority 42 Audit Bench 43 National Vocational Training and Retraining Institute 44 Directorate of Vocational Training 45 Canton de Avepozo 46 Canton de Baguida 47 Canton de 48 Autonomous Public Establishment for the Operation of Lome Markets 49 Integrated Development and Environment Councils 50 Directorate of Livestock 51 National Employers’ Council 52 National Shippers’ Council of Togo 53 Professional Union of Customs Clearing Agents 54 Communauté électrique du Benin 55 Union of ONGOs of Togo 56 Centre for Civil and Political Rights 57 Friends of the Earth 58 West Africa Civil Society Forum

Bibliographical References

The list of references includes more than 150 titles and is available in the technical report Annexes 65

Annex 2: List of 2004-2013 Operations

CF Project Name Funds Approval Net Loan % Sector/ Mobilized Overall Water and Sanitation 2 204 611 1% P-TG-EAZ-001 Integrated Water Information AWF 12/01/2009 1 256 004 System (SIIEAU) P-TG-EBZ-001 Access to Sanitation in AWF 19/04/2013 948 607 Finance 7 085 415 4% P-TG-HA0-003 Credit Line AfDB 02/04/2003 7 085 415 Multisector Total 46 483 885 26% P-TG-K00-005 PARG - I FSF 11/02/2009 10 000 000 P-TG-K00-009 PARG – II FSF 02/11/2011 20 000 000 P-TG-K00-006 PARCI - I ADF 24/07/2006 2 177 762 P-TG-K00-007 PARCI – II ADF 05/10/2010 9 210 000 FSF* TA Secretariat for Capacity FSF 19/05/2010 30 240 Building FSF* Capacity Building - Entrepre- FSF 01/12/2010 32 243 neurship FSF* Financing of the Unit for Targeted FSF 05/08/2011 179 875 Management of AT Projects FSF* TA and Administrative Capacity FSF 13/07/2010 483 210 Building Programmes FSF* Capacity Building, Diaspora FSF 02/03/2011 333 605 Mobilization, E-govt. and Auditing FSF* TA and Capacity Building of the FSF 13/07/2011 236 000 Economic Unit of the Presidency Country Strategy Evaluation P-TG-KF0-003 Planning Capacity Building and FSF 05/11/2010 481 945 PRSP Monitoring and Evaluation

P-TG-KE0-001 TA and Capacity Building of the FSF 08/02/2012 605 522 An IDEV Ministry of Public Works P-TG-KF0-005 Strategic and Organizational FSF 24/01/2012 476 893 Auditing of 6 Ministries P-TG-KZ0-001 Preparation of the Full-fledged FSF 07/02/2012 702 520 PRSP P-TG-KF0-006 PC/PATCM Complementary FSF 27/02/2013 619 000 Project P-TG-ID0-001 Capacity Building of the Ministry FSF 26/01/2012 225 460 of Women’s Empowerment P-TG-IZ0-001 Self-employment Support and FSF 06/02/2012 689 610 Self-employment 66 Togo: Evaluation of the Bank's Country Strategy and Program 2004-2013 – Summary Report

CF Project Name Funds Approval Net Loan % Sector/ Mobilized Overall Transport 115 811 774 66% P-Z1-DB0-093 Lome-Cotonou Road ADF 05/10/2011 4 810 000 Rehabilitation Project P-Z1-DB0-096 Lome-Cinkanse-Ouaga Road ADF/FSF/ 27/06/2012 70 000 000 Rehabilitation Project P-TG-DB0-002 Aflao-Sanvée-Condji Road ADF 13/01/2010 25 250 000 Rehabilitation-Modernization Project P-TG-DD0-001 Lome Container Terminal Project AfDB 15/07/2011 34 021 774 Emergency Aid / Reconstruction 4 997 083 3% P-TG-AAE-001 Emergency Aid – Bird Flu SRF 05/04/2006 354 271 P-TG-AAZ-001 Humanitarian Aid – Floods SRF 02/04/2009 354 271 P-TG-I00-005 Emergency Aid - Kara and Lome SRF 14/08/2013 708 541 Markets P-TG-I00-004 Lome and Kara Markets ADF 22/01/2014 3 580 000 Reconstruction Support Project GRAND TOTAL 194 852 768 100% Annexes 67

Annex 3: Level of Bank Contribution to Fragility Factors

Impact Identifiable Contribution Contribution to Impact Growth resumption Port development High Exchange between countries of the sub-region Business climate (PARG2) Better mobilization of State Budgetary support (PARG 2) High resources (domestic and TCO (Internal resource mobilization) external) Improved management of public finances

Re-establishment of relations PARCI 1 High with TFPs Policy dialogue Contribution to HIPC through settlement of arrears Public Services OTR Not documented Roads Credibility of the State Better budgetary process High, although it is difficult to assert Better expenditure chain that the credibility of the State has Enabled the State to function (PARCI and FSF) and to have improved (no available measurement) an MT vision (SCAPE) Communication Gender equality Training and elements of the family code (FSF “women’s Moderate. Attention paid to gender empowerment”) with respect to direct outcomes (for example, many women recruited in the various projects), but no attention paid to gender with respect to impact Country Strategy Evaluation An IDEV 68 Togo: Evaluation of the Bank's Country Strategy and Program 2004-2013 – Summary Report % 100% 5.47% 3.96% 3.94% 3.54% 3.46% 1.67% 0.72% 0.19% 0.01% 0.01% 33.51% 17.46% 13.36% 12.69% 6.85 2.93 0.79 0.04 0.03 71.45 54.65 51.91 22.37 16.22 16.11 14.49 14.15 100% TOTAL 137.10 409.11 5% 0.13 5.64 0.06 0.12 0.75 0.23 0.00 0.00 1.77 0.00 0.00 0.00 0.00 13.25 21.96 Others

3% 2.10 3.00 4.16 0.18 0.50 0.59 0.03 10.58 France

3% 1.11 8.94 0.85 10.90 BADEA

4% 1.24 2.11 3.99 6.00 2.11 15.44 GERMANY

4% USA 6.23 4.44 1.25 1.18 2.45 15.56

4% 8.63 5.16 0.02 1.39 0.40 0.48 AfDB 16.09

4% NGO 9.11 0.06 0.62 3.64 0.02 3.84 0.02 0.20 17.51

5% 5.38 4.30 10.23 19.91 JAPAN

7% 0.32 29.94 30.26 China

EU 9% 1.92 0.11 0.10 1.34 0.80 6.35 24.17 34.79

WB 2.87 6.09 5.27 0.26 0.04 12% 10.71 12.15 11.39 48.79

UN 4.62 7.59 1.79 1.12 3.02 0.34 0.42 0.12 17% 52.39 71.42

1.37 0.13 8.23 5.06 23% BOAD 70.31 10.79 95.90 Public Development Official development assistance breakdown by sector (2013) amount in usd million Official development assistance breakdown Transport Infrastructure Health Agriculture Governance Education Environment Social Protection Industry and Crafts Drinking Water Energy Infrastructure Employment and Youth Gender Posts and Culture and Sport TOTAL % Annex 4: Assistance to Togo Source: Report on Official Development Assistance RAPD 2013, Ministry of Planning and Regional Development of Togo, December 2014 Togo, Ministry of Planning and Regional Development Assistance RAPD 2013, Report on Official Development Source: Annexes 69

Annex 5: List of Sector and Thematic Studies and Other Analytical Works

Type of Works Status Comments/Outcomes Provided for in CSP PEFA study Not launched Absence of PEFA analysis limits the capacity to assess PARCI and PARG public finance management interventions. Study on business climate Study conducted Study conducted but has not resulted in concrete decisions. Feasibility study on teachers’ savings and loan Study conducted Response to an ad hoc need. Reflections are cooperatives continuing to operationalize outcomes. Study on energy cost Not conducted Study on Togo cement in CVMs Not conducted Study on budget space for human development Not conducted Specific works not provided for OTR study Study conducted OTR was established by the Government before the end of the study. The study mostly had an impact at two levels: (1) show Bank commitment in a difficult file; (2) convince Bank services of the rational of options. Other Works Monthly economic review initiated by the Field 5 files between July and July 2012: Togolese Diaspora Office December 2012 August 2012: Transport and Trade Facilitation in Togo September 2012: Maritime and Air Transport in Togo Country Strategy Evaluation October 2012: Agricultural Output in Togo November 2012: Capital development in Togo No direct outcomes, but an impact in terms of image and dialogue An IDEV

Economic outlook in Africa 2011, 2012, 2013, 2014, 2015 No direct outcomes, but impacts in terms of editions image and dialogue 70 Togo: Evaluation of the Bank's Country Strategy and Program 2004-2013 – Summary Report

Annex 6: Map of Togo

BURKINA FASO

BENIN

TOGO NIGERIA GHANA

Lome

Bight of Benin

Source: African Development Bank, 2013 Annexes 71

Endnotes

1. The methodological approach to the evaluation is appended to this report (Annex 1). It comprises an outline of the evaluation process (Annex 1.a) as well as evaluation issues (Annex 1.b) and the list of entities visited (Annex 1.c).

2. World Bank, Data Togo, 2013. (http://data.worldbank.org/country/togo).

3. See State Department, Report on Human Rights, 2005 (on the situation in 2004).

4. For example, 80% of Lome city dwellers in 2002-2003 held the view that the “administration is functioning very poorly” (40%) or “rather poorly” (40%), with particular dissatisfaction concerning social security and justice (DIAL, 2005).

5. African Economic Outlook - Togo, 2013, Interviews Conducted by the Evaluation Team during the Start-up Phase.

6. At this stage, the revenue generated is not yet officially known. It can be estimated as follows (given that the LCT benefits from tax exemption): according to LCT, between October 2014 and May 2015, 221 996 containers were transhipped, corresponding to about 333 000 containers per year. If the fee of EUR 5 per container specified in the Evaluation Report is applied, this would generate EUR 1 665 000 in revenue.

7. In November 2015, all facilities were operational, particularly gauging, meteorological and piezometric stations, IP cabling, the fire safety system, the Internet and the SIIEAU website.

8. AfDB CPIA data is available on http://www.afdb.org/fr/documents/document/2004-2013-country-policy-and-institutional-assessment-cpia-47411/ Country Strategy Evaluation An IDEV Independent Development Evaluation African Development Bank

An IDEV Country Strategy Evaluation

About this Evaluation

This evaluation examines the AfDB's assistance to Togo over the 2004-2013 period. The AfDB’s project portfolio in Togo represented 195 million Units of Account (UA) during the evaluation period. Conducted with the dual objective of measuring development results of AfDB interventions in Togo and drawing vital lessons to improve future strategy and operations, this evaluation concludes that AfDB interventions are generally aligned to Togo's needs and priorities. However, the lack of maintenance threatens sustainability of projects. Togo is one of the Bank's member countries in a situation of fragility. This evaluation concludes that the future Bank interventions have affected a great number of factors that contribute to fragility such as support to the process of resuming relations with partners, support for economic governance and the government’s credibility. However, the Bank’s interventions have affected extreme poverty only very indirectly, and inequality and the environment have only been marginally affected. Central among the recommendations from this report to improve future Bank's interventions in Togo is the call for a strong emphasis on inclusive growth and green growth.

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