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Document of The World Bank FOR OFFICIAL USE ONLY Public Disclosure Authorized Report No. 69913-SL INTERNATIONAL DEVELOPMENT ASSOCIATION INTERNATIONAL FINANCE CORPORATION Public Disclosure Authorized AND MULTILATERAL INVESTMENT GUARANTEE AGENCY COUNTRY ASSISTANCE STRATEGY PROGRESS REPORT FOR THE REPUBLIC OF SIERRA LEONE FOR THE PERIOD FY10-FY13 Public Disclosure Authorized July 12, 2012 World Bank West Africa Department 1 IFC MIGA Sub-Saharan Africa Department Public Disclosure Authorized This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without the World Bank‘s authorization. REPUBLIC OF SIERRA LEONE – FISCAL YEAR January 1 - December 31 CURRENCY EQUIVALENTS (as of May31, 2012) Currency Unit = Leone US$1.00 = Le 4,340 WEIGHTS AND MEASURES Metric System ACRONYMS AND ABBREVIATIONS AAA Analytical and Advisory Activities ACC Anti-Corruption Commission ACGF Africa Catalytic Growth Fund AfDB African Development Bank AML/CFT Anti-Money Laundering and Combating the Financing of Terrorism APC All People‘s Congress APEIE Africa Program for Education Impact Evaluation ASREP Agriculture Sector Rehabilitation Project BB Bank Budget BECE Basic Education Certificate Examination BHP Bumbuna Hydroelectric Project BSL Bank of Sierra Leone CAADP Comprehensive Africa Agriculture Development Program CAP Scan Management for Development Results Capacity Scan CAR Commitment at Risk CAS Country Assistance Strategy CASA Conflict-Affected States in Africa CASPR Country Assistance Strategy Progress Report CDTI Community-Directed Ivermectin Distribution CET Common External Tariff CG Consultative Group CHYAO Child and Youth in Africa Trust Fund CPAR Country Procurement Assessment Review CPIA Country Policy and Institutional Assessment CPR Country Portfolio Performance Review CSO Civil Society Organization CSP Country Strategy Paper CSR Country Status Report CWIQ Core Welfare Indicators Questionnaire DfID Department for International Development DFGG Demand for Good Governance DP Development partner DPO Development Policy Operation DOTS Directly Observed Treatment Short Course DTIS Diagnostic Trade Integration Study EFA FTI Education for All Fast Track Initiative EGRP Economic Governance Reform Program EITI Extractive Industries Transparency Initiative EMS Education Management System ENCISS Enhancing Interaction and Interface between Civil Society and the State to Improve Poor People‘s Lives EPA Economic Partnership Agreement ESMAP Energy Sector Management Assistance Program ESW Economic Sector Work EU European Union FCS Fragile and Conflict affected Situations FDI Foreign direct investment FIAS Foreign Investment Advisory Services FIRST Financial Sector Reform and Strengthening FIU Financial intelligence unit FM Financial management FMCG Fast Moving Consumer Goods FSAP Financial Sector Assessment Program FSF Fragile States Facility FY Fiscal Year GDP Gross domestic product GEF Global Environment Facility GER Gross Enrollment Ratio GoSL Government of Sierra Leone GRGC Governance Reform and Growth Credit GRGG Governance Reform and Growth Grant GVWC Guma Valley Water Company HIPC Heavily Indebted Poor Countries HRMO Human Resources Management Office IBRD International Bank for Reconstruction and Development ICA Investment Climate Assessment ICAO International Civil Aviation Organization IDA International Development Association IDP Infrastructure Development Project IDF Institutional Development Fund IFC International Finance Corporation IFMIS Integrated Financial Management Information System IMF International Monetary Fund IPFMRP Integrated Public Financial Management Reform Project IRCBP Institutional Reform and Capacity Building Project JAS Joint Assistance Strategy JICA Japan International Cooperation Agency JSANS Joint Staff Advisory Notes JSS Junior Secondary School JSDF Japan Social Development Fund KFW Kreditanstalt fur Wiederaufbau LC Local Council LG Local Government LGA Local Government Act MDAs Ministries, departments and agencies MDBS Multi-donor Budget Support MDG Millennium Development Goal MDRI Multilateral Debt Relief Initiative MDTF Multi-Donor Trust Fund MICS Multiple Indicator Cluster Survey MIGA Multilateral Investment Guarantee Agency MMMR Ministry of Mines and Mineral Resources (MMR) MMR Ministry of Mineral Resources MOA Memorandum of Agreement MoFED Ministry of Finance and Economic Development MOU Memorandum of Understanding MT Metric ton MTEF Medium-Term Expenditure Framework NaCSA National Commission for Social Action NASSIT National Social Security and Insurance Trust NCP National Commission for Privatization NER Net Enrollment Ratio NERICA New Rice for Africa NPA National Power Authority NPPA National Public Procurement Authority NPSE National Primary School Examination NSA Non State Actor NPV Net present value NSAP National Social Action Project O&M Operation and maintenance PAD Project Appraisal Document PAF Progress Assessment Framework PAR Portfolio at Risk PCR Primary Completion Rate PEFA Public Expenditure and Financial Accountability PEP Private Enterprise Partnership for Africa PER Public Expenditure Review PETS Public Expenditure Tracking Survey PFM Public financial management PHU Public health unit PIU Project implementation unit PPIAF Public-Private Infrastructure Advisory Facility PPP Public-Private Partnership PRGF Poverty Reduction and Growth Facility PRS Poverty Reduction Strategy PRSP Poverty Reduction Strategy Paper PSC Public Services Commission PSD Private sector development RABI Removing Administrative Barriers to Investment Project RCHP Reproductive and Child Health Project RIMsys Results integration and management system ROSC Report on the Observance of Standards and Codes SA Social Accountability SHARP Sierra Leone HIV/AIDS Response Project SIL Specific Investment Loan SL Sierra Leone SLIEPA Sierra Leone Investment and Export Promotion Agency SLIHS Sierra Leone Integrated Household Survey SLPRSP Sierra Leone Poverty Reduction Strategy Paper SLRA Sierra Leone Roads Authority SMC School Management Committee SSA Sub Saharan Africa SWAp Sector-wide approach TA Technical assistance TB Tuberculosis bacillus TEU Twenty-foot Equivalent Unit TURFS Territorial Use Rights Fisheries UNMIL United Nations Mission in Liberia WAPP West African Power Pool UK United Kingdom UN United Nations UNDP United Nations Development Programme UNFPA United Nations Population Fund UNHCR United Nations High Commission for Refugees UNICEF United Nations Children‘s Fund UNIPSIL United Nations Integrated Peacebuilding Office in Sierra Leone USAID United States Agency for International Development VSAT Very Small Aperture Terminal WAPP West Africa Power Pool WBG World Bank Group WBI World Bank Institute WFP World Food Program WHO World Health Organization WORLD BANK Vice President: Makhtar Diop Country Director: Yusupha Crookes Country Manager: Vijay Pillai Task Team Leader (s): Vijay Pillai and Renée Desclaux Task Team Members Sergiy Kulyk, Cyrus Talati, Anders Jensen, Thomas Losse-Mueller, Mamadou Barry, Christopher Gabelle, Mohamed Sidie Sheriff, Margaux Hall INTERNATIONAL FINANCE CORPORATION Vice President: Thierry Tanoh Country Director: Yolande Duhem Resident Representative : Mary Agboli Strategy Unit: Frank Douamba Core CAS Team: Mary Agboli MULTILATERAL INVESTMENT GUARANTEE AGENCY Vice President and Chief Operation Officer Michel Wormser Finance and Risk Management: Conor Healy, Moritz Zander ACKNOWLEDGEMENTS The World Bank Group greatly appreciates the close and fruitful collaboration with the Government of Sierra Leone in the preparation of this Country Assistance Strategy, Progress Report (CASPR). This CASPR was prepared by members of the World Bank Group‘s Sierra Leone Country Team, including Vijay Pillai, Sergiy Kulyk, Renée Desclaux, Cyrus Talati, Roberto Panzardi, Susan Hirshberg, John Van Dyck, Vivek Srivastava, Chris Gabelle, Jens Kristensen, Serdar Yilmaz, Qaiser Khan, Waqar Haider, Yusuf Foday, Evelyn Awittor, Margaux Hall, Sidie Sheriff, Nikolay Nikolov, Gibril Jalloh, Chris Atim, Christophe Lemière, Alan Moody, Hardwick Tchale, Bidemi Abioseh Carrol, Charles Annor-Frempong, John Virdin, Thomas Losse-Mueller, Cari Votava, Michael Jarvis, Moritz Zader, Frank Armand Douamba, Mary Agboli, Maria Miller, Anders Jensen, Conor Healy under the overall leadership of Yusupha Crookes. COUNTRY ASSISTANCE STRATEGY PROGRESS REPORT TABLE OF CONTENTS I. Introduction…………………………………………………………………………………………...1 II. Country Context and Recent Developments………………………………………………..............2 III. Progress towards CAS Outcomes and Portfolio Performance ……………. ……….……7 A. Progress against CAS Pillars: Human Development and Inclusive Growth………..………….7 B. Portfolio Performance ……………………………………………………………………….... 9 C. Lessons Learned……………………………………………………………………………….11 IV. Adjustments to the CAS moving forward…………………………………… ……………………11 V. Key Constraints and Risks……………………………………………………….…………….........15 Annex1a : CAS Results Matrix – FY09-12 Progress to date Annex1b: CAS Results Matrix – FY12-13 Annex 2 : Managing the Extractives Boom Annex 3 : Promoting Social Accountability for Development Impact Annex 4: Progress on Millennium Development Goals Annex 5: CAS (FY10-FY13): Main Funding Sources Annex 6: Changes in the Indicative Lending Program for the FY10-13 CAS Annex 7: Status of Non-Lending Activities Annex 8: Selected Indicators of Bank Portfolio Performance and Management Annex 9: IDA Base Case lending Program Annex 10: Sierra Leone‘s Key