Document of The World Bank
FOR OFFICIAL USE ONLY Public Disclosure Authorized Report No: 38444 - GN
PROJECT APPRAISAL DOCUMENT
ON A
PROPOSED GRANT
IN THE AMOUNT OF SDR 11.5 MILLION (US$17.0 MILLION EQUIVALENT) Public Disclosure Authorized
THE REPLTBLIC OF GUINEA
FOR THE
VILLAGE COMMUNITIES SUPPORT PROGRAM (PHASE I1 OF APL)
IN SUPPORT OF A
NATIONAL PROGRAM FOR DECENTRALIZED RURAL DEVELOPMENT Public Disclosure Authorized
July 9,2007
Agriculture and Rural Development Sustainable Development Department Western Africa Country Cluster 1 Africa Region 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 World Bank authorization. CURRENCY EQUIVALENTS
(Exchange Rate Effective June 4,2007)
Currency Unit = GNF GNF3,451 = US$1 US$1.52493 = SDR 1
FISCAL YEAR January 1 - December 3 1
ABBREVIATIONS AND ACRONYMS FOR OFFICIAL USE ONLY
1 IFR I Interim Financial ReDorts IRR Internal Rate of Return ISN Interim Strategy Note LDP Local Development Plan LIF Local Investment Fund M&E Monitoring and Evaluation MATD Ministry of Territorial Administration and Decentralization (Minist2re de I I I'administration du territoire et de la de'centralisation) I MIS Management Information System MP Ministry ofPlanning NCB National Competitive Bidding NGO Non Governmental Organization NPDRD National Program for Decentralized Rural Development PACV Village Communities Support Program (Programme d'appui aux I I communaute's villaaeoises) I PCU Program Coordinating Unit PDO Project Development Objective PIM Proiect Imdementation Manual PRSP Poverty Reduction Strategy Paper PSC Project Steering Committee ~ RPF Resettlement Policy Framework RST Regional Support Team (Equipe rkgionale d'appui, ERA)
SBD Standard BiddingY Document I SOE I Statement of ExDenditures SPD Prefectoral Development Service (Service pre'fectoral de de'veloppement) SPN Specific Procurement Notice UNCDF United Nations Capital Development Fund (Fonds d'e'quipement des Nations Unies. FENUl UNDB United Nations Development Business UNDP United Nations Development Programme
Vice President: Obiageli K. Ezekwesili Country Director: Mats Karlsson Sector Manager: Karen Mcconnell Brooks Task Team Leader: I Jane C. Hopkins
This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not be otherwise disclosed without World Bank authorization.
.. 11
GUINEA Village Communities Support Program (Phase 11)
CONTENTS
Page
I. STRATEGIC CONTEXT AND RATIONALE ...... 1 A . Country and sector issues ...... 1 B. Rationale for Bank involvement ...... 3 C . Higher level objectives to which the project contributes ...... 3
I1. PROJECT DESCRIPTION ...... 4 A . Lending instrument ...... 4 B. Program objective and phases ...... 4 C . Project development objective and key indicators ...... 7 D. Project components ...... 8 E. Lessons learned and reflected in the project design ...... 11 F. Alternatives considered and reasons for rejection ...... 12 I11. IMPLEMENTATION ...... 13 A . Partnership arrangements (if applicable) ...... 13 B. Institutional and implementation arrangements ...... 14 C . Monitoring and evaluation of outcomes/results ...... 15 ... D. Sustainability...... 17 E. Critical risks and possible controversial aspects., ...... 17 F. Loadcredit conditions and covenants ...... 19 IV. APPRAISAL SUMMARY ...... 19 A . Economic and financial analyses ...... 19 B. Technical ...... 20 C . Fiduciary ...... 21 D. Social...... 21 E. Environment., ...... 22 F. Safeguard policies...... 22 G. Policy Exceptions and Readiness ...... 23
Annex 1: Country and Sector or Program Background...... 24 ... 111
Annex 2: Major Related Projects Financed by the Bank and/or other Agencies ...... 33 Annex 3: Results Framework and Monitoring ...... 34 Annex 4: Detailed Project Description...... 38 Annex 5: Project Costs ...... 46 Annex 6: Implementation Arrangements ...... 47 Annex 7: Financial Management and Disbursement Arrangements ...... 54 Annex 8: Procurement Arrangements ...... 65 Annex 9: Economic and Financial Analysis ...... 70 Annex 10: Safeguard Policy Issues ...... 73 Annex 11: Project Preparation and Supervision ...... 75 Annex 12: Documents in the Project File ...... 77 Annex 13: Statement of Loans and Credits ...... 79 Annex 14: Country at a Glance ...... 80 Annex 15: Map IBRD 35338 ...... 82
iv
GUINEA
GN-VILLAGE COMM SUPP PROGRAM - PHASE 2
PROJECT APPRAISAL DOCUMENT
AFRICA
AFTAR
Date: July 9,2007 Team Leader: Jane C. Hopkins Country Director: Mats Karlsson Sectors: General agriculture, fishing and Sector Manager: Karen Mcconnell Brooks forestry sector (5O%);General water, sanitation and flood protection sector (25%);0ther social Project ID: PO65129 services (25%) Themes : Decentralization (P) ;Other rural Lending Instrument: Adaptable Program Loan development (S) Environmental screening category: Partial Assessment
For Loans/Credits/Others: Total Bank financing (USsm.): 17.00
Global Environment Facility 9.00 1.oo 10.00
International Fund for Agriculture- 10.00 0.00 10.00 Development Local Govts. of Borrowing Country 5.50 0.00 5.50 Total: 48.20 7.80 56.00
Borrower: Republic of Guinea
Responsible Agency: Ministry of Plan; PACV-CNC Conakry, Guinea Tel: (224) 46 40 23 Fax: (224) 46 40 31 [email protected]
V Does the project depart from the CAS in content or other significant respects? No Ref: PAD I.C [ Does the project require any exceptions from Bank policies? Ref: PAD IV. G [ ]Yes [XINO Have these been approved by Bank management? [ ]Yes [ IN0 Is approval for any policy exception sought from the Board? [ ]Yes [XINO Does the project include any critical risks rated “substantial” or “high”? [XIYes [ ]No Re$ PAD III.E Does the project meet the Regional criteria for readiness for implementation? [XIYes [ ]No Ref: PAD IV.G
Project development objective Ref: PAD II.C, TechnicalAnnex 3
Local rural governments (CRDs) are enabled to fulfill their legal mandate by planning and implementing inclusive local development activities, and improving revenue performance to sustain recurrent costs.
Project description [one-sentence summary of each component] Ref: PAD ILD, Technical Annex 4
Component A: Local Investment Fund. The Local Investment Fund will be the mechanism for transferring funds to CRDs to finance public socio-economic infrastructure identified on the basis of a participatory strategic planning process. The objective ofthe component is for CRDs to receive and manage funds transparently to implement and maintain technically sound infrastructure. It provides an opportunity for local governments to take charge of local development challenges through experience with participatory planning, budgeting, financial management, and implementation ofdevelopment activities.
Component B: Capacity Building for Decentralized Rural Development. The objective ofthis component is to enable CRDs to prepare and implement their development and investment plans in an inclusive manner, with adequate support from deconcentrated staff. Activities under this component will address the institutional and policy changes required as well as the technical and fiduciary skills needed at the different decentralized levels to implement local development activities. This component will support an ambitious capacity building program to enable the Code des collectivitks locales to be implemented.
Component C: Project Management, Monitoring and Evaluation. This component includes: (i)
vi support for the coordination ofthe national program and (ii)administration, coordination, %-- Which safeguard policies are triggered, if any? Re$ PAD IKF, Technical Annex 10
The project is considered Category Bywhereby the environmental and social impacts ofthe project are expected to be minimal, site specific, and manageable to an accepted level. The two safeguard policies triggered are: Environmental Assessment (OP 4.0 1); and Involuntary Resettlement (OP 4.12).
Significant, non-standard conditions, if any, for: Re$ PAD III.F Board presentation: No conditions ofBoard presentation.
Loadcredit effectiveness:
(a) The Recipient has established the Project Steering Committee in form and substance satisfactory to the Association;
(b) The Recipient has adopted, through the Project Steering Committee: (i)the Project Implementation Manual; and (ii)the work program and budget for the first year ofProject implementation, all in form and substance satisfactory to the Association;
(c) The Recipient has recruited to the Project Coordination Unit for purposes ofProject implementation, the following staff with qualifications, experience, and terms ofreference satisfactory to the Association and in accordance with the procurement procedures outlinec, the Financing Agreement: (i)a National Coordinator, (ii)a Technical Operations Officer, (iii)an Administrative and Financial Management Officer ; (iv) a Procurement Officer ; and (v) a Monitoring and Evaluation Officer;
(d) The Recipient has appointed an external auditor, with qualifications, experience, and terms of reference satisfactory to the Association.
Covenants applicable to project implementation:
(a) The Recipient shall, no later than two years after the effectiveness date: (i)adopt a realistic strategy and action plan, both in form and substance satisfactory to the Association, for the progressive deployment ofCommunity Receivers to Rural Development Communities; and (ii) prepare and furnish to the Association an evaluation, in form and substance satisfactory to the Association, of a pilot phase ofimplementation of said strategy.
vii
I. STRATEGIC CONTEXT AND RATIONALE
A. Country and sector issues
1. Guinea possesses a generous natural resource endowment, with fertile topsoil covering one of the world’s richest bauxite deposits, in addition to gold, diamonds, and several other minerals. Despite this, GDP growth has slowed recently, to an average of 2.3% over the 2003 to 2005 period. While there have been notable improvements in gross school enrollment (77%), in vaccination campaigns, and in the campaign against HIV/AIDS, Guinea’s other social indicators have not fared so well. Under-five malnutrition has deteriorated, with 3 5% estimated to be underweight in 2005 (compared to 26% in 1999), only 42% of Guineans have access to clean water resources, and there are only 9 doctors per 100,000 people. Most worrying for the Government however, are projections that indicate an increase in the overall poverty rate from 49.2% in 2002 to 56% in 2005. Two-thirds of Guineans rely on agriculture as their primary source of income. Despite this, agriculture, livestock and fisheries account for only around 20% of GDP and 10% of exports. Most production is for direct consumption and a poor road network precludes getting produce to market. There is enormous potential in the sector however, given an ideal climate and the fact that only 15% of land is cultivated.
2. A variety of reasons explain this poor performance including inter alia: (i)highly skewed incomes due to uneven distribution of growth; (ii)inefficiency and insufficiency of public expenditure and inadequacy of the infrastructure base resulting in lagging social indicators; (iii)highly centralized and bloated public sector and widespread corruption and numerous disincentives undermining the investment climate, and; (iv) external challenges, mainly the instability of the sub-region, the high influx of refugees, and deteriorating terms of trade further constraining the country’s performance.
3. Perhaps most importantly, Guinea suffers from the consequences of decades of poor governance, as evidenced by the following: endemic corruption; weak political institutions; a lack of inclusiveness and dialogue; poor legal and regulatory frameworks; impunity; and a reticent yet resilient civil society. However, Guinean civil society has recently spurred dramatic political reform. In January and February 2007 a series of nationwide strikes paralyzed the country. With inflation rising to 40% in 2006, severe depreciation of the Guinean Franc and a complete lack of service both in water and electricity, demonstrations animated all principal cities. Close to 200 people were killed in clashes between demonstrators and security forces. The Trade Union movement served as a catalyst for a broad popular movement demanding the resignation of the President and better governance. Civil society’s pressure led to the nomination of a Prime Minister with substantial authority (not foreseen by the Constitution of Guinea) and the creation of an entirely new cabinet in April 2007. The reformist government has vowed to “break radically with the corrupt practices of the past”, and taken immediate measures to ensure accountability and transparency in the management of public finances. Early discussions with government underscore its political will to undertake sweeping reforms in an effort to help Guinea realize its development potential and respond to the population’s high expectations, a daunting challenge in the current economic and financial context.
4. Notwithstanding recent events, Guinea’s Poverty Reduction Strategy Paper (PRSP), finalized in 2002 remains relevant and will be further sharpened in its second iteration (PRSP
1 11) expected in draft form in the coming weeks. The original PRSP is organized around three pillars: i) sustaining faster economic growth and creating income-earning and employment opportunities, particularly for the rural poor; ii) improving and extending access to basic services; and iii) improving governance and strengthening institutional and human capacity. The PRSP also outlines the Government's policy with respect to decentralization, with reforms having begun in 1986. However, the change process has been gradual, with several obstacles slowing the process over the years, including: resistance to change at central levels, coupled with a lack ofunderstanding of the benefits of decentralization at the local level; lack ofhuman, physical, and financial capital to promote and sustain reforms; lack of effective coordination, despite structures being established to undertake this role; and confusion as to the mandates of different administrative structures and levels. In addition, the Government's inability to finance such reforms, particularly with respect to meeting the recurrent costs of functioning local governments, has also contributed to a slow transition.
5. Despite these significant obstacles, the previous Government demonstrated commitment to decentralization by undertaking important reforms critical to its effective implementation. It established a new budget classification system (Nomenclature budge'taire) that identifies resources earmarked for expenditure at the local level and the rules of the game surrounding their collection and utilization. Political decentralization has progressed, and local government elections were held in December 2005. As a result, a cadre ofelected representatives has a fresh mandate with respect to local governance, and is poised to act as champions of reform associated with meaningful decentralization over the coming years. A new Code des collectivite's locales, which was passed into law by the National Assembly in May 2006, has ushered in a new era by empowering local governments to become a key player in local service delivery. The implementation of the Code will entail major changes with respect to: the roles and responsibilities of existing government structures; financing arrangements; staffing; and accountability linkages. Support to the Government and key reform champions on this will be a key in ensuring the potential benefits of decentralized local development are realized in Guinea.
6. In recognition of the important role decentralization plays in poverty reduction, the current Government has renewed a request for assistance from the Bank to help support a change process for improved local governance. The first phase of the Village Communities Support Program (Programme d 'Appui aux Communaute's Villageoises, PACV) has proved instrumental in promoting decentralization reforms, including improving the financing system for rural communities both through a direct transfer mechanism and through support to the development of the Nomenclature budge'taire. It has taken the lead in establishing a new decentralization regulatory framework, as provided for in the Code des collectivite's locales; democratizing relations within Rural Development Communities (Communautis rurales de developpement, CRD); and equipping local governments (CRD) with the necessary development planning tools and skills to carry out their plans. Despite the country's weak macro-economic and governance performance, the decentralization of service delivery through a transfer of responsibilities for planning and implementation to local governments has provided impressive implementation results and a success story for local development.
2 B. Rationale for Bank involvement
7. The 2003-2006 Country Assistance Strategy (CAS) focused Bank support on front line service delivery, institutional capacity building, and policy reforms at the local level, in areas where the Bank has a comparative advantage. However, in light of Guinea’s economic difficulties and the political uncertainties that compound poor economic performance, the country has had much difficulty in generating financial support from donors commensurate with its development challenges. Allocations to Guinea from the International Development Association (IDA) have also declined sharply and implementation of investment projects has been hampered by slow decision-making in-country especially with regard to implementation mechanisms. An Interim Strategy Note (ISN) is scheduled to be finalized by the fall of 2007 on the basis of the Government’s recently constituted Emergency Action Program. Together with other donors, the Bank will define its support to this program in the context of a Partner’s Forum to be held during the summer of 2007. Areas of focus will include macroeconomic reform, public financial management support, transparency, governance and accountability, mining sector transparency and management, investment climate work, and investments to restore basic services. The ISN will focus on current economic governance and management challenges, while continuing to support critical activities in key service delivery sectors and may restructure the portfolio where needed.
8. To complement such changes, the ISN will also call for continued support for decentralization and local government capacity development, confirming the programmatic nature of the Bank’s support to rural development, which remains appropriate and contributes significantly to improving local and national governance. Programmatic support is needed because: (i)the transformation from supply-driven to demand-driven approaches to rural development requires institutional change and time, requiring sustained support and a long-term commitment; and (ii)it has shown success: commitment has already spurred significant policy reform in the first phase of the project by advancing administrative decentralization and supporting the development of a Code des collectivitks locules; by improving fiscal decentralization and championing the Nomenclature budge‘tuire, and, indirectly, promoting political decentralization through the holding oflocal government elections in 2005.
9. Finally, the Bank is uniquely positioned to support such reform, due to its long-standing support to poverty reduction both at policy and investment levels. The Bank currently leads donor support for Guinea’s decentralized rural development program along with the International Fund for Agricultural Development (IFAD), contributing directly to the program, and other partners such as the French Development Agency (Agence Frunpise de DPveloppement, AFD) providing parallel support. Such programmatic leverage enables the Bank to guide the dialogue surrounding the phasing, content, and reforms associated with the program. Such a role is appropriate, given the Bank’s broad experience related to decentralized rural development globally and in Africa over the past decade.
C. Higher level objectives to which the project contributes
10. The project directly contributes to the Government’s vision for poverty reduction in the rural sector, and the Bank’s CAS is centered on supporting the pillars of the PRSP. The project will support the first PRSP pillar of fostering sustainable and equitable growth through
3 developing capacity of decentralized institutions to tackle development issues, while also continuing to promote reforms that further the decentralization agenda. With respect to the second pillar - improving access and quality of basic social services - this phase of the Adaptable Program Loan (APL) will continue its support to a Local Investment Fund that will finance socio-economic infrastructure geared toward strengthening decentralized service delivery.
1 1. The third pillar - strengthening governance and institutional and human capacity - will be a particular focus of this phase of the PACV. As part of the effort to operationalize and institutionalize policy reforms enacted during Phase I,notably the Code des collectivitds locules and Nomenclature budgdtuire, Phase I1 of the PACV will continue to focus its support on “learning by doing” at decentralized levels along with promoting strong accountability measures to foster an environment oftransparent and equitable governance. This is particularly critical in a fragile governance context, where developing stronger linkages between citizens and elected local governments could be a key contributor to a peaceful and democratic transition.
12. As referenced in the CAS, the PACV is seen as a critical entry point to support efforts to further rural institutional reforms, improve rural services and strengthen service delivery, empower communities, transform local level institutions, and build downward accountability. As such, the project developed by the Government is fully in line with the CAS vision.
11. PROJECT DESCRIPTION
A. Lending instrument
13. The second phase of the PACV (2007-201 1) will be financed as a continuation of the APL instrument that financed Phase I.This will ensure that the Bank’s initial commitment remains in place and that continued flexibility be built into the lending instrument so as to adjust technical details according to the size and scope of each phase. This instrument will ensure that the required changes in institutions, organizations, or behavior are sustained with respect to decentralized rural development reforms. This approach will make it po,ssible to review program implementation in line with lessons learned during this phase, the changing country context, and also according to the demand and capacity of rural communities. This instrument will also enable the gains achieved to date with respect to policy reform to be continued, along with moving ahead with some ofthe policy triggers that were achieved during the program’s first phase.
B. Program objective and phases
Program objective
14. The PACV seeks to strengthen local governance in rural Guinea and promote social and economic empowerment of the rural population, including women, youth and other marginalized groups. The long-term vision ofthe program is that, upon completion ofthe final phase, local communities and their representative local governments will have developed: (i) the capability to identify, prioritize, plan, and manage their own infrastructure and service
4 needs; (ii)the capacity to mobilize and use transparently the resources necessary to finance the establishment, rehabilitation, and maintenance of basic community infrastructure; (iii)the ability to oversee the implementation, operation and continued maintenance of community infrastructure either by contracting private firms or through the support of deconcentrated government services; and, (iv) the capacity to sustain the development efforts and to enhance good governance practices. This original program objective remains valid for the second phase. It is also noteworthy that the indicative programmatic indicators outlined in the baseline APL Project Appraisal Document remain valid, and have been refined to better respond to the dynamic context in which the program operates.
Program phases
15. Phase I - Scale-up Initial Pilots and Initiate Reforms (1999-2007): Phase Ibegan a learning process for implementing decentralized rural development by supporting local infrastructure investments and institutional reforms. The project’s development objectives were to (i)establish an operationally effective and efficient, decentralized system for local development; and (ii)increase access of the rural population to basic infrastructure and services.
16. The first phase of the PACV included four components. The first component - a demand-driven Local Investment Fund (LIF) - channeled resources directly to rural communities in CRDs to finance basic infrastructure. The LIF provided a fixed amount to each CRD for annual investments, and beneficiary CRDs provided 20 percent cash and in-kind contribution, and was designed to evolve into the Government’s main instrument for transferring financial resources to rural communities for their development needs. The total first phase funding for basic infrastructure was approximately US$22.0 million. A second component - Support to the Local Development Process - focused on fiscal decentralization, institutional reforms, and building the capacity of CRDs to enable local institutions to manage their own development. The component supported streamlining the legal and regulatory framework for decentralization; effective fiscal and financial decentralization; building CRDs’ capacity to develop and manage local development plans; strengthening the capacity of the Ministry of the Territorial Administration and Decentralization (MinistBre de 1 ’Administration du Territoire et de la De‘centralisation, MATD) and other agencies and services, which are responsible for decentralization; and sensitizing and training elected local officials and CRD administrative and technical staff in the areas of local governance, planning and financial management. Total first phase funding for these activities was about US$lO.5 million. The third component was focused on the rehabilitation and maintenance of rural roads, at a cost of approximately US$ll million. The fourth component focused on project management, monitoring and evaluation. Total first phase funding for this last component was about US$6.7 million.
17. Phase I results: The first phase of the PACV improved rural community access to basic social services, including health, education, and potable water through the successful completion of community sub-projects. Progress towards the PACV’s overall objective of strengthening local governance and promoting the rural population’s social and economic empowerment (including that of women and youth) is deemed satisfactory. The first phase of the PACV had a strong impact on local governance, with the project supporting the
5 development of comprehensive decentralization legislation, fostering linkages with existing sectoral ministry staff at central and deconcentrated levels, and assisting communities to develop annual investment plans in a participatory manner. Collection of the local development tax increased dramatically (in some cases by as much as 50 percent) in response to the need to raise contributions for local development activities funded by external financiers and the close involvement of beneficiaries in the decision-making process. These accomplishments serve as the foundation for Phase 11, which will seek to scale up support to rural decentralization.
18. The main weaknesses of the first phase were (i)the difficulty in staffing the health and education infrastructures in a timely manner (within one year of completion of the civil works) because of difficulties at the level of the sectoral ministries to affect adequate staff; and (ii) inadequate implication of decentralized services because of insufficient budget transfers from the central and regional levels to staff working at the community level. Originally projected to last five years, the project duration was extended to eight years because of unforeseen effectiveness delays. In addition, additional financing for Phase Iin the amount of US$7.0 million was approved in January 2006, in order to leverage the better than expected implementation capacity and results and to scale up the number of CRDs benefiting from the project. The additional financing also enabled preservation of this capacity and implementation momentum while the second APL phase was under preparation. All triggers for going from Phase Ito Phase I1were achieved (see Annex 1).
19. Phase I.- Expansion of Program and Graduation of CRDs: The second phase of the PACV (the project) expands the program geographically with the aim ofreaching all 303 CRDs in the country. The program will increase the range of eligible micro-projects to include all types of socio-economic infrastructure of a public goods nature, complemented by a short negative list. Planning processes will continue to implicate deconcentrated civil servants, and will strive to better implicate those at the lowest level (the sub-prefecture), in order to build skills amongst key institutions and individuals. The project will support the Government's National Program for Decentralized Rural Development (NPDRD) outlined in the Government's Lettre de Politique de De'veloppement Rural h la Base. This renewed focus on a programmatic approach will strengthen harmonization and coordination of decentralized rural development in Guinea. The project will play an active role in this effort through its support for a national dialogue to that end. It is expected that by the end of Phase I1 all financing for local development planning and implementation will follow approaches consistent with the Code des collectivitks locales.
20. The prefecture will be a particularly important actor in the second phase, as it will be the locus of coordination and consolidation of lessons at CRD levels. Most importantly, the project will focus on building institutional sustainability related to local development, particularly focused on actors at the CRD level. It will also place particular emphasis on local governance issues, in order to counteract a deteriorating national context in this realm. The project will continue to support policy reform related to decentralization, and will support the furtherance of fiscal decentralization and debate on overall functional devolution. The triggers to be reached by the completion ofthis phase are described in Section C.
2 1. Phase III - Consolidation and Institutionalization of Reforms: The third phase further consolidates the fiscal, administrative, and political decentralization reforms to make the
6 process of local development sustainable. It will also continue to strengthen local capacity to undertake a wide range of collective micro-projects, expand the role of the private sector, and further integrate civil society into the national development process.
C. Project development objective and key indicators
22. This project represents the second phase of the Village Communities Support Program (Programme d 'Appui am Communautks Villageoises, PACV). The project development objective is the following: CRDs are enabled to fulfill their mandate by planning and implementing inclusive local development activities, and improving revenue performance to sustain their recurrent costs.
23. Key performance indicators include: . The percent of citizens in supported CRDs who participated in the local development planning process.
The percent of citizens who consider that their views have been taken into account in the local development planning process. . The percent of infrastructure investments financed by the project staffed on completion.
m The annual head tax (Contribution au diveloppement local, CDL) collection rate in supported CRDs.
24. Building on the indicative triggers and indicators outlined in the baseline APL Project Appraisal document, the agreed triggers for going from Phase I1to Phase I11 ofthe program are the following: . The Community Receivers (Receveurs Communautaires) are in place according to a realistic strategy and action plan that has been validated during the project's mid-term review. . The intergovernmental transfer system for recurrent costs of CRDs is functioning, in accordance with Article 373 ofthe Code des collectivitks locales.
Legislation defining roles and responsibilities of deconcentrated territorial administration and sector-specific technical staff is reviewed for consistency with the Code des collectivitks locales. . The local development planning process has been reviewed, widely validated and guidelines have been developed which are reflected in the Project Implementation Manual.
7 All 303 CRDs are covered by the National Program for Decentralized Rural Development and the Local Development Plan and Annual Investment Program have become the framework for all local level interventions.
D. Project components
25. The project will include three components: (a) a local investment fund; (b) capacity building for decentralized rural development; and (c) project management, monitoring and evaluation.
26. The Local Investment Fund will be the mechanism for transferring funds to local governments (Communaute' Ruvale de De'veloppement, CRD) to finance public socio-economic infrastructure identified on the basis of a participatory strategic planning process. The objective of the component is for CRDs to receive and manage funds transparently to implement and maintain technically sound infrastructure. It provides an opportunity for local governments to take charge of local development challenges through experience with participatory planning, budgeting, financial management, and implementation ofdevelopment activities.
27. Criteria and procedures for use of the LIF will be described in detail in the Project Implementation Manual (PIM), and will include a negative list detailing the types of activities which will be ineligible for project financing. The technical and fiduciary review of the activities will be placed at appropriate levels in support of the subsidiary principle, and will streamline review procedures in order to cut down on implementation delays. The budget allocation for participating CRDs will be determined with a formula based on population levels. Simplified methods for including poverty criteria in the formula are being assessed. The investment envelope will be made known at the outset of the planning cycle and adjusted on the basis of support provided by other development partners. Based on the positive experience under the first phase, CRDs will continue to manage funds from the LIF to implement their own development plans, and will be responsible for contract management, monitoring and evaluation, operation and required maintenance ofthe investments.
28. The Local Investment Fund will have two windows under Phase 11. The first window will finance public socio-economic infrastructure and services identified by CRDs in their Local Development Plans. The LIF will complement the local government's investment budget and will aim at improving access to basic socio-economic infrastructure in rural areas. At the same time it will function as a fund to leverage additional resources and an instrument for building local planning, implementation and resource management capacity. The identification, preparation and implementation of activities will be the responsibility of the CRD, which will use participatory processes and involve participation from all beneficiaries. In addition, the beneficiaries will have the responsibility of contract management, monitoring and evaluation, and maintenance ofthe infrastructure.
29. The second window will support activities aimed at ensuring a sustainable management and protection of natural resources through participatory approaches. Incremental funding for this window will come from the Global Environment Facility (GEF)-financed Community- Based Land Management Project (CBLMP) and the Coastal Marine and Biodiversity
8 Management Project (CMBMP). These projects are both geographically limited in focus and this window will therefore not be national in scope. A geographic expansion of the CBLMP will be reviewed at the time of its mid-term evaluation. The possibility of third, “inter-CRD”, investment window to finance larger scale investments identified in the Local Development Plans and of interest to multiple CRDs will also be reviewed at the time of the mid-term evaluation.
30. The objective of the Capacity Building for Decentralized Rural Development component is to empower CRDs to prepare and implement development and investment plans in an inclusive manner, with the adequate support from deconcentrated staff. It also aims to increase the capacity of CRDs to manage the infrastructure they finance. The component will be managed by the National Directorate for Decentralization (Direction Nationale de la De‘centralisation, DND) of the Ministry of Territorial Administration and Decentralization (MATD). The capacity building activities under this component will (a) address the technical and fiduciary skills needed at the different decentralized levels to implement local development activities and (b) support the Government in developing the details of the legal framework to further fiscal and administrative decentralization as envisioned in the Code. In particular, the component will: Develop the capacity of CRDs to undertake participatory planning and resource allocation based on a simple, results-oriented approach grounded in the principles of community empowerment, transparency, and ownership; Strengthen the capacity of deconcentrated staff, and specifically recruited Community Development Agents (Agents de De‘veloppement Communautaire, ADC) to support CRDs in community-level development planning and investment; Develop the capacity of CRDs to broaden their revenue base and to account for this in a transparent manner; Support activities to promote transparency and accountability related to activities to be financed out ofthe LIF and to CRD governance; Support implementation of the project’s public outreach campaign, with a particular focus on sensitization related to roles and responsibilities under decentralization and understanding the Code des collectivite’s locales; Support Government to strengthen their programmatic vision and approach to decentralized rural development, including developing application texts for the Code des collectivite‘s locales, with a particular focus on fiscal and administrative decentralization; Support legal and regulatory reform with respect to decentralization, with a particular focus on fiscal decentralization. Evaluations of Phase I capacity building activities stress that although much was achieved in areas where the project intervened, additional effort is needed to strengthen CRD and district level comprehension ofthe development planning processes, financial management, and decentralization legislation. In addition, some critical CRD institutional structures remain non-functional due to a lack of human and financial resources. As a result, Phase I1 will focus efforts on helping to establish the legally mandated institutions at CRD level and transferring basic functional skills to them. It will also support the development and use oftools (such as the
9 Rapid Results Approach) to increase local government revenues to ensure sufficient financial resources for its operation. The project will develop corresponding performance benchmarks to ensure progress toward these desired results. At prefecture and regional levels, deconcentrated government staff requires sensitization and training relative to their roles and responsibilities under decentralization. Regarding fiscal decentralization, a major awareness campaign needs to be undertaken relative to the rights and responsibilities of local governments, citizens, and central government in these processes. At present, revenue collection and expenditure is made by entities with centralized accountability (Le. pre'fets), is done inefficiently, and without transparency.
32. The two GEF financed operations will provide incremental financing to strengthen capacity of CRDs and deconcentrated technical services to integrate sustainable land management and natural resource management concerns into the local development planning and prioritization process. The CMBMP will do so in the coastal CRDs, while the CBLMP will focus initially on 15-20 CRDs in several critical watersheds.
33, The Project Management, Monitoring and Evaluation component includes: (i)support for the coordination of the national program and (ii)coordination, monitoring and evaluation of the project.
34. Program coordination: The NPDRD is a national program involving a decentralized and participatory approach to rural development and poverty reduction as outlined in the Government's Lettre de Politique de De'veloppement Rural ir la Base. This national strategy serves as a frame of reference for the various programs and projects to foster local development. One of its central objectives is to achieve harmonization of donor supported approaches in order to make more efficient use ofthe limited available resources and to achieve faster and more effective national coverage and poverty reduction. The Government's Policy Letter provides the details of the strategy as well as the roles and functions of the different players. A national cadre for dialogue and exchange of experiences will be created to capitalize on decentralized rural development activities and harmonize approaches.
3 5. Project coordinatiodmanagement: Responsibility for overall coordination, monitoring and evaluation of project activities will continue to reside with a National Coordination Unit (Cellule Nationale de Coordination, CNC) under the oversight of the Ministry of Planning. Its size will be limited to core functions critical to the project's success and for which capacity constraints exist in the Guinean civil service (overall coordination, monitoring and evaluation, and fiduciary matters). The CNC will be supported by regional units in each of the seven administrative regions to oversee the implementation ofwork programs and provide mentoring to deconcentrated government agencies at the regional, prefecture, and departmental levels. Project management responsibilities include harmonizing implementation procedures, preparing and overseeing the implementation of annual work programs, providing support to the Project Steering Committee, and organizing field supervision trips, managing the LIF and transfer of funds to local governments, and ensuring overall consistency with project implementation procedures and guidelines.
10 36. Monitoring and Evaluation (M&E): The M&E system will focus on results-oriented data collection to inform project decision-making and impact evaluation. It will also use participatory M&E methods. It will enable beneficiaries and the Government to: monitor due diligence focused on whether project implementation complies with technical and fiduciary guidelines as well as with social and environmental safeguard policies; monitor and evaluate achievement of the development objectives; evaluate whether the project’s implementation approach will be sustainable and have the desired outcomes; assess project impacts on local governance and decision-making; and assess the extent to which project activities involve and benefit specific groups - women, youth, marginalized groups and poorer communities. The Phase IM&E arrangements are being revised in order to simplify its structure and narrow its focus to real-time monitoring ofphysical and financial execution, technical and financial audits. Baseline data for tracking project outcome indicators is available from the first phase. Collection of quantitative and qualitative data for impact evaluation purposes is being contracted out to appropriate research entities with the necessary expertise in sampling, data collection and statistical analysis.
E. Lessons learned and reflected in the project design
37. The design of the second phase ofthe PACV reflects the important lessons learned from its first phase, which include the following:
Change agents are needed to affect major reform. The structural transformations envisaged under the Government’s decentralization reform program will require significant changes in the power balance within political and bureaucratic structures. Strong leadership will be needed to champion the process.
The colonial legacy of deconcentration in Guinea is at odds with devolution. A major challenge to the success of decentralization is harmonizing seemingly opposing approaches to local governance. The former - and in many cases, continued - omnipotence of centrally appointed gouverneurs, prkfets and sous-prkfets poses a direct challenge to the authorities vested in elected local governments in the new Code. In addition, conflicting interests and rent-seeking behavior could delay the devolution process if the policy dialogue envisaged under the project is not successful.
Fiscal capabilities are key to long-term viability of local governments. In order for decentralization reform to be sustainable, a transformation at the local level needs to happen, particularly as relates to taxation and tax collection. While local governments are entitled to collect certain taxes, collection rates are relatively low and the full potential of such taxes is limited, making many localities non-viable from a short term, fiscal perspective. Capacity development needs to focus on fiscal issues, including sustainable transfers from the central government.
Supply of basic service infiastructure does not necessarily increase utilization of services. In Phase I,25% of schools and health posts financed by the project were found to be non-functional due to lack of staff and operating budgets. Top-down planning approaches used by sectoral line ministries inevitably lead to delays in making adequate staff and budget available for schools and health posts. Such a reality demonstrates the
11 need to partner more closely with line ministries, and engage with other Bank financed investment operations in order to ensure that holistic technical and financial support is provided to activities that are financed by the project.
e) Extra-budgetary procedures for investment funds undermine sustainable structures. Phase 1’s support to a planning process and investment program was focused too much on activities eligible for funding under the PACV. As such, the local development plans did not reflect the local community’s full needs. In addition, in the absence of a public investment budget funded from the CRD’s own resources or budgetary transfers, a parallel structure for approving investment plans and preparing budgets evolved specific to the PACV. Phase I1 will fully work within the Government’s established procedures for local government budget preparation and approval. The menu of investment options available to local governments will also be enlarged.
f) Focused monitoring and evaluation. The Phase IM&E system was overly ambitious, attempting to track too many indicators through the use of an inadequately adapted Management Information System (MIS). Phase I1 will focus on strengthening the institutional set-up by relying on data collected by national systems and selecting project level indicators that are simple, measurable, and results-oriented. The M&E system also needs to be integrated into institutions with the mandate for such work, and skills need to be transferred to key staff implicated in its implementation.
F. Alternatives considered and reasons for rejection
3 8. A more centralized, supply-driven approach to tackling local development issues could have been taken by the program and this specific phase. However, such an approach would conflict with lessons learned in Guinea and globally regarding the efficacy of engaging and empowering citizens and local governments in development activities.
39. The Capacity Building for Service Delivery Project (CBSDP), approved by the Bank board in December 1999, was developed as a complement to the PACV. The CBSDP was conceived as a three phase, 12 year APL providing supply-side support to the Government’s decentralization strategy. Its long term development objective was to strengthen centralized and decentralized administrative systems to provide effective public services to the rural population and empower local institutions to take charge of their own needs. However, the CBSDP was closed in 2005 due to financial mismanagement. As it is unlikely that a new operation will assume this type of support in the foreseeable future, some capacity building support to deconcentrated administrative structures has been integrated into second phase project design, as this is a pre-condition for successful decentralization.
40. Furthermore, the baseline program document envisaged the full engagement of the Ministry of Finance in the oversight ofthe LIF to be supported by the project. However, given current capacity constraints this role will continue to rest with the CNC, with the view toward transferring responsibility for the component during Phase 111. Overall project specific structures were also projected to be eliminated by Phase 11. However, in light of local governments being newly elected and possessing the new legal mandate of the Code des
12 collectivith locales, core project staff will be maintained at central and regional levels to facilitate skills transfer to government bodies during Phase 11.
41. Details on additional alternatives and justifications for the approach taken by the program are described in the Project Appraisal Document of the first phase.
111. IMPLEMENTATION
A. Partnership arrangements (if applicable)
42. Phase I1 of the PACV is prepared in collaboration with other major donors involved in decentralization and local development in Guinea. The International Fund for Agricultural Development (IFAD) and French Development Agency (Agence franqaise de de'veloppement, AFD) are major stakeholders and financiers of the program. IFAD is providing financing on a pari-passu basis (US$lO.O million) for the second phase and AFD has stated its intention of providing parallel financing (US$12.0 million) for the second phase once Guinea reaches the HIPC completion point.
43. The Global Environment Facility (GEF) is providing US$7.0 million co-financing through the Community Based Land Management Project (CBLMP, P081297) which will target 13 of the country's 33 CRDs. The GEF is also providing US$3.0 million through the Coastal Marine and Biodiversity Management Project (CMBMP, P070878) for support to 17 CRDs. These grants provide resources for the integration of natural resource management issues into the local development planning process. Table 1 below shows the financing partners for Phase 11.
Table 1: Financing partners for PACV-phase I1
Financier US$ millions
IFAD (pari-passu) 10.0 AFD (parallel) 12.0 Government of Guinea 1.5 Rural Communes TOTAL
TOTAL (including GEF project financing for 56.0 I targeted interventions)
44. The European Union (EU) has stated its intention to provide US$17 million in financing for local development activities in the forest region of Guinea during the second phase of its Rehabilitation and Development program. Discussions are on-going regarding the possibility of channeling these funds to the second phase of the PACV through parallel financing. At a minimum, coordination of geographic areas of intervention and agreement on approaches will be sought. The EU also intends to provide US$4.0 to the MATD for capacity building activities
13 related to implementation of the Code des collectivite‘s locales. With a goal of assisting the government in harmonizing local development interventions, the Project will also coordinate its activities with other donors active in local development and decentralization, including the African Development Bank (AfDB), the United Nations Capital Development Fund (UNCDF), and the United Nations Development Program (UNDP).
45. The mining industry constitutes another partner. Phase Iexperimented with private mining corporations financing local development, as did the UNCDF. Phase I1 will draw on these experiences as well as results from the Government’s ongoing dialogue and study on “Mining and Local Development” supported by the International Finance Corporation, to inform potential financial partnerships with the program.
46. As a national program that develops the overall capacity of local governments to manage their development activities, the PACV will continue to consolidate partnerships with (i)sector investment projects in the IDA portfolio, including the National Rural Infrastructure Project, the HIV/AIDS Project, the Education for All Project, and the Urban Development Project; (ii)technical assistance projects (IDF) and analytical work (ESW) in the portfolio (e.g. procurement reforms, conflict and decentralization research, mining and local development initiatives), and (iii)other donor-funded sector projects which are complementary to the PACV. In particular, partnership will be sought and emphasized with IFAD-funded projects to foster synergies and avoid duplication especially in the area ofpublic infrastructure investments.
B. Institutional and implementation arrangements
47. Several changes will be made to the implementation arrangements for Phase 11, due to successful progress with respect to the implementation of Government’s decentralized rural development program.
Program Coordination
48. At the national level, the PACV supports the implementation of the Government’s decentralized rural development vision, as operationalized through its Code des collectivite‘s locales. A number ofrural development projects in Guinea share a common central objective of supporting decentralization and local development through support to CRDs, but the implementation arrangements vary quite a bit. The Code establishes the ‘rules ofthe game’ and therefore, if applied, will go a long way in harmonizing the different approaches. In addition, the project will support a national cadre to (i)evaluate and share experiences, and (ii)help harmonize the various approaches to decentralized rural development. The cadre will play an important role in the exchange of ideas and experiences, the medium-term goal being the adoption of best practices by all donors and the evolution of the various on-going operations towards a single national program.
49. At the regional level, the Project will support a regional cadre for the exchange of ideas and experiences between donors-supported projects, Government technical services, and civil society. At the prefecture level, support will also be provided for coordination among all development partners. This function could be played by a deliberative body (the Conseil Prkfectoraux de De‘veloppement, CPD) envisioned under Article 89 of the Loi Fondamentale de
14 la Re'publique de Guine'e. This deliberate body is not yet functional and its composition and precise mandate are being evaluated by the government - a concrete proposal will be made during the first year ofproject implementation.
Project Management. Implementation and Monitoring
50. Project Oversight: Overall project oversight and orientation will continue to be the responsibility ofa Project Steering Committee (PSC) composed ofrepresentatives from various ministries and key stakeholder groups. The PSC will meet at least twice annually. Donors participating in project financing will be invited to participate in one of the meetings. The PSC is chaired by the Secretary General ofMATD, while the secretariat is ensured by the CNC.
5 1. Project Management and Implementation: At the national level, the Ministry of Planning (MP), working through a National Coordination Unit (Cellule Nationale de Coordination, CNC), will continue to be responsible for overall project management. The CNC will also be responsible for overseeing the implementation of the LIF component and the monitoring and evaluation of project activities. The DND will continue to be responsible for implementing the capacity building activities of the project, though the focus of this support will place a particular accent on better engaging deconcentrated sectoral staff below the prefecture level in the local development process. In addition to the government structures involved in project implementation, the CNC and DND will be supported by seven Regional Support Teams (Equipe regional d'appui, ERA) that will be housed within the Government's regional administrations. At the prefecture level, the Prefecture Development Service (Service Pre'fectoral de De'veloppement, SPD) would be strengthened to do the required M&E of activities within the prefecture and provide support to the planning and implementation process at the CRD level.
52. The CRDs themselves will be responsible for the process of identifying (through participatory diagnosis, local development planning, and annual investment programming) and implementing infrastructure subprojects to be financed by the LIF. This process will adhere to the following basic principles: (i)the identification, selection, operation, oversight, and maintenance of investments by and for the benefit of village communities with broad inclusion of different groups in the diagnostic, planning and prioritization processes; (ii)contractual implementation of works will be done by local artisans, private companies, or by the communities themselves; and (iii)responsibility for technical supervision and monitoring of subproject implementation will be shared by CRDs, territorial administration, and deconcentrated sectoral services. Therefore, the effective functioning of the CRD unit of analysis will be a key benchmark ofproject success, and lessons learned during Phase Iwill be leveraged to build this spirit ofpartnership and collaboration.
C. Monitoring and evaluation of outcomes/results
53. The monitoring and evaluation system used in Phase I requires a major overhaul in order to be an efficient and effective management tool. The system will be reoriented to provide reliable real time information at several levels and to monitor project performance and inform impact evaluation. Data collection and analysis will happen at several levels, as opposed to Phase Iwhere project staff filled this role at regional level. Rather than focusing solely on
15 inputs and outputs, the data collection will focus more intensively on intermediate outcomes and results, linked to the project’s results framework and other information outputs deemed necessary by project management. The system will also gather information on intangible outcomes linked to social dynamics, inclusion, governance, and conflict at local levels. Phase I revealed significant anecdotal evidence that the project positively impacted these areas, but was unable to rigorously analyze such claims.
54. The primary locus of simplified data collection and analysis will rest at the CRD level, though considerable capacity will need to be built for this to happen in a reliable manner. The CRD level will also host a self-standing Participatory Monitoring and Evaluation (PM&E) system that will implicate a diverse set of stakeholders in selecting indicators and using the scorecard methodology to track processes and outcomes related to local development. The prefecture level will be implicated in aggregating and conducting simple analysis of information coming from CRD level, in keeping with their mandate as a coordinating and monitoring entity for local governments. This responsibility will rest with the Director of Planning.
55. At regional level, data will be collected related to programmatic goals and support will be provided to lower administrative levels related to M&E. A major challenge for Phase I1 will be to make the system “real time” in that data is collected and analyzed in a timely fashion in order to be used as a management tool by the different decentralized levels. During Phase I, data was rarely collected, rarely analyzed, and because of the time needed to transmit and consolidate it into the Management Information System (MIS), infrequently used as a management tool. M&E activities will be jointly coordinated by the CNC and a representative from DND at the national level. The quality of the local development plans, and the process leading to them, will be closely monitored.
56. The project is currently exploring either integrating or using as a basis for its own system a decentralized MIS developed by UNCDF. Technical discussions are underway, and Government will review the database in view of its relevance, simplicity, and flexibility to adapt to government data collection needs. This opportunity would capitalize on a standardized platform that could be used to track overall progress with respect to decentralization reform and its implementation on the ground.
57. An M&E Officer at the CNC will supervise all M&E activities under the project, be responsible for ensuring quality control of data from decentralized levels, and take the lead in compiling the data for quarterly reporting. The Administrative and Finance Officer will be responsible for analyzing the data related to fiduciary matters at the central level. All technical and financial data will be captured in a Management Information System. Qualitative and quantitative data for the purpose of impact evaluation is being contracted to a third party with the necessary expertise in sampling, data collection and statistical analysis. Data collection for a mid-term evaluation will be carried out at the latest 24 months from the date of project effectiveness. Randomized, unannounced fiduciary audits will be undertaken within samples of participating CRDs to ensure compliance with Project Implementation Manual fiduciary procedures.
16 D. Sustainability
5 8. Phase Iimplementation provided strong evidence that including existing government institutions in project implementation is an important step in ensuring sustainability. In that respect, this phase will deepen its support to skills transfer to using government institutions both at the national, regional and local levels. It will move out of a “project” orientation, and into that of programmatic support. As a result, the Government has proposed restructuring project staffing and support at the field level in order to enable the administrative levels to take charge of local development processes. Furthermore, the planning and annual investment funds that are provided to local governments will be expected to outline the totality of the CRD’s activities, and not just those receiving PACV support.
59. A second key to the sustainability of the project is related to fiscal considerations at CRD level. As noted during the project’s first Phase, one of the key constraints to a viable local government system at present is the lack of resources to sustain their basic functioning. As a result, the project will work to build the capacities of CRDs to increase their own revenue base. The program will also encourage government to launch a system of intergovernmental transfers to meet some of the recurrent and investment costs borne at CRD levels. This is mandated in the Code des collectivite‘s locales, though it has not yet been affected. This has seriously constrained the basic functioning of local governments, and poses a major threat to their short- term sustainability.
60. In addition to Government’s Phase I success, its updated Lettre de Politique de De‘veloppement Rural it la Base (January, 2007) underscores their commitment to continued progress and reform on fiscal, administrative, and political decentralization. Maintaining and strengthening political resolve at the highest levels of the Government will be critical to the sustained success and long-term viability of decentralization. In particular, the Government needs to address the contradictions and confusion caused by simultaneous deconcentration and decentralization at the local level. As such, the program will continue to push for substantive policy reform with respect to decentralization, geared toward the establishment of transparent, equitable, and sustainable structures and mechanisms for local governance.
E. Critical risks and possible controversial aspects
Risks Risk Mitigation Measures Risk Rating with Mitigation To project development objective Weak political leadership to Continued dialogue and seeking out Modest complete the necessary reforms of “champions” within the related to decentralization Government to support continued fiscal and administrative devolution and show that this is a win-win proposition.
Political instability disrupts Exogenous- factor Substantial project implementation To component results
17 Centrally appointed Establish clear “rules ofthe game” to Substantial administrators at regional, transform deconcentrated entities prefecture and sub-prefecture into supporters of local development levels undermine effective at CRD level. functioning ofCRDs Process of functional Project will support fiscal transfers to Substantial devolution not initiated by the meet recurrent costs oflocal Government governments and experiment with devolving staff in one sector to create demonstration effect. Project staff fails to transition Job descriptions will be revamped Modest from “command and control and new recruitment process mode” to “mentoring and undertaken to ensure appropriate monitoring” role in the field. mandate and professional background ofstaff. Fiscal transfers to meet A Phase I1trigger is the Modest recurrent costs ofCRDs not implementation ofthis transfer made mechanism. Manipulation ofproject Planning process focused on Modest activities for personal or inclusion of diverse stakeholders and political gain. transparency. Strong accountability mechanisms to be put in place at decentralized levels, including participatory M&E at CRD and community levels. Misappropriation ofproject Strong fiduciary, accountability, and Modest funds. transparency mechanisms built into design, including unannounced, random technical and financial audits
Overall risk rating
6 1. Follow-up to the Country Financial Accountability Assessment (CFAA) conducted in 2003, shows that Guinea continues to make progress in the modernization of its public financial management process and structures. Over the last three years there has been a noticeable improvement in many of the basic elements of public financial management; however the country risk is still rated high. Taking into consideration (i)the country context, (ii)the capacity of the implementing agencies as demonstrated during the first phase, (iii)the mitigation measures and project implementation procedures in place, (iv) the Bank’s capacity to detect problems through regular supervision missions, SOE reviews, audit report reviews, and (v) the CNC’s capacity for adequate and timely follow-up on problems identified, the overall project risk from a financial management perspective is rated substantial. The financial management arrangements of the project are designed to ensure that funds are used for the purpose intended, and timely information is produced for project management and Government oversight. They are judged satisfactory and in compliance with IDA fiduciary requirements.
18 F. Loadcredit conditions and covenants
62. There will be no conditions for Board presentation. The following will be conditions of effectiveness ofthe IDA grant:
a. The Recipient has established the Project Steering Committee in form and substance satisfactory to the Association;
b. The Recipient has adopted, through the Project Steering Committee: (i)the Project Implementation Manual; and (ii)the work program and budget for the first year of Project implementation, all in form and substance satisfactory to the Association;
c. The Recipient has recruited to the Project Coordination Unit for purposes of Project implementation, the following staff with qualifications, experience, and terms of reference satisfactory to the Association and in accordance with the procurement procedures outlined in the Financing Agreement: (i)a National Coordinator, (ii)a Technical Operations Officer, (iii)an Administrative and Financial Management Officer ; (iv) a Procurement Officer ; and (v) a Monitoring and Evaluation Officer;
d. The Recipient has appointed an external auditor, with qualifications, experience, and terms ofreference satisfactory to the Association.
63. The following will be a dated covenant in the IDA grant:
a. The Recipient shall, no later than two years after the effectiveness date: (i)adopt a realistic strategy and action plan, both in form and substance satisfactory to the Association, for the progressive deployment of Community Receivers to Rural Development Communities; and (ii)prepare and furnish to the Association an evaluation, in form and substance satisfactory to the Association, of a pilot phase ofimplementation ofsaid strategy.
IV. APPRAISAL SUMMARY
A. Economic and financial analyses
64. Because ofthe demand-driven, dispersed and flexible nature of its activities, the Project does not lend itself to the standard quantitative cost-benefit or least-cost analysis. The ex-ante economic analysis is therefore couched largely in qualitative terms. However, the economic rationale of the Project remains strong and it is possible to demonstrate that (a) the Project will generate substantial economic benefits; and (b) compared with alternative approaches, the approach adopted by the Project improves the cost-efficiency and sustainability of the investments and activities undertaken.
65. The design of the Project incorporates measures to maximize the economic benefits. First, the Project Implementation Manual will include eligibility criteria for specific
19 investments to ensure that they are economically justified (e.g. number ofpeople served by spot improvement of a village access road, distance from next water point for construction of a well or borehole, etc.). Internal Rates of Return for individual subprojects, least cost alternatives, and cost per beneficiaries will be used where feasible or applicable, for the larger sub-projects. Second, an external technical review will be carried out annually to assess, on the basis of a representative sample, the technical quality of the sub-projects, their cost, and their socio- economic impact. The baseline survey will allow quantitative assessment of the development impact of the Project as a whole. Illustrative examples of the anticipated economic benefits are described in Annex 9.
66. The Project has been designed to enhance cost-efficiency and sustainability. Efficiency gains, due to increased relevance of investment decisions, are expected to be derived from the decentralized decision-making and implementation process. Experience with investment funds for decentralized rural development projects in Latin America and Asia has shown that communities generally choose investments which can be expected to have a very high rate of return, such as water supply, rehabilitation ofroads and schools. In addition, decentralization of decision-making not only creates incentives to keep investment costs low and the quality of service delivery high, but also increases the likelihood of investment sustainability. Data collected under Phase I show that the costs of primary school construction, for example, is about 19 % lower than those constructed under the centralized national education program.
67. Financial: The impact of sub-projects on recurrent costs at the village level will be evaluated during their identification and provisions will be made to ensure the operation, maintenance and renewal ofthose investments. In some cases the beneficiaries will assume the recurrent costs directly (e.g., productive investments of a public nature, water supply); in others, adequate provision will be made in the budget of the responsible ministry (e.g., schools, health posts). Emphasis will be put on cost-minimization measures and on anticipating additional funding requirements to ensure investment sustainability.
68. Fiscal Impact: The long-term objective is for CRDs to be able to raise fiscal resources from increased local economic activity, thereby contributing to the funding of their local development plans while reducing the need for fiscal transfers from the central government. In the short-to-medium term, fiscal transfers from the central government will be needed to cover what the beneficiary contribution does not. It must be recognized that the long-term capacity- building needs of CRDs will require considerable support, and that such support will need to come largely from the outside, including support to cover the operating costs of the Project and intermediaries. Such operating costs are part of the investment required to build institutional, and ultimately, fiscal sustainability.
B. Technical
69. Responsibility for project implementation is shared among existing government institutions and CRDs. The implementation of the Local Investment Fund is the responsibility of CRD who will identify, submit for financing and implement their micro-projects including financial and procurement responsibilities. The first phase demonstrated that by empowering local communities through a participatory process, existing latent technical and management capacity will be released, improved and consolidated. The technical knowledge required for the
20 implementation of basic socio-economic infrastructure has been mostly found in the local communities.
70. Phase I1 will continue to provide technical assistance and training to community leaders and local elected officials and encourage the development of a local civil service. It will also earmark resources for technical assistance for contracting local expertise from artisans, private sector service providers and the public sector in the process of formulating and implementing their investment programs. Finally, technical criteria and standards developed during the first phase will be updated and consolidated as part of the Project Implementation Manual and will serve local communities in the implementation oftheir local infrastructures.
C. Fiduciary
7 1. An assessment of financial management arrangements for Phase Iwas carried out by the World Bank’s financial management team in June 2005 and updated in October 2006. Taking into consideration (i)the country context, (ii)the capacity ofthe implementing agencies (i.e. the CNC, the DND, and the CRDs) as demonstrated during the first phase, (iii)the mitigation measures and project implementation procedures in place, (iv) the Bank’s capacity to detect problems through regular supervision missions, SOE reviews, audit report reviews, and (v) the CNC’s capacity for adequate and timely follow-up on problems identified, the overall financial management risk was rated substantial. Details on the mitigation measures in place to address the inherent and control risks identified are provided in Table 7.1 ofAnnex 7.
72. Procurement at the central level will be handled by the CNC, whose procurement capacity has been evaluated annually during the course of first phase and has been found satisfactory. Demand-driven micro-proj ects financed under the Local Investment Fund will be procured in accordance with the provisions of paragraph 3.17 of the procurement guidelines. These guidelines provide much flexibility for working with communities in as much as procedures are acceptable to IDA. Procurement procedures for demand-driven micro-projects have been detailed in the existing Project Implementation Manual and a recently revised Community Procurement Manual. These have proven to ensure transparent and efficient management oflocal procurement.
73. During the financial management and procurement assessments of the CNC, it was agreed that the following additional staff would be added: an accountant, a procurement assistant, and a data base manager. The additional staffing was deemed necessary to (i) reinforce the team in scaling-up to national coverage, (ii)address weaknesses in the M&E system, and (iii)handle additional responsibilities related the management of two GEF projects that will be integrated into the activities ofthe second phase ofthe PACV.
D. Social
74. The project design is based on a highly participatory process, involving local governments, beneficiary communities, and individual citizens. The process of planning and implementation local development activities supported by the project will make every effort to ensure wide social inclusion involving all districts and marginalized groups. The project will fine-tune participatory tools already available and widely used in the country in order to provide
21 an improved framework for ensuring that the project is socially sound. In addition, lessons from the first phase, which were used in the design, demonstrated that the project has the ability to impact social capital in local communities and therefore a powerful tool to improve living conditions and to maintain social harmony. Project implementation will make every effort to maximize its impact on social capital.
E. Environment
75. The Project will finance demand-driven activities which will be identified on the basis of a participatory strategic planning process. Based on experience with similar sub-projects, potential limited negative environmental and social impacts may include soil erosion, water and soil pollution, loss ofvegetation, and an increase in solid and liquid waste.
76. Since the locations and potential localized impacts of the future sub-projects are not known in advance, the Recipient has prepared an Environmental and Social Management Framework (ESMF) that outlines an environmental and social screening process for sub- projects and includes: (a) guidelines for an environmental management plan; (b) environmental guidelines for contractors; and (c) a summary of the World Bank’s safeguard policies. Incremental funding from the GEF projects being integrated into Phase 11 of the PACV will help strengthen the capacity for environmental screening of sub-projects and will lead to an increased awareness of environmental issues on the part of all institutions involved in PACV implementation.
F. Safeguard policies
77. From an environmental and social safeguard point of view, the project is considered Category B, whereby the environmental and social impacts of the project are expected to be minimal, site specific, and manageable to an accepted level. The two World Bank Safeguard policies applicable to the project are: Environmental Assessment (OP 4.0 1); and Involuntary Resettlement (OP 4.12).
Safeguard Policies Triggered by the Project Yes No Environmental Assessment (OP/BP 4.0 1) [XI [I Natural Habitats (OP/BP 4.04) [I [XI Pest Management (OP 4.09) [I [XI Cultural Property (OPN 11.03, being revised as OP 4.1 1) [I [XI Involuntary Resettlement (OPBP 4.12) [XI [I Indigenous Peoples (OP/BP 4.10) [I [XI Forests (OP/BP 4.36) [I [XI Safety ofDams (OP/BP 4.37) [I [XI Projects in Disputed Areas (OP/BP 7.60)* [I [XI Projects on International Waterways (OP/BP 7.50) [I [XI
* By supporting the proposedproject, the Bank does not intend to prejudice thepnal determination of the parties’ claims on the disputed areas
22 78. Given the demand-driven nature ofthe project, the range, scale, locations and number of sub-projects, are unknown ex ante. The difficulty inherent to defining what the real environmental and social impacts of envisioned sub-projects are, and determining what mitigation measures should be put in place, require the development of an Environmental and Social Management Framework (ESMF) and a Resettlement Policy Framework (RPF), a social safeguard instrument used to addressing potential land acquisition or loss of economic activity issues on the part ofindividuals or groups of individuals in project intervention zones.
79. Together, these safeguard instruments, are considered as both planning tools and a means for a harmonious integration of the project in its bio-physical and social environment and as a way to maximize positive effects on the same environment. The ESMF and RPF include institutional arrangements, outlining role and responsibilities for the various stakeholder groups involved, for screening, review and approval of sub-proj ects, as well as implementation and monitoring of their mitigation measures. Both instruments were prepared in full compliance with World Bank and national safeguard policies, following a broad consultative process involving relevant stakeholder groups. They were cleared and disclosed in-country (February 17,2006) and at the World Bank InfoShop (November 20,2006), prior to appraisal.
G. Policy Exceptions and Readiness
80. No Policy Exceptions are sought. The Financial and Administrative Manuals, the Local Investment Fund Manual, the Monitoring and Evaluation Manual were reviewed during the appraisal mission. The overall Project Implementation Manual is being finalized to incorporate appraisal mission conclusions and its adoption is a condition of effectiveness. The procurement plan, budget and work program for the first 18 months have been received as a condition of negotiations.
23 Annex 1: Country and Sector or Program Background GUINEA: Village Communities Support Program (Phase 11)
Country Context
1. Guinea possesses a generous natural resource endowment, with fertile topsoil covering one of the world’s richest bauxite deposits, in addition to gold, diamonds, and several other minerals. Despite this, GDP growth has slowed recently, to an average of 2.3% over the 2003 to 2005 period. While there have been notable improvements in gross school enrolment (77%), in vaccination campaigns, and in the campaign against HIV/AIDS, Guinea’s other social indicators have not fared so well. Under-five malnutrition has deteriorated, with 35% estimated to be underweight in 2005 (compared to 26% in 1999), only 42% of Guineans have access to clean water resources, and there are only 9 doctors per 100,000 people. In real terms, GDP growth was 1.2% in 2003 and 2.7% in 2004, compared to an annual population growth rate of 3.1%. Per capita gross national income declined from $450 in 2000 to $386 in 2004. Most worrying for the government however, are projections that indicate an increase in the overall poverty rate from 49.2% in 2002 to 56% in 2005.
2. Over-reliance on extractive industries to supply much-needed revenue has led the country to neglect other sectors-thereby limiting growth and opportunity. Two-thirds of Guineans rely on agriculture as their primary source of income. Despite this, agriculture, livestock and fisheries account for only around 20% of GDP and 10% of exports. Most production is for direct consumption and a poor road network precludes getting produce to market. While agriculture has grown at an average annual rate of 4% over the past decade, most growth has come from expansion of cultivated areas rather than through improvements in productivity.
3. Perhaps most importantly, Guinea suffers from the consequences of decades of poor governance, as evidenced by the following: endemic corruption; weak political institutions; a lack of inclusiveness and dialogue; poor legal and regulatory frameworks; impunity; and a reticent yet resilient civil society. However, Guinean civil society has recently spurred dramatic political reform. In January and February 2007 a series of nationwide strikes paralyzed the country. With inflation rising to 40% in 2006, severe depreciation of the Guinean Franc and a complete lack of service both in water and electricity, demonstrations animated all principal cities. Close to 200 people were killed in clashes between demonstrators and security forces. The Trade Union movement served as a catalyst for a broad popular movement demanding the resignation of the President and better governance. Civil society’s pressure led to the nomination of a Prime Minister with substantial authority (not foreseen by the Constitution of Guinea) and the creation of an entirely new cabinet in April 2007. The reformist government has vowed to “break radically with the corrupt practices of the past”, and taken immediate measures to ensure accountability and transparency in the management of public finances. Early discussions with government underscore its political will to undertake sweeping reforms in an effort to help Guinea realize its development potential and respond to the population’s high expectations, a daunting challenge in the current economic and financial context.
4. The political context described above has led to the following economic problems: double digit inflation over the past several years; an insecure and corrupt investment climate; an
24 undiversified economy; limited regional and international trade; inadequate economic and social infrastructure; and limited human capacity to obtain and manage financial resources. As such, economic factors pose the single greatest source of tension in Guinea today, which is as much a symptom of the country’s systemic socio-political problems as it is a source of increased instability and conflict.
Government Strategy
5. The Government’s 2002 Poverty Reduction Strategy Paper (PRSP) centers on three pillars: i) sustaining faster economic growth and creating income-earning and employment opportunities, particularly for the rural poor; ii) improving and extending access to basic services; and iii)improving governance and strengthening institutional and human capacity. In line with the second and third pillar, the PRSP also outlines the Government’s policy with respect to decentralization for improved governance and service delivery.
6. Decentralisation reforms began in 1986 and the first two rural authorities/governments (Communautks rurales de de‘veloppement, CRD) were piloted in 1987 in Timby Madina in the Fouta Djallon and Farmoreah in Guinea Maritime. The change process has been gradual, with a number of obstacles slowing the process over the years, including: resistance to change at central levels, coupled with a lack of understanding of the benefits of decentralization at the local level; lack of human, physical, and financial capital to promote and sustain reforms; lack of effective coordination, despite structures being established to undertake this role; confusion as to the mandates of different administrative structures and levels. In addition, the Government’s inability to finance such reforms, particularly with respect to meeting the recurrent costs of functioning local governments, has also contributed to a slow transition.
7. To address the aforementioned constraints, the Government has committed to achieving functional devolution to the local governments (CRDs and Communes Urbaines, CU). This change process is elaborated in the Code des collectivitks locales, which was passed into law by the National Assembly in May 2006. Some key features of the Government’s decentralization strategy include: (a) establishing an effective funding mechanism that ensures the direct transfer of financial resources from the central government to the services in the front line; (b) strengthening the accountability of government agencies to the ultimate beneficiaries and their ability to deliver services to the rural communities; (c) promoting genuine collaboration between service providers and beneficiaries in the resolution of constraints to service delivery, and empowering local communities to take charge of their needs; (d) and making professional merit and service delivery performance key factors in determining rewards and sanctions in public sector entities.
8. Despite significant obstacles, the Government has demonstrated its commitment to decentralization by undertaking important reforms critical to its effective implementation. Political decentralization has progressed, with the adoption of a new Electoral Code in August 2005 and the most recent local government elections being held in December 2005. As a result, a cadre of elected representatives has a fresh mandate with respect to local governance, and is poised to act as champions of reform associated with meaningful decentralization over the coming years. These councilors are elected based on proportional allocations based off of party
25 lists, to a term of four years. They sit on a Community Council (Conseil Communautaire, CC), which is presided over by a President, elected from amongst the Council’s membership. With these advances on the election front, an equally strong commitment will need to be made by the Government to sensitize them as to their roles and responsibilities, and to build their skills with respect to their mandate.
9. The new Code des collectivitks locales brings about major changes to the decentralization framework in Guinea and ushers in a new era with respect to fiscal and administrative decentralization. It guarantees the existences of CRDs and CUs as devolved entities that have the autonomy to manage their own affairs. At its core, the Code foresees the transfer of significant service delivery responsibilities to local governments, especially in areas such as basic health and education, water resource management, and local development planning. On balance, these make local governments the main locus of service delivery at the local level. Compared to previous legislative frameworks, the responsibilities of local governments are harmonized, clear, and expanded.
10. On the fiscal side, the Code stipulates that the Government must transfer resources to compensate for the net increase in local government expenditures resulting from transfers of responsibilities. It defines three sources of local government revenue: own source revenue, shared revenue, and financial transfers for recurrent expenditures. Furthermore, the Government established a new budget classification system that identified resources earmarked for expenditure at the local level, with the Code complementing this by specifying all revenue sources (c.f. Article 434) and own revenue sources (c.f. Article 442). The Code also provides significant detail on the rules ofthe game surrounding revenue collection and utilization. To date however, CRDs have been unable to collect the majority of the taxes at their disposal due to a lack (i)of understanding as to entitlements at this level, and (ii)of human resources to oversee collection. The Code also stipulates two key posts at the CRD level related to fiscal decentralization, a Community receiver (Receveur communautaire) and an Administrative accountant (Comptable administrative).
11. This situation is constrained by the fact that the Government’s Ministry of Finance has not appointed Receveurs to any CRDs. This is perhaps the single greatest inhibitor of fiscal decentralization in Guinea. At the central level, there needs to be a better understanding as to modus operandi related to fiscal decentralization, particularly as it relates to the national budget formulation process and the intergovernmental transfers to the CRD level that will be required for decentralization to be viable in the short- to medium term. For example, the Code specifies an intergovernmental transfer (c.f. Article 373) to help meet CRD’s recurrent costs; no such transfer has been made to date.
12. The Code des collectivitks locales also provides significant detail regarding administrative decentralization. It foresees the creation ofa territorial public service and provides local governments with the authority to recruit, oversee, manage, and terminate decentralized staff. It ascribes significant responsibilities to CRDs, including management of finances, rural development and the environment, health and education, personnel management and training, security and the judiciary, and communication, sensitization, and information. However, the Code is silent on the nature, scope, or pace of functional devolution to be undertaken by the
26 respective line ministries. As such, a major challenge for the Government in moving forward its decentralization agenda will be to create appropriate incentives for the sectors to undergo a difficult change process that results in human and financial resources being devolved to the local government level. This will include negotiating, detailing, and codifying the expenditure assignments associated with the responsibilities assumed by local governments. It will be important for local governments themselves to have a clear sense ofwhat the costs are for which they bear responsibility, and for citizens to have access to the same information for accountability purposes.
13. In addition, to being tasked with the oversight of all public services within their locality, CRDs are mandated to oversee the development of a Local Development Plan (LDP) and an associated Annual Investment Program (AIP) for development activities (c.f. Article 5 1 1). These outputs must be preceded by a participatory socio-economic diagnostic process that is transparent and consultative in nature (c.f. Article 5 13). The investments foreseen under the AIP are also governed by guidelines in the Code that require detailed information on the technical, financial, and logistical aspects of the activity (c.f. Article 534). Although strides have been made in the local development planning process, significant improvement is needed in order for it to serve as a baseline document for tackling poverty and allocating the locality’s budget.
14. A local administration is attached to the CRD, whose principal mandate is to support the functioning of the President of the CRD. As previously mentioned, this administrative structure is barely functional due to a lack of resources, with the sole occupied post being that of the Community Secretary (Secrktuire Communuutuire). The Code also outlines the process of functional devolution, which stipulates that public civil servants are to be under the responsibility of the collectivitks locules (i.e. CRD or CU), and comprise the second part of the local administration. However, it is critical to note that this vision directly conflicts with Guinea’s experience under the French administration and under its own successive political regimes. A highly centralized structure has been in place for decades, whereby a “deconcentrated” administration is put in place at various administrative levels (in the case of Guinea, at the prefecture and sub-prefecture levels), but which is accountable to the central government, and not local citizens.
15. As a result, Guinea now finds itself in a profound paradox, whereby a progressive piece of legislation outlines aggressive functional devolution (transferring the human and financial resources, along with decision making power to elected local governments - c.f. Article 376), while deconcentration is firmly entrenched on the ground. As such, all sectoral staff are under the control ofthe prefect and sub-prefect and paid by and report to their respective line ministry. In contrast, the Code envisages these civil servants serving under the Conseil, with the associated budget being transferred to the local government. The Government’s professed commitment to decentralization and devolution requires urgent attention and support, in order for transformative legislation to be turned into practice on the ground.
16. The Government recognized the need for technical and financial support in order to make this process a reality. In 1999, it committed itself to two programs that were to support the change process, one which would focus on decentralization and the strengthening ofprocesses at the local level (the “demand-side”), and one focused on improving service delivery by
27 transforming deconcentrated entities into support structures for local governments (the “supply- side” of public service delivery) . The latter support to deconcentration was spearheaded by the World Bank supported Capacity Building for Service Delivery Program (CBSDP). The CBSDP was conceived as a three phase, 12 year APL in support of the Government’s decentralization strategy. Its long term development objective was to strengthen centralized and decentralized administrative systems to provide effective public services to the rural population and empower local institutions to take charge oftheir own needs. This was to be achieved through a particular focus on working with heretofore deconcentrated entities at prefectoral and sub-prefectoral levels. Unfortunately, this program was cancelled in 2005 due to non-performance and evidence of mismanagement.
Program Description
17. The demand-side support to decentralization comprises the program described in this document. The long-term objective of the Village Communities Support Program (Programme d’Appui am Communaute‘s Villageoises, PACV) is to strengthen local governance in rural Guinea and promote social and economic empowerment of the rural population, including .women, youth and other marginalized groups. The long-term vision is that, upon completion of the final phase, local communities and their representative local governments will have developed: (i)the capability to identify, prioritize, plan, and manage their own infrastructure and service needs; (ii)the capacity to mobilize and use transparently the resources necessary to finance the establishment, rehabilitation, and maintenance of basic community infrastructure; (iii)the ability to oversee the implementation, operation and continued maintenance of community infrastructure either by contracting private firms or through the support of deconcentrated government services; and, (iv) the capacity to sustain the development efforts and to enhance good governance practices. The program was designed with three phases.
18. Phase I (Scale-up Initial Pilots and Initiate Reforms, 1999-2007): Phase I began a learning process for implementing decentralized rural development by supporting local infrastructure investments and institutional reforms. The project’s development objectives were to (i)establish an operationally effective and efficient, decentralized system for local development; and (ii)increase access ofthe rural population to basic infrastructure and services.
19. The first phase included four components: (i)a demand-driven Local Investment Fund (LIF) channeled resources directly to rural communities in Communaute‘s Rurales de De‘veloppement (CRDs) to finance basic infrastructure. The LIF used a matching-grant mechanism, with a 20% contribution at the local level, and was designed to evolve into the Government’s main instrument for transferring financial resources to rural communities for their development needs. The total first phase funding for these activities was approximately US$20.0 million; (ii)The Support to the Local Development Process focused on fiscal decentralization, institutional reforms, and building the capacity of CRDs to enable local institutions to manage their own development. The component supported streamlining the legal and regulatory framework for decentralization; effective fiscal and financial decentralization; building CRDs’ capacity to develop and manage local development plans (Plan de Developpement Local, PDL); strengthening the capacity of the Ministry of Territorial Administration and Decentralization (Minist&-e de 1‘Administration du Territoire et de la De‘centralisation, MATD) agencies and
28 services, which are responsible for decentralization; and sensitizing and training elected local officials and CRD administrative and technical staff in the areas of local governance, planning and financial management. Total first phase funding for these activities was about US$10.5 million; (iii)a priority program for the rehabilitation and maintenance ofrural roads, at a cost of approximately US$1 1 million; and (iv) program management, monitoring and evaluation. Total first phase funding for these activities component was about US$6.7 million.
20. Phase I results: The first phase of the PACV greatly improved the access of communities to basic social services, including health, education, and potable water, with the construction of 263 elementary schools, 155 health centers and dispensaries, and 167 water holes. In addition, the first phase supported the establishment of 46 communal forests. The rehabilitation of over 3,000 km of feeder roads and construction of 35 bridges positively impacted access to markets and thereby provided a production incentive for local economies. Unfortunately, no economic analyses were carried out to measure their impact. Progress towards the PACV's first phase objective of strengthening local governance and promoting the rural population's social and economic empowerment is deemed satisfactory. The first phase of the PACV has had a strong impact on local governance, with local communities feeling increasingly empowered to hold officials accountable for the efficient implementation of development activities. Collaboration between decentralized services and local government also improved following intensive training of elected officials and decentralized civil servants, although chronic budget issues made this collaboration less effective than planned. Collection of the local development tax increased dramatically (in some cases by as much as 50 percent) in response to the need to raise contributions for local development activities funded by external financiers and the close involvement ofbeneficiaries in the decision-making process.
21. The main weaknesses of the first phase were (i)the difficulty in staffing the health and education infrastructures in a timely manner (within one year of completion of the civil works) because of difficulties at the level of the sectoral ministries to affect adequate staff; and (ii) inadequate implication ofdecentralized services because of insufficient budget transfers from the central and regional levels to staff working at the community level. Originally projected to last five years, the project duration was extended to eight years because of unforeseen effectiveness delays. In addition, additional financing for Phase I in the amount of US$7.0 million was approved in January 2006, in order to leverage the better than expected implementation capacity and results and to scale up the number of CRDs benefiting from the project. The additional financing also enabled preservation of this capacity and implementation momentum while the second APL phase was under preparation. All triggers for Phase Iwere achieved. Table 1.1 below outlines first phase accomplishments with respect to the agreed triggers.
Table 1.1: Status of Phase ITriggers
I I I Phase Itriggers Status
1. LIF disbursements are at least 65 % . On December 31,2005 LIF disbursement rate was 98%. of the planned level (rate revised to As of September 2006, the LIF disbursement rate for the additional financing 55% at MTR) grant approved in January 2006 was 76%.
29 I 1 100 YOof all micro projects (aside from village wells) were successfully 2. 60% of approved micro projects completed. have been successfully completed 1 Only 63% of village wells were successfully completed. Construction of village wells was suspended in 2005 pending results of an in-depth analysis to identify the cause ofthe problems. Financing resumed in 2006, following completion of the analysis and revision of the local implementation manual for village wells.
3. The project implementation manual 1 The PIM was revised in September 2001 and again in May 2002 in order to adapt has been revised on the basis of an it to the concerns of the beneficiaries and the field realities. evaluation and a social assessment 1 The M&E manual, which is an integral part of the PIM, was revised to make it carried out by the end ofyear 3 more operational and local level data collection instruments were re-examined and improved. 1 A community procurement manual was prepared and distributed.
4. The key policies of decentralization 1 A finance law relating to the distribution ofthe local development tax was adopted and fiscal transfers are adopted by the in 2000. The law abolishes the principle of splitting the local development tax (a National Assembly and are being head tax) between the deconcentrated administrative structures and the implemented decentralized community structures -- 100% of the tax now goes to the CRDs. Nomenclature budge'taire has been revised. 1 Code des collectivite's locales which details the new legal framework for decentralization was adopted by the National Assembly in May 2006.
5. Adequate mechanisms were 1 The draft 'De'cret portant re'organisation des circonscriptions territoriales' and established to regulate conflicts the draft 'De'cret de'terminant les conditions de nomination et les attributions des between local and central authorities autorite's des circonscriptions territoriales' were prepared. 1 New laws on the organization and participation of civil society organizations (law on the regime of associations and law on economic groupings, mutuelles, and cooperatives) were adopted in 2005. . A study for the establishment of an 'Observatoire de la decentralisation' was completed. . The electoral code was updated and adopted in August 2005. 6. 70% of participating CRDs have . 100% of the CRD covered by the project benefited from trainings on the following received the planned training topics: animation, decentralization, literacy, simplified management, procurement.
7. Local elections have been held in a 1 Multi-party local level elections were held on December 18, 2005. fair and free manner
8. MID has been reorganized ' The MATD (former MID) was reorganized to create a local development division at the central level and a regional local development representation I (SERRACCO). I 9. 75% of rural roads treated are 1 100% of rural roads rehabilitated by the PACV 1 are being regularly maintained regularly maintained by the CVEP (Comite' villageoise d 'entretien des pistes).
22. Phase I1 - Expansion of Program and Graduation of CRDs: Phase I1 of the PACV expands the program geographically with the aim of reaching all 303 CRDs in the country. The program will increase the range of eligible micro-projects to include all types of collective socio- economic infrastructure, complemented by a short negative list. Planning processes will continue to implicate deconcentrated civil servants, and will strive to better implicate those at the lowest level (the sub-prefecture), in order to build skills amongst key institutions and individuals. Phase I1 will support the Government's National Program for Decentralized Rural Development (NPDRD) outlined in the Government's Lettre de Politique de De'veloppement Rural tr la Base. This renewed focus on a programmatic approach will bring much needed harmonization and
30 coordination to decentralized rural development in Guinea. Phase I1 of the PACV (the project) will initiate and lead the way in this harmonization effort and will help support a national dialogue to that end. It is expected that by the end of Phase I1 all financing for local development planning and implementation will be channeled through a single mechanism, following agreed upon approaches consistent with procedures outlined in the Code.
23. The prefecture will be a particularly important actor in Phase 11, as it will be the locus of coordination and consolidation of lessons at CRD levels. Most importantly, the project will focus on building institutional sustainability related to local development, particularly focused on actors at CRD level. It will also place particular emphasis on local governance issues, in order to counteract a deteriorating national context in this realm. The project will continue to support policy reform related to decentralization, and will support the furtherance of fiscal decentralization and debate on overall functional devolution. The triggers to be reached by the completion ofthis phase include the following:
’ The Community Receivers (Receveurs Communautaires) are in place according to a realistic strategy and action plan that has been validated during the project’s mid-term review.
’ The intergovernmental transfer system for recurrent costs of CRDs is functioning, in accordance with Article 373 ofthe Code des collectivitks locales.
Legislation defining roles and responsibilities of deconcentrated territorial administration and sector-specific technical staff is reviewed for consistency with the Code des collectivitks locales.
1 The local development planning process has been reviewed, widely validated and guidelines have been developed which are reflected in the Project Implementation Manual.
All 303 CRDs are covered by the National Program for Decentralized Rural Development and the Local Development Plan and Annual Investment Program have become the framework for all local level interventions.
24. As referenced earlier, Guinea is confronted with a fragile governance context that includes its classification as a “High Systemic Corruption Risk” country by the World Bank. In light of this situation, the project will put in place several operational measures to mitigate prospective fiduciary risks and to help promote strengthened governance at the local level. As a community-driven program, Phase I1 of the PACV places a heavy emphasis on fostering a culture of transparency, accountability, and overall good governance at the local level. The program is taking several measures to establish and enforce the “rules of the game” related to accountability. This is geared both downstream to citizens and other local stakeholder groups, and upstream to the national level and to development partners. The following table provides an overview of these measures.
31 Table 1.2: Summary of Governance Risk Mitigation for Phase I1
I Proiect Measures I Exnected Governance Imnact I 1. Unannounced, random technical and financial audits at local government (CRD) level and results made public. Will encourage transparency of utilization of funds 2. Financing from the project LIF will be included by CRDs
ountability, and inclusion
25. Phase I11 (Consolidation and Institutionalization of Reforms, 4 years): Phase I11 further consolidates the fiscal, administrative, and political decentralization reforms to make the process of local development sustainable. It will also continue to strengthen local capacity to undertake a wide range of collective micro-projects, expand the role of the private sector, and further integrate civil society into the national development process.
32 Annex 2: Major Related Projects Financed by the Bank and/or other Agencies GUINEA: Village Communities Support Program (Phase 11)
Sector issue
Rural and local Projet de DCveloppement Social AfDB development Durable de Haute et Moyenne GuinCe (PDSD-HMG) Rural and local Program de DCveloppement Local en FENUPNUD development Guinee (PDLG) Rural and local Rehabilitationand Development European Union development Program in GuinCe Forestikre
33 Annex 3: Results Framework and Monitoring GUINEA: Village Communities Support Program (Phase 11)
Results Framework
PDO Project Outcome Indicators Use of Project Outcome Information 1 Percent ofcitizens in supported CRDs CRDs are enabled to fulfill their who participated in the local 1 Determines whether the planning legal mandate by planning and development planning process process is representative of implementing inclusive local diverse stakeholder interests & development activities, and 1 Percent ofcitizens who consider that needs improving revenue performance their views have been taken into to sustain their recurrent costs account in the local development 1 Determines if infrastructure are planning process properly staffed
1 Percent ofinfrastructure financed by the 1 Demonstrates status offiscal project staffed on completion viability of local governments
1 Annual head tax collection rate in supported CRDs Intermediate Outcomes Intermediate Outcome Indicators Use of Intermediate Outcome Monitoring: 1 Percent ofCRDs that utilize some 1 Assesses transparency in the use 10-1: CRDs receive and means to inform citizens on financial offunds manage funds transparently to details (budget and Annual Investment implement and maintain Program) technically sound infrastructure 1 Safeguards utilization ofproject 1 Percent oftechnical audits at CRD level resources that are satisfactory 1 Determines if maintenance 1 Percent ofCRDs that allocate adequate expenses have been integrated funds for maintenance into the planning process
I Percent ofCRDs with single Annual 1 Indicates whether the [O-2: CRDs prepare and Investment Program that reflects decentralization process is implement development and multiple funding sources understood by the various investment plans in an inclusive stakeholders. aanner, with the adequate I Percent ofwomen on CRD Assesses inclusiveness and role of jupport from deconcentrated management committees women in management process staff. I Percent ofLocal Development Plans 1 Shows whether the prefecture where the sub-prefecture sector staff administration is playing its have participated in the full project critical support and quality- cycle (diagnosis, planning, and control function with respect to implementation) local development I Percent offinancial and procurement 1 Indicates if management and [O-3: Project components are audits at project level that are oversight ofproject activities on :ffectively coordinated and unqualified annual basis at national and nonitored I Percent ofCNC quarterly and annual decentralized levels is effective report submitted in a timely manner to all actors I Demonstrates whether prefecture I Percent ofprefectures provide the level monitoring role is being required monitoring undertaken.
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I Annex 4: Detailed Project Description GUINEA: Village Communities Support Program (Phase 11)
1. The overall development objective of the second phase of the Village Communities Support Program (the Project) is for Rural Development Communities (CRD) to be enabled to fulfill their legal mandate by planning and implementing inclusive local development activities, and improving revenue performance to sustain their recurrent costs.
2. Through phased implementation, and in collaboration with other financial partners, Phase I1 will intervene in all 303 CRDs in Guinea over a period of 4 years. Phase I1 design builds on implementation lessons from Phase I. The project will also build on the considerable successes achieved during Phase I in the policy reform realm, particularly with respect to: . Supporting the Government in implementing its new Code des coZZectjvith locales (whose preparation and ratification was a key accomplishment of Phase I), which provides a detailed framework for decentralization in Guinea.
Building the awareness and skill sets of a recently elected cadre of local councilors. Local elections were a Phase I trigger, which has permitted the process of political decentralization to advance thanks to local elections that were held in December 2005. . Reinforcing the Government’s commitment to and implementation of its national program on decentralized rural development.
3. Phase I1 will integrate two Global Environment Facility (GEF)-financed projects into its activities to strengthen the environmental and natural resource management aspects of the local development planning and prioritization process. These projects are geographically limited in scope with the Coastal Marine and Biodiversity Management Project (CMBMP) focusing on coastal communities in Lower Guinea, while the Community-Based Land Management Project (CBLMP) focuses on communities in several critical watersheds in Middle Guinea.
Project Components
4. The project will be built around three components: (a) Local Investment Fund; (b) Strengthening Capacity for Decentralized Local Development; and (c) Project Coordination, Monitoring and Evaluation.
Component A: Local Investment Fund (US$8.9 million IDA)
5. The objective of this component is for CRDs to receive and manage funds transparently to implement and maintain technically sound infrastructure. The Local Investment Fund (LIF) will finance community-driven activities identified on the basis of a participatory and socially inclusive planning process at the CRD level. It provides an opportunity for rural communities to take charge of local development challenges through experience with participatory planning, budgeting, financial management, and implementation of development activities. During Phase 11, the project will demonstrate to Government ministries (particularly key sector ministries), bi- lateral and multi-lateral donors, and the private sector that local governments are capable of
38 handling increased fiscal responsibilities, The long-term vision would be to convince these stakeholders that local development is best financed through direct budgetary support to local governments, or indirect budget support to local governments (e.g., budget support to the central government, which is then transferred to local governments through a grant system), instead of financing discrete projects.
6. The LIF will have two windows under Phase 11. The first window will finance public interest socio-economic infrastructure identified by CRDs in their Local Development Plans. It will be a replication of the first phase of PACV and will complement the local government’s investment budget and will aim at improving access to basic socio-economic infrastructure in rural areas. The identification, preparation and implementation of activities will be the responsibility ofthe CRD, which will use participatory processes and involve participation from all beneficiaries. In addition, the beneficiaries will have the responsibility of contract management and monitoring and evaluation, and maintenance ofthe infrastructure.
7. The second window will support activities aimed at ensuring a sustainable management and protection of natural resources through participatory approaches. Incremental funding for this window will come from the GEF-financed projects. Since these projects are geographically limited, this window will not be national in scope. A geographic expansion of the CBLMP will be reviewed at the time of its mid-term evaluation. The possibility of a third, “inter-CRD”, investment window to finance larger scale investments identified in the Local Development Plans and of interest to multiple CRDs will be reviewed at the time of the mid-term evaluation. The procedures applicable to the operation of the LIF are detailed in the Project Implementation Manual (PIM) and summarized below.
8. Participatory Diagnostics and Preparation of Local Development Plans (LDP) : All CRDs will be required to develop a strategic development plan that outlines the locality’s development vision for a four year period. The process of developing the plan will be directly supported through Component B, and will implicate a diverse set of stakeholders within the CRD in order to articulate an inclusive multi-sectoral vision. The development ofthe Plan itself will be preceded by a participatory diagnostic, as envisaged in Chapter I1 of the Code. This diagnostic will focus on identifying development opportunities and priorities first at the district level (which is an agglomeration of approximately 5-10 villages), which is then prioritized by CRDs themselves.
9. Development of Annual Investment Program (AIP): Annual investment programs will be based off the LDP. This will outline all capital investments to be undertaken within the locality during the fiscal year, and will adhere to Article 529 of the Code. Unlike Phase Iwhere the AIP was considered a plan for the Project, in Phase I1 the AIP will outline all investments, in all sectors, to be supported by all sources of revenue (including, but not limited to, own revenue, transfers from the central government, transfers from sector ministries, transfers based on donor support). The technical and fiduciary review of the AIP will be placed at levels corresponding to their area of implementation and their complexity, in keeping with the spirit of subsidiary that is critical to a successful decentralization process. As such, Phase I1 will heavily implicate deconcentrated staff at sub-prefecture level in the review of AIPs, unlike Phase Iwhen this was done solely at prefecture level.
39 10. Eligible activities: In Phase I1 participating CRDs will have an open menu of socio- economic infrastructures, of a public goods nature, from which to choose. A negative list identifying types of activities the project will not finance will be detailed in the Project Implementation Manual. This will give participating CRDs greater discretion over investment decisions than under Phase I,and result in greater diversity ofthe types of sub-projects financed by the project. There are several justifications for this change. First, approximately 83% of sub- projects financed during Phase Iwere schools, health posts, wells, or water points. As the project transitions in this phase to support the decentralization process, more emphasis will be placed on a substantive development planning process at CRD levels, which necessitates a move away from prescribed infrastructure toward a more open menu. Second, while 60% of Phase Isub- projects were either schools or health posts, over 25% of these were found to be non-functional in June 2006. Diversifying the menu of options will enable CRDs to finance investments that will have lower recurrent costs, along with identifying those that may be less dependent upon line ministries for subventions to support their effective operation. Finally, CRDs need to transition toward undertaking development planning activities that are broad-based, and thus multi-sectoral in nature, as referenced above. On the fiscal side, CRDs therefore need to make strategic decisions and trade-offs when considering where resources shall be allocated.
11. Size of the LIF: Phase I1 will utilize a formula based on population to make annual allocations to participating CRDs. Simplified methods for including poverty criteria in the formula are being assessed. This is a major shift from Phase I,which gave a uniform amount of US$50,000 equivalent per CRD per annum. The change to a formula-based approach isjustified given that this approach more closely approximates an intergovernmental transfer mechanism that would be developed. Such an approach also provides grants that are proportioned according to the relative needs of localities.
12. Cojnancing: As with Phase I,CRD co-financing will come in the form of cash and in- kind contributions. However, an important lesson from Phase Iwas that the uniform 5% cash and 15% in-kind contribution often proved impossible for poorer localities to raise. As such, a graduated, progressive scale will be developed for beneficiary contributions and guidelines will be detailed in the Project Implementation Manual.
13. Criteria for accessing LIF Specific criteria will be established for local governments to meet prior to accessing their annual LIF allocation, which will be outlined in the PIM. These criteria will relate to the fiscal, technical and procedural conditions to be met. An indicative list of these criteria include, inter alia:
Year 1:
m The LDP must have been adopted by the Community Council (Conseil communautaire, CC) and reviewed by Prefectoral Development Service (Service Pre'fectoral de De'veloppement, SPD) . The AIP must have been approved by the SPD; m All activities in the AIP must have been identified in the LDP;
40 . Specific activities to be financed by the LIF must not appear on the project’s negative list; . The AIP must be posted in a public place in each CRD at least 15 days prior to submission for approval. Subsequent Years: . All criteria above must be met; . A procurement plan for the investments must be presented; A plan for maintenance of infrastructure is prepared and taken into account in the local government budget.
14. Performance Assessments: Each participating CRD will undergo an annual performance assessment that shall be undertaken by the Project’s Regional Support Teams (Equipe regionale d ’appui, ERA) in collaboration with the relevant government structures. This technical and financial review will ensure CRD adherence to the Project’s PIM. Specific procedures for the performance assessment will be outlined in the PIM. In addition, a percentage of CRDs will be randomly selected each year to undergo a financial audit. This audit will investigate the utilization of funds provided by the LIF, in order to ensure their utilization in accordance with the PIM. Satisfactory results of the audit will be a condition ofcontinued involvement in the LIF component.
15. Maintenance and Sustainability of Investments: CRDs will be required to develop a simplified maintenance plan for investments financed under the LIF. All investments will be subject to a technical review by the associated sectoral staff at 6 months, 1 year, and 2 years post completion to ensure their satisfactory utilization and maintenance.
Component B: Capacity Building for Decentralized Rural Development (US$4.2 million IDA)
16. The objective ofthis component is for CRDs to prepare and implement their development and investment plans in an inclusive manner, with adequate support from deconcentrated staff. Activities under this component will address the institutional and policy changes required as well as the technical and fiduciary skills needed at the different decentralized levels to implement local development activities. This component will support the project to manage an ambitious capacity building program to enable the Code des collectivitis locales to be implemented. The success ofthis component is contingent upon the development ofthe following core skill sets:
The capacity of new commune councils to respond to development needs of their locality, as elaborated in a Local Development Plan and put into action through an Annual Investment Program;
The capacity of commune councils to generate substantial, sustainable and autonomous own-source revenues, and to manage these effectively, in combination with fiscal transfers from the central government and other transfer sources (i.e. the LIF); . The capacity of central government ministries and agencies to respond to the institutional transformation and to develop their new policy, monitoring, and coaching roles,
41 particularly amongst their cadres of deconcentrated field staff at sub-prefecture and prefecture levels; . The capacity of communities to engage their commune councils in local development planning and implementation, and to demand inclusive, transparent and accountable governance at the local level.
17. Fostering Collaborationfor Local Development: The Conseil communautaire (CC) is the elected body that presides over the CRD, and as such is one key actor in the local development sphere. The project will train the recently elected councilors to understand their roles in both political and development processes. The latter is particularly important, given that the locus of development activities at decentralized levels is envisaged at the CRD level, which is the administrative level presided over by the CC. The project will help create functional linkages between the CC, the current CRD structure, and the technical staff presently affected to the sub- prefecture level. This sub-prefecture cadre will eventually be transferred to CRDs, once the process of devolution is undertaken. In the interim however, the project will build linkages and synergies amongst the CC, CRD, and sub-prefecture level technical staff in order to stimulate local development and support for the devolution change process through “learning by doing”.
18. Sectoral staff at the sub-prefecture level are the next key group to engage. Phase I focused on the capacity building and direct implication of deconcentrated sector staff at the prefecture level in the participatory diagnosis, local development planning, and annual investment programming activities. Phase I1 will focus on better implicating deconcentrated sector staff at the sub-prefecture level in these processes in order to bring together the required human capital that already exists at the CRD level, the unit of analysis designated for both planning and investment activities. However, until functional devolution is a reality the sub- prefecture sectoral staff will continue to be under the supervision of the sub-prefect. This will pose a major challenge to the project, and will require significant sensitization and building of political will amongst the prefectoral staff and line ministries in order to be successful.
19. As an administrative level, the CRD is critical not only to a successful decentralization process, but also to sustainable service delivery and provision of key public investments. Phase I evaluations demonstrated a low level of comprehension of development planning processes, financial management, and the decentralization legislation at CRD and community levels. Human capital is lacking at the CRD level, with the only civil servant at present the Secre‘taire Communautaire. A plan for the phased installation of Receveurs Communautaire will be developed and piloted before the Project’s mid-term review. Their installation will significantly bolster the fiscal prospects for viable CRDs. As a result, Phase I1 will focus efforts to establish the legally mandated institutions at CRD level and transfer basic functional skills to them. The project will develop corresponding performance benchmarks to ensure progress toward this desired result.
20. Through the implication of sub-prefecture level sectoral staff, as outlined above, the capacity of CRDs will be developed to undertake participatory planning and resource allocation based on a simple, results-oriented approach grounded in the principles of community empowerment, transparency, and ownership. This will be measured by CRDs abilities to satisfactorily complete Annual Investment Programs independently by Year 3 ofproject support.
42 With respect to fiscal decentralization, the project will support CRDs to increase their revenue base through the efficient and transparent generation of own revenues, largely through the effective collection oftaxes to which they are legally entitled.
2 1. Reorienting Prefecture level institutions for local development: The prefecture is the secondary administrative level that is critical to the success of the project and of the overall decentralization process. Phase Iheavily implicated the SPD in project activities, concentrated in two positions - the Directeur des micrordalisations (DMR) and the Conseiller charge de 1 ’organisation des collectivite‘s (COC). As a result, the sectoral staff at the prefecture level was not as engaged as they should have been in supporting planning and implementation of local development activities relevant to their areas of expertise. In addition, the heavy implication of the DMR and COC worked to the detriment of the sectoral staff at sub-prefecture levels. As such, Phase I1 will reorient the prefecture toward its role as harmonizing, facilitating, and ensuring technical quality ofprocesses undertaken that the CRD level.
22. Engaging the Regional Administration in Local Development: While Phase Iimplicated regional level institutions and individuals, this was largely done on an ad hoc basis. In recognizing the important role the region plays in harmonization and linking lower level administrations with the national level, Phase I1 will support a regional cadre for dialogue and exchange of information regarding local development (Cadre de concertation re‘gionale) and formally involve the deconcentrated regional services in the project cycle, particularly as relates to planning of development activities and communication key information related to the decentralization process to the local level.
23. Realigning the Center to further promote decentralization and local development: Phase I1 will continue the program’s support to legal and regulatory reform with respect to decentralization, with a particular focus on fiscal decentralization. This will include financing studies and fora to build the technical foundation and political will necessary to deepen administrative, fiscal, and political decentralization. Support to Government’s programmatic vision for decentralization will also be supported through this component, including supporting the development ofapplication texts for the Code.
24. Strategic Communications for Decentralization: The project will support the implementation of the project’s public outreach campaign, with a particular focus on sensitization related to roles and responsibilities under decentralization.
Component C: Proiect Management. Coordination, Monitoring and Evaluation (US$3.9 million IDA)
25. Project management and coordination will continue to reside with a National Coordination Unit (Cellule Nationale de Coordination, CNC) responsible for technical and fiduciary oversight of the project. It will be linked to the Ministry of Planning, and its size will be limited to core functions critical to the project’s success and for which severe capacity constraints exist in the Guinean civil service (overall coordination, monitoring and evaluation, and fiduciary matters). The key staff of the CNC will be: a National Coordinator, a Technical
43 Officer, an Administrative and Financial Officer, a Procurement Officer, and a Monitoring and Evaluation Officer.
26. Overall project management responsibilities include: harmonizing implementation procedures, preparing and overseeing the implementation of annual work programs, providing support to the Project Steering Committee, organizing field supervision trips, and managing the LIF and transfer of funds to local governments and project beneficiaries (ensuring consistency with project implementation procedures and guidelines). The CNC will continue to be supported by regional project staff that are being regrouped to correspond to the seven administrative regions, rather than the four geographic regions. Each Regional Support Team (Equipe regionale d’appui, ERA) will consist of one technical support person and one fiduciary support person. Their roles and modus operandi will be somewhat different than under Phase I.They will focus on coordination, facilitation, mentoring, and skills transfer, and provide support to relevant government structures involved in the implementation ofPhase 11.
27. Monitoring and Evaluation (M&E) will focus on results-oriented data collection to inform project decision-making and impact evaluation. It will enable beneficiaries and the Government to: monitor due diligence focused on whether project implementation complies with technical and fiduciary guidelines as well as with social and environmental safeguard policies; monitor and evaluate achievement of the development objectives; evaluate whether the project’s implementation approach will be sustainable and have the desired outcomes; and assess project impacts on local governance and decision-making. The Phase IM&E arrangements will need to be revisited in order to simplify its structure and focus on the desired outcomes referenced above.
28. The M&E system will be based on four inter-related activities:
1 Project-level M&E: the project team will monitor and evaluate project inputs, processes and outputs, allowing management to make informed decisions based on the findings;
. Participatory M&E: CRDs will identify indicators, decide on monitoring arrangements (source and frequency of data collection) and track progress toward the achievement of results identified in their development plans. This will be integrated into the LDP and AIP processes;
1 Random technical audits: a third party will undertake, every year, random technical audits ofa percentage of subprojects in participating CRDs;
1 Impact evaluation: a third party will conduct an external evaluation of the project, including developing and fielding a baseline survey at the beginning ofthe project.
29. The M&E Officer in the CNC will supervise all M&E activities under the project and take the lead in compiling the data at the central level for quarterly and semi-annual reporting. The Administrative and Finance Officer will be responsible for analyzing the data related to fiduciary matters at the central level. All technical and financial data will be captured in a Management Information System. Qualitative and quantitative data for the purpose of impact evaluation will be collected, in treatment and control villages, by a third party before project
44 effectiveness. Data collection for a mid-term impact evaluation will be carried out at the latest 20 months from the date ofproject effectiveness. Randomized, unannounced fiduciary audits will be undertaken within samples of participating CRDs to ensure compliance with the fiduciary procedures outlines in the Project Implementation Manual.
30. The two GEF funded operations will provide incremental support to project management and coordination, through the financing of incremental staff (a focal point, field staff, accountant, procurement assistant, secretary and driver), vehicles and equipment, and operating costs. They will also provide incremental funding to strengthen the M&E system through their support to a GIs-based system, and financing of training, software, equipment and the services of a cartographer/GIS specialist.
45 Annex 5: Project Costs GUINEA: Village Communities Support Program (Phase 11)
Local Foreign Total YOto be Project Cost By Component US$ million US $million US$ financed by
1. Local Investment Fund 33.7 0.0 33.7 26.4%
2. Capacity Building for Decentralized Rural 9.6 4.1 13.7 30.7% Development 3. Project Management, Monitoring and Evaluation 4.9 3.7 8.6 45.3 %
Total Project Costs 48.2 7.8 56.0 30.3%
Other Local Total IDA IFAD GEF (parallel Central govern- Project Cost By Component (pari passu financing govern- ments financing ) for Forest ment (benefic- Guinea) iaries)
1. Local Investment Fund 33.7 8.9 6.4 5 .O 7.9 0.0 5.5
2. Capacity Building for 13.7 4.2 2.3 3.5 2.8 0.9 0.0 Decentralized Rural Development
3. Project Management, Monitoring 8.6 3.9 1.3 1.5 1.3 0.6 0.0 and Evaluation
Total Project Costs 56.0 17.0 10.0 10.0 12.0 1.5 5.5
Note: The Global Environment Facility financing is incremental and limited to specific geographic areas of intervention (see section 1II.A ofmain text).
46 Annex 6: Implementation Arrangements GUINEA: Village Communities Support Program (Phase 11)
1. In line with its objectives, Phase I successfully launched an effective and efficient decentralized system for local development. Phase I1 seeks to build on those successes while refining implementation arrangements to further implicate sustainable structures at decentralized levels. The Code des collectivite's locales, ratified by parliament in 2006, outlines institutional and implementation arrangements for local governments, and Phase I1 will support the strengthening of them. Project-specific structures have been minimized in Phase 11, and are in place only as transitional arrangement so as to facilitate the effective transfer of skills and resources to elected local governments.
2. Several changes will be made to the implementation arrangements for Phase 11, due to successful progress with respect to the implementation of Government's decentralized rural development program and lessons learned during Phase Iimplementation. Figures 6.1 and 6.2 provide organizational charts of the government and project structures involved in the implementation of Phase 11. This annex will begin by describing the mechanisms to coordinate the overall Program, then outline the project specific coordination mechanisms, and will close with a description ofday-to-day implementation ofthe project at local level.
Program Coordination and Monitoring
3. The PACV supports the implementation of the Government's decentralized rural development strategy, as operationalized through its Code des collectivite's locales. Several projects with the common central objective of supporting rural decentralization and local development are currently being implemented within this overall framework. At the national level, the Project will support a national cadre to evaluate these experiences and harmonize various approaches to decentralized rural development. The cadre will play an important role in the exchange of ideas and experiences, the medium-term goal being the adoption of best practices by all donors and the evolution of the various on-going operations towards a single national program.
4. At the regional level, the Project will support a Cadre de Concertation Regional for the exchange of ideas and experiences between donors-supported projects, Government technical services, and civil society. At the prefecture level, support will also be provided for coordination among all development partners. This function could be played by a deliberative body (the Conseil Pre'fectoraux de De'veloppement, CPD) envisioned under Article 89 of the Loi Fondamentale de la Re'publique de Guine'e. This deliberate body is not yet functional and its composition and precise mandate are currently being evaluated by the government - a concrete proposal will be made during the first year ofproject implementation.
Proiect Oversight and Coordination
5. Overall project oversight and orientation will continue to be the responsibility of a Project Steering Committee (PSC) headed by Ministry of Territorial Administration and
47 Decentralization (MATD) and composed of representatives from various ministries and key stakeholder groups. The PSC is chaired by the Secretary General of MATD, and is responsible for: (i)reviewing and approving the proposed annual consolidated work program and budget; (ii) reviewing the progress toward achieving the project’s objectives; and (iii)deciding on necessary corrective actions relative to project implementation. All activities of the PACV will be guided by an Annual Work Program, which will be submitted for approval to the PSC no later than October 3 1 ofthe preceding year.
6. At the national level, the Ministry of Planning (MP), working through a National Coordination Unit (Cellule Nationale de Coordination, CNC), will continue to be responsible for overall project management and coordination. The mandate ofthe CNC will be to ensure: (i)the programming of all activities planned under the program on the basis of inputs provided by the agencies involved in implementation; (ii) satisfactory adherence to the PIM; (iii)the consolidation of monitoring and evaluation activities; and (iv) communication with the various stakeholders regarding the Project. To ensure these support functions, the CNC will be composed of the following key staff: a National Coordinator, a Technical Operations Officer, an Administrative and Financial Officer, a Procurement Officer, and a Monitoring and Evaluation Officer.
7. The National Directorate of Decentralization (Direction Nationale de De‘centralisation, DND) of the MATD will continue to provide leadership, per its mandate, on the overall policy and legal environment related to the implementation of the government’s decentralization vision. In addition, the DND will take larger responsibility during Phase I1 for monitoring the implementation of the Government’s decentralization framework and tracking project indicators. In particular, the DND will be responsible for: (i)support to sectoral decentralization and capacity building of the various stakeholders (deconcentrated agencies, local elected officials and civil society); (ii)support to local planning process with greater accent on better engaging deconcentrated sectoral staff below the prefectoral level in the local development process; (iii) support to the implementation of the Code des collectivite‘s locales; and (iv) support to the association of locally elected officials; and (v) monitoring and evaluation of the overall decentralization process, and the project’s communication and coordination activities under Component B.
8. At the regional level, the project will establish Regional Support Teams (Equipe regionale d’appui, ERA), in each ofthe country’s seven administrative regions. This is a change from Phase I, where four Regional Coordination Units were used, corresponding with the country’s natural geographic regions. This is justified in order for the regional teams to be aligned with the administrative regions to gradually transfer functions to the appropriate government staff. Each ERA will be composed of a technical and a fiduciary support person, and will be based at the regional headquarters of the Ministry of Planning. The ERA will play a coordinating and mentoring role to the Government’s regional, prefectoral, and local government administrative structures, and will ensure compliance with the Project Implementation Manual, particularly with respect to technical and fiduciary aspects of implementation.
48 Proiect Implementation at Local Level
9. Day-to-day implementation will focus on sub-prefecture and CRD levels, and is described in detail below. As previously mentioned, Phase I1 seeks to reorient the role of the prefecture to better correspond with their mandate under the Code, which empowers elected local governments (CRDs) to take the lead on development planning and implementation. Therefore, the project will work in partnership with the Service Prdfectoraux de Ddveloppement (SPD), which is the cadre of deconcentrated sectoral staff at this level. Phase Irelied heavily on the Directeur des micrordalisations (DMR) and the Conseiller charge de l’organisation des collectivites (COC) to lead the participatory diagnostic and local development planning process. As a result, the sectoral cadres at prefecture level were not as engaged as they should have been in supporting planning and implementation of local development activities relevant to their areas of expertise. Phase I1 will seek to better involve sectoral staff at prefecture level in planning and implementation activities, with a particular objective of encouraging the involvement of technical staff at sub-prefecture level. This will be codified through a contracting arrangement between deconcentrated entities and local governments. Table 6.1 below provides an overview of the phases associated with the annual development planning and implementation, and includes details on the principal actors involved in undertaking and supporting each step.
Table 6.1. Rural Development Community (0)Planning and Implementation Cycle
Phase Steps Responsible Supported by: . Briefing for leadership at CRD/sub-prefecture level ERA Service provider . Recruitment of consultants to identifyhrain EMP DND ERA Preparation 1 Recruitmenvtraining of EMPs Service provider ERA . CRD leadership agreement . EMP ERA . CRD sensitization EMP . Identificatiodtraining of Village Animators EMP Participatory . Village/district planning information meetings EMP AV diagnostic at . Actor inventory and analysis citizens AV district levels . Inventory and analysis of village situation citizens AV, SPTS . Validation of diagnosis in village plenary meeting citizens AV . Visioning: development of long-term vision CRD EMP, STSP Development of four-year results-oriented strategic CRD EMP, SPSP plan cc EMP, STSP Local Development Identification of priority results areas, scope and Planning at CRD . CRD EMP,STSP budget allocation I 1 level . Feasibility studies for the priority results areas EMP CC, STSP . Establishment of Participatory M&E (PME) committee Adoption by Community Council (CC) cc CRD LDP Review . Presentation of LDP to CPD cc Sub-project leaders identified Eh4P Annual Investment . Sub-project support teams formed EMP Program . . Work plans and monitoring arrangements developed EMP Approval of AIP . Approval of workplans and feasibility studies SPD Signature of Sub- . President CRD and ERA CRD, ERA Grant Agreement Implementation/ . Feasibility studies verified EMP disbursements to Verification of subproject physical progress ERA CRD accounts . Random audits Service provider Progress Reporting . Regular updating of performance indicators; PME committee EMP
49 . Simplified reporting submitted quarterly to ERA CRD Evaluation of 1 Preparation of evaluation by PME committee PME committee EMP
action plan 1 CRD meeting to validate, take corrective action on EMP implementation findings. (annualized) Operation and 1 Outline recurrent costs cc EMP Maintenance 1 Identify source of funds for recurrent costs. cc EMP Development of 1 See above I subsequent AIPs
10. As outlined in Table 1, the CRDs themselves will be responsible for the process of identifying (through participatory diagnosis, local development planning, and annual investment programming) and implementing infrastructure subprojects to be financed by the LIF. This process will adhere to the following basic principles: (i)the identification, selection, operation, oversight, and maintenance of investments by and for the benefit of village communities; (ii) contractual implementation ofworks will be done by local artisans, private companies, or by the communities themselves; and (iii)responsibility for technical supervision and monitoring of subproject implementation will be shared by CRDs, territorial administration, and deconcentrated sectoral services. Therefore, the effective functioning ofthe CRD unit of analysis will be a key benchmark ofproject success, and lessons learned during Phase Iwill be leveraged to build this spirit ofpartnership and collaboration.
1 1. Phase Iexperimented with several different models for facilitating the planning process at CRD levels. The approach deemed most appropriate and sustainable was the use of mobile multidisciplinary teams - Equipe Mobile Pluridisciplinaire (EMP). This team is composed of two prefecture level technical staff, and three recent University graduates who were selected through a competitive process that was overseen at the central level by the DND. This team of 5 persons is tasked with leading training activities with each CRD in a given prefecture, with the goal of transferring planning skills to the CRDs themselves. At the close of the planning exercise, the CRD chooses one of the University graduates to become the Agent de De'veloppement Communautaire (ADC). In Phase 11, attention will be given to ensuring the sustained capacity at the level ofthe CRD to support community development and participatory planning and management. This will involve transferring skills to sub-prefecture technical staff so that they are able to guide the planning and AIP process in subsequent years and evaluating mechanisms for ensuring a permanence of the ADC function within the CRD institutional structure.
12. Because ofthe large number of CRDs involved in Phase 11, and the intensive sub-project cycle, the project has made the strategic choice to phase in its implementation to all participating local governments. This will ensure that CRDs receive relatively similar support under the program, in order to ensure consistency of direct financing of investments and for capacity development at the local level. Such phasing and flexibility in design will also allow for continuous improvement ofkey facilitation and training processes over the course ofthe project.
50 The precise number of rural communes in the year 1,2 and 3 cohorts will be defined in the first annual work plan ofthe project.
13. Total annual disbursements to CRD accounts are based on their overall grant allocation as determined by a population-based formula. The initial disbursement is made after certain criteria (related the Local Development Plan, the Annual Investment Program, and the CRD contribution, inter alia) are met, and a contract between the President ofthe CC and the Project’s ERA has been signed. The CRDs are then responsible for financial management and procurement matters, following simplified community-based fiduciary procedures, and expenditure justifications to the respective ERA. Financial audits are carried out annually on a random sample of CRD accounts. The justification for subsequent installments will be based on physical progress certified by the relevant sector staff and proper the use ofthe initial funds. The details of the disbursement arrangements and criteria are outlined in the Project Implementation Manual and summarized schematically in Figure 7.1 ofAnnex 7.
51 c-- I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I + I I I I I I I I
I Y I I I L I/: I I I .z / I I I I I I I I I I I I I/ 1- itl II .- 0
e E Y 0.. 2
...... Annex 7: Financial Management and Disbursement Arrangements GUINEA: Village Communities Support Project (Phase 11)
Summary of Financial Management Assessment
1. Follow-up to the CFAA conducted in 2003, shows that Guinea continues to make progress in the modernization of its public financial management process and structures. Over the last three years there has been a noticeable improvement in many of the basic elements of public financial management. The impact ofthe improvements is, however, mitigated by (a) the lack of a reliable and predictable revenue stream, (b) excessive government expenditures outside the commitment control systems, and (c) the weak linkages between various elements of public financial management processes. Previous use of extra-budgetary instrument undermining budget execution in general and in particular in the priority areas could be significantly scaled back in 2006 through reforms supported by the current IMF staff monitored program.
2. The public financial management systems and processes in Guinea are not yet at a level that would provide reasonable assurances to the Bank or other donors that the government’s own systems can be used to channel funds to donor funded projects or programs. It is, however, not unreasonable to believe that if the current progress in improvements is sustained and deepened that the objective of using the government’s own systems for channeling donor funds could be realized in the medium term.
3. Internal audit is not fully effective despite the extensive audit system in place. There is an elaborate internal audit function in the executive branch ofgovernment as well as an external audit unit ofthe Supreme Court. Unfortunately, these units lack adequate resources and training to carry out their functions: the government has been increasing resources with the assistance of the EU. Moreover, inspection reports are not systematically followed up and the Chamber of Account needs more professional staff and required independence to perform appropriate audits.
4. Although financial oversight institutions exist, they have limited authority. However, the Government of Guinea has begun to address the most urgent issues. Two draft decrees clarifying the role, obligation and privileges ofthe Chamber ofAccounts have been approved.
5. During the preparation of the Guinea Community Based Land Management Project (PO8 1297) a financial management assessment was carried out in accordance with the Financial Management Practices Manual issued by the Financial Management Sector Board on November 3,2005. The Community-Based Land Management Project, financed by the Global Environment Facility (GEF) provides incremental funding to the second phase of the PACV and uses the same implementation structures. The main objectives of the assessment were to determine: (a) whether the PACV has adequate financial management arrangements to ensure that project funds will be used for purposes intended in an efficient and economical way; (b) the PACV financial reports will be prepared in an accurate, reliable and timely manner; and (c) the entities’ assets will be safeguarded. Results have been updated and are highlighted below.
54 Risk Assessment
6. Table 1 below shows the results of the risk assessment from the Risk Rating Summary. It identifies the key financial management risks associated with project implementation and describes mitigation measures. Taking into consideration (i)the country context, (ii)the capacity of the implementing agencies (Le. the Cellule Nationale de Coordination (CNC), the Direction Nationale de De'centralisation (DND), and the Communaute's Rurales de De'veloppement (CRD)) as demonstrated during the first phase, (iii)the mitigation measures and project implementation procedures in place, (iv) the Bank's capacity to detect problems through regular supervision missions, SOE reviews, audit report reviews, and (v) the CNC's capacity for adequate and timely follow-up on problems identified, the overall financial management risk is rated as substantial.
Implementing EntityBtaffing
7. The second phase of the program will be implemented by the same CNC and government structures - at both central and decentralized levels - that successfully implemented the first phase. These units have been supervised and evaluated regularly by the World Bank fiduciary team, in coordination with other donors, throughout first phase and found to be satisfactory. Comprehensive action plans were developed after each supervision mission to address weaknesses and the project followed-up on recommendations in a satisfactory manner, e.g., (i)PACV staff attended fiduciary workshops organized by the World Bank both in Guinea and within the sub-region, (ii)the PIM and software were updated in accordance with recommendations, and (iii)all external auditors participated in a national workshop, organized by the World Bank in February 2005, to help in strengthening the quality ofaudit reports.
8. Reviews over the past three years have shown that the CNC has satisfactorily managed the first phase of the PACV, e.g. (i)triggers for the second phase and performance indicators were met and even exceeded in some cases; (ii)the disbursement rate was 100% for the first phase and additional financing (IDA grant for US$ 7 million) was made available to bridge the first and second phases; (iii)audit reports were unqualified with only a few reserves, internal control has been strengthened by recruiting addition staff, updating the project manual of procedure and software, training project fiduciary staff. The World Bank team will work closely with the project team to maintain this trend during the implementation of the second phase.
9. The CNC will be responsible for the overall coordination and consolidation of financial management and disbursement information. Staffing at the CNC includes: a National Coordinator, a Technical Operations Officer, an Administrative and Financial Officer, two Senior Accountants, a Procurement Officer, and an M&E Officer. It was agreed that an additional accountant, a procurement assistant, and a data base manager will be added to the CNC team. The additional staff are necessary to (i)reinforce the team in scaling-up to national coverage, (ii)address weakness in the M&E system, and (iii)handle additional responsibilities related the management of two GEF projects that will be integrated into the activities of the second phase of the PACV to strengthen natural resource management aspects of local development planning.
55 Table 7.1: Risk Rating Summary
Type of Risk Risk Risk Mitigating Measures Residual Rating Risk
I Rating INHERENT RTSKS (risk tha xises frc i environment in which project is situated) Country Level - Two IDF grants for strengthening procurement and -The political and social H reinforcement of public expenditure management have H situation is very fragile been approved and are being implemented. -Governance and public sector - The IDF grant for enhancement of external auditor’s financial management remain a capacities has been also approved and is being big concern. implemented. -Budget execution is delayed - A CPPR was conducted in December 2006 and -Government internal control recommendations are being implemented. institutions are not efficient. - Project will fund capacity building for PFM and -Government staff are not well procurement at local government level and will facilitate trained at either central or the installationof Public Receivers at the CRD level as decentralized levels mandated in the new Code des collectivitb locales. Entity Level Phase I1will be implemented by same project and - PACV staff has been S government structures that successfully managed Phase I M involved in the implementation in a difficult environment, where other projects have had of the first phase but Phase I1 problems. Satisfactory performance has been regularly will require additional staff confirmed by annual audits. who will need to be trained The central level (CNC and DND) project fiduciary staff - The Project Implementation are already on board and are adequately qualified and Manuel and financial experienced; the CNC and DND will be reinforced with management software have not an additional accountant and a procurement assistant. yet been disseminated in the Three additional regional support teams will be needed to new regions cover all seven administrative regions of Guinea - the new - The implementation staff will be recruited in an open and transparent manner framework may be affected by with TOR satisfactory to IDA and with annual the political instability. performance-basedcontracts as for all project staff); they will be trained in Bank and project procedures and will be supervised regularly. Funding flow arrangements are the same as under phase 1 and worked well. The project staff will be trained continuously during the life of project; the project software and manual of procedure are in place and will be updated or upgraded as necessarv. Project Level - Phase 1 (US$22 million in IDA + 7 million in additional -Project implementation S IDA financing) ofthe APL was well-managed and M arrangement is highly achieved very satisfactory results in a difficult decentralized covering the environment; Phase I1 of this APL will scale-up whole country progressively to cover all CRDs (146 out of 302 were - Flow of funds arrangements covered during the first phase). Audits uncovered only 1 may need close attention over problem with the 146 CRDs involved in Phase I. the implementation of the Resource transfers to both ‘new’ and ‘old’ local project governments (CRDs) will be accompanied by an on-going -Staffing and training may also PFM and procurement capacity building. be followed up. - Phase I1will use largely the same implementation procedures as phase I,along with additional accountability and transparency measures. - Substantial efforts will be made to build capacity ofnewly participating CRDs.
56 CONTROL RISKS (risk that the project’s financial management system is inadequate to ensure funds used economically and efficiently for itended 1 ypose) Budgeting M - Phase Ihas a well functioning budgeting and financial M -Budget preparation has been planning system as well as procedures for regular review. relatively strong part of Phase I - The Bank team and project staff worked closely to put in but improvement is still needed place comprehensive cost tables for Phase 11; as well as in the consistency detailed work program and quarterly budgeting for the -Execution of annual work first 18 months of the project. program may be delayed. - Phase I1will provide additional training for project staff (at both central and regional level) in preparing realistic budgets consistent with their disbursement plans. - Training, mentoring and hands-on experience will be provided to CRDs in financial planning and budget preparation. Accounting M - The accounting system is supported by the SUCCESS M - Project staff at the software. This software was been updated recently to decentralized level are not well accommodate PACV I1 needs. trained on the use of the - Staff at the central level have been trained; regional level financial management software staff will be trained prior to effectiveness. -The new version of - The procedures outlined in the PIM for Phase Iwere SUCCESS is not yet installed appropriate and the manual was updated as necessary at the regional level during implementation; it is being updated for Phase 11. Internal Control S - The project does not have an internal control unit; M -The project does not have an however, the administrative manual outlines approval and internal control unit. authorization procedures that worked relatively well during Phase Iand the project’s fiduciary team has attended several Bank training sessions over the last four years. - The project will be supervised closely and, if necessary, recruitment of internal control staff will be considered as an option to further mitigate this risk. Funds Flow M - The arrangements for the flow of funds as detailed in the M -Regional sub-accounts were PIM are acceptable to the Bank and worked well under been well managed during Phase I- Phase Ihad a 100% disbursement rate and a PACVl. However, the new supplemental grant is now under execution. regional project units may need - As was the case under Phase I,there will be two particular attention. designated accounts - one managed by the CNC (for components A and C) and one managed by DND for component B; both are located at the BICIGUI. - The CRDs will be trained on the use of the simplified manual of procedures.
57 - Financial Reporting IS The project management team will continue to use the M -1FRs were issued on time over Interim Financial Reports (IFRs) for reporting periodically the PACVl execution, in the year. Disbursements however are not yet eligible however the M&E and under IFR (report based) due to a need to improve the physical progress data were not quality and reliability of the reporting, which is consolidated with the financial attributable to the weakness/complexity ofthe data and and procurement reports in a the M&E system). satisfactory manner. - Training will be provided to financial, accounting and M&E staff and the M&E system is being simplified - this should lead the project to become eligible to disbursement under report based approach. - The format, content, and periodicity of IFRs was discussed during appraisal, and agreed upon during negotiations. Auditing M - The first phase was audited annually and audit reports M - No particular risk associated were all unqualified. However, the interim report was not with audit management prepared frequently. however, PACV2 will be - A new auditor will be recruited prior to project audited by a newly recruited effectiveness; the auditor’s TOR will include audits of auditor and close attention will CRD account (based on a random sampling each year) and be needed. the interim report to be issued every six months. - In commenting on audit reports, dates for receipt of an action dan from PCU will be agreed man. OVERALL RISK Is S H - High S - Substantia M - Modest L - Low
Project Financial Software
10. The accounting system is based on a well-functioning, computerized system. To that end, the financial management, accounting and procurement units of PACV have been equipped with a computerized and integrated financial management system appropriate to the scale of the project. The computerized financial management system (SUCCESS) is multi- currency and includes the following modules: general accounting, cost accounting, monitoring and evaluation, assets management, preparation of withdrawal applications and tracking of disbursements by donors, reports generating, including quarterly Interim Financial Reports (IFRs) and annual financial statements. This software has been updated and parameterized by OM Consulting recently to meet the needs of the second phase and CNC staff has been trained accordingly.
Financial and accounting manual
11. A Project Administrative, Financial and Accounting Manual is already in place. It describes: (i)the overall organization of the program including an organizational diagram and job description of the key posts in the CNC including the accounting and financial staff; (ii)the accounting system which will be on accrual basis; (iii)the main transaction cycles; format, content, and timing of the project financial reporting, i.e., financial statements and other financial reports including IFRs, filing system, etc.; (iv) the various operational procedures including budget management (planning, execution and monitoring) and management ofassets, procurement of goods and services, and disbursement; and (v) internal control procedures. The consulting firm which produced the manual was requested to review and update the document
58 with regard to the second phase institutional and financial management arrangements. The final version of this manual is now available. In addition a simplified manual has been prepared, under the supervision ofthe Ministry ofFinance, for CRDs.
Financial Reporting and Monitoring
12. Similar to Phase I, transaction-based disbursement procedures, as described in the World Bank Disbursement Handbook, will be used in Phase I1 (Le. direct payment, reimbursement, and special commitments). Two types of financial reports will be prepared by the CNC: (i)quarterly IFRs, as required by the Bank, and (ii)annual project financial statements including the project’s consolidated financial statements. The quarterly IFRs agreed upon during appraisal will be prepared and submitted to the Bank 45 days after closing of the quarter following the date of effectiveness. The IFRs will be based on formats developed in the Bank’s Guidelines on Financial Monitoring Reports, with some adjustments agreed upon with the CNC. The IFRs will include financial, physical progress and procurement information that is useful to the Borrower while also providing the Bank with sufficient information to establish whether: (i)funds disbursed to the project are being used for the purpose intended; (ii)project implementation is on track; and (iii)budgeted costs will not be exceeded. A copy of the Interim Financial Reporting Guidelines has been provided to the team and is being used in preparing the said IFR.
13. The Financial Management Assessment noted that IFRs are being prepared, but not being submitted on time, and the physical progress reports that are linked to the financial report were unreliable and of poor quality. The M&E system is being simplified and improved to provide ‘real-time’, reliable data. During Phase 11, the Bank team will continue to work with the CNC to improve the quality ofthe IFRs.
Audit Arrangements
14. The project’s consolidated financial statements will be audited annually by an independent auditor acceptable to the Bank in accordance with auditing standards also acceptable to the Bank. Audit reports of reasonable scope and detail will be submitted to the Bank within six months of the end of the financial period. The auditor will provide a single audit report with an opinion on: (i)the project financial statement, (ii)the project statement of expenditures (SOE); (iii)and the Designated Account (DA). The auditor will also issue a separate management report on internal and operational procedures, outlining any recommendations for improvements to internal controls and operational procedures identified as a result ofthe audit. In addition, particular attention will be paid to the quality ofstatement of expenditures report, giving assurance on the propriety and eligibility ofthe expenditures for the intended purposes.
15. The auditor’s terms of references will be reviewed to ensure that it covers all sources of financing for PACV activities (e.g., IDA, IFAD, GEF) and, as under the first phase, it will include audits of randomly selected CRD accounts. An interim audit will also be required taking into consideration the country high risk. Detailed terms of reference for the selection of
59 the project auditor will be discussed and agreed upon during negotiations. The selection of an auditor acceptable to the Bank is a condition of effectiveness.
16. As mentioned above, to ensure proper accountability offunds managed by beneficiaries, technical and financial audits will be carried out on a sample basis. These audits will focus on the technical execution ofthe works (technical quality and progress), systems in place to ensure appropriate maintenance, and that basic information is available to track the use of the funds (receipts, contracts, comparison of pricedbids, etc.). Where funds are inappropriately utilized, the Project will cease supporting activities until funds have been accounted for. The Project Implementation Manual details CRD-level financial transparency requirements (e.g. publication of CRD budgets and public financial reporting in a place and form agreed upon by the community) and financial management requirements for receipt ofproject funds.
Accounting and internal control
17. Detailed procedures have been developed for project accounting for each component. The objective of the detailed procedures is to ensure consistent financial reporting. The underlying systems take into account the specific needs and circumstances for each component including accounting procedures at the regional and CRD levels.
18. Internal controls for the project are set out in detail in the Financial and Accounting Manual of Procedures (part of the Project Implementation Manual, PIM) and are satisfactory for providing reasonable assurances that accounts are properly recorded and resources safeguarded. The accounting system for the implementation units for the components uses updated software. The accounting system has been evaluated over the past years and found to perform satisfactory.
19. As noted in the PIM, CRD's will provide quarterly activity and financial reports to the project's Regional Support Teams (Equipe regionale d'appui, ERA). The ERA will submit quarterly financial reports and supporting documentation to the CNC. Similarly, the DND of the Minist2re d 'Administration Territorial et De'centralisation (MATD), in charge of the Component B (Capacity Building for Decentralized Rural Development), will provide quarterly reports to the CNC. The CNC will subsequently consolidate the financial reports of the operational components.
Work programs and budgets
20. As part of the preparation of its annual work program and budget, each agency involved in the implementation of the PACV will commit itself to specific performance indicators specifying clear targets to be achieved in the course of the year regarding improved access and quality of service delivery. These targets reflect the goals implementing agencies want to achieve during Project implementation.
21. No later than November 30 of each year, the CNC will submit to the Project Steering Committee (PSC), with a copy to IDA, the aggregated proposed Annual Work Program, and Financial Report for the project. The report format will detail activities, associated unit costs
60 and an implementation timetable. It will also include monitorable progress indicators for each activity proposed in the work program. The work program and budgets will be reviewed by the Technical Coordination Committee (Cornite' Technique d'Exe'cution, CTE) prior to submission to IDA for no-objection.
22. In addition, the National Coordinator will submit semi-annual progress reports to the PSC, copied to IDA, showing budgeted and actual expenditures, source of funds used, statements of progress achieved on the basis of the agreed upon indicators and the (revised) objectives and financial reports for the forthcoming six months.
Disbursements arrangements
23. The amounts and percentages to be financed through the IDA grant for PACV I1 are detailed in the Table 2 below. The grant will be disbursed over a period of four years, from January 2008 through December 201 1. The grant closing date has been set at six months after the expected date for completion of project activities (Le., June 30, 2012), to allow for the orderly processing of final disbursement requests and the production of the project's final audit and annual progress reports.
24. As in the first phase, Phase I1 of the PACV will be co-financed with IFAD (US$ 10 million) on a pari-passu basis. The French Development Agency (Agence franqaise de ddveloppement, AFD) and the European Union funding for local development will be targeted for the Forest Region and financed on a parallel basis (freeing up PACV funding for other regions of the country ; their combined contribution was estimated conservatively at USD$l2 million for the purpose of developing Phase I1 cost tables). The beneficiaries (CRDs) and the Government of Guinea also contribute to project financing - Annex 5 provides financing details from all sources; the table below is specific to the IDA grant. The Country Financing Parameters (CFP) for Guinea were approved in June 2007 and 100% funding, exclusive of taxes, is sought for this Project.
Table 7.2: Disbursements
Allocated Amount Disbursement
61 Method of Disbursement
25. The Project will not be ready for report-based disbursements by effectiveness. Thus, at the initial stage, the transaction-based disbursement procedures (as described in the World Bank Disbursement Handbook) will be followed, i.e. direct payment, reimbursements, special commitments and replenishments of the Designated Account. The World Bank staff will continue training the project staff during supervision missions or through seminars in order to improve the quality ofIFRs (Interim Unaudited Financial Reports).
26. When the reports are adequate and produced on a timely basis, and the borrower requests conversion to report-based disbursements, a review will be undertaken by IDA to determine if the project is eligible for this method. The adoption of report-based disbursements by the project will enable it to move away from transaction-based disbursement method to IFR- based disbursements to the Project’s Designated Account.
Use of statements of expenditures (SOEs)
27. Disbursements for all expenditures will be made against full documentation, except for items claimed under the Statement of Expenditures (SOE). SOEs will be used for payments claimed under contracts for: (a) works in an amount inferior to US$200,000, (b) goods in an amount inferior to US$200,000; (c) consulting firms in an amount inferior to US$lOO,OOO (d) individual consultants in an amount inferior to US$50,000 as well as small equipment, office supplies and training. Documentation supporting all expenditures claimed against SOEs will be retained by the CNC and made available for review when requested by IDA during supervision missions and by project external auditors. All disbursements are subject to the conditions of the Financing Agreement and the procedures defined in the Disbursement Letter.
Designated account
28. The Project will maintain two Designated Accounts in US Dollars with respective equivalent in current accounts in Guinean Francs. One designated account will be managed by the CNC and the other by the DND. Funds will be used to make payments to suppliers in the respective contract currencies. Interest income received on these accounts will be deposited to a separate account ofthe Government.
29. The Designated Accounts in US dollars would be opened by the CNC in a reliable commercial bank on terms and conditions acceptable to IDA. The authorized allocations would be US$2,000,000 for Designated Account A managed by CNC and US$750,000 for designated Account B managed by DND. The respective allocations will cover about six (6) months of eligible expenditures. The Designated Accounts will be replenished through the submission of Withdrawal Applications on a monthly basis and will include reconciled bank statements and other documents as required until such time as the borrower may choose to convert to report- based disbursements. The Recipient may also choose to pre-finance project expenditures and seek reimbursement from the Bank as needed.
62 30. Upon grant effectiveness, the Bank will deposit the authorized amounts into the Designated Accounts. The Accounts will be used for all payments inferior to twenty percent of the authorized allocations, respectively and replenishment applications will be submitted monthly. Further deposits by the Bank into the Designated Accounts will be made against withdrawal applications supported by appropriate documents.
NEXT STEPS
Action Plan
3 1. The action plan to be implemented before Grant Effectiveness is tabulated below.
Action Target Date 1. Selection of new external auditors Effectiveness 2. Recruitment ofprocurement assistant and additional accountant at the CNC July 2007 level 3. Installation of project software in all project implementation units, including July 2007 the new regional units 4. Training ofall staff at the new regional units on the use ofthe software July 2007 “SUCCESS”
Supervision Plan
32. Supervision activities will include: review of quarterly IFRs; review of annual audited financial statements and management letter as well as timely follow up of issues arising; and participation in annual project supervision missions including field visits to CRDs and the project ERA. The Bank fiduciary team conducts yearly SOE reviews for the country portfolio as a whole. The SOE review exercise will continue to be conducted during Phase I1 of the PACV and the Bank FMS for Guinea will continue to play a key role in monitoring the timely implementation ofthe financial management arrangements.
Conclusions
33. The overall conclusion of the Bank’s Financial Management Specialist is that the current financial management arrangements, taking into account the actions listed above, are satisfactory to meet IDA requirements.
34. By effectiveness, the project will not be ready for report-based disbursements. Thus, at the initial stage, transaction-based disbursement procedures, as described in the World Bank Disbursement Handbook, will be followed i.e. direct payment, reimbursement, and special commitments. After project implementation start-up, and at the request of the borrower, the conversion to report-based disbursements will be evaluated by IDA.
63 0 Annex 8: Procurement Arrangements GUINEA: Village Communities Support Project (Phase 11)
A. General
1. Procurement Reforms: In July 1996, the Government of Guinea took the political decision to launch a reform program to improve the transparency and efficiency of Guinea's public procurement. The Bank supported the Government's initiative by committing funds from the SAC 111, and then, in March 1997, the Bank approved an IDF Grant in the amount of US$ 419,500 to implement a first phase ofprocurement reforms.
2. The first phase of reforms facilitated (i)the enactment of a revised Government Procurement Code; (ii)the publication of documents (including regulations, implementation decrees; standard bidding documents, and general conditions), and (iii)the introduction of a computerized tracking procurement system. Following the 2002 Country Procurement Assessment Review (CPAR) -jointly conducted by the World Bank, the African Development Bank (AfDB), and the Guinean National Coordination and Monitoring Committee established to track implementation of the procurement reforms - the Guinean Government requested, and the Bank approved, an IDF Grant (US$ 448,000) to support phase 2 of the reforms. The second phase aims at (i)fighting corruption; (ii)strengthening transparency and competition, and increasing quality and efficiency. It will specifically help improve the efficiency, quality and transparency of Guinea's procurement system and strengthen Guinea's national, and institutional, procurement management capacity. Activities under Phase 2 have been implemented slowly; however the reforms are expected to be completed by the closing date of the IDF Grant scheduled for calendar year 2008.
3. Use of Bank Guidelines: Procurement for the proposed project would be carried out in accordance with the World Bank's "Guidelines: Procurement under IBRD Loans and IDA Credits" dated May 2004 (and revised October 1, 2006); and "Guidelines: Selection and Employment of Consultants by World Bank Borrowers" dated May 2004 (and revised October 1, 2006), and the provisions stipulated in the Legal Agreement. The various items under different expenditure categories are described in general below. For each contract to be financed by the Loadcredit, the different procurement methods or consultant selection methods, the need for pre-qualification, estimated costs, prior review requirements, and time frame are agreed between the Borrower and the Bank in the Procurement Plan. The Procurement Plan will be updated as required, but at a minimum annually, to reflect the actual project implementation needs and improvements in institutional capacity.
4. Advertising: A General Procurement Notice (GPN) will be prepared and published in United Nations Development Business (UNDB), in Development Gateway's (dgMarket) and in at least a national newspaper after the project is approved by the Bank Board, and/or before effectiveness. The GPN would show all International Competitive Bidding (ICB) for works and goods contracts and all International consulting services. Specific Procurement Notices (SPN) for all goods and works to be procured under ICB will also be prepared and published.
65 Expressions of Interest (EOI) for all consulting services to cost the equivalent of US$lOO,OOO and above would also be published in the UNDB, dgMarket as well as in the national press.
5. Procurement of Works: The project will only fund small civil works such as office rehabilitation over widely dispersed sites. National Competitive Bidding (NCB) will be used for civil works contracts estimated to be less than US$200,000 and Small Works procedures for contracts estimated to cost less than US$50,000. Procurement will be done using the Bank's Standard Bidding Documents (SBD) for all ICB and NCB documents satisfactory to the Bank. Procedures for civil works executed under the matching grants of the LIF and managed by beneficiary communities, are detailed in the Project Implementation Manual.
6. Procurement of Goods: Goods procured under this project would include: vehicles, motorbikes as well as office equipment, such as computers, photocopiers, office furniture, etc. For locally available goods, National Competitive Bidding (NCB) will be used for contracts estimated to be less than US$200,000 and Shopping for contracts estimated to be less than US$50,000. Procurement will be done using the Bank's SBD for all ICB and NCB, satisfactory .to the Bank. In exceptional cases procurement from IAPSO could be used for vehicles and office equipment.
7. Procurement of goods by communities would follow procedures detailed in the Project Implementation Manual. A simplified Community-Based Procurement Manual was prepared under Phase Iof the PACV. It was updated in 2006 to take into account procurement reforms noted above and has been validated and disseminated through a series ofregional workshops that both project and Bank procurement staff attended.
8. Procurement of non-consulting services: Non-consultant services procured under the project include a limited number of study-tours, surveys and surveillance. They will usually be procured by direct contracting.
9. Other Methods of Procurement of Goods and Works: The following table specifies the methods of procurement, other than International or National Competitive Bidding, which may be used for goods and works. The Procurement Plan shall specify the circumstances under which such methods may be used:
I Procurement Method I 1 (a) Procurement from United Nations agencies I I (b) Shopping (c) Community Participation (d) Direct Contracting
10. Selection of Consultants: Consulting services would be for the following types of activities: audits, impact evaluation, specific studies related to project implementation and decentralization reforms, capacity building activities, development oftraining modules, technical advisors, support to communities for participatory diagnosis and local development planning. Consultations also include the organization and facilitation oftraining programs and workshops.
66 The following table specifies methods of procurement, other than Quality and Cost-based Selection, which may be used for consultants’ services. The Procurement Plan shall specify the circumstances under which such methods may be used.
Procurement Method (a) Selection Based on Consultants’ Qualifications I (b) Least Cost Selection I (c) Sole Source Selection (d) Selection under a Fixed Budget
12. The Project will enter into agreements with Government and/or donor supported institutions for specific implementation support. As no competitive process would be possible, the Project would only fund incremental costs. In addition, where capacities are weak, the Project may enter into contractual arrangements with NGOs for certain aspects of implementation (beneficiary training, participatory analyses, etc.).
13. Operating Costs: The Project would fund incremental operating costs of the implementing agencies. Normally, national shopping procedures would apply.
14. Other: The procurement procedures for the matching grants under the Local Investment Fund follow the guidelines for simplified procurement and are detailed in the Project Implementation Manual.
15. The procurement procedures and SBDs to be used for each procurement method, as well as model contracts for works and goods procured, are presented in the Project Implementation Manual.
16. Review bv the World Bank of Procurement Decisions: Except as the Association shall otherwise determine by notice to the Recipient, the following contracts shall be subject to Prior Review by the Association: (a) each contract for goods or works estimated to cost the equivalent of $200,000 or more; (b) each contract for goods or works procured on the basis of Direct Contracting; (c) each contract for non-consulting services estimated to cost the equivalent of $50,000 or more; (d) each contract for consultants’ services with specific and exclusive regard to the terms of reference for such contract; (e) each contract for consultants’ services procured on the basis of Single Source Selection; (f) each contract for consultants’ services provided by a firm estimated to cost the equivalent of $100,000 or more; and (g) each contract for consultants’ services provided by an individual consultant estimated to cost the equivalent of $50,000 or more. All other contracts shall be subject to Post Review by the Association. All terms of reference and short-lists are subject to prior review.
B. Assessment of the agency’s capacity to implement procurement
17. All procurement activities will be carried out by the CNC. An assessment of the capacity of the CNC to implement procurement actions has been carried out in May 2006 as part of
67 Project preparation. The assessment of the organizational structure, and the CNCs track record during the implementation of Phase lofthe PACV were found satisfactory for implementing the PACV2. However, to strengthen the procurement capacity of the CNC’s, it is recommended to (i)recruit a procurement assistant to provide additional support needed to handle the increased workload which results from the implementation of projects financed by other donor (in particular the GEF) ; and (ii)to add office space to house the procurement assistant.
18. During Phase 1 ofthe project, 146 local rural governments (CRDs) received procurement and financial management training and capacity building. Phase 2 will be extended to the entire country, further strengthening the capacity of the CRDs, who participated in the first phase and providing the same training and capacity building activities to the remaining 156 CRDs. The CRDs who benefited from capacity building activities and managed funds under Phase Iwere supervised regularly by project and Bank staff and their performance was found to be satisfactory - funds were managed transparently and in accordance with project guidelines. New CRDs will be phased in to allow for the necessary capacity building, and they will be subject to the same criteria for receiving and managing funds as those who participated during the first phase. These criteria are detailed in the Project Implementation Manual (PIM),
19. The implementation arrangements described in Annex 6 (and further detailed in the PIM), focus on participatory and transparent processes, with strong involvement from civil society. These processes are accompanied by random ex-post technical and fiduciary audits at the CRD level to ensure that procedures are being followed. Together with the Phase I1 governance mitigation measures summarized in Table 1.2 ofAnnex 1, a strong set of mitigation measures are in place. Although no significant procurement problems emerged at either the central project management level or the local CRD level during Phase Iimplementation, the overall project risk from procurement is rated high, rather than average, given the overall governance context of the country and the fact that Phase I1 will achieve national coverage and intervene in a large number ofnew CRDs.
C. Procurement Plan
20. The Recipient will develop a procurement plan for the first 18 months of Project implementation, which provides the basis for the procurement methods. This plan will be formally agreed upon at negotiations. It will also be made available in the project’s database and in the Bank’s external website. The Procurement Plan will be updated quarterly by the procurement staff of the CNC or as required to reflect the actual project implementation needs. The procurement plan will specify the procurement procedures to apply to each contract
D. Frequency of Procurement Supervision
21. In addition to the prior review supervision to be carried out from Bank offices, the capacity assessment of the Implementing Agency has recommended two annual supervision missions to visit the field to carry out post review ofprocurement actions.
68 E. Details of the Procurement Arrangements Involving International Competition
1. Goods, Works, and Non Consulting Services:
(a) List of contract packages to be procured following ICB and direct contracting:
1 2 3 6 7 8 19
Ref. Contract Estimated Dom- Review Expected Com- No. (Description) cost estic by Bank Bid- ments Method prefer- (PriorPost) Opening ence Date
I I (yesho) 1 I Vehicles including I five 4x4, 14 pick- 1,086,500 1No Prior 26/01/08 ups, and 99 motorcycles ICBI NA 2 Computer equipment (92 desk 259,500 ICB NA Prior tops; 17 portable computers); No ~~ I 3 Solarpower 540,000 No Prior 26/01/08 equipment 1 I I 4 Software & 130,000 ICB NA No Prior 26/01/08 installation I I I I
(b) All contracts estimated to cost above US$200,000 per contract and all direct contracting will be subject to prior review by the Bank.
2. Consulting Services
(a) Consultancy services estimated to cost above US$lOO,OOO (firms) or US$50,000 (individuals) per contract and single source selection of consultants (firms or individuals) will be subject to prior review by the Bank.
(b) Short lists composed entirely of national consultants: Short lists of consultants for services estimated to cost less than US$lOO,OOO equivalent per contract may be composed entirely of national consultants in accordance with the provisions of paragraph 2.7 of the Consultant Guidelines.
69 Annex 9: Economic and Financial Analysis GUINEA: Village Communities Support Project (Phase 11)
1. Because of the demand-driven, dispersed and flexible nature of its activities, the Project does not lend itself to the standard quantitative cost-benefit or least-cost analysis. The ex-ante economic analysis is therefore couched largely in qualitative terms. However, the economic rationale of the Project remains strong and it is possible to demonstrate that (a) the Project will generate substantial economic benefits; and (b) compared with alternative approaches, the approach adopted by the Project improves the cost-efficiency and sustainability of the investments and activities undertaken.
2. The design of the Project incorporates measures to maximize the economic benefits. First, the Project Implementation Manual will include strict eligibility criteria for specific investments to ensure that they are economically justified (e.g. number of people served by spot improvement of a village access road, distance from next water point for construction of a well or borehole, etc.). Internal Rates of Return for individual subprojects, least cost alternatives, and cost per beneficiaries will be used where feasible or applicable, for the larger sub-projects. Second, a carefully designed monitoring and evaluation system will trace the economic impact of the Project, by collecting relevant indicators from beneficiary villages before and after investments. An external technical review will be carried out annually to assess, on the basis ofa representative sample, the technical quality of the sub-projects, their cost, and their socio- economic impact. A baseline survey will allow quantitative assessment of the development impact ofthe Program as a whole.
3. Potential economic benefits can be characterized as follows: . Maintenance and rehabilitation of rural roads: Better roads will increase access to markets and social services, such as health and education. Better access to markets will generate economic benefits from market transactions; access to social services increases productivity, which in turn contributes to increased income. . Investment in safe water, education and health care services: The impact of improved access to social infrastructure (e.g. safe water, education, health facilities) has both short-term and longer-term (generational) impacts in terms of improved health, nutrition and labor productivity. They contribute to poverty reduction in the short-term by improving the quality ofrural life, and in the long-term, through a more productive work force, to overall economic development. Access to clean water, by improving the health of rural population and reducing the time spent (especially by women) in transporting water, will contribute to poverty alleviation and significant improvement in the productive capacity of rural people, particularly women. The benefits of improved water supplies (quantity and quality) on health outcomes are well documented. These health benefits in turn lead to labor productivity and income gains via a variety ofdirect and indirect pathways. Directly, healthier individuals are able to spend more 'effective' hours in wage and farm work and fewer 'sick days' releases labor for productive activities. Indirectly, improved health (a) decreases the amount of 'care time' spent with sick relatives thereby releasing labor for productive activities,
70 (b) decreases the time required for complementary activities such as fuelwood collection which might be necessary when water is contaminated, and (c) may alter the portfolio of income generating activities undertaken by the household since individuals with health risks might engage in lower-output activities that are less sensitive to labor supply interruptions (Hoddinott, 1997). One study estimates the labor productivity losses due to stunted growth at 9 percent (Pinstrup-Andersen et.al., 1996). In addition, there are a series of second round effects to improved health. For example, higher incomes lead to increased expenditures on commodities that improve health (e.g. higher quality diets) and expenses associated with being sick decrease. Studies also show that better health also leads to direct improvements in schooling outcomes (Behrman, 1996).
Employment creation: The Project will contribute to employment and income generation in rural areas: (i)directly, through improvement of the productive capacity of the natural resource base and involvement of local artisans and village workers in the construction of basic infrastructure funded under the LIF; and ii) indirectzy, through the new and/or additional economic opportunities generated by road improvement and improved capacity for economic activity due to better health and water supply. Growth multiplier research in West Africa indicates that each dollar of additional income generated in the agricultural sector will generate an additional US$ 1.90 of income in the local economy through the stimulative impact of spending on local goods and services (Delgado, Hopkins and Kelly, 1998).
4. The Project has been designed to enhance cost-efficiency and sustainability. Efficiency gains, due to increased relevance of investment decisions, are expected to be derived from the decentralized decision-making and implementation process. Experience with investment funds for decentralized rural development projects in Latin America and Asia has shown that communities generally choose investments which can be expected to have a very high rate of return, such as water supply, rehabilitation of roads and schools. In addition, decentralization of decision-making not only creates incentives to keep investment costs low and the quality of service delivery high, but also increases the likelihood of investment sustainability. Data collected under Phase Ishow that the costs ofprimary school construction , for example, is about 19 % lower than those constructed under the centralized national education program.
5. Financial: The impact of sub-projects on recurrent costs at the village level will be evaluated during their identification and provisions will be made to ensure the operation, maintenance and renewal of those investments. In some cases the beneficiaries will assume the recurrent costs directly (e.g., productive investments of a public nature, water supply); in others, adequate provision will be made in the budget of the responsible ministry (e.g., schools, health posts). Emphasis will be put on cost-minimization measures and on anticipating additional funding requirements to ensure investment sustainability.
6. Fiscal Impact: The long-term objective is for CRDs to be able to raise fiscal resources from increased local economic activity and consumption, thereby contributing to the funding of their local development plans while reducing the need for fiscal transfers from the central government. In the short-to-medium term, fiscal transfers from the central government will be
71 needed to cover what the beneficiary contribution does not. It must be recognized that the long- term capacity-building needs of rural communities will require considerable support, and that such support will need to come largely from the outside, including support to cover the operating costs of the Project and intermediaries. Such operating costs are part of the investment required to build institutional, and ultimately, fiscal sustainability.
72 Annex 10: Safeguard Policy Issues GUINEA: Village Communities Support Project (Phase 11)
1. From an environmental and social safeguard point of view, the second phase of the PACV is a Category B project. This categorization is derived from the fact that the environmental and social impacts of the project are expected to be minimal, site-specific and manageable to an accepted level. There are two World Bank Safeguard policies applicable to the project: Environmental Assessment (OP 4.01) and Involuntary Resettlement (OP 4.12). Incremental funding from the GEF projects being integrated into Phase I1 of the PACV will help strengthen the capacity for environmental screening of sub-projects and will lead to an increased awareness of environmental issues on the part of all institutions involved in PACV implementation.
Safeguard Policies Triggered by the Project Yes No Environmental Assessment (OP/BP/GP 4.0 1) [XI [I Natural Habitats (OP/BP 4.04) [I [XI Pest Management (OP 4.09) [I [XI Cultural Property (OPN 1 1.03, being revised as OP 4.1 1) [I [XI Involuntary Resettlement (OP/BP 4.12) [XI 11 Indigenous Peoples (OP 4.10) [I [XI Forests (OP/BP 4.36) [I [XI Safety ofDams (OP/BP 4.37) [I [XI Projects in Disputed Areas (OP/BP/GP 7.60)* [I [XI Projects on International Waterways (OP/BP/GP 7.50) [I [XI
2. Given the demand-driven nature ofthe project, the range, scale, locations and number of sub-projects, are unknown ex ante. The difficulty inherent to defining what the real environmental and social impacts of envisioned sub-projects are, and determining what mitigation measures should be put in place, require the development of an Environmental and Social Management Framework (ESMF) and a Resettlement Policy Framework (RPF), a social safeguard instrument used to addressing potential land acquisition or loss of economic activity issues on the part ofindividuals or groups ofindividuals in project intervention zones.
3. The project impacts may include, but are not limited to, the following: (i)soil erosion, loss of biodiversity both fauna and flora, due in part to project activities and in part to poaching and land conversion in resources areas, as a result of access; (ii)sedimentation of water bodies due to land clearing for construction and poor rehabilitation of pits; (iii)improper waste management; (iv) contamination ofthe soil and water bodies; and (v) loss ofland or other assets leading to loss ofshelter, property, economic activities, access to resources.
4. The ESMF formulated standards methods and procedures specifying how subprojects, whose location, number and scale are currently unknown, will systematically address environmental and social issues in the screening and categorization, design, implementation, as
* By supporting the proposedproject, the Bank does not intend to prejudice the final determination ofthe parties' claims on the disputed areas
73 well as operational and maintenance phases. It includes: (i)systematization of environmental and social impact assessment for all identified sub-projects before investment; (ii)procedures for conducting sub-project-specific environmental impact assessments, (iii)capacity strengthening and awareness raising campaigns targeted at relevant stakeholder groups for better implementation and monitoring ofproject safeguard measures; and (iv) roles and responsibilities for environmental control and monitoring.
5. The RPF looked into the policy, legal and regulatory mechanisms on how to address cases of land acquisition, loss of livelihoods, on the part of affected people, as a result of project activities. It also provides a coherent framework, eligibility criteria and asset valuation methods for compensation andor resettlement of affected people, as well as grievance mechanisms of affected persons, in case of unsatisfactory arrangements. Together, these safeguard instruments, are considered both as a planning tool and a means for a harmonious integration ofthe project in its bio-physical and socio-economic environment and as a way to maximize positive effects on the same environment.
6. Both the ESMF and RPF include institutional arrangements, outlining the roles and responsibilities for the various stakeholder groups involved, for screening, review and approval of sub-projects, as well as implementation and monitoring of their mitigation measures. Notwithstanding the reasonable institutional capacity to addressing project safeguard aspects adequately, given several years of satisfactory implementation of Phase 1, these safeguard instruments, together, include provisions to strengthening further the capacity of the various institutions and actors involved, as well as promoting coordination and synergy among the various sectors in attending to the potential environmental and social impacts.
7. Both instruments were prepared in full compliance with World Bank and national safeguard policies, following a broad consultative process involving relevant stakeholder groups. They were cleared and disclosed in-country (February 17, 2006) and at the World Bank InfoShop (November 20, 2006), prior to appraisal. All instruments were submitted to ASPEN, the regional Safeguard Unit, and cleared for disclosure in-country and at the World Bank Infoshop, prior to appraisal.
8. Successful implementation of the project safeguard requirements and performance measurement requires regular monitoring and evaluation of activities undertaken by the project to comply with national and World Bank safeguard policies. This will also help ensure that implementation of project safeguard measures are systematically carried throughout the project lifespan. Indicators will be defined and measured, as part of the project M&E system and the participatory community-level M&E process.
74 Annex 11: Project Preparation and Supervision GUINEA: Village Communities Support Program (Phase 11)
Planned Actual PCN review 0211512004 02/03/2004 Initial PID to PIC 02/28/2004 04/28/2004 Initial ISDS to PIC 02/28/2004 05/06/2004 Appraisal December 2006 1211312007 Negotiations January 2007 02/09/2007 BoardBVP approval 7/26/07 Planned date of effectiveness 01/01/08 Planned date of mid-term review 03/30/11 Planned closing date 0613 01 13
Key institutions responsible for preparation of the project: Ministry of Territorial Administration and Decentralization (MATD), Ministry of Planning (MP), Ministry of Economy and Finance (MEF), International Fund for Agricultural Development (IFAD), and the French Development Agency.
Bank staff and consultants who worked on the project included:
Kadidiatou Bah Team Assistant AFMGN Racky Dia Camara Team Assistant AFMGN
75 Bank funds expended to date on project preparation: 1. Bank resources: US$342,000 2. Trust funds: 0 3. Total: US$ 342,000
Estimated Approval and Supervision costs: 1. Remaining costs to approval: US$20,000 2. Estimated annual supervision cost: US$l30,000
76 Annex 12: Documents in the Project File GUINEA: Village Communities Support Program (Phase 11)
1. De'centralisation des Activite's Sectorielles, Rapport Final. Denis Bruno Koffi, Consultant Internationale. March 2005
2. Etude Analytique du Cadre Institutionnel et Organisationnel du PACV2. Cabinet Nord Sud Consult. May 2006.
3. Etude sur I'Analyse Economique et Financi6re de PACV2. Ansoumane Camara et Aly Sy, Consultants Nationaux. May 2005
4. Etude Portant sur 1 'Ame'lioration des Recettes Fiscales et de leur Collecte au Niveau des Collectivite' Locales (CRD). TAFSIR Audit & Conseil. February 2005.
5. Evaluation des Besoins des Communaute's Rurales de De'veloppement (CRD). Pride/Guinde. August 2005
6. Evaluation des Prestations des ADC, Ope'rateurs et ONG au Niveau Communautaire. Cheick Oumar KEITA, Consultant National, April 2005
7. Guide Ge'ne'rale pour 1 'Harmonisation des Me'thodes, Outils et Proce'dures utilise's pour la planijkation, le suivi et l'e'valuation participatives au niveau des CRD. Direction Nationale de la Ddcentralisation, MATD avec l'appui technique du Cabinet Nord Sud Consult, Version Final, May 2006
8. Manuel d 'Execution, PACV Phase II.Version Provisoire, May 2005
9. Manuel d'Exe'cution du Fonds d'Investissement Local (FIL) - Guichet 1, PACV Phase II. MCG Conseils. April 2005
10. Manuel de Suivi-Evaluation, Volume 1: Ele'ments de Base et Suivi d 'Impact. Jean-Pierre Muimana Kalala, Consultant Internationale. May 2005.
11. Manuel de Suivi-Evaluation, Volume 2 : Montage Institutionelle et outils de collecte de donne'es sur le niveau d 'e'xecution du PACV2. Jean-Pierre Muimana Kalala, Consultant Internationale.. May 2005.
12. Manuel de Suivi-Evaluation, Volume 3: Ele'ments pour le Suivi des Re'sultats Financiers. Jean-Pierre Muimana Kalala,Consultant Internationale. May 2005.
13, Nomenclature Budgetaire et Comptable des Collectivite's Locales, Version Finale. West African Consultants. April 2006.
77 14. Texte de Loi Portant Code des Collectivite's Locales en Re'publique de Guine'e. Ministere de 1'Administration du Territoire et de la Decentralisation (MATD). May 2006
15. Evaluation Environnementale et Sociale (EES), Rapport Final. SATEC Developpement International et BDPA. March 2005.
16. Document Conceptual d 'Orientation Strategique pour un Appui de PNUD/FENU 13 la De'centralisation et au De'veloppement Local en Guine'e. FENUIPNUD. June 2006.
17. Evaluation de la De'centralisation en Re'publique de Guine'e. Rapport Final. PNUD et MATD. March 2005
18. Identification des Besoins en Formation des Cadres de 1 'Administration Territoriale et duns le Domaine de De'centralisation. Rapport de Mission pour le compte du Ministere des Affaires Etrangeres de France sur requCte du Ministhe de 1'Administration Territoriale et de la Decentralisation de Guinee. Franqois Cazottes. March 2006.
19. Rapport SynthBse de Pre'paration du PACV2. Ministere du Plan. August 2006.
20, Ordonnance No. 079/PRG/SCG/86, du 25/03/86, Portant Re'organisation Territoriale de la Re'publique de Guine'e et Institution des Collectivite's De'centralise'es.
2 1. De'cret No. 004/PRG/SCFG/89, du 5 janvier 1989, Portant Mission et Organisation de 1 'Administration Pre'fectorale.
22. ArrCte No. 193/MATD/CAB/2000, du 26/01/00, Portant Missions et Attributions du Service Rigionale d 'Appui aux Collectivite's, de Coordination des Interventions des Coope'ratives et ONG (SERACCO).
23. Capitalisation des Expe'riences des Projets d 'Appui en De'veloppement Local et De'centralisation en Afrique de I'Ouest :Le Cas de la Guine'e. FENU. June 2006.
24. USAID/Guinea, Strategy Statement. 2006-2008. December 1,2005.
25. USAID/Guinea, Annual Report, FY 2006. January 30,2006.
26. Country Assistance Strategy
27. Poverty Reduction Strategy Paper
78 Annex 13: Statement of Loans and Credits GUINEA: Village Communities Support Program (Phase 11)
Difference between expected and actual Original Amount in US$ Millions disbursements Proiect ID FY Purpose IBRD IDA SF GEF Cancel. Undisb. Oria. Frm. Rev’d PO77317 2006 GN-Elec. Sec. Eff, Impr. SIL (FY06) 0.00 0.00 0.00 0.00 0.00 7.42 0.00 0.00 PO65126 2005 GN-Health Sec Supt SIL (FY05) 0.00 25.00 0.00 0.00 0.00 22.86 5.49 0.00 PO65127 2005 GN-Natl Rural Infrastructure (FY05) 0.00 30.30 0.00 0.00 0.00 28.72 14.45 0.00 PO73378 2003 GN-Multi-Sectoral AIDS SIL (FY03) 0.00 0.00 0.00 0.00 0.00 6.15 3.64 0.00 PO74288 2003 GN-Decentr Rural Electrification (FY03) 0.00 5.00 0.00 0.00 0.00 3.41 2.30 0.00 PO42055 2003 GN-GEF Decentr Rural Elec (FY03) 0.00 0.00 0.00 2.00 0.00 2.08 2.00 0.00 PO50046 2002 GN-Education for All APL (FY02) 0.00 70.00 0.00 0.00 0.00 25.76 14.26 4.78 PO50732 1999 GN-Village Com Sup Prgm (APL) -Phase 1 0.00 22.00 0.00 0.00 0.00 2.60 -4.58 0.02 Total: 0.00 152.30 0.00 2.00 0.00 99.00 37.56 4.80
GUINEA STATEMENT OF IFC’s Held and Disbursed Portfolio In Millions of US Dollars
Committed Disbursed IFC IFC FY Approval Company Loan Equity Quasi Partic. Loan Equity Quasi Partic 1993 SGHI 1.91 0.00 0.00 0.00 1.91 0.00 0.00 0.00 2006 SUlFER 0.00 2.50 2.50 0.00 0.00 0.00 0.00 0.00 Total portfolio: 1.91 2.50 2.50 0.00 1.91 0.00 0.00 0.00
Approvals Pending Commitment FY Approval Company Loan Equity Quasi Partic
Total pending commitment: 0.00 0.00 0.00 0.00
79 Annex 14: Country at a Glance GUINEA: Village Communities Support Program (Phase 11)
Sub- POVERTY and SOCIAL Saharan Low- Development dlamo nd* Guinea Africa Income 5005 Population, mid-year (millions) 9.4 741 2,353 Life expectancy GNI per capita (Atlas method, US$) 370 745 580 GNi (Atlasmethod, US$ billions) 3.5 552 1,364 T Average annual growth, 1999-05 Population (%) 2.2 2.3 19 GNI Gross Laborforce (%) 2.0 2.3 2.3 per primary Most recent estimate (latest year avaliable, 1999-05) capita Poverty (%of population belo wnationalpovertyline) Urban population (%oftotalpopulation) 33 35 30 Life expectancy at birth (pars) 54 48 59 1 Infant mortality (per 10OOlive births) 1)l 60 80 Child malnutrition (%ofchildren under5) 33 29 39 Access to improvedwatersource Access to an improvedwatersource(%ofpopulation) 50 56 75 Literacy(%ofpopulation age a+) 29 62 Gross primary enrollment (%of school-age population) 79 93 64 -Guinea Male 87 99 11) Lowincome group Female 71 87 99
KEY ECONOMIC RATIOS and LONG-TERM TRENDS
' 1985 1995 2004 ' 2005 Economic ratios. GDP (US$ billions) .. 3.7 3.8 2.7 Gross capital formatlonlGDP '6.6 1) .8 117 .. Trade Exports of goods and serviceslGDP .. 20.8 21.8 33.1 Gross domestic savings/GDP .. P.8 6.5 8.4 Gross national savings/GDP .. 8.8 4.6 7.1 T Current account balancelGDP -7.7 -6.2 -4.6 .. Domestic Capital Interest payments1GDP 1.2 11 savings formation Total debt1GDP .. 87.8 93.7 Total debt servicelexports .. 23.2 20.8 Present value of debtlGDP 41.8 Present value of debtlexports 1912 Indebtedness 1985-95 1995-05 2004 ' 2005 2005-09 (average annualgrouth) GDP 3.8 3.5 2.7 3.0 5.5 -Guinea GDP per capita 0.2 1.3 0.5 0.8 5.0 Lo winco me Qroup Exports of goods andservices 3.1 3.3 3.6 3.8 8.7
STRUCTURE of the ECONOMY 1985 1995 2004 ' 2005 Growth of capital and GDP (%) (%ofGDP) L Agriculture .. 21.5 25.5 25.6 Industry .. 33.1 37.5 37.6 Manufacturing .. 4.9 4.1 4.1 Services .. 45.4 31.O 36.9 Household final consumption expenditure .. 81.0 87.8 85.2 General gov't final consumption expenditure .. 6.2 5.7 6.4 Imports of goods and services .. 24.5 26.1 36.3
1985-95 1995-05 2004 2005 ' Growth of exports and imports (%) (average annualgron4h) Agriculture 3.7 4.5 4.1 4.0 20 Industry 2.8 4.3 2.9 4.0 10 M anufactunng 4.2 4.1 2 .o 3.5 Services 3.5 2.6 1.6 3.8 0 Household final consumption expenditure 4.0 3.5 2.2 0.1 - 10 General gov't final consumption expenditure 0.3 2.1 -13.8 -6.9 -20 Gross capital formation 2.2 1.7 'A .9 -4.2 Imports of goods and services 1.9 1.4 3.5 -14.5
Note: 2005 data are preliminaryestimates. This table was producedfrom the Development Economics LDB database. 'Thediamonds showfour keyindicators in thecountry(1n boid)comparedwith its income-groupaverage.Ifdataare missing,thediamondwill be incomplete. -- Guinea
PRICES and GOVERNMENT FINANCE 1985 1995 2004 2005 Domestic prices (% change) Consumer prices 5.6 17.5 25.8 Implicit GDP deflator 4.5 13.2 13.2 Government finance (% of GDP, includes current grants) Current revenue 11.0 11.5 15.5 00 01 02 03 04 05 Current budget balance I.9 -0.6 3.4 -GDP deflator -0-CPI Overall surplus/deficit -6.7 -5.9 -1.5
TRADE 1985 1995 2004 2005 ixport and import levels (US$ mill.) (US$ millions) Total exports (fob) 649 743 807 I Bauxite 301 292 343 'Oo0 T Alumina 96 163 171 750 Manufactures 121 743 836 Total imports (cif) 809 708 703 500
Food 77 0 0 250 Fuel and energy 82 0 0 Capital goods 88 0 0 0 99 00 01 02 03 04 Export price index (2000=100) 99 99 101 Import price index (2000=100j 104 96 95 1Exports 1Imports Terms of trade (2000-100) 95 103 106
BALANCE of PAYMENTS 1985 1995 2004 2005 Current account balance to GDP (Oh) (US$ millions) L Exports of goods and services 766 824 889 Imports of goods and services 906 986 976 Resource balance -140 -162 -87 Net income -85 -60 -47 Net current transfers -62 -11 11 Current account balance -286 -233 -123 Financing items (net) 299 259 176 Changes in net reserves -8 -13 -26 -52 Memo: Reserves including gold (US$ millions) 198 116 125 Conversion rate (DEC, /ocal/US$) 24.3 991.4 2,225.0 3,642.9
EXTERNAL DEBT and RESOURCE FLOWS 1985 1995 2004 2005 :omposition of 2004 debt (US$ mill.) (US$ millions) Total debt outstanding and disbursed 1,465 3,242 3,538 IBRD 55 0 0 0 0:229 IDA 117 847 1,287 1,205 Total debt service 72 178 172 IBRD 8 0 0 0 IDA 1 8 16 32 Composition of net resource flows Official grants 45 235 194 Official creditors 48 64 -65 Private creditors 18 -15 0 Foreign direct investment (net inflows) 1 1 100 Portfolio equity (net inflows) 0 0 0 D: 623 World Bank program
Commitments 33 43 30 \ ~ IBRD E - Bilateral Disbursements 22 59 38 32 I - IDA D - Other multilateral F - Private Principal repayments 5 2 7 22 ;- IMF G .Short-tern Net flows 17 57 31 10 interest payments 4 6 8 10 Net transfers 12 51 23 0
Note: This table was produced from the Development Economics LDB database. 8/13/08
81
Annex 15: Maps GUINEA: Village Communities Support Program (Phase 11)
82
MAP SECTION
IBRD 35338
14° 12° 10° 8° SÉNÉGAL GUINEA VILLAGE COMMUNITIES SUPPORT PROGRAM - PHASE II
Sambilo (PROGRAMME D’APPUI AUX COMMUNAUTÉS VILLAGEOISES - PHASE II) Youkounkoun
Sareboido KOUNDARA Guingan Kamaby Termesse GUINEA- Niagassola Touba Foulamory Lebekere Balaki
BISSAU Madina MALI 12° Wora Hidayatou Gaya Naboun 12° Salambande Fougou Gadha- Dougountounni Woundou Koumbia Telire Siguirini Doko GAOUAL Kounsitel Yembereng Fello Malea Linsan Donghol Matakaou Fafaya Koundouwa Franwalia Saran Manda Saran Sigon Diatifere Tianghel MALI Touba Bori Pilimili KOUBIA Kouratongo Banora Kintinian Bankon Lafou Kouramangui Gagnakaly Wendou Korbe Diountou Malanta M’Bour Dalein Missira Kollet LÉLOUMA Tountouroun Konah SIGUIRI Dialakoro Balaya Lansanaya Popodara Sannou TOUGUÉ Kiniebakoura LABÉ Tangaly Kakoni Sagale Diari Dionfo Balandougouba Parawol Kaalan Garambe Kalinko DINGUIRAYEDINGUIRAYE Dabiss Timba Noussy Herico Madina Fatako Koin Koba Selouma Sangaredi Missira Daralabe Koundianakoro Sansale Ninguelande Hafia Mombeya Kansanghi Santou Bourouwal Sintali Niandankoro Kinieran Tanene PITPITAA Bantignel Kankalabé Kollaghi Timbi-Tounni Sansando Bourouwal Dialakoro Komala Koura Konsotami Tarihoye Sarekaly Donghol Tappe Kébali Bodie BOKÉ Touma Bissikrima Norassoba Niantanina Kanfarande Maci Ditinn Mafara Kankama Koundian TÉLIMÉLÉ Teguerenya Morodou Daramagnaki Ley Miro Mitty Sanguiana Kolaboui Tionthian Gongore Arfamoussaya Cissela Doura Gougoudje Kaala Dogomet DABOLA Faralako Balato Gongore Niagara Banko Malapouyah Sinta DALABA Banguigny Sangareya Poredaka Koumana Bate- MANDIANA Kamsar Bintimodia Nafadji Koba Boulliwel Saramoussaya Konindou Babila Sogolon Timbo N’dema KOUROUSSA Mankountan Baguinet Tolo Dounet Baro Kollet Kegneko Kindoye Karifamoriah Kolia Kantoumanina Tougnifili FRIA MAMOU Kiniero Gberedou- Baranama Balandougou Tormelin Bangouyah Konkoure Tondon Passaya KANKAN Badi Soyah Missamana Saladou Douprou Lisso Koumban Oure-Kaba Beindou BOFFABOFFA Tamita Falessade Kolente Sougueta Banfele Tinti-Oulen Tanene Samayah KINDIA Sandenia Ouassou Marella FFARANAHARANAH Sabadou- 10° Baranama Damakania 10° Koba Khorira Nialia Friguiagbe Madina- Hermakono Moribayah Molota Oula Kouria DUBRÉKA Mambia Songoyah Tiro Douako ATLANTIC Maneah COYAHCOYAH Boula Wonkifong Sikhourou Tokonou Komodou CONAKRCONAKRYY Maferinya Albadariah Banian Mamouroudou Allassoya Moussaya OCEAN Kakossa FORÉCARIAH Linko Karala Kaback Kallia Sangardo Manfran Soromaya SIERRA LEONE KEROUANE Gbangbadou Kobikoro Farmoreah KISSIDOUGOU Sokourala 0 20 40 60 80 100 120 Firawa Benty Femessadou Damaro Samana Diassodou Yombiro Koumandou Beindou Banama Banankoro KILOMETERS Kounsankoro CÔTE Bardou CRDs COVERED BY PHASE I OF THE VILLAGE COMMUNITIES Yende Kondiadou Fouala 14° Kassadou Sibiribaro SUPPORT PROGRAM (VCSP) - IDA, IFAD, AFD funding Sinko CRDs COVERED BY THE PROGRAMME DE DÉVELOPPEMENT Watanka Binikala Bolodou Guendembou Moussadou D’IVOIRE LOCAL EN GUINÉE (PDLG) - UNDP/UNCDF funding Vasseredou Gbakedou Termessadou Bofossou Nionsomoridou Gbessoba MAURITANIA CRDs COVERED BY THE PROJET DE DÉVELOPPEMENT SOCIAL Balizia BEYLA Koundou GUÉCKÉDOU ET DURABLE (PDSD) - AfDB funding Panziazou MACENTMACENTAA Diaraguerela Nongoa Sengbedou CRDs COVERED BY PHASE I OF THE VCSP AND EITHER THE Fangamadou Tekoulo Daro PDSD OR THE PDLG Kouankan SENEGAL Ounde ADDITIONAL CRDs TO BE COVERED BY PHASE II OF THE VCSP Oreimay Boola Sererdou THE GAMBIA TO ACHIEVE NATIONAL COVERAGE MALI Koropara
NATIONAL CAPITAL Womey Foumbadou CAPITALE NATIONALE Nzebela GUINEA- Fassankoni Pale 8° Koule Laine 8° BISSAU BURKINA ADMINISTRATIVE REGIONAL CAPITALS Gouecke Gueasso FASO CAPITALES DES MINISTÈRES RÉSIDENTS Soulouta Gama-Berema GUINEA Kobela Kokota Koyamah PREFECTURE CAPITALS Samoe LOLA Conakry PRÉFECTURES N’ZÉRÉKORÉ Tounkarata LIBERIA Bowe Yalenzou C.R.D. CENTERS SIERRA LEONE Bossou N’zoo This map was produced by the CHEF-LIEU DE C.R.D. Pela Bounouma Map Design Unit of The World Bank. CÔTE D’IVOIRE GHANA CRD BOUNDARIES YOMOU The boundaries, colors,denominations LIMITES DE C.R.D. Banie Bheeta and any other information shown on ATLANTIC LIBERIA PREFECTURE BOUNDARIES this map do not imply, on the part of The World Bank Group, any judgment LIMITES DE PRÉFECTURES Bignamou Diecke OCEAN on the legalstatus of any territory,or INTERNATIONAL BOUNDARIES any endorsement or acceptance of FRONTIÈRES INTERNATIONALES such boundaries. Gulf of Guinea 10° 8° MARCH 2007