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Document of The World Bank Public Disclosure Authorized FOR OFFICIAL USE ONLY Report No. 103566-ZR INTERNATIONAL DEVELOPMENT ASSOCIATION INTERNATIONAL FINANCE CORPORATION AND MULTILATERAL INVESTMENT GUARANTEE AGENCY PERFORMANCE AND LEARNING REVIEW Public Disclosure Authorized OF THE COUNTRY ASSISTANCE STRATEGY FOR THE DEMOCRATIC REPUBLIC OF CONGO FOR THE PERIOD FY13-FY16 April 14, 2016 Public Disclosure Authorized Congo Country Management Unit, AFCC2 Africa Region The International Finance Corporation (IFC) The Multilateral Investment Guarantee Agency (MIGA) Public Disclosure Authorized This document has restricted distribution and may be used by recipients only in performance of their official duties. Its contents may not otherwise be disclosed without World Bank Group authorization. Last Country Assistance Strategy: May 9, 2013 FISCAL YEAR [January 1- December 31] CURRENCY EQUIVALENTS (as of February 4, 2016) Currency Unit = Congolese Franc (CDF) US$1.00 – CDF 929.37 ABBREVIATIONS AND ACRONYMS ACH Automated Clearing House FIRST Financial Sector Reform and AfDB African Development Bank Strengthening Initiative AF Additional Financing FP Family Planning AFD Agence Française de FY Fiscal Year Développement (French GAVI Global Alliance for Vaccines and Development Agency) Immunization ASA Advisory Services and Analytics GDP Gross Domestic Product CAB Central African Backbone GEF Global Environment Facility CAS Country Assistance Strategy GFATM Global Fund to Fight AIDS, CASA Conflict Affected States in Africa Tuberculosis and Malaria Initiative GLI Great Lakes Initiative CDF Congolese Franc GLR Great Lakes Region CIDA Canadian International GLRCF Great Lakes Region Conflict Development Agency Facility CTB Coopération Technique Belge GPE Global Partnership for Education (Belgium Technical Cooperation) GTZ German Technical Cooperation DB Doing Business Agency DDR Disarmament, Demobilization, and HD Human Development Reintegration III Program HIV/AIDS Human Immunodeficiency DfID Department for International Virus/Acquired Immune Development Deficiency Syndrome FDLR Democratic Forces for the ICAO International Civil Aviation Liberation of Rwanda Organization DHS Demographic and Health Survey ICT Information and Communication DPT Diphtheria, Pertusis, Tetanus Technology DRC Democratic Republic of Congo IDF Institutional Development Fund EC European Commission IFAD International Fund for Agricultural EIB European Investment Bank Development EU European Union IFC International Finance Corporation FAO Food and Agriculture Organization IMF International Monetary Fund FCPF Forest Carbon Partnership Facility INS Institut National de la Statistique FDLR Forces for the Liberation of (National Institute of Statistics) Rwanda ISSSS International Security and FIP Forest Investment Program Stabilization Support Strategy i JICA Japan International Cooperation REDD Reducing Emissions from Agency Deforestation and Forest JIP Joint Implementation Plan Degradation JSDF Japan Social Development Fund RBF Results Based Financing KfW Kreditanstalt für Wiederaufbau REGIDESO Régie de Distribution d'Eau (German Reconstruction Credit (National Water Utility) Institute) RTGS Real-time gross settlement KOICA Korea International Cooperation RVA Régie des Voies Aériennes (Air Agency Transportation Board) LLIN Long-lasting Insecticidal Nets RVF Régie des Voies Fluviales (Board M&E Monitoring and Evaluation of Waterways) MDTF Multi-Donor Trust Fund SCD Systematic Country Diagnostic MFI Monetary Financial Institution SCF Strategic Climate Fund MONUSCO United Nations Organization SCTP Société Commerciale des Stabilization Mission Transports et des Ports (Timber NGO Non-Governmental Organization Transport and Trading Company) NORAD Norwegian Agency for SEZ Special Economic Zone Development SGBV Sexual and Gender-based Violence OHADA Organisation pour SME Small and Medium Enterprise l'Harmonisation en Afrique du SNCC Société Nationale des Chemins de Droit des Affaires (Organization Fer du Congo (National Railway for the Harmonization of Business Company) Law in Africa) SNEL Société Nationale d'Electricité PBF Performance-based Financing (National Electricity Company) PEFA Public Expenditure and Financial SOE State-owned Enterprise Accountability SRTF Statistics for Results Facility PEMFAR Public Expenditure Management STAREC Programme de Stabilisation et and Financial Accountability Reconstruction des Zones Sortant Review des Conflits Armés (Stabilization PEP Post-exposure Prophylaxis and Reconstruction Program for PFM Public Financial Management Eastern DRC) PFMAP Public Financial Management and TA Technical Assistance Accountability Project TF Trust Fund PIU Project Implementing Unit UNAIDS United Nations Program on PLR Performance and Learning Review HIV/AIDS PPP Public-Private Partnership UNCDF United Nations Capital PRCGAP Projet de Renforcement des Development Fund Capacités de Gestion des UNDP United Nations Development Fonctions de l'Administration Program Publique (Enhancing Governance UNESCO United Nations Education, Capacity Project) Scientific and Cultural PREPAN Projet de Réhabilitation du Réseau Organization des Parcs Nationaux (National UNFPA United Nations Population Fund Parks Rehabilitation Project) UNICEF United Nations Children’s Fund PROMINES Governance in the Mineral Sector UNOPS United Nations Office for Project Technical Assistance Project Services PRSP Poverty Reduction Strategy Paper USAID United States Agency for International Development ii WASH Water, Sanitation and Hygiene WBG World Bank Group WFP World Food Program WHO World Health Organization iii IDA IFC MIGA Vice President: Makhtar Diop Nena Stoiljkovic Keiko Honda Director: Ahmadou Moustapha Ndiaye Cheikh O. Seydi Yasser M. Ibrahim Task Team Leader: Yisgedullish Amde Babacar Sedikh Faye Conor Healy iv Acknowledgements The core team consisted of Emmanuel Pinto Moreira, Luc Laviolette, Jean Christophe Carret, Olga Kadima and Zafar Ahmed. Support was provided by: Amina Temanda and Natalie Ford. The team received substantive inputs from: Franck M. Adoho, Philippe M. Aguera, Maria L. Amelina, Amadou Oumar Ba, Siaka Bakayoko, Anas Benbarka, Jerome Bezzina, Chiara Bronchi, Benjamin Burckhart, Matthias Cinyabuguma, Laurent Debroux, Spyridon Demetriou, Bella Diallo, Bourama Diaite, Steven R. Dimitriyev, Mahine Diop, Sidy Diop, Alexandre K. Dossou, Frank Douamba, Mohammed Dalil Essakali, Madio Fall, Abderrahim Fraiji, Douglas J. Graham, Chadi Bou Habib, Francisco Igualada, Adamou Labara, Julian Lee, Manuel Luengo, Jean Mabi Mulumba, Daniel Murphy, Pia Peeters, Rachel Bernice Perks, Dung-Kim Pham, Milaine Rossanaly, Diop Saidou, Hadia Samaha, Silvana Tordo, Maurizia Tovo, Alain Tienmfoltien Traore, Moise Tshimenga, Hugo De Vries, and Boris Weber and DE. v Democratic Republic of Congo Performance and Learning Review of the Country Assistance Strategy TABLE OF CONTENTS I. INTRODUCTION 1 II. MAIN CHANGES IN COUNTRY CONTEXT 2 A. Macroeconomic Developments 2 B. Poverty and Social Developments 2 C. Political Developments 4 D. Security 5 III. SUMMARY OF PROGRAM IMPLEMENTATION 5 A. Portfolio Performance and Issues 5 B. Evolution of Partnerships 6 C. Progress on Achieving CAS Objectives 7 D. Advisory Services and Analytics 11 E. Gender 12 IV. EMERGING LESSONS 12 V. ADJUSTMENTS TO THE COUNTRY ASSISTANCE STRATEGY 14 A. Relevance of the Current Strategy 14 B. Modification of the Results Framework 14 C. Indicative WBG Program 14 D. PLR Program Adjustments 15 VI. RISKS TO THE CAS PROGRAM 19 VII. ANNEXES 22 Annex 1: DRC: Updated CAS Results Matrix 22 Annex 2: Changes to CAS Results Matrix 43 Annex 3: DRC: Progress towards Original CAS Objectives 58 Annex 4: Poverty Trends 81 Annex 5: Gender as a Cross-Cutting Issue 85 Annex 6: Eastern DRC Risk Assessment 87 Annex 7: Progress on CAS Outcomes: Detailed 92 vi Annex 8: IFC Engagement in the DRC 97 Annex 9: Selected Indicators of Bank Portfolio Performance and Management 98 Annex 10: Operations Portfolio (IBRD/IDA and Grants) 99 Annex 11: IFC Committed and Disbursed Outstanding Investment Portfolio 100 Annex 12: Trust Funds Summary 101 List of Figures: FIGURE 1. POVERTY BY LOCATION, 2005 AND 2012 ........................................................................ 4 FIGURE 2: DRC POVERTY MAP ..................................................................................................... 83 FIGURE 3: LITERACY RATE, AGES 15–24, BY WEALTH QUINTILE ................................................. 84 FIGURE 4: UNDER-5 MORTALITY ................................................................................................... 84 FIGURE 5: POPULATION ACCESS TO BASIC INFRASTRUCTURE, PERCENT ....................................... 84 List of Tables: TABLE 1. POVERTY, 2005 AND 2012 ................................................................................................ 3 TABLE 2: DRC: SUMMARY OF PROGRESS ON ORIGINAL CAS OUTCOMES ....................................... 8 TABLE 3: PROPOSED WBG SUPPORT FY16–FY17, LENDING AND NON-LENDING ........................ 18 TABLE 4: SYSTEMATIC OPERATIONS RISK-RATING TOOL.............................................................. 20 List of Boxes: BOX 1: GREAT LAKES INITIATIVE .................................................................................................... 7 BOX 2: REENGAGEMENT OF THE INTERNATIONAL FINANCE CORPORATION (IFC) IN DRC .............. 9 vii I. INTRODUCTION 1. This Performance and Learning Review (PLR) assesses progress to date on the World Bank Group (WBG) FY13-FY16 Country Assistance