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
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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
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WASH Water, Sanitation and Hygiene WBG World Bank Group WFP World Food Program WHO World Health Organization
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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
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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.
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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
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I. INTRODUCTION
1. This Performance and Learning Review (PLR) assesses progress to date on the World Bank Group (WBG) FY13-FY16 Country Assistance Strategy (CAS) for the Democratic Republic of Congo (DRC). The CAS, which was anchored in the Government’s program (Poverty Reduction Strategy Paper - PRSP2, 2011–15) and the World Bank Strategy for Africa, has four strategic objectives: (a) increase state effectiveness and improve governance; (b) boost competitiveness to accelerate private sector-led growth and job creation; (c) improve social service delivery and increase human development indicators; and (d) address fragility and conflict in the eastern provinces.
2. The PLR confirms that the CAS objectives are still aligned with DRC development goals1 and 10 of the 14 outcomes are on track. However, it proposes that the CAS be adjusted to respond as the country situation evolves and new opportunities to strengthen WBG engagement emerge. WBG engagement has advanced rapidly with enhanced support being directed to the eastern provinces (fueled by the Great Lakes Initiative launched in 2013) and the effective reengagement of the International Finance Corporation (IFC) in July 2013. The Government has also requested additional WBG support in such areas as agribusiness, energy, supporting small and medium enterprises (SMEs), and making the investment climate more attractive.
3. The evolving macroeconomic, social, and political context suggests a need to review the WBG program and extend the CAS period by one year from FY16 to FY17. The extension will (i) allow adequate time for a post-election transition period, (ii) provide time to complete the National Development Plan FY17-FY21; (iii) implement emerging WBG activities and the remaining CAS deliveries; and (iv) prepare the Strategic Country Diagnostic (SCD) which will inform the Country Partnership Framework in FY17. The DRC has in recent years registered a decline in poverty, is slowly consolidating peace in the eastern provinces, and is continuing the prudent economic policies that have brought it solid macroeconomic performance and growth. However, the elections planned for 2016, the creation of new provinces, and current economic global trends have created uncertainties for the near future in terms of a slowing of reforms as the elections near, severe capacity constraints that have been exposed by the decentralization process, and the negative effects of plunging prices and demand for raw materials.
4. This PLR describes (a) the main emerging macroeconomic, social, and political developments and security issues; (b) program implementation to date; (c) emerging lessons; (c) adjustments to the CAS; and (d) risks to the program.
1 DRC is implementing its five year development framework with the objectives of economic diversification, growth acceleration and poverty reduction. In addition, provinces also have their own provincial development plans. 1
II. MAIN CHANGES IN COUNTRY CONTEXT
A. Macroeconomic Developments
5. DRC continues to be one of Africa’s most rapidly growing economies. For 2010–14 the economy grew at an annual average of 7.7 percent, and the growth of extractive industries reached 25 percent. So far, mainly through careful management of spending, the overall deficit has been well-controlled at 0.1 percent of gross domestic product (GDP) in domestic balance. Prudent macroeconomic policies and management of the budget kept inflation down to about 1 percent in 2013–15 and have stabilized the Congolese franc at about 920 per US dollar for the past four years, based on a floating exchange rate regime. According to the Debt Sustainability Analysis (August 2015), “stable macroeconomic fundamentals” have kept DRC’s risk of debt distress moderate. The Country Policy and Institutional Assessment (CPIA) also showed steady improvement, going from 2.7 to the current 3.0 in two years, with marked improvement in macroeconomic management, debt management, and structural policies. However, if key macro variables such as the current account and the balance of payments continue to deteriorate, the risk of debt distress may go up.
6. The global economic slowdown and the decline in demand for and prices of minerals have begun to take a toll on the economy. Growth slowed to 7.7 percent in 2015 against an original projection of 10.2 percent. Although mining has driven DRC’s growth, the high market and product concentration of exports is becoming of more concern. For instance, 90 percent of DRC’s exports (30–35 percent of GDP) are oil and minerals, and over 40 percent of exports go to China. Apparently the decline in the demand for and prices of raw materials are pushing some mining operators to stop production. The situation threatens to worsen the public deficit and cause deterioration in DRC’s external accounts. The continuing exogenous shock, exacerbated by insufficient revenues and low international reserves, heightens the vulnerability of the economy. The impact of the shock on the balance of payments in 2016 is expected to reach 3.3 percent of GDP, which will further erode reserves. The estimated fiscal shock of 1 percent of GDP will give fiscal policy little room to maneuver to absorb the shock without jeopardizing pro-poor spending.
7. Because the mining sector has yet to bring in more revenue, the Government has narrow fiscal space and insufficient reserves. Extractive industries account for 41 percent of total domestic revenues but in 2014 they represented only 13.3 percent of GDP and 17.8 percent of the value of mineral and oil exports. This is relatively low for rent-generating sectors, which suggests there is considerable untapped potential to mobilize more revenue. Despite the volume of its commodities exports, the DRC lacks a significant foreign currencies buffer; for the past few years its international reserves have not exceeded eight weeks of imports and in August 2015, sank to 6.4 weeks. The Government is committed to reinforce its fiscal levers and has proposed a revised law, currently before Parliament, that should help increase its revenues from mining; it also continues to improve its management of both public finances and public resources.
B. Poverty and Social Developments
8. A comparison of recent data and the data available when the CAS was prepared confirms that poverty is indeed declining in DRC, although much more slowly than the
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economy has been growing. The national poverty rate went down from 69.3 percent in 2005 to 64 percent in 2012 (the most recent data available), and extreme poverty (total consumption lower than the food poverty line, which in 2012 was 438,165.8 Congolese Francs (CDF) which dropped from 33.8 to 27 percent. Rural poverty fell by 5.6 percent and urban poverty by 4.1 percent. The Gini coefficient2 showed a slight improvement during the same period with a reduction of 3 percent: though the consumption of the poorest households grew only slowly (1.2%), that of those in the top wealth quintile actually fell by 5.6%. During the same period, the growth elasticity of extreme poverty was –0.68 while the growth elasticity of poverty was only –0.27. The rigidity of poverty can be explained by both the sources of growth and the management of natural resources. Table 1 and Annex 4 show the poverty trend and comparison by geographic areas.
Table 1. Poverty, 2005 and 2012 Squared Poverty Poverty Incidence of Poverty Gap Gap Gini 2005 2012 Change 2005 2012 2005 2012 2005 2012 Change National 69.3 64.0 -5.4 25.5 30.3 13.2 16.7 38.0 35.0 -3.0
Kinshasa 56.3 52.8 -3.5 19.0 17.6 8.7 8.0 35.1 32.4 -2.6 Other urban areas 71.9 66.8 -5.1 31.9 26.7 17.5 13.6 38.0 36.0 -2.0 Rural 70.5 64.9 -5.6 30.7 26.4 16.8 14.0 38.1 34.9 -3.2
Urban 66.6 62.5 -4.1 27.5 14.6 23.9 11.9 37.6 35.2 -2.5 Rural 70.5 64.9 -5.6 30.7 16.8 26.4 14.0 38.1 34.9 -3.2
Gender of household head Male 69.8 64.7 -5.1 30.0 25.8 16.3 13.5 37.9 34.6 -2.7 Female 66.5 60.1 -6.5 27.6 23.4 14.7 11.9 38.6 36.7 -3.6
9. However, between 2002 and 2012, the number of poor people in the DRC increased by 7 million, with significant heterogeneity across provinces (Figure 1)3. One reason for the increase is the high DRC fertility rate. While poverty has become deeper and more severe in the central regions (Kasai Oriental, Kasai Occidental, and Maniema), all poverty indicators have improved in the northeastern provinces (Orientale and North Kivu), including both the incidence of poverty and the number of people living below the poverty line.
10. DRC’s ranking on the 2015 Human Development Index has improved even while all its human development (HD) indicators remain low, with DRC ranking 176th out of 188 countries; in 2012 it was the last of 187 countries. Notable improvements were registered in child mortality, primary school enrollment, and social spending. However, DRC did not meet any of the Millennium Development Goals (MDGs).
2 A Gini index of 0 represents perfect equality, and 100 implies perfect inequality. DRC’s coefficient is within the average for African countries where figures are available. 3 DRC’s fertility rate rose from 6.3 in 2010 to 6.6 in 2014 (DHS). 3
Figure 1. Poverty by Location, 2005 and 2012
Poverty incidence (% Poor) Poverty incidence (% Poor) in 2012 in 2005
Orientale Orientale
Equateur Equateur
Nord-Kivu Nord-Kivu
Maniema Sud-Kivu Maniema Sud-Kivu
Kinshasa Bandundu Kasai Oriental Kinshasa Bandundu Kasai Oriental
Bas-Congo Kasai Occidental Bas-Congo Kasai Occidental
Katanga Katanga Mean Mean 76.4 - 90 76.4 - 90 63.5 - 76.4 63.5 - 76.4 56.3 - 63.5 56.3 - 63.5 48 - 56.3 48 - 56.3
11. Gender equality is still an issue. Although female-headed households seem to fare better than male-headed households, for identical time spent at work 56 percent of women but only 40 percent of men earn less than 30,000 CF per month. Several provisions in the Family Code conflict with DRC’s constitutional commitments to nondiscrimination and gender equality and its obligations under the International Convention on the Elimination of All Forms of Discrimination against Women.
C. Political Developments
12. Issues related to the 2016 presidential and parliamentary elections may exacerbate tensions and stall some reforms. In early 2015, a law that would have required a nationwide census before elections could be held, which would have delayed them, led to violent protests in Kinshasa and the eastern provinces. The protests ended when the law was altered to accommodate popular opinion. In 2015 Parliament adopted a law that raised the number of provinces from 11 to 26 and after a delay of nearly one year, the governors’ election is now planned for March 26, 2016. The new municipal, local, and provincial elections planned for October 2015 were postponed and the Presidential and legislative elections planned for November 2016 are not yet confirmed.
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D. Security4
13. While in general the security situation is relatively quiet, in the east conditions are still problematic, even volatile. The DRC army’s defeat of the M23 rebel movement 5 in December 2013 promised a new opportunity for peace in the eastern provinces, but regional and local rebel groups are still active. In recent months violence has been festering in some communities in northern Katanga; and the influx of refugees from Burundi since May 2015 has heightened tensions in communities in South Kivu. The WBG is working closely with both the Government and the United Nations Organization Stabilization Mission (MONUSCO) to launch Disarmament, Demobilization, and Reintegration III (DDR) program, but more effort will be needed to integrate dialogue with military operations, enhance coordination with MONUSCO, and advance security reform.
III. SUMMARY OF PROGRAM IMPLEMENTATION
A. Portfolio Performance and Issues
14. World Bank support to the DRC has grown since the CAS began, with net IDA commitments currently amounting to US$2.25 billion compared to US$1.87 at end-2012.6 The IDA portfolio has expanded due to (a) increased demand from the Government for unanticipated initiatives that the WBG considered important for development and security (such as rehabilitation of Goma Airport and the Reinsertion and Reintegration Program); and (b) extension of the closing date for some projects taking longer to complete than expected. As a result, rather than the portfolio being consolidated as envisioned the number of national IDA projects went up from 15 to 21.7 In what remains of the CAS period, consolidation of the portfolio will be sought by providing additional financing (AF) to projects that are performing well; combining national and regional initiatives into single project thereby leveraging resources and implementation efforts; closing projects on time, with exceptions when justified; and taking advantage of Trust Fund (TF) resources to support our environment agenda.
15. Though the quality of the WB portfolio has been mixed over the past two years, the disbursement rate has been high. Most of the projects are rated as having a High or Substantial risk of achieving their objectives as planned.8 The portfolio has two problem projects and 10 operations rated as Moderately Satisfactory (MS) for which specific corrective actions have been identified, and two other projects are being restructured.9 In the past two years a disbursement rate of over 25 percent was achieved owing to enhanced dialogue with the Government during effective
4 For a more extensive assessment of security-related risks and their potential impact on programs, see Annex 6. 5 With support from the United Nations Organization Stabilization Mission in the DRC (MONUSCO). 6 These exclude two regional energy projects (US$1.14 billion), and projects under the Great Lakes Initiative, discussed later on. 7 Excluding regional and two Global Environment Facility projects 8 Based on 16 projects with risk ratings generated by the Systematic Operations Risk-Rating Tool (SORT). 9 DRC has two country flags (Country Environment and Record), which increase the likelihood of potential/ problem projects.
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Country Portfolio and Performance Reviews and by fostering greater government ownership.10 However, implementation capacity is still problematic. Projects are now being gradually implemented through government entities, with a relatively high number of prior procurement reviews11 and stringent financial and audit arrangements. However, there are now renewed discussions about the effectiveness of strictly implementing new projects through government institutions and phasing out Project Implementing Units (PIUs) given the mixed performance so far observed.
16. The creation of new provinces adds new complexities to the Bank portfolio and its efforts to strengthen subnational governance. New governance challenges are likely as the DRC moves from 11 provinces to 26 subnational governments. Both budget issues and the uncertainties associated with the new institutional framework might complicate WBG operations in DRC through multiple layers of delays should devolution of resources, functions, and responsibilities not be well-managed.
17. IFC re-engagement in DRC in mid-2013, after the CAS was prepared, made the DRC IFC’s portfolio the fastest growing one in Africa despite serious market challenges for private investments inherent to the fragility of the country. Further information on IFC activities is provided in the overview of progress on CAS objectives.
18. The TF portfolio amount to US$320 million, with substantial engagement in the climate change agenda. The environment sector has brought in over US$70 million in grant resources, reflecting DRC’s importance in forests and climate change. The Global Partnership for Education project also brings substantial support to the education and country engagement. TFs have been making significant contributions to the CAS results, as detailed in Annex 12.
19. The Advisory Services and Analytics (ASA) program has contributed to CAS achievements. ASAs have influenced policy dialogue and informed Bank engagement; helped implement reforms; and provided a tool for WBG on how to operate better in post-conflict environment. Section E provides more information.
B. Evolution of Partnerships
20. The WBG has continued building up its partnerships within the Donor Coordination Group. For instance, the WBG has collaborated with partners in support of the Inga TA project, the health project (to create a common platform for performance-based financing – (PBF) and the education sector (Global Partnership for Education program). It has also worked with partners to help the Government to monitor child protection services, as well as its urban work. It is also successfully leveraging financial support from for its public financial management (PFM) and public administration support. The Bank chairs the Environment Donors Group and with other
10 A shift from high to moderate risk of debt distress ("Yellow Light" Country) meant that DRC can now access a mix of IDA grant and IDA credit resources. The IDA credit effectiveness process is longer, thereby slowing the pace of disbursement for newly approved projects. As a result, disbursement has been lower in FY16. The Bank is working with government to address these issues. 11 As of December 2014 the Bank has introduced a new Risk-based Prior Review Threshold (PRT). Rather than being country- based, the new PRT is determined by the Procurement Risk Assessment and Management System for each project.
6 development partners, and with Norway, is supporting the DRC Reducing Emissions from Deforestation and Forest Degradation (REDD) agenda. In addition, WBG staff has worked with MONUSCO in support of the Government’s DDR program and with other partners, is establishing a multi-donor TF to support DDR III. Some partnerships have had challenges, however. For instance, the Department for International Development (DfID) pulled out of co-financing arrangement for two WBG projects due to changes in priorities, leaving a financing gap.
21. In eastern DRC, the WBG is active in donor coordination forums related to its areas of interest. The WBG is supporting the Great Lakes Initiative (GLI, Box 1), and actively consults with the Governments of the Great Lakes Region (GLR) in collaboration with the UN, the African Union, regional organizations, and other development partners. Engagements are aligned with the International Security and Stabilization Support Strategy (ISSSS) in support of the Government’s Stabilization Program for Eastern DRC (STAREC). The Office of the Special Envoy of the UN Secretary-General for the Great Lakes has requested IFC support in preparing a private sector investment conference for the Great Lakes. Box 1 details WBG engagement.
Box 1: Great Lakes Initiative The Great Lakes Initiative (GLI) is the WBG/ UN response to the Peace, Security and Cooperation Framework, a regional agreement that includes all the countries of the Great Lakes Region, sets out priorities and benchmarks for collaboration on peace, security and development; and relies on the UN and the AU as external guarantors. The GLI was initiated during the visit of UN Secretary General Ban Ki-Moon and WBG President Jim Yong Kim to Goma in May 2013, after the town was liberated from the M23 rebels. The GLI is the first initiative of its kind in the region; its successful launch has since spawned similar approaches in the Sahel and the Horn of Africa. The UN has appointed a Special Envoy for the Great Lakes Region to lead the process.
GLI intends to address regional factors driving current and past conflicts through socioeconomic recovery investments and development, with the WBG focusing on early recovery and development investments and capacity-building while UN partners emphasize security and political issues. The WBG is putting together a bundle of regional programs, building on country ownership and complemented by national programs. About half of the US$1 billion committed is allocated to DRC, the country in the region that has been hardest-hit. So far the WBG has approved a total of US$538 million, focusing on energy development, sexual and gender-based violence, women’s health, capacity building, information and communications technology (ICT) connectivity, and support to the International Conference on the Great Lakes Region. Other projects being prepared are on agriculture, trade facilitation, energy from Ruzizi, transport corridor development, and support for communities affected by forced displacement. Three DRC national projects, accounting for a total of US$146 million, have been approved to enhance this initiative (Goma airport rehabilitation, eastern recovery, and reinsertion and reintegration projects).
Analytical activities leveraging TF resources include (1) the GLR Conflict Facility (GLRCF) TF, managed by the WBG and the office of the UN Special Envoy, to provide support on conflict-sensitive project design and implementation, risk analysis, and stakeholder dialogue; (2) together with UNHCR, a study on forced displacement to inform project design; and (3) development of indicators to monitor progress in achieving stability and a peace dividend. Finally, in keeping with objective four of the CAS (addressing fragility and conflict in the eastern provinces), national programs have been aligned with the GLI where possible.
C. Progress on Achieving CAS Objectives
22. In general, the CAS is being implemented as envisaged, except for a few delays in WB project preparation and the dropping one activity related to the mining sector. 10 of 14 outcomes within the four Strategic Objectives are on track (Annexes 3 and 7 detail progress on each outcome). 7
23. CAS Strategic Objective One: There has been progress in increasing state effectiveness and improving governance. Two of the three outcomes for this objective are on track (Table 2), though with some delays. The Government now has a framework to improve PFM and public procurement, and reporting on public finances is more transparent and timely, despite the slow rate of budget execution. Transparency and effectiveness in managing financial resources from the forest, oil, and mining industries are monitored by a joint Government/WBG team using the Economic Governance Matrix. The Secretariat of the Extractive Industries Transparency Initiative declared that DRC was compliant in July 2014, and the country approved a revised Petroleum Code in September 2015. The mining project, Governance in the Mineral Sector Technical Assistance Project (PROMINES) supported the revision of the Mining Code that is now before Parliament. However, while some progress was made in making forest sector management more effective, it is still unsatisfactory - obtaining national figures is difficult and taxes collected are minimal. Also, despite some achievements, the SOE performance outcomes are currently off-track. SOE debt has been restructured, and service contractors were recruited for the National Electricity Company (SNEL), the Water Utility (REGIDESO), and the Rail Company (SNCC). But the planned positive cash flows have yet to be achieved, and SNCC’s financial sustainability is particularly precarious because of uncertainty about government financial support and the cessation of IDA support for SNCC’s operating costs. Due to poor performance in 2013/2014 and given that AF for PROMINES, which was to focus on the SOE, could not go forward, the mining sector SOE was dropped.
Table 2: DRC: Summary of Progress on Original CAS Outcomes12 Strategic Objectives/Outcomes Status Strategic Objective One: Increase state effectiveness and improve governance 1.1. Increased transparency and efficiency in the management of public finances at the central level On track and in the (former) provinces of Bandundu, Katanga, Kasai Occidental, and South Kivu 1.2. Increased transparency and effectiveness in the management of financial resources from the On track forest, oil, and mining industries 1.3. Enhanced governance of mining sector state-owned enterprises (SOEs) and increasing the Off track operational performance of other SOEs Strategic Objective Two: Boost competitiveness to accelerate private sector-led growth and job creation 2.1. Enhanced business environment for private sector development On track 2.2. Improved connectivity and access to transport infrastructure On track 2.3. Improved access to quality broadband network and services at reduced cost Off track 2.4. Increased generation of electricity and improved access to energy On track 2.5. Boost agriculture production and increase access to markets On track Strategic Objective Three: Improve social services delivery and increase human development indicators 3.1. Increased access to clean water and sanitation On track 3.2. Improved access to health services in targeted areas Off track 3.3. Improved access to basic education in targeted areas On track 3.4. Strengthened social protection system Off track Strategic Objective Four: Address fragility and conflict in the Eastern provinces 4.1. Improved management of public finances and accountability in targeted conflict-affected areas On track 4.2. Increased socioeconomic opportunities in targeted conflict-affected areas On track Total on track 10 Total off track 4
12 With the provinces increasing from 11 to 26, progress will still be measured using former provincial boundaries, and will cross-reference the new provinces as needed. 8
24. CAS Strategic Objective Two: Concrete results were achieved in terms of boosting competitiveness to accelerate private sector-led growth and job creation. Four of the five outcomes are on track, although progress has been slow. Because the CAS was prepared before IFC fully re-engaged in DRC, it does not capture the full scope of IFC activities since (Box 2 and Annex 7). An inter-ministerial group overseen by the Prime Minister focuses on the business environment, which positioned DRC to be one of the top 10 reformers in the 2015 Doing Business (DB) Report; nevertheless, DRC continues to rank low (184th out of 189 countries in the 2016 report).13
25. DRC is now classified as a Tier one country, with an enhanced WBG approach. Areas of collaboration are being defined for IDA, IFC, and MIGA in targeted areas, such as energy, finance, investment climate, and SME development. An IDA-IFC Joint Implementation Plan (JIP) for agribusiness is underway. Notable areas of Bank-IFC joint engagement include energy (Inga 3 hydropower project and Ruzizi); Western Growth Poles Project (Special Economic Zone); agriculture (Regional Great Lakes Integrated Agricultural Program, and the Western Growth Pole through Agro-Industrial Park development, as well as a planned JIP); and the development of financial markets. New WBG funds offering longer maturities and cheaper capital are becoming available (e.g., IDA’s Microfinance Promotion Fund, and IFC’s SME and microfinance credit lines and Line of Credit for Medium to Long Term Finance under the DRC Financial Infrastructure and Markets Project), along with IFC’s venture capital funds to support startups (supported by the WBG during the CAS period). MIGA currently guarantees three investments, for a gross exposure of US$152.4 million, and supports the telecoms, infrastructure equipment, and financial sectors. The telecom project, signed in 2014, was the first use of MIGA’s Conflict-Affected and Fragile Economies Facility.
Box 2: Re-engagement of the International Finance Corporation (IFC) in DRC Since its full re-engagement in the DRC in July 2013, IFC has considerably scaled up its investment and advisory operations, and its portfolio has grown by almost US$200 million. To help strengthen and diversify the economy, and in line with CAS objectives, IFC investments are targeting finance, agribusiness, and infrastructure; as well as promoting development of SMEs and supporting investment climate reforms. Despite the serious market challenges for private investment inherent in the fragility of the country (for example, the very difficult business environment and the high country risk, the profile of potential sponsors [integrity risk, capacity, etc.], the small size of potential agribusiness and manufacturing projects, and the security risks in parts of the country), extensive business development efforts continue so as to expand IFC’s investment and advisory operations in strategic areas. DRC will continue to be a priority country for the IFC Conflict-Affected States in Africa (CASA) Initiative, which supports private sector growth in nine fragile countries in Africa. CASA is supported by Ireland, the Netherlands, and Norway. Annex 8 further details IFC’s recent engagement.
26. Many of the results on connectivity and agriculture have been achieved. The Government provided funding for the National Road Fund (FONER), and Bank support promoted mobility for an estimated 2.9 million people. It also prevented the collapse of SNCC, the railway company – although its sustainability as a joint Government/Bank-funded project remains questionable. The ICT outcome is off track as results have yet to accrue from the CAB5 (Central
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African Backbone 5 Project), and Internet prices have not yet dropped. Moreover, the new legal framework is still awaiting approval. Increased generation of and improved access to energy are on track, with some delays. The Government passed an electricity law to improve rural access and to allow private operators to produce and distribute electricity. Agriculture primary crop yields and market access have also expanded. The planned activity to monitor hydro-meteorology and build in adaptation and resilience is now being discussed with the Government after delay, given the availability of GEF resources.
27. CAS Strategic Objective Three: Despite the challenges for the DRC in meeting the MDGs, two of the four outcomes for this objective are on track. Water distribution and household connection targets have been met and in some cases surpassed, and the Bank has financed a master plan for sanitation for certain cities. Access to basic education at all levels has improved. However, in terms of health services, despite some success with PBF approaches, such as a 30 percent reduction in under-5 mortality, the access to health services goal is off track. Moreover, movement has stagnated on indicators related to family planning (FP) and chronic child malnutrition (at 43 percent, the DRC has one of the highest rates of stunted growth in Africa). The goal of strengthening the social protection system is also off track. WBG has supported a review of social safety nets and the drafting of norms and standards for child protection services in collaboration with UNICEF and USAID, and the initial results on the quality of child protection services are encouraging. The Government is currently drafting the first comprehensive national social protection policy and strategy; however, whether financing will be adequate to put in place a realistic strategy and commitment is questionable.
28. The commitment to mainstream citizen engagement in all Bank operations by FY18 is being effected in education and health as well as other sectors. The Bank created participatory governance programs in three universities and piloted user feedback on the performance of the water SOE. It has also been working to build up school governance and social accountability to sustain development of the education sector.
29. CAS Strategic Objective Four: Both outcomes, which address fragility and conflict in the eastern provinces14 and are directly related to one IDA17 theme, are on track. With regard to opening up socioeconomic opportunities in targeted areas, many of the components of the Eastern Recovery Project and GLI are becoming operational. The Eastern Recovery Project supports the creation of short- and medium-term employment opportunities and addresses rehabilitation needs through small community-driven projects. Working with the provincial governments and the UN, strategic corridors for building agricultural value chains and rehabilitating roads have been selected to maximize the contribution to stabilization efforts. Special attention is being given to governance measures to improve social cohesion and build local capacity in conflict management and mediation. Support for mobilizing more revenue, participatory budgeting, and reporting on provincial budget execution continues but needs greater impetus.
30. In addition to such national initiatives, WBG is also engaged as part of the GLI (Box 1), the operations of which advance this strategic objective. The first and critical GLI project is the Great Lakes Emergency Sexual and Gender-Based Violence and Women’s Health (SGBV)
14 For a more extensive assessment of security and risk issues in the eastern provinces, see Annex 6. 10
Project,15 a multi-sectoral, regional program to expand health services and mitigate the impact of SGBV by close collaboration with other partners.
D. Advisory Services and Analytics
31. The ASA program is designed to contribute to CAS outcomes through focused, relevant, just-in-time, and widely-disseminated products linked to country policies and WBG support. Among these are: Influencing policy dialogue and decisions and informing Bank engagement: A poverty assessment now underway will outline both progress and challenges faced in reducing poverty and advancing shared prosperity. DRC Economic Updates highlight DRC’s development challenges while commending its macroeconomic policies. The 2013 Kinshasa International Conference on Economic Growth and Governance helped shape the government’s agenda by consolidating first-generation and accelerating second-generation governance and institutional reforms. The current Urbanization study will inform the future Bank support. The river and urban transport study has outlined options for river transport as well as urban mobility in Kinshasa. Forestry and land studies have helped shape Bank engagement in rural areas. A forthcoming joint Bank-IFC report on promotion of investment in agriculture will help inform the Government’s approach to agribusiness. ASAs on HD have also provided vital information, among them studies on demographics, access to health services, human resources in health, an education and health Public Expenditure Review (PER), technical assistance for higher education, a skills study, an education sector strategy, reviews of early childhood education and social safety nets, and an assessment of nutrition interventions to help operationalize the national nutrition policy. Through a Nordic TF, the DRC mining team researched the relationship between mineral sector and sexual violence in eastern DRC, which helped establish the Women in Mining network funded by the PROMINES project. Helping implement reforms: Bank support to this end has included an assessment of domestic revenue mobilization, the use of country systems and the Public Expenditure Management and Financial Accountability Review (PEMFAR), and an assessment of subnational governance to inform the decentralization policy. An analytic framework based on enterprise surveys to improve the investment climate will facilitate customization of local interventions. Understanding conflict: The Conflict Facility has undertaken analytical studies to identify sources of vulnerability and resilience in cross-border trade to advise the trade project. Assessment of risks to the eastern DRC portfolio is underway, and studies have begun for the agriculture and displacement projects. WBF also utilizes assessment from other partners (such as the ISSSS’ work on perception with Harvard University). Gender focus: The Bank’s Africa Gender Innovation Lab (GIL) is currently undertaking impact evaluations to understand the gender gap. In agriculture, the study analyzes access to new technologies and markets, as well as how household and care responsibilities constrain women’s productivity. Studies in Eastern DRC look at gender-based violence on female cross- border traders and the impact of training and information on levels of corruption, gender-based violence, and economic outcomes. With International Rescue Committee, GIL is evaluating the impact of Engaging Men in Accountable Practice on preventing gender based violence.
15 The objectives of the SGBV project are to (a) expand services to mitigate the impact of sexual and gender-based violence; and (b) expand utilization of a package of health interventions for poor and vulnerable females. 11
E. Gender
32. The CAS identified gender as a cross-cutting issue and outlined opportunities for gender mainstreaming in operations and analytical work. The current WBG portfolio in DRC has a considerable focus on gender (Annex 5). Local and community governance mechanisms being crafted to improve demand-side governance offer opportunities to enhance women’s participation in health and school management committees. The investment climate program has supported reforms of the Family Code to allow married women independent access to finance, property rights, and entrepreneurship, and to expand their working-age and professional options. At least 40 percent of women producers in the Bas-Congo are expected to benefit from agricultural inputs and increased access to markets through the Western Growth Poles Project. Considerable progress has also been made to improve girls’ access to primary schools and a WBG-financed women’s health project in eastern DRC specifically addresses sexual and gender-based violence. Some 95 percent of small cross-border traders are women and the regional trade facilitation project intends to address their specific concerns about gender-based violence and corruption. The WBG will also continue to encourage the Government to seek opportunities within its operations to address gender inequality by providing analysis and proposing actions or through its monitoring and evaluation (M&E) arrangements.
IV. EMERGING LESSONS
33. WBG should take a longer term view of its engagement in DRC, balancing institution building with investment, some of which can show quick results. Strong institutions anchor peace and stability. As the World Development Report 2011 16 states, weak institutions are one of the common denominators in explaining repeated cycles of violence; however building institutions takes decades, thus the need to stay engaged and take a step-by-step approach.
34. Building on the experience learned to improve the governance, operational performance, and sustainability of SOEs, taking a gradual approach in select sectors is justified. It appears that before attempting to address such systemic issues as overstaffing, major social debt, and limited capacity, it may be more fruitful to focus on certain SOEs where the WBG has not only strategic engagement and resources but also government buy-in that can ensure sustainable results. The ambitious, full-fledged public-private partnership (PPP) approach had to be modified to a service contract model due to lack of interest from the private sector, but results so far are encouraging; the results should be assessed before the CAS ends to determine if this approach is successful in contributing to sustainability . Monitoring progress of some SOEs as part of the Economic Governance Matrix is also contributing to this effort.
35. Government commitment, political will, and capacity to institute and carry through reforms and policies is crucial to achieving results. In addition to the issues already discussed, the sustainability of SOEs requires government commitment to resolve problems such as inter- governmental arrears and tariffs. The challenge of managing the uneven distribution of medical
16 World Development Report 2011: Conflict, Security, and Development 12
personnel, for instance, demonstrates that both technical solutions and a strategy to address underlying political economy issues are needed. Experience from other countries makes it clear that the scale of the social protection reforms required to address vulnerability in DRC will demand a high level of political commitment and significant funding.
36. Transparent initiatives that incorporate demand-side approaches, supplemented by targeted training, achieve better results. This approach has already been incorporated in recently processed projects such as urban water. The review of the Emergency Social Action Project (P086874, FY05–FY13) states that “transparency is possible even in governance-challenged contexts through sufficient training to local staff and partners, transparent procurement and resource management, and strong internal and external audit functions.” With regard to the Bank’s work in PFM and public procurement, results are achievable when its portfolio of operations combines supply-side governance and participatory budgeting, with demand-side governance at city-level. Lessons from DRC extractive sectors, supported by EITI, emphasize the importance of competition, transparent contracts, transparent use of revenues, and the role of civil society in demand-side accountability, to enhance revenue for the country.
37. A shift to a more results-based financing strategy produces better outcomes than a supply-push or input-driven approach. The Haut-Katanga Results Based Financing (RBF) for the pilot health impact evaluation demonstrates this, and other projects, such as those in the education sector, now build RBF elements into their design. The emerging lesson from the urban development project is that the project’s infrastructure RBF mechanism offers incentives to improve local governance and will benefit from substantial per capita investment.
38. Flexibility in implementation and simplification of geographic targeting achieves better results in a large country like the DRC that has flimsy logistic and institutional capacity and high security and governance risks. Lessons from the education and private sector development projects make it clear that long-run benefits accrue to the client when the WBG implements projects using country structures, but only when there is considerable active institutional and capacity support, thus the need for flexibility in setting up how projects are to be conducted. Geographic targeting is also prudent to achieve visible results, given the size of the country.
39. One WBG approach enhances service to clients. The two-year collaboration between IFC and IDA in such areas as energy, the investment climate, and agribusiness has benefited the client and fostered the one-WBG approach within the Bank.
40. Major lessons have also emerged in addressing conflict and insecurity in eastern DRC.17 A primary one is the importance of conflict assessment and cross-border sensitivity to ensure that activities address particular dynamics and drivers of conflict. A local, bottom-up, participatory planning process is required to ensure that programs address community needs, as in the successful WBG pilot project on participatory budgeting. It is also important to work with existing coordination structures, as in the ISSSS/STAREC province-led stabilization strategy.
17 For more details on this and aspects of a particular program, see Annex 5. 13
41. The IFC portfolio growth in the DRC has been possible thanks to the extensive business development efforts; the design of fragility-sensitive projects (“conflict lens”) with targeted advisory interventions; the development of solid local market intelligence and tailored approach to client engagement; and the close collaboration with WB and other development institutions. Further expansion of IFC’s operations will be greatly facilitated by continued utilization of IFC’s broad array of tools and special programs to help develop and implement projects in FCS, such as CASA (which has supported the enhancement of IFC footprint after reengagement in the DRC); SME Ventures, blended finance in agribusiness, SMEs, and climate projects; InfraVentures; and the new Special streamlined procedures for FCS and separate FCS risk envelope
V. ADJUSTMENTS TO THE COUNTRY ASSISTANCE STRATEGY
A. Relevance of the Current Strategy
42. While confirming the continued relevance of the current CAS objectives with respect to DRC development priorities, the PLR proposes that WBG support be enhanced in specific areas to address emerging priorities. The overarching objectives of the DRC’s PRSP2 are to diversify the economy, accelerate growth, and reduce poverty to 60 percent by 2015 by maintaining average annual GDP growth of about 7.2 percent; raising public investment to 19 percent of GDP; and making investment more efficient. However, despite PRSP2’s expectations, it is unlikely that the DRC can achieve the MDGs and eliminate gender-based inequalities by 2020. The Government will continue to seek WBG support for these and emerging priorities.
B. Modification of the Results Framework
43. The PLR proposes extending the term of the CAS by one year from FY16 to FY17, dropping one WB activity, adding or restructuring activities, and making corresponding adjustments to outcomes, indicators, and milestones. As already discussed, the extension is needed to: allow for a post-election transition period, complete the national development plan; implement new WBG activities and the remaining CAS deliveries; and finalize the SCD. In addition, these modifications will help refine existing definitions to better match project M&E and to reflect FY17 targets for the indicators (Annex 1). A key change is dropping the mining SOE and related milestones from outcome 1.3. Details on changes are provided in Annex 2.
C. Indicative WBG Program
44. The actual IDA envelope available for FY13–FY14 (IDA16 period) was about US$760 million. As of February, 2016, new commitments during the CAS period totaled US$1,238 million.18 Almost all the programs, except for the two already discussed, were carried out. The WBG is currently taking new initiatives under the GLI and is also responding to recent government
18 Since 2015, the DRC, classified as at moderate risk of debt distress, has been receiving 50 percent grant and 50 percent credit. 14
requests through projects aligned with the CAS. The program for the outer years of the CAS was not defined, leaving the future program flexible. For FY16/17, the DRC has allocations equivalent to about US$ 878 million from the national portfolio and about US$430 million from the regional GLI.19 The instruments will continue to be primarily investment operations, with targeted RBF. There will be increased use of multi-sector and cross-Global-Practice programs to enhance delivery and effectiveness.
D. PLR Program Adjustments
45. Additional initiatives proposed in the PLR take into consideration the current country environment, such as appetite for further reform; enhanced engagement in eastern DRC to build upon the tenuous peace and stability while remaining flexible to adjust programs if the situation changes; scaling up initiatives that have worked well; and expanding outreach to rural areas, where poverty is more entrenched (Table 1).
The proposed program will engage more closely with emerging priorities and policies. In particular, it will (a) support decentralization and provincial governance through analytical work and public sector strengthening programs and by drawing lessons from capacity impediments programs have faced; (b) propose a more intensive focus on the key development areas of both commercial and smallholder agriculture and energy generation and access; and, given IFC’s increased engagement, (c) expand support to the investment climate and SMEs. The proposed program takes into consideration the current political economy of DRC and will be prepared to adapt to emerging situations, recognizing that 2016 will be an election year, military operations against armed groups will continue, and local drivers of conflict are not likely to abate. WBG activities will therefore be positioned to adapt to emerging situations based on risk assessments carried out as part of PLR preparation (see Annex 6). Given the likelihood that some reforms will stall, certain projects are being restructured, and whenever possible, implementation will be fast-tracked wherever there is traction. The Bank will revisit some programs based on the renewed commitment of the Government to decentralize by increasing the number of provinces from 11 to 26. New or revised capacity assessments will be necessary in the new provinces, along with plans for support. This will be an opportunity for WBG to encourage participatory approaches and citizen engagement, given the positive results achieved with these approaches. The WBG will scale up its efforts in eastern DRC, leveraging regional initiatives. Opening up the region by easing transport difficulties and increasing access to sources of livelihood will help the peace dividend to take root, by taking advantage of regional linkages and economies of scale. As part of GLI, for greater impact the WBG will leverage national and regional resources in projects. The WBG will, in consultation with the Government, address capacity issues and incentives and will revisit the approach of unilaterally implementing programs through government institutions. One WBG model will be reinforced in the coming years, with IFC re-engaged in DRC and MIGA ramping up its support. With DRC classified as a Tier 1 country, the IDA/IFC
19 The regional level of financing depends on final project design in terms of how much regional IDA can be leveraged. 15
collaboration will be further enhanced, through joint work on SCD and CPF which will enable the development of a more systematic and integrated WBG program in DRC, e.g., JIP in agribusiness. The WBG will strengthen mitigation measures to address fiduciary risk in the portfolio. Risk based fiduciary supervision missions and in-depth reviews conducted so far allowed to identify ineligible expenditures and numerous complaints on procurement of Works, goods and consulting services. The fiduciary team is developing mitigations measures to address financial management and procurement risks, including: (i) issuing a guidance note on controls for training, travel and local shopping to inform project design and implementation, (ii) engaging with authorities to identify the best internal audit body to anchor the audit of risky projects; (iii) adjusting ToRs of external audit to focus on specific integrity risks that have materialized in the past, and also include additional audit procedures in relation to physical realizations and the value for money of projects; (iv) undertaking a systematic Integrity due diligence in order to detect some of the most common signs of fraud and collusion , (v) developing integrity action plan including special red flag training for relevant staff, and signing of Conflict of Interest disclosures for members of the tender committee; and (vi) more fiduciary hands-on support especially in contract management and internal control systems. The fiduciary team will also collaborate with other GPs in terms of third party monitoring, social accountability and citizen engagement to help address fiduciary issues. WBG will focus on demography. Even with falling poverty rate in DRC, more people are living in poverty than before, primarily due to rapid population increase fueled by one of the highest fertility rate in Africa: DRC’s fertility rate rose from 6.3 in 2010 to 6.6 in 2014 (DHS). This will continue to put stress on the country’s development efforts. WBG proposes to undertake a demography analysis, alongside the Health project which includes family planning intervention. The WBG will continue to design gender-informed projects by drawing on results from research on what works to empower women and close the gender gap, including results that are expected to be generated over the coming months by the impact evaluations.
46. Twin goals and line of sight: The PLR has made a special effort to articulate the results chains for each of the strategic objectives in terms of the WBG twin goals and the lines of sight. Aligning the WBG program to the twin goals underscores the need for the DRC to maintain its growth momentum—but also better translating high growth rates into accelerated poverty reduction. That will imply more inclusive growth, particularly for the bottom 40 percent of the population; greater sharing of mineral-based incomes; poverty-reducing job creation; attention to increasing the access, efficiency, and equity of social services delivery; proactively attempting to mitigate conflict; and ensuring sustainability. This strategy continues to be based on a growth model that requires an effective state that fosters a climate for private sector-led growth and enhanced governance. The WBG will also support the availability, reliability, and timeliness of poverty and socioeconomic statistics and will integrate statistics and perception studies by partners who work on conflict analysis in the eastern provinces and on the regional indicators project. The intent is to improve the quality of analysis and understanding of the dynamics of poverty, social cohesion, and conflict in DRC in order to inform pro-poor policies.
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47. Adjustments to CAS Strategic Objective One: Increase state effectiveness and improve governance. The WB will further support the Government’s decentralization policy by expanding existing programs through AFs, Public Sector Reform and Rejuvenation and PFMA projects, informed by programmatic subnational economic analysis and by provincial PEFA. To further increase state effectiveness, it will launch TA as well as ASAs. The PLR also proposes to continue ASAs on the use of country systems to support governance improvement. The work on demand-side citizen engagement will be intensified and further mainstreamed; numerous GP teams have started to meet regularly and coordinate this work across the various WBG initiatives, including water, health, education and governance sectors. The Bank will continue to reinforce its climate change agenda through environment and climate change initiatives and targeted TF resources. The new trust-funded Forest Dependent Communities project will complement the REDD initiatives and by dealing directly with indigenous people and local communities will also support citizen engagement.
48. Adjustments to CAS Strategic Objective Two: Boost competitiveness to accelerate private sector-led growth and job creation. Given the continuing connectivity problems, the PLR proposes AF for a national and regional roads corridor project to address a financing gap and incorporate a regional connection with Uganda through the Gulu-Kisangani road. Based on lessons learned, it will strengthen the performance of the National Roads Fund (FONER). The PLR also proposes phase 2 AF for the Great Lakes Trade Facilitation project to improve trade between DRC, Tanzania, Zambia, and Burundi near the borders, and also reduce corruption. Both these initiatives also contribute to objective 4. The WBG is increasing its engagement in energy. Its proposed project to scale up electricity projects is important to diversify the economy and broaden opportunities. The Inga 3 BC Investment Project can be transformational at national and regional levels, with potential for 4,800 MW of installed capacity to provide renewable, affordable, and reliable power to national customers, mining, and Southern African Power Pool. IFC and MIGA will support this initiative. Given the rapid urbanization in DRC and lack of supportive services, the PLR proposes to continue building on the successful water and urban projects with the urban AF project also covering selected cities in the east (thus contributing to objective 4), integrating citizens’ engagement in its design. The cement plants financed by IFC will also greatly contribute to addressing the challenges of urbanization, notably housing needs. Intervention in agriculture is central to the goal of poverty reduction, since the majority of the poor reside in rural areas. The Government has been pushing this agenda aggressively for several years. The Bank is responding through (a) AF for agriculture project focusing on support to commercial agriculture and smallholders to expand coverage; (b) an integrated agricultural program with national and regional components to develop agricultural value chains and landscape management in eastern DRC (again contributing to objective 4); and (c) preparation of an agriculture JIP. IFC invested in a flagship agribusiness project in the former Province of Katanga and will continue its efforts to support a greater number of agribusiness projects across DRC.
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Table 3: Proposed WBG Support FY16–FY17, Lending and Non-lending* FY16 FY17 LENDING Project Pillar US$M Project Pillar US$M Natio Regio National Regio nal nal nal Statistics Development 1 45 Scaling Up Electricity Access 2 100 (approved) AF Urban Water Supply 3 150 AF Public Sector Reform and 1 40 Rejuvenation AF Human Development 3 30 AF Urban Development 2,4 100 Systems Strengthening Project Project (US$41 m w/US$11m TF) AF High Priority Roads 2,4 75 50 AF Agriculture Rehabilitation 2 50 Reopening and Maintenance and Recovery (national with GLI regional component) AF for Eastern Recovery 4 17 33 AF Health Project 3 100 (national with GLI regional displacement) Great Lakes Agricultural 2 100 50 AF PFMA 1 60 Program (GLI regional with national component) Great Lakes Trade Facilitation 2 11.3 22.7 Inga 3 BC development (tbc) 1, 2 TBC TBC Program– phase 1 Forest Dependent Communities 1 (6) Great Lakes SGBV- Phase 2 4 7 Support (FIP) FIP Socio-Econom. Empowerment 4 (3)TF Great Lakes Trade 2 8 70 – Eastern DRC (JSDF) Facilitation Program – Phase 2 GLI Ruzizi Power Project 2/4 25 AF Basic Education Program 3 (100) GPE Total (IDA) 428.3 155.7 Total* 490.0 70.0 II. NON-LENDING Activities Pillar Activities Pillars s Subnational Economic Governance 1,4 IFC Entrepreneurship/SME “Business Edge” 2 Programmatic Subnational Economic Analysis 1 Jobs 2 Economic Updates (annual) 1 Doing Business Reforms Coordination 2 Support to Governance in Procurement – Use of 1 IFC/WB Investment Climate Strategy 2 Country Systems Domestic Revenue GAP Assessment 1 Urbanization Review 2 PEMFAR Dissemination & Macro-Model 1 Promoting Investments in Agriculture 2 Poverty Assessment 1,3 Spatial Development TA 2 Eastern DRC Mineral Recovery TA 1 Scaling Up Electricity Access TA 2 Provincial PEFA TA – MDTF 1 Demographic Study 3 Review of the Forest Sector of DRC TA 1 National Social Protection Strategy 3 Congo Basin Timber 1 Public Sector Strengthening in Decentralized Environment 4 TA Domestic Revenue Mobilization (DRM) 1 Strengthening WBG Engagement in DRC 4 Assessment (FY16-FY17) MDTF Public Investment Efficiency TA MDTF (FY16- 1 Poverty Diagnostic for WASH EW ( FY17) 1,3 FY17) IFC Credit Lines 2 Support to the Land Sector Review 4 Notes: AF: Additional Financing; * Without Inga 3 development IFC and MIGA’s activities support Pillar 2
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Additional initiatives will be launched to enhance the business environment. IFC will help achieve this objective and expand the investment portfolio and advisory activities. IFC and Trade and Competitiveness Global Practice will continue to collaborate to support investment climate reforms, at provincial and national level. In particular, IFC will continue to support Doing Business reforms. Some IFC pipeline transactions are US$10 million for the African Rivers Fund (SME Ventures/Kingkuba Capital); US$22 million of equity in CILU Cement (Cimenterie de Lukala); US$45.5 million to support expansion of the Kipoi copper mining project of Tiger Resources in the former Province of Katanga; and €5 million to finance development of a greenfield 158-room hotel. MIGA’s support will also continue through its transfer restriction, expropriation, breach of contract, and war and civil disturbance political risk insurance lines.
49. Adjustments to CAS Strategic Objective Three: Improve social services delivery and increase human development indicators. Recognizing the demographic pressure and the importance of service delivery, especially given the challenge of meeting the MDGs and supporting the Sustainable Development Goals, the PLR proposes building on work already begun through: AAF for health, focusing on lower-performing indicators, especially FP and malnutrition; an in-depth study on demography; a Global Partnership for Education grant as AF to improve the quality of primary education and strengthen sector management; and AF to the Human Development Systems project to reinforce specified management systems for education and health services in targeted geographical areas. These projects will be utilizing aspects of RBF approach as well as citizen engagement.
50. Adjustments to CAS Strategic Objective Four: Address fragility and conflict in the eastern provinces. In addition to the cross-cutting initiatives already discussed as contributing to this objective, the PLR proposes to prepare (a) a second-phase SGBV project, to further reduce violence and foster peace under GLI and primarily targeting women; and (b) AF to the Eastern Recovery Project for communities affected by forced displacement, with strong demand-driven approach which has been successful in fragile environment. The AF for a national and regional roads corridor project under Strategic Objective two will also contribute to this pillar by opening up Eastern DRC to Uganda.
VI. RISKS TO THE CAS PROGRAM20
51. The country risk to the WBG program is substantial. With upcoming elections, the impact of the global economy on the DRC’s economy, the continuing security concerns in the eastern provinces, and the decentralization policy all on the horizon in 2016, the potential for negative impacts on WBG programs and operations is foreseeable, even if their dimensions are not yet known. However, WBG teams have been navigating this environment for years and can be expected to react with mitigation measures as each situation requires.
20 For a more in-depth overview of some critical risk issues related to conflict and fragility, particularly in the Eastern provinces of the DRC, and their potential impact on WBG programs, see Annex 6. 19
52. Both political and governance risks are high. The elections could cause tensions, such as the violent incidents of January 2015 when the new electoral law was adopted. In addition, poor governance and corruption persist in such critical areas as mining and public sector management in general. Some reforms have stalled, and with the onset of the elections diverting political energy, not much progress is expected. WBG will continue to assess the challenges and adjust the program accordingly. For instance, if the security situation worsens in certain areas, WBG may decide to scale back on certain activities in those areas and speed up activities in others. Designing programs that directly involve beneficiaries in conduct of the programs (e.g., Community-driven Development approaches), as is currently being done in the Eastern Recovery Project, is expected to enhance the success of initiatives even in uncertain conditions. WBG will also tighten its fiduciary measures and also explore options of direct payments as needed. WBG will continue its dialogue on poverty reduction and the reform agenda with development partners and political actors to enhance longer-term broad-based commitment to poverty reduction and prudent macroeconomic management. WBG will also, whenever it finds an opening, accelerate its discussion of key reforms and decisions as they relate to its support and adjust its program as needed. For all WBG-supported projects, strengthening fiduciary management and implementation will continue to be critical.
Table 4: Systematic Operations Risk-Rating Tool Risk Categories Rating (H, S, M, L) 1 Political and governance H Macroeconomic S Sector strategies and policies S Technical design of project or program M Institutional capacity for implementation and sustainability S Fiduciary S Environment and social S Stakeholders M Other (security) H Overall S 1 High, Substantial, Moderate, Low
53. Given the DRC’s dependence on natural resource revenue, the macroeconomic environment has become less favorable. A particular challenge is to increase and translate the revenues from natural resources into benefit the population. Because macro instability could impact the outcomes of its operations, WBG will closely monitor the macroeconomic situation with the IMF. Implementation of the Economic Governance Matrix, which also covers PFM and management of natural resources, including mining, will be sustained to consolidate progress already achieved. The design of the WBG portfolio and the current project pipeline takes into account risk mitigation. The recent social sector PER also makes specific recommendations related to this issue.
54. Decentralization will intensify the DRC’s capacity challenges. This has been one of the major program issues that are especially evident as WBG programs become mainstreamed within the country. The challenge is amplified in regional projects, which require more complex arrangements. WBG has been conducting targeted training, especially in the fiduciary area, to
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build the capacity of project staff in the areas of financial management, procurement, and internal audit. The Bank is also discussing incentives and reassessing the effectiveness of current arrangements.
55. Security risks for the DRC are high, particularly in the eastern provinces. WBG will undertake risk and conflict assessments for programs operating in those areas and coordinate closely with other partners; in particular, the GLI and DDR processes will be pursued. Projects designed to build community cohesion, such as the Eastern Recovery and Reinsertion and Reintegration programs, are showing some results, and along with the risk assessment work, will be utilized in areas that are especially vulnerable to these challenges.
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VII. ANNEXES
Annex 1: DRC: Updated CAS Results Matrix 21 22 CAS OUTCOMES AND MILESTONES WBG PROGRAM INDICATORS CAS Strategic Objective One: Increase state effectiveness and improve good governance PRSP goal 1: Strengthening governance and consolidating peace Country Development Goals: Improve public financial management at national and provincial level; Pursue the decentralization process Issues and Obstacles: Weak public financial management system at national and provincial levels Inadequate capacity at national and provincial levels resulting in budget overruns Poor human resource management in the public service Lack of transparency in public procurement CAS Outcome 1.1. 1.1.a Integrated Budget Execution Reports are published on the PROJECTS Increased transparency Ministry of Budget and Ministry of Finance websites on a Ongoing: and efficiency in the regular basis, at central and provincial levels Enhancing Governance Capacity management of public (P104041, FY08) finances at the central 1.1.b Budget reports are made available on a comprehensive Capacity for Core Public level and in the provinces manner to the population by 2014 Management (P117382, FY11) of Bandundu, Katanga, Public Sector Reform and Kasai Occidental, Kasai 1.1.c Procurement Dispute Committee and procurement units at Rejuvenation (P122229, FY14) Oriental, South Kivu, provincial level are in place and operational by end-2014 PFMAP (PROFIT Congo) - North Kivu, Kinshasa, Strengthening PFM and Equateur. Accountability (P145747, FY14)
21 Fiscal Years (FY) for projects and Trust Funds refer to FY of actual or expected approval (unless otherwise noted). FYs for ASA refer to FY of actual or expected delivery. Ongoing ASAs include activities with Concept Review approved by Management while Pipeline ASA include activities which have not yet reached Concept Review approval stage. 22 With the provinces increasing from 11 to 26, progress will still be measured using former provincial boundaries, and will cross-reference the new provinces as needed 22
CAS OUTCOMES AND MILESTONES WBG PROGRAM INDICATORS 1.1.1 Percentage of national 1.1.d Increased number of disputes resolved by the Procurement Statistics Development (P150148, revenue transferred to Dispute Committee in the 4 targeted provinces and 6 targeted FY16) targeted provinces ministries per year Pipeline: Baseline: 31.5% (end-2011) AF Public Sector Reform and FY17 Target: 35% 1.1.e Procurement plans and reports at national and provincial Rejuvenation (FY17) level (in the 4 targeted provinces) are published on regular basis AF PFMA (FY17) 1.1.2 Reduced discrepancy between projected and TRUST FUNDS actual expenditures in the 4 MDTF - PFMAP (PROFIT Congo) targeted provinces Public Financial Management and (Bandundu, Katanga Kasai Accountability Project (P145747) Occidental and South-Kivu) IDF New Procurement Law Baseline: 51% (end-2011) Capacity Building TA (P130499) FY17 Target: 30% SRTF Catalytic Project to Strengthen the INS (P125509) 1.1.3 Percentage of public TA and capacity building for budget contracts awarded through preparation in DRC provinces open competitive bidding in selected ministries and ASA provinces. Delivered: Baseline: 0 (2012) PEFA Assessment EW (P131609, FY17 Target: 75% of large FY14) contracts Economic Update EW (P133727,
FY14) Kinshasa Annual Forum TA (P145874, FY14) Coordinated PFM Reform Assistance TA (P113619, FY14) Debt Management Reform Plan TA (P130862, FY14) Use of Country System TA (P144456, FY15)
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CAS OUTCOMES AND MILESTONES WBG PROGRAM INDICATORS National Risk Assessment ML&TF TA (P146211, FY14) PEMFAR (P147410, FY15) Ongoing: Programmatic Subnational Economic Analysis (P151614, FY16) Provincial Budget Planning (P123040, FY15) Public Expenditure Management (P127546, FY14) Procurement Use of Country System (P148347, FY15) Economic Update PA (P151615, FY16) Economic Update EW (P156429, FY16) PEMFAR - Dissemination & Macro Model EW (P156672, FY16) Pipeline: Subnational Economic Governance (FY16-FY17) Support to Governance in Procurement – Use of Country Systems (FY16) Economic Update EW (FY17) Domestic Revenue GAP Assessment (FY16-FY17) Domestic Revenue Mobilization (DRM) Assessment (FY16-FY17) Provincial PEFA TA – MDTF (FY16)
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CAS OUTCOMES AND MILESTONES WBG PROGRAM INDICATORS Public Investment Efficiency TA – MDTF (FY16-FY17)
OTHER PARTNERS IMF, DfID, AfDB, UNDP, European Commission (EC), Belgium/CTB, and USAID Country Development Goals: Improve transparency and governance in the management of natural resources; Improve traceability of Government revenues issued from natural resources; Increase its contribution to domestic economy and local communities’ welfare Issues and Obstacles: Poor management of forest, oil and mining resources due to weak legal framework, lack of enforcement mechanisms, and weak institutional capacity generally CAS Outcome 1.2. 1.2.a Regular update of the list of holders of forestry rights that PROJECTS Increased transparency are current in the payment of taxes and inform the forestry Closed during CAS Period: and effectiveness in the administration on other cases, with a view to adoption of Forestry and Nature Conservation management of financial enforcement measures (P100620, FY09) resources from the forest, Rehabilitation and Participatory oil and mining industries 1.2.b A National REDD+ Strategy (including the legal Management of Key Protected framework) is prepared and validated by national stakeholders Areas (P111621, FY09) 1.2.1 Area of forest by 2014 (Achieved) Ongoing: concessions with signed GEF Financing for PREPAN social responsibility 1.2.c EITI Validation status is completed (by end-2013) (P127437, FY09) contracts National Parks Rehabilitation Baseline: 2M Ha (end-2011) 1.2.d Revenue collected are published on quarterly basis (P083813, FY14) FY17 Target: 10.7M ha Growth with Governance in the (target achieved in FY15) 1.2.e Petroleum code adopted by 2014, and effectively Mineral Sector (P106982, FY11) implemented by 2014 Pipeline: 1.2.2 Percentage increase in Forest Dependent Communities revenue from mining sector Support (P149049 - FIP) (FY16) in total fiscal revenue Baseline: 2% of GDP (end- TRUST FUNDS 2011) FY17 Target: 27% 25
CAS OUTCOMES AND MILESTONES WBG PROGRAM INDICATORS EITI TF Phase II: EITI 1.2.3 Percentage of oil Implementation (P113977) petroleum permits CSCF/FIP Improved Forested competitively auctioned Landscape Management (P128887) Baseline: 0% REDD Implementation in DRC FY17 Target: 100% (P148219) FCPF Readiness Grant
ASA/OTHER Delivered Oil & Gas Advisory TA (P127283, FY15) DRC Forest Governance Assessment TA (P154671, FY15) Ongoing: Eastern DRC Mineral Recovery TA (P148763, FY17) Review of the Forest Sector of the DRC TA (P152956, FY16) Congo Basin Timber (P153586, FY16)
OTHER PARTNERS IMF, EC, DfID, GTZ, CTB, USAID Country Development Goals: Improve transparency and performance management of key State-Owned Enterprises (SOEs) Issues and Obstacles: Weak enforcement capacity Lack of transparency in the management of SOEs Influence from vested interest Ineffective government oversight of strategic SOEs CAS Outcome 1.3. 1.3.a Restructuring of pre-2011 debts of strategic SOEs is PROJECTS Enhanced governance and completed by mid-2014 Closed during CAS Period:
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CAS OUTCOMES AND MILESTONES WBG PROGRAM INDICATORS increasing the operational Private Sector Development and performance of SOEs 1.3.b Business Plans for achievement of positive cash flows (by Competitiveness (P071144, FY04) 2016) by strategic SOEs is adopted by respective Governance Ongoing: 1.3.1 Increased efficiency of Boards by mid-2014 Urban Water Supply (P091092, SOEs that deliver key public FY09) services (SNCC, SNEL, 1.3.c Certified financial audits of strategic SOEs are published Multimodal Transport (P092537, SCTP, RVA, RVF, annually FY10) REGIDESO) through AF Southern Africa Power Market Public-Private Partnership (P069258, FY12 ) (PPP) or management AF Multimodal Transport performance contracts (P129594, FY13) Baseline: 3 (2013) Pipeline: FY17 Target: 6 (Service AF Urban Water Supply (FY16) contract concluded for REGIDESO) ASA Ongoing: Urbanization Review EW (P156796, FY17)
OTHER PARTNERS DfID, AfDB, AFD, CTG, EC CAS Strategic Objective Two: To boost competitiveness to accelerate private sector-led growth and job creation PRSP goal 2 : Diversifying the economy to accelerate growth and create employment PRSP goal 4 : Protecting the environment and sustaining the fight against climate change Country Development Goals: Pursue structural economic reforms to promote private sector development Issues and Obstacles: Years of conflict have undermined the capacity of private enterprises to thrive and therefore are not contributing to the growth of the economy Lack of access to finance Public enterprises are a major bottleneck to private sector development in DRC CAS Outcome 2.1 2.1.a One-Stop shop (Guichet unique) is implemented and PROJECTS Enhanced business operational by end-2014 Closed during CAS Period:
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CAS OUTCOMES AND MILESTONES WBG PROGRAM INDICATORS environment for private Private Sector Development and sector development 2.1.b An action plan to improve key business indicators Competitiveness (P071144, FY04) prepared by end-2013 Ongoing: 2.1.1 Time to register a Western Growth Poles (P124720, business is decreased by 2.1.c An agreement to focus the WBG support on selected key FY13) half business indicators approved by end-2015 Financial Infrastructure and Baseline: 58 days (2012) Markets (P145554, FY14) FY17 Target: 10 2.1.d The Real Time Gross Settlement (RTGS) system and the Pipeline: Automated Clearing House (ACH) are implemented and Great Lakes Trade Facilitation 2.1.2 Number of days to operational by mid-2016 Program – Phase 1 (P151083, obtain a construction FY16) permit: 2.1.e Annual plan for advisory services provided to SMEs by Great Lakes Trade Facilitation Baseline: 119 days (2015) IFC are adopted Program – Phase 2 (FY17) FY17 Target: 94 days (Source: Doing Business TRUST FUNDS Report) Regional Integration/ Legal Harmonization (FIRST TF) 2.1.3 Number of days to (TF012786, FY13-15) import and export: Entrepreneurship as Pathway Out of Baseline: Poverty – TF (P153240) Import : 63 days (2015)
Export : 44 days (2015) ASA FY17 Target: Delivered: Import : 57 days FSAP EW (P144434, FY14) Export : 40 days
(Source: Doing Business AML/CFT Assessment of the DRC (P147917, FY15) Report) Strengthening Payment System 2.1.4 A fully functioning, (P132451, FY15) modern payment system Ongoing: providing electronic (cash- Investment Climate Strategy EW less) funds transfer with (P143263, FY16) real-time clearing and
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CAS OUTCOMES AND MILESTONES WBG PROGRAM INDICATORS settlement of accounts, and Spatial Development TA (P145907, interconnectivity with other FY16) payments systems in the Payments System: Financial region in place by 2015 Infrastructure and Markets Project Baseline: System not in (P145554, FY14) place Doing Business Reforms FY17 Target: Payment Coordination (FY16-17) (P156593 system in place Pipeline: Jobs (FY16-17) 2.1.5 IFC fund providing risk capital and advisory to IFC SMEs; and providing SME Entrepreneurship/SME capacity and micro finance to local building “Business Edge” (ongoing) banks and MFIs, with the SME credit lines (ongoing) objective of increased DRC Investment Climate (Project access to credit for SMEs. ID 600085) Baseline: 0 (2012)
FY17 Target: 10 SMEs OTHER PARTNERS DfID, KfW, UNDP/UNCDF, EC, AfDB, CTB, GTZ Country Development Goals: Improve infrastructure capacity covering the road sector, railways, telecoms and electricity Issues and Obstacles: Poor quality of infrastructure High cost of movement of goods, people and services Lack of technical capacity Weak M&E system CAS Outcome 2.2. 2.2.a Cumulative number of Km reopened in project areas PROJECTS Improved connectivity and (Province Orientale, Katanga and Equateur) Closed during CAS Period: access to transport Baseline: 300 km (12/2011) Emergency Urban and Social infrastructure FY17 Target: 2,660 km (including the new road sections from Rehabilitation (P104497, FY07) the Additional Financing 2) Ongoing:
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CAS OUTCOMES AND MILESTONES WBG PROGRAM INDICATORS 2.2.1 Average transit time 2.2.b Cumulative number of Km maintained in project areas High Priority Reopening & between copper belt and (Province Orientale, Katanga, Equateur and South Kivu) Maintenance – Pro-Routes Zambian border Baseline: 0 km (12/2011) (P101745, FY08) Baseline: 17 days (2011) FY17 Target: 3,400 km (including the new road sections from Agriculture Rehabilitation and FY17 Target: 5 days the Additional Financing 2) Recovery SIL (P092724, FY10) Multimodal Transport (P092537, 2.2.2 Number of days/year FY10) with roads not passable by Western Growth Poles (P124720, 4×2 in project areas FY13) (Province Orientale, Urban Development (P129713, Katanga, Equateur and FY13) South Kivu) Goma Airport (P153085, FY15) Baseline: total of 90 days Pipeline: (2011) AF High Priority Roads Reopening FY17 Target: 100 days and Maintenance (national with GLI (including the AF2 new regional component) (FY16) road sections) AF Urban Development Project
(FY17) AF Agriculture Rehabilitation and Recovery (FY17) Great Lakes Trade Facilitation Program – Phase 1 (P151083, FY16) Great Lakes Trade Facilitation Program – Phase 2 (FY17)
ASA Delivered: River and Urban Transport Review EW (P144128, FY15) Ongoing:
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CAS OUTCOMES AND MILESTONES WBG PROGRAM INDICATORS Spatial Development TA (P145907, FY16) Urbanization Review EW (P156796, FY17)
OTHER PARTNERS DfID, AfDB, AFD, CTB, EC, KfW, EIB, JICA Country Development Goals: Build a modern national infrastructure for telecoms; Improve the access rate to telecoms and new technologies; Strengthen the liberalization and competitiveness of the sector to attract private investments Issues and Obstacles: Lack of national fiber-optic network - broadband infrastructure Costly broadband internet and phone access Legal and regulatory framework to be revised , renovated and updated Over dependence on satellite technology CAS Outcome 2.3. 2.3.a New legal and regulatory telecoms framework adopted by PROJECTS Improved access to quality 2015 Ongoing: broadband network and Telecom Component of the services at reduced cost 2.3.b Establishment of the board of the Societé de Patromoine Regional Southern Africa Power Nationale (SPN) which will play the role of Steering Committee Market APL1 (P105644, FY04) 2.3.1 Increased total to provide overall coordination and supervision for the CAB5 Regional CAB APL5 DRC broadband penetration Project including fiduciary and governance oversight (P132821, FY15) (household population) Baseline: 0.1% (12/2011) 2.3.c Recruitment of international operators to commercialize ASA FY17 Target: 2.5% the excess capacity of the SNEL network by 2015 Delivered: ICT Regulatory Advisory Services 2.3.2 Increased international TA (P132812, FY14) Internet Bandwidth (Bitps per capita) Baseline: <14 (12/2011) FY17 Target: 50
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CAS OUTCOMES AND MILESTONES WBG PROGRAM INDICATORS Country Development Goals: Increase the production and transmission capacity of electrical energy; Develop infrastructure for the supply of energy to improve households’ access to electricity; Develop renewable energy sources Issues and Obstacles: Widespread supply shortfalls Inadequate transmission of networks High cost of power Weak institutional capacity CAS Outcome 2.4. 2.4.a SNEL performance contract is signed and implemented PROJECTS Increased generation of Ongoing: electricity and improved 2.4.b Annual report of the performance contracts is prepared Inga3 and Mid-size Hydropower access to energy Development (P131027, FY14) 2.4.c Annual technical audit of the performance contract of Regional Southern Africa Power 2.4.1 Quantity of energy SNEL is published Market APL1 (P097201, FY04) delivered to Katanga Region Regional & Domestic Power Baseline: 2,540 GWh (end- Market Development (P069258, 2011) FY07) FY17 Target: 5,515 Gwh Pipeline: Rural Electrification (FY17) 2.4.2 Quantity of renewable GLI Ruzizi Power Project (FY17) energy generated at Inga Inga 3 BC Development (FY17) (GWh) Scaling Up Electricity Access Baseline: 4,809 GWh (end- (FY17) 2010) FY17 Target: 9,039 GWh ASA
Ongoing: 2.4.3 Increased access to Scaling Up Electricity Access TA electricity services in (P157240, FY17) targeted areas including
Kinshasa (number of OTHER PARTNERS additional households AfDB, EIB, KfW, USAID, NORAD, connected since 2007) AFD, CTB Baseline: 0 (2007)
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CAS OUTCOMES AND MILESTONES WBG PROGRAM INDICATORS FY17 Target: 35,000 households Country Development Goals: Increase agriculture productivity and marketing of crops Issues and Obstacles: Low agriculture productivity Farmers lack access to agriculture input Poor access to processing facilities for better value addition of agriculture produce Weak institution to manage agricultural and rural development Ongoing conflicts over land titles, and between agricultural and pastoral communities in the Eastern provinces CAS Outcome 2.5 Boost 2.5.a Improved agricultural and animal technologies provided to PROJECTS agriculture production farmers in targeted areas in the Equateur province Ongoing: and increase access to Baseline: 73,500 beneficiaries Agriculture Rehabilitation & markets FY17 Target: 400,000 Recovery SIL (P092724, FY10) Of which % of direct female beneficiaries Western Growth Poles (P124720, 2.5.1 Increased yields of Baseline: 10 percent FY13) primary crops in targeted FY17 Target: 60% Pipeline: areas in the Equateur Great Lakes Agricultural Program province 2.5.b Number of Km of rural roads rehabilitated in targeted (GLI regional with national Baseline and Target: food growing areas component) (P143307, FY16) Increase crop yields from Baseline: 0 (2012) 2012 to 2015: FY17 Target: 2,500 km ASA Maize (1.5t/ha from less Ongoing: than 1t/ha); Promoting Investments in Cassava (12t/ha from 7t/ha); Agriculture EW (P156592, FY16) Rice (2.0t/ha from 1t/ha) FY17 Target: OTHER PARTNERS Maize: 2t/ha DfID, FAO, AfDB, CTB, KOICA, Cassava: 15t/ha IFAD, UNOPS, ISSSS stabilization Rice: 2t/ha strategy (local conflict prevention platforms) CAS Strategic Objective Three: Improve social services delivery and increase human development indicators PRSP goal 3: Improving access to basic social services while raising human capital
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CAS OUTCOMES AND MILESTONES WBG PROGRAM INDICATORS Country Development Goals: Increased access to potable water Issues and Obstacles: Lack of institutional capacity to deliver clean water throughout the country In the conflict areas, the approach is bottom-up and participatory; thus, increase in access depends on requests received from intended beneficiaries CAS Outcome 3.1. 3.1.a Km of secondary and tertiary water distribution network PROJECTS Increased access to clean constructed. Closed during CAS Period: water and sanitation Baseline: 0 Emergency Social Action FY17 Target: 751 km (P086874, FY05) 3.1.1 Percentage of Emergency Urban and Social population in the targeted 3.1.b Additional number of households with new piped water Rehabilitation (P104497, FY07) areas with access to potable connections or easier access to potable water Ongoing: water Baseline: 0 Urban Water Supply (P091092, Baseline: 43% (end-2011) FY17 Target: 50,000 FY09) FY17 Target: 55% Eastern Recovery (P145196, FY14) Pipeline: 3.1.2 Number of people AF Urban Water Supply (FY16) provided with access to AF Eastern Recovery Project improved water sources in including GLI Regional project areas Displacement Project (FY16) Baseline: 5, 292,000 (03/2010) TRUST FUNDS: FY17 Target: 6,494,000 JSDF -Socio-Economic Empowerment – Eastern DRC (P149689, FY16)
OTHER PARTNERS DfID, CTB, WHO, MSF, UNICEF, UNDP, USAID Country Development Goals: Improve delivery of primary health care Issues and Obstacles: Financial barriers to access health services, especially for the poor
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CAS OUTCOMES AND MILESTONES WBG PROGRAM INDICATORS Poor quality of health service Low government investment in the health sector Weak supply chain for essential medicines Inadequate staffing (surplus in some areas, low levels in others) CAS Outcome 3.2. 3.2.a Cold chain equipment available in 80% of health centers PROJECTS Improved access to health by end of 2014. Closed during CAS Period: services in targeted areas Emergency Urban and Social 3.2.b 80% of delivery rooms in health facilities have received Rehabilitation (P104497, FY07] 3.2.1 Rate of DPT3 standard medical equipment for obstetric care by 2014 Health Sector Rehabilitation and immunization (Achieved) Support (P088751,FY06) Baseline: 85% (end-2011) Ongoing: FY17 Target: 90% 3.2.c 13,000 health personnel received training (Achieved) Human Development Systems Strengthening (P145965, FY14) 3.2.2 Percentage of 3.2.d 90% of pregnant women receive antenatal health care Great Lakes Emergency Sexual and deliveries assisted by Gender- Based Violence and qualified personnel 3.2.e Coverage of 80% population with long lasting insecticide Women’s Health (P147849, FY14) Baseline: 80% (end-2011) bed nets per household completed by the end of 2013. Health System Strengthening FY17 Target: 85% (Achieved) (P147555, FY15) Pipeline: 3.2.3 Number of women 15- AF Human Development Systems 49 new users of family Strengthening ( (FY16) (including planning TF) Baseline: 6% (end-2011) Great Lakes SGBV - Phase 2 FY17 Target: 6% (FY17)
AF Health Project (FY17) 3.2.4 Percentage of children under 5 sleeping under TRUST FUNDS LLINs (mosquito nets) in targeted areas Capacity Building in Budget Baseline: 35% (end-2011) Preparation for the Health Sector Project (P126890) FY17 Target: 70%
ASA
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CAS OUTCOMES AND MILESTONES WBG PROGRAM INDICATORS 3.2.5 Percentage of reported Delivered: cases of SGVB who receive Health Systems and Financing EW PEP kits within 72 hours (P116349, FY14) Baseline: 25% (2014) Social Sector Public Expenditure FY17 Target: 50% Review (P147553, FY16) Ongoing: Impact Evaluation of Performance- Based Financing (P150979, FY18)
OTHER PARTNERS EC, GFATM, GAVI, KOICA, USAID, DfID, CIDA, Belgium, JICA, GTZ, Bill and Melinda Gates Foundation, UNICEF, WHO, UNFPA, UNAIDS Country Development Goals: Increase access and equity to the various levels of education, and particularly in basic education, especially for girls Issues and Obstacles: Financial barriers to access of education services for the poor Lack of sustainable financing mechanism for the delivery of education services Low quality of education leading to poor learning outcomes Poor preparation of children to enter schooling (low coverage of early childhood education programs, high child malnutrition rates) CAS Outcome 3.3. 3.3.a 29.7 million textbooks distributed by 2015 PROJECTS Improved access to basic Closed during CAS Period: education 3.3.b 389,800 teachers budgeted by 2015 Education Sector (P086294, FY07) Ongoing: 3.3.1 Increased primary 3.3.c 2,367 classrooms constructed and rehabilitated by 2015 Human Development Systems gross enrollment ratio Strengthening (P145965, FY14) Baseline: 92.7 % (end-2011) Eastern Recovery (P145196, FY14) FY17 Target: 132.3% (as Post-Basic Education (P149233, projected in the Sector FY15) Program) Pipeline: Share of female
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CAS OUTCOMES AND MILESTONES WBG PROGRAM INDICATORS Baseline: 46% (end-2011) AF Eastern Recovery Project Target: 1:1 (2016-2017) including GLI Regional Displacement Project (FY16) 3.3.2 Increased completion AF Human Development Systems rate in primary Strengthening ( (FY16) (including Baseline: 59% (end 2011) TF) Target: 97.8% (2016-2017) AF Basic Education Program (GPE as projected in Sector Financed, FY17) Strategy Share of female ASA Baseline: 44% (end-2011) Delivered: Target: 48% (2014-2015) Operationalizing Higher Education [Target adjusted to take into TA (P128640, FY14) account the revised Mainstreaming Gender TA baseline] (P109868, FY16) FY17 Target: 48% Skills Development Study EW (P123857, FY15)
OTHER PARTNERS ICR, CRS, EC, CTB, UNICEF, UNDP, USAID, AfDB, AfD, UNESCO, DfID Country Development Goals: Enhance safety nets through improved access to basic social services Issues and Obstacles: Fragmentation and low-coverage of systems to deliver social safety net services Very low government investment in social safety nets (less than 1percent of national budget) as well as low technical capacity for planning and delivering services Weak inter-sectoral coordination for safety net programs. With UNICEF and WB assistance, a database for vulnerable children is now in place and available to the government and civil society, though it is fully operational only in Kinshasa Very weak targeting mechanisms for public social safety net services, and no consistency CAS Outcome 3.4. 3.4.a Updated Social Protection Strategy PROJECTS Strengthened social Closed during CAS Period: protection system
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CAS OUTCOMES AND MILESTONES WBG PROGRAM INDICATORS 3.4.b Action plan for improving efficiency of safety nets Emergency Social Action 3.4.1 Comprehensive programs (P086874, FY05, FY13) database of safety net Street Children (P115318, FY10) beneficiaries established and 3.4.c Stakeholders trained in data collection and use of Ongoing: regularly maintained database. Eastern Recovery (P145196, FY14) Baseline: Dataset only Human Development Systems contains information on 3.4.d Katanga pilot labor-intensive public works program is Strengthening (P145965, FY14) street children in Kinshasa replicated in at least three provinces Pipeline: (2012) AF Eastern Recovery Project Target: Dataset includes 3.4.e A national multi-sectoral coordination committee for the including GLI Regional beneficiaries of other safety protection of Orphan and Vulnerable Children (OVC) is Displacement Project (FY16) net programs, e.g., labor- established and operational AF Human Development Systems intensive public works, and Strengthening (FY16) (including is updated at least every six TF) months with input from provinces (2018) TRUST FUNDS FY17 Target: N/A Prevention and Mitigation of SGBV
(P150651, FY15) 3.4.2 Number of Support to Establishing a Social beneficiaries of labor Protection System (P150462, FY14) intensive public works National Social Protection Strategy (share of female) Baseline: 3,192 (30% (FY15-16) female; 2012) FY17 Target: N/A ASA Delivered: National Social Protection Strategy (P150433, FY15-16) Survey and Poverty Analysis TA (P147171, FY14) Ongoing: Support to Social Protection System TA (P150462, FY16)
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CAS OUTCOMES AND MILESTONES WBG PROGRAM INDICATORS Poverty Assessment (P149583, FY15-16) Poverty Diagnostic for WASH EW (P154368, FY17) Demographic Study
OTHER PARTNERS UNICEF, ILO, DfID, AfD, USAID, WFP CAS Strategic Objective Four: Addressing fragility and conflict in the Eastern provinces PRSP goal 1: Strengthening governance and consolidating peace Country Development Goals: Leveraging national policy dialogue to strengthen accountability and effectiveness of state institutions in support of peace consolidation Issues and Obstacles: National government pushback against international dialogue Weak state capacity or budget to provide public services Lack of accountability and clientelistic management of public finances Volatile political and security environment Different prioritization between the provincial and national levels CAS Outcome 4.1. 4.1.a Information and analysis produced by the Bank is utilized PROJECTS Improved management of in policy dialogue, and contributes to improved government Ongoing: public finances and policy decisions and actions in the Eastern provinces, and Enhancing Governance Capacity accountability in targeted influences government and donor programs and service delivery (P104041, FY08) conflict-affected areas at field level by 2015 Eastern Recovery (P145196, FY14) PFMAP (PROFIT Congo) Public 4.1.1 Increased budget 4.1.b Budget reports are made available in a comprehensive Financial Management and retrocession to Eastern manner to the population by 2014 Accountability (P145747, FY14) conflict-affected province of Pipeline: South-Kivu AF Eastern Recovery Project Baseline: currently including GLI Regional receiving 10-20% of its Displacement Project (FY16) revenues as retrocessions
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CAS OUTCOMES AND MILESTONES WBG PROGRAM INDICATORS FY17 Target: 35% Public Sector Strengthening in Decentralized Environment 4.1.2 Number of (PFM/PRCGAP) (FY17) communities benefitting from participatory budget TRUST FUNDS planning processes Socio-Economic Empowerment – Baseline: 4 districts in Eastern DRC (P149689) South-Kivu MDTF PFMAP (PROFIT Congo), FY17 Target: 8 districts Public Financial Management and (including 4 additional Accountability Project (P145747, districts in North Kivu) FY14) 4.1.3 Reduced discrepancy between projected and ASA actual expenditures in Ongoing: conflicted-affected province ICT for Accountability in Education of South-Kivu TA (P155840, FY16) Baseline: 51% (end-2011) Pipeline: FY17 Target: 30% Subnational Economic Governance (FY16-17)
OTHER PARTNERS Government's STAREC Program, United Nations (ISSSS Stabilization Strategy), EU Country Development Goals: Strengthening societal capabilities and resilience for peace consolidation, and sustainable development in the East Issues and Obstacles: Complex interplay between economic (lack of employment opportunities, access to land) and political (manipulation of grievances and ethnicity) drivers of conflict Limited access to services by the population including for holistic services for survivors of SGVB at the community level Need to combine economic activities with inter-community dialogue and stabilization measures
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CAS OUTCOMES AND MILESTONES WBG PROGRAM INDICATORS CAS Outcome 4.2.a Number of Km of roads rehabilitated in conflict-affected PROJECTS 4.2.Increased areas Ongoing: socioeconomic Baseline: 0 km (2013) Urban Development (P129713, opportunities in targeted FY17 Target: 3 km FY13) conflict-affected areas Eastern Recovery (P145196, FY14) 4.2.b Number of Km of drainage constructed in project areas in Great Lakes Emergency SGVB and 4.2.1 Increased number of conflict-affected city of Bukavu Women’s Health (P147489, FY14) person-days of employment Baseline: 0 km (2013) Support for Conflict-sensitive created in conflict-affected FY17 Target: 3 km Program Design and Risk areas Management (‘GLR Conflict Baseline: 0 4.2.c Client days of training for livelihood improvement Facility’, P148907, FY 14) FY17 Target: 400,000 provided in conflict-affected areas Prevention and Mitigation of Sexual Baseline: 0 and Gender-Based Violence in 4.2.2 Number of persons in FY17 Target: 20,000 North and South Kivu (P150651, conflict-affected areas with FY15) access to agricultural 4.2.d. Number of survivors of SGVB receiving psychosocial, Reinsertion and Reintegration extension services and economic, and/or legal services and referral to health services at (P152903, FY15) improved agricultural inputs the community level Goma Airport (P153085, FY15) Baseline: 0 Baseline: 0 (mid-2014) Great Lakes Trade Facilitation FY17 Target: 10,000 FY17 Target: 15,000 Program – Phase 1 (P151083,
FY16) 4.2.3 Percentage of reported 4.2.e Number of village savings and loans associations for Pipeline: cases of SGVB who receive vulnerable women supported AF Eastern Recovery Project at least 2 services as needed Baseline: 0 (mid-2014) including GLI Regional (economic support, psycho- FY17 Target: 45 Displacement Project (FY16) social, legal, medical) Baseline: 50% (mid-2014) 4.2.f Number of created or strengthened community structures Great Lakes Agricultural Program FY17 Target: 60% for conflict prevention, mediation and resolution. (GLI regional with national Baseline: 0 (start 2015) component) (P143307, FY16) 4.2.4. Percentage of people FY17 Target: 50 Great Lakes Trade Facilitation in conflict-affected Program – Phase 2 (FY17) communities who report an Great Lakes SGBV - Phase 2 increase in inter-community (FY17)
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CAS OUTCOMES AND MILESTONES WBG PROGRAM INDICATORS cohesion and decrease in livelihoods-related tensions. ASA Baseline: 0 (start 2015) Delivered: FY17 Target: 20% DDR III Project Paper TA (P150893, FY15) Forced Displacement in the Great Lakes Region (P149503, FY16) Ongoing: Support to the Land Sector Review (P152207, FY16) Strengthening WBG Engagement in DRC TA (P148720, FY16) Urbanization Review EW (P156796, FY17)
OTHER PARTNERS Government's STAREC, United Nations Agencies (ISSSS Stabilization Program), DfID, USAID, EU; International NGOs
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Annex 2: Changes to CAS Results Matrix 23
Original CPS Results Matrix Updated CPS Results Matrix Comments CAS Strategic Objective One: Increase state effectiveness and improve good governance CAS Outcome 1.1. Increased transparency and efficiency in the management of public finances at the central level and in the provinces of Bandundu, Katanga, Kasai Occidental, Kasai Oriental, South Kivu, North Kivu, Kinshasa, Equateur. CAS Outcome 1.1. Increased transparency Revised CAS Outcome 1.1 Added the provinces of Kasai Oriental, and efficiency in the management of public Increased transparency and efficiency in the North Kivu, Kinshasha, and Equateur. These finances at the central level and in the management of public finances at the central provinces are covered by the PFMAP provinces of Bandundu, Katanga, Kasai level and in the provinces of Bandundu, (PROFIT CONGO). Occidental and South Kivu Katanga, Kasai Occidental, Kasai Oriental, South Kivu, North Kivu, Kinshasa, Equateur Indicator 1.1.1 Percentage of national Original CAS target replaced by FY17 target FY17 target added to accommodate the revenue transferred to targeted provinces FY17 Target: 35% proposed extension of the CAS to FY17. Baseline: 31.5% (end-2011) Given slow traction, the FY17 target is kept Target: 35% (2016) the same as the original CAS 2016 target. Indicator 1.1.2 Reduced discrepancy Original CAS target replaced by FY17 target FY17 target added to accommodate the between projected and actual expenditures in FY17 Target: 30% proposed extension of the CAS to FY17 and the 4 targeted provinces (Bandundu, the consideration of the new context of Katanga, Kasai Occidental and South-Kivu) decentralization “Decoupage”. Baseline: 51% (end-2011) Target: 10% (2016) Indicator 1.1.3 Percentage of public Original CAS target replaced by FY17 target FY17 target added to accommodate the contracts awarded through open competitive FY17 Target: 75% of large contracts proposed extension of the CAS to FY17. bidding in selected ministries and provinces Baseline: 0 (2012) Target: 50% of large contracts (end-2016) CAS Outcome 1.2. Increased transparency and effectiveness in the management of financial resources from the forest, oil and mining industries
23 With the provinces increasing from 11 to 26, progress will still be measured using former provincial boundaries, and will cross-reference the new provinces as needed.
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Original CPS Results Matrix Updated CPS Results Matrix Comments Indicator 1.2.1 Percentage increase in forest Dropped DRC decentralized collection authority for a taxes collected number of its forest taxes to the provinces in 2014. Ever since, central authorities have been unable to determine what percent of forest taxes is collected, as communications between central and provincial authorities are limited. The country is therefore unable to produce any progress data to inform this indicator. Indicator 1.2.2 Area of forest concessions Original CAS target replaced by FY17 target FY17 target added to accommodate the with signed social responsibility contracts FY17 Target: 10.7M ha proposed extension of the CAS to FY17. Baseline: 2M Ha (end-2011) Target: 4M Ha (mid-2015) Indicator 1.2.3 Percentage increase in Original CAS target replaced by FY17 target FY17 target added to accommodate the revenue from mining sector in total fiscal FY17 Target: 27% proposed extension of the CAS to FY17. revenue Baseline: 2% of GDP(end-2011) Target: 4% of GDP (2015) Indicator 1.2.4 Percentage of oil petroleum Original CAS target replaced by FY17 target FY17 target added to accommodate the permits competitively auctioned FY17 Target: 100% proposed extension of the CAS to FY17. Baseline: 0% Target: 90% in 2015 Milestone 1.2.e Procurement plans for Dropped This milestone was supposed to be supported selling mining assets are published every 6 as part of the Additional Financing for the months mining project (PROMINES). However, it was decided not to pursue the envisaged AF due to the poor performance of the project at the time the AF was being designed. Milestone 1.2.f Inter-ministerial Council Dropped This milestone was supposed to be supported (including civil society) for contract as part of the Additional Financing for the negotiation and asset sales is created and is mining project (PROMINES). However, it operational was decided not to pursue the envisaged AF due to the poor performance of the project at the time the AF was being designed. 44
Original CPS Results Matrix Updated CPS Results Matrix Comments CAS Outcome 1.3. Enhanced governance and increasing the operational performance of SOEs CAS Outcome 1.3. Enhanced governance the Revised CAS Outcome 1.3. Enhanced The mining sector SOE was dropped from mining sector SOEs and increasing the governance and increasing the operational the list, given that the Additional Financing operational performance of other SOEs performance of SOEs for PROMINES, which was to focus on the SOE, could not go forward due to the poor performance of the project in 2013/2014. Indicator 1.3.1 increased efficiency of SOEs Original CAS target replaced by FY17 target FY17 target added to accommodate the that deliver key public services (SNCC, FY17 Target: 6 (Service contract concluded proposed extension of the CAS to FY17. SNEL, SCTP, RVA, RVF, REGIDESO) for REGIDESO) through Public-Private Partnership (PPP) or management performance contracts Baseline: 3 (2013) Target: 6 (2016) CAS Strategic Objective Two: To boost competitiveness to accelerate private sector-led growth and job creation CAS Outcome 2.1 Enhanced business environment for private sector development Indicator 2.1.1 Time to register a business is Original CAS target replaced by FY17 target FY17 target added to capture the quick decreased by half FY17 Target: 10 days progress made against the original target and Baseline: 58 days (2012) to accommodate the proposed extension of Target: 30 days (2015) the CAS to FY17. New indicator (renumbered) Added to capture the ongoing efforts of 2.1.2 Number of days to obtain a reforms in other areas measured by the construction permit Doing Business Report. Baseline: 119 days (2015) FY17 Target: 94 days (Source: Doing Business Report) New indicator (renumbered) Added to capture the ongoing efforts of 2.1.3 Number of days to import and export reforms in other areas measured by the Baseline: Doing Business Report. Import : 63 days (2015) Export : 44 days (2015) FY17 Target: Import : 57 days Export : 40 days (Source: Doing Business Report) 45
Original CPS Results Matrix Updated CPS Results Matrix Comments New milestone (renumbered) Added to capture the following: As part of 2.1.c An agreement to focus the WBG the Western Growth Poles project support on selected key business indicators implementation, an agreement was signed in approved by end-2015 August 2015 between the PIU and the Committee for Improvement of Investment Climate (CPCAI) with the WBG approval, to focus the project support on four indicators: Starting Business, Construction Permit, Paying Taxes, Trading Across Borders. Milestone 2.1.c The Real Time Gross Revised milestone (renumbered) The completion date is extended from mid- Settlement (RTGS) system and the 2.1.d The Real Time Gross Settlement 2014 to mid-2016 to allow for Automated Clearing House (ACH) are (RTGS) system and the Automated Clearing implementation of the related project implemented and operational by mid-2014 House (ACH) are implemented and component. operational by mid-2016 Indicator 2.1.2 A fully functioning, modern Original CAS target replaced by FY17 target FY17 target added to accommodate the payment system providing electronic (cash- Baseline: System not in place proposed extension of the CAS to FY17. less) funds transfer with real-time clearing FY17 Target: Payment system in place and settlement of accounts, and interconnectivity with other payments systems in the region in place by 2015 Indicator 2.1.3 Increased number of SMEs Revised indicator (renumbered) While aiming for the same objective of benefiting from the matching grant fund (of 2.1.5 IFC fund providing risk capital and increasing SME finance, IFC has instead which percent of women) advisory to SMEs; and providing SME and deployed different products more suitable to Baseline: 0 (2012) micro finance to local banks and MFIs, with the DRC market: Private Equity, Credit Target: 60 (2016) the objective of increased access to credit for Lines for MSMEs through banks and MFIs, SMEs trade finance, risk sharing facility, local Baseline: 0 (2012) currency swap facility… FY17 Target: 10 SMEs CAS Outcome 2.2. Improved connectivity and access to transport infrastructure Indicator 2.2.1 Average transit time between Original CAS target replaced by FY17 target FY17 target added to accommodate the copper belt and Zambian border FY17 Target:5 days proposed extension of the CAS to FY17. Baseline: 17 days (2011) Target: 5 days (end-2016)
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Original CPS Results Matrix Updated CPS Results Matrix Comments Indicator 2.2.2 Number of days/year with Revised baseline and added FY17 target Baseline was revised during AF approval. roads not passable by 4×2 in project areas Baseline: Total of 90 days (2011) (Province Orientale, Katanga, Equateur and FY17 Target: 100 days (including the AF2 South Kivu) new road sections) Baseline: Total of 80 days (2011) Target: 60 days (2016) Milestone 2.2.a Cumulative number of Km Original CAS target replaced by FY17 target FY17 target added to accommodate the reopened in project areas (Province FY17 Target: 2,660 km (including the new proposed extension of the CAS to FY17 and Orientale, Katanga and Equateur) road sections from the Additional Financing new road section under Additional Financing Baseline: 300 km (12/2011) 2) 2. Target: 2,176 km (06/2015) Milestone 2.2.b Cumulative number of Km Original CAS target replaced by FY17 target FY17 target added to accommodate the maintained in project areas (Province FY17 Target: 3,400 km (including the new proposed extension of the CAS to FY17 and Orientale, Katanga, Equateur and South road sections from the Additional Financing new road section under Additional Financing Kivu) 2) 2. Baseline: 0 km (12/2011) Target: 2,917 km (06/2016) CAS Outcome 2.3. Improved access to quality broadband network and services at reduced cost Issues and Obstacles: Revised Revised to reflect changes in country and Landline telephone network almost Lack of national fiber-optic network - sector circumstances. completely destroyed broadband infrastructure Costly broadband internet and phone Costly broadband internet and phone access access Over dependence on satellite technology, Legal and regulatory framework to be no national fiber optic backbone revised , renovated and updated Over dependence on satellite technology Indicator 2.3.1 Increased total broadband Original CAS target replaced by FY17 target FY17 target added to accommodate the penetration (household population) FY17 Target: 2.5% proposed extension of the CAS to FY17. Baseline: 0.1% (12/2011) FY17 target is the same as the original CAS Target: 2.5% (2016) 2016 target. This is due to the delay in the implementation of the project and the fact that the construction of the network has not started yet.
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Original CPS Results Matrix Updated CPS Results Matrix Comments Indicator 2.3.2 Increased international Original CAS target replaced by FY17 target FY17 target added to accommodate the Internet Bandwidth (Bitps per capita) FY17 Target: 50 proposed extension of the CAS to FY17. Baseline: <14 (12/2011) Target: 25 (2016) Milestone 2.3.b Design and signature of a Revised The conclusion of a MoU between private Memorandum of Understanding between 2.3.b Establishment of the board of the and public operators is no longer relevant public and private stakeholders for the Societé de Patromoine Nationale (SPN) because of the chosen governance of the PPP establishment of Special Vehicle Purpose which will play the role of Steering structuring during negotiations. The creation (SVP) to build, operate and manage the new Committee to provide overall coordination of the SPN is therefore the new milestone to broadband backbone network by mid-2014 and supervision for the CAB5 Project replace the signature of the MoU. including fiduciary and governance oversight Milestone 2.3.c Recruitment of international Revised The process is now expected to be finalized operators to commercialize the excess 2.3.c Recruitment of international operators by end-2015. capacity of the SNEL network by 2014 to commercialize the excess capacity of the SNEL network by 2015 CAS Outcome 2.4. Increased generation of electricity and improved access to energy Indicator 2.4.1 Quantity of energy delivered Original CAS target replaced by FY17 target FY17 target is the same as the original target to Katanga Region FY17 Target: 5,515 Gwh as the CAS target already represented the Baseline: 2,540 GWh (end-2011) current maximum capacity. Target: 5,515 GWh (12/2015) Indicator 2.4.2 Quantity of renewable energy Original CAS target replaced by FY17 target FY17 target added to accommodate the generated at Inga (GWh) FY17 Target: 9,039 GWh proposed extension of the CAS to FY17. It is Baseline: 4,809 GWh (end-2010) the same as the original target as the CAS Target: 9,039 GWh (end-2016) target already represented the current maximum capacity. Indicator 2.4.3 Increased access to electricity Revised The original CAS indicator was a mistake services in targeted areas including Kinshasa 2.4.3 Increased access to electricity services and is not measurable and is replaced by a Baseline: 9% (2012) in targeted areas including Kinshasa (number new and revised indicator with number of Target: 15% (2016) of additional household connections since additional household connections as the 2007) measurable metric. It has as target the FY17 Baseline: 0 (2007) value. FY17 Target: 35,000 households CAS Outcome 2.5 Boost agriculture production and increase access to markets 48
Original CPS Results Matrix Updated CPS Results Matrix Comments Country Development Goals: Increase Revised The phrase “and marketing of crops” has agriculture productivity Increase agriculture productivity and been added to capture WBG activities. marketing of crops Issues and Obstacles: Revised Additional items added to capture better the Low agriculture productivity Low agriculture productivity country and sector context. Farmers lack access to agriculture input Farmers lack access to agriculture input Weak institution to manage agricultural Poor access to processing facilities for and rural development better value addition of agriculture produce Weak institution to manage agricultural and rural development Ongoing conflicts over land titles, and between agricultural and pastoral communities in the Eastern provinces Indicator 2.5.1 Increased yields of primary Original CAS targets replaced by FY17 FY17 target added to accommodate the crops in targeted areas in the Equateur targets proposed extension of the CAS to FY17. The province FY17 Targets: related project is scheduled to close before Baseline and Target: Increase crop yields Maize: 2t/ha FY17 and the targets may be adjusted when from 2012 to 2015: Cassava: 15t/ha the preparation of the proposed AF operation Maize (1.5t/ha from less than 1t/ha); Cassava Rice: 2t/ha is completed and if there is time to deliver by (12t/ha from 7t/ha); Rice (2t/ha from 1t/ha) FY17.
Milestone 2.5.a Improved agricultural and FY17 Target: 400,000 of whom 60% The related project is scheduled to close animal technologies provided to farmers in women. before FY17 and the targets may be adjusted targeted areas in the Equateur province when the preparation of the proposed AF Baseline: 73,500 beneficiaries operation is completed and if there is time to Target: 400,000 beneficiaries deliver by FY17. Of which % of direct female beneficiaries Baseline: 10 percent Target: 60 percent Milestone 2.5.b Number of Km of rural FY17 Target: 2,500 km The related project is scheduled to close roads rehabilitated in targeted food growing before FY17 and the targets may be adjusted areas when the preparation of the proposed AF
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Original CPS Results Matrix Updated CPS Results Matrix Comments Baseline: 0 (2012) operation is completed and if there is time to Target: 2,500 km (2016) deliver by FY17. CAS Strategic Objective Three: Improve social services delivery and increase human development indicators CAS Outcome 3.1. Increased access to clean water and sanitation Issues and Obstacles: Added Item added to capture better the country and Lack of institutional capacity to deliver In the conflict areas, the approach is sector context. clean water throughout the country bottom-up and participatory; thus, increase in access depends on requests received from intended beneficiaries Indicator 3.1.1 Percentage of population in Original CAS target replaced by FY17 target FY17 target added to accommodate the the targeted areas with access to potable FY17 Target: 55% proposed extension of the CAS to FY17. water Baseline: 43% (end-2011) Target: 53% (end-2015) Indicator 3.1.2 Number of people (including Revised and corrected Original CAS indicator was incorrectly women) in targeted areas provided with 3.1.2 Number of people provided with formulated. An assessment was done in 2009 access to improved water sources in project access to improved water sources in project during the preparation of the water project areas areas and the number of people provided with Baseline: 221,148 (03/2010) Baseline: 5, 292,000 (03/2010) access to improved water sources in project Target: 420,180 (03/2013) Original CAS target replaced by FY17 target areas was estimated to be 5,000,000. FY17 FY17 Target: 6,494,000 target added to accommodate the proposed extension of the CAS to FY17. Milestone 3.1.a Km of secondary and Original CAS target replaced by FY17 target FY17 target added to accommodate the tertiary water distribution network FY17 Target: 751 km proposed extension of the CAS to FY17. constructed Baseline: 0 Target: 651 km Milestone 3.1.b Additional number of Revised The phrase “or easier access to potable households with new piped water 3.1.b Additional number of households with water” is added for clarification. connections new piped water connections or easier FY17 target added to accommodate the Baseline: 0 access to potable water proposed extension of the CAS to FY17. Target: 40,000 (2016) Original CAS target replaced by FY17 target FY17 Target: 50,000
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Original CPS Results Matrix Updated CPS Results Matrix Comments CAS Outcome 3.2. Improved access to health services in targeted areas Issues and Obstacles: Added and revised Revised and items added to capture better Low coverage and poor quality of health Financial barriers to access health the country and sector context service services, especially for the poor Poor quality of health service Low government investment in the health sector Weak supply chain for essential medicines Inadequate staffing (surplus in some areas, low levels in others) Indicator 3.2.1 Rate of DPT3 immunization Original CAS target replaced by FY17 target FY17 target added to accommodate the Baseline: 85% (end-2011) FY17 Target: 90% proposed extension of the CAS to FY17. It is Target: 90% (end-2014) the same as the end-2014 target reflecting the maintenance of the high coverage achieved. Indicator 3.2.2 Percentage of deliveries Original CAS target replaced by FY17 target FY17 target added to accommodate the assisted by qualified personnel FY17 Target: 85% proposed extension of the CAS to FY17. It is Baseline: 80% (end-2011) the same as the end-2014 target reflecting Target:85% (end-2014) the maintenance of the high coverage achieved. Indicator 3.2.3 Number of women 15-49 Original CAS target replaced by FY17 target FY17 target added to accommodate the new users of family planning FY17 Target: 6% proposed extension of the CAS to FY17. The Baseline: 6% (end-2011) target is reduced to reflect the anticipated Target: 11% (end-2014) increase from current level of 5% and given that the project only recently became effective. Milestone 3.2.c 50% of health workers have Revised The milestone indicator has been revised in been retrained in obstetric and neonatal 3.2.c. 13,000 health personnel received order to use indicators that are being tracked health care by 2014 training by WBG-financed projects. Milestone 3.2.d Family planning Replaced The original milestone is not measured under commodities available in 80% of health 3.2.d 90% of pregnant women receive the current project. The milestone is replaced facilities by 2014 antenatal care
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Original CPS Results Matrix Updated CPS Results Matrix Comments by an indicator measured under WBG- financed projects. CAS Outcome 3.3. Improved access to basic education Issues and Obstacles: Revised and added items Revised and items added to capture better Low coverage of education services Financial barriers to access of education the country and sector context. Lack of sustainable financing services for the poor mechanism for the delivery of education Lack of sustainable financing services mechanism for the delivery of education Low quality of education services Low quality of education leading to poor learning outcomes Poor preparation of children to enter schooling (low coverage of early childhood education programs, high child malnutrition rates) CAS Outcome 3.3. Improved access to basic Revised The phrase “in targeted areas” is removed to education in targeted areas CAS Outcome 3.3. Improved access to basic capture better WBG engagements. education Indicator 3.3.1 Increased primary gross Revised The phrase “in targeted areas” is removed to enrollment ratio in targeted areas 3.3.1 Increased primary gross enrollment capture better WBG engagements. The Baseline: 89.7 % (end-2011) ratio baselines are revised to capture the official Target: 105.8 % (end-2015) Baseline: 92.7 % (end-2011) values, as published by the Ministry of Share of female FY17 Target: 132.3% (as projected in the Education. Baseline: 47% (end-2011) Sector Program) Target: 50% (end-2015) Share of female Baseline: 46% (end-2011) Target: 1:1 (2016-2017) Indicator 3.3.2 Increased completion ratio in Revised The word “ratio” is replaced by “rate” and primary in targeted areas 3.3.2 Increased completion rate in primary the phrase “in targeted areas” is removed to Baseline: 59.0% (end-2011) Target: 97.8% (2016-2017) as projected in capture better WBG engagements. The Target: 75%(end-2016) Sector Strategy baseline for share of females is revised to Share of female Share of female capture the official values, as published by Baseline: 51.0% (end-2011) Baseline: 44% (end-2011)
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Original CPS Results Matrix Updated CPS Results Matrix Comments Target: 65% (end-2016) FY17 Target: 48% the Ministry of Education. The 2016-2017 target is as projected in the Sector Strategy.
Milestone 3.3.a Textbooks distributed in Revised and typo corrected The phrase “in targeted areas” is removed to targeted areas by 2015 3.2.a 29.7 million textbooks distributed by capture better WBG engagements. 2015 Milestone 3.3.b Teachers posted in targeted Revised and typo corrected The phrase “posted” is replaced by areas by 2015 3.2.b 389,800 teachers budgeted in targeted “budgeted” to be more realistic. areas by 2015 Milestone 3.3.c Classrooms constructed and Revised and typo corrected The phrase “in targeted areas” is removed to rehabilitated in targeted areas by 2015 3.2.c 2,367 classrooms constructed and capture better WBG engagements. rehabilitated by 2015 CAS Outcome 3.4. Strengthened social protection system Issues and Obstacles: Revised and added Poorly worded phrase is dropped and more Widespread poverty due to lack of social Fragmentation and low-coverage of appropriate items have been added/ safety net programs to assist the poor systems to deliver social safety net services Very low government investment in social safety nets (less than 1percent of national budget) as well as low technical capacity for planning and delivering services Weak inter-sectoral coordination for safety net programs. With UNICEF and WB assistance, a database for vulnerable children is now in place and available to the government and civil society, though it is fully operational only in Kinshasa Very weak targeting mechanisms for public social safety net services, and no consistency
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Original CPS Results Matrix Updated CPS Results Matrix Comments Indicator 3.4.1 Comprehensive database of Original CAS target replaced by FY17 target FY17 target is not yet available. safety net beneficiaries established and FY17 Target: N/A regularly maintained Baseline: Dataset only contains information on street children in Kinshasha (2012) Target: Dataset includes beneficiaries of other safety net programs, e.g., labor- intensive public works, and is updated at least every six months with input from provinces (2015) Indicator 3.4.2 Number of beneficiaries of Original CAS target replaced by FY17 target FY17 target is not yet available. labor intensive public works (share of FY17 Target: N/A female) Baseline: 3,192 (30% female; 2012) Target:18,000 (35% female; 2016) CAS Strategic Objective Four: Addressing fragility and conflict in the Eastern provinces CAS Outcome 4.1. Improved management of public finances and accountability in targeted conflict-affected areas Issues and Obstacles: Revised and added Revised and items added to capture better Weak state capacity to provide public National government pushback against the country and sector context services international dialogue Lack of accountability in the Weak state capacity or budget to provide management of public finances public services Volatile political and security Lack of accountability and clientelistic environment management of public finances Volatile political and security environment Different prioritization between the provincial and national levels Indicator 4.1.1 Increased budget retrocession Original CAS target replaced by FY17 target FY17 target added to accommodate the to Eastern conflict-affected province of FY17 Target: 35% proposed extension of the CAS to FY17. South-Kivu Baseline: currently receiving 10-20% of its revenues as retrocessions
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Original CPS Results Matrix Updated CPS Results Matrix Comments Target: increases to 30% by 2015 Indicator 4.1.2 Number of communities Original CAS target replaced by FY17 target FY17 target added to accommodate the benefitting from participatory budget FY17 Target: 8 districts (including 4 proposed extension of the CAS to FY17. planning processes additional districts in North Kivu) Baseline: 4 districts in South-Kivu Target: all districts in conflict-affected provinces of North-Kivu and Sud-Kivu, by 2015 Indicator 4.1.3 Reduced discrepancy Original CAS target replaced by FY17 target FY17 target added to accommodate the between projected and actual expenditures in FY17 Target: 30% proposed extension of the CAS to FY17. conflicted-affected province of South-Kivu Given slow progress on the indicator, the Baseline: 51% (end-2011) FY17 target is adjusted to be more Target: 10% (2016) conservative than the original CAS 2016 target o be realistic. CAS Outcome 4.2.Increased socioeconomic opportunities in targeted conflict-affected areas Issues and Obstacles: Revised and added Revised and items added to capture better Lack of employment opportunities Complex interplay between economic the country and sector context Limited access to services by the (lack of employment opportunities, population access to land) and political (manipulation of grievances and ethnicity) drivers of conflict Limited access to services by the population including for holistic services for survivors of SGVB at the community level Need to combine economic activities with inter-community dialogue and stabilization measures Indicator 4.2.1 Increased number of person- Original CAS target replaced by FY17 target FY17 target added to accommodate the days of employment created in project areas FY17 Target: 400,000 proposed extension of the CAS to FY17. conflict-affected areas city of Bukavu Baseline: 0 Target: 226,000 person-days by 2016
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Original CPS Results Matrix Updated CPS Results Matrix Comments New indicator New indicator added to capture the expected 4.2.2 Number of persons in conflict-affected results from the various components under areas with access to agricultural extension the GLI. services and improved agricultural inputs Baseline: 0 FY17 Target: 10,000 New indicator New indicator added to capture the expected 4.2.3 Percentage of reported cases of SGVB results from the various components under who receive at least 2 services as needed the GLI. (economic support, psycho-social, legal, medical) Baseline: 50% (mid-2014) FY17 Target: 60% New indicator New indicator added to capture the expected 4.2.4. Percentage of people in conflict- results from the various components under affected communities who report an increase the GLI. in inter-community cohesion and decrease in livelihoods-related tensions. Baseline: 0 (start 2015) FY17 Target: 20% Milestone 4.2.a Number of Km of roads Revised Indicator revised to capture WBG rehabilitated in project areas in conflict- 4.2.a Number of Km of roads rehabilitated in engagements. affected areas city of Bukavu conflict-affected areas Baseline: 0 km (2013) Baseline: 0 (2013) FY17 target added to accommodate the Target: 4 km (2016) Original CAS target replaced by FY17 target proposed extension of the CAS to FY17. The FY17 Target: 3 km target is set lower than the original given slow progress to date. Milestone 4.2.b Number of Km of drainage Original CAS target replaced by FY17 target FY17 target added to accommodate the constructed in project areas in conflict- FY17 Target: 3 km proposed extension of the CAS to FY17. The affected city of Bukavu target is set lower than the original given Baseline: 0 km (2013) slow progress to date. Target: 4 km (2016)
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Original CPS Results Matrix Updated CPS Results Matrix Comments New milestone New milestone added to capture the 4.2.c Client days of training for livelihood expected results from the various improvement provided in conflict-affected components under the GLI. areas Baseline: 0 FY17 Target: 20,000 New milestone New milestone added to capture the 4.2.d. Number of survivors of SGVB expected results from the various receiving psychosocial, economic, and/or components under the GLI. legal services and referral to health services at the community level Baseline: 0 (mid-2014) FY17 Target: 15,000 New milestone New milestone added to capture the 4.2.e Number of village savings and loans expected results from the various associations for vulnerable women supported components under the GLI. Baseline: 0 (mid-2014) FY17 Target: 45 New milestone New milestone added to capture the 4.2.f Number of created or strengthened expected results from the various community structures for conflict components under the GLI. prevention, mediation and resolution. Baseline: 0 (start 2015) FY17 Target: 50
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Annex 3: DRC: Progress towards Original CAS Objectives24 25 CAS OUTCOMES PROGRESS TO DATE FOR OUTCOMES AND WBG PROGRAM MILESTONES CAS Strategic Objective One: Increase state effectiveness and improve good governance PRSP goal 1: Strengthening governance and consolidating peace Country Development Goals: Improve public financial management at national and provincial level; Pursue the decentralization process Issues and Obstacles: Weak public financial management system at national and provincial levels Inadequate capacity at national and provincial levels resulting in budget overruns Poor human resource management in the public service Lack of transparency in public procurement CAS Outcome 1.1. Outcome 1.1: On Track PROJECTS Increased transparency Budget reports and budget execution are being published. Ongoing: and efficiency in the Public Procurement Regulatory Agency and Public Procurement Enhancing Governance Capacity management of public Directorate have been set up and are operational. Except for (P104041, FY08) finances at the central Equateur, all provinces have their public procurement Capacity for Core Public level and in the provinces directorate and units. The number of published procurement Management (P117382, FY11) of Bandundu, Katanga, plans is on the increase. The expenditure chain is operational in Public Sector Reform and Kasai Occidental and Bandundu, Katanga and South Kivu provinces. Rejuvenation (P122229, FY14) South Kivu PFMAP (PROFIT Congo) - Milestones: Strengthening PFM and 1.1.1 Percentage of national Accountability (P145747, FY14) revenue transferred to 1.1.a Integrated Budget Execution Reports are published on the Statistics Development (P150148, targeted provinces Ministry of Budget and Ministry of Finance websites on a FY16) Baseline: 31.5% (end-2011) regular basis, at central and provincial levels Progress: 32% On Track. Budget reports are being published on the website of TRUST FUNDS Target: 35% (2016) the Ministry of Budget on a regular basis at the central level.
24 Fiscal Years (FY) for projects and Trust Funds refer to FY of actual approval (unless otherwise noted). FYs for ASA refer to FY of actual or expected delivery. Ongoing ASA include activities with Concept Review approved by Management. 25 With the provinces increasing from 11 to 26, progress will still be measured using former provincial boundaries, and will cross-reference the new provinces as needed.
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CAS OUTCOMES PROGRESS TO DATE FOR OUTCOMES AND WBG PROGRAM MILESTONES 1.1.2 Reduced discrepancy Monthly reports are available within three weeks from the end MDTF - PFMAP (PROFIT Congo) between projected and of the month since mid-2013. Public Financial Management and actual expenditures in the 4 Accountability Project (P145747) targeted provinces 1.1.b Budget reports are made available on a comprehensive IDF New Procurement Law (Bandundu, Katanga, Kasai manner to the population by 2014 Capacity Building TA (P130499) Occidental and South-Kivu) On Track. Budget execution is available in a comprehensive SRTF Catalytic Project to Baseline: 51% (end-2011) manner on the website. Strengthen the INS (P125509) Progress: 50% TA and capacity building for budget Target: 10% (2016) 1.1.c Procurement Dispute Committee and procurement units at preparation in DRC provinces provincial level are in place and operational by end-2014 1.1.3 Percentage of public On Track: At Central level: ARMP (Public Procurement ASA contracts awarded through Regulatory Agency) and DGCMP (Public Procurement Delivered: open competitive bidding in Directorate) have been set up and are operational .As of PEFA Assessment EW (P131609, selected ministries and December 2014, 93 out of 114 of the procuring authorities (line FY14) provinces. ministries and other procuring entities) have established their Economic Update EW (P133727, Baseline: 0 (2012) procurement units. Dispute Committee within ARMP is in place FY14) Progress: 57% of all public and has reviewed from 9 in 2012 to 30 complaints as of Kinshasa Annual Forum TA contracts in nine Bank- December 2014. Independent procurement audit has been (P145874, FY14) supported central ministries conducted and disseminated for the 2011 budget; the audit Coordinated PFM Reform (2013) report for the 2012 budget is being finalized. A website has Assistance TA (P113619, FY14) Target: 50% of large been designed for publishing most important procurement Debt Management Reform Plan TA contracts (end-2016) documents and decisions. At Provincial level: As of August (P130862, FY14) 2014, except for Equateur, all provinces have created their DPGCMP (public procurement directorate at provincial level) Use of Country System TA and CGPMP (public procurement units at provincial level). (P144456, FY15) National Risk Assessment ML&TF 1.1.d Increased number of disputes resolved by the Procurement TA (P146211, FY14) Dispute Committee in the 4 targeted provinces and 6 targeted PEMFAR (P147410, FY15) ministries per year Ongoing: Off Track. No dispute committee at provincial level; awaiting Programmatic Subnational ARMP (Public Procurement Regulatory Agency) deployment in Economic Analysis (P151614, provinces pending prime minister approval. FY16)
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CAS OUTCOMES PROGRESS TO DATE FOR OUTCOMES AND WBG PROGRAM MILESTONES 1.1.e Procurement plans and reports at national and provincial Provincial Budget Planning level (in the 4 targeted provinces) are published on regular basis (P123040, FY15) On Track. The number of procurement plans published Public Expenditure Management increased from 15 in 2012, to 83 in 2013, and to 136 in 2014. (P127546, FY14) Procurement Use of Country System (P148347, FY15) Economic Update PA (P151615, FY16) Economic Update EW (P156429, FY16) PEMFAR - Dissemination & Macro Model EW (P156672, FY16)
OTHER PARTNERS IMF, DfID, AfDB, UNDP, European Commission, Belgium/CTB, and USAID Country Development Goals: Improve transparency and governance in the management of natural resources; Improve traceability of Government revenues issued from natural resources; Increase its contribution to domestic economy and local communities’ welfare Issues and Obstacles: Poor management of forest, oil and mining resources due to weak legal framework, lack of enforcement mechanisms, and weak institutional capacity generally CAS Outcome 1.2. Outcome 1.2: On Track. PROJECTS Increased transparency While some progress has been made in increasing the Closed during CAS Period: and effectiveness in the effectiveness of forest sector management, the revised Forestry and Nature Conservation management of financial petroleum code is delayed. These outcomes also benefitted from (P100620, FY09) resources from the forest, the EITI Trust Fund for mining which supported the publication Rehabilitation and Participatory oil and mining industries of the 2012 EITI Report. The mining project (PROMINES) Management of Key Protected supported the revision of the Mining Code. Areas (P111621, FY09) 1.2.1 Percentage increase in Ongoing: forest taxes collected Milestones: GEF Financing for PREPAN Baseline: 10% (end-2011) (P127437, FY09)
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CAS OUTCOMES PROGRESS TO DATE FOR OUTCOMES AND WBG PROGRAM MILESTONES Progress: N/A 1.2.a Regular update of the list of holders of forestry rights that National Parks Rehabilitation (Note: DRC decentralized are current in the payment of taxes and inform the forestry (P083813, FY14) collection authority for a administration on other cases, with a view to adoption of Growth with Governance in the number of its forest taxes to enforcement measures Mineral Sector (P106982, FY11) the provinces in 2014. Ever Off Track. Since 2013, most forest taxes are paid at the since, central authorities provincial level. No information is sent to the central level. Joint TRUST FUNDS have been unable to missions (Government/WBG) to set up a tax-reporting EITI TF Phase II: EITI determine what percent of information system by end-2014 did not take place. Implementation (P113977) forest taxes is collected, as CSCF/FIP Improved Forested communications between 1.2.b A National REDD+ Strategy (including the legal Landscape Management (P128887) central and provincial framework) is prepared and validated by national stakeholders REDD Implementation in DRC authorities are limited. The by 2014 (P148219) country is therefore unable Achieved. The National REDD+ Strategy has been completed FCPF Readiness Grant to produce any progress and validated by the Government in October 2012, and data to inform this officially presented to the national stakeholders in November ASA/OTHER indicator.) 2012 and to the international community at the COP18 (Doha, Delivered Target: 35% (mid-2015) December 2012). Oil & Gas Advisory TA (P127283,
FY15) 1.2.2 Area of forest 1.2.c EITI Validation status is completed (by end-2013) DRC Forest Governance concessions with signed On Track. The EITI Secretariat lifted the suspension on DRC Assessment TA (P154671, FY15) social responsibility and declared it compliant on 4 July, 2014. The 2011 Report was Ongoing: contracts validated in December 2013. The 2012 Report was validated in
Baseline: 2M Ha (end-2011) December 2014, the 2013 and 2014 reports are in-progress and Eastern DRC Mineral Recovery TA (P148763, FY17) Progress: 10.7M Ha are due by December 2015. (corresponding to 100% of Review of the Forest Sector of the the existing 57 concessions) 1.2.d Revenue collected are published on quarterly basis DRC TA (P152956, FY16) (09/2014) On Track. Through support and collaboration with IMF and Congo Basin Timber (P153586, Target: 4M Ha (mid-2015) GIZ, publication of revenues collected from the sector is set to FY16) improve, on a quarterly basis. 1.2.3 Percentage increase in OTHER PARTNERS revenue from mining sector 1.2.e Procurement plans for selling mining assets are published IMF, EC, DfID, GTZ, CTB, USAID in total fiscal revenue every 6 months
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CAS OUTCOMES PROGRESS TO DATE FOR OUTCOMES AND WBG PROGRAM MILESTONES Baseline: 2% of GDP(end- Off Track. This milestone was supposed to be supported as part 2011) of the Additional Financing for the mining project Progress: 12.1% (12/2012) (PROMINES). However, it was decided not to pursue the Target: 4% of GDP (2015) envisaged AF due to the poor performance of the project at the time the AF was being designed. 1.2.4 Percentage of oil petroleum permits 1.2.f Inter-ministerial Council (incl. Civil society) for contract competitively auctioned negotiation and asset sales is created and is operational Baseline: 0% Off Track. This milestone was supposed to be supported as part Progress: 0% of the Additional Financing for the mining project Target: 90% in 2015 (PROMINES). However, it was decided not to pursue the envisaged AF due to the poor performance of the project at the time the AF was being designed.
1.2.g Petroleum code adopted by 2014, and effectively implemented by 2014 Off Track. Petroleum code is in final stages of approval after it was adopted by the National Assembly in January 2015. Several iterations have taken place to take into consideration comments from donors, and other stakeholders. This process is not expected to be completed before end-2015. Country Development Goals: Improve transparency and performance management of key State-Owned Enterprises (SOEs) Issues and Obstacles: Weak enforcement capacity Lack of transparency in the management of SOEs Influence from vested interest Ineffective government oversight of strategic SOEs CAS Outcome 1.3. Outcome 1.3: Off Track PROJECTS Enhanced governance of Progress on achieving this outcome is mixed with good traction Closed during CAS Period: the mining sector SOEs on transforming SNEL, REGIDESO and SNCC but little Private Sector Development and and increasing the progress with SCTP, RVA and RVF. Competitiveness (P071144, FY04) Ongoing:
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CAS OUTCOMES PROGRESS TO DATE FOR OUTCOMES AND WBG PROGRAM MILESTONES operational performance Milestones: Urban Water Supply (P091092, of other SOEs FY09) 1.3.a Restructuring of pre-2011 debts of strategic SOEs is Multimodal Transport (P092537, 1.3.1 increased efficiency of completed by mid-2014 FY10) SOEs that deliver key On Track. The milestone is partially achieved through a Decree AF Southern Africa Power Market public services (SNCC, (passed in May 2011) to balance the cross-debts of State-SOE (P069258, FY12 ) SNEL, SCTP, RVA, RVF, and SOE-SOE and transform the final debts into shares. AF Multimodal Transport REGIDESO) through Accounting aspects of this restructuring has been completed, (P129594, FY13) Public-Private Partnership but physical legal shares are still to be issued. The (PPP) or management transformation of REGIDESO from a state-owned enterprise to ASA performance contracts a commercial company is well advanced. As a consequence, the Ongoing: Baseline: 3 (2013) difference between the cross-debts between REGIDESO and the Urbanization Review EW Progress: 3 (09/2014) State (lent loans and direct loans guaranteed by the (P156796, FY17) Target: 6 (2016) Government) was discharged and booked. Agreed debts between REGIDESO and former state companies are OTHER PARTNERS accounted; they remain to be cleared by accounting for equity DfID, AfDB, AFD, CTG, EC related investments. An order or an agreement to carry this out is therefore necessary. O
1.3.b Business Plans for achievement of positive cash flows (by 2016) by strategic SOEs is adopted by respective Governance Boards by mid-2014 Off Track. SNEL has produced and adopted a Business Plan; however, its implementation has been patchy and not consistent. Recently, a Service Contract has been put in place. Despite the recruitment of a private operator (ERANOVE/SDE) to enhance the performance of REGIDESO, the objective of achieving positive cash flows by 2016 appears unrealistic as of now. One of the main constraints faced by REGIDESO is the level of payment arrears on invoices from the administration which continues to increase to reach around US$40m. Unless this issue is definitely solved, the financial equilibrium of REGIDESO cannot be envisaged. The objective of achieving positive cash
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CAS OUTCOMES PROGRESS TO DATE FOR OUTCOMES AND WBG PROGRAM MILESTONES flow for SNCC by 2016 will not be met. SNCC remains heavily overstaffed for the amount of traffic it carries, which entails a vicious circle of continuous accumulation of salary arrears to employees, long periods of strikes, deterioration of services provided, loss of customers, and declining revenues. Options are being analyzed to restructure the Multimodal Transport Project.
1.3.c Certified financial audits of strategic SOEs are published annually On Track. SNEL has not completed and published any financial audits yet. REGIDESO annually publishes and shares with its clients and partners its certified financial audits (this is an indicator followed by the PEMU, Urban Water Supply Project, P091092). Preparation of audits of the transport SOEs is currently underway. SNCC has published audit report. CAS Strategic Objective Two: To boost competitiveness to accelerate private sector-led growth and job creation PRSP goal 2 : Diversifying the economy to accelerate growth and create employment PRSP goal 4 : Protecting the environment and sustaining the fight against climate change Country Development Goals: Pursue structural economic reforms to promote private sector development Issues and Obstacles: Years of conflict have undermined the capacity of private enterprises to thrive and therefore are not contributing to the growth of the economy Lack of access to finance Public enterprises are a major bottleneck to private sector development in DRC CAS Outcome 2.1. Outcome 2.1: On Track. PROJECTS Enhanced business The Government is fully committed and has made significant Closed during CAS Period: environment for private strides, and was recognized as among the top 10 reformers of Private Sector Development and sector development the business environment in the world by Doing Business 2015. Competitiveness (P071144, FY04) Specific progress was made in registering businesses, Ongoing: registering property, improving access to electricity, protecting Western Growth Poles (P124720, investors, etc. FY13)
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CAS OUTCOMES PROGRESS TO DATE FOR OUTCOMES AND WBG PROGRAM MILESTONES 2.1.1 Time to register a Financial Infrastructure and business is decreased by Milestones: Markets (P145554, FY14) half Baseline: 58 days (2012) 2.1.a One-Stop shop (Guichet unique) is implemented and TRUST FUNDS Progress: 17 days (10/2014; operational by end-2014 Regional Integration/ Legal Source: Doing Business On Track. A One-Stop Shop has been implemented for Harmonization (FIRST TF) Report) business registration, with goal of 3 days processing time by (TF012786, FY13-15) Target: 30 days (2015) end of 2015. This was recognized as a reform by the DB 2015 Entrepreneurship as Pathway Out of report. Poverty – TF (P153240) 2.1.2 A fully functioning, modern payment system 2.1.b An action plan to improve key business indicators ASA providing electronic (cash- prepared by end-2013 Delivered: less) funds transfer with On Track. This has now become an annual exercise by the FSAP EW (P144434, FY14) real-time clearing and Committee for Improvement of Investment Climate (CPCAI) AML/CFT Assessment of the DRC settlement of accounts, and under the Ministry of Plan, on the basis of studies conducted by (P147917, FY15) interconnectivity with other the WBG. Strengthening Payment System payments systems in the (P132451, FY15) region in place by 2015 2.1.c The Real Time Gross Settlement (RTGS) system and the Ongoing: Progress: Modern payment Automated Clearing House (ACH) are implemented and Investment Climate Strategy EW operational by mid-2014 system has been procured (P143263, FY16) and is in process of On Track. Payment system architecture is in the process of Spatial Development TA (P145907, installation by mid to end- implementation since end-2014, and the National Switch is FY16) 2015 prepared under the Financial Infrastructure and Markets Project Payments System: Financial to provide a shared retail payment platform and encourage Infrastructure and Markets Project 2.1.3 Increased number of payment and allow interoperability. SMEs benefiting from the (P145554, FY14) matching grant fund (of 2.1.d Annual plan for advisory services provided to SMEs by DRC-Doing Business Reforms which percent of women) IFC are adopted Coordination (FY16-17) (P156593 Baseline: 0 (2012) On Track. IFC is re-engaging in DRC with investments and Progress: 190 (percent of advisory services, with focus on SMEs. IFC women N/A) Entrepreneurship/SME capacity Target: 60 (2016) building “Business Edge” (ongoing) SME credit lines (ongoing)
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CAS OUTCOMES PROGRESS TO DATE FOR OUTCOMES AND WBG PROGRAM MILESTONES DRC Investment Climate (Project ID 600085)
OTHER PARTNERS DfID, KfW, UNDP/UNCDF, EC, AfDB, CTB, GTZ Country Development Goals: Improve infrastructure capacity covering the road sector, railways, telecoms and electricity Issues and Obstacles: Poor quality of infrastructure High cost of movement of goods, people and services Lack of technical capacity Weak M&E system CAS Outcome 2.2. Outcome 2.2: On Track PROJECTS Improved connectivity Reduction of transit time (by rail) between copper belt and Closed during CAS Period: and access to transport Zambian border depends on improving the condition of the right Emergency Urban and Social infrastructure of way (infrastructure), the rolling stock (locomotives and Rehabilitation (P104497, FY07) wagons) and overall transport operations. So far, track Ongoing: 2.2.1 Average transit time rehabilitation works are well underway with a target of 780 km High Priority Reopening & between copper belt and with priority works on the copper belt / Zambian border. Maintenance – Pro-Routes Zambian border Rehabilitation of rolling stock is similarly ongoing. The (P101745, FY08) Baseline: 17 days (2011) delivery of new locomotives took place in mid-2015. There is Agriculture Rehabilitation and Progress: 15 days (2013) therefore a chance that the outcome will be achieved, but there Recovery SIL (P092724, FY10) Target: 5 days (end-2016) is also a risk that the outcome may be impacted by SNCC’s Multimodal Transport (P092537, failure to address other issues of internal inefficiencies such as FY10) 2.2.2 Number of days/year overstaffing. Other outcomes related to the Multimodal Western Growth Poles (P124720, with roads not passable by Transport Project include: (i) good progress in putting in place FY13) 4×2 in project areas modern aircraft communication, navigation and surveillance Urban Development (P129713, (Province Orientale, (CNS) and air traffic management (ATM) in order to enhance FY13) Katanga, Equateur and the safety of DRC’s air space; (ii) a large scale capacity Goma Airport (P153085, FY15) South Kivu) building program for DRC’s civil aviation authority in
Baseline: Total of 80 days partnership with the UN’s International Civil Aviation ASA (2011) Delivered:
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CAS OUTCOMES PROGRESS TO DATE FOR OUTCOMES AND WBG PROGRAM MILESTONES Progress: 0 days for more Authority (ICAO); and (iii) equipping key waterways with River and Urban Transport Review than 2,100 km length of navigation aids to improve waterway transport safety. EW (P144128, FY15) road; i.e., passable all year Ongoing: (09/2014) Milestones: Spatial Development TA (P145907, Target: 60 days (2016) FY16) 2.2.a Cumulative number of Km reopened in project areas Urbanization Review EW (Province Orientale, Katanga and Equateur) (P156796, FY17) Baseline: 300 km (12/2011) Progress: 1,550 km (09/2015) OTHER PARTNERS Target: 2,176 km (06/2015) DfID, AfDB, AFD, CTB, EC, KfW, On Track. The target value of 2,176 km would be reached at EIB, JICA 77% by the current closing date of the project (06/2016). This is due to the postponement of the road section Dulia-Bondo (130 km) because of delay in the rehabilitation works implemented by the Road Agency’s Force Account brigades and the recent termination of the Akula-Zongo (376 km) rehabilitation works contract due to incapacity of the contractor. However, the remaining 500 km of rehabilitation works will be achieved in the implementation timeframe of the project AF2 under preparation (new closing date planned to be February 28, 2018).
2.2.b Cumulative number of Km maintained in project areas (Province Orientale, Katanga, Equateur and South Kivu) Baseline: 0 km (12/2011) Progress: 2,200 km (09/2015) Target: 2,917 km (06/2016) On Track. It is globally expected that all the 1,676 km reopened roads under the project will be in good condition and the total length of road under maintenance program will reach 2,417 km (83% of the initial target). However, with the extension of the closing date planned with the AF2 the remaining 500 km will be reopened in the same time with the new road sections concerned by the AF.
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CAS OUTCOMES PROGRESS TO DATE FOR OUTCOMES AND WBG PROGRAM MILESTONES Country Development Goals: Build a modern national infrastructure for telecoms; Improve the access rate to telecoms and new technologies; Strengthen the liberalization and competitiveness of the sector to attract private investments Issues and Obstacles: Landline telephone network almost completely destroyed Costly broadband internet and phone access Over dependence on satellite technology, no national fiber optic backbone CAS Outcome 2.3. Outcome 2.3: Off Track PROJECTS Improved access to quality While there have been slight improvements in broadband Ongoing: broadband network and access, strengthening of key institutional elements supporting Telecom Component of the services at reduced cost the outcome is yet to gain traction. Costs have not yet declined. Regional Southern Africa Power The fiber will not be built by the end of the CAS period. Market APL1 (P105644, FY04) 2.3.1 Increased total Regional CAB APL5 DRC broadband penetration Milestones: (P132821, FY15) (household population) Baseline: 0.1% (12/ 2011) 2.3.a New legal and regulatory telecoms framework adopted by ASA Progress: 0.2% (06/2014) 2014 Delivered: Target: 2.5% (2016) Off Track. The package has been finalized and was supposed ICT Regulatory Advisory Services to be presented to the “Commission des Lois” in September TA (P132812, FY14) 2.3.2 Increased international 2015 before adoption by the Conseil des Ministres and Internet Bandwidth (Bitps presentation to the Parliament. This process experiences delays per capita) and as of October 20, 2015, the Project is still pending Baseline: <14 (12/2011) presentation to the Commission des Lois. This is a disbursement Progress: 40 (12/2013) condition. Target: 25 (2016) 2.3.b Design and signature of a Memorandum of Understanding between public and private stakeholders for the establishment of Special Vehicle Purpose (SVP) to build, operate and manage the new broadband backbone network by mid-2014 Off Track. The conclusion of a MoU between private and public operators is no longer relevant because of the chosen governance of the PPP structuring during negotiations. The creation of the SPN is therefore the new milestone to replace the signature of the MoU. 68
CAS OUTCOMES PROGRESS TO DATE FOR OUTCOMES AND WBG PROGRAM MILESTONES
2.3.c Recruitment of international operators to commercialize the excess capacity of the SNEL network by 2014 Off Track. The process has been launched but took more time than expected. The pre-qualification process is about to be closed: eight prequalified bidders have submitted technical and financial proposals. The process is expected to be finalized by end-Q1-16. Country Development Goals: Increase the production and transmission capacity of electrical energy; Develop infrastructure for the supply of energy to improve households’ access to electricity; Develop renewable energy sources Issues and Obstacles: Widespread supply shortfalls Inadequate transmission of networks High cost of power Weak institutional capacity CAS Outcome 2.4. Outcome 2.4: On Track PROJECTS Increased generation of The works financed by PMEDE and SAPMP, which will lead to Ongoing: electricity and improved the achievement of this outcome, are progressing with most Inga3 and Mid-size Hydropower access to energy contracts signed and ongoing. Most of the rehabilitated units Development (P131027, FY14) will be in operation by the end of 2016 as well as the Regional Southern Africa Power 2.4.1 Quantity of energy electrification component. The rehabilitation of the T-line Market APL1 (P097201, FY04) delivered to Katanga Region connecting the Katanga region will be completed in 2015. Close Regional & Domestic Power Baseline: 2,540 GWh (end- supervision is vital with the support of the consulting engineer Market Development (P069258, 2011) to ensure that implementation does not suffer additional delays. FY07) Progress: 4,988 GWh (12/2014) Milestones: ASA Target: 5,515 GWh Ongoing: (12/2015) 2.4.a SNEL performance contract is signed and implemented Scaling Up Electricity Access TA Off Track. The performance contract was signed in February (P157240, FY17) 2.4.2 Quantity of renewable 2012. The implementation of the various engagements by the energy generated at Inga Government, SNEL, and jointly is disappointing because of the OTHER PARTNERS (GWh)
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CAS OUTCOMES PROGRESS TO DATE FOR OUTCOMES AND WBG PROGRAM MILESTONES Baseline: 4,809 GWh (end- non-compliance with key engagements. A Service Contract has AfDB, EIB, KfW, USAID, NORAD, 2010) been put in place recently. AFD, CTB Progress: 6,055 GWh (12/2014) Target: 9,039 2.4.b Annual report of the performance contracts is prepared GWh (end-2016) Off Track. A committee with representatives of several Ministries (Comité de Suivi) was created to follow up on the 2.4.3 Increased access to implementation of the contract. Unfortunately, they meet rarely electricity services in and they have not yet issued any report. targeted areas including Kinshasa 2.4.c Annual technical audit of the performance contract of Baseline: 9% (2012) SNEL is published Progress: N/A (12/2014 On Track. A contract with KPMG was signed in January 2014 Target: 15% (2016) to audit the implementation of the performance contract. They have issued a temporary report while waiting to receive and include the comments of both partners (Government and SNEL). Country Development Goals: Increase agriculture productivity Issues and Obstacles: Low agriculture productivity Farmers lack access to agriculture input Weak institution to manage agricultural and rural development CAS Outcome 2.5. Boost Outcome 2.5: On Track PROJECTS agriculture production The project development objective to increase agricultural Ongoing: and increase access to productivity and improve marketing of crops, and animal Agriculture Rehabilitation & markets products by smallholder farmers in targeted areas, is in good Recovery SIL (P092724, FY10) progress according to the status of outcome indicators compared Western Growth Poles (P124720, 2.5.1 Increased yields of to targets. FY13) primary crops in targeted areas in the Equateur Milestones: ASA province Ongoing: 2.5.a Improved agricultural and animal technologies provided to Promoting Investments in farmers in targeted areas in the Equateur province Agriculture EW (P156592, FY16)
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CAS OUTCOMES PROGRESS TO DATE FOR OUTCOMES AND WBG PROGRAM MILESTONES Baseline and Target: Baseline: 73,500 beneficiaries Increase crop yields from Progress: >500,000 (09/2014) OTHER PARTNERS 2012 to 2015: Target: 400,000 beneficiaries DfID, FAO, AFDB, CTB, KOICA, Maize (1.5t/ha from less Of which % of direct female beneficiaries IFAD, UNOPS, ISSSS stabilization than 1t/ha); Cassava (12t/ha Baseline: 10 percent strategy (local conflict prevention from 7t/ha); Rice (2t/ha Progress: 49 percent (09/2014) platforms) from 1t/ha) Target: 60 percent Progress: (i) Maize: 2.5 On Track. The project, through its component 1, has achieved tons/ha (ii) Cassava: 19 most of the agricultural productivity targets, notably for maize, tons/ha (iii) Rice: 1.3 cassava, and rice. This appreciable progress is due to the tons/ha (11/2014) production of improved seeds by trained agri-multiplicateurs and the capacity reinforcement of the research station (INERA) and the seed control and certification entity (SENASEM) in the Equateur province. With regard to animal production, the introduction of new improved animal breeds of small ruminants and poultry with the aim to distribute offspring on a rotational basis to gradually upgrade the stock of the small ruminants in the project area was postponed due to the occurrence of an epizooty in 2012 which destroyed part of the animal stock in the province. The project conducted an animal vaccination campaign for more than 2.5 million poultry and almost 350,000 small ruminants. A second vaccination campaign is ongoing before introducing the new improved breeds. As of September 30, 2014, 87,051 households have directly benefitted from project activities (target: 105,000 households by project end). Based on an average of six persons per household, the total number of beneficiaries is estimated to be more than 500,000 of which 49 percent are direct female beneficiaries.
2.5.b Number of Km of rural roads rehabilitated in targeted food growing areas Baseline: 0 (2012) Progress: 1,129 km (10/2014)
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CAS OUTCOMES PROGRESS TO DATE FOR OUTCOMES AND WBG PROGRAM MILESTONES Target: 2,500 km (2016) On Track. As of October 31, 2014, a total of 1,129 km of rural roads have been rehabilitated in targeted food growing areas of the project zone. The direct impact of these roads is already profitable to around 500 villages totaling more than 500,000 inhabitants and has generated more than 30,000 jobs. In addition, the construction of 3 market infrastructures (out of 4) and 6 storage facilities (out of 16) already contribute to ease market access for agriculture produce. CAS Strategic Objective Three: Improve social services delivery and increase human development indicators PRSP goal 3: Improving access to basic social services while raising human capital Country Development Goals: Increased access to potable water Issues and Obstacles: Lack of institutional capacity to deliver clean water throughout the country CAS Outcome 3.1. Outcome 3.1: On Track PROJECTS Increased access to clean The outcomes are well on their way to be achieved and targets Closed during CAS Period: water and sanitation are expected to be surpassed resulting in increased access to Emergency Social Action clean water. (P086874, FY05) 3.1.1 Percentage of Emergency Urban and Social population in the targeted Milestones: Rehabilitation (P104497, FY07) areas with access to potable Ongoing: water 3.1.a Km of secondary and tertiary water distribution network Urban Water Supply (P091092, Baseline: 43% (end-2011) constructed FY09) Progress: 65% (09/2014) Baseline: 0 Eastern Recovery (P145196, FY14) Target: 53% (end-2015) Progress: 593 km (09/2014) Target: 651 km TRUST FUNDS 3.1.2 Number of people On Track. The objective to reach 651 km will be surpassed as JSDF -Socio-Economic (including women) in the PEMU (P091092) made some savings and reallocated funds Empowerment – Eastern DRC targeted areas provided with to extend secondary and tertiary networks. In addition, 64 km of (P149689, FY16) access to improved water primary networks is constructed for a target of 85 km. sources in project areas OTHER PARTNERS Baseline: 221,148 (03/2010) 3.1.b Additional number of households with new piped water Target: 420,180 (03/2013) connections 72
CAS OUTCOMES PROGRESS TO DATE FOR OUTCOMES AND WBG PROGRAM MILESTONES [Note: Original CAS Baseline: 0 DfID, CTB, WHO, MSF, UNICEF, indicator was incorrectly Progress: 9,505 (09/2014) [For ERP only] UNDP, USAID formulated. An assessment Target: 40,000 (2016) was done in 2009 during the On Track. Two projects contribute to this outcome. (i) PEMU preparation of the water has provided access to drinking water to 362,850 additional project and the number of people by September 2014 for an objective to provide drinking people provided with access water to 1.2 m additional people; (ii) The Eastern Recovery to improved water sources Project only became effective on September 8, 2014 but, thanks in project areas was to a PPA, it was possible to pilot implementation before estimated to be 5,000,000] effectiveness, and it is estimated that some 9,000 people now Corrected: have access to improved water sources in North Kivu. Overall, Baseline: 5,292,000 this objective is well on-track to being achieved and should be (03/2010) surpassed. Target: 5,350,000 (03/2013)] Progress: 6,000,000 (04/2015) Country Development Goals: Improve delivery of primary health care Issues and Obstacles: Low coverage and poor quality of health service CAS Outcome 3.2. Outcome 3.2: Off Track PROJECTS Improved access to health Some of the targets have been achieved and others are close to Closed during CAS Period: services in targeted areas achievement. There has also been a 30% reduction in under-5 Emergency Urban and Social mortality recorded by the 2014 DHS survey, partly attributable Rehabilitation (P104497, FY07] 3.2.1 Rate of DPT3 to the doubling in the rate of utilization of mosquito nets. Health Sector Rehabilitation and immunization However, key indicators such as new adopters of family Support (P088751,FY06) Baseline: 85% (end-2011) planning methods and child chronic malnutrition (stunting, one Ongoing: Progress: 89% (12/2014) of the highest levels in Africa at 43%) indicators have Human Development Systems Target: 90% (end-2014) stagnated. The country also needs support to ensure it has a Strengthening (P145965, FY14) well-financed Ebola contingency plan, including support to Great Lakes Emergency Sexual and 3.2.2 Percentage of strengthen its laboratory capacity. Gender- Based Violence and deliveries assisted by Women’s Health (P147849, FY14) qualified personnel Milestones: 73
CAS OUTCOMES PROGRESS TO DATE FOR OUTCOMES AND WBG PROGRAM MILESTONES Baseline: 80% (end-2011) Health System Strengthening Progress: 80% (12/2014) 3.2.a Cold chain equipment available in 80% of health centers (P147555, FY15) Target:85% (end-2014) by end of 2014 On track. The target for this particular immunization milestone TRUST FUNDS 3.2.3 Number of women 15- indicator is virtually achieved (100%) and the new health Capacity Building in Budget 49 new users of family operation will continue to focus on immunization to sustain the Preparation for the Health Sector planning gains and further increase coverage. However, a considerable Project (P126890) Baseline: 6% (end-2011) gap still exists with regard to “children fully immunized” which Progress: 5% (12/2014) still stands at only 45%. ASA Target: 11% (end-2014) Delivered: 3.2.b 80% of delivery rooms in health facilities have received Health Systems and Financing EW 3.2.4 Percentage of children standard medical equipment for obstetric care by 2014 (P116349, FY14) under 5 sleeping under Achieved. 818 health facilities rehabilitated and equipped [note: Social Sector Public Expenditure LLINs (mosquito nets) in percentages are not available]. Review (P147553, FY16) targeted areas Ongoing: Baseline: 35% (end-2011) 3.2.c 50% of health workers have been retrained in obstetric and Impact Evaluation of Performance- Progress: 66% (06/2014) neonatal health care by 2014 Based Financing (P150979, FY18) Target: 80% (end-2014) Achieved. 13,640 out of 20,000 (68%) health workers received training. OTHER PARTNERS EC, GFATM, GAVI, KOICA, USAID, 3.2.d Family planning commodities available in 80% of health DfID, CIDA, Belgium, JICA, GTZ, Bill facilities by 2014 and Melinda Gates Foundation, Off Track. No family planning commodities available due to UNICEF, WHO, UNFPA, UNAIDS problem with supply chain.
3.2.e. Coverage of 80% of population with long lasting insecticide bed nets per household completed by the end of 2013 Achieved. Achievement is 94.3%. This has been one of the major public health achievements in DRC over the last three years and has contributed to the 30% reduction in under-five mortality rate.
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CAS OUTCOMES PROGRESS TO DATE FOR OUTCOMES AND WBG PROGRAM MILESTONES Country Development Goals: Increase access and equity to the various levels of education, and particularly in basic education, especially for girls Issues and Obstacles: Low coverage of education services Lack of sustainable financing mechanism for the delivery of education services Low quality of education CAS Outcome 3.3. Outcome 3.3: On Track. PROJECTS Improved access to basic All indicators are progressing towards their target values and Closed during CAS Period: education in targeted are expected to be achieved by the end of the CAS period. Education Sector (P086294, FY07) areas Ongoing: Milestones: Human Development Systems 3.3.1 Increased primary Strengthening (P145965, FY14) gross enrollment ratio in 3.3.a 29.7 million textbooks distributed in targeted areas by Eastern Recovery (P145196, FY14) targeted areas 2015 Post-Basic Education (P149233, Baseline: 89.7 % (end- On Track. As of October 2014, 29.5 million textbooks have FY15) 2011) been or are being distributed. Progress: 106.8% (school ASA year 2013-2014) 3.3.b 389,800 teachers posted in targeted areas by 2015 Delivered: Target: 105.8 % (end-2015) On Track. At present, 349,800 teachers (53% of the 660,000 Operationalizing Higher Education Share of female teachers in the teachers’ corps) are budgeted. It is expected that TA (P128640, FY14) Baseline: 47% (end-2011) the number will increase to 375,700 (including 12,500 teachers Mainstreaming Gender TA Progress: 47.2% (school supported by AFD budget support program). (P109868, FY16) year 2012-13); 0.9 (for 100 Skills Development Study EW 3.3.c 2,367 classrooms constructed and rehabilitated in targeted boys, there were 90 girls; (P123857, FY15) areas by 2015 school year 2013-2014) Target: 50% (end-2015) On Track. At present 1,569 classrooms are constructed/ OTHER PARTNERS rehabilitated (including 90 in conflict areas through the Eastern ICR, CRS, EC, CTB, UNICEF, UNDP, Recovery Project). It is expected that the ongoing project will 3.3.2 Increased completion USAID, AfDB, AFD, UNESCO, DFID ratio in primary in targeted add 900 classrooms by April 2015. areas Baseline: 59.0% (end-2011) Progress: 69.1% (2013- 2014) 75
CAS OUTCOMES PROGRESS TO DATE FOR OUTCOMES AND WBG PROGRAM MILESTONES Target: 75%(end-2016) Share of female Baseline: 51.0% (end-2011) Progress: 62% (2013-2014) Target: 65% (end-2016) Country Development Goals: Enhance safety nets through improved access to basic social services Issues and Obstacles: Widespread poverty due to lack of social safety net programs to assist the poor CAS Outcome 3.4. Outcome 3.4: Off Track PROJECTS Strengthened social While key building blocks for a social protection strategy have Closed during CAS Period: protection system been put in place, the next step of adopting a policy and Emergency Social Action implementing it with adequate financing will depend on (P086874, FY05, FY13) 3.4.1 Comprehensive political commitment. So far, financing for social protection has Street Children (P115318, FY10) database of safety net been very low. Ongoing: beneficiaries established Eastern Recovery (P145196, FY14) and regularly maintained Milestones: Human Development Systems Baseline: Dataset only Strengthening (P145965, FY14) contains information on 3.4.a Updated Social Protection Strategy street children in Kinshasa On Track. A draft SP policy has been produced but needs TRUST FUNDS (2012) improvement. Prevention and Mitigation of SGBV Progress: Dataset includes (P150651, FY15) information on street 3.4.b Action plan for improving efficiency of safety nets Support to Establishing a Social children country-wide and is programs Protection System (P150462, FY14) regularly maintained. (9/14) On Track. A safety nets assessment was completed in May Target: Dataset includes 2015 and safety nets training is planned for early 2016. ASA beneficiaries of other safety Delivered: net programs, e.g., labor- 3.4.c Stakeholders trained in data collection and use of database National Social Protection Strategy intensive public works, and On Track. Some 300 civil servants were trained in monitoring (P150433, FY15-16) is updated at least every six & evaluation and social research methodology and statistics. Survey and Poverty Analysis TA months with input from (P147171, FY14) provinces (2015) 3.4.d Katanga pilot labor-intensive public works program is Ongoing: replicated in at least three provinces
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CAS OUTCOMES PROGRESS TO DATE FOR OUTCOMES AND WBG PROGRAM MILESTONES 3.4.2 Number of On Track. LIPW program under preparation in South Kivu, Support to Social Protection System beneficiaries of labor North Kivu and Province Orientale, expected to kick off in Q1 TA (P150462, FY16) intensive public works of 2016. Poverty Assessment (P149583, (share of female) FY15-16) Baseline: 3,192 (30% 3.4.e A national multi-sectoral coordination committee for the Poverty Diagnostic for WASH EW female; 2012) protection of Orphan and Vulnerable Children (OVC) is (P154368, FY17) Progress: N.A. (11/2014) established and operational Target:18,000 (35% female; Off Track. No progress. OTHER PARTNERS 2016) UNICEF, ILO, DfID, AFD, USAID, WFP CAS Strategic Objective Four: Address fragility and conflict in the Eastern provinces PRSP goal 1: Strengthening governance and consolidating peace Country Development Goals: Leveraging national policy dialogue to strengthen accountability and effectiveness of state institutions in support of peace consolidation Issues and Obstacles: Weak state capacity to provide public services Lack of accountability in the management of public finances Volatile political and security environment CAS Outcome 4.1. Outcome 4.1: On Track PROJECTS Improved management of Support to increase revenue mobilization, participatory Ongoing: public finances and budgeting and reporting on provincial budget execution is still Enhancing Governance Capacity accountability in targeted ongoing under the PFMAP, and needs to be strengthened. (P104041, FY08) conflict-affected areas Enhanced risk-based supervision and fiduciary capacity Eastern Recovery (P145196, FY14) building of implementing entities will need to be implemented. PFMAP (PROFIT Congo) Public 4.1.1 Increased budget Financial Management and retrocession to Eastern Milestones: Accountability (P145747, FY14) conflict-affected province of South-Kivu 4.1.a Information and analysis produced by the Bank is utilized TRUST FUNDS Baseline: Currently in policy dialogue, and contributes to improved government Socio-Economic Empowerment – receiving 10-20% of its policy decisions and actions in the Eastern provinces, and Eastern DRC (P149689) revenues as retrocessions influences government and donor programs and service delivery MDTF PFMAP (PROFIT Congo), Progress: 32% at field level by 2015 Public Financial Management and
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CAS OUTCOMES PROGRESS TO DATE FOR OUTCOMES AND WBG PROGRAM MILESTONES Target: Increases to 30% by On Track. Retrocession from central government to provinces Accountability Project (P145747, 2015 is still a challenge given the weak mobilization of domestic FY14) revenue. However, the Bank’s ongoing support to PFM and 4.1.2 Number of public sector reforms would be critical to increase the transfers ASA communities benefitting to provinces. In 2015, the Eastern Recovery Project will Ongoing: from participatory budget produce comprehensive studies on six strategic corridors (on ICT for Accountability in Education planning processes political, social and economic situation and opportunities) that TA (P155840, FY16) Baseline: 4 districts in will be shared with local authorities and inform livelihood South-Kivu development and provide for a more open discussion about OTHER PARTNERS Progress: 4 financial needs. However, the government has practically halted Government's STAREC Program, Target: All districts in all discussions around financial decentralization until a United Nations (ISSSS Stabilization conflict-affected provinces government of national unity is formed, which may take a long Strategy), EU of North-Kivu and Sud- time and is a highly politicized process. Kivu, by 2015 4.1.b Budget reports are made available in a comprehensive 4.1.3 Reduced discrepancy manner to the population by 2014 between projected and On Track. The 2014 Budget was made available to the public. actual expenditures in The civil society was able to get copy of the budget and conflicted-affected province participated at the budget hearing and analysis. of South-Kivu Baseline: 51% (end-2011) Progress: 50% Target: 10% (2016) Country Development Goals: Strengthening societal capabilities and resilience for peace consolidation, and sustainable development in the East Issues and Obstacles: Lack of employment opportunities Limited access to services by the population CAS Outcome Outcome 4.2: On Track PROJECTS 4.2.Increased The major frameworks are on track and the outcome is Ongoing: socioeconomic considered on track as the major vehicle for delivering results Urban Development (P129713, opportunities in targeted has become effective. FY13) conflict-affected areas 78
CAS OUTCOMES PROGRESS TO DATE FOR OUTCOMES AND WBG PROGRAM MILESTONES Milestones: Eastern Recovery (P145196, FY14) 4.2.1 Increased number of Great Lakes Emergency SGVB and person-days of employment 4.2.a Number of Km of roads rehabilitated in project areas in Women’s Health (P147489, FY14) created in project areas conflict-affected areas city of Bukavu Support for Conflict-sensitive conflict-affected areas city Baseline: 0 km (2013) Program Design and Risk of Bukavu Progress: 0 (for Eastern Recovery Project) (11/2014); 2.3 km Management (‘GLR Conflict Baseline: 0 constructed in Bukavu (for Urban Development Project) Facility’, P148907, FY 14) Progress: 0 (for Eastern (11/2014) Prevention and Mitigation of Sexual Recovery Project) Target: 4 km (2016) and Gender-Based Violence in (11/2014); 80,000 persons On Track. No progress yet with Eastern Recovery Project North and South Kivu (P150651, (for UDP) (11/2014) because project just became effective. Labor-intensive public FY15) Target: 226,000 person-days works are expected to start in Q1 2015. For Urban Development Reinsertion and Reintegration by 2016 Project (UDP), target of 4 km road construction likely to be (P152903, FY15) reached. Goma Airport (P153085, FY15)
Great Lakes Trade Facilitation 4.2.b Number of Km of drainage constructed in project areas in Program – Phase 1 (P151083, conflict-affected city of Bukavu FY16) Baseline: 0 km (2013)
Progress: 0 km (for UDP) (11/2014) ASA Target: 4 km (2016) Delivered: On track. Under the Urban Development Project, target of 4 DDR III Project Paper TA km drainage works likely to be reached. (P150893, FY15)
Forced Displacement in the Great Lakes Region (P149503, FY16) Ongoing: Support to the Land Sector Review (P152207, FY16) Strengthening WBG Engagement in DRC TA (P148720, FY16) Urbanization Review EW (P156796, FY17)
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CAS OUTCOMES PROGRESS TO DATE FOR OUTCOMES AND WBG PROGRAM MILESTONES OTHER PARTNERS Government's STAREC, United Nations Agencies (ISSSS Stabilization Program), DfID, USAID, EU; International NGOs
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Annex 4: Poverty Trends
A. Poverty Reduction
1. While the most recent data show poverty declining in the DRC, the decline is not proportionate to the strength of economic growth. The national poverty rate declined from 69.3 percent in 2005 to 64 percent in 2012, and the extreme poverty rate—the share of the population whose total consumption is lower than the food poverty line (438165.8 CDF in 2012)—fell from 33.8 to 27 percent. Thus the incidence of poverty fell by 5.3 percent and of extreme poverty by 6.8 percent compared with 2005. The consumption of the poorest households grew slowly (1.2 percent), but that of better-off households (those in the top wealth quintile) dropped 5.6 percent.
2. It appears that poverty in DRC is relatively unresponsive to growth. For 2005–12, the elasticity of GDP growth on extreme poverty has been –0.68 and on poverty only –0.27. This rigidity of poverty is partly related to the sources of growth and the management of natural resources. Rural poverty fell by 5.6 percent and urban by 4.1 percent. Table 1 shows the poverty trend by geographic area.
3. Although the incidence of poverty declined between 2005 and 2012, the number of poor people has increased by 7 million, with significant heterogeneity across provinces, geographic areas, and gender. Most regions of the country have poverty headcount rates above 60 percent, with the most intense poverty found in the center and the northwest. The increase in numbers of poor people is highest in both Kasai provinces, which added 4 million poor people between 2005 and 2012. While poverty has become deeper, more prevalent, and more severe in central Kasai Oriental, Kasai Occidental, and Maniema, all poverty indicators have improved in north-east Orientale and North Kivu, where both poverty incidence and the numbers living below the poverty line (724,506 CF) fell. Land covered by tropical forest houses 43 percent of the population but almost 60 percent of the poor (26 million). Female-headed households seem to fare better than male-headed households, probably because they are mostly divorced or widowed (70 percent) and self-employed (80 percent), with smaller households.26 However, for identical time spent at work 56 percent of women but only 40 percent of men earn less than 30,000 CF per month. Attached tables and figures show the different distributions of poverty by geographic, gender, and socioeconomic classifications.
26 Average size of households headed by a woman is 3.6 persons and by a man 5.3 persons. 81
Table 1: Poverty and Inequality Trends, 2005 and 2012 Squared Poverty incidence Poverty gap poverty gap Gini 2005 2012 Change 2005 2012 2005 2012 2005 2012 Change National 69.3 64.0 -5.4 25.5 30.3 13.2 16.7 38.0 35.0 -3.0
Kinshasa 56.3 52.8 -3.5 19.0 17.6 8.7 8.0 35.1 32.4 -2.6 Other urbans 71.9 66.8 -5.1 31.9 26.7 17.5 13.6 38.0 36.0 -2.0 Rural 70.5 64.9 -5.6 30.7 26.4 16.8 14.0 38.1 34.9 -3.2
Urban 66.6 62.5 -4.1 27.5 14.6 23.9 11.9 37.6 35.2 -2.5 Rural 70.5 64.9 -5.6 30.7 16.8 26.4 14.0 38.1 34.9 -3.2 Gender of household head Male 69.8 64.7 -5.1 30.0 25.8 16.3 13.5 37.9 34.6 -2.7 Female 66.5 60.1 -6.5 27.6 23.4 14.7 11.9 38.6 36.7 -3.6
Source: DRC Poverty Assessment, 2015.
Figure 1. Poverty Incidence by Geographic Area
Poverty incidence (% Poor) Poverty incidence (% Poor) in 2012 in 2005
Orientale Orientale
Equateur Equateur
Nord-Kivu Nord-Kivu
Maniema Sud-Kivu Maniema Sud-Kivu
Kinshasa Bandundu Kasai Oriental Kinshasa Bandundu Kasai Oriental
Bas-Congo Kasai Occidental Bas-Congo Kasai Occidental
Katanga Katanga Mean Mean 76.4 - 90 76.4 - 90 63.5 - 76.4 63.5 - 76.4 56.3 - 63.5 56.3 - 63.5 48 - 56.3 48 - 56.3
Source: forthcoming DRC- Poverty Assessment, 2015.
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Figure 2: DRC Poverty Map
Source: DRC Poverty Assessment, 2015.
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Table 2: Poverty and Inequality by Province, 2005 and 2012 Squared Poverty Poverty Gap Poverty Incidence Gap Gini Province 2012 2005 Change 20122005 2012 2005 2012 2005Change Kinshasa 52.8 56.3 -3.5 17.6 19.0 8.0 8.7 32.42 35.067 -2.6 Bandundu 77.2 84.0 -6.8 33.8 40.7 18.0 24.1 32.68 33.472 -0.8 Bas-Congo 49.3 61.6 -12.3 13.0 20.1 4.7 8.6 28.577 27.206 1.4 Katanga 62.9 70.0 -7.1 25.8 30.5 14.1 16.4 36.716 38.463 -1.7 Kasaï Oriental 75.9 58.4 17.5 34.6 23.6 19.9 12.6 34.681 39.217 -4.5 Kasaï Occidental 74.7 49.3 25.4 34.2 17.8 19.4 8.4 34.734 40.811 -6.1 Equateur 76.4 89.9 -13.5 33.6 45.4 18.3 26.9 33.85 31.059 2.8 Nord-Kivu 49.0 68.2 -19.2 16.5 28.9 7.7 15.7 35.033 35.84 -0.8 Sud-Kivu 62.9 81.2 -18.3 22.5 35.1 10.4 18.6 33.184 30.371 2.8 Maniema 63.5 49.3 14.2 23.4 17.4 11.0 8.1 28.869 34.958 -6.1 Province Orientale 55.2 70.6 -15.4 20.0 30.8 9.8 16.9 34.302 37.234 -2.9 Source: forthcoming DRC- Poverty Assessment, 2015.
Figure 3: Literacy Rate, Ages Figure 4: Under-5 Mortality Figure 5: Population 15–24, by Wealth Quintile Access to Basic Infrastructure, Percent
2007 2013 250.0 0.93 196.7 28.8 0.87 180.9 0.77 200.0 0.72 156.9 155.9 22.6 0.69 143.4 0.59 0.66 150.0 2005 0.51 0.56 15.3 0.48 2012 100.0 86.2 10.7 0.39 120.9 119.7 121.4 116.7 114.4 0.30 50.0 75.5 3.64.2
0.0 Poorest Richest All Electricity Pipe water Sanitation Poorest Richest All 2007 2013
Source: forthcoming DRC- Poverty Assessment, 2015.
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Annex 5: Gender as a Cross‐Cutting Issue
CAS Objectives
1. The CAS identified gender as a cross-cutting issue and outlined opportunities for mainstreaming gender in operations and analytical work. All new operations and analytical tasks were to be gender-informed, addressing gender inequality in the underlying analysis, in the action proposed and in M&E arrangements. The CAS identified four strategic objectives relating to gender: (1) proactive support for mechanisms for greater gender inclusion in local policy and decision-making bodies; (2) specific support in the WBG program on private sector development and employment (growth poles projects based on agriculture and agribusiness) to promote small- scale agricultural businesses run by women, improve their access to finance, focus agricultural service delivery on the needs and priorities of women farmers, and ensure gender inclusion in community and other REDD-related decision- making bodies; (3) a focus in WBG social programs on gender inclusion in education, health, and social protection; and (4) addressing the gender dimensions of conflict in conflict-affected areas.
World Bank Group Contributions
2. At this point, the WBG portfolio in DRC gives considerable attention to gender. The WBG is promoting more gender-inclusive local policy-making bodies; for example, community governance mechanisms are giving women significant opportunities to participate in health management, school management, and parents’ committees. WBG operations have also been supporting the drafting of the new Family Code, which will give women greater rights to participate in the economy. The agricultural projects have been applying a gender lens to ensure that technologies are chosen with a view to women’s time, given that agriculture is a major source of employment for women. The Western Growth Poles project aims for 40 percent of job created in selected value chains to go to women. The portfolio’s agricultural projects will also be focusing more intensively on nutritional impact, which requires gender-sensitive approaches. REDD- related decision-making bodies have gender focal points. The contracts that the government negotiates with private companies in the forestry sector have gender-related clauses.
3. Considerable progress has been made. The most recent gender parity ratio for gross primary school enrollment was 0.96 in 2013, up from 0.81 in 2007. WBG-financed operations in health also focus on high-impact interventions to specifically address the health of women and children, with support now covering six provinces. Monitoring by the Financing Primary Health Care operation indicates that: the percentage of births assisted by a qualified health professional increased from a baseline of 47 percent to 75 percent; the percentage of pregnant women sleeping under an insecticide-treated net (ITN) went from 43 percent to 63 percent; the percentage of pregnant women who received 2 doses of IPT during their last pregnancy increased from 26 percent to 47 percent; and the percentage of pregnant women receiving antenatal care increased from 63 percent to 87 percent. A project was approved in FY14 to target sexual and gender-based violence and women’s health in North and South Kivu. Rigorous impact evaluation evidence generated by innovative approaches piloted in previous projects have informed the development of the US$107 million IDA Great Lakes Emergency SGBV and Women's Health Project. The WBG is also applying a gender lens in other operations in conflict-affected areas in the eastern
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DRC, such as the Eastern Recovery Project, and in agriculture that will address forced displacement. The WBG has also supported large surveys (Demographic and Health Survey, 1-2- 3 Poverty Survey) that have provided valuable gender-disaggregated data and gender-related data generally.
Lessons Learned
4. Some of the lessons learned include the following: Systematic review: To ensure that task teams maximize the opportunities within analytical work and operations to address gender issues, it is useful for the chairs of concept note and decision review meetings to ask a standard question about gender. Technical assistance: Technical assistance on how to mainstream gender issues, particularly to sectors that may not have had experience in this area, can facilitate the process. Role of champions: Female champions are critical to advance the gender agenda in DRC. At the moment, there is only one woman coordinator of a WBG-financed project in DRC. Gender equality as good economics: When advocating for gender-sensitive approaches, it has been more effective for the WBG to communicate that gender equality is good economics rather than a rights or humanitarian issue. Measurement: To advance a mainstreaming agenda, it is critical to monitor progress systematically. Without metrics, the risk of not delivering on promises to mainstream shoots up.
Future Objectives and Proposed Program
5. No changes are proposed to the gender mainstreaming agenda the CAS identified. The WBG will continue to encourage the client to seek opportunities within operations to address gender inequality in the analysis, the proposed actions, and the M&E arrangements where possible. These efforts will be aided by the evidence that is expected to be generated over the coming months by the impact evaluations of the Bank’s Africa Gender Innovation Lab.
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Annex 6: Eastern DRC Risk Assessment
Near-term Political and Security Dynamics affecting Eastern DRC
1. Regional concerns remain high, with immediate neighbors Central African Republic, South Sudan, and Burundi unstable and not secure. In the border zones the presence of armed groups from Rwanda and Uganda on DRC soil is exacerbating tensions. Mutual mistrust across the region is high. Although at first it offered hope for stabilization in the east, nearly two years after it was signed, many analysts now see the Peace, Security, and Cooperation Framework as moribund.27. However, there has been some progress on regional commitments in terms of the defeat of the M23, military engagement with domestic and foreign armed groups, and the surrender of some Democratic Forces for the Liberation of Rwanda (FDLR) forces.
2. National military operations continue against the FDLR, the Allied Democratic Forces (ADF), and the Lord’s Resistance Army (LRA). Experience has shown, however, that such operations can only work if there is political dialogue with the leadership of armed groups and efforts are made to address the grassroots tensions that lead communities to support such groups. Progress on this political dimension is slowed by large-scale displacement due to violence—there are currently 2.8 million of the displaced in the eastern DRC. As a result of these operations, rural areas across the east have become heavily militarized. This has depressed livelihoods as communities fall back on short-term cropping and find it difficult to get their produce to markets due to insecurity and the proliferation of roadblocks. MONUSCO, the United Nations Organization Stabilization Mission in the DRC, was in the past a close partner of the Forces Armées de la République Démocratique du Congo (FARDC), but is now slimmed down and less likely to provide direct support and monitor operations.
3. Though the pursuit of armed groups continues as new ones form, the recognized root causes of violence have not been sufficiently addressed: access to land, exclusionary identity politics, and a lack of positive state presence in rural areas. The recent addition of Burundian refugees to this volatile mix has heightened tensions in the Ruzizi Plain.
4. These drivers and conflict interests add up to an unpredictable and fragile operational landscape, particularly in the Kivus, Orientale, and northern Katanga. The effects of the scheduled national and local elections cannot be predicted. The consequences could well be destabilizing.
5. The decentralization effect of the announced provincial découpage is uncertain. The creation of new, smaller political units may fundamentally change citizens’ day-to-day interactions with the government. Smaller provinces can bring citizens closer to services and elected representatives. New regional governments may also bring new fiscal resources, government jobs, and administrative attention to underserved areas. New provinces also mean new leadership positions, which could expand the field of political candidates, making national politics more competitive. A president might respond either by ruling more responsibly or by consolidating power, despite the decentralization aims of découpage.
27 http://www.crisisgroup.org/en/regions/africa/central-africa/dr-congo/b107-congo-ending-the-status-quo.aspx. 87
6. The several national and international programs to support peace building in the DRC are generally not synchronized. Some donors pursue governance and security programming in silos; the ISSSS stabilization strategy is an exception. The national government continues to prefer technocratic and hardware-focused program design and delivery, supported by development partners (e.g., STAREC, Programme National d’Investissement Agricole, and ‘train and equip’ security sector reform efforts). For the coming elections, will donors support external monitoring, or will they keep a more distant position, as in 2011?
Implications for WBG Programming
7. How will all these various dynamics affect WBG programming in the eastern DRC? Are there preemptive synergies or risk mitigation strategies that the WBG and individual projects might consider to best position themselves for anticipated shocks? How can project impacts be monitored and measured as operations adapt to shifting field realities?
8. There are a few sources of resilience on which WBG programs might build. Among options are these: Reinforce alliances with local and provincial government leaders by including them where possible in participatory consultations with beneficiary populations and leaders. This will give them more credibility in the eyes of their constituents and generate informal pressure for public accountability. Identify proactive and accountable civil society partners, such as churches and mosques, and inquire of other development partners (e.g., DfID, UNDP) and governance actors about viable citizen oversight relationships they have built. Recognize and build on the general conflict fatigue among civilians of all ranks in all territories, rural and urban.
9. General guidelines to handle all the external program variables align with best practices to ensure local ownership through participatory consultation and engagement with local authorities. Consciously adopting a bottom-up approach to identifying project priorities and obstacles can generate a vital sense of local ownership that will help stabilize activities during periods of political flux and insecurity. Aligning project goals and causation with demand-driven approaches and oversight is a sure way to build popular support and resilience.
10. Regular community dialogue with local authorities and popular leaders can prepare the ground for citizen oversight and public accountability—vital but nascent practices in the DRC. Projects should be explicit and realistic about their theory of change, making an empirical case and avoiding clichéd generalities (e.g., that short-term labor opportunities will directly promote peace and reconciliation). Equally important will be how a project’s design and goals survive the pressure of conflict, or political paralysis.
11. The implications for the CAS of the risks described are presented here by Strategic Objective.
12. Strategic Objective One: Increase state effectiveness and improve good governance.
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Building on the previous successes of a participatory budgeting approach, widening the scope of demand-driven improvements, and monitoring public services and financial management will make it more likely that project goals can be met by keeping public expectations of state performance high. “Participatory governance,” practiced through such means as participatory budgeting, citizen oversight, and community scorecards, also adds another layer of resilience and transparency to project delivery by effectively expanding ownership beyond public servants to citizens, the end-users of public services. Greater credibility as stewards of public finances, and social cohesion generally, are also forms of resilience that can help preserve project momentum when there is political tension and instability.
13. Strategic Objective Two: Boost competitiveness to accelerate private sector-led growth and job creation.
Improving the business and investment environment, and safeguarding these gains, goes beyond effective application of legal frameworks. It is enhanced by bottom-up processes involving elected representatives in the provincial and national assemblies and by mobilizing citizen voice in project areas. Involving communities and local authorities in planned infrastructure projects (roads, communications) ensures wider ownership of expected outcomes. Campaigns to foster public expectations can heighten accountability when citizens understand what their leaders are supposed to deliver, and thus can help sustain forward momentum. Publicity campaigns directed to farmers who can expect to benefit from greater market access via improved transport infrastructure is an obvious example of strategic communication that promotes accountability. While public pressure on participating authorities to deliver cannot prevent project disruption due to political crises, administrative paralysis, or violence, it can remind authorities that their commitments to public service should override private interest.
14. Strategic Objective Three: Improve social services delivery and increase human development indicators.
WBG investments to improve governance of the health sector, beyond the significant contributions of medical equipment and training, could similarly benefit from greater public awareness of these efforts and how they are likely to affect DRC’s health system, particularly in rural areas. Educating national and provincial elected officials on how underfunded the state health sector is can open up one avenue to increase demand for better-managed and adequately funded medical services.
Like the health sector, the education sector is a crowded space for international assistance and often suffers from poor coordination and divergent program strategies. Both ministries have been rather hesitant to take the lead through a multi-year growth strategy, waiting instead for donors to announce their intentions and then following those leads. The better governance envisioned by the WBG in these two sectors might consider strategies to build the capacity of these ministries to provide firmer leadership.
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15. Strategic Objective Four: Address fragility and conflict in the Eastern provinces.
As mentioned in the CAS, decentralization is now stalled and local resources to ensure basic public services are limited. Security institutions are still not accountable to provincial leaders and have to extract their livelihood from the communities they are supposed to protect. Numerous external actors provide life-saving medical, water, and social protection services with MONUSCO and STAREC as nominal coordinating bodies, but a satisfactory political settlement to the pervasive violence is still elusive. The recent ISSSS orientation toward community-based stabilization efforts, including the restoration of state authorities, is a salutary move toward greater resilience and local ownership of its investments; it offers the WBG an ideal geographical and political grid on which to lay its own community recovery programming. This is already happening in terms of coordination (see below) and alignment of WBG project M&E and the ISSSS/STAREC indicators in order to evaluate the aggregate impact on stabilization of the eastern provinces. The WBG can also do a great deal to build the stabilization capacity of government institutions, in close collaboration with the provincial governments and the UN.
To complement the ISSSS objective of increased stabilization and transition from humanitarian to developmental goals, WBG projects should incorporate participatory consultations to foster public ownership and generate bottom-up demand. This will encourage both more consistent, citizen-oriented services and governance and the de- escalation of violence so that development assistance can take root and flourish. It is not clear that security issues will be resolved soon.
Future Analytical and Advisory Support
16. Considering the fluctuating political and security situation, it will be critically important to carefully assess both the likelihood of further conflict, the risks, and any “peace builders” and other sources of resilience on which projects can build. These assessments should be undertaken before activities start, to support prioritization of programs, and should continue throughout the project cycle. The results can continually inform TTLs and the CMU on whether and where adaptations may be needed to deal with looming challenges or to take advantage of emerging opportunities. Projects should build these analytical activities into the work program. The Great Lakes Region Conflict Facility (GLRCF) can provide seed support for this when a project is being designed.
Partnering with UN Agencies, NGOs, and Research Initiatives
17. Investing in regular communication and coordination with aid actors across eastern DRC will help eliminate duplication, build a common understanding of a highly fluid political landscape, identify gaps, and formulate ways in which WBG activities can complement those of other actors. Regular popular dialogue and cultivating alliances with local authorities, both customary and official, are worthy investments in fostering popular ownership and resilience in uncertain times. The WBG’s relationship with the UN and some of the international programs it supports (such as the ISSSS) can also be explored through regular information-sharing and coordination, particularly at the provincial level. STAREC’s governor-
90 led ‘Comité Technique Conjointe’ can be useful in bringing WBG partners together with local and international allies to align and prioritize interventions and share information. The WBG should not rely on UN colleagues to maintain these relationships but as much as possible should build its own networks and contacts.
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Annex 7: Progress on CAS Outcomes: Detailed
CAS Strategic Objective One: Increase state effectiveness and improve good governance.
1. Outcome 1.1. Increased transparency and efficiency in the management of public finances at the central level and in the provinces of Bandundu, Katanga, Kasai Occidental, and South Kivu. The outcome is on track. For this objective, the WBG goal is to improve central and provincial management of public finances, increase the transparency and management of revenues from natural resources, and reinforce the performance of state-owned enterprises (SOEs). The government has put in place frameworks for improved PFM and public procurement, and reporting on public finances has also become more transparent and timely. The WBG supports these achievements with a mutually reinforcing portfolio of operations that emphasize supply-side governance and participatory budgeting, as well as demand-side governance in cities.
2. Outcome 1.2. Increased transparency and effectiveness in the management of financial resources from the forest, oil, and mining industries. Progress is considered on track. Some progress was made in making forest sector management more effective, and the National Assembly finally adopted the revised Petroleum Code in January 2015; it was submitted for presidential ratification in August 2015. The WBG continues to engage with the Ministry of Hydrocarbons to provide technical assistance (TA) for implementing the code after it is promulgated. The CAS outcome of having all licenses competitively auctioned by 2017 is achievable. These outcomes also benefitted from the EITI Trust Fund for mining, which supported publication of the 2012 EITI Report. The mining project, PROMINES, ended its support to the Mining Code revision when it was submitted to Parliament. It was decided not to pursue the AF, because the project was performing poorly at the time the AF was being designed; the project is expected to close in December 2015 with sizable undisbursed funds, and the government has requested an extension to address unmet priorities (geological mapping and institutional reforms).
3. Outcome 1.3. Enhanced governance of mining SOEs and increase the operational performance of other SOEs. The outcome on SOE performance is off track and needs close follow-up. There was progress on SOE debt restructuring as well as strengthening the governance of the National Electricity Company (SNEL) and the national water utility (REGIDESO); performance contracts were signed between the government and the SOEs and a service provider was recruited to help the SOEs meet the performance targets, which should make them more viable. However, with the end of IDA support to its operating costs, SNCC’s financial sustainability is now precarious. There has also been little movement in the port, air, and river administrations (SCTP, RVA, and RVF). The mining sector SOE was dropped from the list, given the limited progress and the decision to not go forward with the planned AF for PROMINES.
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CAS Strategic Objective Two: Boost competitiveness to accelerate private sector-led growth and job creation.
4. Outcome 2.1. Enhanced business environment for private sector development. Measurement of the progress of improvements to the business environment is on track. DRC has institutionalized a process headed by an inter-ministerial group overseen by the Prime Minister. Its recent achievements have brought DRC recognition as among the top 10 reformers globally. Nevertheless, DRC continues to rank low on ease of doing business (184th out of 189 countries in 2015), which has disappointed the authorities, who nonetheless greatly appreciate the recognition of the country’s reform efforts. This low ranking is partly due to a change in methodology, which now computes ranking based on a score obtained with a measurement tool called Distance to Frontier (DTF). The new methodology expands the focus in indicator sets to cover aspects of the quality of services and recent good practices in the areas covered. In that sense, the DRC ranking has risen by 2.22 percentage points compared to last year. The WBG continues to provide extensive support to investment climate/doing business reforms. Access to finance for micro and SMEs is gradually improving. However, additional reforms will be needed to further reduce risks and make financing more accessible to SMEs. Introduction of leasing, implementation of the new OHADA collateral laws and creditor rights, and establishment of a credit bureau (introduced by OHADA) are reducing the risks of lending to the private sector. New WBG funds offering longer maturities and cheaper capital are becoming available (e.g., IDA’s Microfinance Promotion Fund, IFC’s SME and microfinance credit lines, and the Line of Credit for Medium to Long Term Finance under the DRC Financial Infrastructure and Markets Project), along with venture capital funds (e.g., IFC’s SME Ventures, known in DRC as King Kuba Capital, the first venture capital fund in the country) to support startups. All were supported by the WBG during this CAS period.
Since its full re-engagement in July 2013, IFC has been scaling up its investment and advisory operations: since 2013, the IFC portfolio has grown by more than US$132 million. To help strengthen and diversify the economy, and in line with the objectives of the CAS, IFC investments have targeted finance, agribusiness, and infrastructure, as well as promoting SME development (Annex 8). Despite serious market challenges for private investments, notably the wide range of risks inherent in the fragility of the country, very extensive business development efforts, strongly supported by IFC senior management, continue to further expand IFC investment and advisory operations in strategic areas of the DRC economy. DRC will continue to be a priority country for the IFC Conflict-Affected States in Africa Initiative (CASA), which is supporting private sector growth in nine fragile countries. CASA is supported by donor partners Ireland, the Netherlands, and Norway.
5. Outcome 2.2. Improved connectivity and access to transport infrastructure. The transport outcome is on track and further progress is expected. The government has fulfilled its commitment in funding the National Road Funds. With WBG support, 1,550 km of road have been reopened and 2,200 km of priority roads maintained, providing mobility to 2.9 million people. Rehabilitation of urban roads in Kinshasa is providing 1.3 million people with access to all-season roads within a 500-meter range. Under the Multimodal Transport Project, 4,300 eligible retirees—a third of railway company SNCC’s
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permanent staff—have benefited, and work on rehabilitating railway track and rolling stock has begun. Despite substantial support for operating costs, because SNCC traffic is much lower than was expected, its financial position has not improved. This railway is the only connection for five of the 11 provinces. Without major intervention and restructuring, the viability of SNCC will be compromised, and the project’s Project Development Objective (PDO) will not be met.
6. Outcome 2.3. Improved access to quality broadband network and services at reduced cost. The ICT outcome is off track because the results of the CAB5 Project are yet to accrue. The WBG-supported Central African Backbone 5 (CAB5) Project is expected to improve ICT connectivity, but Internet prices have not yet dropped. The government is working to reform the legal and regulatory framework, including restructuring the operator and using PPPs.
7. Outcome 2.4. Increased generation of electricity and improved access to energy. The outcome is on track. Energy generation and transmission assets are being rehabilitated and investment in distribution will give an additional 260,000 people in Kinshasa access to electricity. The new electricity law opens production and distribution activities to private operators and improves rural access. A service contractor for SNEL has begun operations and a final report of the performance contract audit has been published. WBG engagements in the sector include financing of two regional energy projects and TA for startup of the Inga 3 hydropower project, a complex but potentially transformative undertaking. In recent months, momentum has been building to revive the planned activity to monitor and forecast hydro-meteorology as a way to build adaptation and resilience, using GEF resources; the Bank is liaising with the administration and the Ministry of Environment on demand for that initiative.
8. Outcome 2.5. Higher agriculture production and increased access to markets. The agricultural productivity and access outcome is on track. Yields of primary crops have improved, supported by targeted engagements from a WBG-financed project, and rehabilitation of roads has enhanced market access. New government initiatives include job creation through agro-industrial parks throughout the country.
CAS Strategic Objective Three: Improve social services delivery and increase human development indicators.
9. Outcome 3.1. Increased access to clean water and sanitation. The targets for increased access to clean water are on track. The Bank financed a master plan for sanitation for Kinshasa and Matadi, anticipating help from other partners that has yet to materialize. In future, sanitation programs for schools will be incorporated into WBG-financed interventions.
10. Outcome 3.2. Improved access to health services in targeted areas. This outcome is off track because of delays. Some targets have been achieved but not others. The WBG contributed to improvements in health outcomes through analytical work, TA, and financing of the Health Sector Rehabilitation Project, which covers 84 zones in five
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provinces. Performance-based financing for the project is yielding valuable results for scale-up through the new health project (approved FY15). There has been a 30 percent reduction in under-5 mortality (2014 DHS survey), which is partly attributable to the doubling in the utilization rate of mosquito nets. However, key indicators related to family planning (FP) and child chronic malnutrition (DRC has one of the highest levels of stunting in Africa at 43 percent) have stagnated. Unmet FP needs are at 28 percent based on the 2014 DHS, but FP commodities are not always in stock and the supply chain suffers from frequent interruptions. Not much progress was made in nutrition outcomes; although nutrition interventions are recognized as central to improving maternal and child health, they are among those least funded by donors.
11. Outcome 3.3. Improved access to basic education in targeted areas. This is on track. There have been notable improvements in access to all levels of education. Several WBG- financed operations and TA have contributed directly through strong partnerships (e.g., UN agencies, DfID, GPE). The WBG has been working to build school governance and social accountability so as sustain development of the sector.
12. Outcome 3.4. Strengthened social protection system. This outcome is off track. WBG support to social protection has largely been through TA to build capacity at the Ministry of Social Affairs and the now-closed Street Children Project in Kinshasa, as well as through engagements to realize Strategic Objective Four. WBG has supported social safety net reviews in DRC as a first step toward more rational use of available resources. While the main building blocks for a social protection strategy are now in place, the challenge will be to craft a policy and finance it adequately; that will depend on political commitment to enhance the very low financing for social protection.
CAS Strategic Objective Four: Addressing fragility and conflict in the eastern provinces
13. Outcome 4.1. Improved management of public finances and accountability in targeted conflict-affected areas. The outcome is on track. Support for mobilizing more revenue, participatory budgeting, and reporting on provincial budget execution continues through the PFMAP but needs to be built up. Enhanced risk-based supervision and building the fiduciary capacity of implementing entities are now necessary. (See also Annex 6.)
14. Outcome 4.2. Increased socioeconomic opportunities in targeted conflict-affected areas. This outcome is on track because the components of the Eastern Recovery Project and GLI are now getting underway. The Eastern Recovery Project (FY14), prepared as an emergency procedure, supports the creation of short- and medium-term employment and addresses rehabilitation needs through small community-driven projects. It also gives special attention to governance measures to improve social cohesion. Funded by a Project Preparation Advance, the project reconstructed priority community infrastructure in record time. Project areas have been selected in consultation with the provincial government and the UN to ensure they address local priorities and prevent conflict as well as support socioeconomic development. There will also be training on prioritizing conflict-sensitive projects and mediating tensions during program roll-out. At the urgent request of the government the new Goma Airport Safety Improvement Project was approved in February
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2015 with the goal of expanding connectivity to the eastern DRC. Another unanticipated project prepared to support the government’s initiative is the Reinsertion and Reintegration Project, which provides targeted assistance to ex-combatants and their dependents, communities, and vulnerable groups.
In addition to these national initiatives, WBG is also engaging through the GLI. Although not originally envisaged in the CAS, these projects advance this strategic objective. A first and critical project under the GLI is the Great Lakes Emergency Sexual and Gender Based Violence and Women’s Health Project (the SGBV project), a multi-sectoral regional program to expand services by working closely with other partners to mitigate the short- and medium-term impacts of SGBV and utilization of a package of health interventions targeted to poor and vulnerable women. Three other major programs planned as part of the GLI are the Great Lakes Integrated Agricultural program; the Great Lakes Cross-border Trade Facilitation program, a transport corridor; and the Displacement and Social Cohesion in Border Communities project (AF to the Eastern Recovery Project). All three are to be launched in FY16. Finally, the Ruzizi power project is planned for FY17 delivery. As part of the GLI, the WBG will also collect and measure indicators of regional peace and security so stabilization can be measured at a more aggregated level and linked to other programs for peace building and stabilization.
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Annex 8: IFC Engagement in the DRC
IFC has been delivering projects in all targeted strategic areas:
1. Agribusiness: In June 2014, IFC made its first agribusiness investment anywhere with a loan of US$18 million for a maize farm and mill in the former Katanga Province. IFC and Trade and Competitiveness (T&C) Global Practice recently completed mapping agribusiness opportunities, with special attention to the conflict-affected areas of eastern DRC. This will help generate a solid pipeline of bankable projects.
2. Financial markets: Since 2013, IFC has made new investments in Rawbank (US$15 million), Finca DRC (US$4 million), Advans Banque Congo (US$3 million), and Ecobank DRC (US$20 million). The IFC’s SME Ventures (operating commercially in the DRC as KingKuba Capital) is a pioneering private equity fund that provides risk capital and advice, with investment of US$100,000 to US$500,000, in health care, education, telecoms, agribusiness, logistics, transport, and hospitality. Following the success and the demonstration effect of the first US$25 million fund, mostly financed by IFC, the fund manager is currently raising US$50 million from IFC and four other institutional investors, (US$10 million equity per investor). More recently, IFC and the Central Bank of DRC signed a currency swap agreement (US$50 million) to support investments in local currency despite a heavily dollarized economy.
3. Infrastructure and manufacturing: In June 2014, the board approved two significant South-South investments to support development of two greenfield cement plants in the former Province of Bas-Congo at a total of more than US$150 million. IFC is also investing in a third cement producer in DRC. It has also made two investments at the holding level by working closely with other partners of two companies to support development of the DRC telecom sector: Helios Towers Africa (US$35 million) and Africell Holding (US$35 million). In October 2015, the board approved a US$22 million equity investment in CILU cement.
4. IFC advisory services: A number of active and planned IFC advisory service projects are designed to promote the development of SMEs by supporting greater access to credit and financial services (banking, microfinance, leasing, and private equity investments through SME Ventures), and encouraging investment climate reforms (through T&C). The World Bank's Western Growth Poles Project is incorporating the deliverables of IFC's Special Economic Zone (SEZ) Program as a component of the proposed SEZ at Maluku, near Kinshasa; IFC continues to provide staff support.
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Annex 9: Selected Indicators of Bank Portfolio Performance and Management
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Annex 10: Operations Portfolio (IBRD/IDA and Grants) IBRD/IDA* Closed Projects 90 Operations Portfolio (IBRD/IDA and Grants) As of 01/31/2016
Total Disbursed (Closed) 3,197.19 Total Disbursed (Active) 1,748.59 of which has been repaid 518.08 of which has been repaid 9.47 Total Disbursed (Active + Closed) 4,945.78
of which has been repaid 527.55 Total Undisbursed (Active + Closed)
Total Undisbursed (Active) Active Projects Total Undisbursed (Closed)DRC: Capacity for Core Public Manage Difference Between Expected and Actual Supervision Rating Original Amount in US$ Millions Last PSR Disbursements ͣ ̷ D eve l op Project ID ment Implementation Fiscal Object i v Progress IBRD IDA Grants Cancel. Undisb. Orig. Frm Rev'd Year Project Name m DRC-Enhancing Governance Capacity P092724( S S 2010 0.0 120.0 0.0 6.6 0.0 0.0 DRC:Financial Infrastructure and Mark e DRC Ag Rehab & Recovery SIL (FY10) DRC-Goma Airport Project P117382 MS S 2011 0.0 29.9 0.0 4.4 0.0 0.0
DRC-Growth w/ Gov in Mineral Sector P104041o MS MS 2008 0.0 117.0 0.0 3.7 -56.4 0.0 DRC-Multi-Modal Transp DRC -Health System Strengthening Pr P145554 MS MS 2014 0.0 30.0 0.0 20.7 2.1 0.0 DRC National Parks Rehabilitation P153085 S S 2015 0.0 52.0 0.0 49.7 5.5 0.0 DRC - Post basic education P106982 MS S 2011 0.0 50.0 0.0 32.7 35.1 7.0 DRC PublicUrban ServiceDevelopment Reform Project and Rejuv P1475559 S S 2015 0.0 220.0 0.0 205.6 0.0 0.0 DRC UrbanWestern- Statistics Water Growth Development Supply Poles Project Project Project (FY0 P092537 U MU 2010 0.0 435.0 0.0 96.8 -77.9 60.5 DRC:Eastern Strengthening Recovery Project PFMA P083813e MS MS 2014 0.0 3.0 0.0 2.1 6.3 11.7 HumanGEF Financing Development for DRC Systems PREPAN Strengt h Reinsertion and Reintegration Project P149233 S MS 2015 0.0 200.0 0.0 200.2 0.0 0.0 High Priority Reopening & Maintenanc ZR-Inga 3 and Mid-Size Hydro Dev. TA P122229 MS MS 2014 0.0 77.0 0.0 59.2 -4.6 0.0
* DisbursementOverall data is Result updated at the end of the first w eek of the month. P150148 MS MS 2016 0.0 45.0 0.0 45.1 0.0 0.0 a. Intended disbursements to date minus actual disbursements to date as projected at appraisal.P145747 S S 2014 0.0 5.0 0.0 3.1 0.0 0.0
P129713 MS MS 2013 0.0 100.0 0.0 62.4 18.9 0.0 P091092 MS S 2009 0.0 190.0 0.0 4.6 3.4 0.0 P124720 MU MU 201399 0.0 110.0 0.0 90.3 28.5 0.0 P145196 S S 2014 0.0 129.1 0.0 106.0 19.7 0.0
P127437 MS MS 2009 0.0 0.0 18.9 0.0 11.0 0.0 0.0
P101745 S S 2008 0.0 238.3 0.0 148.5 -35.1 16.1
P145965 S MS 2014 0.0 15.0 0.0 11.6 2.7 3.4
P152903 S S 2015 0.0 15.0 0.0 14.4 0.0 0.0
P131027 U U 2014 0.0 73.1 0.0 62.9 20.3 0.0
0.0 2,254.4 18.9 0.0 1,241.9 -31.5 98.7
Annex 11: IFC Committed and Disbursed Outstanding Investment Portfolio
Committed and Disbursed Outstanding Investment Portfolio As of 01/31/2016 (In USD Millions)
Committed Disbursed Outstanding
**Quasi **Quasi FY Approval Company Loan Equity Equity *GT/RM Participant Loan Equity Equity *GT/RM Participant
FY08ADVANS CONGO 1.000.920.000.000.00 1.000.920.000.000.00
FY10ADVANS CONGO 0.000.870.000.000.00 0.000.870.000.000.00
FY12ADVANS CONGO 0.000.410.000.000.00 0.000.410.000.000.00
FY16CILU 0.0022.000.000.000.00 0.000.000.000.000.00
FY14 NYUMBA YA AKIBA 30.00 0.00 0.00 0.00 0.00 23.56 0.00 0.00 0.00 0.00
FY15NYUMBA YA AKIBA 0.000.000.001.710.00 0.000.000.001.170.00
FY05PCB CONGO 0.000.450.000.000.00 0.000.450.000.000.00
FY10PCB CONGO 0.000.810.000.000.00 0.000.810.000.000.00
FY14 PPC BARNET DRC 56.10 11.20 0.00 0.00 0.00 34.67 11.20 0.00 0.00 0.00
FY14 RAWBANK 10.99 0.00 0.00 0.00 0.00 6.69 0.00 0.00 0.00 0.00
FY14 TERRA AMCC 18.00 0.00 0.00 0.00 0.00 17.00 0.00 0.00 0.00 0.00
FY16 TIGER RESOURCES 40.50 5.00 0.00 0.00 0.00 33.20 0.00 0.00 0.00 0.00 Total Portfolio: 156.59 41.66 0.00 1.71 0.00 116.12 14.66 0.00 1.17 0.00
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Annex 12: Trust Funds Summary
1. The DRC World Bank Group (WBG) Trust Fund portfolio continues to grow as Trust Funds become ever more important as a vehicle for channeling concessional development finance. The portfolio supports country-level operations, emergency responses, knowledge initiatives, advisory services, and collective action across the country on such global issues as education, public health, and environment. The Trust Funds have become an effective way for the WBG to engage in a wide range of partnerships and leverage development assistance to client countries.
2. The total allocation for the portfolio is US$320 million; more than 28 percent of this is for the Global Partnership for Education project, and about 25 percent for the environment, with some forest investment fund resources. The table below summarizes the Trust Funds portfolio in DRC.
Table A12.1: World Bank DRC Trust Funds Portfolio
TF# TF Name Project Name DRC - Education TF0A0694 ZR SUPPORT TO BASIC EDUCATION PROGRAM Sector TF0A1449 Support to Basic Ed. Education Quality Improvement Project (EQUIP) DRC Growth with TF071530 DRC:Growth with Governance in the Mineral Sector Governance TF0A0924 DGM in DRC: Forest Forest Dependent Communities Support Project DRC 2: HRITF Health System Strengthening for Better Maternal and Child Health TF0A0876 Supervision Results Project (PDSS) TF0A1025 Poverty Diagnostic Poverty Diagnostic for WASH DIME_Jobs:_DRC TF018513 DIME_Jobs_DRC Productive Opportunities Product TF018231 DRC: Strengthening Quality and Relevance of Secondary and Tertiary Education Project BioCF T2W1 DR TF018499 BCF: IBI Carbon Sink, Bateke Congo DRC REDD+ TF017958 DRC-FCPF REDD READINESS Readiness TF018146 DRC ER-PIN DRC-FCPF REDD READINESS DEMOCRATIC Health System Strengthening for Better Maternal and Child Health TF018022 REPUBLIC Results Project (PDSS) Health System Strengthening for Better Maternal and Child Health TF018375 Democratic Republic Results Project (PDSS) DRC GFF Health System Strengthening for Better Maternal and Child Health TF019315 Preparations Results Project (PDSS) TF017952 P125509-Catalytic Pr DRC Catalytic Project to Strengthen the INS
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TF# TF Name Project Name TF018380 DRC: Prevention and DRC: Prevention and Mitigation of SGBV in North and South Kivu DRC: Reinsertion TF0A0087 DRC Reinsertion and Reintegration Project and TF017728 Impact Evaluation Impact Evaluation on PSD Interventions TF017152 Contribution by the DRC-FCPF REDD READINESS TF015910 Additional Grant for DRC GEF Financing to PREPAN Project FIP – DRC TF016869 DRC Improved Forested Landscape Management Project IMPROVED DRC – Forest TF016713 Forest Dependent Communities Support Project Dependent TA for DRC– TF016318 DRC Economic Update - FY15 Salaries DRC–Public TF016682 DRC: Strengthening PFM and Accountability Financial DRC PFM and TF017290 DRC: Strengthening PFM and Accountability Accountability DRC 2–HRITF Health System Strengthening for Better Maternal and Child Health TF017459 Project Results Project (PDSS) DRC 2–HRITF Democratic Republic of Congo Impact Evaluation of Performance TF017458 Impact Based Financing DRC Catalytic TF016628 DRC Catalytic Project to Strengthen the INS Project DRC- Poverty Assessment: Inclusive Growth, Equality of TF016159 Technical Assistance Opportunity and Jobs Poverty and DRC- Poverty Assessment: Inclusive Growth, Equality of TF016972 Distribution Opportunity and Jobs Poverty and DRC- Poverty Assessment: Inclusive Growth, Equality of TF017005 Distribution Opportunity and Jobs DRC–Community TF016616 DRC Eastern Recovery Project Recovery TF017154 Support to Establish Support to Social Protection System Private Sector TF014018 Private Sector Development and Competitiveness Project Development DRC - SUPPORT TF014253 ZR SUPPORT TO BASIC EDUCATION PROGRAM TO BAS DRC - SUPPORT TF014358 ZR SUPPORT TO BASIC EDUCATION PROGRAM TO BAS Support to Basic TF014835 ZR SUPPORT TO BASIC EDUCATION PROGRAM Education DRC Growth with TF010743 DRC–Growth with Governance in the Mineral Sector Government DRC Forest TF011255 DRC Improved Forested Landscape Management Project Investment
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TF# TF Name Project Name TF099125 Preparation of DRC's DRC-FCPF REDD READINESS HIGH PRIORITY DEMOCRATIC REPUBLIC OF CONGO - High Priority TF099492 ROADS Reopening and Maintenance Project DRC HRBF TF099186 DRC Health Sector Rehabilitation Support Project Supervision TF094916 Ibi Bateke Carbon BCF - IBI Carbon Sink - Bateke DRC Rehabilitation and Participatory Management of Key Protected TF094135 Forest and Nature Co Areas in the DRC National Parks TF094033 DRC GEF Financing to PREPAN Project Network DRC: DEMOCRATIC REPUBLIC OF CONGO - High Priority TF092852 SUPERVISION Reopening and Maintenance Project HIGH PRIORITY DEMOCRATIC REPUBLIC OF CONGO - High Priority TF092300 ROADS Reopening and Maintenance Project
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