African Development Bank
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AFRICAN DEVELOPMENT BANK EMERGENCY COVID-19 RESPONSE SUPPORT PROGRAMME (PUARC) COUNTRY: Senegal APPRAISAL REPORT Date: May 2020 Team Leader: Y. ARVANITIS, Principal Governance Officer ECGF Team co-leader: M. DIOP-LY, Health and Social Sector Protection Officer AHHD Programme Team: O. BEGUY, Principal Country Economist ECCE D.E. DIOUF, Macroeconomist ECCE S. KEITA, Chief Regional Finance Management Coordinator SNFI.2 S.C. DIOP, Financial Management Operations Officer SNFI.2 W. DAKPO, Chief Regional Procurement Coordinator SNFI.1 C.D. DIOUF, Senior Procurement Operations Officer SNFI.1 M. KEI-BOGUINARD, Chief Counsel PGCL1 N. GAHUNGA, Chief Gender Officer RDGW F. FAYE-BA, Principal Disbursement Officer COSN B. OMILOLA, Manager AHHD Appraisal R. OFFEI-AWUKU, Chief Development Economist AHHD Team R. TRAORE, Socio-Economist AHHD O. STOULLIG, Principal Industrial Policy Officer PITD H. FELLAH, Principal Agronomist COSN M.S BA, Young Professional ECGF C. SARR, Financial Expert ECGF A. BELLA-CORBIN, Environmental and Social Coordinator RDGW Sector Directors: Abdoulaye COULIBALY (Governance) ECGF Martha PHIRI (Human Development): AHHD Emmanuel PINTO MOREIRA (Country Economist) ECCE Director General: Marie-Laure AKIN-OLUGBADE RDGW Deputy Director General: Serge N’GUESSAN RDGW Country Manager Adam AMOUMOUN (OIC) COSN Carina SUGDEN, Chief Governance Expert, ECGF Toussaint HOUENINVO, Chief Country Economist, SNFO Peer Khadidiatou GASSAMA, Principal Country Economist, ECCE Reviewers Mamadou KANE, Chief Irrigation & Rural Infrastructures Engineer, AHFR2 Solène ROUGEAUX, Senior Social Protection Specialist, World Bank (external review) AFRICAN DEVELOPMENT BANK SENEGAL EMERGENCY COVID-19 RESPONSE SUPPORT PROGRAMME (PUARC) Public Disclosure Authorized PROJECT APPRAISAL REPORT sure Authorized sure Authorized Public Disclo RDGW/ECGF/AHHD/ECCE/COSN/PGCL May 2020 Translated Version TABLE OF CONTENTS I. INTRODUCTION: PROPOSAL ............................................................................................... 1 II. CONTEXT ................................................................................................................................... 1 2.1 Economic, Governance and Social Context .................................................................................. 1 III. JUSTIFICATION AND KEY ELEMENTS ............................................................................. 2 3.1 Justification ................................................................................................................................... 2 3.2 Collaboration and Coordination with other Partners ..................................................................... 2 3.3 Compliance with Eligibility Criteria ............................................................................................. 3 IV. PROPOSED PROGRAMME ..................................................................................................... 3 4.1 Country Programme Goal and Objective ...................................................................................... 3 4.2 Programme content........................................................................................................................ 3 4.3 Financing Needs and Mechanisms ................................................................................................ 5 4.4 Programme Beneficiaries .............................................................................................................. 5 4.5 Prior Actions.................................................................................................................................. 5 4.6 Policy Dialogue ............................................................................................................................. 5 4.7 Impact in Terms of Gender, Poverty and on Vulnerable Groups .................................................. 6 V. IMPLEMENTATION AND LEGAL DOCUMENTS ............................................................. 6 5.1 Implementation, Monitoring and Evaluation ................................................................................ 6 5.2 Financial Management, Procurement and Disbursement .............................................................. 6 5.3 Legal Documents ........................................................................................................................... 7 5.4 Compliance with Bank Group Policies ......................................................................................... 7 5.5 Risk Management .......................................................................................................................... 7 VI. RECOMMENDATION .............................................................................................................. 8 ANNEX 1: RESULTS-BASED LOGICAL FRAMEWORK .............................................................. I ANNEX 2: ELIGIBILITY CRITERIA ................................................................................................ II ANNEX 3: GOVERNMENT POLICY LETTER ............................................................................. IV ANNEX 4: ENVIRONMENTAL AND SOCIAL COMPLIANCE NOTE (ESCON) .................. IVI CURRENCY EQUIVALENTS May 2020 Senegalese Currency = FCFA UA 1 = CFAF 824.112 UA 1 = USD 1.366 UA 1 = EUR 1.256 WEIGHTS AND MEASURES 1 tonne = 2204 pounds (lbs) 1 kilogramme (kg) = 2.200 lbs 1 metre (m) = 3.28 feet (ft) 1 millimetre (mm) = 0.03937 inch (“) 1 kilometre (km) = 0.62 mile 1 hectare (ha) = 2.471 acres FISCAL YEAR January - December i ACRONYMS AND ABBREVIATIONS ACRONYM DESCRIPTION AFD French Development Agency ARMP Public Procurement Regulatory Authority BCEAO Central Bank of West African States CENTIF National Unit for the Processing of Financial Information CFRA Country Fiduciary Risk Assessment CNGE National Epidemic Management Committee COSN Senegal Field Office CRBS Crisis Response Budget Support ESP Emerging Senegal Plan ETC Epidemic Treatment Centres FDI foreign direct investment GDP gross domestic product GMS Gender Marker System IGE General State Inspectorate IIAG Annual Ibrahim Index of African Governance IMF International Monetary Fund ISS Integrated Safeguards System MEPC Ministry of the Economy, Planning and Cooperation MFB Ministry of Finance and the Budget OFNAC National Office for Combating Fraud and Corruption PAIMRAI Institutional Support Project for Resource Mobilization and Investment Attractiveness PAMRER Resource Mobilization and Reform Effectiveness Support Programme PAUVS Senegal Virtual University Support Project PFM Public Finance Management PMF Public Procurement Code PNBSF National Family Security Grants Program PRES Economic and Social Response Plan PSSD Digital Health Strategic Plan PUARC Emergency COVID-19 Response Support Programme RCF Rapid Credit Facility RFI Rapid Financing Instrument RNU National Single Registry SENELEC Electricity Corporation of Senegal SME small and medium-sized enterprises TFP technical and financial partners UHC universal health coverage VAT Value Added Tax WAEMU West African Economic and Monetary Union ii PROGRAMME INFORMATION BENEFICIARY : Republic of Senegal SECTOR : Multi-sector INSTRUMENT : Program Based Operation (PBO) PBO DESIGN TYPE : Crisis Response Budget Support EXECUTING AGENCY: Ministry of Finance (MFB) 2020 financing plan in budget support Source Amounts (2020) AfDB EUR 88 000 000* World Bank Amount to be confirmed European Union EUR 150,000,000 IMF USD 442,000,000 * Or the equivalent of UA 70,000,000 AfDB Financing Information Loan currency: Euro Type of Loan: Fully flexible loan Maturity: To be determined (maximum period of 25 years) Grace period: To be determined (maximum period of 8 years) Weighted average maturity**: To be determined (depending on amortization profile) Repayment: Half-yearly instalments at the end of the grace period Interest rate: Base rate + Funding margin + Lending spread + Maturity premium This interest rate must be greater than or equal to zero. Base rate: Floating (6-month EURIBOR reset on 1 February and 1 August or any other acceptable rate) A free option is available to set the base rate Funding margin The Bank’s funding margin revised every 1st January and 1st July and applied every 1st February and 1st August with the base rate Lending spread: 80 base points (8.8%) Maturity Premium: To be determined: 0% if weighted average maturity <= 12.75 years 0.10% if 12.75 years < weighted average maturity <= 15 years 0.20% if weighted average maturity > 15 years Front-end fees: 0.25 % of loan amount Commitment fee: 0.25 % per year of non-disbursed amount Starts to accrue 60 days after the date of signature of the loan agreement and is payable on the set interest payment dates. iii Base rate conversion option:* Besides the free base rate conversion option, there is the possibility for the borrower to revert to the base rate or reset the rate for all or part of the disbursed loan amount. Transaction fees are payable Rate cap or collar option*: The borrower has the possibility to cap or collar the base rate for all or part of the disbursed loan amount. Transaction fees are payable Loan currency conversion The borrower may change the currency of all or part of its option*: disbursed or undisbursed loan to another loan currency of the Bank. Transaction fees are payable Timeframe – Main Milestones (projected) Activities Dates Appraisal April 2020 Approval May 2020 Effectiveness May 2020 Disbursement May 2020 First supervision September 2020 Completion