Ministry of Foreign Affairs

Danida

Danish Embassy Ouagadougou

CONCEPT NOTE

Country Programme 2016-2020, Burkina Faso

14th May 2014

Contents I. Introduction ...... 1 II. Conclusions from Preparatory Analyses...... 1 III. Strategic Considerations and Justification for the Country Programme ...... 3 IV. Thematic Programme Objectives and Summaries ...... 5 V. Preliminary Results Framework and Monitoring Mechanisms ...... 8 VI. Preliminary Assessment of Risk ...... 9 VII. Indicative Budget and Unallocated Funds (2016-2020) ...... 9 Annexes

 Process Action Plan  Assessment according to the 5 budget principles  HRBA / Gender Screening Note  Climate Change and Green Growth Screening Note  Results Framework  Risk Management Matrix

1

I. Introduction Strategic questions to guide the discussion a) The current government development strategy (SCADD) stresses private sector led economic growth. Equity, poverty and environmental sustainability in the short term are also reflected in the strategy but do not have the same weight particularly in the implementation. The government has chosen this strategy because previous poverty reduction strategies had failed to generate sufficient growth. The Country Programme will support this overall growth priority but also apply a broader human rights based approach (HRBA), e.g. in the water and governance sectors but also more specifically by choosing value chain in the agricultural growth programme that targets vulnerable groups and by focusing on security concerns in marginal areas. However, some interventions, such as the support to formal sector agricultural entities and the Development Contract, address poverty issues only indirectly. b) Burkina Faso has chosen to engage strongly in the Universal Periodic Review (UPR) process of the United Nation Human Rights Council. However, despite ratification of both international and regional HR instruments, the challenge is the low level of implementation in practice. Danish support will thus initially focus on strengthening institutional structures within both government and civil society, especially targeting women’s rights, access to justice, and peace and stability in order to arrive at some implementation of economic, social and cultural rights. c) Burkina Faso has introduced successful financial reforms in conformity with UEMOA fiscal management guidelines. Thus despite the fiduciary risks that still persist, the programme will utilize general budget support, sector budget support and various basket arrangements. Specific measures will also be taken to reduce the administrative burden, including outsourcing management and capacity building (but not the policy dialogue) for CSO support. d) The current agricultural programme runs until 2018. The intention is to review and extend the programme in 2017-2018 allowing it to run until 2020 and thus to be time-wise aligned with the other thematic programmes. This extension will require additional financing of 100 million DKK, which has been included as unallocated.

The programme committee is invited to comment on these issues.

Summary of conclusions

The Country Programme will be designed to support the Burkinabè people’s right to a better life. Strengthening respect, protection and promotion of human rights are key elements in the governance theme. Equity in access to water and sanitation and a sustainable and concerted management of water resources, all based on identification of rights-holders and duty-bearers respectively, are emphasized in the water and sanitation theme. The theme for economic growth in the agricultural sector targets creation of jobs via non-financial services as well as loans and guarantees to entrepreneurship and the private agricultural sector operators. A development contract with general budget support combined with accompanying measures to support public finance management reforms, fight against corruption and enhanced budget transparency aims at ensuring sustainable and inclusive economic growth leading to increase of revenues and enhancement of livelihood. High-level policy dialogue takes place regularly between the Troika representing development partners and the Prime Minister and Minister of Economy and Finance.

II. Conclusions from Preparatory Analyses Despite experiencing from 2000 to 2010 an annual increase in GDP of approximately 5%, and even higher the last couple of years, Burkina Faso remains number 183 out of 187 in the

2

Human Development Index. Prospects for achieving the MDGs are only realistic for urban water supply. Up to date poverty figures are not available but in 2009, 46.7 pct. of the population lived below the national poverty level of 935 DKK/year. A Gini coefficient of 0.398 (2009) is reflecting inequality below African average and is among the lowest in West Africa. However, there is little evidence that the economic growth experienced during the last decade has reduced poverty and inequality significantly.

Burkina Faso’s post-colonial history has been dominated by military coups. However, in 1978 one president gained power via the democratic election. Over the last 27 years the regime of Blaise Compaore has held several elections deemed to be largely free and fair, democratic institutions have been strengthened and respect for human and democratic rights has improved. Burkina Faso has developed into a bastion of peace, stability and relative freedom in a region otherwise marked by conflict. It has undertaken several mediation efforts reflecting a clear appreciation that the country can only thrive if regional stability is enhanced.

It has not always been easy to maintain peace and stability and to insure continued progress. Serious challenges remain: The pressure for a peaceful and constitutional transition is steadily increasing, the urbanisation rate is growing rapidly, youth unemployment remains high and rising living costs increase social tension. Conflict, insurgency and radicalisation in neighbouring countries threaten to spill over the border.

Burkina Faso has signed and ratified most international and regional human rights conventions including the African Charter on Human and Peoples Rights as one of the first countries in Africa. However, the mechanisms to oversee and guarantee protection and respect for those rights in accordance with international principles still remain very weak. The weaknesses can be seen in the lack of independence of the judiciary, in the national human rights commission, the Ombudsman, the constitutional court, and the auditor general. In June 2011, the MEF issued guidelines aiming at integrating human rights into the sector policies, but these guidelines have not been implemented so far.

The population of Burkina Faso counted 17.5 million in 2012 and is projected to increase to 29.1 million in 2030. The urban population growth far exceeds the rural one due to migration from the rural areas towards the cities. 66% of the population is under 25 years, and 51% of the population aged between 15 and 29 years are without any employment.

The SCADD (Stratégie de Croissance Accélérée de Développement Durable) 2010-2015, which has replaced the former poverty reduction strategy, emphasizes economic growth, social protection and governance. The strategy reflects the determination of the government to pursue higher growth rates through investments in the private sector. Financial policies, a conducive business environment, good governance and infrastructure investments are seen as key instruments.

Two decades of cooperation between Burkina Faso and Denmark were formalised in 1993 when Burkina Faso became partner country to Denmark. Even though Burkina Faso is still a poor country, millions of people have gained access to energy, water, sanitation, education, and infrastructure, as well as a share of an increased agricultural production, among others thanks to Danish development cooperation. Public institutions and civil society organisations have been strengthened in all areas, including human rights, decentralisation and gender equality.

Within the framework of the SCADD, ministries have established sector-based policies, which combine strategies and budgeted action plans. The Economy and Finance Sector Policy (POSEF), adopted by the Government in June 2011, is the reference framework for implementing the reforms as regards economy and finance. Public access to budget information is mixed. Whilst public access to information on public contracts is very good,

3

direct access to basic information on the budget is either too limited or too late. The draft budget submitted to Parliament in October is put online as well as the budget execution, but the information is not available on time. Burkina Faso is 83rd in Transparency International’s ranking and thus one of the least corrupt countries on the continent (10th in Africa). However, corruption and impunity continue to affect all sectors of the society and though there are several revelations of cases of corruption, these cases often go unpunished without further explanation. Experience gained from several years of cooperation provides important lessons for the new programme.

In the previous phase of the Danish support to the agricultural sector, it was found that the programme, although benefiting a large number of individual small-scale farmers, would not have any significant impact in terms of economic growth, job creation and development of the selected value chains. Projects were too small and too targeted at subsistence farmers with limited growth potential. It was also found that transaction costs related to the micro-projects were extremely high.

Denmark has supported the national programmes for integrated water resources management (IWRM) and water supply and sanitation (WSS) since their start in 2003 and 2007 respectively. During the last two decades, good progress has been achieved, among others with support from Denmark, in developing the legal, regulatory and institutional framework for water management, since 1996.

Since 2008, Danish support to the governance sector has focused on political governance and the country’s democratisation process through support to decentralisation and general institutional support to human rights and gender equality promotion partnering with both state and civil society organisations. Significant results have been achieved in terms of promoting respect for human rights and developing the legal and regulatory framework, and good relations have been established with decision makers. In some cases it has been difficult to turn policies into action. The overall decentralisation reform has not moved very far (due to resistance in the bureaucracy) and the ministry of gender has failed to move beyond its advocacy functions.

III. Strategic Considerations and Justification for the Country Programme Burkina Faso is experiencing a significant economic growth, has managed to remain a bastion of peace and stability and avoided becoming a fragile state as most of its neighbours. Nevertheless, the country will still not achieve most the MDGs by 2015 and is still far from moving towards a “middle-income country” level. A broad based development partnership with a long term perspective is required to secure that Burkina Faso continues and accelerates its development efforts.

Danish development assistance to Burkina Faso will support the objectives established in the Country Policy Paper i.e. i) poverty reduction; ii) a stronger rights-based and inclusive governance framework; and iii) economic growth and employment in particular for youth and women.

The government’s development strategy (SCADD) has a clear focus on an accelerated private sector led economic growth. This strategic choice is based on a desire to achieve significant higher growth rates that could lift Burkina Faso out of it status as one of the world’s poorest countries. The country programme will support this objective. The majority of the population derive their livelihood from agriculture. The growth potential is primarily found in this sector, which is also contributing to food security. Service and construction sectors are still weakly developed. Though the SCADD also mentions poverty alleviation, reduction of inequalities and sustainable development, it is clear that these aspects have a lower priority in

4

the implementation of the strategy. Economic growth without equity, without social inclusion and without an equitable redistribution of resources will not reduce poverty. In order to strengthen these aspects, the Country Programme will apply a Human Rights Based Approach (HRBA) in all thematic programmes. The development engagements in the Water & Sanitation theme are now emphasising equity in access to services and transparency and accountability on the part of the duty bearers. The HRBA approach will reintroduce the implication of the rights holders – an aspect which had been neglected by the Ministry of Water since 2010. In the Governance theme, the Development Engagements are formulated in accordance with the HRBA. As to the theme Economic Growth in Agriculture, indicators with gender disaggregated data are being introduced, and to a high degree, the choice of value chains has been guided by a view to reach vulnerable groups. The possibility of pursuing a more consistent integration of the HRBA into this theme will only be considered during a later reformulation.

In 2013, Burkina Faso accepted 135 of the 169 recommendations from the Universal Periodic Review (UPR), most of them concerning women’s rights, ensuring independence of the judiciary, efforts to eliminate regional disparities in access to safe drinking water, and realization of the right to water and sanitation1. In the present Country Programme 2016-2020 the governance theme in particular will strengthen human rights in Burkina Faso based on the UPR process. Despite the Government commitment to follow up on most of the recommendations, ineffective implementation of economic, social and cultural rights is the main obstacle for reaching acceptable living standards for the poor and the vulnerable. The overall aim of the governance theme will thus be to assist Burkina Faso in overcoming the gap between “principles” and “practice”.

Given Burkina Faso’s geographical location, it is obvious that security constitutes a major threat to a peaceful and successful development of the country. The Country Programme will thus seek to help securing continued peace and stability. Based on the comparative strength of the Danish resource base, emphasis will be on preventing the development of violent extremism through support for inter alia community policing and civil society but also through provision of economic opportunities and basic services in marginal areas. These activities will be coordinated with the regional implementation of the Danish Sahel programme and other activities in the region.

Situated at the southern edge of the Sahara with low and highly fluctuating precipitation, Burkina Faso is environmentally extremely vulnerable and susceptible to frequent natural calamities. The main source of livelihood, agriculture, is dependent on sufficient water resources. Presently all agricultural stakeholders can extract any amount of water and pollute with pesticides and fertilizers, without paying extraction and pollution fees. The water resources are further destroyed by the mining industry. Proper management of water resources is the foundation for life in this arid/semi-arid region.

For reasons of effectiveness and efficiency, the Country Programme will continue to channel funds to general budget support, sector budget support (water sector and possibly others) and various basket funds. For sustainability and impact reasons, equity to services for the rights-holders and transparency and accountability on the part of the duty bearers will be emphasized. In line with the HRBA approach, better results will be achieved in providing sanitation by using Civil Society Organisations (CSOs).

Another important consideration guiding the design of the Country Programme has been the Embassy’s capacity to manage two country programmes (Burkina Faso and Niger) at the same time without further staff resources.

1 United Nations General Assembly: Human Rights Council, Draft report of the Working Group on the UPR, Burkina Faso, May 2013.

5

General budget support will remain a key feature of the Country Programme. This is in accordance with the decision of the EU that after lengthy deliberations found that a governance contract including such support would make sense for Burkina Faso because the country was sufficiently open and responsive to reform needs. Denmark will enter into a development contract supported by accompanying measures aiming at fighting corruption and ensuring transparency in public finances.

Denmark has been engaged in the chosen sectors for a long period. The formulation of new Danish policies, such as the “The Right to a Better Life” and new approaches such as the HRBA, has led to strategic shifts in each programme.

IV. Thematic Programme Objectives and Summaries

Governance The Governance thematic programme will aim at strengthening respect, protection and promotion of human rights. The main human rights analyses of Burkina Faso have shown that despite Burkina Faso’s overwhelming ratification of international and regional instruments, implementation of human rights is persistently weak. This leads to inadequate protection of the Bukinabè’s civil, political, economic, social and cultural rights - in particular, for marginalised groups.

Since its creation in 2002, the Ministry of Human Rights and Civil Protection, as a key duty- bearer, has had a long-standing cooperation with Danida. Presently, this ministry is overseeing and coordinating the implementation of Burkina Faso’s 2nd and 3rd Cycle UPR recommendations. The Danish support to this ministry will focus on facilitating the implementation of human rights commitments based on the ministry’s programme- budget and its mandate to oversee implementation of the recommendations across government institutions. Whilst the Danish support will cover all UPR recommendations, special attention will be given to the recommendations related to the principles of non-discrimination and participation and inclusion that are of particular relevance to the other thematic programmes. Most relevant for the governance thematic programme are of course the UPR recommendations related to women’s rights, but also those related to the independence of the judiciary and the trust between the judiciary, the police force and the citizens. Finally, UPR recommendations related to rights-holders’ access to justice, as well as those related to duty- bearers’ obligations with regard to transparency and accountability will be considered during the formulation process.

The Ministry of Justice is a new partner to Danida, though an essential and strategic duty- bearer within a HRBA framework. The support is expected to focus on strengthening the independence of the judiciary and access to justice based on the Ministry’s triennial action plan (2014-2016). These are two strategic and essential areas of intervention for an effective implementation of a HRBA. For citizens, especially women, the youth and marginalised groups to access justice, trust in the independence of the judiciary is essential. The latest cases (e.g. the non-lieu in the Norbert Zongo case) have done much damage to the public’s trust in the judiciary.

The support to the Ministry of Territorial Administration and Security, another strategic duty- bearer, will build on previous policy initiatives and support within countering violent extremism (CVE), and is expected to focus on reinforcing the capacity of the police to protect all citizens without discrimination based on the Ministry’s “Programme 2014-2019 to implement the National Security Strategy (PASSI)”. Focus is on local police stations’ capacity to deliver human rights protection services, to adequately respond and attend to human rights complaints presented to them. During the Transition Phase activities will start in three

6

marginal regions with high poverty incidence rates, which have been affected by (violent) conflicts and experienced the lowest rates on trust citizen-police. The Country Programme will continue efforts to restore trust between the citizens and the police force.

The selected Civil Society Organisations, representing rights-holders’ interests, have been long-standing partners to Danida and are hailed amongst the key drivers of changes in the field of governance and human rights in Burkina Faso. Other CSOs will also be selected through a gender-based basket fund focusing on women’s human rights. The focus of this support will be to promote respect for Human Rights through strong, vocal and independent civil society organisations based on their respective action plans 2014/15 – 2019/20. The focus will be on strengthening the capacity of CSOs to become increasingly autonomous, financially diversified, and able to promote human rights, women’s rights in particular and civilian engagement. Further, and in line with recommendations from “Countering Violent Extremism and Promoting Community Engagement in West Africa and the Sahel - An Action Agenda, July 2013”, the capacities of CSOs to develop activities that will counter violent extremism (CVE) will also be reinforced. In this way, the support to CSOs will be expected to reinforce organizations that represent rights-holders interests whilst also holding duty-bearers accountable, both within the Governance thematic programme and across the Country Programme.

Support for the decentralisation process will not be part of the new thematic programme. Other larger donors – primarily World Bank, EU, and UNDP – will support the process while Denmark will continue its ongoing work at sector level with various local institutions in the water and agricultural sectors.

Water and Sanitation

The objective of the support to the water and sanitation sector is to ensure a sustainable management of water resources and an equitable access to water and sanitation. Although a new water policy and national programmes for integrated water resources management (IWRM) and drinking water and sanitation (WSS) for the period beyond 2015 are currently under preparation, discussions with government indicate that the overall strategic orientation of the new Danish programme is in line with government priorities. The new programme will have an increased focus on and provide more funding for the full-scale implementation of basin-based water resources management. There is a growing concern about the increased pressure on both water quantities and quality mainly as a result of the boom in mining activities and intensive farming combined with a significant population growth It is recognised that there is a need for responses to solving local water conflicts and to ensuring an equitable distribution of water resources for both human consumption and productive purposes. It is also recognised that IWRM constitutes an appropriate tool to address consequences of climate change.

Denmark has been supporting the water and sanitation sector for many years but the new programme represents a paradigm shift in Danish support in several respects, however without compromising the substantial results achieved in terms of alignment in the sector. Although substantial progress has been achieved in terms of ensuring enhanced water supply, equity (being one of the performance indicators in the national programme) has only increased marginally and very low water supply coverage levels are observed in a large number of communes. Therefore Danish support to water supply and sanitation delivery will aim at enhancing equity in access, thus specifically targeting underserved areas with endemic poverty. With a view to ensuring both sustainability of investments and enhanced effectiveness in service delivery, only piped water technology will be considered, e.g. multi-village systems based on high yielding boreholes or connected to existing water pipelines. This offers opportunities for large-scale operation and job creation through Public Private Partnerships.

7

Access to sanitation, being an important factor in enhancing health conditions, has not increased substantially during many years and it is obvious that government strategies for promotion of sanitation have fallen short. The sector ministry is currently in a process of reconsidering its policy and strategies in this respect. The Danish support to sanitation will thus be channelled through local NGOs following a model utilised successfully by the EU since 2010.

Water supply services has so far been provided on a demand-driven basis, thereby not consistently taking into consideration poor and otherwise marginalised segments of the population. The introduction of a human rights based approach thus requires the development of new operational approaches and training and sensitisation of both main duty bearers (Ministry of Water and Sanitation, the urban water & sanitation provider ONEA, communes) and rights holders.

The programme will consist of four development engagements: a. Support to IWRM (Ministry of Water and Sanitation) through a basket fund; b. Support to enhancement of equity in water supply coverage through sector budget support within the national WSS programme targeted at the semi-public institution ONEA); c. Support to sanitation though a national or regional NGO, and d. Development and application of new approaches to water supply delivery based on HRBA through an international or regional NGO collaborating with national CSOs and NGOs and with main duty bearers. Technical assistance to IWRM and to water supply implementation will be foreseen.

Economic Growth in the Agricultural Sector

The objective of the support to Economic Growth in the Agricultural Sector is to contribute to growth in agricultural productivity, in added value and income with a view to achieving an increase in national economic growth and reduction of poverty. This programme (2013-2018) was appraised in 2012 (thus long before the HRBA guidelines), and started in July 2013. Though efforts were made to include value chains relevant to marginal groups (especially in the shea nut, the Gum Arabic and the cow pea value chains) and security challenged areas, this led to a stronger focus on the formal sector and less direct interventions for the very poorest. This was specifically endorsed by the Danida Board. The possibility for strengthening the HRBA will be considered in connection with a review foreseen in 2017. In accordance with the SCADD, the programme primarily targets small- and medium-scale private enterprises and farmers associations in five value chains with an economic and employment potential in general terms and with a potential for economic empowerment of women more specifically. The programme also comprises support to public institutions (central government and local governments) responsible for creating an enabling environment for private sector operators in areas such as standards/norms, sub-sector strategies, access to markets and establishment of public facilities (butcheries, vaccination parks, access roads etc.).

Access for private small-scale enterprises to advice and expertise with a view to developing their enterprises remains very limited. Therefore the programme supports the establishment of a facility in five regions that provides on-demand consultancy services (business plans, market analyses, feasibility studies, etc.) for enterprises within the selected value chains. National policies and strategies do not address green growth in particular. However, attention is given in the programme to provide assistance for the identification of green investments. In addition, a facility has also been established to provide funding of green investments on a grant basis. Small- and medium scale enterprises face difficulties in accessing medium/long term credits thus limiting their opportunities to make larger investments. Through collaboration with two commercial banks and a guarantee institution, the programme aims at enhancing access to medium/long term credit. Women have limited access to financial services due to, among others, low education levels and a land tenure system excluding women. Therefore, a particular focus area for the programme is the promotion of women’s access to medium-/long

8

term credit and loan guarantees, and gender disaggregated indicators are being introduced in order to apply part of the HRBA.

The programme consists of three development engagements of which one is managed by a private institution and the two others by the Ministry of Economy & Finance and the Ministry of Agriculture, respectively. Due to the number of partners involved a steering committee has been established for the overall management of the programme.

To bring the programme time-wise in phase with the other thematic programmes, a programme extension up to 2020 is foreseen. An amount of DKK 100 million has been earmarked as unallocated for this purpose. Formulation of the extension phase will start in 2017. Appraisal of the extension is scheduled for 2018. This formulation constitutes an opportunity to review key elements such the HRBA and the possible introduction of sector budget support.

Development Contract

Strategically the development contract will target poverty reduction, equality in access to social services and enhanced effectiveness and transparency of public policies and PFM.

In conformity with the CGAB (Cadre Général d’organisation des Appuis Budgétaires), being the joint framework for all development partners (DPs) providing GBS, releases of the 80% fixed tranche will be linked to the fulfilment of three conditions as follows: a. The implementation of a stable macro-economic policy positively confirmed by the IMF; b. A positive assessment by development partners of the annual implementation of the SCADD; and c. A positive assessment by DPs of the quality of PFM based on the annual review of the implementation of the POSEF (Politique Sectorielle du Ministère de l’Economie et des Finances). The variable 20% tranche will be linked to progress in PFM with a special focus on poverty and equity issues in order to promote HRBA.

The general budget support will be accompanied by measures aiming at enhancing public financial management, reduction of fiduciary risks and support to institutional development. These measures will be identified during the formulation of the development contract. Furthermore, the support to strengthening of CSOs acting as watchdogs on budget transparency and on corruption will be continued. Encouraging results have been achieved so far by REN-LAC and CIFOEB. For administrative reasons, the support to these two CSOs (totalling 8 million DKK) will be channelled through the Governance thematic programme.

V. Preliminary Results Framework and Monitoring Mechanisms The objectives included in the Results Framework are in line with Danish policy as expressed in the Policy Paper for Burkina Faso and have been discussed with the relevant partner ministries and CSOs. To the extent possible, the indicators selected in the three themes plus the development contract are taken from the partner ministries own plans and the SCADD. Especially the rolling 5-year SCADD matrix is used for output indicators, as Government is already monitoring these. The challenge has been the baseline data. As to the governance theme, the Transition Programme scheduled to start in July 2014 will undertake some studies, which will provide baseline data to be used in the Country Programme. The HRBA as basis for all sector activities will be given special attention in e.g. the Water & Sanitation theme, where a separate monitoring and reporting system must be established by the NGO to be in charge of one of the development engagements. The monitoring related to Economic Growth in Agriculture is primarily built on mechanisms currently being developed by the banks and the institution providing advice to SMEs. Monitoring at outcome level will be based on national annual surveys.

9

VI. Preliminary Assessment of Risk Despite a steady increase of 5% in average in real GDP from 2000 to 2010, poverty has not decreased significantly over this period and creation of new jobs has moved slowly. It thus seems unrealistic that the poverty reduction objective set out in the SCADD for 2015 will be achieved (reduction from 46.7% in 2009 to 35% in 2015). Although traditionally known as a politically and socially stable country, Burkina Faso has experienced an increase in number of social demonstrations in recent years. Unrest might be further fuelled in years to come if the President attempts to revise the Constitution in order to remain in power after elections in 2015.

Although Burkina Faso ranks as the tenth least corrupt country among African countries (Transparency International), corruption and impunity affect most sectors. Especially police agencies and the judiciary system are seen as corrupt. Parliament has rejected an anti- corruption law presented by Government in 2013. A close dialogue will be maintained with Government on this issue and continued support to CSOs monitoring corruption will be provided.

A number of programmatic and institutional risks have been identified at the thematic programme level. These include e.g. limited partner capacity to implement the governance support, equity in service delivery not sufficiently prioritised in the water and sanitation programme, activities not effectively enhancing livelihood of poorest rural population in the agricultural programme and certain areas of PFM, especially in terms of internal and external control will continue to experience inadequate priority and resources.

VII. Indicative Budget and Unallocated Funds (2016-2020)

Country Programme Burkina Faso - Denmark 2016 - 2020 Million DKK Total million DKK Thematic Programme: Good Governance and Human Rights 173 Development Engagement: Human Rights Commitments 17 Development Engagement: Enhancement of Human Rights 31 Development Engagement: Protection of Human Rights 31 Development Engagement: Promotion of Human Rights 84 Contingencies 3 Reviews, audits, etc. 7

Thematic Programme: Water and Sanitation 370 Development Engagement: Sustainable and concerted Management of Water Resources 90 Development Engagement: Enhancement of Equity in Access to drinking Water 200 Development Engagement: Promotion of enhanced Hygiene and Sanitation 45 Development Engagement: Mainstreaming of HRBA Principles into Sector Activities 11 Contingencies 12 Reviews, audits, etc. 12

Thematic Programme: Economic Growth in the Agricultural Sector 480 Development Engagement: Private Agricultural Sector Support - non financial Support 62 Development Engagement: Private Agricultural Sector Support - Investment Support 65,7 Development Engagement: Enhancement of Enabling Environment in Agriculture 161 Technical Assistance 54,6 Reviews, Audits, etc. 20 Contingencies 16,7 Unallocated Funds for new Development Engagements to be spent in 2019 and 2020 100

Thematic Programme: Development Contract 322 Development Engagement: General Budget Support and Support to PFM Reforms 322

Total amount of Country Programme 1345 of which 380 million DKK were committed in 2012 for the Agriculture Programme

Annexe 1

PROCESS ACTION PLAN

Country programme 2016-2020 Denmark-Burkina Faso

Actions and activities Date Identification of programme November 2013 – 31 March 2014 Drafting by Embassy of Concept Note et annexes, elaboration of 1 April – 8 May 2014 TOR for the formulation of the Development Engagements and Agreements within the framework of each theme, contracting of consultants etc. Deadline for programme officers to provide input to the Concept 25 April 2014 Note and Annexes Finalisation of the Concept Note et Annexes 28 April – 12 May 2014 Submission of Concept Note + Annexes to Copenhagen 15 May 2014 Presentation of Concept Note to programme Committee 11 June 2014 Formulation of Development Engagements and their annexes, of 12 June – Agreements, and of the Country Programme 14 November 2014 Elaboration of draft TOR for the appraisal team 1-14 November 2014 Draft Appraisal TOR plus all documentation submitted to 17 November 2014 TAS/Copenhagen Appraisal of Country Programme conducted by Mr. Torben January 2015 Nilsson/TAS (exact dates not yet available) End of appraisal process March 2015 Country Programme document and documentation submitted in May 2015 final version to KVA/Copenhagen Presentation of programme to External Danida Committee for June 2015 approval Approval by the Minister September 2015 Signature of the country programme agreement and of October – December contracts/development engagement agreements 2015

Annex 2, page 1

Assessment according to the five budget support principles 1. General Budget Support

Indicators used Assessment of the 5 criteria Risk Assessment and Mitigation Measures and sources Preamble: Denmark currently provides general budget support (GBS) (Appui Budgétaire Général (ABG)) to Burkina Faso, covering the period 2012-2015, of an initial amount of DKK 230 million. Burkina Faso is one of the few countries benefitting from GBS, due to, on the one hand, significant budgetary and macroeconomic needs, and, on the other hand, satisfaction of the prerequisites to qualify for budget support. Denmark provides currently also sector budget support to the water and sanitation sector. Thus, Burkina Faso’s experience as regards budget support is proven and the dialogue with the Government in the framework of the implementation of this aid modality is good.

1. Fundamental values Fundamental values, encompassing a minimum respect for human rights, pluralistic democracy and rule of law, including independence of the judiciary.

Sources and Respect for democratic principles and the rule of law: Indicators: Presidential and general elections are held regularly in Elections: The introduction of a new voting Burkina Faso. In 2010, presidential elections were held within system (biometric) which is supposed to be more  SCADD the time prescribed by the Constitution. There was a low rate reliable to avoid fraud, may further reduce the reviews number of voters as it requires that every citizen  SCADD of registration on the electoral roll and a high abstention rate. has an ID to get registered - which is not obvious matrix The president got more than 80% of the votes whereas the  NIP two opposition candidates got 6% and 8% respectively. for a majority of the population. document Absence of opposition representatives was noted in some th To ascertain that people are actually more 11 EDF polling stations.  POSEF involved in elections and go to the polls, the  AM/MCS During the general elections in 2002, President Blaise government must facilitate access to the 2014 Compaoré’s party, the CDP obtained a narrow majority of 57 appropriate authorities as regards issuing identity Education deputies out of 111. The 54 opposition deputies belonged to documents, possibly by setting up mobile offices

12 different parties. In 2006, the CDP was the winner of most to get closer to citizens. Awareness campaigns on of the local elections. the right and duty to vote should accompany this action. It should also be ensured that polling

Annex 2, page 2

At the general elections of 2007, the CDP won with an stations are supervised by representatives of the absolute majority of 73 deputies out of 111. current Government and the Opposition in order to reduce any suspicion of fraud or abuse. Coupled elections (general and local) were held on December 9, 2012 and their preparation occasioned a substantial and positive collaboration between the majority party and one of the opposition parties. According to the Centre for Democratic Governance (Centre pour la Gouvernance Démocratique, Article 37: A decision on amending Article 37 or CGD), all the procedures were followed correctly. Even when not would contribute to ease public opinion and taking into account that voters voted for a candidate and not minimize the risk of social unrest. However, for a party, a deterioration of the majority party’s position can recent history has shown that security measures be observed because of the rise of a new opposition party and democratic control of crowds were not able to (UPC). Out of a total of 127 deputies at the National handle huge events. The State remains very weak Assembly, the CDP - the party in power – kept its 70 seats in exceptional situations. Even if the Constitution and obtained 12,340 local councillors out of 18,645. There does not prohibit the revision of Article 37, was also a change of the leadership of the Opposition (UPC Development Partners agreed to urge the with its 19 members). authorities to the fact that democratic change- Moreover, municipalities’ involvement in city management is over of political power is a guarantee of increasing as they are receiving more financial resources. democratic pluralism.

The crisis, triggered by successive riots and mutinies, between April and June 2011, was the starting point for a new wave of political and social reforms in Burkina Faso. All the institutions and mechanisms of a constitutional, pluralistic and Justice: It is essential that the government’s liberal democracy are, in principle, in place now, but it should multiple commitments to make the legal system be noted that the institutions remain dominated by the efficient are followed by effects. At first, the coalition supporting the president who has been in power for Department of Studies and Planning (Direction 25 years, and which (the coalition) has 90% of seats at the des Etudes et de la Planification, DEP) of the National Assembly, whereas the opposition, although free to Ministry of Justice could be supported within the conduct its political action, appears rather weak and divided. framework of a general strengthening of the DEPs However, in early 2014, influential leaders of the majority decided by the Government in the framework of Party (CDP) resigned and joined the opposition, which could the Economy and Finance Sector Policy (Politique lead to a profound redefinition of Burkina Faso’s political map. Sectorielle de l’Economie et des Finances, POSEF). Support for activities planned for producing and

Annex 2, page 3

Article 37: Limitation of the number of presidential terms is a publishing statistics regarding the files in court rule provided for by Article 37 of the Constitution of June 2, would be a priority to increase the transparency of 1991. which prohibits a President who has already served two the legal system . terms from running for president for a third consecutive term. Revising the Constitution of Burkina Faso, which could affect the amendment of Article 37, was examined. So far, speculations about this point have not yet been confirmed or invalidated.

It should be noted that since its adoption on June 2, 1991, Burkina Faso’s Constitution has been revised three times, respectively in January 1997 for unlocking presidential term limitation, and in April 2000 for, not only reducing presidential term duration from 7 to 5 years, but also introducing anew its limitation to “renewable once”, and in January 2002.

The debate concerning the amendment of Article 37 of the Constitution has occasioned a revival of tensions owing to the establishment of a Senate wanted by the presidential camp. This new Parliamentary Assembly, apart from the criticism raised as regards the establishment of the Senate itself, has also been perceived by many people as a stage of a strategy to amend the Constitution again. Today, the question of holding a referendum on whether or not to amend Article 37 is back on the agenda and is more and more at the center of the public debate.

The analysis of the actual situation of human rights in Burkina Faso shows that the essential freedoms, notably personal and political freedoms and democratic principles, are currently not threatened in general; a few sporadic cases of violation were denounced by civil society and the opposition, but the most striking cases (such as Norbert Zongo, a journalist assassinated in 1998, where close relations of the president were suspected of the crime) seem rather to belong to the

Annex 2, page 4 past (which, of course, does not mean that tensions have eased).

In general, Burkina Faso’s civil society and media enjoy a good freedom of expression; with free and independent newspapers which can openly criticize the government. Freedom of the press is therefore of a high level, especially in comparison with the other countries of the sub-region.

Religious freedom is guaranteed by the Constitution and is real. In practice, there is a high degree of tolerance among religious groups, partly due to the Burkinabè society’s historical roots in which the animistic, Muslim and Christian religions have always been present without discrimination or violent clashes (especially within families themselves).

Access to credible and fair justice is, however, not yet a reality. The Constitution guarantees independence of the judiciary, but at the same time, places it under the Head of State’s authority, who can appoint and dismiss senior judges. The executive’s influence over the judiciary is obvious. The legal apparatus remains largely inefficient due to the low rate of judgment enforcement, the lack of monitoring their enforcement and endemic corruption. Access to Justice is also confronted with physical, cultural and financial barriers due to the country’s conditions in terms of economy and infrastructure.

Women’s and children’s status and respect for their rights: Burkina Faso has adopted several international conventions on women's rights. Many associations working for women’s advancement have been supported at the local level. However, even if the criminal law punishes rape, Human Rights Associations report that women are frequently victims of it. It is a violation of human rights hard to fight for cultural

Annex 2, page 5

and social reasons. The provisions of the law on rape remain difficult to enforce. Moreover, maternal mortality (341 per 100,000) is high in Burkina Faso, and the practice of excision is common, even if it is gradually decreasing.

In 2003, the National Assembly also passed a law which severely punishes child traffickers. The government is working with the Development Partners (DPs) to improve child protection. Children’s situation in Burkina Faso remains critical, both for social or cultural and economic reasons (especially with the mining boom) and because of the extreme poverty in which many Burkinabè families live. One child out of eight dies before reaching the age of 5, partly because of malaria and malnutrition. The high maternal mortality also raises issues of child survival in infancy. The population’s literacy rate remains low (29% according to the latest UNDP estimates), and is even lower for women (22%). Concerning schooling, there is (i) a 98.5% gross admission rate (taux brut d’admission, TBA) against 47.4% in 2000/2001; (ii) a 87.8% gross school attendance (taux brut de scolarisation, TBS; 86.1% for girls); and (iii) a 61.1% primary school completion rate (58.1% for girls) against 41.7% in 2008. This shows significant improvements, but it also indicates that there is still a significant gap with universal schooling.

Death penalty: Burkina Faso is a de facto abolitionist country. Even if death penalty has not been officially abolished, death sentences are still sometimes passed but no execution has taken place since 1988. Burkina Faso is also committed against death penalty in key international fora.

2. Solid national policies and plans for poverty reduction, good governance and sustainable development. Solid public policies to achieve poverty reduction, good governance and sustainable development, including assessment of relevance, progress and political will as well as public sector capacity to implement policy and reforms. Policy framework for

Annex 2, page 6 monitoring progress of public policies should also be assessed. The partnership between the development partners and the receiving country and experiences from cooperation up to date. Sources and Indicators: The Strategy for Accelerated Growth and Sustainable Development (Stratégie de Croissance Accélérée et de The current progress of the strategy presents  ADE Report Développement Durable, SCADD) adopted in December 2010 some risk: , April 2012 with its monitoring and evaluation system adopted in October  Assessment a. The results of the EICVM survey 2011, can be considered as a relevant strategy for poverty of actors indicate that poverty has declined slightly from reduction. The current SCADD covers the period 2011-2015. (State, TFP, 46.4% in 2003 to 43.9% in 2009, whereas The Government has decided to review and update the OSC, CT) SCADD’s objective is to reach less than 35% in current document in April 2014, with the aim to extend its 2015. This objective appears all the less realistic duration up to 2020. The positive appreciation of the quality as a thorough analysis of the links between of the SCADD is shared by the different actors and expressed growth and poverty has not been conducted, nor  SCADD in the assessment documents of the Development Partners : Document a detailed profile of poverty and an analysis of - The strategy was developed after having performed an inequality issues, which do not seem to have  NIP assessment of the implementation of the Strategic Framework declined since 2000. Document – for the Fight against Poverty (Cadre Stratégique de Lutte 11th EDF b. Certain confusion persists with the contre la Pauvreté, CSLP)) over the period 2000-2009 country’s development policy reference through a series of studies and an independent assessment.  Indicator 1 documents. The coexistence of two documents is of the Paris indeed noted: the SCADD and the government's Declaration - The main actors (State, local governments (Collectivités Territoriales)), civil society organisations, private sector) were action plan for emergence and sustainable  PTF’s note, associated through a series of national, regional and sector- development dated May 2011 (PAGEDD) over the SCADD based consultations. SCADD has also been presented to the period 2011-2015. Policy dialogue in the annual National Assembly. On the whole, they have a positive framework of SCADD’s monitoring should help to review, appreciation of the process and the strategy itself, even if clarify the link between these two documents. 2013 some acknowledge that it can be improved. c. Interventions under SCADD should - SCADD’s objectives were clearly defined and targets are be prioritized in order to achieve the ambitious aligned with those of the MDGs. The four strategic areas objectives set for 2015. The government’s levers  POSEF retained in the SCADD meet the country’s real development up to 2015 are essentially the budgets of 2013, 2011 - challenges: accelerated economic growth, strengthening 2014 and 2015. The 2013-2015 budget 2020 human resources and social protection, governance, and framework (CBMT and global CDMT) appears

highly strategic in this regard, as it should reflect  IMF Mission cross-cutting priorities (gender, population, environment,

Annex 2, page 7

Memorandu regional development, and capacity building). SCADD’s ambitions and force the government m setting priorities within the SCADD in view of the - Even if SCADD has opted for a new focus on economic budget constraints.  OCDE’s growth acceleration, the fight against poverty has not been Survey of forgotten. The document calls for "accelerated and pro-poor d. The government is engaged on 2010 on the growth." The sectors identified in SCADD for the fight against several fronts with the consolidation of ministries’ Paris poverty are the agricultural sector, the infrastructure sector, activities into programme-budgets and a new Declaration the craft sector and small and medium-sized firms. sector-based definition of ministries, which review is still in progress. There is also a real will to implement: e. The issue of capacity appears  PAGEDD - Instruments for implementing the SCADD have been essential. On the one hand, the capacity of STN- Document developed, namely, the matrix of measures and indicators SCADD organs and sector-based frameworks and the annual performance report. Fifteen (15) Sector  Busan should be strengthened. On the other hand, the Frameworks for Dialogue (Cadres Sectoriels de Dialogues, DGCOOP issue of capacity needs to be better addressed in 2013 CSD) are operational. SCADD relies on processes developed the SCADD as a transversal theme of all sectors. Report within each sector: (i) actions plans of policies and strategies The implementation of the National Policy for at sector level with their results framework for monitoring Capacity Building (Politique Nationale de  EICVM performance, and (ii) the sector level review reports, which Renforcement des Capacités, PNRC)) appears to survey assess the annual progress. The steering instruments provide be a too broad approach. Preparing sector-based balanced room for national actors (civil society), the  SCADD capacity building plans as for the education sector Performanc Development Partners, Local Governments and the National seems interesting and could be extended to other e Report Assembly as an observer. sectors. 2013 - The macro-economic framework and the financial framework, which underpin the strategy, have also been defined. The overall cost of the implementation of the These issues and risks are discussed in the Troika strategy is estimated at FCFA 7,496.2 billion (excluding debt dialogue with the Minister of Economy and charges). 63.3% will be funded with the own resources of the Finance while reviewing the implementation of the Government and 34.5% by external resources. The expected SCADD. Moreover, component 2 of Denmark’s budget support contributions are about FCFA 124.3 billion per GBS 2012-2015 proposes a support programme, year during five years. contributing to strengthening SCADD’s monitoring and evaluation system. Good governance is crucial to stability, a State’s good functioning and a country’s socio-economic development.

Annex 2, page 8

Governance is one of the four priorities of Burkina Faso’s Decentralisation: The major challenge remains the National Development Strategy for the period 2011-2015 weak capacity of local authorities and the quality (Priority 3, axe 3: Strengthening Governance). The of their collaboration with the State’s implementation of this strategy will depend, on the one hand, deconcentrated services. In order to make the on a good capacity of the State to finance its activities and, transfer of competences and resources to local on the other hand, on strengthening the rule of law and governments effective, the Ministry of Regional institutional stability at both the central and local level. The Development and Decentralisation (MATD) governance sector is well organised with the existence of financed, in 2013, a "comprehensive assessment different complementary systems and instruments taking into of the competences and resources transferred account the transversality of the various subjects. This is the from the State to the communes" from 2009 to case with the Economy and Finance Sector Policy (Politique date. The results of this assessment provide a Sectorielle de l’Economie et des Finances, POSEF 2011-2020) better visibility of transfers in the fields of (i) which aims, on the one hand, at contributing effectively to health, (ii) preschool education, basic education ensure a robust and sustainable economic growth, and on the and literacy, (iii) drinking water supply and other hand to ensure modern and efficient economic and sanitation, and (iv) culture, sports and leisure. financial governance. Particular emphasis is laid on enhancing The study also identifies the bottlenecks internal resource mobilization, budgetary transparency and concerning the effectiveness of the transfers. In accountability, as well as enhancing public finance addition, the results of this assessment allowed management. The fight against corruption is also the subject the joint ministerial committee for competence of particular attention in the National Policy Against and resource transfer extension to submit to the Corruption (Politique Nationale de Lutte Contre la Corruption, Government twenty-one (21) bills relating to the PNLC)), whose final objective is to eradicate corruption with transfer of competences and resources from the reaching within five years zero tolerance level. Emphasis is State to the Local Governments, of which eleven put on applying codes of conduct and ethics in all spheres of (11) are related to the communes and ten (10) to activity, enhancing transparency and efficiency of public the regions in accordance with the provisions of services, strengthening legal action and the means of the law. the General Code of Local Governments. As for local governance, the Strategic Framework for Implementing Decentralisation (Cadre stratégique de mise en œuvre de la décentralisation, CSMOD 2006-2015) and the It is noted that at present, while the communes future sector strategy as regards local governance planned for have benefited from the transfer of four (04) 2015 will be the basis for strengthening the social and fields of competences, no jurisdiction has yet political appropriation of decentralisation, with transferring been transferred to the regions. Given local competences and financial resources to local authorities and authorities’ low capacity as regards human,

Annex 2, page 9 local capacity building as objectives. financial and material resources to effectively provide basic social services to the population, the Decentralisation: In order to preserve the effectiveness of the government has set model organisation charts for expenditure, the State has opted for the principle of local governments which will be operationalized subsidiarity. Three fields of competences were transferred to through the special recruitment of 1,000 new staff the communes (health, education and drinking water). members for the local governments. This action is Moreover, the Government has continued its efforts as combined with making 100 staff members regards the transfer of resources to local governments; the available to the local governments trained in the share of the State’s budget transferred to local governments Regional Institutes for Administration (IRA) every was 4.27% in 2013 for a target of 4%. It recorded an year. These actions aim at enabling local increase compared to 2011 and 2012 when it was governments, especially the rural ones, to respectively 3.93% and 4.07%. Apart from the resources execute basic tasks for the promotion of local placed at their disposal by the State, local authorities also development. receive support from projects, programmes, and NGOs involved in decentralisation up to FCFA 11,451,233,940. The additional Permanent Fund for the development of local governments (Fonds permanent pour le développement des collectivités territoriales, FPDCT), with up to FCFA 7,057,520,242 in 2013, also participates in this dynamics making it a privileged instrument for financing the investments of local governments.

Within the framework of the reinforcement of State endowments and grants to local governments according to a more equitable approach, two decrees concerning (i) the distribution of the overall budget allocation for equipment and operational costs and (ii) the distribution of tax revenues on petroleum products for the benefit of Local Governments helped to make available to them respectively FCFA 6,819,991,000 and FCFA 4,655,987,244 for 2013. However, the transfers of the financial allocations for equipment operations were delayed reaching Local Governments only in November 2013. The total amount of financial support from the State to decentralisation in 2013 increased to reach FCFA

Annex 2, page 10

53,604,907,379 against FCFA 41,847,368,749 in 2012. This enhancement is also due to the continuous support of the Development Partners involved in this sector.

Justice policies, being central to good governance, are contained in the Justice National Policy (Politique Nationale de la Justice, PNJ 2010-2019) which aims at strengthening the role of justice and the rule of law in the society, so as to make it a key actor of democracy construction and Burkina Faso’s development.

The growth rate of real GDP was 9.0% in 2012, against 5.0% in 2011, that is a 4 percentage points increase in the growth rate mainly due to the primary sector which saw its added value increased by 17.4% furthered by a good agricultural campaign and the dynamism of mining industries, notably the gold sector with a gold production amounting to 42.4 tons.

As regards official development assistance (ODA), the Development Partners allocated to Burkina Faso U.S.$ 1,114.00 million in 2012 against U.S.$ 1,141.66 million in 2011, which is a 2.42% decrease following the financial crisis in developed countries. This aid is characterized by the predominance of multilateral aid (51.8%) over bilateral aid, grants (82.7%) over loans, and project aid (59.8%) over the other types of aid. The top ten ODA donors in 2012, who contributed up to 65.3% of the total ODA, included six multilateral donors (IDA, EU, ADB, IMF, WFP, UNICEF) and four bilateral donors (the USA, the Netherlands, Japan and Denmark).

Dialogue: The General Framework for Organising Budget Support (Cadre Général d’organisation des Appuis Budgétaires, CGAB) allowed to move from a situation in the

Annex 2, page 11

1990s where each donor had his own bilateral dialogue with the government (without a strong dialogue with other donors) and would negotiate in a unilateral way his disbursement conditions and criteria to a situation where donors had a joint approach with a focus on a few key issues.

Thus the CGAB has furthered the development of a common vision on Burkina Faso’s development and policies of the CSLP (currently the SCADD) regarding different sectors and domains and has promoted a joint approach of the Development Partners (DPs) as regards precise topical themes and issues. The major dialogue with the government during 2000-2010 was focused on public finance management with DPs’ support to implement the PRGB/SRFP (2007) (POSEF since 2012). Since 2008 a high-level political dialogue has emerged through the Troika which involves at least one GBS donor (out of 3 members: a multilateral representative, a representative of the United Nations system and a bilateral representative; donors rotate every year). Denmark held the Troika’s Presidency in 2011 and 2012. Good governance and fighting corruption are key topics of this dialogue and donor concerns on these issues are now also included in the CGAB protocol as a government commitment and a strong condition of budget support. It is noted that the sector-based dialogues took much longer to become established and remains weak in some sectors. On the basis of DPs’ evaluation in 2013, the most efficient CSDs are those of "Economy and Finance", "Water and Sanitation" and "Education and Literacy". The underperforming ones are those of "Decentralisation and Security" "Culture and Tourism", "Rural Development, Food safety and Environment", "Industry, Trade and Crafts," "Youth, Vocational training and employment," and "Justice and Human Rights". The other CSDs are moderately effective.

Annex 2, page 12

It is therefore noted that efforts remain to be made.

The evolution of the approach (including the rules of transfer of funds and monitoring) and donors’ budget support conditions: Donors’ approaches in terms of conditions for budget support have evolved gradually since the 2000-2004s when we could distinguish three distinct approaches in terms of conditions of disbursement (WB/AfDB type approach with reform-related disbursements; bilateral approach disbursing fixed tranches linked to macro-economic assessments made by the IMF and the implementation of the CSLP, and the EU approach with fixed and variable tranches based on result indicators). Then came the period 2005-2012 when bilateral DPs began to use links with specific indicators of the CGAB- CSLP matrix. The current programming, in respect of the draft agreement signed in February 2012, has harmonised the choice of indicators around the SCADD matrix and/or sector- based matrices thus limiting the choice to about sixty measures and indicators (instead of more than hundred in 2008). Although there are no agreements between the DPs as regards harmonising choices of indicators in individual programmes, it appears that donors have a similar understanding of urgent and priority issues as regards GBS, So, selected indicators are often in the same areas.

3. Stable macro-economic framework. Main macroeconomic aggregates identified including potential sources of instability; macroeconomic and fiscal policies are in place and the quality of these, vulnerability to external shocks and efforts to strengthen macroeconomic resilience; efforts to strengthen domestic revenue mobilisation. Sources and The national context is still marked by the high number of Given Burkina Faso’s geographical position, Indicators: people living below the poverty line. The authorities are trying political instability at the regional level may to fight against this state of affairs by the implementation of threaten macroeconomic stability. With  PEFA, 2013 the Strategy for Accelerated Growth and Sustainable stabilisation of the situation in Mali, the tension

Annex 2, page 13

 UNDP’s Development (Stratégie de croissance accélérée et de has been reduced undoubtedly and is now limited 2013 report développement durable 2011-2015, SCADD). to the Islamic extremist groups. However, their on Human capacity to cause harm, even if greatly reduced, Developme The national context is characterized by structural data which remains real as shown by the attacks perpetrating nt lead the country to be ranked 183th out of 187 on the UNDP’s  IMF: in Niger. Therefore, Burkina Faso, as is the case international scale of human development (United Nations Political, for the whole sub-region, is not totally out of the Development Program - Report on Human Development economic storm. The external situation is structurally 2013). and fragile. The country has received a significant number of Malian refugees, but on the whole, this financial The total population of Burkina Faso was 17.5 million people has had little impact in terms of economic growth. memorandu in 2012, expected to reach 29.1 million in 2030. The Gross On the other hand, the country has little exposure m National Income per capita was U.S.$ 1,202 in 2012, in to the consequences of the international financial purchasing power parity of the prices of 2005. crisis. The 7th IMF review of October 2013 in Burkina Faso concluded

that all quantitative performance criteria and most structural measures contained in the IMF-supported programme were respected. GDP growth is expected to stabilise at around 7 percent in 2014 and, in the medium term, inflation should The country is vulnerable to external shocks (gold remain low at 2 percent. Up to 2015, (presidential elections), and cotton export prices, and oil import prices) we can expect a wait-and-see policy from investors. and is dependent on foreign aid. The significant decrease in gold prices in 2013 has led to the The economic growth in real terms will remain between 6 and closure of most mines which were still in the 7% in the absence of severe climatic conditions or other exploration phase. Only mines in operation phase external shocks. Growth will be driven by an enhanced continue their activity. A significant part of the implementation of the government's investment programme, country’s value added is dependent on rainfall, notably key investments in growth zones, energy production which varies greatly from one year to another. development and increased social spending. All these investments should promote that the fruit of this growth will be shared equitably by the population. Inflation should remain comfortably below the 3% WAEMU regional standard margin, Risks could start to appear when macroeconomic on the basis of the central bank’s unchanged policies, as long policy measures are being put into practice. as international prices of food and oil products remain in line Despite many measures that have been taken to with projections. strengthen resilience, particularly within the cotton industry which has high manpower

Annex 2, page 14

However, because of the price forecasts of export requirements, Burkina Faso remains highly commodities, notably gold and cotton, the terms of trade are vulnerable to external shocks. The main risk that expected to deteriorate substantially in 2014 before could compromise the objectives of the improving slightly thereafter. This, in addition to the macroeconomic policy is, as always, changing Government's planned investment programme, could cause a climatic conditions or an acceleration of climate significant current account deficit over the medium term, trends over the medium term. Another important possibly reaching 5.2% of GDP in 2016. This will reduce the risk is the deterioration of the terms of trade, international reserves significantly over the next three years, both for import and export of commodities and which could cause a need for extended funding of the balance the continuation of global economic slowdown, of payments and could justify a request for a subsequent which could in the first place affect foreign aid. three-year programme under the IMF’s extended Credit Other risks may include the security situation in Facility. the region and the domestic social tensions due to the high cost of living. Medium-term macroeconomic policy framework: The medium- term macroeconomic policy framework plans to establish an expenditure path in order to protect social and priority capital spending while taking into account institutional capacity In order to maintain the level of revenue constraints. From this point of view, it will be necessary to collection, the government will continue efforts to increase revenue and reallocate non-priority spending and modernise the tax and customs administrations, additional internal/external funding. In order to maintain the will consolidate tax collection units’ experience risk of excessive debt at a "low-moderate" level, and will seek new tax niches to broaden taxability. macroeconomic objectives aim at containing the budget Over the period 2014-2016, revenue would reach deficit (grants excluded) at a reasonable level of about 3% of 19.1% of GDP and expenses would reach 25.7% GDP. of GDP, used for both current expenses (13.1%) and capital expenses (12.5%). Over this period, According to the PEFA 2014 report, the overall debt ratio is credits to the economy will be increased and an 28.1% (21.0% for external debt and 7.1% for internal debt), interest lowering policy will be pursued, which will which is well below the 70% threshold set by the WAEMU promote economic activity. Moreover, a system Community Plan. The current value of the debt in GDP for effective regular monitoring of the percentage is 20.2%, well below the WAEMU ceiling of 50%. repatriation of export earnings, particularly those The average interest rate of the debt portfolio is 2.1%, (1.1% from mining companies, has been established in for external debt and 5.0% for internal debt). order to strengthen the foreign-exchange reserves. The risk level of the portfolio of public debt is low, because of: (i) refinancing of the debts with an average repayment period

Annex 2, page 15 of the 13.9 years, (ii) the very low interest rate (84% of the debt are concessional loans), and (iii) the reduced exchange rate risk because of, on the one hand, the fixed parity between the CFA franc and the Euro, which comprises 56% of the debt in foreign currency, and on the other hand, the very long maturity of external debt.

Payments of public debt services are regularly scheduled and executed in good time and no payment arrears have been recorded.

Since 2000, Burkina Faso’s growth has been significantly higher than that of the WAEMU region and slightly higher than that of sub-Saharan Africa. Since 2007, foreign trade has been particularly dynamic in Burkina Faso compared to that of the WAEMU or sub-Saharan Africa.

Revenue collection during the first half of 2013 was broadly in line with expectations, despite lower revenues from gold production and the State’s renouncing of its share of the Tax on Petroleum Products (Taxe sur les Produits Pétroliers, TPP). Expenses, including those authorized by the Revised Budget Law (Loi de Finances Rectificative), were consistent with expectations. In the medium term, the deficit should be 3% of GDP. Exchange rate: no risk (fixed/CFA area). Monetary policy: inflation rate (target <3%) is part of the convergence criteria of the WAEMU, so no risk.

Given the good performance of tax revenue mobilisation, measures are taken to accelerate capital spending. The 2012- 2013 agricultural campaign was good, which relieved the population composed for 80% of farmers and livestock keepers. In absolute terms, social sector spending continues to grow. Allocations to social sectors (health, basic education) are indeed a priority to the Government and are closely

Annex 2, page 16

monitored in the context of the development policy and the economy and finance sector policy. Poverty reduction social spending is part of the quantitative criteria monitored by the IMF. In September 2013, the Government allocated FCFA 64.3 billion, which is € 98 million, for taking social measures.

4. Public finance management Expert appraisal of quality and capacity in public finance management, including credibility of the budget, anti-corruption measures, comprehensiveness and transparency, policy-based budgeting, predictability and control in budget execution, accounting, recording and reporting and external scrutiny and audit. Sources and Indicators: In the framework of SCADD, ministries have established The annual report on monitoring the sector-based policies which combine strategies and action implementation of SCADD noted that the  POSEF plans. The Economy and Finance Sector Policy (POSEF), investment projects’ implementation rate was a  PEFA, 2013 adopted by the Government on June 8, 2011 is the reference point of concern. The Government has taken  IMF, 2013 Memo framework for implementing the reforms as regards economy steps to verify the public expenditure chain in  NIP-11th and finance in Burkina Faso. Its implementation will order to identify the various bottlenecks which EDF contribute to achieving the objectives of the Strategy for slow down the execution rate. Four main areas Accelerated Growth and Sustainable Development (SCADD). were identified: public procurement process, POSEF covers the period 2011-2020 and its operationalisation expenditure approval process, dependence on is carried out through the implementation of the forward paper-based transactions, and donor approval rolling Priority Action Plans (PAP). The public finance reform is procedures. To address these concerns the integrated in the Economy and Finance Sector Policy 2011- government adopted an action plan for 2020 (POSEF). implementing the reform in terms of rationalisation of the expenditure circuit during Several measures have been implemented recently as regards 2014-2016. budgetary planning and the establishment of programme- budgets. The following measures have been taken (i) In 2014, the Government will review the elaboration of the 2013-2015 programme-budgets of all legislation in order to implement the conclusions ministries and institutions, except the Ministry of Transport, of the study on the reform of procedures and Postal Services and Digital Economy (Ministère des responsibilities of actors of the expenditure transports, des postes et de l'économie numérique, MTPEN), circuit, and will establish a committee in charge of the Ministry of Human Rights and Civic Promotion (Ministère coordinating the implementation of

Annex 2, page 17 des droits humains et de la promotion civique, MDHPC) and dematerialisation activities. The interministerial the Independent National Electoral Commission (Commission committee in charge of monitoring capital électorale nationale indépendante, CENI), (ii) the validation spending, already established, will continue its by a monitoring committee of a capacity building plan for monitoring activities to enhance the level and programme-budget actors, (iii) the review of the programmes quality of the investment spending of projects and of eight ministries and institutions, and (iv) the programmes. Delays in public procurement implementation of a study on the impact of the programme- procedures are still a major challenge for all budget approach on data processing applications being used development sectors. in financial management, within the framework of strengthening economic governance.

Public access to budget information is mixed. It is very good concerning public contracts thanks to a daily bulletin with The Government pays great attention to information about those contracts. As regards other improving the quality of capital spending by information, although the Ministry of Economy and Finance is favoring financing of mature and growth making significant efforts to make citizens understand the generating projects, which are also generating reforms in progress and the main data of the budget and employment and of fast execution. presents the budget in all the regions and to civil society organisations, direct access to basic information is either too limited or too late. The draft budget, submitted to the Parliament in October, is put online as well as the budget execution, but out of the time-limit. In support of Government efforts, Denmark ‘s The government is also committed to maintain the recent GBS 2012-2015 is supporting two Civil Society progress made as regards mobilising domestic revenues. Organisations (REN-LAC and CIFOEB), which are active in the field of fighting corruption and The computerisation of the expenditure chain, and more promoting greater budget transparency and better generally of public finance, has advanced considerably since understanding of the budget by the public in order 2010 following the technological developments. The following to increase the accountability of the managers of initiatives have been taken: (i) taking into account the latest public funds. These two organisations, whose WAEMU guidelines on public contracts management, local actions are complementary, are likely to governments and the State’s public institutions; (ii) water, contribute to enhancing the efficiency and control electricity and telephone consumption management module of public finance management by virtue of their made; (iii) External Financing Integrated Circuit (Circuit role of citizen’s watch in the definition, Intégré des Financements Extérieurs, CIFE)) established and

Annex 2, page 18 deployed; (iv) Computerised Expenditure Circuit (Circuit implementation and monitoring of public policies, Informatisé de la Dépense, CID)) adapted to the needs of the specifically regarding anticorruption and budget Expenditure verification units and Credit Management transparency issues. Directors; (v) State’s Personnel’s Administrative and Salary

Management Integrated System (Système Intégré de Gestion Administrative et Salarial du Personnel de l’Etat, SIGASPE) To mitigate the problems with the dispersion of migrated in three-phase architecture and decentralised in all the acquisition of data-processing modules , the 12 regions; (vi) Local Authorities’ Integrated Accounting Government will put in place a solution based on Software (Comptabilité Intégrée des Collectivités Locales, an inclusive approach from beginning to end. This CICL) completely revised and renamed as the Territorial allows administrations to capture, channel and Governments Integrated Accounting Software (Comptabilité rationalise grassroots initiatives through Intégrée des Collectivités Territoriales, CICT); (vii) integrated implementing an open and distributed Cloud Taxation System (Système Intégré de Taxation, SINTAX) infrastructure, commonly known as "Government enhanced to take into account local taxes, tax information Cloud" or "G-Cloud". It should be noted that this cross-checking with public contracts, the customs, public will be done through a mixed credit of Alcatel- spending and fiscal control; (viii) 12 Regional Budget Lucent and Danida Directorates (Directions Régionales du Budget, DRB) and more than 150 sites of decentralised services of revenue authorities of the MEF (Ministry of Economy and Finance) The regulatory mechanism to fight corruption is connected to the Interadministration Computer Network still inefficient, inadequate (old Penal Code) and (Réseau Informatique Inter Administration, RESINA). The not sufficiently dissuasive. The national anti- functionality of all these applications remains to depend on corruption policy and its action plan were adopted the capacity of the communication infrastructure, electricity in June 2013. Despite political statements, supply (especially at the decentralised level) and specialized political will has yet to be proven. A national staff (for a need of 257 IT staff, the current count is 71). system against money laundering exists (National Economic governance and corruption: Progress has been department for processing financial information, made as regards economic governance. national strategy against money laundering) but has yet to prove itself as it has been established Concerning the business climate, according to the World recently. Political dialogue with the Government Bank’s "Doing Business" ranking, there has been an resulted in commitments to improve the legal and improvement of +2.62 of its indicator "Distance de la institutional framework for the fight against frontière (DDF)” (border’s distance), although Burkina Faso corruption and forgery. However, a specific bill on th maintains its overall rank of 154 out of 189 in 2013 and the matter, which was tabled in Parliament in late

Annex 2, page 19

2014 2013, was returned to the Government for taking into account the Civil Society’s comments. Burkina Faso has neither made progress nor regressed since Discussions should continue to improve its the last 2012 ranking of the least corrupt countries, remaining content. stuck at the 83rd place with still the same score of 38 out of 100, as noted by APA in the 2013 report of the NGO Transparency International. According to the same annual report of Transparency International on corruption in the world, in West Africa only three countries are ahead of the "Country of Honest People" (le Pays des Hommes Intègres). These countries are Cape Verde (41st with a score of 58), Ghana (63rd with a score of 46) and Senegal (77th with a score of 41). Burkina Faso shares its rank of 83rd with Liberia also credited with 38 points.

Burkina Faso occupies the 23rd place (out of 52) in the overall ranking in the Ibrahim Index of African Governance 2013. It recorded a score of 53.0 (out of 100), higher than the African average (51.6). Its score improved by 1.2 points compared to 2000. Burkina Faso is ranked 7th out of 16 countries in West Africa. Burkina Faso gets its best ranks in the Sustainable Economic Development category (14th out of 52) and the Agricultural Sector subcategory (7th out of 52).

The "corruption control" indicator assessed by the Worldwide Governance Indicator places Burkina Faso slightly below the 40th percentile in 2011 (a stable value since 2006). These are encouraging results, which, however, do not hide the fact that corruption and impunity continue to affect all sectors of society in Burkina Faso and even if there are more and more revelations of cases of corruption following better functioning of internal control, these cases often go unpunished. The public procurement system, which is the main gateway to corruption still suffers from actors’ weaknesses despite

Annex 2, page 20

regulations constantly improving since 2003. The wave of reforms initiated after the crisis of 2011 also prompted the Government to launch a broad anti-corruption campaign, which has uncovered "high level" implications, such as the indictment of the Director General of the Customs or, following the report of the High Authority of State Control (Autorité Supérieure de Contrôle d'Etat, ASCE), the implication of the Ambassador of Burkina Faso in Paris, former Minister of Secondary and Higher Education. It should also be noted that an anticorruption strategy exists and the Act to the attention of the National Assembly is in preparation.

5. Transparency and oversight of the budget Disclosure of all relevant fiscal information in a timely and systematic manner. Scrutiny by parliament, auditors, local authorities, civil society organisations and media. Sources and Indicators: The continued commitment of Burkina Faso to the public Several actions are carried out or planned in the finance reform process led to carrying out a third assessment National Development Strategy (SCADD) to meet  PEFA, 2013 of public finance on the basis of the PEFA methodology, which the challenges. These are, among others,  NIP-11th presents the possibility of a periodic monitoring of progress EDF providing all ministries with sector-based policies made. with results framework including relevant indicators to measure progress made in the

implementation of the objectives of public policy The internal control of the payroll is in place. Changes in concerned; systematising the programme budgets nominative statements and payroll statements are performed in all departments and depoliticising public according to established rules. A biometric census of public administration. In one word, it will be a question servants in 2012 and prospects for enhanced salary of reinforcing appropriation of development management are good. More systematic reconciliation policies. statements between the financial and administrative modules

of the computerised system of the State’s personnel administrative and salary management (SYGASPE) further The main risk with budget management is related

Annex 2, page 21 reinforce the internal control of the personnel. Finally, the to the low forecasting capacity and the weak tax decentralisation of personnel spending management control in the mining sector, which is currently a continues with the establishment of Human Resource great provider of budget revenues, even if the Management Departments at the level of ministries and mid-term review of budget execution allows to institutions and making them real budget managers. make adjustments during the year. The low Redefining a responsibility system in internal control was technical capacity of tax authorities in the mining launched in 2013 and is expected to be accelerated in 2014. sector and a lack of taxation in some areas such as land tax, expose the country to a great risk of The chain of expenditure procedures is clear and complete tax evasion. Apart from the previous aspects with data processing applications allowing a better control. related to the low mastery of taxability, the The main concern is the use of the simplified spending collection system is well structured and budget procedure which, although foreseen by the financial system, revenue collected is well centralised at the is used in a somewhat abusive way. Treasury.

In general, the budget execution reporting system is quite efficient with improving access to data. Several tools and mechanisms for monitoring budget execution allow to have, The regulatory framework for the country’s public on time, periodic fiscal information. In addition, the Audit- procurement has been constantly reformed since office generally receives, on time, the accounts of the public 2003, due to different assessments, in order to accountants. Annually, it publishes reports on its controls, conform to international standards. The current including its analysis of the execution of the government regulation is based on the principles of budget and it provides recommendations systematically. competitive bidding before public procurement However, delays in the publication of public reports were and signing contracts. Technical assistance has recorded in recent years. Coverage of its controls is still weak been provided to support all actors. However, the as regards local governments, State corporations and public risk of a deviation from the competition rules by institutions. Finally, although Parliament receives the reports the actors is real. Cases of breach of regulations, of the Court, it does not examine them as it does not have a weakly punished, are also a risk for the public legal obligation to do so. finance management system. An audit of financial flows is performed annually for budget support. The public administration is rather effective with good capacity. Codes of ethics are starting to be developed in a few key departments (Customs, Taxes, Justice, etc.). However, the administrative burden and the weakness of hierarchical control in public administration are important risk factors

Annex 2, page 22

because they give a feeling of impunity.

The Danish Mission’s conclusion – is it assessed to be feasible to provide budget support and if not which major obstacles have been identified.

Burkina Faso’s internal stability is relatively good compared to the other countries in the region and in particular to those that are close to its borders (Mali, Ivory Coast, Togo, but also Nigeria, Guinea, Guinea-Bissau). Democratic institutions are formally in place (even if real democracy is still to be completed) and the electoral process of general and local elections of December 2, 2012 took place in a rather serene atmosphere, with a substantial consensus of all major political actors (despite some clashes rather within the ruling party). Civil society seems fairly well developed and structured. That said, the frictions in social and political areas, especially those that were at the origin of the crisis of February-June 2011 are still far from being resolved. The issues at the origin of the crisis remain. The risk of returning to a situation of conflict is still present. In addition to this risk, the main factors of instability for the country are constituted by economic conditions (especially recurrent food crises) and the crisis in Mali, which, because of the porosity of the border, could easily spill over to Burkina Faso. Moreover, this situation has already caused a massive influx of refugees into the country. (see PIN-11th EDF)

The Embassy considers that there is no blocking fundamental problem for Burkina Faso’s eligibility for the Development Contract. The three general conditions (national policy, public finance management, macroeconomic stability) have been thoroughly analysed by existing dialogue frameworks, including recent IMF missions. The fourth condition relating to Development Contracts (transparency and oversight of the budget) is already monitored in the framework of the dialogue on public finance, which is a very structured dialogue and of good quality in Burkina Faso. In this field, Burkina Faso is quite advanced as regards disclosure of information relating to budget programming: for example, the budget is translated into national languages and programming- related documents are disclosed in a timely manner via the Internet. However, there is room for improvement regarding issuing budget execution information in a timely manner.

The Embassy and other Development Partners (DPs) providing Good Governance and Development Contracts (EU) or general budget support (GBS), maintain a sustained political and policy dialogue with the Government of Burkina Faso in order to identify any change in orientation relating to eligibility.

As regards risk prevention and mitigation in terms of public finance, in addition to the regular dialogue between the DPs and the Government, the Embassy provides institutional support to the Ministry of Economy and Finance through the POSEF Secretariat.

Annex 2, page 23

Not providing general budget support would give an oversized negative signal to the Government, given the reality of the situation. Even though many challenges remain to be taken up, it should be noted that the quality of the dialogue on public finance in Burkina Faso is strongly embedded in the monitoring of general budget support.

The analysis of the Danish Embassy, Ouagadougou, is that the situation of fundamental values in Burkina Faso, with the recent initiatives and measures taken by the authorities, is acceptable. The Development Contract may therefore be one of the effective tools to support the political and the policy dialogue and support the reforms necessary to the success of the development strategy. The Development Contract will enable keeping a careful watch on all the issues raised. Priorities could be re-examined according to developments in the implementation of the Development Contract throughout this programme.

2. Assessment according to relevant criteria at sector/thematic level

Criterion Specific SBS analysis related to the Water and Sanitation Sector Comments 2 Solid The national water supply and sanitation programme (PN-AEPA) 2007-2015 was conceived national as an operationalization of international engagements taken in the framework of the policies and Millennium Development Goals. The programme covers rural as well as urban water plans for supply and sanitation. Since 2010, Denmark together with EU and Sweden has provided poverty SBS to the implementation of the PN-AEPA. In 2013 KfW has joined the SBS donor group reduction, with budget support specifically targeted at urban water supply through ONEA good governance In terms of relevance, the programme still remains relevant as access rates to drinking and water and sanitation remains low especially in rural areas (63% and 3% respectively). The sustainable programme is today facing challenges in a number of areas: 1. The programme is development. focussed on achieving the national targets for 2015 and to diminish inequity in access to water supply and sanitation services but has in its implementation given insufficient attention to address equity and financial resources have thus not been allocated on the basis of transparent and objective criteria aiming at enhancing equity. Disparities between communes with a high coverage and those with a low coverage remain important and have only diminished marginally during the programme period. 2. The implementation strategy aiming at gradually transferring responsibility for planning and implementation of sector activities to local governments, as required by the decentralisation law, has been less successful (partly due to lack of governmental commitment to move the decentralisation process ahead) and has even experienced a severe set-back with the

Annex 2, page 24 government’s decision in 2010 to rely on national implementation agencies for all activities related to the construction of water supply and sanitation facilities (This arrangement stopped end of 2013 following severe criticism from DPs). 3. Although the PN-AEPA has formally put in place a bottom-up approach to programming, the water and sanitation ministry still maintains a key role in programme and implementation and local governments and right holders are inadequately involved in both programming and implementation. On a positive note, the comprehensive framework of guidelines, standards, and a monitoring system for the PN-AEPA has made it possible to move ahead on alignment (a sector budget support mechanism and a basket fund). Furthermore, with the PN-AEPA as the recognised framework for sector activities, coordination of interventions has been substantially strengthened through regular meetings between donors and government and the annual sector reviews. These mechanisms have now been replaced with 2 annual sessions of the “Cadre de Dialogue Sectoriel (CDS)” within the framework of the SCADD.

The effectiveness of the rural component of the PN-AEPA is weak. The number of yearly planned boreholes compared to those actually constructed has been relatively low (56% in 2010 but over 100% in 2013), thus revealing problems both in terms of planning and implementation (e.g. procurement procedures). It is most unlikely that overall programme objective for rural water supply (76% coverage in 2015) will be achieved. There has been a steady increase over many years in urban water supply coverage in areas covered by ONEA and the achievement of the main objective for the urban water supply component (89% in 2015) is certain. In addition to this, it is noted that ONEA has taken up the challenge of embarking on provision of water supply to peri-urban areas. The achievement of the objectives for rural sanitation has been appalling (6% coverage in 2013 against a target of 54% for 2015) and there is not yet any obvious commitment to adequately address this issue (revision of strategies, approaches and norms) in the ministry of water and sanitation. Therefore other avenues for supporting sanitation will be sought in the new Danish support. Some progress has been achieved for urban sanitation but it is unlikely that objectives will be achieved by 2015.

Efficiency of the national programme remains modest: For the period 2010-2012 the budget execution rate has totalled 76% (72% and 83 % for the rural and urban components respectively). There is in particular a need to address problems in consuming

Annex 2, page 25

donor funds (69% for the period 2010-2012). Performance as regards the execution capacity of domestic funds including the SBS is satisfactory.

There are some concerns related to the sustainability of the PN-AEPA. The functionality rate of constructed facilities remains modest (83% for handpumps and 67% for rural piped schemes) thus showing that the reform put in place more than 10 years ago has not yet led to the application of adequate maintenance systems. Problems adversely affecting sustainability include poor quality of works, insufficient supervision/control of works, and inadequate functioning of water user committees. To address these issues, the national programme hence promotes professionalised operation & maintenance of facilities though Public-Private Partnership arrangements. 4 Public In addition to the general analysis above on quality of PFM systems, the following issues financial should be noted at sector level. 1.The SBS to the water and sanitation sector is formally management non-targeted but government decided in 2010 to manage it as targeted SBS, thus making it traceable both at budgeting and expenditure levels. 2. In the period 2010-2013 additionality being of the criteria for assessing annual SBS releases has been very satisfactory (83%). 3. Technical audits have evidenced that quality of works financed through the SBS is not satisfactory in all cases. 4. For the period 2010-2013, in average 21% of SBS funds have been used for “project expenses” at the regional level of the Ministry of water and sanitation. There are serious concerns regarding the relevance and the justification of these expenditures. 5. The 2012 technical and financial audit of SBS (“credits délégués”) has expressed concerns regarding the quality of financial management of funds handled by the national implementation agencies (e.g. 19.8% of disbursements was not adequately justified). 6. Audits point to discrepancies between amounts released to national implementation agencies and actual documented values of contracts entered with private enterprises. 7. There are discrepancies between amounts of SBS funds released by the donors and amounts actually allocated to institutions in charge of water supply and sanitation thus pointing to a loss of resources for sector activities. The Danish The water and sanitation SBS has offered an excellent opportunity for strengthening Mission’s dialogue between government and sector donors and has strengthened both alignment conclusion and harmonisation at sector level. The above weaknesses are partly due to the use of national implementation agencies but does also reveal inherent and more general problems related to PFM. SBS will be used as the main funding mechanism for future support to the sector but it will be targeted specifically at ONEA foreseen to act as “Maître

Annex 2, page 26 d’Ouvrage Délégué” (MOAD – Deputy Project Owner) for the communes in establishing water supply systems for clusters of villages and villages adjacent to existing ONEA raw water pipes, if feasible for connection. As a parastatal organisation (100% state owned), ONEA does not apply public PFM systems and has its own financial management systems (procurement procedures, internal and external financial control procedures etc..) having allowed it to become one of the best performing public utility companies in sub-Saharan Africa.

Annex 3, page 1

HRBA/Gender Screening Note Tool for Human Rights Based Approach (HRBA) and Gender Equality Screening

Purpose: The HRBA and Gender Screening Note complement the HRBA Guidance Note and the up- coming Gender Equality Strategy and the Gender Equality Toolbox. The purpose of the note is to facilitate and strengthen the application of the Human Rights Based Approach and mainstreaming of gender equality programming related to Danish development cooperation. It can be used as an inspirational checklist by all staff. The information in the note should be based on the analysis undertaken as part of the preparation of the Country policy paper and should draw on major Human Rights and gender equality analysis relevant for the country such as UPR-processes, reports and documents from OHCHR, EU HR Strategy, CEDAW-reporting as well as relevant analysis prepared by other major donors. The Screening Note should be attached to the country programme concept note, and the questions raised below should be reflected in the country programme document. Appraisal of country programmes will include a specific focus on HRBA and Gender Equality. List of key acronyms and abbreviations AFJ-BF Association des Femmes Juristes du Burkina Faso CEDAW Convention on the Elimination of All Forms of Discrimination against Women CGD Centre pour la Gouvernance Démocratique CIFOEB Centre d’Information, de Formation et d’Etudes sur le Budget CRC Convention on the Rights of the Child FGM Female Genital Mutilation FIDH Fédération Internationale des Droits de l’Homme GBV Gender Based Violence HR Human Rights HRBA Human Rights Based Approach HRC Human Rights Council ICCPR International Convention on Civil and Political Rights ICESCR International Convention on Economic Social and Cultural Rights MBDHP Mouvement Burkinabè pour les Droits de l’Homme et des Peuples OHCHR Office of the High Commissioner for Human Rights REN-LAC Réseau National de Lutte Anti-Corruption SCADD Stratégie de Croissance Accélérée et de Développement Durable UPR Universal Periodic Review

Basic info Title Country Programme 1. Development Contract (General Budget Support) Themes 2. Governance 3. Economic Growth in Agriculture Sector 4. Water and Sanitation Country/ region Burkina Faso Budget in DKK 1,345,000,000 Starting date and 2016-2020 duration

Annex 3, page 2

Human Rights Based Approach

Assess whether a Human Rights (HR) Based Approach has been applied in the programme:

Human Rights Assessment and Standards

Issues: yes no Explain: Have major HR yes Major HR analyses and reports (available as of March analysis relevant for 2014) relevant to i) Burkina Faso and more specifically the country been to ii) the 4 themes of the country programme, have consulted (UPR, been consulted as follows: OHCHR, EU HR International HR analyses: Strategy, other . The Universal Periodic Review (UPR) 2nd Cycle relevant donor analytical document: Compilation prepared by documents) the Office of the High Commissioner for Human Rights (OHCHR) in accordance with paragraph 5 of the annex to Human Rights Council resolution 16/21, A/HRC/WG.6/16/BFA/2 (2012); . OHCHR, Annual Reports, 2010 and 2011; . The Convention on the Elimination of Violence against Women (CEDAW) Sixth Report (2009) CEDAW/C/BFA/CO/6; . The Convention on the Right of the Child (CRC) Third and Fourth report (2008) CRC/C/BFA/CO/3- 4; . UN General Assembly, Report of the Special Rapporteur on the promotion and protection of human rights and fundamental freedoms while countering terrorism, Mission to Burkina Faso, A/HRC/25/59/Add.1 (February 2014); . International Federation for Human Rights (FIDH), 53rd Session - April 2013- Banjul; . Transparency International Burkina Faso http://www.transparency.org/country/#BFA_Dat aResearch_SurveysIndices Regional and National HR analyses: . African Peer Review Mechanism: Annual Report on the Implementation of the National Programme of Action of Burkina Faso (Jan.2010); . Periodic Report of Burkina Faso to the African Commission on Human and Peoples’ Rights relative to the African Charter on Human and Peoples’ Rights covering the period 2003-2009 (October 2010); . Council of the European Union, EU Annual report on Human Rights and Democracy in the World in 2012 (Country Reports October 2013); . European Parliament, Report on the Situation of human rights in the Sahel Region (2013/2010

Annex 3, page 3

(INI)A7-0325/2013 . REN-LAC, Etat de la Corruption au Burkina Faso, Rapport 2011 ; . MBDHP, Etat des Droits Humains au Burkina Faso 2008-2009, Rapport 2010 ; . AFJ-BF, Rapport 2012 sur la situation des Droits de la Femme et de la jeune Fille au Burkina Faso ; (Note: this is not an exhaustive list of HR analyses consulted) Have key international yes Amongst the extensive list of ratified international and HR standards and/or regional HR instruments by Burkina Faso, the following mechanisms HR standards were taken into consideration to influence influenced choice and the choice and formulation of the 4 themes of the formulation of country programme and outcome areas: outcome areas? At International level: . ICESCR Art.11; 9; . ICCPR Art.14; 16; . CEDAW (ratified without Reservations) Art.2; 5; 11; 13; 14; 15 . CRC Art.2 . UN Guiding Principles on Business and Human Rights . UN Resolution 64/292 on the Right to Water and Sanitation

At Regional level: . African Charter on Human and Peoples’ Rights Art: 21 and 22.1; . Protocol to the African Charter on Human and Peoples’ Rights on the Rights of Women in Africa Art.3; 4; 5; 8; 15 and 19. . African Charter on Democracy, Elections and Governance Art.2; 3; 4; 6; 8, 10; 12; 27; 29; 33 and 39. (Note: this is not an exhaustive list of HR instruments) Where relevant, is yes Despite Burkina Faso’s comprehensive ratification of application at national both international and regional HR instruments, the level, including major main gap and major HR issue lie in the low level of gaps between implementation in practice. If to some extent, a human rights in domestication process within the national legislation has principle vs. human taken place, in line with the HR and UPR analyses above rights in practice, (and of relevance to the 4 themes of the programme), evaluated and the major gaps between “principles versus practice” are identified? assessed and identified as follows: . Ineffective implementation of economic, social and cultural rights. The fact that Burkina Faso ranks 183 out of 187 countries is an indication that the majority of the population does not enjoy access to a sufficient level of living standards and basic economic, social and cultural rights;

Annex 3, page 4

. Persistent Gender-based violence and gender inequalities in particular (including Female Genital Mutilation (FGM); domestic violence, inequality in terms of access to loans and in terms of employment of women and youth.); . Unequal access to Justice and low trust in the independence and effectiveness of the Judiciary (as an example ‘le non-lieu de l’Affaire Zongo’); . Ineffective protection of Civil liberties (as an example the 2011 riots): abuse of preventive detention, torture and death penalty; . Unequal access to business loans, guarantees, and advice and property rights to .rural women; . Disparities in the right of access to water and sanitation of populations living in zones with low and very low access. These are some examples of key HR gaps and violations with a particular relevance to the fight against poverty and social exclusion in the 4 selected themes of the Country Programme.

Are key yes The following key UPR recommendations, that require recommendations follow up at national level, were considered, in line with from UPR for the the 4 themes selected: thematic programmes 1. Recommendations 135.116 and 135.118 on the and from any treaty reinforcement of the living conditions of the bodies, special population and their access to economic, social procedures, INGOs, and cultural rights. HNRIs etc. that 2. Recommendations 135.3-10 on violence against require follow up at women, 135.44-53 on gender equality; 135.74- national level 85 on FGM; Recommendations135.40 on training considered? of security forces and 135.111-112 on equal access to Justice. 3. Recommendations 135.24 on promoting businesses respecting of human rights; 135-57 on participation of rural women in particular in accessing loans, commercial services, property and income generating projects. 4. Recommendations135.117 on the elimination of regional inequalities in accessing drinking water especially between rural and urban areas and recommendation 135.119 on assessing the possibility to have as a national priority the full realisation of the right to water and sanitation – as an essential precondition to the achievements of other priority objectives such as health education and gender equality. In addition, the Governance theme includes a specific support to follow up and implementation of all UPR recommendations at national level, a considerable part of which concerns gender equality, women’s human rights and the eradication of violence against women as mentioned above.

Are rights-holders yes Rights-holders have been identified as the vulnerable

Annex 3, page 5

identified? and/or excluded categories of rights-holders and NGOS representing their rights, as observed in the UPR Recommendations mentioned above and as specifically relevant to the 4 themes of the Country programme. These are essentially : 1. Marginalised Rights-holders with inequitable access to decent living conditions and basic economic, social and cultural rights. 2. Women Rights-Holders suffering from gender- based violence and unequal access to Justice and human rights protection. 3. Rural Women and Youth Rights-Holders with inequitable access to loans, commercial services, and income generating projects and employment. 4. Rights-holders living in zones with inequitable access to drinkable water and sanitation especially in rural areas. 5. Citizens victims of corruption. 6. CSOs representing citizen’s rights mentioned above and holding duty bearers to account. (Note: This is not an exhaustive list of Rights-Holders identified)

Are duty-bearers yes Duty-bearers, have been identified as the central and identified? decentralised level of representation of the following state authorities: 1. Ministry of Economy and Finance 2. Ministry of Justice; 3. Ministry of Human Rights and Civic Promotion; 4. Ministry of Territorial Administration and Security 5. Ministry of Agriculture and Food Security; 6. Maison de l’Entreprise, the Banks and SMEs. 7. Ministry of Water and Sanitation (Ministère de l’Eau, des Aménagements Hydrauliques et de l’Assainissement), ONEA 8. Communes 9. Regional Councils 10. Governorats

Assess whether Human Rights Principles have been applied in the preparation and in the design of the programme? Non- Yes in In practice, and in line with the UPR analyses above, the discriminatio practic categories of rights-holders mentioned above face n: Are any e special difficulties and barriers in accessing and groups among influencing the programme areas identified. rights-holders excluded from access and influence in the thematic programme areas

Annex 3, page 6

identified? Are yes  The 2009 Country Census is available and shows disaggregated (to a a rather broad disaggregation of data by socio- data available certain economic categories, rural/urban, regions, on most extent) communes and sex of heads of households. vulnerable Ministère de l’Economie et des Finances, groups? Recensement Général de la Population et de l’Habitation, Analyse des Résultats définitifs, Thème 15 : Mesure et Cartographie de la Pauvreté, (Octobre, 2009).  Amongst other available sector disaggregated data, there are also two types of surveys at national level : l’Enquête Intégrale sur les Conditions de Vies des Ménages (EICVM) over a 5-year period ; l’Enquête Multi-Sectorielle continue (EMC), which disaggregates data by socio-economic groups and geographical zones. . List any key yes Key support elements to promote non-discrimination support across the 4 Themes have been included in line with the elements UPR recommendations above: included to  Support to SCADD performance indicators matrix promote non- (incidence of poverty on vulnerable groups and discrimination gender inequality and women’s empowerment).  Support to non-discrimination in terms of equal access to justice and to protection from gender based violence; Support to access to justice for all, to the independence of the judiciary and for citizens’ engagement with community policing. Finally, support to the implementation of UPR recommendations also addresses non- discrimination across different sectors.  Support to non-discrimination is further included in the choice of some filières (such as gomme arabique and karité) targeting marginalised segments of population. Support to rural women and youth’s equal access to loans and employment.  Support to non-discrimination and reduction of disparities in accessing water and sanitation is also included by targeting zones with only 40% or lower access to water. Support to an increased % of women in decision-making position in local water committees.  A specific support is foreseen to NGOs fighting for non-discrimination of the categories of rights- holders mentioned above.

Participation yes In general the barriers for participation, inclusion and and empowerment of rights holders have been identified in inclusion: the major HR analyses mentioned above. The main Are barriers barriers to participation as related to this Country for Programme can be summarised as follows: participation,  Socio-cultural barriers, feudalism/ socio-

Annex 3, page 7

inclusion and economic hierarchies empowerment  Patriarchal system/values of rights holders  Low literacy level identified?  Lack of implementation of ratified international and regional HR instruments in practice: especially with regard to socio-economic rights and human rights protection of certain vulnerable segments of the population.  Lack of application of national legislation, e.g. on water resources management.  Low level of transparency and accountability

List any key yes Key support elements to promote participation and support inclusion include: elements  Support to inclusion and participation is generally included to reflected in the indicators related to the 4 promote themes supported by the country programme. participation  Support to SCADD : the 4 Sector Dialogue Levels and inclusion (les Cadres Sectoriels de Dialogues, les Cadres Régionaux de Dialogues et le Cadres Provinciaux de Dialogues) – all enable participation and inclusion of civil society in the 4 themes targeted by the Country Programme.  Direct support for the participation of civil society organisations representing the categories of Rights-holders identified above, is included especially in the General Budget Support, Governance and Water and Sanitation Themes.

Transparenc Not The extent to which information is accessible to rights y: Is the system holders –especially the marginalised groups is not extent to atically systematically assessed and neither is the ability of which certain marginalised groups to access and comprehend information is such information across the 4 themes. accessible to rights holders  Some efforts in some thematic areas (e.g. including Economic Growth in the Agriculture Sector and marginalised Governance) have already been undertaken groups through the years (e.g. to translate the assessed? information into other languages than the official language). This is not however a systematic Where practice in the programme. relevant,  A special effort has been included in the water whether and sanitation theme targeting accessibility of information is information through sensitization of HRBA by available in CSOs in addition to the relatively open annual other than planning exercise at regional level during which official investment funds are distributed languages of the country in question should be indicated.

Annex 3, page 8

List any key yes For each theme key support elements to promote support transparency include: elements  Support to SCADD: 3rd Axe on Economic included to Governance targeting anti-corruption. Support to promote NGOs networks promoting transparency such as transparency CIFOEB focused on Budget transparency, including studies on gender budgeting, participatory budgeting and transparency of information;  Activities related to the independence of the Judiciary, access to justice as well as the follow- up of related UPR recommendations is included;  Activities related to transparency in the water and sanitation themes regarding the information at community level;  Activities related to dissemination of information of women’s access to Bank loan and guarantees is supported in the Economic Growth in Agriculture sector theme.

Are key yes  In terms of vertical accountability mechanisms – accountabilit there is a specific focus on the support to the y mechanisms following theme: Governance (community in the relevant policing) as well as the legal aid clinics through area – both the support to CSOs (MBDHP, AFJ-BF, CDG). horizontal and  In terms of horizontal accountability mechanisms vertical listed? – there is a specific focus in the General Budget Support theme (support to implementation of the SCADD), in the governance theme: support to CSOs such as CIFOEB and REN-LAC.  The Water and Sanitation theme includes an engagement focusing on CSOs and HRBA which specifically targets accountability.

Are obstacles, yes Obstacles to all 4 themes in terms of accountability are e.g. capacity listed in the UPR analyses mentioned above. and political-  Some of the key obstacles to duty bearers’ economy capacity to exercise their obligations in terms of incentives accountability are: low wages, lack of knowledge that duty- and understanding of their respective bearers and responsibilities vis-à vis rights-holders. rights holders  Some of the key obstacles to rights-holders’ face to capacity to claim their rights in terms of exercise their accountability are: low opportunity to claim their obligations rights to the respective authorities, lack of and rights knowledge and understanding of their respective listed? rights and capacity to claim them.

In 2007, the literacy rate was only 39,3% among the population of 15-24 year old. List any key yes Key support elements included to promote support accountability are: elements  Support to SCADD;

Annex 3, page 9

included to  Support to the independence of judiciary, access promote to justice and community policing; accountability  Support to implementation of UPR Recommendations;  Support to CSOs that are active in promoting accountability such as for instance Centre de Presse Norbert Zongo, Semfilm, REN-LAC, CIOEB, CGD, and MBDHP, AFJ-.BJ with legal aid.  Annual audits.

Results/Indicators This section follows the Results Framework Matrix for the Burkina Faso Country Programme, which includes HRBA and its 4 Principles. Below are some examples of key specific indicators taken from this Matrix with particular relevance to the 4 Principles. It is important to note that these only a ‘selection’ and are not ‘separate indicators’. They should be read and measured along with the entire Results Framework Matrix for the Burkina Faso Country Programme.

List any indicators yes Governance designed to monitor  Impact Indicator: Access to justice and legal aid the realisation of (Improved); Independence of justice specific human rights (Reinforced); Capacity of demand side accountability mechanisms (civil society); (Improved);Capacity of women to claim rights (e.g. land, economic, political); (Improved)  Outcome indicator: Number of cases of human rights violations mentioned in independent reports (from programme-budget of MDHPC)  Output result: The fundamental Rights are effective and the UPR recommendations are implemented (from programme-budget of MDHPC)  Output result: Public judiciary services are accessible, respected and dynamic (from action plan 2014-2016 for the independence of justice, axis 3);  Outcome indicator: Visibility and awareness of humans rights among the most excluded segments of the population Water and Sanitation  Impact indicator: Reduction of number of communes with an access rate below 65% (Equity in access to drinking water) General Budget support  Impact Indicators: Reduced poverty incidence (cf. 35% in 2015);Primary education for all in 2020; Enhanced gender equality and women’s empowerment; Reduced infant mortality (below 5 years); Improved maternal health; Continued achievement of decreases in HIV/AIDS, malaria and other diseases;

List any indicators yes Several indicators including those mentioned above

Annex 3, page 10

designed to monitor cover many principles at the same time, below are some the integration of the key indicators designed to monitor the integration of four principles each principles: a) Non-discrimination and b) Participation

Governance  Impact Indicator: Trust between police and citizen (Improved); Access to justice and legal aid (Improved); Capacity of women to claim rights (e.g. land, economic, political); (Improved)  Outcome indicator: Number of cases of human rights violations mentioned in independent reports (from programme-budget of MDHPC)  Output result: The fundamental Rights are effective and the UPR recommendations are implemented (from programme-budget of MDHPC)  Output result: Public judiciary services are accessible, respected and dynamic (from action plan 2014-2016 for the independence of justice, axis 3)  Outcome indicator: Visibility and awareness of humans rights among the most excluded segments of the population Water and Sanitation  Outcome Indicator: Evolution of number of communes with an access rate below 65% (Equity in access to drinking water)  Output Indicator: % of women in decision making positions in water user committees  Outcome Indicator: National policy and subsector strategies integrate HRBA principles in planning, execution, and monitoring of activities.  Output Indicator: Number of duty bearer representatives trained in application of HRBA principles in water and sanitation sectors – national level (ONEA, MEAHA), regional level (DREAHA, regional councils, governorates) and local level (communes).  Output Indicator: Water User Committees sensitized on their rights and obligations in water and sanitation service delivery and management  Output Indicator: Increased public awareness on equity, rights and obligations related to water supply and sanitation delivery Economic growth in Agricultural Sector  Target Output indicator: 100 medium term loans granted of which at least 40% to female operators  Target Output indicator: 100 guarantees granted of which at least 40% to female operators General Budget support  Impact Indicators: Reduced poverty incidence

Annex 3, page 11

(cf. 35% in 2015);Primary education for all in 2020; Enhanced gender equality and women’s empowerment; Reduced infant mortality (below 5 years); Improved maternal health; Continued achievement of decreases in HIV/AIDS, malaria and other diseases;  Outcome Indicator: Poverty incidence;  Output indicators (Governance thematic programme): Proportion of CSOs and medias participating in the budgetary process

c) Transparency and d) Accountability:

Governance  Impact Indicator: Trust between police and citizen (Improved); Independence of justice (Reinforced); Capacity of demand side accountability mechanisms (civil society)(Improved);  Outcome indicator: Positive improvement in the perception of judiciary system services by target communities measured by a final perception survey in Burkina  Output result: Judicial actors are better recruited, better trained, better protected (action plan 2014-2016 for the independence of justice

General Budget support  Impact Indicator: Reduced poverty incidence (cf. 35% in 2015); Enhanced effectiveness of public policies and of PFM.  Outcome Indicator: Sound PFM (sources : PEFA, IMF); Poverty incidence; Index on perception of corruption (IPC of Transparency International)  Output Indicator: Increase in controls carried out by the Cours des Comptes; Transparency in public procurement;  Output indicators (Governance thematic programme) Index on perception of budget transparency; Index on perception of accountability; Index on perception of corruption (Transparency International); Level of public access to information related to PFM and to the fiscal policy: Proportion of CSOs and medias with access to main published budgetary documents; Proportion of CSOs and medias participating in the budgetary process.

List any key indicators yes Governance chosen to track capacity of key  Impact indicators: Capacity of demand side partners (both rights accountability mechanisms (civil society); holders and duty (Improved); Capacity of women to claim rights bearers)

Annex 3, page 12

(e.g. land, economic, political); (Improved)

 Outcome indicators: Positive improvement in the perception of police services by target communities measured by a final perception survey in 3 regions (Sahel, North and East

 Output result: Local police centres are able to deliver services, to respond and attend correctly to complaints presented to them by local citizens within a period of XX, depending on severity of the case, in the 3 regions

 Output indicators: Number of human rights complaints registered at the police centres: number of rapes /domestic violence registered; existing disaggregated data by region; source: annual Statistical report of the Ministry of security; June 2010 Water and Sanitation

 Outcome Indicator: National policy and subsector strategies integrate HRBA principles in planning, execution, and monitoring of activities.  Output Indicator: Number of duty bearer representatives trained in application of HRBA principles in water and sanitation sectors – national level (ONEA, MEAHA), regional level (DREAHA, regional councils, governorates) and local level (communes).  Output Indicator: Water User Committees sensitized on their rights and obligations in water and sanitation service delivery and management  Output Indicator: Increased public awareness on equity, rights and obligations related to water supply and sanitation delivery Economic growth in Agricultural Sector

 Outcome indicator: Increase of primary production, commercialization and processing in selected value chains  Output indicator: Sector strategies and policy developed or revised  Number of public agricultural facilities constructed and managed under PPP.

Dialogue Partners Define key dialogue yes 1. Ministry of Economy and Finance partners (duty bearers) to be 2. Ministry of Justice; Ministry of Human Rights and addressed by the Civic Promotion; Ministry of Territorial country programme

Annex 3, page 13

Administration and Security

3. Ministry of Agriculture and Food Security; Maison de l’Entreprise, the Banks and SMEs.

4. Ministry of Water and Sanitation (Ministère de l’Eau, des Aménagements Hydrauliques et de l’Assainissement), ONEA

Define key alliance yes  Multilateral: partners, including EU, AfDB, WB, NEPADS; UNICEF, UNDP, UNFPA, FAO, other likeminded  Bilateral: donors, multilateral GIZ, KfW, German Embassy, AfD, French Embassy, partners and CSO’s Swiss cooperation, Austrian Cooperation, Canada, Luxembourg.  CSO’s : REN-LAC, CIFOEB. CGD, MBDHP, AFJ-BF, Centre Norbert Zongo, Semfilms. (not exhaustive list)

State major yes The major dilemmas and tensions associated with policy dilemmas/risks dialogue are: associated with the - Currently, there is a limited presidential mandate policy dialogue and to 2 terms. The risk of major political crisis is proposed mitigation crystallised by the issue of revision of art.37 of measures (incl. the Constitution allowing the current president to reference to run for elections again in 2015. Framework for Risk - The risk of social crisis, due to inequitable Assessment) distribution of power and resources, youth unemployment, marginalisation of certain groups, increasing potential for creating conditions for violent extremism.

Mitigating measures include supporting the government in making its growth strategy SCADD truly inclusive and equitable as well as supporting both government and NGOs in applying HR commitments and UPR recommendations.

Gender Screening Tool

Are key challenges yes Key challenges and opportunities for gender equality are and opportunities for identified in the main part of gender analyses presented gender equality in the UPR documentation mentioned above, across the identified? 4 themes and in particular within the Governance theme.

Are reference made to yes Indeed CEDAW country reporting, other gender CEDAW-reporting, assessment (such as AFJ-BF report on women’s and UPR, and other girl’s rights in Burkina faso) and UPR reporting relevant gender constitute an overwhelming part of reference made as assessments? mentioned in the list of HR analyses above. These have been specifically included by the country programme.

Annex 3, page 14

Identify yes Generally, the main constraints and opportunities for opportunities/constrai addressing gender equality issues are detailed in the nts for addressing CEDAW reports, and CSOs shadow reports to the gender equality issues national CEDAW reporting as well as AFJ-BF reports mentioned above. Some key constraints and opportunities related to the 4 selected themes are identified as follows: Constraints:  An entrenched patriarchal value system.  Women and girls illiteracy.  Overwhelming participation of women in domestic chores and reproduction and unequal participation of women in formal economies, decision-making positions etc.  Harmful Traditional Practices including FGM, early and forced marriage, early and high fertility rate accounting for high maternal and infant mortality, domestic violence and widespread marital rape, polygamy, dowry systems etc.  High illiteracy rate.  Low level of women’s access to property rights, land title ownership, inheritance rights.  Low level of women’s access to justice, knowledge of their rights and means to claim them despite ratification of one of the most advanced women’s rights instruments: the Maputo protocol.

Opportunities:  Ratification of CEDAW without reservations and Maputo Protocol on women’s rights.  National Gender Policy (2009) and action plan (2011-13) and machinery in place.  Establishment of specific donor group for gender to ensure coordination and mainstreaming of gender across sectors.  Women’s rights focused CSOs such as AFJ-BF provide promotion of women’s rights, training and sensitisation as well as legal aid to women.

Describe key strategic yes  General Budget Support: SCADD has a interventions to strategic component on gender equality and promote gender women’s empowerment. equality within each  Governance support has a strategic gender thematic programme? basket fund dedicated to women’s rights projects that may focus on FGM, gender based violence, women’s human rights in general etc. A strategic focus is also on women’s access to justice and social protection.  Economic Growth in the Agriculture Sector: special focus on women’s access to loan facilities and women and youth’s access to employment.  Water and sanitation has a strategic focus on increasing women users association decision- making posts and the percentage of Water local

Annex 3, page 15

committees decision-making posts occupied by women.

Explain how gender yes The strategic approach used to implement the above specific purposes will intervention is twofold: be reached, which  Support the main duty bearers in the strategic approach, implementation of gender equality and women’s what activities are rights related recommendations in the second planned UPR cycle report as well as promoting, protecting and fulfilling women’s rights in the selected areas of thematic interventions.  Support relevant women’s rights NGOS such as AFJ-BF and through the gender basket fund in sensitising women rights holders and assisting them in claiming their rights.

Define expected yes The key expected outputs is the implementation of outputs. UPR’s key recommendations largely related to women’s rights as well as the implementation of the relevant articles of the Maputo Protocol pertinent to the selected thematic areas mentioned above. (as specified above)

Identify gender yes  Number of UPR recommendations equality indicators implemented (related to gender equality aligned with national and violence against women) targets on gender if  Enhanced gender equality and women’s possible. empowerment (SCADD)  The capacities of CSOs to develop gender activities are reinforced through a basket fund.  % of women in decision making positions in water user committees

Annex 4, page 1

Climate Change and Green Growth Screening Note

Basic Information Programme title: Country Programme, Burkina Faso – 2016 2020 Country/region: Burkina Faso Estimated allocation: 1 345 Million DKK (of which 380 million DKK were committed in 2012 for the Agriculture Programme) Brief description of the Programme 5. Development Contract (General Budget support: Support

6. Governance

7. Economic Growth in Agriculture Sector

8. Water and Sanitation

Dates Programme committee: June 11th 2014 (expected): Appraisal: January 2015 Climate change screening Assess the status of policies and strategies to respond to climate change in the country and sector. If the issue is inadequately dealt with (indicated by a tick in the “no” box), please add comments and assess the potential impact on the program (see also “next steps” section, below). Issue: Yes No Comments and further work to be done: 1. Are the processes and IPCC states, with high confidence, that climate change impacts of climate occurs in the region of Burkina Faso. Several studies on change documented cc impacts have been conducted (e.g. Faramarzi et al., (e.g. in national 2012; de Wit and Stankiewicz, 2006; Wittig et al., communications to the 2007). UNFCCC)? Burkina Faso has signed UNFCCC and the Kyoto Protocol.

2. Is there a national “Plan National d’Adaptation aux changements climate change climatiques (PNA) du Burkina Faso” is in the process of policy or strategy, governmental approval (expected June 25th 2014). The including estimates of PNA includes a cost-benefit analysis of adaptation. the economic costs of

adaptation? In addition the Volta Basin Authority (Burkina Faso represents the upstream 43% of the basin area) has developed a Strategic Action Programme (SAP) for the Volta basin, which has been adopted in March 2014 by the governments of the countries represented in the basin (Benin, Burkina Faso, Côte d’Ivoire, Ghana, Mali and Togo). In the SAP, adaptation to climate variability and climate change in the entire Volta Basin is a prioritized trans-boundary action with budget estimate.

Annex 4, page 2

3. Have nationally Mitigation is in general not a high priority for appropriate developing countries. This fact also counts for Burkina mitigation actions Faso. Focus is on adaptation. (NAMAs) and or Low Carbon Development Plans been identified (e.g. targets for renewable energy production)? 4. Has a national The “Programme d’Action National d’Adaptation à la adaptation variabilité et aux changements climatiques” (PANA) programme of action was approved in 2007. The PANA includes prioritised (NAPA) been and budgeted adaption projects. DANIDA has approved identifying supported capacity building of a larger number of key key sectors where actors, and activities on awareness raising and pilot adaptation is required? adaptation projects have been conducted within the PANA framework. The PNA (see above) is expected to replace the PANA. 5. Are there effective and The ACCIC-AGRHYMET pilot project funded by DANIDA operational is seeking to improve management and analysis of meteorological and meteorological data and dissemination of hydro- disaster climatic information to end-users for better adaptation preparedness to climate change and preparedness actions. organizations? The pilot project is carried out in collaboration with national partners (in Burkina the meteorological institute and the University of Ouagadougou LAME institute) and covers Niger, Burkina Faso and Mali. Summarize the overall assessment of climate change impacts and responses:

Climate Change impacts Burkina Faso is located in the Sahel and is therefore vulnerable to climate change and its impacts. Important inter-annual and inter-seasonal rainfall variations as well as important variations within each of Burkina’s three climate zones (Sahelian, Sahelo-Sudanian and Sudanian climate zone) characterise Burkina’s climate.

Water is a scarce resource in Burkina Faso. Climate changes combined with an increased demand for water due to population growth and socio-economic development cause an even higher pressure on the resource in future both in respect of quantities and quality.

Burkina Faso is one of the world’s poorest countries and depends to a large extend on natural resources. The majority of the population depend on farming, livestock and fishery. In general farming is dependant on the rainy season but “out of season” crops - mainly vegetables – is based on a limited resource of water for irrigation. Farming in Burkina Faso is therefore very vulnerable to variations in the climate such as years with limited precipitation, droughts and flooding.

Future climate projections are paramount to taking adaptation measures into account.

Precipitation and temperature According to the IPCC Fifth Assessment Report 2014 (IPCC 5), the Sahel has experienced an overall decrease in rainfall during the 20th century and a recovery in rainfall during the last twenty years (IPCC 5, WGII, 2014, ch. 22: 10). IPCC 5 suggests that the precipitation recovery might be due to natural variability, forced response to increased greenhouse gases

Annex 4, page 3

or reduced aerosols (ibid.).

Precipitation projections in West Africa only have low to medium confidence because of insufficient regional data (ibid.: 11). Regional models, however, predict an increase in the number of extreme and heavy rainfalls in West Africa and the Sahel by the end of 21st century (ibid.: 12). It is certain that temperature raises will increase evaporation of the scarce surface water resources.

Burkina Faso’s National Plan for Adaption to Climate Changes, the PNA, shares the assumption of a future decrease in annual precipitation in Burkina Faso, a decrease in number of days with rain and an increase of successive days without precipitation. Furthermore, the PNA states that the isohyets 600-900 mm has migrated 100-150 km southwards between 1930-2010 with a recovery of 50 km during 2001-2010 (PNA, 2014: 37-38).

IPCC 5 and PNA foresee an increase in temperature across Africa. According to IPCC 5, there is high confidence that the vulnerability of the agricultural sector in Africa will be aggravated due to climate change, particularly in semi-arid areas such as most of Burkina Faso. The changes in precipitation and increases in temperature are very likely to reduce cereal crop productivity, which will have strong negative effects on food security (IPCC 5, WGII, 2014, ch. 22: 3).

The IPCC 5 points to a strong warming tendency across the African continent over the last 50-100 years. In the future, it is likely that land temperatures over Africa will rise faster that the global average, particularly in arid regions such as northern Burkina Faso. Mean annual temperature rise for Africa is likely to exceed 2°C by the end of 21st century, but this could even be exceeded and by mid-century the temperatures across Africa could increase by 3-6°C (ibid.).

Based on simulations for the period 2046 - 2065 the PNA summarizes the expected risks of climate change in Burkina Faso on this mid-time scale as follows (PNA, 2014: 44): i) Low risk having less precipitation but an increase of the variability from one year to another; ii) Postponement of the rainy season with less rain in July and August and more rain in September and October; iii) More frequent heavy rains and periods of drought with higher variability at the beginning and end of the season; iv) Increased maximum and minimum temperatures of 2.5 °C to 5 °C with variations between the three climate zones; v) An increase in potential evapotranspiration (monthly 2-10 mm).

On a long time scale the overall prediction for Burkina Faso is a rise in temperature between 1-6 °C by the end of this century, and in the worst case scenario for the Sahelian zone as much as 4-6 °C.

Effects Climate changes affect the hydrological circle and contribute to a number of interlinked effects on the water resources and the availability of water for ecosystems and socioeconomic uses, hereunder water supply and agriculture.

Important effects for the water sector and the agricultural sector comprise; i) Changes in vegetative cover related to the southward migration of climate zones or precipitation pattern, which is leading to reduced groundwater recharge, lowering of the groundwater level and reduced flow rates in rivers; ii) Degradation of soil quality, soil erosion, sedimentation of river systems and water reservoirs, which are used for irrigation and water supply; iii) More frequent flooding damaging private property, dams and other infrastructures, crops, polluting surface water causing unsafe water supply, ecological damages and an increased fish mortality; and iv) Periods of drought with higher variability at the beginning of the growing season, which implies difficulties for the farmers to predicting the start of the growing season

Annex 4, page 4

endangering new crops to dry out or shortening the growing season.

It is emphasized that the effects mentioned above also are influenced by other anthropogenic activities, e.g. unsustainable deforestation and agricultural practices. Natural climate variations can also contribute to the foreseen effects, which e.g. have led to discussions of to which extent desertification in the Sahel region is a result of climate changes. As previously mentioned the precipitation predictions are uncertain, due to lack of climate data from the Sahel region.

Rivers in Burkina Faso in general dry up in the dry season except the Mouhoun River (Black Volta), where the upstream part of the river basin comprise protected nature including the “Lac aux Hippopotames” area (Ramsar and UNESCO site). Springs feeding the base flow of the river are threatened by anthropogenic activities such as excessive water abstraction and climate changes. The Volta Basin Authority has given protection of these springs a priority in the trans-boundary Strategic Action Programme (SAP 2014).

Climate change responses National policies and action plans (PNA/PANA) to adapt to climate change exist but effective responses are lacking due to weak awareness, lack of government prioritisation and absence of funding for current action plans and/or integration into sector plans.

However, in 2003 the government of Burkina Faso adopted the Action Plan for Integrated Water resource Management – PAGIRE with support from DANIDA and SIDA. PAGIRE provides a decentralized framework adapted to the national context, consistent with guidelines established by the Government of Burkina Faso and respecting the principles internationally recognized sustainable and environmentally sound management of water resources. PAGIRE provides a trans-sectorial approach that seeks to integrate protection of the water resources with the sectors depending on an adequate quantity and quality of water resources both for human consumption and for productive purposes such as farming/irrigation, livestock, fishery, industry and hydro-power. This is a useful basis for improving responses to climate change regarding both the water sector and the agricultural sector.

Since effects of climate change often are on regional scale trans-boundary responses on river basin level should be coordinated with/through the Niger Basin Authority and the Volta Basin Authority, who are responsible for strategic action programmes approved by the nations within the region. The Volta Basin Authority suggests identification and promotion of techniques of climate adaptation as a priority in the trans-boundary Strategic Action Programme (SAP 2014).

Burkina Faso has a long tradition for managing climate impacts and local people have in many places, especially in the north of the country, developed adaptation practices, risk management and recuperation strategies to cope with these climate variability. These practices include among others: i) Diversification of crops; ii) Different methodologies to prevent soil erosion on cultivated land; iii) use of agroforestry; iv) Use of manure to improve degraded lands; v) Use of improved short-cycle and high-yield seeds; vi) A high degree of mobilisation of both people and livestock.; and vii) Reduction of the dependency on agriculture by searching for alternative sources of income.

However, more measures are needed to combat the effects, e.g. prevention of soil erosion and flooding in general, improvement and maintenance of infrastructure (dams, channels), deeper boreholes and wells due to lowering of the ground water level, information and emergency plans, security stocks, etc.

Screening of Country Green Growth Framework

Annex 4, page 5

Assess the status of policies and strategies for green growth and the procedures for environmental impact assessment in the country and sector. If an issue is inadequately dealt with (indicated by a tick in the “no” box), please add comments and indicate further work to be undertaken (see also “next steps” section, below). Issue: Yes No Comments and further work to be done: 1. Do national According to “Décret n°2001-342/PRES/PM/MEE du 17 procedures and juillet 2001” all activities, public as well as private, legislation for found to have a potential significant impact on the Strategic environment should be subject to an assessment of Environmental these impacts. Assessment (SEA) and Environmental Impact Assessment (EIA) exist? 2. Are there operational Plan d’Action National pour l’Environnement (PANE) Green Growth 1994. Strategies/actions Integrated part of national strategies and programmes plans and/or dealing with sustainable management and development National such as SCADD, PNSR and GIRE Environmental Action plans? 3. Are there regularly Rapport sur l'Etat de l'Environnment au Burkina updated state of the (REEB). environment Monitoring report of the state of the environment of the reports and green country to be prepared every four years. growth monitoring systems with indicators? 4. Is there sufficient institutional and

human capacity for green growth and environmental management in the sector concerned? Summarize the overall impression of the Country Green Growth Framework:

Environmental Impact Assessment The overall framework, in the form of environmental legislation and policies related to environmental management and impacts assessment, exists in Burkina Faso. With regard to environmental monitoring, article 7 of Burkina Faso’s Environment Code (1994) lays out the framework for coordination, monitoring and evaluation for integration of environment issues applicable to all programmes/projects/plans (PPP). The Ministry of Environment and Sustainable development (MEDD) is responsible for ensuring the implementation of the framework. According to EIA legislation (Decree no 2001-342/article 31), Environmental monitoring is the joint responsibility of MEDD and the relevant line ministry.

According to the Environment Code and the decree an EIA should be undertaken whenever activities can have an impact on the environment (art. 4). While in theory ensuring a screening of potential environmental impacts, the legislation is in practice far from being respected. Regulations on environmental audits for project not having respected the EIA legislation seeks to counter this fact.

Green Growth Strategies, Environmental Action Plans and Environmental Monitoring

Annex 4, page 6

Strategies and Action Plans Concerning Green Growth The SCADD (Stratégie de Croissance Accélérée et de Développement Durable 2011-2015) is the country’s overall strategic framework for growth and development, and it constitutes the base for a number of sector strategies and programmes. The latter include the national programme for the agricultural sector, PNSR (Programme National du Secteur Rural 2011- 2015), and the Action Plan for Integrated Water Resource Management (PAGIRE 2010-2015). The strategies reflect concerns on environmental issues and sustainable development, but a coherent strategy for a green inclusive growth does not exist, neither in the SCADD, nor in the sector strategies.

The notion of sustainable development in the SCADD primarily concerns economically sustainable growth. Some environmental perspectives such as adaptation to climate change and sustainable management of natural resources constitute some of the greener strategic directions given by the SCADD (see for example SCADD 2012, pp. 19-20, 53). Likewise is the promotion of green jobs mentioned as one opportunity to better manage natural resources in a sustainable way (ibid.: 20).

Although the SCADD does not constitute a satisfying strategic framework for green growth, possibilities for green growth in Burkina Faso obviously do exist, e.g. in the agricultural sector with its potential of greening every link in the value chains. On a programmatic level this approach will be promoted by the country programme under the Economic Growth in the Agricultural Sector theme and on a general strategic level the programme will advocate for a coherent green growth approach. A large number of possible actions within the selected value chains have been identified.

Likewise the energy sector is key to green growth possibilities (COWI, 2014: 2). 88 % of Burkina’s electricity supply is derived from thermal power, the development of renewable energy is in general low and the electricity coverage is low compared to the demand (SCADD, 2012.: 43). Although it is stated in the SCADD that Burkina will focus especially on solar power in future (ibid.), the national policies of energy production remains conventional.

Solar energy does represent the largest potential for renewable energy in Burkina Faso but the institutional framework for renewable energy production does not exist in Burkina and so far the economic feasibility is questionable not least due to the present subsidies for fossil fuel. However, a 30 MW solar power plant is currently under construction and this will provide the country with valuable experiences on renewable energy. Other potentials identified are energy production from biomass and hydro-power, although the feasibility of the latter remains questionable.

Water management has a significant role in ensuring a green growth in Burkina Faso. With the introduction of GIRE the principles of polluter-pays and user-pays have been introduced (COWI, 2014: 4). This should in theory encourage enterprises that pollute to choose green paths of development. Pollution of water resources is though in general a problem because the principles of GIRE are not sufficiently implemented in different key sectors, most importantly irrigation and mining (ibid.: 6).

The mining industry in Burkina Faso is growing fast, and gold mining is the country’s largest export industry. Mining can have huge negative impacts on the surrounding environment such as erosion, loss of biodiversity, contamination of soil, surface water and ground water. It is especially the use of toxic chemicals in the mining processes and leaching from waste depots of tailings that deplete water quality and pose a problem for agricultural production and safe drinking water.

Agriculture is the primary occupation in Burkina Faso and depends to a large extent on

Annex 4, page 7

irrigation, especially in the dry season. Irrigation systems have environmental impacts such as alteration of natural conditions of the landscape, destruction of ecosystems surrounding the rivers and relocation of inhabitants (Stockle).

At international level, a framework for green growth exists. Burkina has signed the Bamako Declaration on Environment in Sustainable Development (2010), and at the 17th Summit of the African Union, the decision of ensuring green economy in the sustainable development framework was adopted (COWI, 2014: 15).

Environmental Action Plans A national environmental action plan (PANE) was adopted and then revised in 1994 which is the national Agenda 21. PANE has though shown to have limited effect; the weaknesses especially illustrated when it comes to implementing policies, strategies and action plans (CEP, 2006: 21).

Environmental Monitoring The REEB is a functioning monitoring system of the state of the environment of the country, which is supposed to be carried out every fourth year. The reports are carried out, but on an irregular basis. The first report was adopted in 2001 at the first conference of CONEDD (then CONAGESE). The latest version was adopted in the spring, 2014.

Climate change and Green Growth opportunities and risks of programme Assess how climate change and environmental opportunities and risks will arise through the programme: Will the programme ... Oppor- Risk: None: tunity: 1. ... support green growth initiatives including livelihood improvements and resource efficiency 2. ... support the creation of decent and green job? 3. ... contribute to effective management and efficient use of natural resources 4. ... have direct or indirect impact on climate change (e.g. through increasing or reducing emissions of greenhouse gases)? 5. ... have direct or indirect impact on occupational health and safety? 6. ... lead to changes in land and resource tenure and access rights, including the rights of indigenous peoples? 7. ... include activities within or adjacent to protected or environmentally sensitive areas? 8. ... have direct or indirect impact on the resilience of communities in the face of natural disasters? Summarize and explain climate change and green growth opportunities: The Country Programme entails a number of opportunities for addressing climate change issues and promoting a green inclusive growth, especially through the activities in the agriculture and water theme.

Annex 4, page 8

The programme focuses on strengthening the private agricultural sector in adding value all through the value chains by supporting improved financial and non-financial services to agricultural actors above the level of subsistence farming. The programme, hence, aims at creating growth and employment in five of the more vulnerable regions in Burkina Faso (Nord, Sahel, Est, Centre-Est and Centre-Ouest), targeted at five selected value chains (maize, cowpea, cattle beef, shea and arabic gum), that includes vulnerable groups (including women) and strengthens their resilience to the increased risks of natural disasters following climate change, such as droughts and flooding.

In order to ensure a greening of the growth and creation of jobs the jobs, the programme contains ‘Green Funds’ that support the introduction of green technologies, renewable energy sources and improved, sustainable farming practices. Furthermore, the programme will include targeted training of the supported enterprises in the labour code/CSR in order to strengthen occupational health and safety.

Through the Integrated Water Resources Management support under the water theme, the programme will continue the support for an effective management and especially aim at application of the national laws on water use. Part of the activities concerns environmentally sensitive areas affected by pollution caused by chemicals used in the mining industry.

On a general level the programme will advocate for the integration of ‘green inclusive growth’ in national strategies on both the overall level (i.e. the SCADD) and sector level in order to encourage the government to explore the possibilities of greening the growth that is already envisaged in these strategies.

Implementing Integrated Water Resources Management (IWRM) on national scale has been an important component for Danish support for several decades because trans-sectorial access to water is crucial for the development of the society and a better life for people. In the new country programme, IWRM is given an even higher priority due to the fact that the scarce water resources in the region are under pressure from an increased demand for water due to population growth and socioeconomic development and the effects of climate changes. Opportunities of IWRM will be to ensure an effective groundwater and surface water resource management on basin level (through national and trans-boundary stakeholder coordination) and sub-basin level (through collaboration and dialogue with end users). A national water legislation is in place (initiated by former Danish support), and major tasks in the new programme comprise; i) Implementation of IWRM plans; ii) Implementation of the legislation including principles of “users pays” and “polluters pays”; iii) Measures for pollution prevention with focus on the mining and agricultural sector; and iv) Regional collaboration to identification and implementation of technologies and practices for adoption to climate in order to enhance resilience of communities in the face of natural disasters like droughts and flooding.

Summarize and explain climate change and green growth risks: Land tenure issues are especially important for the activities under the agricultural theme. The programme focuses on strengthening green investments. Such investments are much more likely to take place if the questions of ownership to land are unambiguous. With its objective of ensuring agricultural investments amongst women the success of the programme risks being limited by the weak position of women in land tenure questions. The programme addresses this issue by putting in place a guarantee fund with especially favourable conditions for women. The programme will not itself target the land tenure issue directly as other development partners (AFD and MCA) already have interventions targeted at land tenure reforms.

Annex 4, page 9

Promotion of basin-based integrated water resources management constitutes a major factor in ensuring green growth and preservation of water resources in Burkina Faso. Despite the priority given by government to sustainable water resources management, focus on economic growth in e.g. mining and agriculture may lead to insufficient resources allocated to enforcement of laws and regulations regarding water resources. Identify requirements for undertaking an Environmental Impact Assessment (EIA). Categories are: [ A ] Full EIA required; [ B ] Partial EIA required; [ C ] No EIA required2.

Intervention Name Category A, B or C: 1: Governance Select category: C 2: Water and Sanitation Select category: B 3: Economic Growth in the Agricultural Sector Select category: B

Will national regulations and procedures for EIA be applicable to activities of the programme that have potential environmental impacts? – Yes - No

When will the EIA be undertaken? Both the activities under the water and the agriculture theme include support for construction of infrastructure of different size. According to the national EIA legislation all projects of a certain type and scale must be screened to assess whether a full, a partial or no EIA is required. Some of the activities under the two themes might require a full EIA.

Next Steps – process action plan Need for further work during the preparation, appraisal and implementation of the programme arising from the climate change and green growth screening:

Suggested activity: Action needed Comments and elaboration: 1. Assessment of green growth and climate change opportunities in sector development plan. 2. Assessment of capacity for green growth and climate change management in the sector/country. 3. Prepare ToR for and conduct Country Analytical Work. 4. Prepare ToR for and conduct SEA(s) of sector policies or plans. 5. Prepare ToR for and conduct EIA(s) for programme interventions. 6. Initiate donor harmonisation in the sector on See comment below green growth and climate change. 7. Other...? Taking as point of departure a study made in 2013/14 on green growth challenges and opportunities, the programme will, in its general dialogue with the government, advocate for a stronger focus on green growth in the revised SCADD as well as in the ongoing dialogue with the government. The annual dialogue in the CSDs (Cadre de Dialogue Sectorielle) constitutes a window of opportunity for involving other development partners

2 Category A = Intervention is likely to have adverse environmental impacts that may be sensitive, irreversible, and significant in scale/scope; B = Intervention is likely to have negative impacts, but which are less significant, not as sensitive, numerous, major or diverse; C = The environmental risk of the intervention are of little or no concern.

Annex 4, page 10

in the advocacy for green growth.

Signature of Screening Note Ouagadougou, May 15th 2014

………………………………………………………. (name) Danish Mission in Ouagadougou

Reference list

CEP (2006), Délégation de la Commission Européenne « Profil Environmental du Burkina Faso »

COWI (2014), « Mission Exploratoire en vue de la Croissance Verte au Burkina Faso – Note de Synthèse »

Faramarzi, Monireh, Karim C. Abbaspour, Saeid Ashraf Vaghefi, Mohammad Reza Farzaneh, Alexander J. B. Zehnder, Raghavan Srinivasan and Hong Yang (2012), “Modeling impacts of climate change on freshwater availability in Africa”, in Journal of Hydrology, vol. 480, pp. 85- 101

IPCC (2014), Intergovernmental Panel on Climate Change, Working Group II, Assessment Report 5, Chapter 22, “Africa”

Ministère de l’Environnement et du Cadre de Vie et SP/CONEDD (2007), “Programme d’Action National d’Adaptation à la Variabilité et aux Changements Climatiques (PANA du Burkina Faso)”, assessed 5/3 2014 at: http://unfccc.int/resource/docs/napa/bfa01f.pdf

Ministère de l’Environnement et du Développement Durable (2014), “Plan National d’Adaptation aux Changements Climatiques (PNA) du Burkina Faso” (source: Ambassade Royal de Danemark/Ignace)

Ministère de l’Environnement et du Tourisme (1994), « Plan d’Action National pour l’Environnement »

SAP (2014), UNEP-GEF Volta Project, “Strategic Action Programme for the Volta Basin”, Accra, 2014

SCADD, Stratégie de Croissance Accélérée et de Développement Durable 2011-2015

Stockle, Claudio O., « Environmental Impact of Irrigation: a review », State of Washington Water Research Center, Washington State University de Wit, Maarten and Jacek Stankiewicz (2006), “Changes in Surface Water Supply across Africa with Predicted Climate Change”, in Science, vol. 311, no. 5769, pp. 1917-1921

Annex 4, page 11

Wittig, Rüdiger, Konstantin König, Marco Schmidt and Jörg Szarzynski (2007), ”A Study of Climate Change and Anthropogenic Impacts in West Africa”, in Environmental Science and Pollution Research, vol. 14, no. 3, pp. 182-189

Annex 5, page 1

RESULTS FRAMEWORK - BURKINA FASO COUNTRY PROGRAMME

1. GOVERNANCE THEMATIC PROGRAMME

Thematic Good Governance and Human Rights Programme Thematic Strengthen Respect, Protection and Promotion of Human Programme Rights Objective Impact Indicator  Trust between police and citizen (Improved)  Access to justice and legal aid (Improved)  Independence of justice (Reinforced)  Protection of rights and liberty of individuals (reinforced)  Capacity of demand side accountability mechanisms (civil society); (Improved)  Capacity of women to claim rights (e.g. land, economic, political); (Improved)

Engagement Title Human Rights Commitments Engagement Facilitate implementation of human rights commitments Objective

Outcome indicator Number of cases of human rights violations mentioned in independent reports (from programme-budget of MDHPC – Ministry of Human Rights)

Baseline Year 2016 To be defined by MDHPC Target Year 2020 To be defined by MDHPC ; decrease of XX% in number of cases of human rights violations as mentioned in independent reports, in particular number of women and children suffering from physical violence.

Output result Fundamental rights are effective and the UPR (Universal Periodic Review) recommendations are implemented (from programme-budget of MDHPC) Output indicator  The number and categories of UPR recommendations implemented (SCADD Matrix N° 26) Baseline Year 2016  2nd UPR: Mid-term reports implementation of 35% of recommendations accepted by Burkina Faso, including 50% related to women and children. Target Year 2020  3rd UPR: Midterm review reports implementation of 35% of the recommendations accepted by Burkina Faso, including 50% related to women and children.

Annex 5, page 2

Engagement Title Enhancement of Human Rights Engagement To strengthen the independence of the judiciary system and Objective access to justice

Outcome indicator Positive improvement in the perception of judiciary system services by target communities measured by a final perception survey in Burkina Faso Baseline Year 2016 Perception surveys Target Year 2020 Final perception surveys measure a positive change in how judiciary system services are viewed by the public.

Output result Judicial actors are better recruited, better trained, better protected (action plan 2014-2016 for the independence of justice, axis 2) Output indicator  Prisoners awaiting judgement (source: annual Statistical report of the Ministry of Justice; April 2013)  Judicial actors trained following the new text on judicial organization available (action plan 2014-2016 for the independence of justice, axis 2) Baseline Year 2016  To be defined with ministry; Prisoners awaiting judgement : 1.751 in 2012 (source: annual Statistical report of the Ministry of Justice; April 2013)  To be defined with ministry; number of Judicial actors trained following the new text on judicial organization Target Year 2020  To be defined with ministry; Decrease of XX the number of prisoners awaiting judgement : 2.410 in 2009; 1.751 in 2012 (source: annual Statistical report of the Ministry of Justice; April 2013)  To be defined with ministry; 100% of Judicial actors trained following the new text on judicial organization

Output result Public judiciary services are accessible, respected and dynamic (action plan 2014-2016 for the independence of justice, axis 3) Output indicator Average processing time for a civil case (source: annual Statistical report of the Ministry of Justice; April 2013) Baseline Year 2016 2 months and 21 days in 2012 (source: annual Statistical report of the Ministry of Justice; April 2013) Target Year 2020 To be defined by ministry: Reduction of X days of the average processing time for a civil case (4 months and 15 days in 2009; source: annual Statistical report of the Ministry of Justice; April 2013)

Engagement Title Protection of Human Rights

Annex 5, page 3

Engagement To reinforce the capacity of the police to protect all citizens Objective without discrimination

Outcome indicator Positive improvement in the perception of police services by target communities (especially the marginalised segments of the population) measured by a final perception survey in 3 regions (Sahel, Centre-North and East Baseline Year 2016 Perception surveys in 3 regions Target Year 2020 Final perception surveys measure a positive change in how policing activities are viewed by the public in the 3 regions targeted by the programme.

Output result Local police centres are able to deliver human rights protection services, to respond and attend correctly to human rights complaints presented to them by local citizens within a period of XX, depending on severity of the case, in the 3 regions Output indicator  Number of administrative police activities (administrative surveys, certificates of loss / theft, residence certificates, certification signature, certified copies, identity cards established); existing disaggregated data by region; source: annual Statistical report of the Ministry of security; June 2010  Number of human rights complaints registered at the police centres: number of rapes /domestic violence registered; existing disaggregated data by region; source: annual Statistical report of the Ministry of security; June 2010 Baseline Year 2016  To be defined with MATS (Ministry of Security) in the 3 regions; Number of administrative police activities: 456.031 in 2008 (existing disaggregated data by region; source: annual Statistical report of the Ministry of security; June 2010)  Number of human rights complaints registered at the police centres; To be defined with MATS in the 3 regions; Increase of XX % number of rapes/ domestic violence registered: 283 in 2008 Target Year 2020  To be defined with MATS in the 3 regions; increase of XX% the number of administrative police activities: 381.522 in 2002 (existing disaggregated data by region; source: annual Statistical report of the Ministry of security; June 2010)  Number of human rights complaints registered at the police centres; To be defined with MATS in the 3 regions; number of rapes registered: 128 in 2002 (existing disaggregated data by region; source: annual Statistical report of the Ministry of security; June 2010)

Annex 5, page 4

Output result Local police centres are able to respond to and handle an increasing number of human right cases, by investigation or request from citizens in the 3 regions Output indicator Number of judiciary activities: preliminary police investigation activities; (existing disaggregated data by region; source: annual Statistical report of the Ministry of security; June 2010) Baseline Year 2016 To be defined with MATS in the 3 regions; 11.669 in 2008 (existing disaggregated data by region; source: annual Statistical report of the Ministry of security; June 2010) Target Year 2020 To be defined with MATS in the 3 regions; 4.682 in 2002 (existing disaggregated data by region; source: annual Statistical report of the Ministry of security; June 2010) Note: Number of human rights cases transferred or presented to a judge depends on the capacity of police to investigate, on the capacity of the prosecutor to prepare, and the capacity of the judge to assess the cases. The police officers must have better instructions and procedures, have the capacity, and the prosecutors and judges also trained and have increased capacity to deal with cases

Engagement Title Promotion of Human Rights Engagement Promote respect for human rights through strong, vocal and Objective independent civil society organisations

Outcome indicator  Visibility and awareness of humans rights amongst the most excluded segments of the populations (increased)  Assistance to rights holders in claiming their rights (increased)  Hold duty bearers at central and decentralized level to account  Assist in bringing human rights cases to justice,  Involve and sensitize traditional /religious leaders about human rights and women’s rights in particular and conflict prevention.  Financial independence of CSOs

Baseline Year 2016  Number of people who participated in awareness session on human rights; 500.000 in 2016 from action 1.1 of programme-budget of MDHPC  Number of people receiving legal aid  Number of human rights cases raised with local and central administrative authorities  CSOs co-finance 15% percentage of contribution demanded from Denmark.  Target Year 2020  Increase of XX% number of people who participated in awareness session on human rights  Increase in number of people receiving legal aid Increase in number of human rights cases raised

Annex 5, page 5

with local and central administrative authorities  CSOs co-finance 50% percentage of contribution demanded from Denmark.

Output result CSOs are increasingly autonomous and able to promote Human Rights, Women’s rights and Civilian Engagement Output indicator % of financial independence Baseline Year 2016 To be measured based on the previous support Target Year 2020 50% of financial independence obtained by each CSO

Output result An increasing no of CSOs increasingly claim the rights of their members towards the public authorities, are holding the government to account for its gender promotion activities (MPFG – Ministry for promotion of women and gender), lobby for full implementation of the Convention on the Elimination of All forms of Discrimination Against Women (CEDAW) and the Maputo Protocol on Women’s Rights are working for ending sexual and gender-based violence (SGBV) Output indicator  Xxx indicators on SGBV Baseline Year 2016  To be defined; Target Year 2020  To be defined basket fund actors

Output result The capacities of CSOs to develop activities that will Counter Violent Extremism (CVE) are reinforced Output indicator  Number of Actions to Build the Capacity of Civil Society and the Media in respect of CVE;  Number of local conflicts on natural resource access (source ministries Justice, Security, Agriculture, Livestock) Baseline Year 2016  To be defined; numbers of media sensitized on CVE issues;  To be defined; number of local conflicts on natural resource access (source ministries Justice, Security, Agriculture, Livestock);  To be defined; numbers of encounters between CSOs and religious leaders to promote human rights;  To be defined; CSOs working with youth and women on conflict prevention. Target Year 2020  Increase in numbers of media sensitized on CVE issues;  Reduction of xx % of the number of local conflicts on natural resource access (source ministries Justice, Security, Agriculture, Livestock)  Increased numbers of encounters between CSOs and religious leaders to promote human rights  Increased numbers of CSOs working with youth and women on conflict prevention

Annex 5, page 6

2. WATER AND SANITATION THEMATIC PROGRAMME

Thematic Water and Sanitation Programme Thematic Ensure a sustainable management of water resources and an Programme equitable access to water and sanitation Objective Impact Indicator A composite indicator will be used:  Reduction of conflicts related to water (Total number of conflicts in year N/total number of conflicts in year N-1)  Reduction of number of communes with an access rate below 65% (Equity in access to drinking water)

Engagement Title Sustainable and Concerted Management of Water Resources

Outcome Indicator Minimisation of pollution of water resources Baseline Year 2013 Baseline study to be conducted Target Year 2020 To be defined

Output Indicator Number of meetings held by the decision making bodies of the water agencies (agency boards & basin committees) Baseline Year 2013 0 Target Year 2020 15

Output Indicator Contribution Financière en matière d’Eau (CFE) - Amount collected (in million FCFA) Baseline Year 2013 80 Target Year 2020 600

Output Indicator Number of Water Basin Master Plans (SDAGE) elaborated and approved Baseline Year 2014 2 Target Year 2020 5

Output Indicator Number of functional local water committees (CLE) Baseline Year 2013 36 Target Year 2020 To be defined

Engagement Title Enhancement of Equity in Access to Drinking Water

Outcome Indicator Evolution of number of communes with an access rate below

Annex 5, page 7

65% (Equity in access to drinking water) % of functional Rural Water Supply Schemes Baseline Year 2013 Number of communes with an access rate below 65%: 154 % of functional Rural Water Supply Schemes: 77 Target Year 2017 Number of communes with an access rate below 65%: 50 % of functional rural water supply schemes: 97

Output Indicator Number of communes with an access rate below 40% Baseline Year 2013 26 Target Year 2020 To be defined

Output Indicator Rural water supply schemes managed under PPP arrangements Baseline Year 2013 41% Target Year 2020 80% Output Indicator % of women in decision making positions in water user committees Baseline Year 2012 34% Target Year 2020 40%

Output Indicator Communes with annually updated communal maps and data on water supply access rates Baseline Year 2014 0 Target Year 2020 200 rural communes

Engagement Title Promotion of enhanced Hygiene and Sanitation

Outcome Indicator Number of villages declared “Open Defecation Free”. Baseline Year 2014 Not known Target Year 2020 To be defined

Output Indicator % of villages provided with access to water supply under the programme declared “open defecation free” Baseline Year 2014 Not known Target Year 2020 100%

Engagement Title Mainstreaming of HRBA Principles into Sector Activities Outcome Indicator National policy and subsector strategies integrate HRBA principles in planning, execution, and monitoring of activities.

Annex 5, page 8

Baseline Year 2014 0 Target Year 2020 The national sector policy and the strategies for water supply, sanitation, and integrated water resources management integrate HRBA principles

Output Indicator Number of duty bearer representatives trained in application of HRBA principles in water and sanitation sectors – national level (ONEA, MEAHA), regional level (DREAHA, regional councils, governorates) and local level (communes) Baseline Year 2013 0 Target Year 2020 National level : 50 (ONEA, MEAHA) Regional Level : 200 (all DREAHA, regional councils, governorates) Local level: 100 (communes working with the programme)

Output Indicator Water User Committees sensitized on their rights and obligations in water and sanitation service delivery and management Baseline Year 2014 0 Target Year 2020 100% of communities gaining access to drinking water and improved sanitation through the programme

Output Indicator Increased public awareness on equity, rights and obligations related to water supply and sanitation delivery Baseline Year 2014 Target Year 2020 Newspaper articles: Radio broadcasts HRBA sector toolkit in French and main local languages:

3. AGRICULTURAL ECONOMIC GROWTH THEMATIC PROGRAMME

Thematic Programme Economic Growth in the Agricultural Sector Thematic Programme Contribute to growth in agricultural productivity, in added value and Objective income with a view to an increase in national economic growth and reduction of poverty Impact Indicator Development of SME/SMI: Number of processing SME/SMI created per year increased from 80 in 2012 to 140 in 2017 Strengthening of the agricultural sector: Cereal production increased from a coverage rate of 124% in 2012 to 140% in 2017 (of volume needed on a national level to meet 80% of needed calorie intake).

Annex 5, page 9

Engagement Title Support to Entrepreneurship and the Private Agricultural Sector - non financial services

Outcome Indicator a) Increase of business turn-over among supported private operators b) Increase of business turn-over among directly supported farmers associations c) Increase of staff levels (employees/members) in supported private businesses and associations Baseline Year 2013 Baseline studies to be conducted and integrated into the monitoring system of the Maison de l’Entreprise as part of its monitoring system Target Year 2018 a) +20% b) +10% c) Enterprises: 20% of which at least 40% women and young people, Associations: 10% of which at least 40% to women and young people

Output Indicator Number of private enterprises/associations of selected value chains having benefitted from non-financial support Baseline Year 2013 0 Target Year 2018 500 very small enterprises, 150 small and medium size enterprises and 7 associations of which at least 30% women and young people

Output Indicator Number of private operators directed towards financial support mechanisms Baseline Year 2013 0 Target Year 2018 150 private operators

Output Indicator Volume of subsidies given to green investments Baseline Year 2013 0 Target Year 2018 Projects financed with a total value of 1,7 billion FCFA

Engagement Title Support to Entrepreneurship and the Private Agricultural Sector - financial services

Outcome Indicator a) Increase of primary production in selected value chains (in tons) b) Increase of production in selected value chains being commercialised (in tons) c) Increase of primary production in selected value chains being processed (in tons) Baseline Year 2013 In Est Centre-est Nord Centre-Ouest Sahel tons Prod Shea 967,38 3.468,44 3.136,96 356.910,6 - uced nut 2 2 3 36 Gum - - - - 752 319 Arabic Maize 111.735 93.492 8.220 131.974 5.101 Niébé 58.979 50.254 94.298 56.611 8.740 Cattle- 3.539,3 4.266,4 2.091,57 2.802 2.729,6

Annex 5, page 10

meat3 Com Shea 478,600 3.338,25 2.628,91 173.030,6 - merci nut 0 5 64 alise Gum - - - - 563,805 d Arabic Maize Niébé Cattle 123.951, 369.3766 148.193,27 277.4968 - 25 meat4 Proce Shea 488,78 130,192 508,048 183.879,9 - ssed nut 2 71 Gum - - - - 188,514 Arabic Maize Niébé Cattle- meat9

Target Year 2018 a), b) and c): +10% Note: There is a lack of available data for especially commercialisation and processing for the selected value chains. The programme will address this issue by conducting a baseline study.

3 2012 in tons 4 2012 in UBT 5 Partial numbers (markets in Fada & Nadiabonly) 6 Markets in Garango, Guelwongo, Bittou and Pouytenga 7 Markets in Youba and Yilou 8 Markets in Dori, Gorom and DFjibo 9 Non available

Annex 5, page 11

Output Indicator Number of medium-term loans given by institutional institutions (2 commercial banks) to targeted value chains (investment and working capital) Baseline Year 2013 0 Target Year 2018 100 medium term loans of which at least 40% to female operators

Output Indicator Number of guarantees granted by guarantee fund SOFIGIB (Société Financière de Garantie Interbancaire du Burkina) Baseline Year 2013 0 Target Year 2018 100 guarantees of which at least 40% to female operators

Engagement Title Support to Improving the Framework Conditions for the Agricultural Sector

Outcome Indicator a) Increase of primary production in selected value chains (in tons) b) Increase of production in selected value chains being commercialised (in tons) c) Increase of primary production in selected value chains being processed (in tons) Baseline Year 2013 See outcome indicator above Target Year 2018 a), b) and c): +10%

Output Indicator Sector strategies and policy developed or revised Baseline Year 2013 The national programme for the rural sector (PNSR) approved but not operationalized. The current Rural Development Strategy (SDR) from 2004 needs revision as it is only setting the perspectives to 2015. Target Year 2018 The PNSR and its tools finalised, the SDR revised and made public, the LOA (Loi d’Orientation Agricole) finalised, approved and made public, and an Agricultural Fund established

Output Indicator Number of public agricultural facilities related to selected value chains constructed and managed under Public-Private Partnership (PPP) arrangement Baseline Year 2013 0 Target Year 2018 Number of public facilities, benefitting selected value chains, constructed and managed in PPP: 2-3 per region and per value chain.

4. DEVELOPMENT CONTRACT (GENERAL BUDGET SUPPORT)

Thematic Programme Development Contract (GBS) 2016-2020 Thematic Programme Ensure a strong, sustainable and inclusive economic growth leading Objective to increase of revenues and enhancement of livelihood (SCADD) Impact Indicator  Reduced poverty incidence (cf. 35% in 2015)  Average real GDP growth rate of 10.8 % from 2016 to 2020;

Annex 5, page 12

 Primary education for all in 2020;  Enhanced gender equality and women’s empowerment;  Reduced infant mortality (below 5 years);  Improved maternal health;  Continued achievement of decreases in HIV/AIDS, malaria and other diseases;  Enhanced effectiveness of public policies and of PFM.

Engagement Title General Budget Support and support to the PFM reforms

Outcome Indicator a) Growth rate of real GDP b) Average annual inflation rate c) Sound PFM (sources : PEFA, IMF) d) Poverty incidence e) Index on perception of corruption (IPC of Transparency International) Baseline Year 2016 To be defined by the SCADD 2016-2020 Target Year 2020 To be defined by the SCADD 2016-2020

Output Indicator Real GDP growth =/>10% Baseline Year 2016 10.8% Target Year 2020 To be based on SCADD performance matrix 2018-2020

Output Indicator Respect of UEMOA norm regarding average annual inflation rate Baseline Year 2016 Less than 3% 10 Target Year 2020 Less than 3%

Output Indicator Reduced poverty incidence Baseline Year 2016 Less than 35% Target Year 2020 Will be based on objective agreed on in the SCADD 11 Output Indicator Index on2016 perception-2020 of corruption Baseline Year 2016 42/100 Target Year 2020 Cf. IPC Transparency International Output Indicator Budget execution rate (revenues, expenditure, priority sectors) Baseline Year 2016 Cf. Performance matrix of the SCADD Target Year 2020 Cf. Performance matrix of the SCADD

Output Indicator Transparency in public procurement Baseline Baseline 2016 Open public tender procedure (more than 85%) Exceptional Procedures (less than 15%) Target Target 2020 Cf. Performance matrix of the SCADD

Output Indicator Increase in controls carried out by the Cour des Comptes Baseline Year 2016 cf annual report from the Cour des Comptes Target Year 2020 cf annual report from the Cour des Comptes

10 The UEMOA reference is 3% 11 The preparation of the second cycle of the SCADD is on-going. Final document is expected to available in December 2015.

Annex 5, page 13

Output Indicator Recovery rate on tax revenues Baseline Baseline 2016 More than 94% Target Target 2020 Cf. Performance matrix of the SCADD

Output Indicator12 Index on perception of budget transparency

Baseline Year 2016 0.55

Target Year 2020 1

Output Indicator Index on perception of accountability Baseline Year 2016 0.69 Target Year 2020 1

Output Indicator Index on perception of corruption (Transparency International) Baseline Year 2016 42/100 Target Year 2020 Reference to indexes of Transparency International and of REN-LAC

Output Indicator Level of public access to information related to PFM and to the fiscal policy: Proportion of CSOs and medias with access to main published budgetary documents Baseline Year 2016 Public access to budgetary information: 50% Target Year 2020 100% (planned surveys by CIFOEB)

Output Indicator Proportion of CSOs and medias participating in the budgetary process Baseline Year 2016 33% Target Year 2020 60% (planned surveys by CIFOEB)

12 The following five output indicators concerning CIFOEB and REN-LAC are for administrative reasons included in the Governance Thematic Programme with a total budget of 8 million DKK.

Annex 6, page 1 RISK MANAGEMENT MATRIX

Contextual Risks Context: Country Programme Burkina Faso - 2016-2020 File No:

Risk factor Likelihood Background to assessement Impact Background to assessment Risk response if applicable / potential effect on development cooperation in context 1 Political instability and deterioration in Likely The political situation remains fragile: Major May adversely impact on planned activities Acceptance human rights Presidential elections are due for 2015. including on the development contract President Compaoré, now in power for 27 (General Budget Support). Violent years, is barred from seeking re-election in confrontations or suspension of democratic 2015 by a constitutional limitation of processes could necessitate a major terms. Speculations that the President will rethinking of Denmark's engagement in attempt a revision of the Constitution Burkina Faso (article 37) to remain in power have been met by fierce contestation from the opposition. Political frustrations are further aggravated by marked socioeconomic inequalities. Major/violent confrontations are unlikely but cannot be excluded entirely.

2 Regional instability Likely The Malian conflict is a potential source of Minor May lead to increased military presence Via several regional initiatives (including the Sahel Programme). destabilisation although Burkina has not and renewed inaccessiblity of nothern Denmark is particular active both in Burkina Faso and Mali yet experienced national conflicts related regions in the country which are among the regading prevention and countering violent extremism and to ethnic question or radical religious poorest in Burkina. promoting pease and stability. movements. While Burkina Faso has received a significant number of Malian refugees, the instability of its neighbours has not spread to Burkina. The regional illicit flow of arms, drugs and trafficked persons might also impact Burkina Faso. Four mines employing a large number of expatriates are located near the border to Mali and could be targeted by terrorist groups from Mali or Niger. 3 Social crisis Likely Despite an economic growth rate of 5.6% Major May contribute to exacerbate social and Continued dialogue with Government e.g. in the framework of the during the last 10 yrs, poverty levels are political instability. The government has Development Contract (GBS) of adequate and balanced budget still high in parts of the country. Burkina handled such crises previously, but may be allocations to ensure equitable economic growth leading to higher has experienced an increased number of unable to cope in the event of violent levels of employment and social equity respectively. The Country social protests and demonstrations in escalations. programme 2016-2020 will focus on both dimensions. recent years. Population growth is high and urbanisation increasing. The large segment of youth (66% of the population is below 25 years) is increasingly claiming their right to jobs and their share of the economic growth (51% of young people between 15 and 29 years are without any employment).

Annex 6, page 2

4 Widespread corruption Likely Corruption in Burkina has been stabilising Major Continued relatively high levels of Continued dialogue with Government for the anti-corruption bill to over the past years according to corruption will negatively affects efficiency be amended and presented to Parliament again. High level of Transparency International 2013 (83rd out and quality of investments. Misuse of monitoring of procurement procedures. Strenthening of CSO anti- of xx with a score of 38/100, and is ranked donor funds will have a major impact on corruption work and monitoring of public investments is part of as the tenth least corrupt African country). affected programmes. the present Country Programme for Burkina Faso. Still corruption and impunity affect most sectors with especially the police and the judiciary seen as corrupt by the population. Despite an increased number of corruption cases releaved by CSOs and public institutions in charge of internal control, impunity of elites is still a major problem. An Anti-corruption bill was presented to Parliament during second half of 2013, but was sent it back for further revision. The political will to improve the proposed bill and re-introduce it to Parliament still has to be seen.

5 Ineffective public procurement procedures Almost Certain The absorption capacity of the Major Investments following national Continued dialogue with Goverment on the PFM reform process. government's annual investment budget procurement procedures are often delayed Government has created a forum yearly gathering all actors in the remains weak (consumption not exceeding thus leading to inability to consume annual procurement cycle. 47% in 2012). Although substantial efforts budget allocations and difficulties in have been put into improving the national achieving annual targets for activity procurement act, procedures are still very implementation. cumbersome. The UEMOA reform, likely to be implemented from 2017 will among others address this situation e.g. through introduction of fewer ex-ante approval steps. 6 Natural resources exploitation leads to Likely Increased use of fertilisers in agriculture, Major Inadequately planned and control of water Denmark is providing support to enhance and enforce the existing inequity and bad governance construction of dams and pollution from resources could result in increase in legal and regulatory framework for water resources management. mining activities are negatively impacting conflicts among user groups, higher cost of The strengthening of Water Agencies ensures dialogue and on both quality and quantity of water drinking water due to increased water collaborarion at all levels, horizontally as well as vertically resources. treatment costs and corruption. including advocacy towards decision makers for better water ressource management.

Annex 6, page 3

7 Stalling of decentralisation process Likely Allocations in the finance bill for Major Public service delivery may be slow and Continued dialogue with Government. Major donors such as EU decentralised authorities remain limited attract additional overhead costs related to and World Bank are engaging in the sector. Competition among (4.27% of the national budget in 2013). capacity development (TA, support from political parties may lead to improved response to local demands. Release of funds is often considerably government institutions).Weak capacity at delayed thus making it difficult for rural commune level might also affect their communes to absorp these before the end ability to ensuring accountablity, of the budget year. Transferred funds are transparency and participation of not necessarily audited in an adequate population in decisions on service delivery. way. Especially rural communes are lacking both human and material resources to ensure adequate service delivery in decentralised sectors.

8 Economic growth does not translate into Likely From 2000 to 2010 GDP has increased by Major Lack of substantial reduction of poverty The Troika representing the donor community repeatedly draws significant reduction of poverty levels 5% on average. Poverty has slightly might fuel further social unrest and Government's attention to this problem. The Government and the decreased from 2003 (51.3%) to 2009 discontent . Equality in access to social DPs have agreed on an annual livelihood survey (Enquête (46.7%). The SCADD aims at a poverty rate services will not improve. It will be difficult Multisectorielle Continue - EMC). of 35% in 2015. This seems difficult to to achieve the government's poverty attain. Recent data are not available. With targets. a rapid population growth (3.1%), a main challenge remains in terms of translating economic growth into reduction of poverty.

Annex 6, page 4

Programmatic and Institutional Risks Title: File No: Programmatic Risks

Risk factor Likelihood Background to assessement of likelihood Impact Background to assessment to potential Risk response Combined residual impact risk Governance Thematic Programme P1 Lack of consensus between public and civil Unlikely Increasing divide between the state and its Minor Dialogue between state and civil society Mitigation: extensive information society concerning need for governance citizens. Rapid urbanization, poor difficult to implement, lack of campaigns, civil society continuously reforms distribution of the economic growth, cost commitment/political will. invited to participate in reform initiatives, of living increases without being off-set maintain open public / civil society increased income, high unemployment dialogue. among young people, poor governance causes riots and demonstrations (riots in 2011, partly violent demonstrations in 2013).

P2 Lack of adequate baseline statistics to Likely Study on indicators carried out end Major Results measurement and impact Several high level meetings held on results monitor development in governance 2013/beginning 2014 by the Ministry of assessment made difficult measurement leading to study undertaken, indicators Human Rights but will take time to increased budget allocation foreseen in the implement recommendations of the study finance bills of 2014 - 2016, and process is and ensure availability of funds to establish closely followed by Embassy. a monitoring system.

P3 Limited technical and administrative Likely Especially junior ministries in government Minor All planned actions are not implemented; Mitigation: Establishment of support capacity of some partners impact have seen a high turn-over of senior staff utilization of the budget is low. systems and capacity building: technical achievements of results. replaced by younger and untrained staff as assistance, training, increase in staff and well as understaffing. resources planned for 2015 and 2016 in official government budgets for governance sector ministries. Acceptance: maintain national leadership.

Water Thematic Programme P4 National sector policy and strategies Unlikely Sector Policy will be revised during 2014- Major Danish obejctives, results and indicators High level discussions have been held on beyond 2015 are not defined 2015. National programmes for water regarding equal access to water supply and strategies and expected outputs with supply/sanitation and for IWRM end in sanitation may not be in line with sector ministry representatives. Embassy 2015. New strategies yet to be elaborated. government will closely follow both the process for the new policy and preparation of new national water supply/sanitation and IWRM strategies

P5 Equity in distribution of water and Likely Current focus in national water Minor Disparities in access to water will remain Close dialogue between water DPs and sanitation services not sufficiently priorited implementation policy is on achieving high and poverty levels not lowered. Government on new water policy and national coverage and not particularly on national implementation programme, both providing services to poor or marginalised being formulated in 2014-2015. New people. programme to focus specifically on equity and a HRBA approach in sector.

Annex 6, page 5

P6 Vested interests regarding management Likely There might be different interests among Minor Without high level polical commitment Water Agencies are being reinforced and and protection of water resources national stakeholders within the towards protection of water resources, will be increasingly financial independent agriculture and mining sectors on growth current and future legal and regulatory with collection of the abstraction and vs environmental protection. framework could be partly ignored or pollution fee (CFE). circumvented (e.g. payment of abstaction and pollution fees) and objectives and results of support not achieved.

P7 Ineffective procurement procedures delay Likely Inappropriate procurement planning and Major Non achievement of objectives/results and National procedures for transfer of funds Implementation tideous national procurement procedures low budget execution rates. for enhancing equity in access to drinking delay implementation of planned activities. water will be followed but channeled through a parastatal institution (ONEA) with much better procurement management.

Agriculture Thematic programme P8 Economic operators reluctant to move to Likely 90% of all enterprises are individual or Major Formalisation of enterprises is considered a The Maison de l'Entreprise (ME) in which formal sector family-run. Incentive to move to formalised prerequiste for e.g. access to credit and programme is anchored has a unit sector is weak due to cumbersome fiscal creation of jobs officially registrered and providing assistance to formalisation of and administrative procedures and applying existing regulations on work informel entreprises and the ME has corruption. conditions and social security. established a simplified system for enterprise registration. Programme further provides support to elaboration of business plans, organisational audits, etc...).

P9 The programme not contributing to Likely Except for the farmers associations, Minor May affect programme contribution to 1. A particular attention will be given to enhanced conditions for poorest rural programme is targeting enterprises with an poverty reduction in rural areas. strenghtening of farmers organisations; 2. agricultural operators economic growth potential thus not having The value chain approach implies that all large majority of agricultural operators as levels of commodity line will be addressed direct target groups. including production in which poorest segments of population operate; 3. It is anticpated that reinforcement of commercial and transformation potentials will positively affect job opportunities; 4. Access of poorer segments to constructed public facilities will be ensured and PPP should create jobs; and 5. Medium term financial services will be made available to farmers organisations and women groups.

P10 Weak dialogue between agricultural sector Almost Certain Level of organisation among producers and Minor If current fiscal and administrative Continued dialogue with government on operators and government on other actors in selected value chains procedures are not amended, operators adoption of "Loi de l'Orientation Agricole". improvement of legal and regulatory remains weak. The governement has will be reluctant to entering into formal Development Engagement on Non- framework establisked a department in Min. of Agric. sector. If private operators not financial services will emphasise provision which has as its mandat to promote sector strenghtened and better organised, they of traning and consultancy services to dialogue btween government and private will remain weak in defending their farmers organisations and value chain rural operators. However, this department interests in the dialogue with national operators. Further support to sector is not yet functional and lacks strategic decision makers on e.g. price fixation, ministries to develop norms et standards in vision. norms/standards, need for quality the selected value chains. inputs,etc.

Annex 6, page 6

P11 Non-financial and financial services offered Likely Programme is designed on the basis of a Major Poorest/marginalised groups may not A more pro-active approach, including a through programme not benefiting poorer demand-driven approach to programme benefit from programme services. communication streagy to service delivery or marginalised groups/operators services. by programme is currently discussed.

P12 Weak availability of green technologies Likely Experiences and research with the use of Major Constraints in the introduction of green Applied research in green technologies adapted to the selected value chains green technologies in the selected value technologies will limit the greening of the targeted specific interventions in the chains are limited. growth that is supported [or ensured] by selected value chains will be supported by the programme. the programme.

General Budget Support P13 Non ability to implement the State Budget Likely The new context of a harmonised Minor The expectations of the DPs including In order to respect the criteria set out by framework for public finance management Denmark are as follows: 1. The availability the UEMOA, the Government has initiated by the UEMOA, in particular the of budget information making it possible to committed itself to submit to Parliament a introduction of Programme Budgets, calls effectively implementing public policies first test Programme Budget annexed to for a clarification of e.g. how and who is and reforms that preserve the the national budget 2015. It is expected going to ensure leadership of the process in fundamentals of good budget that Programme Budgets will be fully the Ministry of Economy and Finance and management. Result based management, a implemented from 2017. The Government which quality of accounting information is principal pillar of the Programme Budget, has also created a technical secretariat to required in the context of the Programme will require a need for new more detailed the steering committee for the Programme Budgets. information respecting international norms Budget. Denmark will continue its support and provided within well-determined to public finance reforms. deadlines.

P14 Insufficient internal and external control Likely Certain areas of PFM has not yet been Minor The 2010 and 2013 PEFA score on the The internal control institutions, which taken sufficiently into account or extent, the nature and the monitoring of have been profoundly reformed from 2007 progressed. This is in particular true for external control was D+, and the score and onwards, have started performance control. The external control is the related to the presentation of the annual based controls in addition to the control of responsibility of the court of auditors government budget to Parliament was C+. the regularity of expenditure. Several (Cour des Comptes) and of the Parliament. The feeling of impunity is reinforced by the control and internal verification missions The verifications conducted by the fact that the control reports drafted by the have been carried out and monitoring of Parliament are rare due to lack of Cour des Comptes are not submitted to follow-up on and adherence to their resources. The Cour des Comptes is Parliament and that control of public recommendations is being done. DPs insufficiently staffed. institutions remains insufficient. A major including Denmark have expressed their mismanagement scandale in the public will to support capacity development of accounts would have serious effects for the control institutions. Danish budget support.

P15 CSOs experiencing difficulties in Unlikely The legal and regulatory framework for Major The absence of a legal framework to The government expresses a will to the influencing the combat against combatting corruption is still cumbersome, combat corruption hampers the work of creation of an adequate legal framework corruption and for enhanced budget obsolete (old penal code) and not the CSOs. A continued pressure from CSOs for fighting corruption. Continued policy transparency sufficiently dissuasive. The national policy is needed in order to ensure that the new dialogue between government, DPs and for combatting corruption has been law becomes forceful and dissuasive. CSOs is highly needed. Denmark is adopted in June 2013 but government promoting a reinforced coordination commitment to implement it is an open between donors on this issue. question. A unit responsible for dealing with money laundering has been established recently. A law proposal on money laundering has been submitted to Parliament end of 2013.

Annex 6, page 7

Institutional Risks

Risk factor Likelihood Background to assessement of likelihood Impact Background to assessment of potential Risk response Combined residual impact risk Governance Thematic Programme I1 Merging of ministries after the 2015 Likely A change of government in 2015 could lead Major These changes may impact not only Government commit expresssed in national elections. to changes in the configuration of activities already planned but also the development strategy SCADD, with specific government ministries as seen several political direction and priorities as well as indicators and concrete commitments at times before. Consequently, Ministry of staffing where changes at senior level are sector level independently of composition Human Rights may again be merged with to be expected. This will thus impact the of government. Acceptance: maintain Ministry of Justice, and Ministry of Internal expected results. national leadership. Security may be merged with Ministry of Decentralisation and Territorial Administration.

Water Thematic Programme I2 Water agencies not gaining technical and Unlikely Water agencies currently depending on Major Inadequate financial and human resources Focus in Danish support to IWRM will be on financial autonomy state subsidies. Aim is that agencies will be might jeorpardise enforcement of current strengthening water agencies both mainly funded through fees on water legislation/regulation with a view to technically and financially (through water abstraction and pollution and thus ensuring protection of water resources. fees). autonomous to a high degree.

I3 Communes unable to play a key role in Likely Financial and human resources are scarce Minor Delays in activty implementation and in Infrastructure delivery provided by water and sanitation service delivery and in at decentralised level. Not all mayors achieving objectives and results and acknowledged partner with extensive applying good governance principles litterate and with a certain level of bypassing of right holders. experience in dealing with communes education . Public budget allocations arrive (ONEA). Involvement of CSOs in supporting late or not at all. good governance/HRBA principles among duty bearers (e.g. Communes) and right holders.

Agriculture Thematic Programme I4 National sector framework not in place Likely Substantial delays in finalising tools needed Minor Objectives and results in the component A coordinated DP support to for implementing the PNSR. targeting public actors might not be operationalising the PNSR and joint achieved. dialogue with sector ministries responsible for the PNSR.

Annex 6, page 8