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World Bank Documents Document of The World Bank FOR OFFICIAL USE ONLY Public Disclosure Authorized Report No: 53956-CM PROJECT APPRAISAL DOCUMENT ON A Public Disclosure Authorized PROPOSED CREDIT IN THE AMOUNT OF SDR 19.9 MILLION (US$30 MILLION EQUIVALENT) TO THE REPUBLIC OF CAMEROON FOR A Public Disclosure Authorized COMPETITIVE VALUE CHAINS PROJECT May 27, 2010 Finance and Private Sector Development Country Department AFCC1 Africa Region Public Disclosure Authorized This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization. CURRENCY EQUIVALENTS (Exchange Rate Effective April 30, 2010) Currency Unit = CFA Franc (CFAF) CFAF 493 = US$1 US$1 = SDR 0.66176081 FISCAL YEAR January 1 – December 31 ABBREVIATIONS AND ACRONYMS APL Adaptable Program Loan BCA Benefit Cost Analysis CAA Caisse Autonome d'Amortissement (Autonomous Amortization Fund) CAS Country Assistance Strategy CBF Cameroon Business Forum CEMAC Communauté Economique et Monétaire de l'Afrique Centrale (Economic and Monetary Community of Central Africa) CIFOR Center For International Forestry Research CTB Cameroon Tourism Board DA Designated Account EA Environmental Assessment EMP Environmental Management Plan EPC Engineering Procurement and Construction Management ESIA Environmental and Social Impact Assessment ESMF Environmental and Social Management Framework EU European Union FAC Fonds d'Appui à la Compétitivité (Competitiveness Support Fund) FEDEC Foundation for Environment and Development in Cameroon FLEGT Forest Law Enforcement, Governance and Trade FM Financial Management GDP Gross Domestic Product GEF Global Environment Facility GESP Growth and Employment Strategy Paper GoC Government of Cameroon GTZ German Technical Cooperation Agency HIPC Heavily Indebted Poor Countries HIV/AIDS Human Immunodeficiency Virus / Acquired Immune Deficiency Syndrome ICA Investment Climate Assessment ICB International Competitive Bidding ICT Information and Communication Technology IDA International Development Association IFC International Finance Corporation IPA Investment Promotion Agency IPDP Indigenous Peoples Development Plan IPP Indigenous Peoples Plan KFW Kreditanstalt für Wiederaufbau (Reconstruction Credit Institute) M&E Monitoring and Evaluation MAGZI Mission d'Aménagement et de Gestion des Zones Industrielles (Industrial Zone Planning and Management Mission) MINEPAT Ministry of Economy, Planning and Regional Development MINFOF Ministry of Forests and Fauna MINTOUR Ministry of Tourism MIS Management Information System MSME Micro, Small and Medium Enterprise MtCEO Mount Cameroun Ecotourism Organization MTR Mid-Term Review NCB National Competitive Bidding OTF On The Frontier (consultancy company) NGO Non-Governmental Organization PARCEC Planned National Competitiveness Innovation Grant Fund PASAPE Programme d'Appui et de Soutien à l'Accord de Partenariat Économique entre l'Union Européenne et l'Afrique Centrale (Support Program to Economic Partnership Agreement between European Union and Central Africa) PCFC Projet de Competitivité de Filières de Croissance (Competitive Value Chains Project) PCU Project Coordination Unit PDO Project Development Objective PNG Programme National de Gouvernance (National Governance Project) POM Project Operational Manual PPA Project Preparation Advance PPP Public Private Partnership PPPGPR Public-Private Partnership for Growth and Poverty Reduction PRSP Poverty Reduction Strategy Paper PSC Project Steering Committee PSFE Programme Sectoriel Forêt Environnement (Forest and Environment Development Program) RAP Resettlement Action Plan RPF Resettlement Policy Framework SDR Special Drawing Rights SIL Specific Investment Loan SME Small and Medium Enterprise SNV Netherlands Development Organization SOE Statement of Expenditure STD Sexually Transmitted Diseases T&T Travel and Tourism UNIDO United Nations Industrial Development Organization WTTC World Travel and Tourism Council WWF World Wildlife Fund Vice President: Obiageli Katryn Ezekwesili Country Director: Mary Barton-Dock Sector Director: Marilou Jane Uy Acting Sector Manager: Peter Mousley Task Team Leader: Vincent Palmade REPUBLIC OF CAMEROON Cameroon - Competitive Value Chains CONTENTS Page I. STRATEGIC CONTEXT AND RATIONALE ................................................................. 1 A. Country and sector issues.................................................................................................... 1 B. Rationale for Bank involvement ......................................................................................... 4 C. Higher level objectives to which the project contributes .................................................... 5 II. PROJECT DESCRIPTION ................................................................................................. 6 A. Lending instrument ............................................................................................................. 6 B. Project development objective and key indicators.............................................................. 6 C. Project components ............................................................................................................. 7 D. Lessons learned and reflected in the project design .......................................................... 15 E. Alternatives considered and reasons for rejection ............................................................ 16 III. IMPLEMENTATION .................................................................................................... 17 A. Partnership arrangements .................................................................................................. 17 B. Institutional and implementation arrangements ................................................................ 18 C. Monitoring and evaluation of outcomes/results ................................................................ 19 D. Sustainability..................................................................................................................... 20 E. Critical risks and possible controversial aspects ............................................................... 20 F. Loan/credit conditions and covenants ............................................................................... 21 IV. APPRAISAL SUMMARY ............................................................................................. 24 A. Economic and financial analyses ...................................................................................... 24 B. Technical ........................................................................................................................... 25 C. Fiduciary ........................................................................................................................... 28 D. Social................................................................................................................................. 30 E. Environment ...................................................................................................................... 31 F. Safeguard policies ............................................................................................................. 32 G. Policy Exceptions and Readiness...................................................................................... 35 Annex 1: Country and Sector or Program Background ......................................................... 37 Annex 2: Major Related Projects Financed by the Bank and/or other Agencies ................. 52 Annex 3: Results Framework and Monitoring ........................................................................ 53 Annex 4: Detailed Project Description ...................................................................................... 57 Annex 5: Project Costs ............................................................................................................... 66 Annex 6: Implementation Arrangements ................................................................................. 67 Annex 7: Financial Management and Disbursement Arrangements ..................................... 76 Annex 8: Procurement Arrangements ...................................................................................... 87 Annex 9: Economic and Financial Analysis ........................................................................... 100 Annex 10: Safeguard Policy Issues .......................................................................................... 105 Annex 11: Project Preparation and Supervision ................................................................... 113 Annex 12: Documents in the Project File ............................................................................... 114 Annex 13: Statement of Loans and Credits ............................................................................ 116 Annex 14: Country at a Glance ............................................................................................... 118 Annex 15: Map .......................................................................................................................... 120 REPUBLIC OF CAMEROON CAMEROON - COMPETITIVE VALUE CHAINS PROJECT APPRAISAL DOCUMENT AFRICA AFTFW Date: May 27, 2010 Team Leader: Vincent Palmade Country Director: Mary A. Barton-Dock Sectors: General industry and trade sector Sector Manager/Director: Peter (100%) Mousley/Marilou Uy Themes: Export development
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