Document of The World Bank FOR OFFICIAL USE ONLY Public Disclosure Authorized Report No: PAD1534 INTERNATIONAL DEVELOPMENT ASSOCIATION PROJECT APPRAISAL DOCUMENT ON A PROPOSED CREDIT Public Disclosure Authorized IN THE AMOUNT OF € 45.90 MILLION (US$50.00 MILLION EQUIVALENT) TO THE REPUBLIC OF BENIN FOR A CROSS-BORDER TOURISM AND COMPETITIVENESS PROJECT March 4, 2016 Public Disclosure Authorized Trade and Competitiveness Global Practice Africa Region This document is being made publicly available prior to Board consideration. This does not imply a presumed outcome. This document may be updated following Board consideration and Public Disclosure Authorized the updated document will be made publicly available in accordance with the Bank's policy on Access to Information. CURRENCY EQUIVALENTS (Exchange Rate Effective as of January 31, 2016) Currency Unit = XOF XOF 601 = US$1 US$1 = € 0.91612844 FISCAL YEAR January 1 – December 31 ABBREVIATIONS AND ACRONYMS ABGT Beninese Agency for Major Works (Agence Béninoise des Grands Travaux) B2B Business-to-Business CAGAO Collective Groups and Associations of Artisans of Ouidah CGA Business Development Centers (Centres de Gestion Agréés) DTIS Diagnostic Trade and Integration Study FNDPT National Tourism Development and Promotion Fund (Fonds National de Développement et de Promotion du Tourisme) GUFE Single Window for the formalisation of Enterprises (Guichet Unique de formalisation des entreprises) PCU Project Coordination Unit ABE Environmental Agency of Benin (Agence Béninoise pour l’Environnement) ADTRP Tourism Development Agency (Agence de Développement Touristique de la Route des Pêches) BCEAO West Africa States Central Bank (Banque Centrale des Etats de l’Afrique de l’Ouest) BDS Business Development Services BOAD West African Development Bank (Banque Ouest Africaine de Développement) CAA Autonomous Sinking Fund (Caisse Autonome d’Amortissement) CBCA Community Biodiversity Conservation Area CESMP Contractor Environmental and Social Management Plan CIGOP Competitiveness and Integrated Growth Opportunity Project CPS Country Partnership Strategy CSG Community Support Group DA Designated Account DCA Delegated Contracting Agency EOI Expression of Interest ERR Economic Rate of Return ESIA Environmental and Social Impact Assessment ESMF Environmental and Social Management Framework ESMP Environmental and Social Management Plan FBS Fixed Budget Selection FM Financial Management GDP Gross Domestic Product GoB Government of Benin GPRS Growth and Poverty Reduction Strategy GRS Grievance Redress Service HIV Human Immunodeficiency Virus IDA International Development Association IFC International Finance Corporation IGF General Inspectorate of Finance of Benin IRR Internal Rate of Return IS Implementation Support LCS Least Cost Selection M&E Monitoring and Evaluation MCAAT Ministry of Culture, Literacy, Crafts and Tourism (Ministère de la Culture, de l'Alphabétisation, de l'Artisanat et du Tourisme, MCAAT) MDEAP Ministry of Development, Economic Analysis, and Prospective MICEs Meetings, Incentives, Conventions, and Events MPA Marine Protected Areas MSMEs Micro, Small, and Medium sized Enterprises MTR Mid-Term Review NCB National Competitive Bids NGOs Non-Governmental Organizations NPV Net Present Value O&M Operations and Maintenance PAPS Project Affected People / Persons PC Project Coordinator PDO Project Development Objective PMP Pest Management Plan PMU Project Management Unit PP Procurement Plan PPD Public- Private Dialogue PSC Project Steering Committee QCBS Quality and Cost-Based Selection RAP Resettlement Action Plan RPF Resettlement Policy Framework RSF Risk-Sharing Facility SC Strategic Committee SMEs Small and Medium sized Enterprises SSS Single Source Selection TA Technical Assistance TC Technical Committee TIMS Tourism Statistics and Information Management System TOR Terms of Reference TSA Tourism Satellite Account TTL Task Team Leader UNDB United Nations Development Business WBG World Bank Group Regional Vice President: Makhtar Diop Country Director: Pierre Laporte Senior Global Practice Director: Anabel Gonzalez Practice Manager: Jean Michel Marchat (Acting) Task Team Leader: Magueye Dia BENIN Cross-Border Tourism and Competitiveness Project (P149117) TABLE OF CONTENTS Page I. STRATEGIC CONTEXT ....................................................................................................1 A. Country Context ............................................................................................................ 1 B. Sectoral and Institutional Context ................................................................................. 2 C. Higher Level Objectives to which the Project Contributes .......................................... 5 II. PROJECT DEVELOPMENT OBJECTIVES......................................................................6 A. PDO............................................................................................................................... 6 Project Beneficiaries ........................................................................................................... 6 PDO Level Results Indicators ............................................................................................. 7 III. PROJECT DESCRIPTION ..................................................................................................7 A. Project Components ...................................................................................................... 7 B. Project Financing ........................................................................................................ 14 Project Cost and Financing ............................................................................................... 14 C. Lessons Learned and Reflected in the Project Design ................................................ 14 IV. IMPLEMENTATION ........................................................................................................15 A. Institutional and Implementation Arrangements ........................................................ 15 B. Results Monitoring and Evaluation ............................................................................ 16 V. KEY RISKS .......................................................................................................................18 A. Overall Risk Rating and Explanation of Key Risks.................................................... 18 VI. APPRAISAL SUMMARY ................................................................................................20 A. Economic and Financial (see details in annex 5) ........................................................ 20 B. Technical ..................................................................................................................... 22 C. Financial Management ................................................................................................ 22 D. Procurement ................................................................................................................ 23 E. Social (including Safeguards) ..................................................................................... 23 F. Environment (including Safeguards) .......................................................................... 25 G. Bank Grievance Redress ............................................................................................. 25 Annex 1: Results Framework and Monitoring...............................................................................26 Annex 2: Detailed Project Description ..........................................................................................33 Annex 3: Implementation Arrangements .......................................................................................46 Annex 4: Implementation Support Plan .........................................................................................62 Annex 5: Detailed Economic and Financial Analysis ...................................................................65 Annex 6: Details on Lessons Learned and Reflected in the Project Design ..................................77 Annex 7: MAP ..............................................................................................................................79 . PAD DATA SHEET Benin Cross-Border Tourism and Competitiveness Project (P149117) PROJECT APPRAISAL DOCUMENT AFRICA Report No.: PAD1534 . Basic Information Project ID EA Category Team Leader(s) P149117 A - Full Assessment Magueye Dia Lending Instrument Fragile and/or Capacity Constraints [ ] Investment Project Financing Financial Intermediaries [ ] Series of Projects [ ] Project Implementation Start Date Project Implementation End Date 25-Mar-2016 31-Dec-2021 Expected Effectiveness Date Expected Closing Date 25-Aug-2016 31-Dec-2021 Joint IFC Joint Level Complementary or Interdependent project requiring Yes active coordination Acting Practice Senior Global Practice Country Director Regional Vice President Manager/Manager Director Jean Michel Marchat Anabel Gonzalez Pierre Frank Laporte Makhtar Diop . Borrower: Republic of Benin Responsible Agency: Ministry of Development of Economy, Analysis and Planning (MDEAP) Contact: Mireille Guedou Madode Title: Chief of Staff Telephone No.: +22921301351 Email: [email protected] . Project Financing Data(in US$, millions) [ ] Loan [ ] IDA Grant [ ] Guarantee [ X ] Credit [ ] Grant [ ] Other Total Project Cost: 50.00 Total Bank Financing: 50.00 Financing Gap: 0.00 . Financing Source Amount BORROWER/RECIPIENT