Document of The World Bank Public Disclosure Authorized Report No: ICR0000943 IMPLEMENTATION COMPLETION AND RESULTS REPORT (IDA-33940 IDA-3394A TF-54741) ON A Public Disclosure Authorized CREDIT IN THE AMOUNT OF SDR 15.8 MILLION (US$21 MILLION EQUIVALENT) TO THE REPUBLIC OF MALI FOR A FINANCIAL SECTOR DEVELOPMENT PROJECT Public Disclosure Authorized December 17, 2008 Finance and Private Sector Development Western and Central Africa Africa Region Public Disclosure Authorized CURRENCY EQUIVALENTS (Exchange Rate Effective August, 31, 2008 Currency Unit = C.F.A. Francs BCEAO 1.00 = US$0.00225038 US$1.00 = CFAF 444.36 FISCAL YEAR July 1 – June 30 ABBREVIATIONS AND ACRONYMS APBEF Bankers’ Association (Association Professionnelle des Banques et Etablissements Financiers) APIM Association of Microfinance Institutions (Association Professionnelle des Institutions de Microfinance) BCEAO Central Bank of West African States (Banque Centrale des Etats de l’Afrique de l’Ouest) BCS Commercial Bank of the Sahel (Banque Commerciale du Sahel) BDM-SA Development Bank of Mali (Banque de Développement du Mali) BHM Bank for Housing of Mali (Banque de l’Habitat du Mali) BIM Mali International Bank (Banque Internationale pour le Mali) BMCD Malian Bank for Credit and Deposits (Banque Malienne de Crédit et de Dépôts) BMCE Moroccan Bank of External Trade (Banque Marocaine du Commerce Extérieur) BNDA Agricultural Development Bank (Banque Nationale de Développement Agricole) BRVM Regional Stock Exchange (Bourse Régionale des Valeurs Mobilières) CAS Country Assistance Strategy CAS/SFD Support and Monitoring Unit for Microfinance Institutions (Cellule d’Appui et de Suivi des Systèmes Financiers Décentralisés) CAR Central African Republic CB Banking Supervision Commission (Commission Bancaire) CCS/SFD Microfinance Supervisory Unit CDC Collateral Deposit Company (La Caisse de Dépôt et Consignations) CE Credit Effectiveness CGAP Consultative Group to Assist the Poorest CRSRDA Consultative Group for the Financial Sector (Cellule de Réflexion et de Suivi de la Réforme du Droit des Affaires) CI Initiative Credit (Crédit Initiative) CIDA Canadian International Development Agency CIMA Inter-African Conference for Trade and Insurance (Conférence inter-africaine du marché des assurances) CIPRES Inter-African Conference for Social Prevention (Conférence inter-africaine de prévention sociale) CMDT Malian Textile Company (Compagnie Malienne de Textiles) CNAR National Insurance and Reinsurance Company (Caisse Nationale d’Assurance et Réassurance) CPM Malian Postal Checking System (Chèques Postaux du Mali) CPA/SFD Microfinance promotion agency CRM Pension Fund (Caisse de Retraite du Mali) DCA Development Credit Agreement DPL Development Policy Loan FIRST Financial Sector Reform and Strengthening FMI Financial Management Initiative FMS Financial Management System FSAP Financial Sector Assessment Program FSPAU Financial Sector Policy and Advisory Unit GDP Gross Domestic Product GOM Government of Mali GPN General Procurement Notice GRSF Consultative Group for the Financial Sector (Groupe de Réflexion sur le Système Financier) GTZ German Agency for Technical Cooperation HIPC Heavily Indebted Poor Countries Initiative IAPSO Inter-Agency Procurement Services Office of the united Nations Development Program ICA Investment Climate Assessment ICB International Competitive Bidding ICR Implementation Completion and Results Report IDA International Development Agency IFAD Institutional Fund for Agricultural Development IFC International Finance Corporation IMF International Monetary Fund INPS Social Security Institute (Institut National de Prévoyance Sociale) IRVM Income Tax on Financial Instrument (Impôt sur les Revenues des Valeurs Mobilières) LACI Loan Administration Change Initiative MFIs Microfinance Institutions MoEF Ministry of Economy and Finance NBFIs Non-Bank Financial Institutions NBF Not-Bank Financed NCB National Competitive Bidding NGOs Non-Governmental Organizations NPL Non-Performing Loans OHADA Organization for the Harmonization of Business Law in Africa (Organisation pour l’Harmonisation du Droit des Affaires en Afrique) OPs Occupancy Permits PA Project Account PAD Project Appraisal Document PARMEC Projet d’Appui à la Réglementation sur les Mutuelles d’Epargne et de Crédit PFMS Project Financial Management System PIUs Project Implementation Units PMR Project Management Report PPF Project Preparation Facility PSAP Private Sector Assistance Project QAG Quality Assurance Group QCBS Quality and Cost Based Selection SCPCE Postal Checking and Savings Fund (Société des Chèques Postaux et de la Caisse d’Epargne) SGI General Brokerage and Intermediation Company (Société de Gestion et d’Intermédiation) SMEs Small and Medium Enterprises SOMAFI Malian Company for Financing (Société Malienne de Financement) SA Special Account TA Technical Assistance TORs Terms of Reference TTL Task Team Leader UNDP United Nations Development Program USAID United States Agency for International Development WAEMU West African Economic and Monetary Union ZOPP Ziel-Orienterte Projekt Planung Vice President: Obiageli E. Ezekwesili Acting Country Director: McDonald P. Benjamin Sector Manager: Iradj A. Alikhani Project Team Leader: Djibrilla Issa ICR Team Leader: Emmanuel Diarra Data Sheet A. Basic Information B. Key Dates C. Ratings Summary D. Sector and Theme Codes E. Bank Staff F. Results Framework Analysis G. Ratings of Project Performance in ISRs H. Restructuring I. Disbursement Graph 1. Project Context, Development Objectives and Design ........................................... 1 2. Key Factors Affecting Implementation and Outcomes........................................... 9 3. Assessment of Outcomes ...................................................................................... 12 4. Assessment of Risk to Development Outcome..................................................... 18 5. Assessment of Bank and Borrower Performance.................................................. 19 6. Lessons Learned.................................................................................................... 22 7. Comments on Issues Raised by Borrower/Implementing Agencies/Partners....... 22 Annex 1. Project Costs and Financing .......................................................................... 24 Annex 2. Outputs by Component.................................................................................. 25 Annex 3. Economic and Financial Analysis ................................................................. 31 Annex 4. Bank Lending and Implementation Support/Supervision Processes............. 32 Annex 5. Beneficiary Survey Results ........................................................................... 34 Annex 5. Beneficiary Survey Results ........................................................................... 34 Annex 6. Stakeholder Workshop Report and Results................................................... 35 Annex 7. Summary of Borrower’s ICR and/or Comments on Draft ICR ..................... 35 Annex 8. Comments of Cofinanciers and Other Partners/Stakeholders ....................... 36 Annex 9. List of Supporting Documents....................................................................... 37 MAP A. Basic Information ML-Finance Sec Dev Country: Mali Project Name: (FY00) -(PDSF) IDA-33940,IDA- Project ID: P001748 L/C/TF Number(s): 3394A,TF-54741 ICR Date: 12/24/2008 ICR Type: Core ICR Lending Instrument: SIL Borrower: GOVERNMENT Original Total XDR 15.8M Disbursed Amount: XDR 13.5M Commitment: Environmental Category: C Implementing Agencies: Cellule de Gestion PDSF Cofinanciers and Other External Partners: B. Key Dates Revised / Actual Process Date Process Original Date Date(s) Concept Review: 01/10/1999 Effectiveness: 04/16/2001 04/16/2001 Appraisal: 03/20/2000 Restructuring(s): Approval: 06/27/2000 Mid-term Review: 07/26/2004 Closing: 04/30/2006 04/30/2008 C. Ratings Summary C.1 Performance Rating by ICR Outcomes: Moderately Satisfactory Risk to Development Outcome: Moderate Bank Performance: Moderately Satisfactory Borrower Performance: Moderately Satisfactory C.2 Detailed Ratings of Bank and Borrower Performance (by ICR) Bank Ratings Borrower Ratings Quality at Entry: Moderately Satisfactory Government: Moderately Satisfactory Implementing Quality of Supervision: Satisfactory Satisfactory Agency/Agencies: Overall Bank Overall Borrower Moderately Satisfactory Moderately Satisfactory Performance: Performance: C.3 Quality at Entry and Implementation Performance Indicators Implementation QAG Assessments Indicators Rating Performance (if any) Potential Problem Project Yes Quality at Entry Satisfactory i at any time (Yes/No): (QEA): Problem Project at any Quality of Yes Highly Satisfactory time (Yes/No): Supervision (QSA): DO rating before Moderately Closing/Inactive status: Unsatisfactory D. Sector and Theme Codes Original Actual Sector Code (as % of total Bank financing) Banking 13 13 Capital markets 21 21 Central government administration 46 46 Micro- and SME finance 10 10 Non-compulsory pensions, insurance and contractual 10 10 savings Theme Code (Primary/Secondary) Legal institutions for a market economy Secondary Secondary Regulation and competition policy Secondary Secondary Rural markets Primary Primary Small and medium enterprise support Primary Primary State enterprise/bank restructuring and privatization Primary Primary E. Bank Staff Positions At ICR At Approval Vice President: Obiageli Katryn Ezekwesili Callisto E. Madavo Country Director: McDonald