Document of The World Bank Group FOR OFFICIAL USE ONLY Report No. 96515-CI INTERNATIONAL DEVELOPMENT ASSOCIATION INTERNATIONAL FINANCE CORPORATION MULTILATERAL INVESTMENT GUARANTEE AGENCY COUNTRY PARTNERSHIP FRAMEWORK FOR THE REPUBLIC OF CÔTE D’IVOIRE FOR THE PERIOD FY16-FY19 August 17, 2015 Côte d’Ivoire Country Management Unit Africa Region The International Finance Corporation The Multilateral Investment Guarantee Agency 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 Group authorization. The date of the last Country Partnership Strategy was April 1, 2010 CURRENCY EQUIVALENTS (As of July 27, 2015) Currency Unit = CFA Franc US$1.00 = CFA F 593 FISCAL YEAR January 1 - December 31 ABBREVIATIONS AND ACRONYMS AFD French Agency for Development AfDB African Development Bank AGEDI Agency to Manage the Development of Industrial Infrastructure AusAID Australian Agency for International Development CASA Conflict Affected States in Africa BOAD West African Regional Development Bank BRVM Regional Stock Exchange BCEAO Central Bank of West African States C2D Debt Reduction Development Contracts Program CFAF West African Franc CIDA Canadian International Development Agency CIV Côte d’Ivoire COMOREX Committee for External Resources Mobilization CRRH Regional Housing Re-Finance Institution CPF Country Partnership Framework CPS Country Partnership Strategy DDR Demobilization and Disarmament DEMPA Debt Management Performance Assessment DFTAD Department of Foreign Affairs, Trade and Development DGDI Governance and Institutional Development DPO Development Policy Operations DSA Debt Sustainability Analysis ECF Extended Credit Facility ECOWAS Economic Community of West African States EITI Extractive Industry Transparency Initiative EU European Union FAO Food and Agriculture Organization FCPF Forest Carbon Partnership Facility FIP Forest Investment Program GIF Global Infrastructure Facility GDP Gross Domestic Product GiZ Deutsche Gesellshaft fur Internationale Zusammenarbeit GoCI Government of Côte d’Ivoire HAGG High Authority for Good Governance HIPC Heavily Indebted Poor Countries HMIS Health Management Information System 1 IsDB Islamic Development Bank IMF International Monetary Fund JICA Japan International Cooperation Agency MSME Small and Medium Enterprise MDRI Multilateral Debt Relief Initiative MTDS Medium-Term Debt Strategy NAIP National Agricultural Investment Program NAPRA National Procurement Regulatory Authority NDP National Development Plan NGO Non-governmental Organization OECD Organization for Economic Co-operation and Development OGP Open Government Partnership ONUCI United Nations Mission in Côte d’Ivoire PEMFAR Public Expenditure Management and Financial Accountability Review PBF Performance Based Financing PFM Public Financial Management PPP Public Private Partnership PSAC Projet d'Appui au Secteur Agricole PUIUR Projet d'Urgence d'Infrastructures Urbaines REDD Reducing Emissions from Deforestation and forest Degradation RMNCH Reproductive, Maternal, Newborn and Child Health SCD Systematic Country Diagnostic SME Small and Medium Enterprises TSAIP Transport Sector Adjustment and Investment Program TVET Technical and Vocational Education and Training UHC Universal Health Coverage UNDP United Nations Development Program UNFPA United Nations Fund for Population Activities UNICEF The United Nations Children’s Emergency Fund UNIDO United Nations International Development Organization USAID United States Agency for International Development VAT Value Added Tax WAAPP West Africa Agricultural Productivity WAEMU West Africa Economic and Monetary Union WBG World Bank Group WEF World Economic Forum WFP World Food Program WGI Worldwide Governance Indicators IDA IFC MIGA Vice President Makhtar Diop Snezana Stoiljkovic Keiko Honda Country Director Ousmane Diagana Vera Songwe Ravi Vish Task Team Leader Katrina Sharkey Cassandra Colbert Conor Healy Co-TTL Jean-Noel Gogoua 2 FY16-19 COUNTRY PARTNERSHIP FRAMEWORK FOR THE REPUBLIC OF CÔTE D’IVOIRE TABLE OF CONTENTS I.  INTRODUCTION .............................................................................................................................. 4  II.  COUNTRY CONTEXT AND DEVELOPMENT AGENDA ......................................................... 5    Social and Political Context ............................................................................................................. 5    Recent Economic Developments ..................................................................................................... 6  C.  Poverty and Shared Prosperity ......................................................................................................... 8  D.  Regional Integration....................................................................................................................... 10  III.  WORLD BANK GROUP PARTNERSHIP FRAMEWORK .................................................. 11    Government Program and Medium Term Strategy........................................................................ 11  B.  Proposed World Bank Group Partnership Framework .................................................................. 11  1.  Lessons from the CPS Completion Report and IEG Evaluations.............................................. 14  2.  Overview of World Bank Group Strategy ................................................................................. 14  3.  Focus areas, Objectives, Program of Lending and Non-lending Activities............................... 19  Focus Area One: Accelerating Sustainable Private Sector-Led Growth ....................................... 19  Focus Area Two: Building Human Capital for Economic Development and Social Cohesion .... 26  Focus Area Three: Strengthening Public Financial Management and Accountability .................. 29    Implementing the FY15-19 Country Partnership Framework ....................................................... 32  Boxes Box 1 : CIV Country Partnership Framework Guiding Principles ............................................................. 15  Box 2. Additional Opportunities to Enhance Youth Employability ........................................................... 27  Figures Figure 1. Côte d'Ivoire CPIA 2014 ............................................................................................................... 8  Figure 2: Poverty Gap and Severity Index, by National, Rural and Urban................................................... 8  Figure 3. Developing the CPF: Filtering process to define objectives........................................................ 12  Figure 4. From SCD to CPF Priorities ........................................................................................................ 13  Figure 5. CPF Areas of Engagement .......................................................................................................... 17  Tables Table 1: WBG Areas of Engagement ......................................................................................................... 33  Table 2: Risk in Côte d'Ivoire ..................................................................................................................... 35  Annexes Annex 1: CPF Results Monitoring Matrix .................................................................................................. 38  Annex 2: Monitoring and Evaluation of the CPF Results Framework ....................................................... 50  Annex 3: CPS Completion Report FY10-14............................................................................................... 56  Annex 4: Managing the Impact of Côte d’Ivoire’s Medium Term Climate Change and Disaster Risks.. 103  Annex 5: IDA 17 Commitments in Côte d'Ivoire ..................................................................................... 105  Annex 6: Development Partner Activities in Côte d'Ivoire ...................................................................... 106  Annex 7: WBG Indicative Lending and Financing Program .................................................................... 109  Annex 8: IDA Indicative Knowledge Services Program, FY16-FY18 ..................................................... 110  Annex 9: Regional Synergies in Economic Infrastructure ........................................................................ 111  Annex 10: Selected Indicators of Bank Portfolio Performance and Management ................................... 113  Annex 11: Operations Portfolio (IBRD/IDA and Grants) ........................................................................ 115  Annex 12: Statement of IFC’s Held and Disbursed Portfolio................................................................... 116  3 FY16-19 COUNTRY PARTNERSHIP FRAMEWORK REPUBLIC OF CÔTE D’IVOIRE I. INTRODUCTION 1. This Country Partnership Framework (CPF) presents the proposed World Bank Group (WBG) program for Côte d’Ivoire (CIV) during the period FY16-FY19. The proposed CPF comes at an opportune moment to accelerate and scale up the WBG engagement. The program will take advantage of CIV’s current climate of renewed stability to modernize the economy and eliminate long-standing disparities aggravated by a decade of multifaceted crisis, during which the World Bank Group had to suspend its operation four times. In 2009, a transitional Government resulting from the Ouagadougou Political Agreement (OPA) provided an appropriate platform to reengage. The transitional Government prepared the country’s first Poverty Reduction Strategy Paper (PRSP) covering 2009-2015. The WBG Country Partnership Strategy (CPS) for FY10-14, which supported the PRSP’s goals, was prepared in this context. Political unrest following the 2010 Presidential Elections then rendered implementation of the 2009 PRSP difficult. 2. During the past four years, CIV has made an impressive transition from crisis to relative stability, and from fragility and low equilibrium, through stabilization, to aspiring emerging economy status. Although some of the root causes of the conflict remain, there are high expectations that those will be tackled if the current transformation is maintained and the reconciliation agenda is intensified. The Government expects to accelerate implementation of measures designed to improve social cohesion, develop human capital, build a resilient economy, support territorial development and promote regional synergies towards integration. The CPF will also support the achievement of the WBG’s twin goals of reducing extreme poverty and boosting shared prosperity, which is also in line with Côte d’Ivoire’s plans. 4 II. COUNTRY CONTEXT AND DEVELOPMENT AGENDA Social and Political Context 3. With a GDP of about US$35 billion and a population of 22.7 million in 2014, Côte d’Ivoire (CIV) is one of the largest economies in West Africa. In the 20 years following independence in 1960, the economy grew at an average annual rate of some 6 percent. Contributing to the sustained growth were the country’s good agricultural base and important natural resources such as gold and natural gas and a fairly competitive manufacturing sector. During this early period CIV also enjoyed political stability, and an open door policy to attract a productive labor force. From 1981 to 1992, following a series of economic shocks, annual GDP growth stagnated and during the 1999-2011 period, CIV had among the lowest growth rates in Africa, averaging less than 2 percent. In 2014, the country’s per capita Gross National Income (GNI) stood at about US$1,489. 4. During the period 1993 to 1999, the country experienced heightened social polarization, resulting from the marginalization of certain socio-cultural groups and the competition for increasingly scarce national resources, particularly agricultural land. Land in CIV has been a persistent driver of instability. In the context of an increasingly difficult economic environment in the sub-region, large-scale migration of agricultural workers from northern CIV and neighboring countries, including Burkina Faso and Mali, was encouraged to support development of cash crops in the country’s southern and western regions. Land was plentiful and migrants negotiated land access verbally with local communities. Subsequently, these agreements between local populations and migrants began to be questioned, as land increased in value and other job opportunities became scarce. Ethnic rivalries contributed to the breakdown of national institutions and these tensions drove the country to its first coup in 1999. Following the 2000 Presidential elections that ushered President Laurent Gbagbo into power, tensions worsened. In 2002, a mutiny-turned-rebellion led to an open armed conflict that split the country in two. The 2007 Ouagadougou Political Agreement between the crisis stakeholders allowed for an easing of political tensions and paved the way for elections in 2010. The refusal of some groups to recognize the elections led to a violent post-election crisis that lasted five months. 5. Since the May 2011 presidential inauguration of Alassane Ouattara, the Government has paid extra attention to social cohesion and reconciliation. The overall security situation has improved dramatically in both rural and urban areas and is now stable, but remains fragile; seven thousand UN peacekeepers are still deployed in the country. Political violence is at its lowest in the last two decades. Political dialogue between opposition parties and the Government resumed, followed by the release of prisoners detained during the post-election crisis and an unfreezing of bank accounts of supporters of the former President. The Independent Electoral Commission is now accepted by virtually all political parties and has deployed throughout the country; presidential elections are planned on October 25, 2015. The Dialogue, Truth and Reconciliation Commission formally presented its final report and recommendations after national consultations; the report has not been publicly disclosed yet. The National Authority for Disarmament, Demobilization and Reintegration completed the DDR process for ex-combatants. The United Nations Security Council (UN) terminated sanctions imposed in 2005 on diamond imports from CIV given progress made in implementing the international standards on conflict diamonds; it also 5 lifted its embargo on small arms and ammunition imports to allow CIV to equip the police for improved security purposes. Recent Economic Developments 6. Côte d’Ivoire’s recovery since 2011 has been robust. Following a drop in real GDP of 4.7 percent during the post-election crisis in 2011, the economy grew at an average of 9.7 percent from 2012 to 2013 before moderating slightly to 7.9 percent in 2014. Real GDP per capita increased by more than 20 percent during the 2012-2014 period. Agriculture, inductry and services sectors jointly contributed to GDP growth and employment. A combination of good weather conditions and the establishment of farm-gate floor prices for key export crops bolstered agricultural production. The rebound in agriculture was driven by increases in cocoa, cashew and other food-crop production (rice, plantain, cassava and corn), and cotton. Industrial production increased across the board, driven by the implementation of major public infrastructure projects. New hiring has resumed in both the private and public sectors, resulting in an overall increase of formal employment by 5 percent in 2013. Meanwhile, a combination of public and private investment generated a boom in the construction sector. Following a spike in prices during the conflict, inflation had dropped to 0.4 percent in 2014, far below the threshold of 3 percent for the West Africa Economic and Monetary Union (WAEMU), reflecting a decline in food prices and transportation costs. 7. Since the crisis, the Government has followed a prudent fiscal policy. The overall fiscal deficit has diminished steadily from 5.6 percent in 2011 to 2.3 percent in 2013 in line with the Extended Credit Facility (ECF)–supported program approved by the International Monetary Fund (IMF) on November 4, 2011. Improved tax collection and changes in value added tax (VAT) exemptions resulted in increased revenues. The composition of government spending shifted; in 2014 public investment reached 6 percent and pro-poor spending increased to 9.1 percent of GDP. 8. Monetary and exchange-rate policies remained unchanged, with a fixed CFAF-euro parity and reserve requirements. CIV is a member of the Central Bank of West African States (BCEAO) which maintains a fixed parity between the CFA Franc (CFAF) and the Euro. Credit to the economy grew rapidly in 2013 and 2014, rising by 22.6 percent and 21.7 percent, driven by an increase in agricultural loans, as well as medium and long-term financing, as economic activity accelerated and investor confidence rose. 9. CIV’s current account was in deficit between 2012 and 2014. The deficit increased to 2.5 percent of GDP (excluding grants) in 2014, from 1.8 percent in 2012; driven by a surge in imports for public infrastructure construction. The current account deficit was estimated at 0.7 percent of GDP in 2014. The country continues to attract foreign direct investment (FDI); inflows represented 2.6 percent GDP in 2013. The overall balance of payments was in surplus at 0.6 percent of GDP during 2014 following a 2.6 percent deficit in 2012. Improvements in economic fundamentals and progress in reforms enabled CIV to issue a US$750 million Eurobond at a yield of 5.625 percent and US$1 billion Eurobond at a yield of 6.625 percent in 2015. The latter was oversubscribed four times, reaffirming investor confidence in the country’s strong economic fundamentals. 6 10. Debt management remains satisfactory. External public debt (excluding official claims from France under the debt-for-development swaps) increased to 19.1 percent of GDP at end-2014 from 17.2 percent in 2012, with sustained regular debt service payments. The external debt service was 4.6 percent of exports in 2014 against 3.7 percent in 2012. The authorities also launched a program to clear domestic arrears, and gross domestic debt fell to 12.7 percent of GDP in 2014 from 16.9 percent in 2012. 11. Since 2011, the Government has adopted structural reforms to help improve the macroeconomic environment and set the stage for growth. These reforms are helping to bring about the changes for resilient and private sector led growth. Some of the important reforms concern the following areas: (a) Improving the business climate. CIV was ranked among the top 10 reforming countries for the second consecutive year in the 2015 “Doing Business Report” of the World Bank Group. In 2014, the Government established a dedicated Commercial Court to expedite business rulings; approved new investment and mining codes, which are business-oriented and granted important incentives to private investors, and adopted an electricity code, incorporating an appropriate framework for the management of physical and financial flows in the electricity sector. (b) The financial sector development strategy of 2014 aims to ensure financial stability, greater inclusion, and an improved response to financing needs for lower income housing, SMEs/SMIs and agriculture. Strengthening the financial sector’s soundness requires restructuring of public banks. To this end, the Government will merge three investment, savings and housing banks; sell minority shares in two Banks; and privatize the Banque pour le Financement de l’Agriculture and Versus Bank. (c) Improving governance and transparency of public institutions, and public financial management (PFM) and debt management. The recently-established High Authority for Good Governance also has the potential to address governance issues. Decrees for the inclusion of WAEMU PFM directives in the national PFM legal framework have been approved, and a new PFM reform strategy is being implemented. The Government has taken measures to improve governance and transparency in key productive sectors such as cocoa, which have helped end the misuse of cocoa levies and promote a new culture of accountability. 12. As a result, CIV has witnessed continued improvement of its Country Policy and Institutional Assessment (CPIA) and consequently a steady increase in the country’s allocation over recent IDA cycles. In fact, CIV’s overall score change from 3.1 in 2013 to 3.3 in 2014 was the highest score increase in Africa over that period. See Figure 1. 7 Figure 1. Côte d'Ivoire CPIA 2014 C. Poverty and Shared Prosperity 13. The poverty incidence in Côte d’Ivoire slightly diminished from 48.9 percent in 2008 to 46.3 percent in 2015 in response to the recent rebound of economic growth. Between 1985 and 2008, the estimated share of the population living below the poverty line increased from around 10 percent to about 48.9 percent. During this period, the increase in the depth and severity of poverty was dramatic. The findings of the 2015 Living Standards monitoring Survey (LSMS – ENV2015) indicate that poverty has decreased to 46.3 percent in 2015 as the economy rebounds. 14. Extreme poverty also increased five-fold over this period. The poorest of the poor were hit the hardest, and the declines were far worse in rural areas. Mean consumption per capita for the bottom 40 percent of the population decreased at an average annual rate 2.6 percent between 2002 and 2008, worse than that for the total population (0.9 percent). Figure 2 below indicates the worsening of the severity of poverty between 1985 and 2008. Figure 2: Poverty Gap and Severity Index, by National, Rural and Urban 25.0 12.0 20.0 10.0 Poverty Gap Square 8.0 Poverty Gap 15.0 6.0 10.0 4.0 5.0 2.0 0.0 0.0 1985 1993 1998 2002 2008 1985 1993 1998 2002 2008 Urban Rural Total Urban Rural Total Source: World Bank staff estimates from survey data 8 15. Poverty is overwhelmingly rural, with pronounced differences between the north and the south. Poverty rates in both urban and rural areas more than quadrupled between 1985 and 2008. Poverty continues to be overwhelmingly concentrated in rural areas, which are home to 70 percent of poor households, but recent increases in both farm-gate prices and minimum wages in the public sector have reduced monetary poverty. The majority of the poor continue to rely on agriculture, which occupies 46 percent of the population. Poverty rates tend to increase from the South (25 percent) to the North (69 percent) and from East to West, both along the coast and inland. The North-South disparities can be explained in part by the country’s two distinct agricultural regions. The forest region in the South is home to cocoa, coffee, and palm oil production, while the drier savannah region to the North is home to cotton and cashew production. 16. There are disparities in access to basic services, and gender disparities across wealth and urban-rural groups. Differences in primary school enrollment exist, but the most pronounced disparities exist in secondary education to which rural residents and the poor have limited access. Given the correlation between education and welfare, these disparities can limit future outcomes. Gender gaps in attainment persist at all levels in both urban and rural areas and at different wealth levels. The Ivoirian population’s access to clean water and improved sanitation was estimated at 57 percent in 2009, far below the 81 percent target of the MDGs. The situation is especially critical in rural areas with only 37 percent of the population having access to improved sanitation facilities and more than 40 percent practicing open defecation (Joint Monitoring Program, 2009), producing a negative impact on public health and child mortality. High costs of infrastructure and lack of financing hamper the development of sanitation facilities in rural areas, while most urban cities lack sanitation master plans. Drivers of Poverty and Development Challenges 17. The Systematic Country Diagnostic (SCD) identifies the root causes of the economic decline of the last twenty years. Given Côte d’Ivoire’s dependence on cocoa exports, the fall in cocoa prices played an important role in the economic decline, but the impact of the price shock was amplified by the political and social crisis, and certain choices or policies, both at the macro and sector level1 . 18. Cocoa sector and macroeconomic policies: given CIV's dependence on cocoa exports, and the rural population's dependence on cocoa production, related sector policies have been critical to the evolution of economic and social development. After independence, easy access to land for farmers, an open immigration policy, rising farm gate prices, and cash rewards for production, provided strong incentives for cocoa production. When world cocoa prices began to decline in 1985, however, CIV's membership in the CFA zone ruled out a devaluation to offset the price shock. Later, the deteriorating economic situation and unmanageable debt led the Government to cut public employment and social services, which in turn created an increasingly unstable political environment. 19. Structural reforms: the allocation of large profits from the cocoa industry to the construction of physical infrastructure was instrumental in creating the backbone for strong and fast-paced growth, including in manufacturing. Yet, the pace of structural reforms slowed with the 1 cf. SCD report 9 weakening governance framework starting in the late 1980s, and the country's business environment began to deteriorate. Despite a period of growth from 1994-1997, the economic recovery in the aftermath of the CFA devaluation failed to generate sufficient momentum for reforms to resume. 20. Social policies: Mounting fiscal pressures due to rising indebtedness led to cuts in social spending, and adversely affected the quality of spending. Necessary institutional reforms in health and education were delayed, and led to an increasingly tense political battle over the allocation of scarce social spending resources. In addition, a weakened economy, and rising poverty coincided with the rise of multi-party politics and exacerbated ethnic divisions, which were exacerbated by an unclear legal regime with regard to land titles, thereby creating competition for agricultural land among native, re-settled and migrant communities. CIV was thus unable to harness the commodities boom beginning in 2000 that allowed many African countries to create the basis for growth and poverty reduction. 21. Growth strategy: Initial efforts in the early 1990's to pursue growth opportunities beyond CIV’s southern coastal region failed to materialize due to lack of maintenance of infrastructure in industrial zones and weakening performance in agriculture and related value chains. Consequently, many larger industries and a significant portion of SMEs emerging at the time did not survive. D. Regional Integration 22. Côte d’Ivoire shares borders with five countries – Burkina Faso, Guinea, Ghana, Mali and Liberia – with which it has had a long-standing commitment to regional integration and mutually-supportive synergies. Regional integration has been central to the country’s development agenda set by President Houphouet-Boigny since the early years of independence. From the inception of the state, Ivoirians have seen regional integration as an opportunity and stepping-stone for their country to benefit from its strategic geographical position and economic potential. As a result, CIV participates in many regional and continental bodies and regional economic communities for which it is a key founding member. These bodies include the African Union, the Mano River Union, and the Economic Community of West African States (ECOWAS), the Central Bank of West African States (BCEAO) and the West African Economic and Monetary Union (WAEMU). Abidjan is also the headquarters of the African Development Bank, Africa Rice Center (AfricaRice) and the regional stock exchange, Banque Régionale des Valeurs Mobilières (BRVM). 23. CIV is a direct coastal neighbor to Mali and Burkina Faso; the prospects for development and economic transformation of these countries are inherently linked. In the same vein, all of the resource-scarce Sahelian nations, in addition to the fragile state neighbors of Guinea, Liberia, and Sierra Leone are prone to exogenous shocks and depend to a large extent on remittances coming from their migrant nationals working in CIV; these migrants in turn occupy a prominent place in this country’s economic and social landscape. In terms of economic growth, CIV, as the largest economy in the WAEMU zone, generating approximately 38 percent of its income, plays a pivotal role in influencing and promoting the sub-region’s economic competitiveness and integration. In recent history, this fact was evidenced on at least two 10 occasions: the 1994 devaluation of the CFA franc, and WAEMU’s current trend of economic growth resulting from CIV’s return to normalcy after a decade of crisis. Finally, thanks to the quality of the early post-independence education system, CIV now enjoys entrepreneurial experience and a service delivery system that offer capacity and assistance in areas critical to many of its low income neighbors. 24. Against this background, regional integration remains a key ingredient for strengthening CIV’s economic growth, promoting shared prosperity, and attaining sustainable development goals. Achieving these outcomes will depend on accelerating structural reforms to lower the cost of cross-border activities2 and strengthening infrastructure development, including energy, transport and logistics, and improving the provision of public goods. Specific interventions in terms of policy coordination, reforms and investments to promote regional synergies are found at Annex 9. III. WORLD BANK GROUP PARTNERSHIP FRAMEWORK Government Program and Medium-Term Strategy 25. Côte d’Ivoire has made an impressive and smooth transition from conflict to relative stability. The Government intends to build on the country’s resilience and institutional capacities to pursue structural transformation, in order to spur poverty reduction and shared prosperity, which are keys for addressing roots causes of the conflict and their residual effects. 26. CIV’s development plan under preparation for 2016-2020 will deepen priorities outlined in the 2012-2015 National Development Plan (NDP), which has been the government’s frame of reference for transforming the country into an emerging economy and halving the poverty rate by 2020. The Government presented an outline of its 2016-2020 strategy at the May 2015 Spring Meetings with the WBG, highlighting its overarching objective to ensure the population’s wellbeing by reducing poverty and inequality, through structural transformation of the economy. 27. In developing its current and future plans, the Government has been informed by considerable analytical work delivered in the last three years, which has led to the development of strategic plans for key areas such as agriculture and finance. The Systematic Country Diagnostic (SCD) and a 2015 OECD report on CIV’s challenges are notable examples of comprehensive diagnostic work, which has contributed to the Government’s reflections. B. Proposed World Bank Group Partnership Framework 28. To design the WBG engagement in Côte d’Ivoire, selectivity filters were applied as follows: (i) focus on priority areas identified by the SCD; and (ii) WBG comparative advantage, including lessons learned, as well as the role of other donors (Figure 3). 2 For example, the high cost of international telecommunications and air travel within ECOWAS is a cost burden to expand regional activities. 11 Figure 3. Developing the CPF: Filtering process to define objectives 29. The CPF reflects two pathways and five prerequisites for CIV identified in the SCD to achieve the goals of eliminating extreme poverty and boosting shared prosperity. The first pathway entails creation of better quality jobs through sustainable private sector-led growth in agriculture, agribusiness and the non-agribusiness sectors. The second pathway to attain inclusive growth is to build human capital, which entails improving the efficiency and quality of spending in education, health and social protection and improving access and equity to basic services, while strengthening the quality of labor needed for private sector growth. The five main prerequisites are: (a) continued social and political stability; (b) macroeconomic stability and debt sustainability; (c) land market reform; (d) financial sector development and inclusiveness; and (e) improved governance. Figure 4 presents the road map from SCD pre-requisites and pathways through SCD prioritization to CPF priorities. The results monitoring framework for the CPF is found in Annex 1, and an associated review of monitoring and evaluation definitions for the framework is found in Annex 2. 12 Figure 4. From SCD to CPF Priorities SCD Prerequisites  SCD Priorities CPF Priorities  and Pathways Yes, cross‐cutting  Land reform and Focus Area 1 Prerequisites for  inclusive and  sustainable growth Yes, cross‐cutting  Governance and Focus Area 3 Increasing Agricultural Productivity and  Yes, Focus  Area 1  Economic Diversification Creating better jobs Promoting Agrobusiness  Yes, Focus  Area 1  and non‐agrobusiness Social protection  against  Yes, Focus  Area 2 Building Human  vulnerability capital Equitable Access  to quality  Yes, Focus  Area 2 education Equitable Access  to quality health  Yes, Focus Area 2 care  13 1. Lessons from the Country Partnership Strategy (CPS) Completion Report and IEG Evaluations 30. The previous CPS program for FY10-FY13 was reviewed in 2014 (Annex 3). A Progress Report of May 2013 (Report No. 77132-CI) adjusted the program to take into account political events since the CPS was prepared and added one year (FY14) to the program. The program made an important contribution in helping those affected by the conflict, and there were real gains in public financial management and in increasing transparency of public sector institutions. With the World Bank Group technical assistance, CIV joined the Extractive Industry Transparency Initiative (EITI), increasing transparency in the oil, gas, and mining sectors. Also, decisive steps were taken to improve the business climate with support from the Bank and IFC. IFC and MIGA supported increasing capacity in the energy sector through investment in oil, gas and power. However, there was limited progress in achieving electricity sector sustainability and this affected the overall assessment of the program. 31. IEG evaluations of completion reports carried out during the CPS period provide lessons on adapting to post-conflict situations in fragile states. For investment operations, IEG highlighted the importance of basing task teams in country and having project implementation units outside government structures. On Development Policy Operations (DPO), IEG noted that countries emerging from crisis could achieve significant progress if their governments demonstrated commitment to reforms, and that non-programmatic stand-alone operations can form the basis for policy-based support. This latter recommendation is consistent with IEG’s assessment that it is difficult to change objectives in DPOs during crisis situations. 32. Preparations of the CPF have benefitted from consultations including those conducted during the preparation of the SCD. In addition to discussions on the strategic orientations of the CPF held at the Spring Meetings 2015 in Washington, and further discussions in Abidjan with the Cabinet and other groups, SCD dissemination consultations were held in CIV in May 2015. Stakeholders included national and local government authorities, the private sector, civil society, and development partners. The discussions while recognizing impressive progress made by the country both on macroeconomic and sociopolitical fronts, highlighted the root causes of the Côte d’Ivoire crisis, including the difficulties of establishing a sense of nation state and the challenge of addressing the spatial disparities. 2. Overview of World Bank Group Strategy 33. The preconditions and pathways to reduce extreme poverty and boost shared prosperity, which are highlighted in the SCD, are systematically woven into the CPF. The CPF is demarcated by a FY16-19 time frame, but encompasses a longer-term vision for the country’s development. CIV’s development goals are ambitious, and the country is in a hurry to regain its growth momentum experienced previously. The WBG program will support specific areas, which are critical to eliminate the bottlenecks of the past, and accelerate vital reforms which will affect the quality of life of the majority of poor Ivoirians. Consistent with the selectivity filters highlighted above, IDA will act as platform, knowledge generator, and financier of last resort. Its support will also be primarily directed towards the use of seed and preparatory funding, especially for large transformational operations, whereas the program more generally will apply the new “financing development” approach based on: (i) how government can leverage its own resources 14 in the market, with WBG advisory support for facilitating access to regional and extra-regional bond markets; (ii) crowding-in of international and domestic private sector financing; and (iii) utilization of innovative financing models, including public private partnerships (PPP), guarantees, and enclave instruments. Policy reforms in the CPF’s three focus areas will be supported by two series of two-year DPOs designed to support achievement of the government’s reform objective to accelerate CIV’s development pace towards an emerging economy. Policies supported by the first two-year DPO series will contribute to the gradual removal of obstacles to sustainable private sector-led growth, while improving efficiency, transparency and accountability in public resource mobilization and management. These reforms will lay down the conditions for crowding-in private sector financing supported by IFC and MIGA. The second DPO series will address the policy bottlenecks to human capital strengthening for economic and social cohesion. Furthermore, both DPO series will continue to address challenges in PFM and in the overall governance environment. The guiding principles which will underpin the WBG’s engagement are found in Box 1. Box 1 : CIV Country Partnership Framework Guiding Principles Comparative advantages: To hone its selectivity from the priorities identified in the SCD, the CPF proposes to use filters to target areas for WBG intervention. First, the WBG has a critical edge in harnessing global knowledge, policy dialogue and technical assistance to advance reform implementation. Recent Bank/IFC interventions, for example, on the Ivorian cocoa sector built upon an integrated approach to reform and involved close participation of the IMF and of key donors. Under the CPF, it is proposed to apply the WBG’s convening power for other reforms, including land, water, health and education. Second, the WBG has extensive experience in synchronizing the implementation of large financing packages, which will be needed to finance Côte d’Ivoire’s major infrastructure requirements. This experience will be especially critical for the mobilization of high cost multi-sector operations spanning transport, energy, water and ICT sectors, in which, IDA financing will be extremely limited. Third, IFC’s role in mobilizing catalytic investments for a broad spectrum of engagement in finance, transport, electricity, business environment and job creation is expected to be fundamental for successful delivery of the CPF. Alignment and Ownership: Ensuring strategic coherence with national programs, and ownership among stakeholders is essential for timely execution and success of the programs. Ongoing discussions with Government indicate that the 2015- 2020 National Development Plan will present ambitious and all-encompassing goals, which are generally in line with those included in the CPF. The CPF key goals and focus areas result from iterative discussions with the Government and broad and deep consultations with different groups designed to both inform choices and facilitate trade-offs. Multi Sectorality and Selectivity: Overcoming fragmentation and promoting bold programs, which are multi-sector by definition, will help to (i) strengthen the policy coordination which is key for institutional learning/capacity building, (ii) mobilize transformational programs and (iii) achieve better development outcomes. Partnership and Donor Coordination. This is a critical lever to reduce transaction costs, optimize synergies and progressively eliminate overlapping sector and/or geographical interventions. The WBG already actively participates in donor coordination activities, playing a lead role in some critical sectors. To advance implementation of the CPF and CIV’s development plans, the Group will use its strong field presence to strengthen synergies across donor interventions, and establish appropriate arrangements for the division of responsibilities. Conflict Prevention. Building upon the existing “do no harm” approach applied by the WBG team, interventions will be designed to address drivers of conflict and fragility in order to (i) prevent relapse into violence/conflict; (ii) build the country’s resilience and institutional capacities; (iii) promote social inclusion; (iv) protect investment and development gains; and (v) stabilize the sub-region. Financing. The CPF will be an occasion to test innovative solutions and financing mechanisms such as using the IDA window for project preparation, and as a catalyst for large and transformative infrastructure projects to be financed by other sources. MIGA and IBRD/IDA partial risk guarantees and enclave finance will also be promoted in order to facilitate private sector investment and PPP arrangements. 15 34. Consistent with complementarity, synergy and selectivity purposes, the CPF program does not envisage engagement at this time in some areas. For example, no IDA investment operation in mining is planned, while the Bank is open to consideration of advisory support on how to leverage sector investments for accelerated poverty reduction. Furthermore, the CPF’s support to multi-modal and spatially-focused infrastructure in the west of CIV promises to have spill-over benefits for mining development and associated economic activities for micro- enterprises. On land rights in mining, USAID/EU support on Property Rights and Artisanal Diamond Development takes the lead in supporting the Government’s (GoCi) implementation of good practice on the ground, and in adhering to international Kimberley Process standards. Against this background, and under the Country’s leadership, the WBG will coordinate with donors its planned support on the use of land for industrial and agricultural purposes but not engage directly in the use of land for mining. In energy, the WBG is ready to support CIV access to financing for power generation capacity expansion, but would not provide IDA resources to directly fund such investments in view of the wide range of competing priorities. In the banking and financial services sector, the WBG will prioritize financial inclusion for SME and entrepreneurship growth, using the DPO series to support the scaling-up of savings, credit, insurance, and consumer protection. A number of donors are already supporting justice reform, and the WBG does not envisage any investment lending in this area. The CPF will support justice reform and accountability improvements through the DPO series. 35. The CPF proposes to focus on two cross-cutting areas and ten objectives. The Focus Areas are: sustaining strong private sector-led growth; building human capital for inclusive growth, social cohesion and youth employment; and strengthening public financial management and accountability (see Figure 5). CPF activities under each Focus Area will integrate two cross cutting issues specific to CIV: governance and spatial inequalities. 16 Figure 5. CPF Areas of Engagement Cross-Cutting Themes: Governance and Spatial Inequality Focus Area Two Focus Area One Focus Area Three Building human capital for  Accelerating sustainable private  Strenghtening public financial   economic development and  sector‐led growth management and accountability social cohesion Objective 1: Improve  Objective 5: Improve  productivity in  Objective 8: Improve  education service delivery  agriculture/agribusines  allocative efficiency and  and youth employability value chains quality of expenditures Objective 6: Expand  Objective 9: Increase  Objective  2: Strengthen  affordable social  domestic revenues and  economic infrastructure  protection system maintain debt  sustainability Objective 3: Improve   Objective 7: Improve   Objective 10: Increase  business regulatory  delivery of quality health,  accountability and  framework and access to  and water services transparency in public  finance expenditures Objective 4: Formalize and  enhance access to land for  business and agriculture 36. For the first cross-cutting area, the WBG program proposes to support the Government’s governance reform agenda introduced in 2012. The 2014 World Bank’s Worldwide Governance Indicators (WGI) place CIV in the lower quarter of the percentile ranks with a score of 21 on a scale of 100. While this score is much higher than the 2010 score of 12, it is still far from the top score of 42 achieved in 1996. CIV now ranks 115th, up from the 154th position in 2011 in the Corruption Perception Index. Under the CPF, the WBG proposes to support crosscutting sector reforms through DPOs and investment operations. The program will continue 17 to emphasize crosscutting public sector accountability and resource allocation issues in the delivery of public services in Focus Areas One and Two. 37. For the second cross-cutting area, the WBG program proposes to support the Government’s agenda for reducing inequalities in general, and those of a spatial nature in particular. Inequality has several dimensions; including spatial, gender, vulnerable groups (elderly, children, disabled), ethnic, and economic groups. The spatial dimensions of poverty in CIV are multi-faceted resulting in patterns of spatial inequality of a varied nature. There is an urban/rural divide, a geographic divide between the southern coastal regions and the northern inland areas, and a disproportionate concentration of economic activities in Abidjan as compared to the rest of the country. In-country regional imbalances resulted both from diverging resource endowments and geographic proximity to transport gateways in the southern part of the country. To address this, the WBG will support Government efforts to reduce disparities and address lagging regions through operations that build upon CIV’s previous efforts to develop regions following independence. WBG interventions will address policy responses under all three Focus Areas. The CPF program will also support interventions designed to target more equitable expenditure allocations and social service delivery to vulnerable and underserved populations. 38. Remaining drivers of fragility, which are closely related to above-mentioned inequalities, are mostly acknowledged by the Government and have begun to be addressed: (a) delays in the implementation of the 1998 Land Law, which will be addressed in the context of sensitive issues of nationality; (b) security sector reform designed to build a coherent security system with solid institutions and reduce remaining pockets of violence (e.g. sporadic intercommunal violence near the Liberian border and road banditry (“coupeurs de routes”) in the North); (c) significant regional disparities in terms of public infrastructure, investment, and services, which can exacerbate tensions and resentment; (d) under-employment of youth, who cannot break out of the poverty trap for lack of capital and qualifications; and (e) national and international justice for crimes during the post-electoral crisis, which is still viewed as partisan by certain groups from political opposition or civil society organizations (CSOs). 39. Improving women’s economic empowerment and the role of women in society will continue to be an important objective of the CPF. The Bank will continue to support policy- focused gender diagnostics and analytical work, and to mainstream gender into Bank-supported projects in human development, employment, microfinance and agriculture. It will also support reforms to enhance women’s social and economic inclusion. Gender disaggregated data and gender specific indicators will continue to be included in relevant projects. For IFC, this would include strengthening women’s access to credit and business opportunities. The original gender note and the updated report which contributed to preparation of the SCD have also been used to inform the CPF and these reports are considered to constitute a “country gender assessment” in fulfillment of OP/BP 4.20.3 3“Gender, Economic Productivity and Development in Côte d’Ivoire: Input on Gender to the Strategic Country Diagnostic”(Kirkwood, Daniel) “Côte d’Ivoire Gender Background Note” (Kevin Croke and Emilie Rees Smith) 18 40. Timeline for the CPF. This CPF covers a four-year period FY16-19. Interventions planned for outer years will remain flexible to allow for greater responsiveness to developments in the country, including the elections planned for October 2015. Several operations are in an early stage of development and adjustments to their scope, based on preparation and appraisal, may be expected. A series of DPOs will guide policy reform, but be shaped around priorities and emerging issues under the proposed Focus Areas. The results monitoring framework in Annex 1 lays out the proposed sequencing of interventions. 3. Focus areas, Objectives, Program of Lending and Non-lending Activities Focus Area One: Accelerating Sustainable Private Sector-Led Growth 41. The crisis years from 1999 to 2011 led to a dramatic reduction in public and private investment in strategic sectors such as agriculture, manufacturing, and services and a serious degradation of economic and social infrastructure. To help the country reach its potential as a world-class agricultural commodity producer, the CPF program proposes to address low productivity in the agriculture, agri-business, and manufacturing value chains caused by shortfalls in skills and technology. The CPF will also address unreliable electricity and water supply and the deficit in transport infrastructure and cost of logistics which impact how markets work. In addition, the program will encourage growth, especially of SMEs and micro-enterprises, by supporting improvements to the business environment, access to land, and to financial services in general. 42. High-grade and reliable regional infrastructure, including in energy, transport and logistics, is fundamental for the movement of the people, goods and services needed to expand markets and make services available and affordable for the poor. The Ivorian authorities aim to achieve economic diversification and improved access to markets, both domestically and regionally, through strengthened economic competitiveness, which will be achieved through market-oriented and appropriately priced transport, energy and communication services. 43. This Focus Area has four objectives: (i) to improve productivity agriculture/ agribusiness value chains, (ii) to strengthen economic infrastructure especially in transport, trade facilitation and energy, (iii) to improve the business regulatory framework and access to finance and (iv) to formalize and enhance regulatory access to land for business and agriculture. Côte d’Ivoire is already making steady progress on improving regional infrastructure through WBG-supported regional operations in trade, telecommunications and energy and new operations are planned under the CPF. 44. Accelerating private sector growth with investments and improved policies in agriculture and infrastructure rests on better handling of environmental threats that could affect livelihoods and wellbeing of the Ivorian population in the medium and long term. These threats include unsustainable pressure on forests and protected areas4, soil degradation, water pollution and coastal zone erosion. Man-made and weather related disasters and climate change are specific threats that could make agriculture and infrastructure development even more 4 Ivorian forests are not well managed and are subject to illegal exploitation, face pressure from traditional agriculture management and infrastructure development and anarchic mining activities. Those patterns contribute to the degradation of approximately 300 000 ha per year. 19 vulnerable. The WBG will support Government efforts, through the selective use of trust funds, to (i) make cities and human settlements safer, resilient and more sustainable, (ii) take appropriate action to combat climate change and its impacts, and (iii) conserve and sustainably use marine and coastal ecosystems. WBG will provide support in particular to the Reducing Emissions from Deforestation and Forest Degradation (REDD+) initiative, the Forest Carbon Partnership Facility (FCPF) and Forest Investment Program (FIP), which underpin CIV’s national platform to manage risks from natural disasters, improve management of obsolete pesticides stocks and associated waste, and prepare a strategic plan for coastal zone management. A review of challenges and corrective measures for addressing CIV’s medium-term climate change and disaster risks is found in Annex 4. Objective 1: Improve Productivity in Agriculture/Agribusiness Value Chains 45. For CIV to reduce extreme poverty, much of its incremental growth will need to come from the agriculture sector in the short-term as farmers and smallholders are most affected by poverty. The SCD analysis shows that agricultural growth will require measures to improve yields per hectare for its major export crop, cocoa, but also in other key crops such as cashew nuts, cotton, and palm oil through upgrading technologies and improving inputs. In addition, farmers need to acquire knowledge and financial ability to implement resilient agricultural practices that increase productivity and strengthen adaptation to climate change. In order to increase value addition to agricultural products, investments in agro-industries and throughout the related value chains need to be encouraged. While agriculture/agribusiness value chain development will be the main focus of operations under this Focus Area, interventions will also support productivity (e.g. skills, labor productivity, organizational management, etc.) in light manufacturing, services, and other value chains (e.g. tourism) where opportunities are clearly identified. 46. CPF interventions will be implemented through a joint program that exploits cross- WBG synergies and contributes to agriculture and agri-business competitiveness in selected value chains. The program will combine interventions under the IDA Agriculture Sector Support Project (FY14) which include productivity enhancement, market access and sector governance. Interventions would also include a series of IFC productivity-focused actions/projects covering elements of the value chain in cocoa, cotton, cashew nuts, palm oil, rubber and horticulture products, from farm to fork. Where possible, MIGA guarantees will also be used to encourage foreign investment in the sector. These interventions will be complemented by the ongoing and an envisaged second phase of the West Africa Agricultural Productivity Program (WAAPP)—which aims to address productivity limitations in staple crops—as well as regionally-focused interventions such as the proposed integrated growth and competitiveness program in the Greater Abidjan, Bouaké-Korhogo and San Pedro-Man regions, discussed below. These interventions will be further complemented by climate and carbon finance instruments to support yield increases and reduce deforestation. 47. The expected outcomes of this objective are increased productivity in agricultural yields, and increased volume of processing in targeted value-chains. 20 Objective 2: Strengthen Economic Infrastructure 48. Degraded infrastructure and inadequate logistics services have negatively impacted agriculture, agri-business and manufacturing activities, all of which require easy access to consumer markets at competitive costs. The lack of access roads, inadequate storage to hold post-harvest products, and unreliable water supply for irrigation, directly affect farmers and smallholders. Ensuring availability and sustainable management of infrastructure is key to improving productivity and reducing processing costs. Moreover, improved logistics would boost productive investment in sectors including agro-industry, information and communications technology (ICT) and manufacturing. Given that Côte d’Ivoire is one of the most urbanized countries in Africa, value chain development must also rely on cities and towns, which are expected to be centers for economic activity and trade, demand for basic services, and job opportunities. In that vein, and drawing on the findings of both the World Development Report 2009 and the urbanization review, a study conducted in CDI this FY, the CPF will support a secondary cities development operation. This operation will support development of three types of cities: Global Connector cities generating urbanization economies needed for innovation, increasing return to scale activities and global competitiveness (such as San Pedro or Yamoussoukro); Regional Connector cities generating localization economies needed for efficient regional trade and transport (Bouaké or Korhogo); and Domestic Connector cities generating internal scale economies needed to unleash the agricultural potential of their regions (Man or Daloa). 49. The WBG would support improvements in access to water and sanitation services in selected secondary urban centers, by expanding water production and distribution capacities and facilitating access to services, and increasing the resilience of the water supply, particularly for the poor, through social water connections and public stand posts programs; and supporting the implementation of the urban water sector reform and strengthening capacities to deliver and manage services. 50. The WBG will draw on its comparative advantage in multi-modal and spatially focused infrastructure financing within the CPF. The program will support the development of agglomeration economies and inclusive growth around select urban centers, targeting initially the corridors of Bouaké-Korhogo in the Northern region, San Pedro-Man in the Western region and the Greater Abidjan/Port Development initiative in the metropolitan capital area5. These programs would support industrial/SME competitiveness and growth (including as appropriate through linkages and local content development) and the provision of urban infrastructure including roads, electricity, transport (port, roads, logistics services), logistics platforms and industrial land (including water and services). San Pedro, already the top cocoa export port in the world, is well positioned to support the development of the mining sector, agri-business and tourism industry in the region, and to serve the export markets in Liberia, Guinea and Mali. The CPF will support the preparation of an eco-tourism development policy note to explore the nexus between tourism and environment with a specific focus on the San Pedro region and its outlying areas. 5 Building inter-alia, on the Port access improvement study, the logistics platform study under the Abidjan-Lagos Trade and Transport Facilitation Project (ALTTFP), and analytical work undertaken in FY14/15 by the Competitive Industries and Innovation Program Trust Fund (CIIP). 21 51. To meet CIV’s substantial financing requirements, the WBG will support the design and mobilization of financing for large infrastructure programs, notably for energy (liquefied natural gas (LNG) imports and power generation); transport and port infrastructure (Greater Abidjan/port program), urban development growth operations (economic zones, logistics for manufacturing and processing) and water and sanitation (bulk water supply to the Abidjan area). Support will be organized using both traditional and innovative financing instruments designed to crowd-in the private sector, including the Global Infrastructure Facility (GIF). Mobilization of PPPs will also be strongly emphasized. IFC can be expected to play the role of transaction advisor and/or participate in investments, and MIGA will provide guarantees as appropriate. IBRD enclave financing and IBRD guarantees could also be considered as means to leveraging larger capital flows. IDA participation in infrastructure projects will be minimized and consist of support to preparation of projects designed to catalyze and leverage innovative financing sources. 52. Regional Synergies: CIV is strategically positioned as a gateway for the WAEMU/ECOWAS markets and is an important source of demand and diversification for exports from neighboring, especially landlocked, countries. To this end, proposed operations under the CPF will strengthen access to regional markets through trade facilitation, infrastructure/logistics, and removing non-tariff barriers. The Abidjan-Lagos Corridor is a global gateway linking vibrant sea ports, which are particularly critical trade links for the three landlocked countries in the region. Similarly, the Abidjan-Ouagadougou corridor provides connectivity and regional integration from the port of Abidjan to landlocked countries in the Sahel (Burkina Faso, Mali, Niger). The Abidjan-Lagos Trade and Transport Facilitation Program (ALTTFP) supports the scale-up of transport and logistics for regional trade. The new Regional Development Policy operation aims to reform the transport market between CIV and Burkina Faso, and includes measures to modernize the freight market and logistics services. The WBG, together with multilateral donors, is supporting such programs on those two corridors. 53. Household access to electricity is low outside major urban centers, due to lack of investment in rural electrification programs over the past 15 years. For a country of its level of GDP, Côte d’Ivoire is a laggard in terms of the rural population’s access to electricity, with only about a 37 percent access rate. The Government intends to extend the electricity grid to connect 500 villages annually and has ambitious plans to connect a million un-electrified households to the grid over the next five years. IDA is beginning preparation of a project to support increased access to electricity for low-income households, which would focus heavily on the rural population and help to address identified spatial inequalities and accelerate progress towards universal access. The project will also focus on sector reforms, which will help increase the sector’s financial viability and its ability to attract more private investment. 54. To ensure that economic growth is not constrained by electricity shortages, there will be a need to invest in new power generation capacity, which the Government hopes to double by 2020 (to 4000 MW). The objective may be difficult to achieve but the WBG will use its convening powers to assist the authorities to obtain financing as mentioned above. New gas-fired power generation capacity is required by 2018, and as in the past, is likely to be supported by IFC. Gas development by the private sector is proceeding slowly, since there have been no significant discoveries of gas reserves recently. Progress on an LNG import project would help remove the shortage of gas, and the Bank has been assisting GoCI with early-stage analytical work in the field. 22 An LNG project will require a prominent role for private operators and could be developed as a PPP. The project could be considered for IFC and IBRD enclave financing and may require a WB Guarantee. WB Guarantees could also be used in support of private power generation projects, while IDA resources would be limited to the reinforcement of the power distribution network. 55. The expected outcome of this objective is enhanced access to markets, with improved infrastructure, improved logistics and basic services, which should help increase competitiveness and development in targeted agglomeration economies and under-served regions Objective 3: Improve Business Regulatory Framework and Access to Finance 56. The Government has articulated a private sector-led growth strategy fostering the development of industry and MSMEs. This policy, developed with WBG support, comprises: deepening investment climate reforms (a public-private business reform framework has been established under the Prime Minister’s office); developing the financial sector; supporting agribusiness and light-manufacturing (Government’s industrial policy includes measures to promote transformation and manufacturing), and promoting SMEs (SME and export promotion strategies have been developed). 57. The WBG program aims to support Government to implement reforms to improve the business environment, MSME development and the financial sector. The program will distinguish between the different segments within the MSME sector i.e. the overwhelming majority of subsistence micro firms vs. the minority of high-growth SMEs, new vs. existing SMEs, and adapt the response to their specific constraints, building on recent research and lessons learned e.g. on the “gazelles”, a generally small group of high-growth firms that generate most of the economy’s new jobs. It will include DPOs to sustain investment climate reform, and integrated regional development. A new operation will support reforms in the governance of the financial sector, and strengthen the capacity of financial institutions to promote investment in agriculture, agribusiness and manufacturing. The IFC Warehouse Receipt System is specifically designed to address problems associated with the unwillingness of banks and other financial institutions to accept agricultural commodities as collateral. Establishment of a Commodity Exchange would also be explored under this new operation. MIGA products could also be deployed to bolster investor confidence where perceptions of risk remain high. 58. Supporting access to finance is essential to spur SME and entrepreneurship growth in CIV. The WBG will consider support to develop the SME eco-system, including through private equity/venture capital (PE/VC), risk-sharing mechanisms with the local banks to increase the lenders’ comfort level and reduce their demands for guarantees vis-a-vis SMEs, and business development and capacity building. IFC will also seek to develop its SME Ventures mechanisms to facilitate equity investments in growth SMEs that need additional patient capital to boost their debt-raising ability. Concurrently, as with the other SME equity mechanisms, IFC will seek to provide capacity building to these SMEs to improve their corporate governance, strengthen their managerial capacity and prepare them for access to capital markets entry, e.g. bond issues or access to the local stock exchange. 23 59. Supporting access to affordable housing finance can boost inclusive growth and poverty alleviation, with significant transformational impact on the manufacturing and services sector of the country’s economy and urbanization agenda. The CPF will consider the mobilization of a range of WBG activities to develop the housing finance market through regional and national level interventions. The West African Regional Development Bank (BOAD) together with the regional central bank (BCEAO) and the regional housing refinance institution (CRRH- WAEMU) have requested support from the WBG FIRST trust fund to facilitate an expansion in housing finance facilitation across all income groups in West African Economic and Monetary Union (WAEMU) countries. In addition, the CPF will selectively consider support to national- level reforms improving access to long-term finance for lenders, improving property rights to facilitate collateralized transactions and expanding the range of affordable housing finance products targeted at those on lower incomes, and boosting the capacity of SMEs in the construction sector. Through its equity investment in CRRH, IFC will enable this body to scale-up its ability to refinance the mortgage loans issued. Other innovative financing aiming at packaging mortgages and issuing asset-backed fixed-income instruments, and developing crowd-funding schemes to capture savings and allow ordinary citizens to invest in housing will be assessed by IFC together with the Conseil Régional de l’Epargne Public et des Marchés Financiers (CREMPF), the regulator of the capital markets in the WAEMU zone. 60. The expected outcome of this objective is to provide private sector and, for households and micro-, medium and small enterprises (MSMEs) with access to finance and a simplified regulatory framework, that in turn would facilitate business and private sector growth. Objective 4: Formalize and Enhance Regulatory Access to Land for Business and Agriculture 61. Formalizing and enhancing regulatory access to land for both business and agriculture is a priority for stability and development. Clear land rights and informed land transactions are an incentive for both smallholders and private investors, and are a prerequisite for shared growth. Furthermore, access to industrial land with adequate infrastructure is in high demand from investors and important in urban areas. Land rights formalization is crucial for the gradual implementation of a documented land market that provides confidence to stakeholders and facilitates solid business transactions. 62. The Government considers land security a prerequisite for the modernization of the economy. However, the legal framework for land has not been enforced due to legal, operational and institutional constraints. The most important recent innovation was Government’s introduction in 2013 of a single document, the Arrêté de Concession Définitive, designed to simplify the procedure required to obtain a land title in urban areas. To meet the demand for land for economic activities, the Government decided in 2013 to create a National Fund for the Development of Industrial Zones and an agency to manage the development. The CPF proposes to support improvement to the land management system through a Land Reform Implementation operation, as well as through crosscutting support in other operations. The operation would support the sustainability of agricultural value chains in rural areas, and the completion of the land policy design and land rights registration. The CPF would also support government efforts to improve the incentive and institutional framework for access to industrial land, the measures for which are linked to the regional development initiatives planned under Objective 2. 24 63. The expected outcome of this objective is the development of a more transparent and economically-viable land market. Donor Coordination: Focus Area One 64. The WBG will continue to seek common approaches with other donors to increase aid effectiveness and reduce fragmentation across this Focus Area. Coordination in the agricultural and agribusiness sector centers on the National Agricultural Investment Program (NAIP). Donor coordination has been institutionalized through a donor platform established in 2010, covering agricultural and rural development, environment and biodiversity with participation of all key ministries. Complementarities among donors have already been established on crop productivity and access to markets; agricultural supply chains; sector governance; and capacity building, through collaboration and parallel financing among the WBG, European Union (EU), Deutsche Gesellshaft fur Internationale Zusammenarbeit (GiZ), African Development bank (AfDB), Japan International Cooperation Agency (JICA) and French Development Agency (Agence Française de Développement, AFD). The WBG will also build on the existing partnership between IFC and Canada on agribusiness initiatives supporting cocoa cooperatives and smallholders, and cashew value chain enhancement. 65. Large infrastructure requirements will be met through a combination of WBG assistance and support from other partners and the private sector. The largest donors in the infrastructure sectors have traditionally been the World Bank, the EU, AFD, AfDB, Arab development partners6, and Germany, with increasing financing from China. In transport and urban infrastructure, the coordinated work that has supported recent sector reforms and reconstruction provides the basis for future assistance. Longer-term infrastructure and energy development requires a modified architecture for donor partnerships, for which WBG capabilities in mobilizing financial packages will be instrumental. Support for energy is likely to expand, following a donor Round Table planned for late 2015. 66. The WBG will continue to coordinate closely with other donors to improve CIV’s business environment and access to finance. Donor committees on Industry/SME development and Private sector development/Business climate are led by the WBG and include the United States Agency for International Development (USAID), United Nations Industrial Development Organization (UNIDO), Canada, EU, AfDB, JICA, and Agence francaise du Développement (AFD). As CIV is part of the Conflict Affected States in Africa (CASA) initiative, specific IFC programs in the country benefit from funding from the pool of donors supporting the program (the Netherlands, Norway, JICA and Ireland) for microfinance, investment climate and mobile financial services. 67. There is strong support from the international community for land reform. The donor group on rural land is co-led by the EU and the WB, includes AfDB, AFD and FAO, and has focused on implementation of the 1998 Land Law. The WBG’s proposed land operation will be closely coordinated with the EU’s planned budget support, and possible French support. Given the 6 Arab Bank for Economic Development in Africa (BADEA), Islamic Development Bank (IsDB), Kuwait, and Saudi Arabia. 25 importance of land to other sectors and development goals, the WBG will also coordinate with other sectoral working groups. Focus Area Two: Building Human Capital for Economic Development and Social Cohesion 68. Focus Area 2 has three objectives: (i) improve education service delivery and youth employability; (ii) expand affordable social protection systems; and (iii) improve delivery of quality health and water services. The proposed objectives are consistent with Government policies discussed under each objective below, and with the WBG twin goals of eliminating extreme poverty and promoting shared prosperity. In the short term, CPF interventions would help increase the consumption of the poorest 40 percent of the population, and protect their assets from depletion through targeted safety nets and employment opportunities. In the medium to long term, the CPF interventions would build household capabilities and improve their productivity through a higher level of human capital development and increased resilience through higher levels of protection and the building of productive assets. In particular, Focus Area 2 will follow a multiple parallel track approach:  Helping the country build fiscally sustainable national systems for education, health, nutrition and population and social protection to ensure (i) consistency in approaches across regions and socio-economic categories, (ii) effective allocation of resources across levels of service delivery (primary, secondary, and tertiary and approach), (iii) efficient use of resource for higher quality of services, and (iv) improved synergy across sectors including use of common instruments (e.g. national targeting, registry and monitoring and evaluation systems).  Focusing WBG interventions to address inequality of access to quality basic social services both vertically (across the poverty scale) and horizontally (across regions, ethnic groups, social-economic groups).  Drawing on the SCD findings, interventions under this Focus Area will have a strong gender dimension to ensure equal access to social services including through differentiated design and implementation, as well as appropriate monitoring systems.  Capitalizing on regional integration by supporting the development of regional platforms/hubs in particular for the health and education systems; and promoting knowledge sharing through exchange of expertise and communities of practice in key areas such as youth employment, social safety nets, and universal health coverage. Objective 5: Improve Education Service Delivery and Youth Employability 69. Education and market-responsive skills are critical for the economic transformation sought by the Government, and for ensuring that benefits from growth reach the poorest and are equitably shared. CIV’s education system, including technical and vocational training, has suffered from weak governance, lack of a clearly defined mission, and poor linkages with private sector stakeholders and labor market needs. The Government’s employment policy aims to encourage job creation in the private sector by supporting specialized training, while in education, the strategy calls for universal primary education, reforms in higher education and youth training consistent with labor market needs; and expansion of vocational training to improve labor productivity. 26 70. The WBG plans to support the Government in improving the relevance, quality and performance of the education and vocational training systems. This will ensure better insertion and integration of youth into the labor market and will be pursued through targeted support to educational services at primary, secondary and higher levels. For higher education, the WBG will support the Government to improve employability of tertiary education graduates by focusing on strengthened and improved (i) governance of the institutions and participation of the private sector, (ii) quality and relevance with a better alignment with market needs and (iii) efficiency and equity. Furthermore, to support CIV’s attainment of its economic transformation goals, the WBG will support the strengthening of science and technology skills and applied research capacities to accelerate absorption and increase productivity. With rising interest from African governments in higher education policy reform, a regional approach offers a cost effective strategy to build responsiveness and excellence in CIV’s higher education in priority areas. Through the support under this CPF, CIV will participate in the regional Centers of Excellence program, thus helping to make its human natural capital more viable for economic activities. 71. The WBG will also support Government reforms designed to better define its role in promoting employment and its relationship to private sector stakeholders, and to address the large number of agencies with overlapping mandates and funding. The WBG contribution A range of potential areas for additional interventions could include: Box 2. Additional Opportunities to Enhance Youth Employability 1. Interventions to raise productivity in the non-agricultural self-employment (informal) sector, including: a.. Development of a national strategy for the non-agricultural self-employment (including non-wage and informal) sector and institutional reform to improve representation and voice from the sector. b. Implementation of innovative integrated interventions that alleviate multiple constraints in relation to credit and finance, market access, skills. 2. Implementation of core elements of agricultural policy that seek to raise farmers’ productivity and facilitate livelihood diversification, including through better access to land, credit and finance, technology, value chains, skills. 3. Interventions to improve the business environment and productivity in the modern wage sector to foster formal entrepreneurship and increase the number of firms on the demand-side of the labor market. 4. Interventions to improve skills through education and vocational training reform; including: c. Acceleration of TVET reforms through the introduction of results-based approaches; d. Establishment of a framework for public-private partnership to enhance relevance of skills and employability; e. Consideration of potential incentives to leverage the private market of skills providers; f. Governance reform through the development of performance contracts; g. Adaptation of training supply to local development needs, including for informal and non-wage sectors. 5. Improved dissemination of information and data on employment to facilitate decision-making among policymakers and citizens: h. Improvements in the knowledge base on effective employment policies and interventions through better data collection, monitoring and evaluation; i. Broad dissemination of information on employment prospects to increase awareness of opportunities and pathways to more productive employment, especially to shape aspirations among youths and women. 6. Strategies that leverage programs of government and non-governmental organizations to deliver innovative productive interventions targeting the most vulnerable and poorest, especially women. 27 will include work and advisory services to support the implementation of a broader and more inclusive jobs strategy. A more diverse range of potential WBG interventions are given in Box 2. Objective 6: Expand Affordable Social Protection System 72. Diagnostic work under the SCD shows that because of lack of social protection measures, welfare among poorer households has been more negatively affected by recent shocks than that of the general population. The bottom decile has experienced the greatest losses in household consumption. Therefore, building a social protection system can help channel much- needed resources to the poorest households. The Government programs in social protection as non- contributory safety nets are still in their infancy, and contributory social security only covers a small proportion of the population in formal jobs. 73. The CPF program proposes to support the Government in establishing the basis for a national social protection system. It will also provide cash transfers to the poorest households in the most vulnerable regions with a view to increasing household consumption and addressing demand-side financial barriers to social services. The WBG will also support the Government’s pilot cash transfer program in the poorest regions. Objective 7: Improve Delivery of Quality Health, and Water Services 74. The binding constraints to health service utilization can be grouped into four areas: access, affordability, availability, and acceptability. The WBG program proposes to support Government’s implementation of its health policy, which aims to improve the use and quality of health services, improve maternal, and child health services; and reinforces prevention, health promotion and medical outreach. The Government’s population policy includes fostering women and girls empowerment, and thus increase demand for reproductive health services and potentially stimulate the supply side. 75. The WBG will also support improvements in the performance of the health system. WBG interventions help to: (i) design and implement a pilot performance based financing (PBF) approach to increase the volume and quality of services provided to the population, with a focus on improving the effectiveness of “Targeted Free Care” and other reproductive, maternal, newborn and child health interventions including nutrition; (ii) rehabilitate selected health centers and provide equipment to support the provision of quality health services; and (iii) develop a robust health management information system (HMIS) and health system management. 76. Regional Synergies: To boost health indicators, including nutrition, the country will foster and benefit from regional integration through the Sahel Women Empowerment and Demographic Dividend Project, one of the objectives of which is to enhance availability of drugs (through regional procurement and improved distribution) and qualified midwives (through increased training). Further opportunities for regional integration in health could come from CIV’s participation in a new Regional Disease Surveillance operation designed to prevent major epidemics, including Ebola. 28 Donor Coordination: Focus Area Two 77. Côte d’Ivoire has a number of development partners in the areas of human capital development and service delivery, with established coordination mechanisms. Working groups among donors focused on education-employment, led by World Bank; health, led by WHO; and water and sanitation, led by the EU. The education sector and promotion of youth employment is supported by AFD, Germany; United Nations Children’s Fund (UNICEF); Islamic Development Bank (IsDB); USAID, Australian Agency for International Development (AusAID), Japan Fund, and World Food Program (WFP) and coordinated their assistance. For example, the AFD youth employment project shares the same project implementation unit as the ongoing World Bank Emergency Youth Employment and Skills Development Project. The WBG will continue to exchange lessons and successful approaches to broaden the response to the jobs and youth employment challenge. UNICEF, WFP and some NGOs are active in social protection activities. The WBG will coordinate with other donors as it helps the Government develop a social protection system as well as in health nutrition and population programs. Key donors include the AFD, EU, United Nations Population Fund (UNFPA); the Global Fund, USAID, UNICEF. Donor programs cover a broad range of activities, including, human resource development; supply chain development for the provision of drugs and medical supplies; HIV/AIDS, tuberculosis and malaria. Coordination in the water sector increased with the establishment of a sector group, led by EU and UNICEF, following the June 2013 Donor Consultation Meetings, where the Government announced its ambition to mobilize US$600 million to tackle water supply shortages. Key donors are the EU, AFD, the Netherlands; Germany; JICA and UNICEF. The WBG proposal to develop innovative financial packages in water corresponds to the Government’s goal to strengthen institutional capacities and service delivery in the sector. Focus Area Three: Strengthening Public Financial Management and Accountability 78. To ensure effective public service delivery and spatial inequality reduction, this area will focus on strengthening good governance, and particularly public financial management and accountability. 79. Focus Area 3 thus has three objectives: (i) improve allocative efficiency and quality of expenditure; (ii) increase domestic revenues and maintain debt sustainability; and (iii) increase accountability and transparency in public expenditures. 80. CIV plays a pivotal role in the functioning and policy and decision making in the WAEMU and BCEAO zones. Sustained macroeconomic stability in the country will not only advance the regional integration agenda, but also facilitate the expansion of regional financial and capital markets. Under the CPF, the WBG will continue to provide budget support, both national and regional, targeting specific and robust reforms, combined with sector investment projects, to strengthen gains already achieved and to address outstanding shortcomings in policy coordination, macroeconomic convergence and fiscal and financial systems. 29 Objective 8: Improve Allocative Efficiency and Quality of Expenditures 81. CIV has already taken a number of measures to improve the quality of spending, but some aspects of public financial management (PFM) need improvement. These include monitoring the status of arrears, ensuring that comprehensive information is included in budget documents, and reinforcing payroll controls. 82. The Government will continue to align its legislative PFM standards with those of the region through implementation of the new Organic Budget Law and the Transparency Code for Public Financial Management. A new budget management framework set up in compliance with the WAEMU guidelines on PFM, is now being deployed in all ministries. Adoption of this multi-annual approach to budgeting aims to improve the efficiency of public resource management and the fiscal space over the medium term, while strengthening fiscal responsibility. The executive’s accountability citizens and taxpayers will also be strengthened by the publication of ministerial budget programs and their performance plans and reports. The increase in accountability and scrutiny over the allocation and use of public resources is expected to reduce inefficiencies, waste and disparities. Next steps in implementation include the creation of procurement audits, the establishment of a Directorate for the monitoring and evaluation of public contracts, and the appointment of a steering committee to implement the PFM framework. The ongoing WB Governance and Institutional Development (DGDI) Project, and the proposed Governance and Financial Sector project will support the Government’s efforts to improve the quality of expenditure and allocative efficiency through implementation of the PFM action plan; and improvement of the central government’s performance-based budgeting with the preparation and adoption of Multi-year programming documents of key sectors. Objective 9: Increase Domestic Revenues and Maintain Debt Sustainability 83. While fiscal revenue has improved since 2012, CIV’s tax-to-GDP ratio has declined since the end of the crisis. The increase in fiscal revenue largely reflects an increase in development assistance, while revenue collection by the tax and customs authorities have not kept up with economic growth. Of particular concern is that CIV ranks No.175 out of 181 on the Cost of Doing Business on the indicator of paying taxes. This poor ranking reflects the focus of the tax administration on a small tax base consisting mainly of larger, formal sector enterprises, while most of the informal sector is untaxed. In addition, there are delays in reimbursement of VAT and a large number of quasi-fiscal levies imposed on an ad-hoc basis by ministries. 84. With a view to strengthening revenue collection, reforms of tax policy and administration will be introduced. The main reform objectives will be to (i) streamline tax procedures, especially in the area of VAT, so as to improve VAT refunds; and (ii) consolidate the number of quasi-fiscal levies. In customs administration, objectives of the reform will be to simplify customs clearance procedures, while helping to implement some of the recently adopted reforms such as the interconnection agreement with Mali and Burkina Faso7. Simplification and 7 Supported by the Regional Trade Facilitation and Competitiveness DPO, the customs services of Côte d’Ivoire, Burkina Faso and Mali signed a Memorandum of Understanding in March 2015 defining the technical specificities; budget and action plan for the implementation phase of the interconnection agreement, a commitment towards regional integration for WAEMU countries. 30 streamlining of tax processes may also contribute to including the informal sector in the tax base, a key objective of the government under its present reform program. 85. The WBG will support the Government’s efforts to strengthen revenue collection. The planned programmatic DPO series will support measures aimed at improving tax administration, including gradual broadening of the tax base and the simplification of the VAT reimbursement mechanism, as well as measures to improve customs administration. Furthermore, to build capacity, the WBG program will provide technical assistance through the DGDI and the Governance and Finance Sector operations in tax and customs administration. 86. Debt relief has greatly improved the sustainability of the public debt profile, but challenges remain. A combination of bilateral and multilateral debt relief has cut CIV’s nominal debt stock by about two thirds. This has allowed the authorities to resume debt service payments to commercial creditors and normalize creditor relations, increasing its ability to pursue countercyclical fiscal policies and make strategic public investments. However, the resumption of regular interest payments and the likelihood of new borrowing, especially in the context of new initiatives in the area of infrastructure and social spending, will increase debt service requirements over the medium term. . The WBG program will include budget support, investment lending and technical assistance for debt management to help operationalize the medium-term debt strategy (MTDS) and improve the expected reorganization of the Debt Management Office, and help ensure that the debt situation of public enterprises, including contingent liabilities from Public- Private Partnerships, is adequately covered. 87. The expected outcomes for this objective will be an improved effectiveness of tax collection, an improved ranking of CIV on the ‘paying taxes’ indicator on the Doing Business index and maintenance of moderate risk of debt distress for Côte d’Ivoire based on the assessment in the Debt Management Performance Assessment (DeMPA). Objective 10: Increase Accountability and Transparency in Public Expenditures 88. Improvement of the quality of expenditure requires enhanced systems, processes, transparency, and accountability for investment selection, financing, monitoring, and evaluation. A 2013 Bank study on boosting capital expenditure in WAEMU countries shows that a significant part of the investment budgets intended to develop human and physical capital are not spent as intended, or translated into tangible results for communities, due to weak accountability and outstanding issues on budget preparation and execution processes, including poor selection criteria, long and inefficient procurement processes, implementation delays, and cost overruns. To address these issues, the WBG proposes to provide support in public financial management, particularly regarding the planning, execution, and monitoring of expenditures. 89. Citizen engagement and social accountability. So far Bank interventions in CIV have been more focused on the supply side. The CPF will be used to integrate multi-stakeholder approaches and demand-side governance into our sector operations. WBG will support Government’s agenda for eligibility in the Open Government Partnership (OGP). As of 2014, CIV’s score for OGP eligibility is 0.5 and needs to get to the cut-off point of 0.75. CIV is compliant with the Access to Information and Assets Disclosure requirements for which national laws have 31 been approved by the Parliament, although there are still issues with their effective implementation. Two major areas where progress is still required are with regard to citizen engagement and budget transparency. The WBG will pursue its operational support to the Governance agenda and provide technical assistance to support the OGP while helping to mainstream demand-side governance through participatory budgeting programs and use of information communication technology (ICT). It is also expected that CIV will join the Global Partnership for Social Accountability initiative. 90. The expected outcome in this Focus Area is an improvement of transparency and oversight mechanisms. Donor Coordination 91. Côte d’Ivoire has a number of active partners in the area of public financial management and accountability. The Public Expenditure Management and Financial Accountability Review (PEMFAR) action plan approved by the Government provides a framework for donors to coordinate and target their interventions, and donor initiatives are supported by a sector-working group. To have lasting impact on accountability and anti- corruption, a strong judicial system is required. In 2011, the Government developed a justice sector strategy and a multi-annual action plan (2013-2015) has been prepared. Given its importance a number of donors are involved in justice reform programs and accountability issues will be incorporated into the DPO agenda. Implementing the FY16-19 Country Partnership Framework Financing and Instruments The CPF will feature a mix of instruments, drawing on the strengths of three institutions of the WBG (IDA, IFC and MIGA), to provide CIV with a package of assistance to best address the country’s ambitious development objectives. Indicative IDA allocations to support the CPF could be in the range of US$0.6-0.7 billion, of which about US$0.2 billion are firm allocations in FY16. In outer years, actual allocations will depend on: (i) the total IDA resources available; (ii) the country’s performance rating, per capita GNI, and population; (iii) the terms of IDA assistance (grants/credits); (iv) the allocation deductions associated with Multilateral Debt Relief Initiative (MDRI) annual debt service foregone as applicable; (v) the performance, other allocation parameters, and International Development Association (IDA) assistance terms for other IDA borrowers; and (vi) the number of IDA-eligible countries. IFC will increase its support for private sector development through investment, loans and advisory services aligned with the Government’s priorities and programs. IFC investments, subject to demand, could tentatively be of the order of US$1 billion. MIGA is open to analyzing new guarantees, but their scale cannot be anticipated at this point. CIV is also interested in engaging with the WBG on the possibility of accessing International Bank for Reconstruction and Development (IBRD) resources. This step would be contingent upon the Government’s request for a creditworthiness review and the Credit Risk Department’s determination of CIV’s eligibility for such a review. A summary table with the proposed program of WBG lending for the CPF period FY16-19 is presented in Table 1. More detail on the inter-linked financing instruments, analytical work and advisory services planned at this time are found in Annexes 7 and 8. 32 Table 1: WBG Areas of Engagement Delivering the World Bank Group’s Program 92. The ability of the WBG to deliver the proposed financing support will depend on a number of factors, including: (i) country performance as assessed annually by the Country Policy and Institutional Assessment (CPIA); (ii) country capacity to produce relevant, transformational and well-structured operations, potentially eligible for PPPs, guarantees or enclave financing; and (iii) sustained reform agenda and improved governance including strengthening of the judicial system, so as to attract and crowd-in private sector investment. Regarding the Bank’s financial support, since IDA 17 is at mid-term review stage and the IDA 18 replenishment process has not commenced, the IDA envelope during the CPF period is indicative. The envelope is determined on the basis of the IDA 17 cycle and the assumption, all things being equal, that IDA 18 resources will be at a comparative level. Should such an assumption not materialize, the program will be 33 adjusted accordingly. Any reduction in the IDA allocation will be offset by reducing the financing of budget support operations. Expected increased fiscal space during the implementation phase of the CPF will help off-set any reduction in budget support operations. 93. IDA support under the CPF will include a blend of policy-based and investment operations, GEF, and other trust funds administered or funded by the World Bank Group. IDA allocations during the Country Partnership Framework (CPF) period will depend on total IDA resources available and the country’s performance. Up to 40 percent of the indicative financing is expected to take the form of budget assistance to support the government’s policy reform agenda. IDA is expected to finance up to nine new operations – up to five investment operations and two budget support series of two years each. In addition, IDA will finance a select number of regional operations that include Côte d’Ivoire. Analytical work and technical assistance will continue to be designed as a precursor to planned financing, and carried out in areas of WBG’s comparative advantage. 94. The CPF will feature a particularly strong role for IFC financing and services. IFC will continue to increase its support for private sector development through investment, loans and advisory services aligned with the Government’s priorities and programs. The lack of adequate funding available to SMEs was recognized in the SCD as an obstacle to the growth of the SME sector and providing access to finance to SMEs was identified as a priority. As risk appetite (rather than lack of liquidity) is the obstacle preventing banks from financing SMEs, IFC will focus on offering risk-sharing facilities and guarantee mechanisms to local Ivorian financial institutions, rather than loans. These risk-mitigating instruments will help to improve the risk profile of SMEs evolving in selected, targeted segments, i.e. SMEs clustered around specific economic activities, such as suppliers and/or distributors of large multinationals, associations of pharmacies/drugstores, cooperatives (recognized by law as SMEs), small private companies involved in transport of goods and passengers, etc.). By focusing on SME clusters, IFC will offer the selected banks the critical mass and volume needed for the facility to be attractive to the banks. In addition, capacity building initiatives by IFC’s Advisory Services branch will supplement the financing and strengthen the SMEs’ managerial capability. For example, IFC is sharing the risk for a credit line set up on the leasing model to allow 70 cocoa cooperatives (regrouping about 75,000 cocoa farmers) to benefit from medium-term financing from a local Ivorian bank to acquire the trucks, tractors and other agricultural equipment needed to improve yield/productivity of the cocoa farms. Concurrently, IFC’s advisory services branch is providing coaching and capacity building to the cooperatives to improve their governance, enhance their managerial capability and increase their financial performance and long-term sustainability. 95. MIGA has an existing exposure of US$800 million, making CIV one of its highest exposure countries. Future support will be developed in response to needs articulated by requests from foreign investors. 96. CPF Implementation. The WBG will continue to maintain a substantial presence on the ground. Program leaders and most task team leaders will continue to be assigned to the field, and work out of the regional office in Abidjan. Working closely with the Washington anchor unit, the regional office will continue to monitor portfolio performance through country level reviews to allow timely resolution of implementation issues. 34 Government Financial Management and Procurement Capacity 97. The Government has made progress in improving public financial management. A Public Expenditure and Financial Management Report (PEMFAR) carried out in 2012-13 with support of the Bank, IMF the EU and the AFDB showed that progress had been made in 18 of the 28 indicators measured between 2008 and 2012. Despite this progress, several issues identified in 2008 relating to downstream operations in the budget management cycle, such as budget execution and resource management, internal/external audits continue to present problems. As a follow up to the PEMFAR recommendations and WAEMU Public Financial Management Directives, the Government, with support from the Bank, the EU and the AfDB, prepared a strategic framework and action plan to modernize the PFM system and implement the sub-regional guidelines 98. Public procurement has improved. The procurement code is now applied to most public contracts; single source contracts have been reduced, there is greater transparency of information and a regulatory office in Government staffed with professionals has been established. An integrated public procurement information management system provides public access to procurement information. The National Procurement Regulatory Authority (NAPRA) was created in 2009 and is operational; it publishes signed procurement contracts regularly. Public financial management and procurement reforms will continue to be supported under the WBG program under Focus Area 3 as discussed above. ASSESSING, MANAGING AND MITIGATING RISKS TO THE CPF PROGRAM 99. As the country emerges from crisis, it is putting in place the main building blocks to prevent and overcome causes of conflict and political instability. Four years after the severe post-election crisis, Côte d’Ivoire has made impressive progress in macroeconomic management, institutions functioning, services delivery and capacity building. Of particular note are (i) CIV’s rapid and sustained improvement in CPIA ratings, as highlighted in Section B. above, which demonstrates marked improvement in institutions and governance; and (ii) the country’s successful institutional response to the Ebola outbreak in neighboring countries. However, significant risks, principally related to a challenging political economy remain, and could impact the implementation of the CPF. Risks to the CPF program have been assessed using the Standardized Operations Risk-rating Tool (SORT) and are summarized in Table 2. Table 2: Risk in Côte d'Ivoire Risk Categories Rating (H, S, M, L) 1. Political and governance S 2. Macroeconomic M 3. Sector strategies and policies S 4. Technical design of project or program M 5. Institutional capacity for implementation and sustainability S 6. Fiduciary M 7. Environment and social M 8. Stakeholders M Overall M 35 100. The main risks to strategy and program implementation, coupled with proposed approaches for mitigating them, are: 101. Political risks. The 2015 presidential elections to be followed by municipal and legislative elections in 2016 will be the first test of the solidity of the process initiated in 2011. In general, electoral periods generate risks of populism and postponement of important decisions that could constrain fiscal discipline and delay execution of programs. Government’s recent decision to increase electricity tariffs just four months prior to presidential elections suggests that this risk is low, thanks to Government ownership of reforms and its commitment to sustain hard-won macro and fiscal stability. In addition, the ongoing peace process has achieved a significant reduction in armed conflict. 102. Conflict and security risks. Residual and localized insecurity mainly in the western part of the country could be exacerbated by the forthcoming elections, impacting design and implementation of nation-wide programs supported by the Bank. The public finance and sector reform agenda which promotes greater transparency and accountability in the management of resources including public investment, combined with the Post Conflict Assistance Project designed to support social cohesion, will contribute, in the medium-term to mitigate risks associated with conflict. Additional projects envisioned in the present CPF to accelerate universal access to basic services will favor inclusion towards lasting peace. 103. Commodity price risks. CIV remains vulnerable to price and climate fluctuations that may affect its main export commodities: coffee and cocoa are particularly vulnerable as production of these commodities is the primary source of income for the country. Negative shocks would affect external balances, fiscal position and rural incomes. The reduction of trade and transport costs expected from reforms supported in the context of series of DPOs, further diversification of the agriculture sector supported by the ongoing Agriculture sector support project and the Growth pole initiatives will together contribute to reducing vulnerability to external shocks, hence offset such risks. 104. Technical and institutional capacities to design, implement, monitor and evaluate programs. The new CPF includes a variety of programs and instruments to help the country mobilize additional resources and implement for results. This is key as CIV has an ambitious agenda to address the residual consequences of crises and at the same time become an emerging economy by 2020. To support this agenda, IDA’s specific interventions need to be complemented by transformational and structuring operations supported by the World Bank as a group. CIV’s public and private sectors have the needed competences to leverage the Bank, IFC and MIGA support. The CPF provides further capacity building through technical assistance and training to help CIV design and implement transformational projects in a synergistic way. 105. Côte d’Ivoire’s recent political developments present an opportunity for the country to move to inclusion and integration. Despite progress in recent years, there is a continued risk that conflict might re-emerge before domestic institutions are developed and are ready to mediate 36 competing demands.8 This CPF is based on the assumption that the risks involved are outweighed by the urgent needs of the country and opportunities presented by political developments. The principal risks for the program are associated with political developments, governance issues and weak institutional capacity. Given country conditions, the WBG will maintain flexibility. To this end, portfolio monitoring will continue to be given priority. The Bank will monitor the pace of key reforms, such as those related to governance, transparency and land regulations as the absence of actions in these areas is bound to affect stability. The mid-term Program and Learning Review (PLR) will allow for modifications to the WBG program. 106. Governance risks. These reflect a legacy of lack of transparency and corruption, which the current Government is attempting to correct, and a lack of political will. Weak governance will be reflected in a faltering commitment to reforms due to public resistance and/or political opposition, which had serious consequences in the past. Inaction in the politically difficult areas of land registration and bringing greater balance in the allocation of resources to the least developed regions could lead to a renewal of conflicts. Also, the partnership between the WBG and the Government is strong and candid, and will allow calibration of reform efforts to ensure political and social sustainability. Policy dialogue to support DPO’s is a central feature of the program and this will help identify issues quickly. A strong communication and public outreach campaign, by both the client and by the WBG, will also help mitigate internal risks. 107. Institutional weakness in Government will affect program implementation. Incorporating institutional reform elements and capacity assistance in new operations will mitigate risks. This risk will also be mitigated through careful sequencing of projects recognizing and addressing the country’s institutional weaknesses, and providing built-in flexibility for course correction. Engagement in new areas will build on strong AAA to inform subsequent operations such as agriculture, land reform and education. In addition to building capacities in government agencies, key programs will be implemented by teams with strong experience; and new teams will receive adequate training for the tasks. The Bank will have a substantial presence in the field and will monitor programs closely. All investment operations will have built-in institutional and capacity building features. 8 The 2011 WDR on Conflict, Security and Development found that creating legitimate institutions, which can prevent violence takes significant time in even the fastest-transforming countries where it has taken between 15 and 30 years to raise their institutional performance from a fragile to an institutionalized state. 37 Annex 1: CPF Results Monitoring Matrix Focus Area 1:  Accelerating Sustainable Private Sector‐Led Growth  Côte d’Ivoire has seen a dramatic reduction in public and private investment in strategic sectors and a sharp deterioration of economic infrastructure during  the  crisis  years.  The  Government  seeks  to  reverse  these  trends  and  address  the  bottlenecks  that  have  prevented  growth  from  being  higher  and  more  inclusive,  as  evidenced  by  the  SCD.   Achieving  these  strategic  objectives  will  require  the  creation  of  more  and  better  jobs  which  are  derived  from  more  competitive  economic  sectors,  requiring  access  to  inputs,  information,  technology,  land,  markets,  and  finance.  This  Focus  Area  supports  this  strategy  through combining support to private investments, leveraging financial resources for a more sustainable provision of infrastructure services, policy reforms  and  support  to  potential  growth  sectors.  This  focus  area  hence  has  four  objectives:  (i)  improving  productivity  in  agriculture/agribusiness  value  chains,  (ii)  strengthen economic infrastructure, (iii) improving business environment and access to finance and (iv) formalizing and enhancing access to land for people  and business.  Objective 1: Improve productivity in Agriculture/Agribusiness value chains  Intervention  Logic: For Côte d’Ivoire  to  reduce  extreme poverty  much  of  its  incremental  growth  will need  to  come from  the  agriculture  sector  as  farmers  and smallholders are most touched by poverty. The SCD analysis shows that agricultural growth will require measures to improve yields but also to reduce  inefficiencies in the agribusiness value chain, and the WBG had already started working on this issue.  Côte d’Ivoire wants to promote sustained, inclusive  and sustainable economic growth, full and productive employment and decent work in agriculture, manufacturing and selected services. To help the country  reach its potential as world‐class agricultural commodity producer, the CPF program proposes to address low productivity and jobs in the agriculture, agri‐ business and manufacturing value chains, which are caused by shortfalls in skills and technology. Productivity‐focused support will target the value chain in  staple or cash crops ‐ cocoa, cashew nuts, palm oil; as well as horticulture and livestock products, underpinned by interlinked interventions under the other  Focus  Area  1  objectives,  such  as  infrastructure  services  connecting  agriculture  to  agglomeration  economies  with  outlets  for  economic  activity  and  trade,  demand  for  basic  services  and  for  job  opportunities.  Sustainability  issues  and  climate  change  challenges  in  the  commodity‐oriented  sub‐sectors  will  be  targeted, through approaches to climate‐smart agriculture. In view of the large number of rural poor, agricultural development has direct implications for  poverty  reduction.  The  CPF  interventions,  based  on  the  IFC‐WB  Joint  Agribusiness  Strategy,  will  support  agriculture  and  agri‐business  competitiveness  in  selected  value chains,  by  access  to  markets, provision  of  technology  and  training  of  smallholders,  sector  governance  reforms,  a  series  of  IFC productivity‐ focused actions/projects covering elements of the value chain in cocoa, cotton, cashew nuts, palm oil, rubber and horticulture products. These interventions  will be complemented by support for staple crops productivity and environmental sustainability, and build on synergies and partnerships with other donors  on crop productivity; agribusiness; sector governance; and capacity building, with Canada, EU, GiZ, AfDB, JICA and France.   CPF Objective Indicators   Supplementary Progress Indicators  WBG Program Harvested yield per hectare (cocoa)   Areas of village plantations planted with  New Baseline: 450 kg/hectare (2015)  improved planting materials:    POPs Pesticides Management (P131778)  Target:1t/hectare (2019)  Baseline: 0 (2015)   PRSC 3    Target: 20,000 ha cocoa (2019)   New DPO series        Urban Development for Competiveness and Inclusive  Product processed: volume of product (t);    Growth  (cashew)   National REDD+ Action Plan/Strategy approved     New land tenure operation  Baseline: 70,000 t (2015)  Baseline: No (2015)   SME Capacity Building in Agri‐Business   Target: 200,000 t (2019)  Target: Yes (2019)  38     Number of farmers reached (gender  IFC :    disaggregated):    IFC Cargill Cocoa RSF Agriculture and Forestry    Baseline: 0 (2015)   IFC Investment climate “Africa Gender“    Target: 140,000 (2019)      On‐going  Number of SME and cooperatives reached   Agriculture Sector Support Project (PSAC)  (cocoa, cashew)  (P119308)  Baseline: 0 (2015)   Agriculture Sector Support Impact Evaluation  Target: 500 (2019)  (P145721)   REDD+ Readiness Preparation in RCI  (P149801)    West Africa Coastal Areas Management TA  (P152518)    West Africa Agricultural Productivity Program APL  (WAAPP) (P117148)   Dialogue on Cocoa & Commodities Value Chains TA  IFC :   IFC regional OHADA (Organisation pour  l’Harmonisation des Droits des Affaires)    IFC SIPRA (Société Ivoirienne de Production  Animale)   IFC Barry Callebaut    IFC Cargill Advisory Program    IFC Investment Climate Agribusiness    IFC Investment Climate Africa Gender   Objective 2:  Strengthen Economic Infrastructure Intervention Logic: The lack of access roads, unavailability of adequate storage to hold post‐harvest products, and unreliable supply of power and water for  irrigation directly affect farmers and smallholders. Building resilient infrastructure to promote an inclusive and sustainable industrialization is a key driver  to the Emerging Economy Status Côte d’Ivoire aims to achieve by 2020. Ensuring access to affordable, reliable, and sustainable energy for households and  enterprises alike, is one requirement to improving productivity and reducing processing costs. Developing quality, reliable, local, regional and trans‐border  transport  systems,  and  overall  logistics  infrastructure  to  facilitate  trade  and  support  economic  development  will  also  be  key  to  allowing  all  actors  in  the  agriculture chain to easily access targeted consumer markets at competitive costs. The CPF will draw upon WBG comparative advantage in multi‐modal and  spatially‐focused  infrastructure  financing,  through  a  combination  of  investment  lending,  policy  reforms,  and  convening  services  for  leveraging  additional  funding to enable Côte d’Ivoire to scale‐up infrastructure development. The WBG will coordinate its assistance with other financiers and donors, including  China, India, BOAD, and EU, to focus on electricity access expansion and with EU, AfDB, AFD, IsDB, WBG around the enabling environment and infrastructure  reconstruction.  The  provision  of  essential  infrastructure  and  logistic  services  would  help  strengthen  economic  competitiveness  of  the  country  over  time,  while reducing spatial disparities through growth poles beyond the capital.   39 CPF Objective Indicators   Supplementary Progress Indicators  WBG Program Average transit time between Abidjan and  An action plan has been adopted for clearing all  New Ouagadougou  remaining cross‐arrears in the energy sector   New DPO series (2 years)  Baseline: 140 hours (2015)   Baseline: No (2015)   Rural Electricity Access   Target: 100 hours (2017)   Target: Yes (2017)   LNG Import project IBRD Enclave PPP       Urban Development for Competiveness and    Proposal for leveraging infrastructure  financing  Inclusive Growth   Additional power generation capacity  facilitated by the WBG (US$M)    Electricity Access Scale Up Program TA (P155065)  (MWh)  Baseline: No (2015)   Regional Trade Facilitation and Competitiveness  Baseline: 1750 MWh (2015)  Target: Yes (2017)  DPO (P129282)   Target: 3000 MWh (2019)     Greater Abidjan / Ports Development    Rural roads rehabilitated    Transport Technical Assistance Operation    Baseline: 0 (2015)   Infrastructure Competitiveness and PPPs    Target: 3,200 km (2019)  IFC:     IFC Biokala Electric Power   A new strategy for maintaining rural roads has   IFC Finagestion Electric Power  been adopted    Baseline: No (2015)  On‐going   Target: Yes (2017)   Foxtrot Gas Field Expansion PRG (P144030)     Agriculture Sector Support Project (P119308)   Port dwell time   Emergency Infrastructure Renewal (P124715)   Baseline: 14 days (2015)   Post‐Conflict Assistance (P082817)   Target: 12 days (2019)   Abidjan‐Lagos Trade and Transport Facilitation    Program ‐ APL2 (P116323)     Côte d'Ivoire Urbanization Review ESW (P147762)    MIGA:     MIGA foxtrot gas platform     MIGA Henri Konan Bédié Bridge        IFC:     IFC Business Regulation Program     IFC Cie Ivoirienne de production d’électricité  (CIPREL) IV power plant   IFC/MIGA Azito Phase 3 power plant   GTST SIR (trade facility for a refinery)   IFC Rialto Energy    IFC IAS Infra helicopter transport services)   IFC ECOWAS trade logistics program   40 Objective 3:  Improve business regulatory framework and access to finance Intervention Logic: Improvements in business environment and access to finance are combined in one objective as both are complimentary and synergetic  prerequisites for sustainable private sector‐led growth in Côte d’Ivoire, especially for SMEs. While building on the existing work of IFC to provide firms with  access  to  finance,  the  WBG  will  enhance  its  support  in  response  to  the  identified  SCD  priority  to  reduce  the  financial  access  gap.  The  Government  has  articulated  a  private  sector‐led  growth  strategy  fostering  the  development  of  industry  and  SMEs  and  improving  access  to  finance,  including  reforms  to  improve  the  business  environment,  investment  climate  reform,  and  reforms  in  the  governance  of  the  financial  sector  that  will  strengthen  the  capacity  of  financial institutions to promote investment in agriculture, agribusiness and manufacturing. The program will support growth opportunities, especially for  SMEs  and  micro‐enterprises,  by  addressing  improvements  to  adequate  funding  and  to  financial  services  in  general,  including  banks  and  microcredit  networks. Coupled with an improved business environment, a stronger financial sector would help spur entrepreneurship, MSME development, investment  and job creation – thereby reducing poverty and promoting shared prosperity. The CPF would support regulatory reforms that facilitate business and private  sector  growth,  and  access  to  finance  for  households  and  for  housing,  and  MSME  businesses  through  an  intervention  on  Governance  and  financial  sector  development.  Coordination  will  be  ensured  through  a  set  of  donor  committees  on  Industry/SME  development  and  Private  sector  development/Business  climate that are led by the WBG and include USAID, UNIDO, Canada, EU, AfDB, JICA, and AFD.   CPF  Objective Indicators   Supplementary Progress Indicators WBG Program Overall distance to frontier (DTF) score (0– Number of Investment climate reforms  New  100)  implemented       New DPO series (2 years)  Baseline: 52.26 (2015)  Baseline: 0 (2015)   Urban Development for Competiveness and  Target: 60 (2019)  Target: 15 (2019)  Inclusive Growth        Possible Infrastructure Competitiveness & PPPs TA     The state owned banks restructuring leads to   Governance and Financial Sector project     the establishment of the new ‘’Pôle public   Regional Trade Facilitation and Competitiveness  Number of MSME outstanding loans  bancaire’’  DPO (P129282)   Baseline: 0.8 million (2015)  Baseline: No (2015)   Finance Sector Dialogue  TA  Target: 1.44 million (2019)  Target: Yes (2019)   Support to Business Climate and Investment      Promotion    The restructuring of main microfinance   ICT Dialogue     network UNACOOPEC is completed:       Baseline: No (2015)  On‐going  Target: Yes (2019)   Abidjan‐Lagos Trade and Transport Facilitation    Program ‐ APL2 (P116323)     Agriculture Sector Support Project (P119308)    Youth Employment & Skills Development Project  (P151844)    Greater Abidjan/ Ports Development     IFC :  41  Investment Climate ‐ Business Regulation   Investment Climate Agribusiness    IFC MicroCred CI Finance & Insurance   Regional credit bureau Program   Regional Leasing program   Mobile Banking program   Advans Côte d’Ivoire (support to Micro Finances  Institutions (MFI)    Services Advans CI (support to Global SME facility)   Société Ivoirienne de Banques (SIB)  risk‐sharing  facility (RSF)    Banque pour l’Industrialisation et le Commerce de  Côte d’Ivoire  (BICICI) Risk sharing facility   Ivory Coast Mobile Financial Services (MFS) Market  Development    Bridge Bank Group Côte D’Ivoire  Objective 4:  Formalize and enhance access to land for business and agriculture Intervention Logic: Formalizing and enhancing access to land for people and business is a priority and key to stability, reduction in fragility, and development. The Government considers land security a prerequisite for the modernization of the agriculture sector. Clear land rights and informed land transactions are  an incentive for both smallholders and private investors and a key prerequisite for shared growth. Access to industrial land with adequate infrastructure is  in  high  demand  from  new  investors.  Improving  the  governance  of  urban  land  is  especially  important  to  the  Ivorian  urban  population,  which  continues  to  grow  rapidly.  Land  rights  formalization  is  crucial  for  the  gradual  implementation  of  a  documented  land  market  that  provides  confidence  to  stakeholders  and  facilitate  solid  business  transactions.  A  transparent  land  market  will  be  conducive  to  investment  and  increased  productivity.  Responding  to  the  SCD  emphasis  on  the  importance  of  land  reform,  the  CPF  will  support  improvement  to  the  land  management  system  through  a  Land  Reform  Implementation  Project, as well as crosscutting engagement in other operations, focusing on sustainability of agricultural value chains in rural areas, and the completion of  the  land policy  design  and  land  rights  registration.  Support  will  be  coordinated  through the  thematic working  group  on  rural  land that  is  co‐led by  the EU  and the WB, and includes AfDB, AFD and FAO.  CPF Objective  Indicators   Supplementary Progress Indicators  WBG  Program Number of land transactions and leases  Completion of the land policy design  New  Baseline: 0 (2015)  Baseline: No (2015)  • New land tenure operation   Target: 100,000 (2019)  Target: Yes (2017)  • Urban Development for Competiveness and Inclusive      Growth   Private investment catalyzed in industrial and  Land parcels with use or ownership rights   Greater Abidjan / Ports Development  Special Economic Zones (as measured by  recorded as a result of the project (gender   New DPO series   AGEDI and CEPICI))  disaggregated)   Possible new TA on Urban Land Management  Baseline: 0 (2015)  Baseline: 950 (2015)   West Africa Coastal Areas Management   Target: US$50 million (2019)  Target: 300,000 (2019)    42   On‐going   A decree has been adopted simplifying the  • Support to land tenure policy TA (P148791)  procedures for occupying industrial land   Côte d'Ivoire Urbanization Review ESW (P147762)  Baseline: No (2015)   REDD + Readiness Preparation in RCI (P149801)  Target: Yes (2016)        Additional industrial land in Abidjan and two  secondary cities (hectares) (as measured by  AGEDI)  Baseline: 0  Target: 300 hectares (2019)    Hectares of sustainably managed land (Tai  Park and buffer zones)  Baseline: 0 (2015)  Target: 345,000 ha (2019)  Focus Area 2: Building Human Capital for Economic Development and Social Cohesion  Severe under‐investment in basic social services over the past two decades has had a serious impact on the quality of Côte d’Ivoire’s human capital, and if  not addressed could pose a major constraint to the country’s current growth pattern and social stability. Developing healthy, skilled, competitive, income  earning  and  secure  human  capital  needs  to  be  at  the  center  of  Côte  d’Ivoire  development  strategy  if  the  country  wants  to  reduce  extreme  poverty  and  sustain an inclusive growth on the long run and become an emerging economy capable of competing at the global level. In the short term, CPF interventions  would help increase the consumption of the poorest 40 percent of the population, and protect their assets from depletion through targeted safety nets and  employment opportunities. In the medium to long term, the CPF interventions would build household capabilities and improve their productivity through  a higher level of human capital development and increased resilience.     43 Objective 5:  Improve education service delivery and youth employability Intervention Logic: Improvements in basic education and market‐responsive skills are combined in one objective as both are critical complimentary inputs  aimed  at  ensuring  better  access  of  youth  to  more  productive  employment  opportunities.  Education  and  market‐responsive  skills  are  also  critical  for  the  economic  transformation  sought  by  the  Government, and  for  ensuring that  benefits  from  growth  reach  the poorest  and  are  equitably  shared. As  pointed  out in the SCD, Côte d’Ivoire’s education system, including technical and vocational training, has suffered from weak governance, lack of a clearly defined  mission, and poor linkages with private sector stakeholders and labor market needs. Improving youth employability will require close collaboration between  institutions in charge of skill development, labor market policies, financial institutions, and the private sector to address the multiple constraints to higher  productivity in key economic sectors. The Government’s employment policy aims to encourage job creation in the private sector by supporting specialized  training,  calls  for  universal  primary  education,  youth  training  consistent  with  labor  market  needs;  and  expansion  of  vocational  training  to  improve  labor  productivity. Building on the successful Youth Employment Project, the WBG will expand its support to address more systemic issues such as the mismatch  between the training provided by the education system and the country's needs, and the significant disparities across region, social‐economic status, income  and gender in the education sector. The CPF will support improvement in the relevance, quality and performance of the education and vocational training  systems to ensure better insertion and integration of youth into the labor market. Promotion of productive employment and increased earnings capabilities  should focus on increasing productivity in self‐employment and micro‐enterprises where most of the poor work. In its support, the World Bank Group will  rely on the complementary approach to regional support and synergies developed with EU, AFD and UNDP on support for SMEs and the promotion of youth  employment.   CPF  Objective Indicators   Supplementary Progress Indicators  WBG  Program Percentage of participating graduates who are  Ratio of girls to boys in primary and  New  employed or self‐employed 6 months after  secondary education (%):   Access and quality Basic Education support project  completion (gender disaggregated)  -  Primary Education  (TP011697) FY18   Baseline: 0 (2015)             Baseline: 46.7% (2014)   Higher Education and University Reforms  Target: 70%  (2019)             Target: 49% (2019)  (TP012138)     - Secondary education   Towards Quality Education for All  Percentage  of  students  in  science,  engineering              Baseline: 41% (2014)   Higher Education Relevance and Governance  and  mathematics  courses  (upper‐secondary  and              Target: 47% (2019)  (TP013334)   tertiary) (gender disaggregated):      Education Sector Public Expenditure Review  Number of teachers enrolled and qualified in  (P129530)  -  Upper Secondary (mathematics)  Teacher training center for Primary school               Baseline: 19.05% (2014) (girls 5.4%)  Baseline: 2,500 (2013)  On‐going            Target: 40% (2019) (girls 10%)  Target: 7,500 (2019) (gender disaggregated)   Emergency Basic Education support Project    (P119328)  - Tertiary (Science & Engineering):     Youth Employment & Skills Development Project            Baseline: 7.5% (2013)  (P122546, P151844)           Target: 15% (2019)   Sahel Women’s Empowerment and Demographic    Dividend Project (P150080)     Africa Centers of Excellence (P126974)       44  Côte d'Ivoire Jobs Agenda TA (P151613)     Youth Employment and Productivity Impact  Evaluation (P150249)      Objective 6:  Expand affordable social protection system Intervention  Logic:  Because  of  lack  of  social  protection  measures,  as  shown  in  the  SCD,  the  welfare  among  poorer  households  has  been  more  negatively  affected by recent shocks than that of the general population. The bottom decile has experienced the greatest losses to consumption. Therefore, building  a social protection system can help lay the foundations for channeling much‐needed resources to the poorest households. Social Protection measures have  proven effective in mitigating the impacts of shocks, protecting households’ assets, supporting graduation out of poverty and preventing inter‐generational  transmission  of  poverty.  The  Government  emphasizes  social  protection  as  non‐contributory  safety  nets  are  still  in  their  infancy,  and  contributory  social  security covers a small proportion of the population in formal jobs. The CPF will support the Government in establishing the foundation of a national social  protection system and to provide cash transfers to the poorest households in the most vulnerable regions with a view to increasing household consumption  and addressing demand‐side financial barriers to social services. Working with UNICEF, WFP and selected NGOs, the World Bank Group support will play a  key role in addressing the gap in longer‐term and institutional systems for social protection and safety nets.   CPF Objective Indicators   Supplementary Progress Indicators  WBG  Program Number of households receiving cash transfers  MIS systems are in place and functioning New Baseline: 0 (2014)  Baseline: No (2014)   Productive Social Safety Net (P143332)   Target: 35,000 households (2019)    Target: Yes (2018)   New DPO series      AAA/TA  Number of individuals receiving accompanying  Number of households registered with a  • Assessing the impact of crises on HD TA (P129530)  measures on productivity related to human  unique identification number in national    capital and livelihood  registry    Baseline: 0 (2014)  Baseline: 0 (2014)    Target: 210,000 (2019) (gender disaggregated)  Target: 105,000 (2019) (gender  disaggregated)  Objective 7: Improve the delivery of quality  health and water services Intervention  Logic:  Access  to  clean  water  and  health  services  are  combined  in  one  objective  as  both  are  key  complementary  and  synergetic  health  and  nutrition determinants.  Given its income level, health indicators in Côte d’Ivoire are among the weakest in the region. The key binding constraints to health  service utilization are access, affordability, availability, and acceptability. The WBG program proposes to support Government’s implementation of its health  policy, which aims to improve the use and quality of health services, improve maternal, and child health services; and reinforce prevention, health promotion  and  medical  outreach.  To  complement  the  efforts  on  improving  health  services  provision,  WBG’s  interventions  aimed  at  expansion  of  water  supply  and  sanitation  services  will  improve  living  conditions,  reduce  public  expenses  for  water‐borne  diseases  and  increase  income‐generation  activities,  particularly  for women. Addressing the urgent needs in a financially sustainable way will also provide the foundation for implementing sector reforms that will support  further  expansion  of  water  and  sanitation  sector.  The  CPF  proposes  to  focus  its  support  on  increasing  the  access  to  essential  health,  nutrition  and  water  services, and improving the level of financial health protection for the poorest groups. Enhanced access to quality and affordable health care and nutrition  services across all segments of the population would have strong impact on inclusive growth and human capital development. This responds to the analysis  in  the  SCD,  which  pointed  out  that  access  to  and  quality  of  health  care  will  require  considerable  changes  in  resource  allocation  in  the  sector,  as  well  as  45 institutional  reforms  and  strengthening  governance  and  accountability  of  the  health  system,  and  that  better  access  to  drinking  water  is  of  particular  importance  in the  quality  of health  care.  Coordination  with the  number  of  donors  active  in  the health,  nutrition  and population  areas  in  Côte d’Ivoire  will  be essential, including AFD, EU UNFPA; Global Fund for malaria; USAID; and UNICEF.   CPF Objective Indicators   Supplementary Progress Indicators  WBG Program Number of people with access to a basic  Institutional reforms have been initiated to  New package of health, nutrition or reproductive  introduce performance‐based financing and   Health Systems Strengthening & Ebola  health services (gender disaggregated)  assistance in UHC   Preparedness (P147740)  Baseline:  0 (2014)  Baseline: No   New DPO series; Institutional Reforms for  Target:  7.5 million (cumulative) (2019)   Target: Yes (2017)  Improved Social Services Delivery –FY17      (TP012874)   Government spending on social sectors*  Strategy for Universal Health Coverage,   Infrastructure Renewal Project (P144017)  (including health) targeted to the poorest   Health Financing and Nutrition developed    Universal Health Coverage TA (P153105)  Baseline: 8.6% GDP (2015)  Baseline: No (2014)   Costing of Nutrition programs  TA (TP011672)  Target: 12% GDP (2019)  Target: Yes (2019)   PER for Health sector (P129530)  *See definition note in Annex 2.     Possible TA on private sector participation  Access to improved water source (% of national  Additional urban poor with access to  (PPP/GIF funding) for bulk water supply to Abidjan  urban population)   improved water source (through social  (Bandama project)  Baseline: 70% (2015)  connection program) (gender disaggregated)    Target: 75% (2019)  Baseline: 0 (2015)  Ongoing   Target: 200,000 (2019)   Sahel  Women’s  Empowerment  and  Demographic  Dividend Project (P150080)   Côte d'Ivoire Urbanization Review ESW (P147762)  Focus Area 3: Strengthening public financial  management and accountability Realization  of  the  Government’s  planned  infrastructure  investments,  social  service  improvements  in  education,  health  and  social  protection  will  pose  challenges  to  macroeconomic  stability,  and  therefore  require  optimal  management  of  existing  resources  and  mobilization  of  additional  resources.  Strengthening  public  financial  management  and  accountability  at  central  and  local  levels  is  a  Government  priority,  and  a  necessary  condition  for  growth  and expanded private sector investment. Institution building, regulatory reform and capacity building are needed to help create the conditions for effective  public  finance  management  by  strengthening  fiscal  discipline,  efficient  and  strategic  allocation  of  resources  and  effective  delivery  of  public  goods  and  services.  This  Focus  area  thus  has  three  objectives:  (i)  improving  the  strategic  allocation  of  resources  and  quality  of  expenditure;  (ii)  modernizing  tax  and  customs  administration  and  strengthening  debt  management  with  a  view  to  increasing  domestic  revenues  and  maintaining  debt  sustainability;  and  (iii)  developing accountability mechanisms.  Objective 8: Improve allocative efficiency and quality of expenditures   Intervention  Logic:  In  spite  of  a  number  of  measures  to  improve  the  quality  of  spending,  monitoring  the  status  of  arrears,  ensuring  that  comprehensive  information is included in budget documents, and reinforcing payroll controls need improvement. Implementation of the new Organic Budget Law and the  Transparency Code  for  Public  Financial  Management  will help  to  align  Côte  d’Ivoire’s  legislative  framework  with  regional  PFM  standards.  Implementation  of municipality‐level and local government integrated information management systems would provide a more transparent foundation for regional‐based  development  and  public  service  delivery.  The  World  Bank  has  provided  long  support  to  Public  Financial  Management,  but  the  SCD  noted  that  despite  46 progress,  several  issues  continue  to  affect  the  overall  effectiveness  and  efficiency  of  public  expenditure.  The  CPF will  support  government’s  efforts  to  improve  the  quality  of  expenditure  through  implementation  of  the  PFM  action  plan;  and  improvement  of  the  central  government’s  performance‐based  budgeting with the preparation and adoption of Multi‐year programming documents of key sectors, in concert with other donors (EU, IMF, UNDP, WAEMU  and JICA).   CPF Objective Indicators   Supplementary Progress Indicators  WBG Program Improvement of policy‐based budgeting in the  Steering committee for implementation of  New PFM system, as measured by PEFA indicator PI‐ the strategic PMF framework established and   New PRSC series: DPO    12: Multi‐year perspective in fiscal planning,  operational (gender disaggregated)   Possible Governance and Financial sector  expenditure policy and budgeting  Baseline: No (2015)  development (earlier: Public Investments and  Baseline:  D+ (2013)  Target: Yes (2017)  Service Delivery (P151507)   Target: B (2019)     Poverty Assessment TA (P152737)        Governance and Anti‐Corruption Study (P153062)     Multi‐year programming and budgeting   Poverty diagnosis and measurement   PEFA indicator PI‐4: Stock and monitoring of  documents developed by sectoral ministries  On‐going  expenditure payment arrears   in budget execution system (SIGFIP)   PRSC 3  Baseline:  D+ (2013)  Baseline: No (2015)   Governance and Institutional Development (DGDI,  Target: B (2019)  Target: Yes (2018)  or GIDG) (P107355)       PEMFAR, PEMFAR 2 (P124237,  P151498)        Support to BOOST (P151642)     Country Statistical Brief (P145994)     Parliament Capacity Building TA (P124076)   Dev of eProc Strategy & eMonitoring (P154214)  Objective 9: Increase domestic revenues and maintain debt sustainability Intervention Logic: While fiscal revenue improved since 2012, Côte d’Ivoire’s tax‐to‐GDP ratio has declined since the end of the crisis. The tax base consists  mainly  of  larger,  formal  sector  enterprises,  and  within  tax  and  customs  administration  the  Government  aims  to  simplify  tax  and  customs  clearance  procedures, the VAT reimbursement mechanism, and implement recently adopted reforms such as the interconnection agreement with Mali and Burkina  Faso. While debt relief has greatly improved the sustainability of the public debt profile, the resumption of regular interest payments and the likelihood of  new  borrowing,  especially  in  the  context  of  new  initiatives  in  the  area  of  infrastructure  and  social  spending,  will  increase  debt  service  requirements  over  the  medium  term.  The CPF  will  support  the Government as  it  seeks  to  strengthen  revenue collection  through  programmatic DPO  series,  capacity building  and  technical  assistance,  and  budget  support,  investment  lending  and  technical  assistance  for  debt  management.  The  World  Bank  Group  will  provide  support  to  tax  and  customs  administration  training  and  information  systems  complementary  to  interventions  by  the  IMF,  the  EU  and  the  Canadian  Development Assistance. This is a relatively new engagement area, based on the SCD analysis of institutions and regulations related to business operations  and  barriers  pertaining  to  licensing,  inspections,  and  taxes  needs  to  facilitate  business  operations,  and  the  Côte  d’Ivoire’s  rank  near  the  bottom  on  the  “Paying  Taxes”  indicator  of  the  Doing  Business  index.  Likewise,  the  SCD  analysis  of  the  likelihood  of  new  borrowing—in  particular  to  finance  large‐scale  infrastructure investments and improve service delivery—and increase in debt service requirements over the medium term, points to a focused engagement  of the World Bank  Group in sustainable debt management.    47 CPF Objective Indicators   Supplementary Progress Indicators  WBG Program Effectiveness in the collection of tax payments  Proposal for simplification of the VAT  New (PEFA indicator PI‐15):   reimbursement mechanism adopted   New DPO series  Baseline:  D+ (2013)  Baseline: No (2015)   Regional Trade Facilitation and Competitiveness  Target: B (2019)  Target: Yes (2017)  DPO (P129282)        Possible new TA on debt management based on    Improved customs administration as  the DEMPA assessment  Public external debt‐service in percentage of  measured by “Trading across borders”   Dev of eProcurement Strategy & eMonitoring  exports of goods and services  ranking from Doing Business     Support PFM reforms  TA  Baseline: 5.3% (2015)  Baseline: 50.54 (2015)   Parliamentary Capacity Building TA   Target: 7% (2020)  Target: 70 (2019)      Ongoing  Improved debt management based on the   Governance and Institutional Development (DGDI)  assessment in the DEMPA; Debt  (P107355)  Management Performance Indicator (DPI‐3)  Debt Management Strategy   Baseline:  C (2015)  Target: B (2018)  Objective 10: Increase accountability and transparency in public expenditures Intervention  Logic:    Côte  d’Ivoire  is  faced  with  significant  accountability  challenges.  Governance  indicators  indicate  poor  performance  in  most  areas,  including citizen engagement and social accountability, the judiciary system, and transparency in public sector management. Improvement of the quality of  expenditure requires enhanced systems, processes, and accountability for investment selection, financing, monitoring, and evaluation. The SCD points out  that  Côte  d’Ivoire  has  lagged  significantly  in  the  areas  of  rule  of  law,  voice  and  accountability,  and  regulatory  quality,  and  that  good  governance  encompasses,  inter  alia,  concrete  measures  against  corruption,  an  improved  public  administration,  and  enhanced  access  to  justice  and  more  transparent  and  predictable  relations  between  government  and  the  private  sector.  Better  expenditure  management  should  lead  to  reduced  cost  overruns,  less  debt,  and  improved  quality  of  public  goods  and  services,  coupled  with  a  positive  impact  on  accountability  and  anti‐corruption.  To  address  these  issues  the  CPF  proposes  to  provide  support  in  public  financial  management,  particularly  regarding  the  planning,  execution,  and  monitoring  of  expenditures.  Regarding  citizen  engagement  and  social  accountability,  the  WBG  will  support  the  agenda  through  participatory  budgeting  programs  and  use  of  information  communication technology (ICT) to provide for feed‐back loops from ultimate beneficiaries to service‐providing agencies and policy makers. Many donors,  particularly the EU, USAID, and AFD are involved in accountability and justice reform programs.   CPF Objective Indicators   Supplementary Progress Indicators  WBG Program Corruption Perception Index (Transparency  The High Authority for Good Governance has  New International  adopted and implemented the first phase of   New DPO series   Baseline: (TI) ranking: 115 (2014)  the assets declaration provisions in the   Governance and Financial sector development  Target: TI ranking: 70 (2019)  anticorruption law   (earlier: Public Investments and Service Delivery    Baseline:  No (2015)  (P151507)   Côte  d’Ivoire’s eligibility for open government  Target: Yes (2017)    index (OGP)    48 Baseline: No (0.5%) (2015)  Audit reports made publicly available Ongoing Target: Yes (0.75%) (2017)  Baseline:  No   Governance and Institutional Development (DGDI)    Target: Yes (2017)  (P107355)    Parliament Capacity Building TA (P124076)  Citizens Budget produced, as part of process  for eligibility for Open Government  Partnership  Baseline:  No (2015)  Target: Yes (2017) 49 Annex 2: Monitoring and Evaluation of the CPF Results Framework INDICATORS OPERATIONAL DEFINITIONS AND SOURCES OF DATA Harvested crop yield per Harvested production per unit of harvested area for crop products. In most of the cases yield data are not recorded but obtained hectare by dividing the production data by the data on area harvested. Source: FAOSTAT (http://faostat.fao.org/site/375/default.aspx). Crop production data refer to the actual harvested production from the field, excluding harvesting and threshing losses and that part of crop not harvested for any reason. Production therefore includes the quantities of the commodity sold in the market (marketed production) and the quantities consumed or used by the producers (auto-consumption). When the production data Product processed: volume available refers to a production period falling into two successive calendar years and it is not possible to allocate the relative of product (t) production to each of them, it is usual to refer production data to that year into which the bulk of the production falls. Crop production data are recorded in tons (t). In many countries, crop production data are obtained as a function of the estimated yield and the total area. If such a compilation method of production statistics is enforced by the country, it must be ensured that the total area does not refer to sown or planted area, which would give then the ‘biological production’, but to the actually harvested area during the year. Definition: FAOSTAT (http://faostat.fao.org/site/375/default.aspx) Also: Quantity of production, processing or trade of a given commodity. Definition: IFC DOTS. Measured by the number of days (or hours) from the time a shipment leaves one’s facility to the time it arrives at the Average transit time customer’s location. Often measured against a standard transit time quoted by the carrier for each traffic lane. One will have to between Abidjan and rely on freight carriers to report their own performance. This is often an important component of lead-time. Transit times can Ouagadougou vary substantially, based on freight mode and carrier systems. The indicator is a proxy for quality, reliable, local, regional and trans-border transport systems. Definition: http://cerasis.com/2014/07/29/transportation-metrics/ Additional power The electric output a generator or power plants and combined heat and power plants can produce, above baseline, measured in generation capacity (MWh) million kilowatt hours. The distance to frontier score aids in assessing the absolute level of regulatory performance and how it improves over time. This measure shows the distance of each economy to the “frontier,” which represents the best performance observed on each Overall distance to frontier of the indicators across all economies. This allows users both to see the gap between a particular economy’s performance and (DTF) score (0–100) the best performance at any point in time and to assess the absolute change in the economy’s regulatory environment over time as measured by Doing Business. An economy’s distance to frontier is reflected on a scale from 0 to 100, where 0 represents the lowest performance and 100 represents the frontier. Source: www.doingbusiness.org Measures supply of credit at end of period: number of outstanding loans represent a stock figure at a given point in time, i.e. Number of MSME Number of outstanding loans in the portfolio of a IFC-supported financial intermediary at the end of its fiscal year. This outstanding loans includes both direct provision of access through financial institutions WBG invests in or provide advice to, as well as indirect provision of access through WBG investment in Funds and holding companies that own FIs or MFIs. Definition: IFC DOTS for AS. Number of land Target population with formal land lease and/or a written agreement on land use recorded as a result of the project. (Gender transactions and leases disaggregated) 50 INDICATORS OPERATIONAL DEFINITIONS AND SOURCES OF DATA The baseline value for this indicator is expected to be zero as there still is no formal land agreement between native landholders and migrants officially recognized by the GoCI. When reporting on this indicator, the progress is equal to the cumulative number of people with a formal land transaction document recorded since the beginning of the operation. Target population refers to the population of a particular geographic area targeted by the project, or any other population group targeted by the program. Population is expressed in number of individuals or households. Private investment catalyzed in industrial and This indicator represents the amount of private sector investment committed within new or rehabilitated industrial land over Special Economic Zones the CPF period, including the private investment share for land development costs. (as measured by AGEDI and CEPICI)) Percentage of participating Numerator: total number of graduates supported by WBG projects (within one year of completion). graduates who are Denominator: Total number of graduates who completed apprenticeship dual training. employed or self-employed Source of data: Project implementation reports. 6 months after completion Percentage of students in This indicator represents enrollment of students in mathematics (and science/engineering) as a share in all enrolled in upper- science, engineering and secondary and tertiary students (gender disaggregated): mathematics courses (upper-secondary and tertiary) Number of households Total number of household beneficiaries of cash transfers, assuming average household size of 6. The cash transfer program receiving cash transfers will target the poorest households in predominately rural regions in the central, northern and western regions of Côte d’Ivoire. Source of data: Project implementation reports. (Gender disaggregated; female-led Households). Number of individuals Number of beneficiary household members that participate in the minimum number of Sessions of accompanying measures as receiving accompanying specified in PIM. Source of data: Project implementation reports. (Gender disaggregated) measures on productivity related to human capital and livelihood Number of people with This indicator measures the cumulative number of people with access to a basic package of health, nutrition and/or access to a basic package reproductive health services under the project. Where multi-function services are provided, health, nutrition and/or of health, nutrition or reproductive health services, access should not be counted as separate number of people with access to a basic package of reproductive health services, but one aggregate figure should be estimated to avoid double counting. Source of data: Project implementation services reports. (Gender disaggregated) Government spending on Public expenses devoted to the education and health sectors and social safety nets, including recurrent and capital expenditures social sectors (including and salaries, expressed as a percentage of the Gross Domestic Product. Targets should normally be established within fiscal health) targeted to the constraints. The pro-poor spending is monitored by IMF, and derived from the fiscal tables regularly produced by the poorest 51 INDICATORS OPERATIONAL DEFINITIONS AND SOURCES OF DATA government and validated by the IMF during review missions. Based on the latest figures, baseline ratio is 8.6% (Pro-poor spending at CFAF 1,494.8 billion compared to a GDP of 17,333 billion). Note: This indicator is relevant to several objectives, namely Objective 6 and 7, and indirectly related to work on better public resource management and governance (objectives 8 and 10). Number of additional people that have access to reliable water supply or improved sanitation services within targeted lower Access to improved water income areas. Disaggregated by gender. Reliable water is defined as piped potable water with adequate pressure and source (% of national urban continuity of at least 16 hours per day, 7 days per week. The following are considered as "improved" sanitation: (i) connection population) to a public sewer; (ii) connection to a septic system; (iii) pour-flush latrine; (iv) simple pit latrine; and (v) ventilated improved pit latrine. Definition: WB. Dimensions to be assessed (Scoring method M2): (i) Preparation of multi -year fiscal forecasts and functional allocations; (ii) Scope and frequency of debt sustainability analysis (iii) Existence of sector strategies with multi-year costing of recurrent and investment expenditure. Improvement of policy- Scoring methodology for PI-12: based budgeting in the Score A: Forecasts of fiscal aggregates (on the basis of main categories of economic and functional/sector classification) are PFM system, as measured prepared for at least three years on a rolling annual basis. Links between multi-year estimates and subsequent setting of annual by PEFA indicator PI-12: budget ceilings are clear and differences explained Multi-year perspective in fiscal planning, expenditure Score B: Forecasts of fiscal aggregates (on the basis of main categories of economic and functional/sector classification) are policy and budgeting prepared for at least two years on a rolling annual basis. Links between multi-year estimates and subsequent setting of annual budget ceilings are clear and differences are explained. Score C: Forecasts of fiscal aggregates (on the basis of the main categories of economic classification) are prepared for at least two years on a rolling annual basis. Score D: No forward estimates of fiscal aggregates are undertaken. Expenditure payment arrears are expenditure obligations that have been incurred by government, for which payment to the employee, supplier, contractor or loan creditor is overdue, and constitutes a form of non-transparent financing. A high level of arrears can indicate a number of different problems such as inadequate commitment controls, cash rationing, inadequate budgeting for contracts, under-budgeting of specific items and lack of information. Expenditure arrears assume that the PEFA indicator PI-4: Stock outstanding payment is due under a specific legal obligation or contractual commitment, which the government has entered, and monitoring of and may include due but unpaid claims for salaries, pensions, supplies, services, rents, interest on domestic and external debt. expenditure payment arrears Dimensions to be assessed: (i) Stock of expenditure payment arrears (as a percentage of actual total expenditure for the corresponding fiscal year) and any recent change in the stock. (ii) Availability of data for monitoring the stock of expenditure payment arrears. 52 INDICATORS OPERATIONAL DEFINITIONS AND SOURCES OF DATA Scoring methodology: Score A: (i) The stock of arrears is low (i.e. is below 2% of total expenditure); (ii) Reliable and complete data on the stock of arrears is generated through routine procedures at least at the end of each fiscal year (and includes an age profile). Score B: (i) The stock of arrears constitutes 2-10% of total expenditure; and there is evidence that it has been reduced significantly (i.e. more than 25%) in the last two years; (ii) Data on the stock of arrears is generated annually, but may not be complete for a few identified expenditure categories or specified budget institutions. Score C: (i) The stock of arrears constitutes 2-10% of total expenditure; and there is no evidence that it has been reduced significantly in the last two years; (ii) Data on the stock of arrears has been generated by at least one comprehensive ad hoc exercise within the last two years. Score D: (i) The stock of arrears exceeds 10% of total expenditure; (ii) There is no reliable data on the stock of arrears from the last two years. Dimensions to be assessed (Scoring Method M1): (i) Collection ratio for gross tax arrears, being the percentage of tax arrears at the beginning of a fiscal year, which was collected during that fiscal year (average of the last two fiscal years). (ii) Effectiveness of transfer of tax collections to the Treasury by the revenue administration. (iii) Frequency of complete accounts reconciliation between tax assessments, collections, arrears records and receipts by the Treasury. Scoring methodology: Revenue collection as Score A: (i) The average debt collection ratio in the two most recent fiscal years was 90% or above OR the total amount of tax measured by PEFA arrears is insignificant (i.e. less than 2% of total annual collections); (ii) All tax revenue is paid directly into accounts indicator PI-15: controlled by the Treasury or transfers to the Treasury are made daily; (iii) Complete reconciliation of tax assessments, Effectiveness in the collections, arrears and transfers to Treasury takes place at least monthly within one month of end of month. collection of tax payments Score B: (i) The average debt collection ratio in the two most recent fiscal years was 75-90% and the total amount of tax arrears is significant; (ii) Revenue collections are transferred to the Treasury at least weekly; (iii) Complete reconciliation of tax assessments, collections, arrears and transfers to Treasury takes place at least quarterly within six weeks of end of quarter. Score C: (i) The average debt collection ratio in the two most recent fiscal years was 60-75% and the total amount of tax arrears is significant; (ii) Revenue collections are transferred to the Treasury at least monthly; (iii) Complete reconciliation of tax assessments, collections, arrears and transfers to Treasury takes place at least annually within 3 months of end of the year. 53 INDICATORS OPERATIONAL DEFINITIONS AND SOURCES OF DATA Score D: (i) The debt collection ratio in the most recent year was below 60% and the total amount of tax arrears is significant (i.e. more than 2% of total annual collections); (ii) Revenue collections are transferred to the Treasury less regularly than monthly; (iii) Complete reconciliation of tax assessments, collections, arrears and transfers to Treasury does not take place annually or is done with more than 3 months’ delay. The tax payments indicator reflects the total number of taxes and contributions paid, the method of payment, the frequency of payment, the frequency of filing and the number of agencies involved for the standardized case study company during the second year of operation. It includes taxes withheld by the company, such as sales tax, value added tax and employee-borne labor taxes. These taxes are traditionally collected by the company from the consumer or employee on behalf of the tax agencies. Although they do not affect the income statements of the company, they add to the administrative burden of Paying taxes (Doing complying with the tax system and so are included in the tax payments measure. Business index (DTF score) The number of payments takes into account electronic filing. Where full electronic filing and payment is allowed and it is used by the majority of medium-size businesses, the tax is counted as paid once a year even if filings and payments are more frequent. For payments made through third parties, such as tax on interest paid by a financial institution or fuel tax paid by a fuel distributor, only one payment is included even if payments are more frequent. Where 2 or more taxes or contributions are filed for and paid jointly using the same form, each of these joint payments is counted once. The debt service as a percentage of exports of goods and services is the sum of a country’s debt service on long-term public and publicly guaranteed debt and International Monetary Fund (IMF) repurchases and charges, expressed as a percentage of that country’s exports of goods and services and net income from abroad. Concepts - Debt service is the sum of principle repayments and interest payments actually paid on debt to non-residents. - Long-term refers to debt that has an original or extended maturity of more than one year. Public external debt-service - IMF repurchases are total repayments of outstanding drawings from the general resources account during the year specified, in percentage of exports of excluding repayments due in the reserve tranche. goods and services - IMF charges cover interest payments with respect to all uses of IMF resources, excluding those resulting from drawings in the reserve tranche. - Exports of goods, services and net income are the sum of goods (merchandise) exports, exports of (nonfactor) services and income (factor) receipts from abroad excluding workers' remittances. Method of computation The indicator is calculated as the value of external debt service divided by the value of exports of goods and services and income and multiplied by 100. Corruption Perception The CPI scores and ranks countries/territories based on how corrupt a country’s public sector is perceived to be. It is a Index (Transparency composite index, a combination of surveys and assessments of corruption, collected by a variety of reputable institutions. The International) CPI is the most widely used indicator of corruption worldwide. 54 INDICATORS OPERATIONAL DEFINITIONS AND SOURCES OF DATA A country/territory’s score indicates the perceived level of public sector corruption on a scale of 0-100, where 0 means that a country is perceived as highly corrupt and a 100 means that a country is perceived as very clean. A country's rank indicates its position relative to the other countries/territories included in the index. Ranks can change merely if the number of countries included in the index changes The Open Government Partnership (OGP) is a multi-stakeholder initiative focused on improving government transparency, accountability and responsiveness to citizens. OGP brings together government and civil society champions of reform who recognize that governments are much more likely to be effective and credible if they open their doors to public input and oversight. Criteria: 1. Budget Transparency: two points awarded for publication of each of 2 essential documents (Executive’s Budget Côte d’Ivoire’s eligibility Proposal, Audit Report) for open budgets. for open government index 2. Access to information: 4 points awarded to countries with access to information laws in place; 3 points if a country has (OGP) a constitutional provision guaranteeing access to information; 1 point if a country has a draft access to information law under consideration. 3. Asset disclosure: 4 points awarded to countries with a law requiring disclosure, and has any requirement that the information should be accessible to the public; 2 points awarded to countries with a law requiring asset disclosures; 0 points for no law on asset disclosure. 4. Citizen engagement: 4 points for countries scoring above 7.5; 3 points for countries above 5; 2 points for countries above 2.5; 0 points for countries below 2.5. Source of data: OGP 55 Annex 3: CPS Completion Report FY10-14 May 30, 2014 Côte d’Ivoire Country Partnership Strategy 2010-2014 Completion Report 56 Table of Contents I. Introduction II. Political and Economic Developments during CPS Period and Achievement of Country Goals III. Progress in Achieving CPS Outcomes Summary of Outcome Status Pillar I: Strengthening governance and institutions CPS Outcome 1.1 CPS Outcome 1.2 CPS Outcome 1.3 CPS Outcome 1.4 Pillar II: Improving the Performance of the Agricultural Sector CPS Outcome 2.1 CPS Outcome 2.2 CPS Outcome 2.3 Pillar III: Strengthening the Private Sector CPS Outcome 3.1 CAS Outcome 3.2 Pillar IV Renewing infrastructure and basic services CPS Outcome 4.1 CAS Outcome 4.2 CPS Objective 4.3 Pillar V: Cross-Cutting Objectives CPS Outcome 5.1 CPS Outcome 5.2 IV. Measuring Bank Performance V. Key Lessons and Suggestions Tables 57 I. Introduction 1. This report is a self-evaluation by the Country Team of the Country Partnership Strategy for the Republic of Côte d’Ivoire for the period FY10-FY14. The joint IDA/ IFC/ MIGA Strategy for the period FY10-14 is spelled out in the report of April 2011(Report No. 53666-CI). The Progress Report of May 2013 (Report No. 77132-CI) reviews progress and changes some indicators to take into account political events since the CPS was prepared, and adds one year to the program. This report considers two dimensions of the CPS: the extent to which the program outlined was achieved and the World Bank Group’s performance in designing and managing CPS implementation. The primary purpose of the report was to extract lessons which can be applied to the design of the next country partnership strategy for Côte d’Ivoire. The report draws on the 2013 Progress Report and other documents prepared by the Country Team during the extended CPS period. This report was completed in May 2014. The figures relating to Outcomes were updated in July 2015. 2. At the time of the preparation of the CPS in 2010, Côte d’Ivoire was coming out of a decade of political and military turmoil which had resulted in the effective division of the country. The years of conflict, combined with poor governance, transformed the once-model nation into a fragile state, and poverty increased from 10 percent in 1985 to 48 percent in 2008. This was in spite of the country’s economic potential: it is the second largest economy in West Africa, has a good agricultural base and is a top world exporter of cocoa and cashews. It also has important natural resources such as gold and natural gas and a large manufacturing sector. 3. The CPS was prepared after the signing of the Ouagadougou Political Accord (OPA) and the establishment of a coalition transitional government in 2007. In the accord, the Government committed to hold free presidential elections; unify the armed forces and redeploy the public administration to restore basic services in the Center and North-west of the country, which had been severely affected by the conflict. The Government made progress in these efforts, including carrying out a national identification program as part of election preparations and redeploying public services. In addition, the Government adopted its first Poverty Reduction Strategy Paper (PRSP) for the period 2009-2015 in January 2009. The World Bank Group Country Partnership Strategy (CPS) for FY10-14 outlined a program to support the PRSP. II. Political and Economic Developments during CPS Period and Achievement of Country Goals. 4. Presidential elections were held in October and November 2010. Incumbent President Laurent Gbagbo stood against former Prime Minister Alassane Ouattara in a run-off election held in November 2010, which Alassane Ouattara won. The former president did not accept the election results and in December 2010 both Laurent Gbagbo and Alassane Ouattara took oaths of office. Former President Gbagbo’s stance led to violence and institutional paralysis. Between December 2010 and April 2011 law and order broke down in Abidjan, the commercial capital, and in other parts of the country, and there was intense fighting between forces loyal to the two candidates. Particularly in the North-west, political clashes and communal violence led to the killing and rape of civilians by both sides. The 2011 crisis resulted in massive displacement of populations, destruction of assets, suspension of services, and an estimated 3,000 deaths. On May 21 2011, Alassane Ouattara was officially inaugurated president with widespread support from the international community. The new government expressed its commitment to promote peace and stability. 5. Implementation of the PRSP approved in 2009 was undermined by the 2010-2011crisis. Even though the PRSP was still ongoing, the Ouattara government decided to prepare a National Development Plan (NDP) for the period 2012-2015 to outline its priorities; the NDP was approved in March 2012. The strategic objectives of the plan are broadly in line with the pillars of the previous PRSP. The NDP aims at transforming Côte d’Ivoire into an emerging market by 2020 and halving the poverty rate by end-2015. 58 6. The Plan which was prepared with participation of key stakeholders is articulated around five strategic pillars: (i) people live in harmony in a secure society in which good governance is ensured; (ii) the creation of national wealth is increased and its fruits shared in an equitable manner; (iii) the population, in particular women, children and other vulnerable groups have fair access to quality social services; (iv) people live in a healthy living environment; and (v) Côte d’Ivoire’s stature on the regional and international scene is enhanced. The NDP was reviewed by the Bank and the IMF staffs and an Advisory Note distributed to their Boards in May 2013. The staff commended the Government for preparing a well-structured and comprehensive strategy but noted that the ambitious poverty reduction target was not substantiated by sectoral strategies linked to specific goals, and that these would have to be developed. Some sectoral strategies have been prepared and are discussed in section on CPS Outcomes. 7. The 2009 PRSP was the first government plan in 10 years. It is thus too early to assess the achievement of country level goals. Progress under the PRSP was reviewed in 2011-12 by the staffs of the Bank and IMF which noted that macroeconomic management had been solid; public sector reforms brought improved transparency and better public procurement and protected basic public services, notably the free provision of many healthcare services. The Bank and Fund staff noted that reforms governing private-sector activity held the promise of renewed investment, increased productivity in key agricultural sectors, and greater transparency in the exploitation of the country’s extensive natural resources. The post-election crisis disrupted progress. The 2009 program supported by an Extended Fund Facility of the IMF went off track, the Government was unable to honor the maturities falling due on government securities, and new arrears accumulated. 8. In addition to the preparation of the new development plan, the government inaugurated in 2011 has made progress in maintaining peace, started a reconciliation process and reinstated public administration throughout the country. It has also maintained a generally solid macroeconomic management and other economic policies initiated under the transitional government. Progress under the 2012 plan is discussed in the section under CPS outcomes below which reflect reforms under the NDP. 9. The economy is slowly recovering. In the late nineties, economic recovery was dampened by the effect of the global recession and delayed elections which stalled investment. Rising tensions ahead of the 2010 presidential elections and the post-election crisis between November 2010 and April 2011 resulted in a slowdown of real GDP growth to 2.4 percent in 2010, from 3.9 percent in 2009, and contracted by 4.7 percent in 2011; inflation accelerated to 4.9 percent in 2011; and the overall fiscal balance deteriorated. The economy has experienced an impressive recovery since the 2011 crisis. Public services have been restored throughout the country. Reform efforts enabled the country to attain Highly Indebted Poor Country (HIPC) Completion Point and significant debt relief in June 2012. Prudent macroeconomic management resulted in a real Gross Domestic Product (GDP) growth rate of 9.8 percent in 2012 and is estimated at 8.7 percent in 2013. 10. Key policy and institutional changes in the cocoa sector, initiated under the transitional government, were continued and investments in education have allowed for a significant increase in gross enrolment rates in primary education. Sustained efforts have improved the management of public finance which has included reforms in public procurement. 11. Poverty indicators have not been updated since 2008 as the National Statistics Institute has not been able to carry out a living standard survey because of the 2010-22 events; one is programmed for 2014. The NDP notes that poverty rates have worsened as a result of the crisis: because of the large number of internally displaced people and of population who fled abroad; the sharp deterioration of social services mainly in the Center-North-West, and the broad decline of incomes, more than half the population now lives below the poverty line—against 48 percent in 2008 and 10 percent in 1985. 59 12. High international prices for the country’s main commodity exports helped recent economic performance. Even during the unrest, cocoa exports remained high and reached an exceptional level of 1.37 million tons due to good weather and the use of new crop varieties. Gold exports more than doubled in 2011 (to 13,168 kg) when a new mine came on line. In addition, renewed confidence in the economy following the return of political and macroeconomic stability since mid-2011 and the comprehensive debt forgiveness following the HIPC completion point boosted domestic and foreign private investment. 13. Headline inflation in Côte d’Ivoire was high during the first half of 2013 driven mostly by increasing food and imported rice prices. The changing food crops cycle has affected the capacity of famers and transporters to supply domestic markets with sufficient food. As a result, inflation peaked at 3.1 percent at end-June 2013, but may stand at 2.6 percent at end 2013, i.e below the WAEMU threshold of 3 percent. Credit to the economy grew by 8.6 percent in 2012 and is projected to increase by 21.9 percent at end-2013. It was mainly directed to short term loans to households and private firms, and to loans to finance agriculture crops campaigns. However, medium and long term loans are growing faster, since commercial Banks are more supportive of the private sector led growth the country is building. Côte d’Ivoire’s current account deficit is projected to further deepen in 2013, from its deficit position in 2012. The current account deficit (excluding official transfers) is projected at 2.8 percent of GDP in 2013, from a deficit of 1.4 percent of GDP in 2012. The major infrastructure projects fully covered by FDI inflows (projected at 3 percent of GDP), and other investment related imports in the mining, agro-industry, and construction sectors are driving the widening of the current account deficit. 14. The 2012 current account deficit of 1.4 percent of GDP was driven by increases in imports, including in particular of crude oil. Exports also rose sharply, reflecting better performance of manufactured goods, rubber and palm oil. The 2012 overall fiscal deficit narrowed to 3.4 percent of GDP from 5.7 percent in 2011. Fiscal management remained controlled: revenues, in particular from corporate income tax, were somewhat higher than anticipated and budgeted investments were not fully executed, while other expenditures were broadly in line with program targets. Côte d’Ivoire reached the completion point under the enhanced HIPC Initiative in June 2012, which brought debt relief of more than US$4 billion in 2011 present value terms. Côte d’Ivoire also reached an agreement with the Paris Club of bilateral creditors to cancel nearly all outstanding debts to these creditors and has now normalized its relations with international creditors. III. Progress in Achieving CPS Outcomes 15. The overall program performance rating for the 2010-2014 CPS is moderately satisfactory. Progress in achieving outcomes is discussed below and details are contained in Table 1 of this report. The Bank group program made an important contribution in helping those affected by the conflict, including restoring primary school enrollment. There were real gains in public financial management and in increasing transparency of public sector institutions. Comprehensive reforms in the cocoa sector should result in tangible and long-lasting improvements in the standards of living of the rural poor. Also, decisive steps were taken in improving the business climate, a condition for private sector investments and ultimately growth. An innovative mechanism was developed to provide credit to small and medium enterprises (SME) while IFC invested in institutions which could finance SMEs. The IFC and MIGA made impressive contributions to increasing capacity in the energy sector through the financing of oil and gas exploration but most particularly with financing in electricity generation. Investments in electricity should help reduce bottlenecks to growth resulting from power supply shortages but further investments are constrained by the generally low electricity rates which do not cover costs. There was progress in the transparency of the oil and gas sector, with Côte d’Ivoire complying with extractive industry transparency initiative (EITI) rules, but power sector subsidies were a drag on public finances, and power sector institutions remain weak. The overall program rating reflects the lack of progress in achieving electricity sector sustainability given its impact on public finances and on sector investments which are a precondition for growth. 60 Summary of Outcome Status Pillar/Outcome Status Pillar 1: Strengthening governance and institutions 1.1. Improved economic opportunities and access to social and public services for war-affected Achieved communities Partially 1.2, Improved transparency in the use of public financial resources achieved 1.3. Improved debt management and increased pro-poor spending Achieved 1.4. Increased financial transparency in key economic sectors Achieved Pillar 2: Improving the performance of the agricultural sector 2.1. Increased use of new technologies for production of export and food crops Partially achieved 2.2. Increased rural incomes Partially achieved 2.3. Sustainable management of the fauna and habitat of the Comoe National Park is improved. Achieved Pillar 3: Private sector development 3.1. Improved access to credit for entrepreneurs and small businesses: Achieved 3.2. Improved regulatory environment for business Achieved Pillar 4: Renewing infrastructure and basic services 4.1. Essential basic infrastructure is rehabilitated, expanded or upgraded. Partially achieved 4.2. Improved urban and rural living conditions Achieved 4.3. Improved basic social services Partially achieved 5: CPS cross-cutting objectives 5.1. Jobs are created with special attention to youth Achieved 5.2. Mainstreaming gender and improving women’s economic opportunities Partially achieved 61 Pillar I: Strengthening governance and institutions. 16. More than a decade of political and civil unrest weakened state capacity and left the economy in ruins. The first pillar of the CPS aimed to improve the economic opportunities and services to war-affected communities; the transparency in the use of public financial resources and of key economic sectors; debt management and increase pro-poor spending. CPS objectives supported the National Development Plan objective of increasing harmony in a secure society and increasing national wealth creation (Objective 1 and 2). CPS Outcome 1.1: Improved economic opportunities and access to social and public services for war- affected communities-Achieved 17. Progress was made in supporting the reintegration and recovery of populations affected by violence. The Post-Conflict Assistance Project (PCAP), sponsored by the Government, has been a key instrument in Bank’s response. It was restructured in 2011, and at the request of the Government additional financing of US$30 million was approved in December 2013 to scale up the project into new fragile areas. In addition, the Bank provided assistance in gender violence issues under the Protection from Gender Violence Project, financed under the State and Peace-Building Fund. By December 31, 2013, the latest data available, some 31,651 young people participated in economic reintegration activities meeting the CPS target and some 23, 456 persons participated in labor-intensive works slightly under the 2014 target. Over 3000 women benefitted from assistance under the Gender Violence Project, and the CPS target of assistance to 110 victims per month was met. All 93 registries (sous-préfectures) were constructed and/or rehabilitated and are modernized and operational, meeting the CPS objective). A planned study that will provide information on gender attitudes has not yet been carried out (discussed in 5.2 below). 18. The PCAP program also included the construction/rehabilitation of 16 district offices and 784 community infrastructures and training and support on community- driven development mechanisms and conflict resolution for more than 6,000 members of 775 community-based organizations. A social cohesion program was implemented to address the problems associated with the return of people displaced during the post-electoral crisis. Project institutions have entered into partnership agreements with government institutions dealing with post-conflict assistance to ensure continuity and mainstreaming of the PCAP and other donor funded activities. CPS Outcome 1.2: Improved transparency in the use of public financial resources-Partially achieved 19. Progress has been made in the management of public finances. Côte d’Ivoire’s institutional and regulatory public financial management framework has begun to be adjusted to comply with the WAEMU PFM directives and a new Procurement Code was adopted in 2010 resulting in the separation of the regulatory and the management functions. The most recent Public Expenditure and Financial Management Report (PEMFAR) carried out in 2012-13 and published in 2014 with support of the Bank, IMF and other development partners, showed that progress had been made in 18 of the 28 indicators measured between 2008 and 2012. This is significant given the political developments during the period. 20. Progress has been made in improving the access to the public of budget information. Reports on budget implementation; government financial statements; external audits; and contracts awarded worth more than $100,000 are available. Four of the six records required under the CPS objective were available at the time of the 2012-13 PEMFAR review and the target was partially achieved at the time. Steps have been taken to ensure that differences between actual and approved expenditures are measurable. The variance of planned and actual expenditures is increasingly in line with actual expenditures and no expenditures were charged to contingencies. 62 21. Procurement targets under the CPS were met. The National Procurement Regulatory Authority (NAPRA) was created in 2009 and has been operational since 2011; it publishes signed procurement contracts regularly. Public procurement has improved with the application of the procurement code to most public contracts; the reduction of number of single source contracts; greater transparency of information; and the establishment of the regulatory function in Government staffed with professionals. The rating of the procurement indicator in the PEMFAR (B+) met the CPS target. CPS Outcome 1.3: Improved debt management and increased pro-poor spending- Partially achieved 22. Debt management has improved. The stock of external debt declined from 54.6 percent of GDP at end- 2011 to 30.5 percent of GDP at end-2012, primarily reflecting the impact of debt relief under the HIPC and Multilateral Debt Relief Initiatives. Following a 2012 agreement on a repayment plan for all remaining arrears with commercial creditors, Cȏte d’Ivoire normalized its relations with them and the Government remains current on debt service. The most recent Bank-Fund debt sustainability analysis indicates that Côte d’Ivoire remains at moderate risk of debt distress; and meets the CPS outcome indicator. The Government began addressing the problem of domestic debt arrears which impacts the financial capabilities of the local private sector (see Outcome 3.1), but more needs to be done. The Bank and the IMF are helping the Government develop a medium-term debt management strategy. 23. Budgetary allocations for pro-poor spending, a second CPS outcome, increased to 9.9 percent of GDP in 2011, from 7 percent in 2008, but contracted to 7.8 percent in 2012, 8.2 percent in 2013, 8.8 percent in 2014, close to the CPS target of 9 percent. Pro-poor spending is expected to reach 9.3 percent of GDP by the end of 2015. Medium-term expenditure frameworks were adopted in the health and education sectors before they are rolled out to the other sectors. The Economic Governance and Recovery Grant, the Post Conflict Reconstruction Grant, and the First Poverty Reduction Grant supported public finance reform. In addition, IDA provided technical assistance on the HIPC Completion and in defining the country’s Medium-Term Debt Strategy. CPS Outcome 1.4: Increased financial transparency in key economic sectors-Partially achieved 24. Substantial progress has been made in improving governance and transparency in the extractive industries and in the cocoa sector. Côte d’Ivoire joined the Extractive Industries Transparency Initiative (EITI) in 2008 and was declared fully compliant with EITI in May 2013. Transparency in the extractive industries has improved with the regular publication of EITI reports; those for 2006-10, which include information on oil and gas exploration and development revenues and their allocation, were published in 2012 and the 2013-14 are underway. Reforms in the cocoa sector have been pursued vigorously and are discussed further under Outcome 2.2. The new structures have contributed to reducing the misuse of cocoa levies and promoting a new culture of accountability. Other key reforms in the sector include the creation of the Coffee and Cocoa Council, the regulatory body, and the approval of procedures for domestic marketing and for export sales; the initiation of forward sales of cocoa exports in January 2012, with all exporters participating since February 2012; and the adoption by the Council’s Board in April 2012 of the new manual of administrative and financial procedures and the 2012 budget for the Council. Transparency and financial management have improved with the external audits of organizations governing the sector, as well as of the Rural Investment Fund (FIMR). Audits of sector organizations and of the FIMR will be conducted annually. The accounts of the National Investment Bank were audited and published. The policy reforms in cocoa and minerals were included in two Development Policy Credits, the first PRSP, HIPPC, the emergency infrastructure project and considerable technical assistance. The CAS objective of reducing to under US$50 the subsidies to the electricity company was not met and is discussed under 4.1 below. 63 Pillar II: Improving the Performance of the Agricultural Sector. 25. Under this pillar, the Bank Group program aims to improve productivity and revenue potential in the rural areas, increase food self-sufficiency and restore basic services and income generating activities in rural areas. The program supports the agriculture and rural development objectives in the NDP (under Objective 2, creating wealth). The Bank also aimed to support the environmental objectives of the NDP by helping mitigate the impact of economic activities on the environment. IFC investments in agribusiness contribute to results under this pillar. CPS Outcome 2.1: Increased productivity and value addition of export and food crops- Partially achieved 26. Cocoa provides the main source of income for four million Ivorians; some 60 percent of cocoa growers live below the poverty line and cocoa growers account for 28 percent of poor Ivorians. The sector has had a long history of heavy taxation and poor governance. A new strategy for the cocoa sector was adopted in November 2011 (discussed 2.2 below); the incentives created to benefit cocoa farmers are expected to result in an increase in productivity of the cocoa sector. The new policies were accompanied by significant results with the 2011/12 crop which was the largest in Côte d’Ivoire history. 27. In September 2012, the Government adopted a National Agricultural Investment Plan which aims to improve food security, agricultural productivity, and incomes in rural areas. Progress is being made in cotton and cashews. Cotton is recovering from a decade of turbulence, when production fell by more than 50 percent. In 2007, a new cotton strategy was approved and factories were sold. The price-setting mechanism was reformed in 2010 which provided for shared market risks by ginners and producers. The reforms, accompanied by increasing world prices, have led to increased output, with production rising to 185,000 tons in the 2009/10 cropping season, to about 260,000 tons for 2011/12. In the north, cashews have become the most important source of rural income, ahead of cotton, the traditional cash crop. The most recent Bank economic report on Côte d’Ivoire, completed in 2012, focuses on sources of growth highlighting the potential of cashews, cotton and rice. 28. Côte d’Ivoire joined the West Africa Productivity Program in 2010 which is funded by the Bank and other donors and aims to generate and accelerate adoption of improved technologies in Côte d’Ivoire’s top agricultural areas. The 2010-11 events disrupted progress under this program but more than 47,000 farmers had adopted new technologies by November 2013, and 150,000 by May 2015 and 137,000 new hectares entered under cultivation by 2013, above the CPS target. The Bank approved an Agricultural Support Project in July 2013 which aims to increase production of promising crops. CPS Outcome 2.2: Increased rural incomes- Partially achieved 29. The cocoa sector development strategy approved in 2011 addresses the main institutional, productivity/efficiency, social and environmental concerns of the sector. The new strategy calls for a floor price for producers and reforms in taxation. A rural investment fund (FIMR) was established to finance rural infrastructure. A census of cocoa farmers allowed the creation of a representative producers’ organization. The new Coffee-Cocoa Council has developed a program of short-term actions to improve the quality of cocoa production and combat disease. This program will be developed under the new framework to ensure greater private-sector involvement and sustainability. A census of cocoa farmers will allow the creation of credible producers’ organizations and strengthen farmer representation in the new Council. The latter has established a public-private partnership platform involving the chocolate industry to improve the quality of cocoa. IFC is providing financing to Cocoa Trading companies engaged on cocoa sustainability and also is developing schemes to provide access to finance to the cooperatives involved with the traders and processors. 64 30. More efficient domestic marketing is still needed to reduce the costs of transporting from farm to port. The incentives created to benefit cocoa farmers are expected to result in an increase in productivity of the cocoa sector. Forward export sales to define reference prices to farmers began in January 2012; evidence shows that farm gate prices have increased by 33 percent (source: Management Team). 31. The full impact of the new policies will be felt in the medium term. Implementation of the new strategy has led to a rationalization of taxation, with taxes and fees based on quantities produced and exported replaced with more equitable valorem taxes in the 2010/2011 growing season. Taxes were estimated at 20 percent of the CIF price in the 2012/2013 season, compared to the 22 percent ceiling set in the 2011 strategy. Farmers received 60 percent of CIF price in the 2012/2013 season, the minimum set in the 2011 strategy, compared to less than 45 percent in the 2002-2008 seasons. 32. Progress in the cocoa sector has been supported by recent the Bank’s development policy operations and by the HIPC debt relief process. The Third Economic Growth and Recovery Grant supported reducing taxation and quasi-fiscal levies on cocoa, external audits of the bagging, weighing, and quality control, the external audit of the rural investment fund and four other cocoa entities for 2007-08. The Post Conflict Recovery and Reconstruction Grant supported the shift of export taxes on cocoa to ad valorem rates and the publication of the above audits. CPS Outcome 2.3: Strengthened protection of the environment and natural resources-Achieved 33. Despite the impact of the 2011 violence, progress has been made to strengthen environmental protection. Supported by the Ivory Coast Protected Areas Project, the sustainable management of the fauna and habitat of the Comoé National Park and the institutional capacity and the financial viability of the Foundation for Parks is improving despite the asset losses inflicted during the 2011 crisis and in the preceding decade of civil strife. A full inventory of the Park was carried out in late 2014 which will allow definitive measurement of faunal changes since the 2010 baseline. The inventory shows that the poaching of wildlife was significantly reduced. As of the end of Dec. 2014 there were 0.75-incidents/10 km, which represented a 74 percent reduction in incidents, one of the more notable achievements during the period. There was also a decline in illegal human activity in the park which is reflected in the reduction in poaching. The presence of livestock, another indicator of illegal human activity in the park, was virtually eliminated, compared to some 28 animals /10 km in January 2010. The Foundation for Parks has been able to mobilize substantive additional resources for the Tai National Park but funding for other parks in the country, beyond these two “flagship” protected areas, remains insufficient and subject to major fluctuations depending on donor interest. Pillar III: Strengthening the Private Sector. 34. Under this pillar, the Bank Group aimed to support private sector objectives in the National Development Plan (Objective 2 wealth creation) by providing support to SMEs, and promoting reforms that improve the business environment to reduce the high cost of doing business and strengthening competitiveness. The IFC supports outcomes under this pillar by helping improve the country’s business environment, and invested in two local banks with the objective of improving access to finance for SMEs. 35. The prolonged socio-economic crisis took a heavy toll on the private sector, and the post-electoral conflict in 2011 compounded problems and delayed needed reforms. There have been direct costs of violence to companies, particularly SMEs, although large firms were also affected. Political instability and poor governance have undermined the investment climate for many years. 36. Considerable progress has been made in improving the business climate and in establishing the mechanisms to provide assistance to the private sector. Based on the latest Doing Business report (DB2014) 65 Côte d’Ivoire is ranked among the top 10 global reformers. Measures have also been taken to strengthen very weak public financial institutions and UNACOPEC, the union of cooperative banks. CPS Outcome 3.1: Improved access to credit for entrepreneurs and small businesses-Achieved 37. WBG targeted financial and technical support aims to foster financial development and SME revitalization. With IDA support, the Government has initiated the settlement of domestic arrears, particularly to SMEs; some of the funds have been used to establish a mechanism to provide credit to SMEs affected by the conflict. The fund was capitalized in 2011 and had lent some CFAF 247 million as of 2013; the Fund met the CPS target of a 10 percent yearly increase in lending. A matching grant mechanism was put in place in 2010 to build private sector capacity through training and capacity-building; investments associated with the fund were already some US$4.95 in December 2013. 38. Building on the Financial Sector Assessment Program (FSAP) analysis jointly undertaken with the IMF in 2009, and a dedicated dissemination workshop held in 2010, the Bank mobilized the FIRST Initiative Trust Fund to help prepare a Financial Sector Development Strategy (FSDS). The FSDS, which was developed under the coordination of the Government’s Financial Sector Development Committee (CODESFI) is structured to provide a comprehensive analysis and action plan around key financial sector sub-sectors, including: housing, banking, microfinance, and insurance. The FSDS has been drafted and validated technically as part of a stakeholder workshop held in November 2013. A national strategy in support of financial development focused on housing, banking, and microfinance is being developed. The Government has also taken actions to reduce losses in the main state-funded microfinance organization, UNACOOPEC, beginning with the renewal of its Board of Directors, reduction in staff levels in the head office, and closure of at least ten cooperatives. It also sought to reduce subsidies to the National Savings Fund, CNCE. In addition, the adoption of new leasing guidelines resulted in increasing access to finance for SMEs while providing added comfort to leasing companies. The reforms undertaken in the OHADA code also resulted in enabling financial institutions to accept certain guarantees (not recognized under the previous OHADA code), thus enhancing the array of structuring possibilities available to banks and financial institutions. CAS Outcome 3.2. An improved regulatory environment for business-Achieved 39. The Government has adopted measures to improve the business environment and institutional architecture for private sector development. These include: the opening of the Commercial Court in Abidjan (in October 2012), the launch of the one-stop shop for business formalities (operational since December 2012); the creation of a unit in government to fight racketeering and a call center (in July 2011); and the establishment of the National Private Public Partnership Committee (since September 2011). With the consolidation of institutions, the Government is making a renewed effort at implementing the doing business reform and investment promotion agenda (including the rehabilitation and development of industrial zones, and the implementation of an industrial development policy). CPS outcome indicators and milestones have been achieved. 40. The Government has also embarked on a strategy to promote public private partnerships (PPP) to broaden access to social services and infrastructure. A National PPP Commission has been established to lead the development of a PPP program, focusing on developing priority transactions, institutional strengthening and capacity building. Anticipated opportunities cover power, ports, roads, industrial zones, health, and education. Also, the institutional framework for PPP’s has now been adopted, including through the establishment of a PPP unit supported by a Secretariat in the Ministry of Finance. The Bank and IFC with support from the Public Private Investment Assistance Facility (PPIAF) supported the government's efforts to develop the PPP program. 66 41. The implementation of the One-Stop Shop for business formalities, the Centre de Formalités des Entreprises (CFE), housed in CEPICI Centre de Promotion des Investissements en Côte d’Ivoire has led to a significant reduction of costs and time required to establish a business, from 32 to about three days. This effort is expected to boost business creation and formalization, as well as transparency. It now takes one day to register a business in the one stop shop, in line with CPS objectives, and some 7,447 SME’s have registered since the launch of the one stop shop, substantially higher than the 1000 SME’s CPS target. Also, as a result of antiracketeering measures taken by the Government the cost of transport due to racketeering has dropped by about a third from CFAF 35/metric ton/per km in 2010 to some CFAF 10.2/metric ton/km in 2013, the most recent figure available. 42. The Commercial Court in Abidjan started operations in December 2012. Following the adoption of the Presidential Decision in January 2012, this reform has led to quicker dispute resolution---in fact, all decisions taken by the court (over 100) have been made within 60 days (significantly less than the mandatory deadline of 90 days). In addition, the court has also enhanced transparency and efficiency through the publication of all proceedings on a dedicated internet site. Some 96 percent of commercial court decisions are now published in the Court’s website, meeting the CPS outcome target. 43. The WBG program focused on supporting the establishment of dedicated instruments to: (i) expand access to finance, such as the SME Mutual Fund, (now fully capitalized and operational), and several IFC programs such as those with BICICI, Ecobank, Advans), (ii) provide SME capacity building support (IFC and FARE matching grant); (iii) foster entrepreneurship (SPF TF and IFC-funded young entrepreneurs and urban job creation). In addition, a financial sector development strategy (supported by FIRST TF) is under preparation, and is expected to provide support to designing reform programs in areas related to SME access to finance, housing, banking, pensions. IFC’s roll-out of its Business Edge toolkit for SMEs enabled more than 300 SMEs to receive capacity-building to help them better manage their enterprises and improve their ability to access financing. Pillar IV Renewing infrastructure and basic services 44. Under this pillar, the Bank Group program supports the infrastructure objectives of the National Development Plan (Objectives 2, 3 and 4). The CPS aimed to help rehabilitate infrastructure to boost economic activity, and basic services to improve the quality of life in urban and rural areas. The program also aims to strengthen the institutional capacity to manage and maintain these services. IFC and MIGA contribute to the outcomes under this pillar. CPS Outcome 4.1: Essential basic infrastructure is rehabilitated, expanded and upgraded-Partially achieved. Transport-Partially achieved. 45. During the CPS period institutional reforms have been enacted to improve governance of the transport sector. The Road Fund allocations increased to about US$66 million in 2012 (from about US$5 million in 2004 and US$20-24 million in 2008-2010), and the Roads Management Agency (AGEROUTE) has reinforced staff capacity in road maintenance management, project management, procurement and environment. In the urban roads sector, the rehabilitation and construction of about 100 km of roads as well as the rehabilitation of horizontal and vertical signalization has improved the fluidity of traffic in Abidjan. In the area of trade facilitation and regional integration, Côte d'Ivoire has reduced the number of road blocks on the Ivorian section of the Abidjan-Lagos Corridor (see below), and created a Single Window for foreign trade in 2013. To support the upgrading in business infrastructure needed to attract investors, IFC participated in a South-South investment with the Mali-based Azalai group for the construction of a new 4- star business hotel in the Marcory area of Abidjan. IFC also provided financing (US$7 million loan to a 67 local transport company which will increase transport options available to private enterprises, especially in the oil/gas/mining sector, with a US$7 million loan to a local helicopter company, the International Aircraft Services while MIGA underwrote the Marcory Bridge Project. 46. A transport Sector adjustment/investment project which was approved in 1998 closed in 2011. The adjustment component which dealt with reforms in the institutional framework were partially achieved with the adoption of the maritime code, the restructuring of the civil aviation sector and the satisfactory management of the Abidjan airport, but progress on the investment component was limited, even after the project was restructured in 2008. Under the Abidjan-Lagos Transport and Trade facilitation Project under implementation, activities are underway aimed at improving traffic flows along the Corridor. There has been improvement, although CPS outcome on the improvement of roads has not been met in the Abidjan- Lagos corridor. The number of roadblocks was reduced to five, and the CPS target was met (less than seven). The border crossing time at Noé has fallen and the CPS target was met. However, it remains as high as 34 hours. Electricity - Not achieved. 47. Progress in restoring power sector infrastructure has been slow. A reorganization of the state entities dealing with electricity took place in 2012, which has helped to clarify the roles and responsibilities of the state bodies. A new electricity law was approved by Parliament and ratified by the President 2014. This law permits the unbundling of the integrated operations of the main system operator and brings Côte d’Ivoire’s legislation into conformity with the Economic Community of West African States (ECOWAS) Energy Protocol. The CPS objectives on physical losses of the electricity sector were met, although these remain high. CPS objective on the total number of additional customers was achieved. 48. The main challenge in the electricity sector is securing financial sustainability. The shortfalls are mainly due to insufficient revenues resulting from limited tariff increases in the last ten years; increases in costs caused by the declining share of low-cost hydroelectricity in the generation mix; and expensive, emergency power rentals required by the slow expansion of generation. During 2011 and 2012 the electricity company suffered financial shortfalls exceeding US$200 million per year, and US$170 million in 2013, which resulted in large Government subsidies. The Government started to implement the power sector Financial Recovery Plan agreed with the IMF in 2012, a CPS milestone. The 2013 reclassification of about 250,000 customers to the standard tariff group that helped to make energy tariffs more cost reflective was a first step. However, there have been substantial delays in introducing much needed tariff increases. Government subsidies to the electricity company were budgeted at some US$88 million in 2014, above the US$50 million CPS target. 49. In June 2015, the Government adopted electricity tariff increases (starting in July 2015), which will span over three years. The Government will also increase prices for electricity exported to neighboring countries—above the contractually agreed volume—so that they cover the marginal cost of energy. The measures envisaged should result in a sustainable financial equilibrium of the electricity sector. Subsidies to the electricity sector are expected at approximately US$40 million at end-2015. 50. Cost savings may be possible with the increased availability of natural gas from the envisaged expansion of gas fields, which is supported by an IDA guarantee. Two thermal plants are under construction (one expansion and one new plant) with IFC participation and will be commissioned in 2014-15; however, new financing of thermal generation projects is proving hard to bring to closure because of the lack of new gas supply. IFC has invested in gas exploration, which may increase supply in the medium term. Limited progress has been made in improving the performance of the electricity distribution network, (partially financed by IDA) and CPS targets have not been met. 68 CPS Outcome 4.2: Safer and cleaner urban and rural living conditions - Achieved 51. The Government has prioritized investments to improve the living conditions of the urban population. The rehabilitation of production infrastructure and drinking water network reinforcement, supported by the Bank under the Urban Rehabilitation Project, have enabled an additional 1.32 million people to access improved drinking water services and reduced the sanitary risks to the affected populations. In urban sanitation, over 480,000 persons have benefitted from the rehabilitation of pumping stations and treatment of the main liquid waste collector. In solid waste management, the Government with support of the Bank responded to the accumulation of waste on streets of Abidjan following the post-electoral crisis; actions resulted in the reduction of about 30 percent in the prevalence rate of hydrous diseases. Some 4.5 million additional people now have regular solid waste collection, and consequently live in a healthier environment. CPS outcome targets were largely achieved. CPS Objective 4.3: Improved access to basic services - Partially Achieved 52. The 2011 crisis seriously disrupted the delivery of social services, particularly education, with the destruction of classrooms and pillage of equipment throughout the country. In response, the Bank redirected existing resources towards rehabilitation and reconstruction of the education system. Overall, a major achievement in the educational sector has been the steady increase in enrolment rates. The gross enrollment rate in first grade increased to 103.2 percent in 2014 from 71 percent in 2008, exceeding the 89 percent CPS target. The primary school completion rate, a CPS target, has increased from 48 percent in 2008 to 60.4 percent in 2014. 53. There was also a substantial improvement in the ARV treatment of HIV infected pregnant women which increased from 60 percent in 2008 to 92 percent in 2014, higher than the 75 percent CPS target. Also exceeding targets was the number of adults and children with advanced HIV infection receiving antiretroviral therapy that rose to 103 thousand in 2012 (compared to target of 89 thousand) and to 163 thousand in 2014. Pillar V: Cross-Cutting Objectives 54. The CPS sought to highlight crosscutting issues which were of particular importance such as youth employment and empowerment of women. CPS Outcome 5.1: Jobs are created with a special attention to youth - Achieved 55. The new government has prioritized job creation and youth employment to promote inclusion and economic opportunities for a large number of unemployed youth, and important steps have been taken with Bank support. A National Employment Strategy was adopted by the Government in June 2012. With support from the Post-Conflict Assistance and Youth and Employment Skills Projects, labor-intensive public works (LIPWs) schemes have benefitted to more than 23,000 youth. In the meantime, Bank support to a pilot entrepreneurship job creation program, which was started in Abidjan and extended to Bouaké after the 2011 crisis, has led to good results which the government has called for scaling up nationwide. IFC’s Business Edge toolkit was used to strengthen the capacity of these small entrepreneurs. CPS Outcome 5.2: Mainstreaming gender and improving women’s economic opportunities - Partially Achieved 56. Some strides have been made to enhance the impact of WBG interventions on gender equality but more needs to be done. Over 3,000 women received assistance under the Protection from Gender Violence Project (110 per month during the duration of the project). The program supported the development of 243 69 bankable business plans (88 or about 36 percent by women), and the number of beneficiaries under aids programs increased sharply (Indicator in Outcome 4.3 above). The Government has shown strong commitment to gender equality and approved the new Family Law in November 2012. An important contribution was made to the prevention of gender-based violence with Bank support to civil society working in that area. The YES project aims to promote female employment and has a specific gender focus with a 30 percent female participation target. Qualitative information obtained in a Bank-financed study on the impact of gender dialogue groups in donor funded Village Savings and Loan Associations (VSLA) shows that the addition of the gender dialogue groups to the agenda of these institutions has the potential to yield reductions in intimate sexual partner violence against women. Free-standing gender dialogue groups appear to have limited impact. The study suggests that research evaluations should allow a greater time interval between the end of programmatic activities and the impact assessment. A planned survey which would have helped determine trends on gender inequitable attitudes during the CPS period has not yet been carried out (a reduction of inequitable attitudes is a CPS target), as it would have been premature, given the period covered. IV. Measuring Bank Performance 57. The World Bank Group performance rating is satisfactory. This rating is based on a program design that addressed key issues and a strong implementation effort in a fragile state. Quality of Design 58. The strategy was well-aligned to the country’s development priorities. It was linked with the key building blocks of the Poverty Reduction Strategy Document of January 2009. The CPS program remained relevant to the National Development Strategy which the Government prepared in 2012 following the post- electoral crisis. The CPS was ambitious in terms of the number of outcomes and indicators. It consists of five pillars which covered most sectors and two cross-cutting issues. Sectoral priorities in basic and physical infrastructure (Pillar IV) were also covered in activities such as providing emergency support in war torn areas (Pillar I) as well in the cross cutting pillar which focused on women’s issues and employment. The CPS does not explain why some areas such as improvements in a national park were priority in the post- conflict period in Côte d’Ivoire. The CPS Progress Report confirmed that WBG engagement in Côte d’Ivoire would continue to be guided by the 2010-13 CPS and introduced minor revisions to the initial outcomes and indicators; in retrospect some outcomes should have been dropped (e.g. environment) and some indicators where data was not available taken out (e.g., increase in women participation and productivity of bananas) and others such as losses in the electricity made more meaningful. The Progress Report listed new areas of engagement such as helping improve the quality and efficiency of public expenditures and the application of land legislation, which were priority and aligned with Pillar I (Strengthening Governance and Institutions), but ambitious given that the program had only one more year of implementation. Most indicators reflect outcomes from Bank operations, although some did not have an evident link such as the number of trash collectors trained. The alignment of the 2010 WBG CPS with the PRSP is discussed in the CPS and is summarized as follows:  PRSP first objective: focused on consolidating peace and security and promoting good governance is aligned with the CPS Pillar 1 aimed at strengthening governance and institutions. The first CPS objective is also aligned with PRSP’s second objective, which included a focus on strengthening PFM and procurement.  PRSP second objective: also focused on transforming Côte d’Ivoire into an emerging economy, as well as improving the environment for the private sector and agricultural productivity. CPS objectives 2 and 3 focused on agriculture and private sector development, respectively, are aligned with this objective. 70  PRSP third objective: focused on social well-being for all, and the CPS objective of infrastructure and basic services, including the provision of better sanitation services and living conditions in urban and rural areas, is aligned with this objective.  PRSP fourth objective: focused on regional and global integration, and this objective was supported through a number of regional operations embedded in the CPS Pillars, including in agriculture research, energy, economic competitiveness and trade. 59. The NDP pillars, which were developed in 2012 after the CPS, and are described in paragraph 6 of this Report, focus on these same areas of priority – supporting a harmonious and secure society in which good governance is ensured; the creation of national wealth; support for vulnerable groups and ensuring quality social services; ensuring a healthy living environment and enhancing Côte d’Ivoire’s stature at the regional and international levels. 60. The work program was concentrated on assisting in crisis recovery by providing emergency support in war torn areas, improving governance strengthening the management of public finances and improving private sector, which was to be the trigger for economic recovery. Although not explicitly stated, the agriculture and infrastructure pillars focused on cocoa sector reform and energy pricing issues, because of their implications for poverty reduction and public finance and poverty reduction, respectively. In these sectors/areas IDA policy operations supported policy reforms and were accompanied by investment/technical assistance support. Lending operations were accompanied by high quality analytical work. The strategy was a joint one for IDA, IFC and MIGA, and IFC and MIGA provided inputs to the CPS. 61. The CPS took into account lessons from a Country Assistance Review of Bank experience in Côte d’Ivoire during the previous 30 years carried out in 1999 by OED, many of which remain valid today: (i) lending to was successful in areas where the Bank has had a long-standing working relationship with the country and a consistent strategy (e.g., agricultural and infrastructure projects and operations to restore the country’s competitive position in the financial and private sector) (ii) structural adjustment lending was less positive partly because of pressure to disburse the large tranches in adjustment operations, a problem partly remedied by single tranche policy grants where all actions are up front; (iii) support to the social sectors, notably to help improve health and education outcomes, had little effect; (iv) institutional issues require attention as implementation problems were often of an institutional nature, particularly in the social sectors. 62. The 2010 CPS discussed the division of labor among development partners in Côte d’Ivoire, in particular highlighting areas where other development partners were more present, such as in health and education, where the Bank was not as directly involved in the 2010 CPS. As the question implies, the WBG focused its strategy on those areas where it felt it had a comparative advantage. On page 18 of the 2010 CPS, there is a discussion of lessons learned from the Bank’s experience in Côte d’Ivoire, and how these lessons informed the Bank Group decisions on where the institution was best placed to intervene in support of Côte d’Ivoire’s development objectives. 63.   It would have been difficult to forecast and program for the time and disruption that followed the elections. In retrospect, it would have been important to recognize that the government following the civil war and years of political unrest would have serious political constraints, such as those that emerged in the electricity sector, and that any new government was bound to have serious implementation capacity issues. 71 Quality of Response 64. The Bank group provided coordinated assistance during the FY10-14 CPS period: IDA provided financing for a total of US$684.46 million equivalent. IFC invested US$928.9 million during the period as at December 31, 2013, and MIGA has provided some US$650 million in gross insurance guarantees. IDA, IFC and MIGA provided complementary support in the energy sector. IDA and IFC also collaborated in improving the business environment, and access to finance and the agriculture sector, including cocoa sector reform. Tables 2-4 summarize IDA planned an actual lending and non-lending products and IFC investments. 65. IDA met all its financing objectives for the CPS period. It responded swiftly to support Côte d’Ivoire’s recovery efforts in the aftermath of the 2011 crisis. The US$684.5 million is almost double the indicative program of US$355 in the CPS. US$30 million of the total was from the Crisis Response Window. The bulk of IDA financing was in the form of grants with US$53.2 million in credits in FY14. US$60.0 million was a partial guarantee. The WBG used existing IDA operations to address post-crisis needs and projects under implementation were restructured in 2011. IDA frontloaded remaining IDA 16 resources in FY12 with the approval of a development policy operation, an emergency Youth Employment and Skills development project, an Emergency Infrastructure Renewal project. In addition, IDA is managing a basic education project, funded under the Global Partnership for Education (GPE). Development policy grants amounted to 42 percent of total financing; the major focus of the policy based operations was on public finance and transparency (e.g. EITI compliance), cocoa reform and electricity tariffs. The policy discussions in agriculture, business environment and electricity carried out in connection with these operations complemented work of IFC and MIGA. 66. The Bank also carried out a considerable amount of high quality analytical work and technical assistance with its own funds or with trust fund resources which have contributed to the design of government programs or enabled their implementation. The report on the “Growth Agenda: Building on Natural Resources and Exports” distributed to the Board in FY12 is assisting in the definition of diversification policies, and the Public Expenditure and Financial Accountability Report, completed in FY13, is central to the discussions on public finance. In addition to the analytical work financed with its own resources, the Bank mobilized in FY12-14, years for which the data is available, some US$6 million in grants which have been used to provide technical assistance and analytical work in health, education, mining and enterprise development. The technical assistance provided under the grants supported entrepreneur training and technical work to ensure EITI compliance. Most of the analytical work complemented work of other donors, notably the European Union and the African Development Bank. 67. During the CPS period, IFC provided financing of US$460.2 million for its own account --- in equity investments and loan guarantees. Since the end of the crisis, IFC re-engaged massively in Côte d’Ivoire’s power sector, and mobilized the entire financing for two major expansion projects aimed at increasing the sector’s generated capacity: IFC mobilized a total US$850 million, with US$500 million for the expansion of the Azito Power Project (Phase 3), and the US$350 million for the expansion of CIPREL (Phase IV). At completion the two plants (which are the two largest IPPs in South Saharan Africa) will have a total capacity of almost 1,000 MW and will generate two thirds of Côte d’Ivoire’s total power output. This should enable the country to both sustain its economic recovery and continue to export to neighboring countries, such as Mali, Burkina Faso, Liberia and Guinea. IFC also expanded its support to the financial sector, (providing an equivalent of US$128 million via risk-sharing facilities and trade guarantees to local banks for their SME portfolio), and delivered assistance to agri-business companies to strengthen their operations. 68. MIGA has supported three important projects for around US$650 million in gross insurance coverage: the Henri Konan Bedie toll bridge, the expansion of Azito power plant, and the development of Foxtrot and 72 Marlin offshore oil and gas platforms. In total, MIGA's guarantees have facilitated about US$2.2bn of transformative investments into the country. 69. IDA project ratings indicate progress towards meeting development objectives. Of the seven projects which had completed implementation status and results (ISR) at the end of the CPS period, four reported satisfactory progress in achieving development objectives and in implementation progress, two reported moderately satisfactory progress and one, in electricity, reported unsatisfactory progress. Portfolio performance was slightly better than the regional average. As of December 2013, 22 percent of projects were at risk, slightly lower than for Africa as a whole (28 percent). The disbursement rate of 14.5 percent was higher than for Africa as a whole (eight percent). Procurement and financial management have been on the whole satisfactory. Table 5 and 6 summarize IDA portfolio performance. 70. The Bank cleared and restructured the portfolio following the 2011 events. In addition to restructuring projects, it closed three projects (education, rural land management and transport sector) which had been approved before the crisis in FY97-98. An HIV AIDS approved in FY08 and three budget support operations approved in FY10-14 also closed. As of early December 2013, implementation completion report (ICR) have been prepared for all but the recently-closed PRSP which is part of a series of policy operations, and will not require a separate ICR. Two of the investment operations, HIV and education, were rated moderately satisfactory, one rural land management, unsatisfactory, and one, transport, moderately unsatisfactory. The ICR for the Rural Land Management project noted that the project had combined the follow-up to two earlier operations, a Bank practice at the time of approval, which had proven a poor design. The two budget support operations were rated moderately satisfactory; Government delays in complying with EITI regulations were the main reason for the rating. The Independent Evaluation Group (IEG) has reviewed three of the six ICRs prepared. IEG concurred with the rating on the budget support operations, upgraded the rating of the education project and downgraded the rating of the rural land management project to highly unsatisfactory, while rating the quality of the ICR for that project close to exemplary. 71. The country office has played an important role in program design and implementation. The country director and all task managers and sector leaders are based in Abidjan. Bank staff was evacuated for five months during the 2011 crisis. 72. Coordination with Development Partners is strong. In December 2012, the Government organized the first Consultative Group meeting in Paris following the 2011 crisis with the support of the WBG and the UN system. The Consultative Group resulted in pledges of more than US$8.6 billion for the financing of the 2012-2015 National Development Program. During the meeting, the Government also committed to creating a formal framework to coordinate partner support and has since followed through on that commitment. Côte d’Ivoire’s main partners, under the chairmanship of the EU, meet monthly to share information on their respective programs in support of the framework. In addition, thematic groups formed by operational sector teams collaborate well, especially during project preparation. The Bank, IMF and the EU have coordinated closely in the design of the budget support operations and the EU especially has provided financing for audits to assist in public finance reforms. V. Key Lessons and Suggestions Summarized below are key lessons learned and suggestions for future CPS. 73. Assisting war-affected communities requires flexibility and commitment from all parties. The Bank was proactive and provided financial and technical support in a broad spectrum of areas. The main project dealing with affected areas, the PCAP was restructured in 2011 to focus on needs, and additional financing approved in FY14. Despite potential complexities of PCAP, it has been instrumental in supporting 73 Government address problems of war-affected communities. Commitment from counterparts and collaboration with other donors made progress possible. In the future, the Bank program would need to take into account the regional disparities in allocating resources and developing programs. 74. Public finance reforms take a long time to put in place and require sustained support. Experience in the public finance area in Côte d’Ivoire confirms that reforms in public financial management take a long time to design and put in place and that there are often strong vested interests in government and outside against reform. Bank support has been sustained and began in 2008 following Bank reengagement with Côte d’Ivoire. Under the current CPS, support has included two development policy operations and PRSG and specific bilateral funded technical assistance. The IMF program as well as those of other donors such as the European Union supported the reforms. The weakness of the civil service below the most senior staff is a handicap to progress especially in light of the challenges faced after over 10 years of political disruptions. Problems with programs to increase transparency in public institutions are similar to those affecting other reforms in public finance. Competencies of staff and the vested interest of public and private agents who benefit from existing system delay reform. Over time, increased competency of staff dealing particularly with sensitive issues, combined with higher salaries, should help. 75. Focus on transparency in the key mining and cocoa sectors required support from Government and commitment from donors. This subject has been central to the discussions between the Government and donors and this, combined with the Government willingness to move forward has yielded results. The Bank and other donors have provided considerable assistance. The policy reforms in these two sectors were included in two Development Policy Credits, the first PRSP, HIPPC, the emergency infrastructure project and considerable technical assistance. 76. Business environment reform is moving albeit slowly, but it always takes considerable time to put it in place. Coordination of the Bank and IFC has been exemplary in this area, and helped achieve significant results between 2012 and 2013. Bank-IFC programs helped establish and coordinate the activity of the Ivorian Doing Business reform team, the implementation of landmark initiatives such as the One Stop Shop for Business Formalities within CEPICI, the launch of the Commercial Court of Abidjan, and the implementation of major investment generation efforts including the Forum Investir Côte d'Ivoire (ICI2014). The Bank, IFC and the Government also responded to the needs of MSMEs and young entrepreneurs, through arrangements (such as risk sharing facilities and partnerships with financial intermediaries to facilitate access to finance), the implementation of a pilot Business Plan Competition initiative to foster entrepreneurship in Abidjan and Bouaké, and the design of an innovative instrument (MCF-PME) which both helped reduce government debt to small enterprises and provided them financing -- these and related efforts are showing promising results and can be scaled up moving forward. 77. Pro-poor spending expenses are constrained by competing demands. This is particularly true in times of conflict. With growing stability the Government might be in a better position to concentrate in priority activities. 78. Indicators need to be measurable and available at the time of the CPS. This CPS confirms that it is preferable to include indicators that are already measured at the time of program design. It is difficult to rely on surveys to be conducted at the end of the program period as these are difficult to implement. 74 CÔTE d’IVOIRE CPS 2010-2014 COMPLETION REPORT Tables 75 TABLE 1 SUMMARY OF CPS PROGRAM SELF-EVALUATION CPS Outcomes Status of Lending and Non-lending Activities Lessons for the New CPS and Outcome Indicators CPS Outcomes and Evaluation Summary that Contributed to Outcomes CPS Pillar 1: Strengthening Governance and Institutions National Development Plan Objectives: 1. The people live in harmony in a secured society where good governance is ensured 2. National wealth creation has increased, is being sustained and its fruits are being shared equitably Outcome 1.1 Improved economic opportunities and access to social and public services for war-affected communities (achieved)  Ex-combatants, individuals associated  Achieved. As of December 31, 2013 Assisting war-affected with an armed group, and youth-at-risk Pillar 1: Bank Group Program i) 31,651 persons participated in economic On-going Operations: communities. Bank was proactive have and provided financial and technical i) participated in economic reintegration reintegration activities  Governance and Institutional ii) 23,456 persons participated in labor- Development Project (GIDG) support in a broad spectrum of areas. activities, 30,000 by 2014 compared to Most ongoing projects were 6,700 in 2010; intensive public works.  Youth Employment and Skills Project restructured in 2011 to focus on ii) participated in labor intensive public needs, and additional financing works, 29,000 by 2014 compared to 0  Achieved. The average number of victims  Governance and Institutional approved in FY14. Despite potential in 2009. assisted in the area of direct intervention under Development TA complexities of PCAP it has been Protection of Gender Violence Project was  PCAP instrumental in supporting  286% increase in number of victims of 110 per month, from 39 victims per month at Closed during CPS Period Government address problems of sexual violence receiving assistance the start of the project (2012) representing a  Economic Governance and war-affected communities. appropriate to their needs on a monthly 282% increase. Recovery Grant 3-EGRG (FY10; Commitment from counterparts and basis in the area of direct intervention, closed FY12) collaboration with other donors made from 39 victims/month (2010) to 110  Post Conflict Reconstruction and progress possible. In the future, the victims/month (2012). (verified) Recovery Grant PCRR (FY12; Bank program would need to take closed FY13) into account the regional disparities  Study not carried out yet as it would have been  PRSG 1 (FY14; closed FY14) premature. in allocating resources and Protection from Gender Violence developing programs. Project (Trust fund) (FY11-FY12).  Achieved. All 93 civil registry offices (sous  a statistical significant change of prefectures) updated, modernized and Planned Operations: about 30% (baseline vs endline) in the operational (100% of total) by December  SPF Strategic Initiative on Peace Bank program would need to take gender inequitable attitudes index 2013. building in Côte d'Ivoire into account the regional disparities attributed to the program, as per 2013 in allocating resources and impact evaluation. developing programs. 76 SUMMARY OF CPS PROGRAM SELF-EVALUATION CPS Outcomes Status of Lending and Non-lending Activities Lessons for the New CPS and Outcome Indicators CPS Outcomes and Evaluation Summary that Contributed to Outcomes  70% of civil registry offices having Milestones 1.1 On-going Knowledge Services: Improving public finance. Bank their civil registry updated, modernized  Preparatory work to identify eligible  IDF Capacity-building for support has been sustained and began and operational compared to 0 (2009). participants undertaken Parliamentarians in 2008 following Bank  Opportunity study identified promising value  PEMFAR (FY13-14) reengagement with Côte d’Ivoire. chain developments and a database in the on  Gender Assessment and Under the current CPS support has local economic opportunities are in place Mainstreaming (FY13-14) included two development policy  Program of Labor Intensive Public Works  Growth Identification and operations and PRSG and specific (LIPWs) is established with a focus on road Facilitation Framework bilateral funded technical assistance. maintenance, sanitation and drainage.  PFM for Service Delivery (FY13- The IMF program as well as those of Established in 2009 (achieved) 14) other donors such as the European Capacity building for small businesses to carry Union supported the reforms and out LIPWs, and for youth brigades to become Planned Knowledge Services: through technical assistance and small-scale road maintenance  Security Sector Public Expenditure good analytical. Experience confirms Review that reforms in public financial management, take a long.  Local Government and Local Governance Review  Land Administration and Land Rights Review Development Partners: EU, UNDP, UNCEF, UNFPA, IMF, France, Belgium, Japan. Operators. Achieved: considerable support has Norway, Germany, Sweden, UNOCI Time to design and put in place and been provided for income-generating that there would be strong vested activities/small businesses. interests in government against  9 Regional community rehabilitation offices reform. The weakness of the civil have been established, received training and service below the most senior staff is are well functioning, each staffed with an a handicap to progress especially in 77 SUMMARY OF CPS PROGRAM SELF-EVALUATION CPS Outcomes Status of Lending and Non-lending Activities Lessons for the New CPS and Outcome Indicators CPS Outcomes and Evaluation Summary that Contributed to Outcomes Economic Reintegration Officer and a light of the challenges faced after Community Rehabilitation Officer (on-going). over 10 years of political disruptions. Program has now been scaled down to 6 as the Post Conflict Assistance project is closing.  Increased transparency in the  Social marketing initiatives are developed and key mining and cocoa sectors. broadcast. Achieved. Secure the archives of This subject has been central to the civil registry in place and propose a “schema discussions between the directeur de l’Etat civil” (networked Government and donors and for repository) Achieved. The CPS PR milestone this reason has yielded results. In on the establishment of the National addition to budget support, the Identification Database was not achieved; this Bank and other donors have program was only partly financed by the provided considerable technical World Bank, and other donors did not provide assistance to make the reforms the needed funds. feasible. Work on the EINTI was supported by three trust fund activities and the cocoa sector through direct bank financing of preparatory studies. Pro-poor spending: Progress constrained by competing demands. Outcome 1.2 Improved transparency in the use of public financial resources (partially achieved)  Public has access to principal budget Increased Transparency in public information on a regular basis as  Partially achieved. PI-10 rating in 2013: B. finance. Issues are similar to those evidenced by an increase in the PEFA the situation has improved compared to what it affecting other reforms in public indicator PI-10. Baseline C (2008) was in 2008: 4 of 6 records are accessible to finance. Competencies of staff and target A (2014) the public. the vested interest of public sector  The following are available to the public: but also those in the private sector i) Intra-annual reports on the implementation who benefit from existing system of the budget; delay reform. Persistent efforts in ii) End of year financial statements; education and over time iii) External audit reports; arrangements that can help overcome iv) Contracts awarded worth more than the problems caused by low civil US$100,000; service salaries should help. 78 SUMMARY OF CPS PROGRAM SELF-EVALUATION CPS Outcomes Status of Lending and Non-lending Activities Lessons for the New CPS and Outcome Indicators CPS Outcomes and Evaluation Summary that Contributed to Outcomes v) Information on the resources available to the units responsible for the delivery of essential services. vi) The end of year financial statements and external audit reports were added to the documents made available to the public in 2008-2013. Note: the 2013 Public Expenditure and Financial Accountability Report, a multi donor assessment, is the most recent.  Partially achieved. Composition of actual expenditure as compared to the approved budget is measurable. PI-2 rated C+ (2013). The two measures were as follows:  Composition of actual expenditure as compared to the approved budget is  The variance in expenditure composition measurable, as evidenced by an exceeded 15% only in 2011 although they increase in the PEFA indicator PI-2. were greater than 10%. (PI-1 not rated). Baseline not rated (2008); target A  No expenditures were charged to the (2014) contingencies. The PI-2 (ii) indicator relating to this is rated A.  Achieved. The National Public Procurement Regulatory Authority (NAPRA) established in 2009 is operational since 2011. A code of ethics and a hotline have been set up to fight fraud/corruption in public procurements. Starting in February 2012, the NAPRA publishes in the weekly procurement bulletin  Integrity and transparency of the the results of its investigations on complaints procurement process is improved as it receives. In addition, the NPPRA carried out evidenced by NAPRA being audits of public procurements for FY2011 and operational; FY2012. The results were published. 79 SUMMARY OF CPS PROGRAM SELF-EVALUATION CPS Outcomes Status of Lending and Non-lending Activities Lessons for the New CPS and Outcome Indicators CPS Outcomes and Evaluation Summary that Contributed to Outcomes  Achieved. Competition, value for money and controls in procurement has improved. PI-19 rated B+ (2013) -The regulatory framework has improved due to: (i) the application of the procurement code to most public contracts; (ii) the reduction of number of single source contracts; (iii) greater transparency of information; and (iv) the establishment of the regulatory function in Government using independent and professional personnel;  Competition, value for money and -as a result of the adoption of SIGMAP, an controls in procurement is improved as integrated public procurement information evidenced by the PEFA indicator PI-19. management system, there is public access to Baseline C (2008); target B (2014) reliable and timely procurement information; -There is an independent administrative procurement complaints system for investigation and decisions of the Appeals and Enforcement Unit of the NPPRA. Milestone 1.2 - Annual budget approved at beginning of year. Achieved starting in December 2011. - Quarterly publication of budget expenditures. Achieved starting in June 2010. - MEF website is operational and regularly updated during the CPS. Achieved starting in May 2010. Government communications strategy is prepared for economic reform program (achieved July 2012). Decree issued to set up NPPRA (achieved August 6, 2009) and NPPRA publishes all signed procurement and concession contracts quarterly in public procurement bulletin (on-going). 80 SUMMARY OF CPS PROGRAM SELF-EVALUATION CPS Outcomes Status of Lending and Non-lending Activities Lessons for the New CPS and Outcome Indicators CPS Outcomes and Evaluation Summary that Contributed to Outcomes Outcome 1.3 Improved debt management and increased pro-poor spending (Achieved)  Achieved. Côte d’Ivoire remains at a moderate risk of debt distress. The stock of external debt declined from 54.6% of GDP at end-2011 to 30.5% of GDP at end-2012  Risk of debt distress remains moderate primarily reflecting the impact of debt relief as evidenced by government remaining under the HIPC and Multilateral Debt Relief Initiatives when Cȏte d’Ivoire reached the  TA for HIPC Completion point current on debt service attainment, TA for the country’s HIPC completion point in June 2012. Following an agreement in late 2012 on a Medium-Term Debt Strategy repayment plan for all remaining arrears with preparation commercial creditors, Cȏte d’Ivoire  Post-Conflict Reconstruction and normalized its relations with external Recovery Grant (PCRRG) creditors. As a result, the Government remains  Poverty Reduction support Credit 1 current on the debt service. (PRSC-1)  Achieved. Share of pro poor spending increased to 9.9% of GDP in 2011, contracted to 7.8% in 2012 and grew to 8.8 of GDP in 2013 and 9.7% in 2014. It is projected at 9.3% of GDP at end 2015.  Share of pro-poor spending increases from 7.8% of GDP in 2009 to 9% in 2014 Milestones 1.3  Government completes clearance of domestic arrears and does not accumulate new arrears (on-going)  MTEFs are completed for health, education, agriculture and infrastructure and reflected in budget execution (achieved December 2013). 81 SUMMARY OF CPS PROGRAM SELF-EVALUATION CPS Outcomes Status of Lending and Non-lending Activities Lessons for the New CPS and Outcome Indicators CPS Outcomes and Evaluation Summary that Contributed to Outcomes Outcome 1.4 Increased financial transparency in key economic sectors (partially achieved)  Reforms in Cocoa Sector.  Annual publication of the audited  Achieved. Accounts of Cocoa enterprises Supported by the program and financial statements of public (FRC, BCC, ARCC and FDPCC) published on other donors, it is central to enterprises and institutions in cocoa, web site of Ministry of Economy and Finance. improvements in living conditions energy and banking The account of the State Holding in the Oil of the population. Success sector, PETROCI, were audited and published confirms need for a focused wide in the main newspapers. The accounts of the ranging approach. National Investment Bank (BNI) were audited and accounts published.  Environment. The subject is obviously important but a Bank  Subsidies to the electricity sector are Not achieved. Subsidy to electricity sector in operation should not warrant an not to exceed US$50m by mid-2014 budget for 2014 was US$88 million. outcome in the CPS. This is particularly true after the post-  Achieved. Information contained in annual election crisis. The indicator could  Information on oil revenues generated EITI reports (2008-2012) validated and have been dropped in the Progress and their allocation are published published. The Government has continued to Report. annually following EITI guidelines publish quarterly reports on oil revenues in the Ministry of Finance website. The EITI National committee is preparing the 2013- 2014 EITI reports. Milestones 1.4  Cocoa sector strategy was adopted and under implementation; quarterly reports on investments in the cocoa sector are made public: Cocoa Strategy adopted by Government in November 2011 and under implementation. HIPC trigger met (achieved)  Audits carried out in oil/ gas exploration, and production; and oil refining; (achieved) 82 SUMMARY OF CPS PROGRAM SELF-EVALUATION CPS Outcomes Status of Lending and Non-lending Activities Lessons for the New CPS and Outcome Indicators CPS Outcomes and Evaluation Summary that Contributed to Outcomes  A “cost-reflective” tariff setting/regulation mechanism established for electricity: Not achieved. The Government has indicated that increases in electricity rates in the near term while civil service has not had salary increases in many years would not be feasible.  Draft annual EITI report for 2008-2012 validated and published. Government complies with EITI regulations. Compliance status reached in May 2013 (achieved). CPS Pillar 2: Improving the Performance of the Agricultural Sector National Development Plan Objective: 2. National wealth creation has increased, is being sustained and its fruits are being shared equitably Outcome 2.1: Increased use of new technologies for production of export and food crops (partially achieved)  Number of agriculture producers and  Achieved. Côte d’Ivoire joined the West Pillar 2: Bank Group Program agribusinesses that have adopted Africa Agricultural Productivity Program in improved technologies increases from 0 2010. As of May 2015, 150,000 producers had On-going Operations: adopted new technologies (47,000 as of  IDA West African Agricultural (2010) to 63,000 (2014). November 2013). The original target of Productivity Project (WAAPP) 30,000 was adjusted to 63,000 in the PR to  GEF Protected Area Project reflect more realistic figures.  IDA Youth Employment and Skills Project  Hectares under new technology:  Achieved. 137,000 producers had adopted new  IDA Agriculture Sector Support Baseline 0 (2010) increased to 57,000 technologies as of 2013 (An adjustment for Project (2014). this target from 10000 to 57000 has been made for the PR to reflect more realistic Closed during CAS Period  75 % of projects financed by FIRCA figures).  IDA Economic Governance and (Fond Interprofessionnel pour la Recovery Grant 3 (FY10; closed Recherche et le Conseil Agricole)  Partially achieved. A survey was conducted in FY12) have received satisfactory results as 2014 on a sample of 36 projects financed by  IDA Post Conflict Reconstruction evidenced by evaluation surveys in FIRCA (Fond Interprofessionnel pour la Grant (FY12; closed FY13) 2014. Recherche et le Conseil Agricole) and  IDA PRSG 1 (FY14; closed FY14) concluded that 80% are satisfactory. 83 SUMMARY OF CPS PROGRAM SELF-EVALUATION CPS Outcomes Status of Lending and Non-lending Activities Lessons for the New CPS and Outcome Indicators CPS Outcomes and Evaluation Summary that Contributed to Outcomes On-going Knowledge Services: Milestones 2.1  PEMFAR (FY13-14)  The National Program for Agricultural  Gender Assessment and Investment has been adopted by government. Mainstreaming (FY13-14) Adopted in 2012 (achieved)  Cocoa Sector Dialogue Planned Knowledge Services:  National Center of Specialization (NCO) is  Land Administration and Land established in 2012, strengthened and carries Rights Review out research in banana plantain (Achieved)  Capacity-building program for researchers is Development partners: undertaken and regional and international IFAD, AFD, Germany, UN, France partnerships are created. Under the WAPP Partnerships were established with CARBAB/Cameroon (plantains) and Africe (rice) (achieved) Outcome 2.2: Increased rural incomes (partially achieved)  Cocoa farmers retain increased share of  Achieved. Most taxes converted from revenues as evidenced by the overall taxation based principally on quantities indirect taxation of the cocoa sector produced/exported to ad valorem rates in the having been reduced from 32 percent to 2010/2011 growing season. Taxes were no more than 22% of the CIF price. estimated at 20 percent of the CIF price in the 2012/2013 season.  The share of the cocoa world price  Achieved. Farmers received 60 percent of CIF received by farmers is no less than 60 price in the 2012/2013 season, compared to % by 2014. less than 45 percent in the 2002-2008 seasons. Price to farmers increased from 750 CFAF/Kg in 2013/14 to 850 CFAF/Kg, which is higher than 60% CIF price. 84 SUMMARY OF CPS PROGRAM SELF-EVALUATION CPS Outcomes Status of Lending and Non-lending Activities Lessons for the New CPS and Outcome Indicators CPS Outcomes and Evaluation Summary that Contributed to Outcomes Milestones 2.1  (i) A new cocoa sector development strategy is finalized which addresses the main institutional, productivity, social and environmental concerns (appears under 2.1 above in CASPR) (ii) a new institutional framework adopted: Government adopted program in November 2011. The Coffee and Cocoa Council established; it gives adequate voice to producers, and ensures efficiency and transparency and is conducive to public- private partnerships--Ordinances of December 2011 establishing the Council and defining the composition of the Council Board. (Achieved)  Fiscal levies have been reduced, and the system moved to ad valorem taxation not exceeding 22% of the CIF price in 2011 (achieved). Forward export sales to define reference prices to farmers began January 2012 and contributed to a significant increases in revenue.  FIRCA (Fond Interprofessionnel pour la Recherche et le Conseil Agricole) /WAAPP.  Per hectare net revenues from plantain banana increase by at least 20 % by Information not available. 2014 Milestones 2.2  Cocoa taxes were converted to an ad valorem rate of no more than 22 percent of the CIF price by the beginning of 2010/11 crop season (achieved) Adoption of improved technologies leads to increased productivity of select commodities, 85 SUMMARY OF CPS PROGRAM SELF-EVALUATION CPS Outcomes Status of Lending and Non-lending Activities Lessons for the New CPS and Outcome Indicators CPS Outcomes and Evaluation Summary that Contributed to Outcomes including plantain banana (ongoing). FIRCA (Fond Interprofessionnel pour la Recherche et Le Conseil Agricole)/WAAPP Outcome 2.3: The sustainable management of the fauna and habitat of the Comoé National Park is improved. Achieved  The poaching of wildlife is reduced by Achieved. The Baseline value from 15 January the end 2014 2010 was 2.9-incidents/10 km (based on a transect survey). The final measure (from 31 Dec. 2014) was 0.75-incidents/10 km (a 74% reduction). This was one of the more notable achievements of the project. Achieved. This indicator was changed at project  60 % reduced illegal human activity in restructuring because there are better indicators to park measure illegal human activity (i.e. livestock in park and poaching).” The poaching indicator above is a good measure of illegal activities, The presence of livestock in the park is a good proxy for illegal human activities in the park. This indicator went from 28.01-animals/10 km (15 January 2010) to 0.3- animals/10 km at end of December 2014, a virtually complete removal of cattle and livestock from the park, as a result of enhanced patrolling and dialogue with community leaders. Milestones 2.3  76 staff trained in park management and in participatory methods: 75 trained as of December 2012 (achieved).  8 land management contracts signed with communities: 15 as of 12/12 (achieved)  Foundation for National Parks raises US$3.5 million: US14.73 million raised as of December 2012 (achieved) 86 SUMMARY OF CPS PROGRAM SELF-EVALUATION CPS Outcomes Status of Lending and Non-lending Activities Lessons for the New CPS and Outcome Indicators CPS Outcomes and Evaluation Summary that Contributed to Outcomes CPS Pillar 3: Private Sector development National Development Plan Objective: 2. National wealth creation has increased, is being sustained and its fruits are being shared equitably) Outcome 3.1. Improved access to credit for entrepreneurs and small businesses: achieved  Finance and Credit Mutual increases  Achieved. The MCF-PME started operations lending to SMEs by 10% annually in 2012, with support of the IDA SME project. During the first year (2012), the institution granted 13 loans for a total CFAF 95.22 million. In 2013 (data to November 2013) 21 loans have been approved for a total of CFAF 152.39 million. This corresponds to an increase of 60% in lending volumes and 61% in the number of loans between 2012 and 2013. Lending increased by 14.3% in 2013-14, higher than the target.  SMEs use matching grants amounting  Achieved. The FARE matching grant was Pillar III: Lending and Non-Lending to US$6 million to train and improve established in 2010. From 2010 to 2013 it Activities worker performance approved 100 projects with a total investment (from FARE and SMEs) of CFAF 2,477 On-going operations: million (or US$4.95 million). The FARE IDA SME Revitalization and matching grant achieved a disbursement rate Governance Project of 97%, executing the projects approved IDA Youth Employment and Skills between 2010-2013. The total investment Project figure is not yet available. IFC investment in ECOBANK   IFC risk-sharing facility to BICICI Milestones 3.1 and SIB, (2 local banks) for their  Mutual Fund for SMEs is capitalized and lending to SMEs receives technical assistance: obligations IFC trade finance guarantee to released to capitalize mutual fund by February Bank of Africa 2012; operational by August 2012 (achieved)  Mutual fund increases number of loans to its SME members.13 loans in 2012, to 22 loans as 87 SUMMARY OF CPS PROGRAM SELF-EVALUATION CPS Outcomes Status of Lending and Non-lending Activities Lessons for the New CPS and Outcome Indicators CPS Outcomes and Evaluation Summary that Contributed to Outcomes of 6/2013 projected to increase to 28 by Closed during CAS Period December 2013 (on-going) Economic Governance and  Matching grants program for capacity-building Recovery Grant 3 (FY10; closed established (on-going) FY12) Post Conflict Reconstruction Grant (FY12; closed FY13) IDA PRSG 1 (FY14; closed FY14) FSAP: (FY10/11) Knowledge Services:  Gender Assessment and Mainstreaming (FY13-14)  Industrial Zones TA (FY13-14)  PP Market Development TA (FY13-14)  Financial Sector Assessment (2010-2011)  Financial Sector Development Strategy (FY13/14) -- funded through FIRST Initiative TF Investment Climate Assessment and Extension to North Center West (FY12/13)  Competitive Industries and Innovation Program -- Côte d'Ivoire -- Phase 1: (FY14) -- funded through CIIP TF  Business Growth Identification and Facilitation Framework  IFC technical assistance on business climate reform and entrepreneurship Development Partners EU, France 88 SUMMARY OF CPS PROGRAM SELF-EVALUATION CPS Outcomes Status of Lending and Non-lending Activities Lessons for the New CPS and Outcome Indicators CPS Outcomes and Evaluation Summary that Contributed to Outcomes Outcome 3.2 An improved regulatory environment for business-achieved  Number of days to settle a commercial  Partially achieved. Commercial Court of  Credit to Entrepreneurs and dispute reduced from 770 days (2009) Abidjan started operations in October 2012. small business. The Bank to 450 (2014) According to Doing Business 2014 report, time designed a good instrument to settle commercial dispute was reduced in which confirms the importance 2012/2013 from 770 to 585 days. Report gives of having qualified staff trial and judgment times, which fell from 365 to designing projects. 210 days. Judgment enforcement (beyond scope of Commercial Court) fell from 380 to 350 days.  Partially achieved. The  Commercial court decisions published  Achieved. The Commercial Court of Abidjan Commercial Court of Abidjan on the internet increase from 0% published 95.5% of decisions taken on its started operations in October (2009) to 95% (2014) website (based on information from the 2012. According to the Doing Commercial Court). Business 2014 report, the time to settle a commercial dispute  Time to establish a business in the One  Achieved. According to the 2015 Doing has been reduced in 2012/2013 Stop Shop is 29 hours (2014). Business Report, which includes 2014 data, the from 770 to 585 days. The One Stop Shop registration plus the publication report also gives the time of of the legal notice takes a total of 3 days, and is trial and judgment which fell expected to fall further in the 2016 report. from 365 to 210 Business Information from Government indicates that the environment reform is One Stop Shop registers (or establishes a moving albeit slowly, but it business) a business in 24 hours. The use of always takes considerable time establishing a business in the PR indicator is to put it in place. Coordination imprecise. of the Bank and IFC has been exemplary.  Indicator in PARE project is to reduce  Achieved. Since its formal launch at the end the time to establish a firm from 32 to 2012, Between end-2012-2014, 7,447 firms 8 days. have been registered at the One Stop Shop.  At least 1,000 new SMEs registered by  Achieved. While direct attribution is difficult to 2014. establish, new firms registered in the One-Stop- Shop have created potentially 20,000 jobs (2,154 have been confirmed so far). To date, the 89 SUMMARY OF CPS PROGRAM SELF-EVALUATION CPS Outcomes Status of Lending and Non-lending Activities Lessons for the New CPS and Outcome Indicators CPS Outcomes and Evaluation Summary that Contributed to Outcomes  New registered SMEs benefiting from FARE-matching grant has led to the creation of matching grants and MCF result in 1168 jobs; and the MCF has led to the creation 10,000 new jobs by 2014. of 227 jobs, for a total of 3,549 jobs out of the 20,000 potential jobs expected by 2,014 in firms registered at the one stop shop.  Transport costs due to racketeering  Achieved. Racketeering costs fell from 35 reduced by 25% annually, from 20 FCFA/metric ton / km at project start (2010) to CFAF/ton kilometer in 2010 to 4 12.64 CFAF/metric ton/km in 2012. (2013 CFAF/ton kilometer in 2014. ENSEA Study) and to CFAF 10.2/km in 2013 (2014 study) Milestones 3.2  One stop shop at the RCCM (Business and Collateral Registry) established (achieved). Established in December 2012.  Commercial court established and operational in Abidjan (achieved). Operational in October 2012.  A pilot program to fight racketeering is launched in Abidjan (achieved). Unite de Lutte Contre le Racket launched a start-up call center and intensified communication, capacity building and investigative functions (June 2013). 90 SUMMARY OF CPS PROGRAM SELF-EVALUATION CPS Outcomes Status of Lending and Non-lending Activities Lessons for the New CPS and Outcome Indicators CPS Outcomes and Evaluation Summary that Contributed to Outcomes CPS Pillar 4: Renewing Infrastructure and Basic Services National Development Plan Objectives: 3. The people, particularly women, children and other vulnerable groups, have access to quality and equitable social services 4. The people live in a healthy environment and enjoy an adequate quality of life Outcome 4.1. Essential basic infrastructure is rehabilitated, expanded or upgraded-partially achieved Transport 2014 results Pillar 4. Bank Group Program Energy Sector Reform. The  Trade and transport barriers are reduced (i) border crossing time 34h; reform of energy sector pricing on roads along Abidjan-Lagos corridor (ii) number of roadblocks 5 (compared to 18 in On-going IDA Operations: has been at the forefront of the as evidenced by i) reduced border 2011)  IDA Infrastructure Renewal policy dialogue with Côte crossing time at Elubo-Noé from 37h (iii) 10% (15 km) of roads on corridor in good  IDA Emergency Urban d’Ivoire for some time, and the (2010) to 35h (end 2014); ii) number of condition against target of 19%. Rehabilitation energy sector has benefitted roadblocks (official checkpoints) along  IDA Emergency Infrastructure from attention from the WB, IFC the Corridor is less than 7 by end 2014 Renewal and the IMF and MIGA which is (the target is a maximum of 3 per 100  IDA Urgent Electricity equivalent if not greater than the km); and iii) improved quality of roads Rehabilitation Project support for cocoa sector reform. with 50km rehabilitated by 2014 Milestones 4.1  IDA Abidjan Lagos Trade and The political economy of the compared to 0 in 2010. Transport Transport Facilitation Project energy sector is extremely  Transport sector strategy is prepared and  EFA/FTI Emergency Basic complex, and vested interests adopted. A preliminary draft completed in Education Support Project (the business community and 2012 (partially achieved) civil service) have considerable  IDA Youth Employment and Skills  The Road Fund Agency is autonomous and weight. This has to be Project mobilizes an increases from CFA14 billion in recognized and discussed up  PRG Block CI-27 Gas Field 2007 to 21 billion in 2010 (achieved) front especially in a post- Expansion Project.  60 bridges rehabilitated (achieved). 76 bridges conflict.  MIGA underwriting for transport rehabilitated under the Transport Sector (Marcory Bridge) Investment/Adjustment Project closed in 2012.  IFC Azalai Group hotel Investment Computerized port single window established  IFC Investment in International and functional in Abidjan port. (achieved) Aircraft Services.  Enforcement of MOU for ALTTFP and monitoring and publishing of roadblocks by ALCO (achieved 2011) Closed during CAS Period:  Civil works for road improvements along the  Economic Governance and corridor in Côte d’Ivoire are carried out (on- Recovery Grant 3-EGRG (FY10; going) closed FY12) 91 SUMMARY OF CPS PROGRAM SELF-EVALUATION CPS Outcomes Status of Lending and Non-lending Activities Lessons for the New CPS and Outcome Indicators CPS Outcomes and Evaluation Summary that Contributed to Outcomes  Post Conflict Reconstruction and Recovery Grant PCRR (FY12; closed FY13)  IDA PRSG 1 (FY14; closed FY14)  Education and Training Support Project (FY98; closed FY13)  Emergency Multi-Sector HIV/AIDS Project (FY08; Closed FY13). Planned Operations:  IDA Emergency Urban Rehabilitation Additional Financing (FY14)* On-going Knowledge Services:  Gender Assessment and Mainstreaming (FY13-14)  PFM for Service Delivery (FY13- 14)  Results based Health Financing TA (FY13-14) Planned Knowledge Services:  Demographics Regional Study Development Partners: EU, ADB, Belgium, France, Germany, UN USAID, Global Fund, WHO * Operation integrated into CPF 92 SUMMARY OF CPS PROGRAM SELF-EVALUATION CPS Outcomes Status of Lending and Non-lending Activities Lessons for the New CPS and Outcome Indicators CPS Outcomes and Evaluation Summary that Contributed to Outcomes Electricity Electricity  Physical losses are reduced by 1%, from Losses were reduced by 3% in 2013.Total 31% in 2012 to 29.9% by mid 2014 national distribution losses were cut by an additional 2% in 2014.  30,000 additional customers connected An additional 8,000 customers were connected by by end 2014 end 2013 and 23,000 new customers added in 2014 out of a 102,000 in total nationwide. Reduction of Subsidies to electricity company reported under Objective 1.4 above not achieved. Milestones Electricity  Letter of sector development policy is under implementation (achieved). In late 2012, the Government reached an agreement with the IMF on a Financial Recovery Plan for the Electricity Sector.  Medium and low voltage distribution equipment and facilities in greater Abidjan area are replaced or rehabilitated (achieved)  Compensation devises are installed in substations to comply with operating voltage and reduce losses (ongoing)  12 outgoing circuit breakers in Abidjan Substations replaced (on-going). Outcome 4.2 Improved urban and rural living conditions-Achieved Water and sanitation services Drainage infrastructure and waste management and disposal restored as evidenced by  1.2 million additional people get access  1.32 million additional people got access to to potable water by 2014 (baseline: potable water by 2014. 3.2m 2008) 93 SUMMARY OF CPS PROGRAM SELF-EVALUATION CPS Outcomes Status of Lending and Non-lending Activities Lessons for the New CPS and Outcome Indicators CPS Outcomes and Evaluation Summary that Contributed to Outcomes  500,000 additional people benefiting  Some 483,000 people have access to an from improved sanitary conditions in improved sanitation system with the targeted areas by 2014 (baseline 2.9 m rehabilitation of existing network and 2008) construction of 38 km of new sewage networks through 2014.  In addition, 97 water points of a total of 121 by the end of FY14 benefitting 72,890 people; 497 toilets in schools of a total of 511 by the end of FY14 benefitting 369 555 people.  4.5 million people in the Abidjan District have regular solid waste collection services. Milestones 4.2  Urban water: 120 water fountains, 20,000 new connections and 40 schools completed (achieved)  Sewerage: 395,000 additional people connected to main sewer (achieved see above)  21 pumping stations rehabilitated (achieved see above)  80% of waste collected and dumped to the disposal site compared to total waste produced (source ANASUR) (on-going) Solid waste collection infrastructure rehabilitated and operations resume at transfer station (achieved March 2009) 94 SUMMARY OF CPS PROGRAM SELF-EVALUATION CPS Outcomes Status of Lending and Non-lending Activities Lessons for the New CPS and Outcome Indicators CPS Outcomes and Evaluation Summary that Contributed to Outcomes Outcome4.3 Improved basic social services: Partially achieved Education  Gross Enrollment Rate in 1st grade 103.2 (2014) increased to 89% (2014) from 71% (2008)  Gross Enrollment Rate in primary 95.4% (2014) increased to 91% (2014) from 74% (2008)  Primary Completion Rate increased to 60.4% in 2014 62% (2014) from 46% (2008) 16.1% in 2014  Repetition Rate down from 22% (2008) to 14% (2014) Milestones 4.3  Students in grades 1 receive 3 textbooks and for students in grades 3 to 6 receive 3 and 5 textbooks, respectively; (achieved-2012)  Curriculum reform for primary school is completed and implemented (achieved-2012)  Two pre-service teacher-training institutions in former-rebel controlled zones are re-opened and 14 pre-service teacher training institutions have pedagogical materials for staff and students (2012). 300 primary schools and 9 lower secondary schools are built by end 2011 (achieved by 2012) HIV/AIDS  increased use of condoms among 29.7 % (women – 2012) women and men 15-49 years having had more than 1 sexual partner in past 95 SUMMARY OF CPS PROGRAM SELF-EVALUATION CPS Outcomes Status of Lending and Non-lending Activities Lessons for the New CPS and Outcome Indicators CPS Outcomes and Evaluation Summary that Contributed to Outcomes year: respectively 12% (2008) to over 35.7 % (men - 2012) (Most recent data 14% (2012) and 30% (2008) to 31% available). (2012)  increased number of HIV-infected pregnant women received complete 44% (2012) ARV treatment to reduce risk of 76.7 (2013) mother-to-child transmission baseline 92% (2014) 60% (2008), target 75% (2012)  adults and children with advanced HIV infection receiving antiretroviral 109,925 (2012) therapy, baseline 46,000 (08), target 133,788 (2013) 89,000 (2012) 163,004 (2014)  Ministry of Health receives support to deliver all essential services for the prevention, care and treatment of STDs, TB and HIV/AIDS in 4 focus (75% achieved in all regions in 2009, 2010, 2011 and 2012); TB has been sponsored by the Global Fund.  Action plans of the ministries of health, education defense and interior for 4 focus regions are implemented (achieved, action plans were implemented each year starting 2009 to 20012)  5,180,000 condoms distributed (male & female) among the CSW in the 4 target Project regions: 3,094,551 distributed (partially achieved) 51 sub-contracts awarded and implemented per year for HRG and vulnerable populations: 81 awarded (achieved) 96 5. CPS Cross Cutting Objectives Outcome 5.1 Jobs are created, with a special attention to youth: (achieved)  Pillar 1: Ex-combatants, individuals On-going operations associated with an armed group, and Pillar 1: As of October 31, 2013:  IDA Emergency Infrastructure Renewal youth-at-risk have:  IDA Emergency Urban Rehabilitation (i) 29, 667;  -EFA/FTI Emergency Basic Education (i) Participated in economic reintegration (ii) 23, 456 Support Project activities, 30,000 in 2014 compared to  IDA Post Conflict Assistance Project 6,700 in 2010; and Pillar 3:  IDA Youth Employment and Skills Project  IDA SME Revitalization and Governance ii) Participated in labor intensive public 148 businesses have been launched by Project works, 29,000 by 2014 compared to 0 in participants in the BPC program and are active  IDA Agriculture Sector Support Project 2008 (as of November 2013). These businesses have (FY14) led to the creation of 997 formal jobs.  Pillar 3: 15 unemployed youth Closed participating in BPC have launched a  Support for Young Entrepreneurs and Urban business that is still operating in 2014, Job Creation (State and Peace Building Trust baseline 0 (2009) Pillar 4: Information of jobs created in solid Fund) waste sector not available. Indicator difficult to monitor. Planned operations  IDA Emergency Urban Rehabilitation Additional Financing (FY14)  IDA PCAP Additional Financing (FY14)*  State and Peace Building Trust Fund. Strategic Initiative on Peace building in Côte d'Ivoire  Pillar 4: Youth participate in LIPWs and 12,000 permanent jobs created in solid On-going Knowledge Services: waste sector  Gender Assessment and Mainstreaming (FY13-14) Development Partners France, Germany, EU, 97 Outcome 5.2 Mainstreaming gender and improving women’s economic opportunities: not rated Pillar 1: 286% increase in number of victims Pillar 1. The average number of victims On-going operations: receiving assistance appropriate to their needs assisted under Protection of Gender Violence  IDA West African Agricultural Productivity on a monthly basis in the area of direct Project was 110 per month for (2012) Project intervention, from 39 victims/month (2010) to Pillar 2. Indicator unclear.  IDA Emergency Infrastructure Renewal 110 victims/month (2012) Pillar 3. The BPC program supported the  IDA Emergency Urban Rehabilitation Pillar 2: Project beneficiaries direct/indirect, development of 243 bankable business plans  IDA Youth Employment and Skills Project 40% of whom are female increases from 0 (88 or about 36% from women)  IDA Agriculture Sector Support Project (2010) to 100,000 by (2014) Closed Pillar 3:A minimum of 50% of participants in  SPF Support for Young Entrepreneurs and Job Business Plan Competition are women (target Pillar 4. % of HIV infected women receiving Creation program (closed FY14) in SPF BPC program: 30 %) treatment: Planned operations:  IDA Emergency Urban Rehabilitation 44% (2012); 76.7 (2013); 92% (2014) Additional Financing (FY14)*  IDA PCAP Additional Financing (FY14)* Pillar 4: increased number of HIV-infected  SPF Strategic Initiative on Peace building in pregnant women received complete ARV Côte d'Ivoire treatment to reduce risk of mother-to-child transmission baseline 60% (08), target 75% (2012) On-going Knowledge Services:  Gender Assessment and Mainstreaming (FY13-14) Development Partners EU, ADB, Belgium, France, Germany, USAID, Global Fund, WHO, UNOCI, UN Women *Operation integrated into CPF *PCAP AF done in FY14 98 Table 2 Côte d’Ivoire – FY10-14 - Country Partnership Strategy- Completion Report Planned Lending Program and Actual Deliveries (FY10-FY14) Proposed IDA Operations**(US$ million Equiv*) Indicative IDA 15 for FY10-11 215 IDA resources from Crisis Response Window (CRW) in FY10 30 Total 245 FY10 SME Revitalization and Governance Grant (15) 100 SME Revitalization and Governance Grant 15 Economic Governance and Recovery Grant III (90) Economic Governance and Recovery Grant III 90 [15 CRW] 30 Additional Financing Urban Rehabilitation ** (15) Additional Financing Urban Rehabilitation grant 50 [15 CRW] CRW Sub total (120) 130 Regional Projects 2nd West Africa Agricultural Productivity Project (10) 0 Approved in FY11 Total (130) 130 Total 155 FY11 EGRG IV (40) 115 Employment and Training Opportunities for Youth (35) Approved in FY12 Azito Partial Risk Guarantee (10) Approved in FY99 Sub total (85) Regional projects Abidjan-Lagos Corridor Transport Project (20) Abidjan-Lagos Corridor Transport Project 20*** West Africa Power Pool Program (10) Approved in FY12 2nd West Africa Agricultural Productivity Project 10*** Total (115) 115 Total 30 IDA 16 for FY12-13 (indicative figure) 220 FY12 Post-Conflict Reconstruction and Recovery PRSG 1 110 150 Grant (PRSG 1 in FY14) Infrastructure Renewal Emergency Infrastructure Renewal Grant 100 FY 12 Agriculture Productivity Project Approved in FY14 Cont. Emergency Youth Employment and Skills 50 Development Grant CI-27 Gas field expansion partial guarantee 60 Regional projects West Africa Power pool 10** Total 110 Total 370 FY13 PRSG II 110 Decentralization and local development Growth & Competitiveness Economic Infrastructure Renewal Total 110 Total 0 FY14 PRSG 1 PRSG 1 50 23.18 credit 26.28 Agriculture Sector Support Project Agriculture Sector Support Project grant PCAP Additional Financing PCAP Additional Financing 30 Total 0 Total 129.46 Total FY10 to FY14 355 Total FY10 to FY14 684.46 * IDA figures are grants unless specified. CAS exchange rate USD1.565/SDR. ** IDA Program in page 41 of the CPS. CPS Progress Report does not show updated Lending Table. *** Figure in program 99 Table 3 CÔTE D’IVOIRE – FY10-14 - COUNTRY PARTNERSHIP STRATEGY- COMPLETION REPORT Planned Non-lending Services and Actual Deliveries (FY 2010-2014) CPS Plans FY10-14 Status FY10 Health Country Status Report Completed in FY12 (see reference in FY12) Poverty Assessment Started in FY14 Investment Climate Survey Report , No. 69767, March, 2011 (first Post-Conflict Private Sector phase Abidjan) Assessment Investment Climate Survey Report, 2012 (Second Phase, Center and Northwest) Dissemination workshop for Financial Sector Assessment of June 2009, September 2010 FY11 Policy Notes on Sources of Distributed to the Board in FY12 (see reference in FY12) Growth PEMFAR update Completed in FY13 Use of Country System: strengthen the PFM system so that it can be Use of Country System used to implement Bank-financed investment operations, completed March 2013 FY12 Gender Assessment Completed in FY13 (See reference in FY13) Côte d’Ivoire, The Growth Agenda: Building on Natural Resources and Exports (No. 62572-CI),March, 2013 “Santé, Nutrition et Population. Rapport Analytique Santé Pauvreté” (No. AAA56-CI), December 2012 FY13 “Rapport sur la seconde évaluation du système de la GFP” PEMFAR update (PEMFAR II), 06/1, prepared with financing from the Bank and other donors. Bank report expected to be completed in FY14 Côte d’Ivoire Gender Background Note, June, 2013 FY14 Added in CPS Progress Report Poverty Assessment (from FY10) Regional Demographic Study This PER was dropped due to a lack of request from the client. Security Sector Public This PER was dropped due to a lack of request from the client. Expenditure Review Local Government and Local Completed in FY15 (July 11, 2014) - (P144552) Governance Review Land Administration and Land Completed in FY15 (June 30, 2015) - (P148791) Rights Review 100 Table 4 Côte d'Ivoire: IFC Investment Operations 2011 2012 2013 2014* Original Commitments (US$m) IFC and Participants 1.88 50.20 375.84 501.01 IFC's Own Accounts only 1.88 42.20 155.84 260.31 Original Commitments by Sector (%)- IFC Accounts only Accommodation and Tourism Services 5.05 Agriculture and Forestry 7.58 Electric Power 83.42 50.91 Finance and Insurance 100 63.85 6.22 49.09 Oil. Gas and Mining 28.56 0.81 Transportation and Warehousing 4.49 Total 100 99.99 99.99 100 Original Commitments by Investment Instrument (%) - IFC Accounts only Equity 52.7 36.15 0.81 Guarantee 47.3 63.85 6.22 49.09 Loan 89.76 50.91 Risk product 3.21 Total 100 100 100 100 * Data as of December 31, 2013               101 Côte d'Ivoire. Operations Portfolio (IBRD/IDA and Grants)   Table 5 As Of Date 11/25/2014 IBRD/IDA * Total Disbursed (Active) 318.67 of which has been repaid 0.00 Total Disbursed (Closed) 920.85 of which has been repaid 979.21 Total Disbursed (Active + 1,239.52 Closed) of which has been repaid 979.21 Total Undisbursed (Active) 253.32 Total Undisbursed (Closed) 0.00 Total Undisbursed (Active + 253.32 Closed)    Difference Between Active Projects Last ISR Expected and Actual Supervision Rating Disbursements a/ Development Implementation Fiscal Frm Project ID Project Name IDA GRANT Undisb. Orig. Objectives Progress Year Rev'd CI - Emerg. Youth Empl & Skills Dev. P122546 Pro MS MS 2012 50 29.57305940 P112573 CI - Urgent Electr. Sector Rehab. (FY09) MS MS 2009 50 27.92389237 26.60930233 P124715 CI Emergency Infrastructure Renewal S S 2012 100 86.18259639 5.36370601 P110020 CI-Emergency Urban Infrast. ERL (FY08) S S 2008 144 2.97593995 18.78511256 P082817 CI-Post-Conflict Assistance (FY08) S S 2008 120 0.44974817 -1.33564302 P127449 CI-PRSG 1 # # 2014 50 51.39089100 P119308 CI: Agriculture Sector Support Project # # 2014 50 50.77358500 P111290 RCI-GEF Protected Area Project (PARC) # S 2009 2.54 1.02128394 0.78128394 P115398 SME Revitalization + Governance S S 2010 15 4.04584904 4.42238796 Overall Result 579 2.54 254.33684530 36.25623749 102 Annex 4: Managing the Impact of Côte d’Ivoire’s Medium Term Climate Change and Disaster Risks 1. Côte d’Ivoire is vulnerable to climate change impacts and associated disaster risks. Historical records indicate a temperature increase between 0.5 and 0.8oC between 1970 and 2000, and general circulation models predict that the mean annual temperature will increase by 1.0 to 3.0oC by 2060. Models are more ambiguous with respect to precipitation although a decreasing trend in rainfall between June and August is expected. Also anticipated is that extreme climate events such as droughts and floods will become more frequent and that unpredictability will increase. Rainfall is becoming increasingly frequent in the dry season, while periods in the rainy season without precipitation have also become more frequent. In the coming century, more floods could happen in the South, where the highest amount of rainfall occurs, and more droughts are expected in the semi-arid northern savannah region. 2. These climate-related events and associated disaster risks could undermine development outcomes. For example, heavy downpours are leading to flooding and soil erosion, with less rainwater infiltrating the soil. This is causing increasing disruption to agricultural production cycles. In some cases, the population is unaware of adaptation strategies for addressing these challenges, and in other cases there is a lack of funding to implement them. 3. Development interventions in CIV therefore need to try to mainstream resilience into their early stages of design, making use of the knowledge accumulated to date on the rich experiences on climate-resilient development. This is especially pertinent for sectors such as agriculture, water resources, infrastructure development and health. 4. Particular attention needs to be paid to the agriculture sector, given its dependency on climate and it being a major driver of economic growth, jobs and livelihoods. There is a growing consensus that temperature increases caused by climate change will affect many crop growing areas in CIV. Smallholders who produce the majority of the crops are at the same time the most vulnerable group and the least equipped to cope with climatic changes, the effects of which are becoming most apparent in the country’s southwest region, dominated by agriculture. 5. While it is difficult to be precise at this juncture, it is generally accepted that climate change will affect major export crops such cacao and coffee. Research carried out by CIAT9 scientists on cocoa-producing areas in Côte d’Ivoire – investigating the suitability for cocoa production in future climates, concluded that by 2030 declines in production will already be noticeable. By 2050, “a rise of 2.3 degrees celsius will drastically affect production in lowland regions, including the major cocoa-producing areas of Moyen-Comoe, Sud-Comoe and Agneby. Farmers in these areas are particularly vulnerable since cocoa production is often their primary source of income.” Not only will these small producers lose an important livelihood strategy, but the national government will also lose an important source of foreign exchange earnings. 6. Rising temperatures are expected to render certain producing areas less suitable or even unsuitable for growing, meaning production may have to shift and alternative crops be identified. 9 Centro Internacional de Agricultura Tropical (CIAT). 2011b. Predicting the impact of climate change on the cocoa-growing regions in Ghana and Côte d’Ivoire. Cali, Colombia: CIAT. 103 Incidences of pests and diseases will increase and crop quality is likely to suffer. Also, as ideal growing areas gradually shift to higher altitudes (case of coffee), further deforestation would occur. 7. Forests, which are already under pressure from extensive agriculture, will also become more vulnerable as a result of rising temperatures. Less resilient forests would in turn reduce the quality of environmental services available to agriculture. Deforestation and forest degradation, brought about by rapid expansion of agricultural lands, compromises the country's development goals and is a major contributor to greenhouse gas emissions in CIV. 8. Considering the potential increase in climate change-related risks, CIV should explore proactive adjustment responses for the medium term. It would be important to initiate programs promoting the use of climate-smart agricultural systems and research into new varieties that will tolerate higher temperatures. Actions to help farmers adapt to the impact of climate change include social organization essential for smallholders to access new markets, changes in agricultural practices, improving soil fertility, and technologies or support programs. Other responses could include diversification to non-farming activities, adoption of financial mechanisms, including climate insurance and access to micro-credit to facilitate adaptation. Furthermore, interventions in agriculture would benefit from including climate and carbon finance instruments that can incentivize sustainable landscape management, including yield increases and reduced deforestation. In this context, the Government has announced plans for a zero-deforestation cocoa sector and has engaged with the World Bank and other partners in a strategic approach to address drivers of deforestation and forest degradation. The country has a unique opportunity to engage in a programmatic approach to advance transformation at scale by using different forest and climate change financial instruments such as the Forest Carbon Partnership Facility (FCPF) and the Forest Investment Program (FIP). Côte d’Ivoire is already making good progress in developing programs under the FCPF and FIP. 9. CIV will also need to work to increase resilience in the health and sanitation sectors. While these sectors may not immediately appear to be at risk from climate change, considerations such as heavy storms, floods and strong winds, and longer term issues such as sea level rise and extreme temperature variations, would need to be addressed in health and sanitation related programs and investments. Exploration of additional demands arising from increased malaria and other tropical diseases in some parts of the country due to rising temperatures and humidity should be considered. Building knowledge and awareness bases around these issues could yield benefits in the medium term. 104 Annex 5: IDA 17 Commitments in Côte d'Ivoire Policy Commitments related to CPF formulation. This CPF fully incorporates the IDA 17 commitments to (a) align with the WBG twin goals through the Systematic Country Diagnostic; (b) build on analysis of drivers of fragility and conflict; (c) inclusion of gender dimensions; and (d) incorporating climate and disaster risk considerations into the analysis. WBG joint implementation plans (JIPs). A JIP for agribusiness exists. JIPs are being prepared at the country level for investment climate and PPPs. Job Diagnostic (Inclusive Growth Policy Commitment 3). The overall objective of the job diagnostic is to expand the evidence based on job creation through a comprehensive analysis of employment in Côte d’Ivoire through a multi-sector perspective. The jobs assessment fits within the framework of the Jobs WDR, as well as the regional report on youth employment in Sub-Saharan Africa and the Jobs Diagnostic tool. It links to ongoing youth employment operations, as well as related impact evaluations. The first part of the jobs assessment includes an update on the employment situation in Côte d'Ivoire and an analysis of the links between education, skills and employment. The second part of the jobs diagnosis will deepen the analysis of determinants of productivity, including on the demand-side of the labor market. It will include analyses of employment and productivity in non-agricultural micro-enterprises, employment and productivity in agriculture, as well as analysis of jobs creation and constraints for formal firms. Non-farm self-employment is likely to be a priority area given its potential role for poverty reduction as well as the fact that the government has requested Bank support for the 2014/5 employment and informal sector survey. Completion of the full jobs diagnostic is planned by May 2016. Financial Inclusion Support Framework (Inclusive Growth Policy Commitment 6). A Financial sector development strategy addressing financial inclusion was prepared with Bank support and adopted in 2014. Despite recent progress highlighted by the latest Findex survey, analyses conducted to prepare the SCD confirmed the critical need to improve financial inclusion. A joint F&M /Governance operation is scheduled for FY 17 to support progress in this area. Preparation will start in FY16 (building inter alia on the 2015 Findex survey). BOOST public finance analysis (Inclusive Growth Policy Commitment 7). The BOOST in Côte d’Ivoire will enhance the transparency and efficiency of public spending in Côte d’Ivoire by improving access to government expenditure data and linking spending to relevant results. The BOOST will enable more practical and insightful analytical work to better inform policy recommendations to improve the quality and efficiency of public service delivery. In that regard, the BOOST will be a complement to a PER in Health and Education and PEMFAR. The expected results are incorporated into the CPF Results Framework related to strengthening public financial management and accountability, and will support the steps necessary for the country to join the Open Government Partnership. Climate and disaster risk multi-sectoral plans and investments (Climate Change Policy Commitment) As part of the IDA17 replenishment, the Bank has undertaken to fulfill a number of commitments related to climate change and disaster risk management, including to scale-up support to IDA countries to develop and implement country-led, multi-sectoral plans and investments for managing climate and disaster risk in development in at least 25 additional IDA countries. Côte d’Ivoire is one of the countries benefitting from this support through the West Africa Coastal Areas Programmatic TA. The programmatic TA will help Côte d’Ivoire develop climate resilient integrated coastal management development and investment plans, based on priority areas or sectors for interventions with the support of donors such as the GIZ under their Africa Climate Investment Readiness Partnership. This mainstreaming effort and engagement will ultimately converge to the design and implementation of short and medium term investments operations to combat coastal erosion and promote climate resilient and sustainable integrated coastal management practices. 105 Annex 6: Development Partner Activities in Côte d'Ivoire Partnerships and Donor Coordination: Overview 1. Partnership continues to be at the core of the WBG engagement with Côte d’Ivoire, in recognition of the scope and scale of the country’s needs. Collaboration with development partners enables the WBG to leverage its engagements and focus on its areas of comparative advantage. The complementarity with donor-assisted programs is discussed above under CPF objectives. The Government is leading donor coordination, and in December 2012, organized the first Consultative Group meeting in Paris following the 2011 crisis with the support of the WBG and the UN system. The Consultative Group resulted in pledges of more than US$8.6 billion for the financing of the 2012-2015 National Development Program. 2. Efforts to strengthen the implementation of the Paris Declaration should continue. Côte d’Ivoire has signed the 2005 Paris Declaration on Aid Effectiveness, and also successively attended the Third and Fourth High level Forum on Aid Effectiveness in Accra in 2008 and in Busan. The Government is currently developing a National Aid Policy which encompasses effective mechanisms for donor coordination, such as an aid management platform (cotedivoire.ampsite.net). An inter-ministerial Committee for External Resources Mobilization (COMOREX) keeps a database to track donor funding in the country. These efforts are supported by a coordination group of heads of mission, established in 2011 and currently chaired by the EU and the UN, to facilitate overall information sharing on projects and activities financed by donors, at a technical level. In late 2013, the Donors established the Heads of Cooperation group, which aims to facilitate and promote the technical and political dialogue on aid effectiveness among donors, and between donors the Government and other partners in conjunction with the Government. The Heads of Cooperation group, at Ambassadorial level, is led by a President and a Co-Chair, with one ideally representing a bilateral partner and the other a multilateral institution. The Government and the Donors Group hold strategic meetings twice a year, led by the Prime Minister and his Cabinet, with the Heads of missions. 106 Total Concessional Funding by Donor over  the 2010 ‐ 2019 period (in million US$)  AfDB/ADF BADEA Other, 535.6 Saudia Arabia, 32.4 AfDB/ADF, 825.8 ECOWAS EU Kuwait, 57.3 Japan, 484.5 IFAD BADEA, 79.0 Global Fund Islamic DB ECOWAS, 87.7 WAEMU India, 14.3 Germany, 35.0 West Af DB UN Agencies EU, 930.9 France France, 714.8 Germany India Japan Kuwait IFAD, 134.8 UN Agencies, 172.2 Saudia Arabia WAEMU, 81.8 Other Islamic DB, 492.8 Global Fund, 182.7 West Af DB, 241.2 3. Donor coordination mechanisms at the sectoral level are effective, but will need to be consolidated with increasing donor support. The Donors are currently organized around 14 sectorial working groups, along with mechanisms to ensure their functioning, formed by technical teams. These working groups collaborate well, especially during project preparation, and are complemented by cooperation around specific instruments. For example, the WBG, the IMF, and the EU have coordinated closely in the design of policy-based operations since 2011. The WBG has also coordinated closely with the EU, the AFD other key donors such as the Government of France in the design of investment programs. With increasing support and donor engagement, the need for effective sectoral and cross-sectoral coordination remains essential. The WBG will intensify coordination with key donors, notably the EU and AFD, reinforcing cooperation in key areas such as land reform and the development of regions. 107 Côte d'Ivoire Donor Financing Table (2010-2019)  Private  Sector   State    Public   Agriculture  /    Dev/Business  Strengthening   Administration/  Water and   Total  Rural  Dev/ Education/S  Energy   Health  Climate              /Peace   Transportation  Governance/Justic Sanitation  Fundings  Environment  kills/Jobs  Industry / SME  Consolidation and ITC  e/PFM/Statistics  Dev./Trade   /Security  Amount              190.3               28.8  75.9                      3.0                        16.5                 31.8                           18.3                418.2          43.0        825.8  AfDB/ADF Period  2012‐18      2,018.0  2014‐2016 2015‐16 2015‐18 2015;2018 2011‐18 2015‐18 2011‐17 Amount            25.3  22.5           31.2                    79.0             BADEA Period 2012‐18 2012‐17 2015‐17 Amount                0.2  40.8             40.7             6.1                    87.7             ECOWAS Period 2016‐18 2013‐15 2015‐17 2016‐17 Amount           216.1            104.7         185.6  36.7                                106.6                  45.3                            41.2                142.8           52.0         931.0  EU Period 2010‐19 2015‐18 2011‐17 2011‐17 2015‐18 2011‐16 2010‐16 2011‐16 2013‐16 Amount           134.8         134.8  IFAD Period 2012‐21 Amount      182.7         182.7  Global  Fund Period 2015‐17 Amount 20.0                           19.4           14.2  7.6                                             51.9                325.2           54.5         492.8  Islamic DB Period 2015‐18 2014‐18 2015‐16 2016‐17 2012‐17 2015‐18 2015‐18 Amount 58.1                                       16.3                    0.2                              0.6                     4.3  81.8             2.3             WAEMU Period 2012‐16 2015‐18 2015 2016 2012‐16 2012‐15 Amount 18.8                            6.2                211.4             4.8         241.2  West Af DB Period 2012‐16 2012‐18 2012‐17 2015 Amount 19.9                           37.9  85.8                           21.0                              6.8         171.4  UN Agencies Period 2012‐17 2015‐17 2015‐18 2013‐18 2015‐16 Amount            14.3         699.5                  59.9                781.3           98.8      1,653.8  China Period 2012‐18 2014‐18 2013‐18 2010‐18 2015‐17 Amount           148.4  127.1                     12.5                            58.3                204.0  164.4         714.8          France Period 2012‐18 2012‐18 2012‐16 2012‐15 2014‐18 2013‐17 Amount 27.6                35.0             7.4             Germany Period 2012‐18 2013‐16 Amount                4.6                     9.7  14.3             India Period 2015 2015 Amount           406.4               1.7  4.1                  16.0                              6.0                                               48.3             2.0         484.5  Japan Period 2014‐18 2015‐17 2016 2013‐17 2013‐18 2013‐17 2015 Amount 20.4                             36.9            57.3  Kuwait Period 2015‐17 2015‐18 Amount              8.0  24.4                    32.4             Saudia Arabia Period 2015‐16 2015‐17 Amount                2.0       272.2  205.8                                             35.6           20.0         535.6  Other Period 2015‐17 2010‐18 2011‐.. 2015‐17 2015‐16 TOTAL 1,247.1          367.2                   967.2       607.1                       151.1                 226.1                           337.0              2,248.1  517.3          6,668.2       108 Annex 7: WBG Indicative Lending and Financing Program The World Bank Group Support Areas of Engagement (in US$ million) FY16 FY17 FY18 Focus Area 1: Accelerating sustainable private sector-led growth IDA · Urban Development for Competitiveness and Inclusive Growth 50 · Infrastructure Renewal (Additional Financing) 60 · Land Tenure 30 · Universal Rural Access to Electricity 90 · Governance and Financial Sector Development 30 -Technical Assistance Transport 30 IFC Energy Generation 50 200 350 Transmission 200 Agribusiness Cocoa 20 30 50 Cashew 40 40 75 Infrastructure (non-energy) Logistics (e.g. storage) 40 50 50 Transport 150 250 MIGA · MIGA Azito Phase 3 power plant 800 · MIGA Foxtrot gas platform Focus Area 2: Building human capital for inclusive and sustainable growth IDA · Tertiary Education and Skills 50 · Universal Access to Basic Education 50 · Universal Access to Water and Sanitation 50 - Africa Centers of Excellence 10 Focus Area 3: Strengthening public financial management and accountability IDA · Programmatic DPO series 100 100 100 · Governance/PFM support - · Regional DPO (Trade Facilitation and 50 50 Competitiveness) Total Amount Indicative (US$ million) IDA 360 260 180 IFC 370 550 850 MIGA (current exposure) 800 109 Annex 8: IDA Indicative Knowledge Services Program, FY16-FY18 FY16 FY17 FY18 Focus Area 1: Accelerating sustainable private sector-led growth  Finance Sector Dialogue TA  Eco-Tourism Development Policy Note  Financial Inclusion  Infrastructure Competitiveness and PPPs  ICT Dialogue  ICT Dialogue  ICT Dialogue  SME Capacity Building in Agri-Business  SME Capacity Building in Agri-Business  SME Capacity Building in Agri-Business  Support to Business Climate and Investment Promotion  Support to Business Climate and  Support to Business Climate and Investment Promotion  West Africa Coastal Areas Management Investment Promotion  West Africa Coastal Areas Management  West Africa Coastal Areas Management Focus Area 2: Building human capital for inclusive and sustainable growth  Universal Health Coverage TA  Universal Health Coverage TA  Towards Quality Education for All  Costing of Nutrition programs TA  Towards Quality Education for All  Jobs agenda  Towards Quality Education for All  Jobs Agenda  PERs in Health and Education sectors  Higher Education Governance, Finance and Capacity Building Focus Area 3: Strengthening public financial management and accountability  Support PFM reforms TA  Support PFM reforms TA  Parliamentary Capacity Building TA  Statistical Capacity Building  Dev of eProcurement Strategy & eMonitoring  Poverty Monitoring  Poverty Monitoring 110 Annex 9: Regional Synergies in Economic Infrastructure 1. CIV is expected to be at the center of electricity trade within the West African Power Pool (WAPP). It is already interconnected to Mali, Burkina and Ghana (and indirectly to Togo & Benin). These countries are keen to import more power from Côte d’Ivoire. WAPP is expanding the high-voltage network eastwards to Liberia, Sierra Leone & Guinea under an IDA-funded project. As a result, the volume of power traded in the sub-region is expected to rise substantially by 2018. 2. Connectivity through ICT is relatively developed vis-à-vis regional peers. Mobile phone coverage is above the average for the Economic Community of West African States zone (ECOWAS)—95 percent against 78 percent. However, according to the United Nations E-Government Survey 2014, CIV is currently 171st (out of 193 countries) in the world, near the average of ECOWAS countries, but significantly behind Ghana (123rd) and Sri Lanka (74th). Mobile broadband is also relatively low with only about 6.8 % penetration (end 2013), which is on par with Senegal and Nigeria, but significantly lower than Ghana (28.2 per 100 inhabitants) and Sri Lanka (15 per 100 inhabitants). CPF interventions will integrate ICT sector development to support regional connectivity and trade facilitation. 3. CIV has one of the most developed infrastructure networks in the West Africa region, although this advantage has been eroded in the past decade due to lack of maintenance and new investment. This network is composed of domestic and regional roads serving the nationally centered economy cities, as well as global connectors that are international gateways, linking the country to the international market. The country’s economy is serviced by five corridors, linked to international corridors. The northern corridor connects Abidjan with Ouagadougou through a road and rail link that passes through Bouake (the country’s second-largest city), Korhogo (the capital of the Northern region with nearly 200,000 inhabitants), and Ferkessedougou (a secondary city). Eastward, Côte d’Ivoire is connected to Lagos, Nigeria, via a road running through three capital cities in West Africa (Accra in Ghana, Lomé in Togo, and Cotonou in Benin). Another eastward connection to Ghana (via Kumasi and Tamale) runs through Adzope, Abengourou, and Bondoukou. Abidjan is connected to Nzerekore in Guinea via a road through Yamoussoukro, Daloa, and Man, each of which has more than 150,000 inhabitants and is in a region rich in agriculture, minerals, or tourism. Another westward connection to Monrovia in Liberia goes through Grand Lahou, Sassandra, San Pédro, and Tabou along the Gulf of Guinea. 4. WBG Programs are being developed to support regional integration and promote competitiveness across the networks described in the preceding paragraph. Technical assistance designed to assist in the professionalization of the transport industry and mitigation of adverse impacts of investment, is envisaged in connection with a recently approved regional DPO with Burkina Faso. This operation will also include improvement of logistics services through investments and measures to improve transparency in the transport services market and reduce container delivery prices. In addition, CIV is making progress on improving regional infrastructure through WBG-supported regional operations, including the Abidjan – Lagos Corridor Trade Facilitation Project, Abidjan–Ouagadougou Corridor, the West Africa Regional Telecommunication Infrastructure Project (WARCIP), and the West Africa Regional Power Pool Project (WAAP). The CPF will provide both technical and financial support to 111 develop further regional synergies in these critical sectors, and will further support reforms designed to catalyze new flagship operations that can leverage PPP and other innovative financing mechanisms. Specifically, CPF interventions will support integrated infrastructure and logistics (transport, energy, industrial zones, etc.) around three major growth centers (Greater Abidjan, San Pedro-Man, and Bouake-Korhogo). The WBG will therefore support Government efforts to strengthen distribution systems through funding mechanisms yet to be determined. An IFC-sponsored regional integration project is also addressing trade facilitation challenges on the same Abidjan-Ouagadougou corridor. 112 Annex 10: Selected Indicators of Bank Portfolio Performance and Management CAS Annex B3 - Cote d'Ivoire IBRD/IDA Program Summary As of Date 07/27/2015 Proposed IBRD/IDA Base-Case Lending Program ͣ Strategic Implementation Fiscal year Proj ID US$(M) Rewards b b Risks (H/M/L) (H/M/L) FY16 CI - Poverty Reduction Support Credit 3 100.0 Result 100.0 FY17 CI-Inclusive Urban Growth and Competitiv 50.0 Governance and Financial Sector Dvpt 50.0 Infrastructure Renewal and Urban Managt. 70.0 Local Governance and Territorial Develo 20.0 Result 190.0 Total 290.0 113 CAS Annex B3 Cote d'Ivoire: IFC Investment Operations Program As of Date 07/27/2015 FY12 FY13 FY14 FY15 FY16 Original Commitments (US$m) IFC and Participants 42.20 155.84 343.61 48.13 0.00 IFC's Own Accounts Only 42.20 155.84 274.61 48.13 0.00 Original Commitments by Sector (%) - IFC Accounts only FY12 FY13 FY14 FY15 FY16 OIL, GAS AND MINING 28.56 0.81 0.00 2.41 0.00 FINANCE & INSURANCE 63.85 6.22 48.10 97.59 0.00 ELECTRIC POWER 0.00 83.42 51.90 0.00 0.00 TRANSPORTATION AND W 0.00 4.49 0.00 0.00 0.00 AGRICULTURE AND FORE 7.58 0.00 0.00 0.00 0.00 ACCOMMODATION & TOUR 0.00 5.05 0.00 0.00 0.00 Total 99.99 99.99 100 100 0 Original Commitments by Investment Instrument (%) - IFC Accounts only FY12 FY13 FY14 FY15 FY16 EQUITY 36.15 0.81 0.00 2.41 0.00 GUARANTEE 63.85 6.22 29.89 91.87 0.00 LOAN 0.00 89.76 66.47 5.51 0.00 RISK PRODUCT 0.00 3.21 3.64 0.21 0.00 Total 100 100 100 100 0 * Data as of JULY 27, 2015 114 Annex 11: Operations Portfolio (IBRD/IDA and Grants) 115 Annex 12: Statement of IFC’s Held and Disbursed Portfolio B8 (IFC) For Cote d'Ivoire Committed and Disbursed Outstanding Investment Portfolio As of 06/30/2015 (In USD Millions) Committed Disbursed Outstanding **Quasi **Quasi FY Approval Company Loan Equity Equity *GT/RM Participant Loan Equity Equity *GT/RM Participant FY10 ADVANS CI 0.00 0.85 0.00 0.00 0.00 0.00 0.85 0.00 0.00 0.00 FY14 ADVANS CI 2.22 0.00 0.00 0.00 0.00 2.22 0.00 0.00 0.00 0.00 FY15 ADVANS CI 0.00 0.00 0.00 0.10 0.00 0.00 0.00 0.00 0.05 0.00 FY12 AZITO 60.00 0.00 0.00 6.24 0.00 54.40 0.00 0.00 6.24 0.00 FY13 CHL SA ABIDJAN 6.71 0.00 0.00 0.00 0.00 4.47 0.00 0.00 0.00 0.00 FY14 CIPREL IV 0.00 0.00 0.00 10.00 55.92 0.00 0.00 0.00 0.00 25.91 FY13 IAS 2.73 0.00 0.00 0.00 0.00 2.73 0.00 0.00 0.00 0.00 FY88 IPS (IVC) 0.00 0.83 0.00 0.00 0.00 0.00 0.83 0.00 0.00 0.00 FY12 RIALTO 0.00 1.11 0.00 0.00 0.00 0.00 1.11 0.00 0.00 0.00 FY12 SAMA RESOURCES 0.00 1.30 0.00 0.00 0.00 0.00 1.30 0.00 0.00 0.00 FY15 SAMA RESOURCES 0.00 0.94 0.00 0.00 0.00 0.00 0.34 0.00 0.00 0.00 FY12 SIPRA 0.00 2.75 0.00 0.00 0.00 0.00 2.75 0.00 0.00 0.00 FY14 SIR CI 50.00 0.00 0.00 50.00 0.00 0.00 0.00 0.00 0.00 0.00 Total Portfolio: 121.66 7.78 0.00 66.34 55.92 63.82 7.18 0.00 6.29 25.91 116 117