Document of The World Bank Group FOR OFFICIAL USE ONLY Report No. 95443-NE INTERNATIONAL DEVELOPMENT ASSOCIATION INTERNATIONAL FINANCE CORPORATION AND MULTILATERAL INVESTMENT GUARANTEE AGENCY PERFORMANCE AND LEARNING REVIEW OF THE COUNTRY PARTNERSHIP STRATEGY FOR THE REPUBLIC OF NIGER FOR THE PERIOD FY13-FY16 May 29, 2015 International Development Association The International Finance Corporation The Multilateral Investment Guarantee Agency Africa Region 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. IDA IFC MIGA Vice President: Makhtar Diop Jean Philippe Prosper Keiko Honda Director: Paul Noumba Um Saran Kebet-Koulibaly Ravi Vish Manager: Nestor Coffi (Team Lead) Ronke-Amoni Ogunsulire Nabil Fawaz The date of the last Country Partnership Strategy was April 30, 2013 ii    Fiscal Year: January 1 – December 31 CURRENCY EQUIVALENTS (Exchange Rate Effective April 30, 2015) Currency Unit CFAF 1000 = US$1.70 CFAF 587 = US$1 SDR 1.00 = US$1.40 ABBREVIATIONS AND ACRONYMS AAA Analytical and Advisory Assistance AfDB African Development Bank AQIM Al Qaida in the Islamic Maghreb AU African Union BOT Build-Operate-Transfer CAS Country Assistance Strategy CEB Chief Executives Board CPS Country Partnership Strategy CSO Civil Society Organisation CILSS Comité Permanent Inter-Etats de Lutte contre la Sécheresse dans le Sahel (Permanent Interstate Committee for Drought Control in the Sahel) DPO Development Policy Operation ECOWAS Economic Community of West African States EITI Extractive Industries Transparency Initiative EU European Union FSDS Financial Sector Development Strategy GAC Governance and Anti-Corruption GDP Gross Domestic Product HIV-AIDS Human Immunodeficiency Virus/Acquired Immune Deficiency Syndrome IDA International Development Association INS Institut National de la Statistique (National Institute of Statistics) IP Implementation Progress IRM Immediate Response Mechanism MDGs Millennium Development Goals MIGA Multilateral Investment Guarantee Agency NGO Non-Governmental Organization ODA Official Development Assistance OECD Organization for Economic Co-operation and Development OHADA Organisation pour l'Harmonisation en Afrique du Droit des Affaires (Organization for the Harmonization of African Business Law) iii    PEFA Public Expenditure and Financial Accountability PEMFAR Public Expenditure Management and Financial Accountability PDES Plan for Economic and Social Development PLR Performance and Learning Review PPA Project Preparation Advance PRODEX Projet de Développement des Exportations et des Marchés Agro-Sylvo-Pastoraux (Agro-Sylvo Pastoral Exports and Markets Development Project) SLM Sustainable Land Management SDI Service Delivery Indicators STI Sexually Transmitted Infection SMEs Small and Medium Entreprises TVET Technical and Vocational Education and Training TFP Technical and Financial Partner UNDP United Nations Development Programme UNFPA United Nations Population Fund WAEMU West African Economic and Monetary Union WBG World Bank Group Acknowledgements The PLR was prepared under the guidance of Paul Noumba Um, the Country Director. The core team was led by Nestor Coffi, Country Manager and included Paola Ridolfi, Jaime Mayaki, Sebastien Dessus, Paul Martin, Emanuela Di Gropello, Ruxandra Costache, Jonas Tago Ayeri, Hamsatou Barke, and Micheline Faucompré. World Bank Group Team members made significant contributions including Siaka Bakayoko, Mohamed Nanzoul, Abdoulahi Garba, Mahaman Sani, Ibrah Sanoussi, Djibrilla Karamoko, Adama Ouedraogo, Andre Zombre, Josue Akre, Amadou Ba, Taibou Maiga, Bougadare Kone, Jean-Christophe Maur, Kirsten Majgaard, Dahlia Lotayef, Yeyande Sangho, Soulemane Fofana, Michel Mallberg, Carlo Del Ninno, Magueye Dia, Jean-Baptiste Migraine, Aguiratou Savadogo-Tinto, Matar Fall, Catherine Tovey, Fatou Fadika, Michel Noel, Manuel Luengo, Pedro Sanchez, Clemencia Torres De Mastle, Franklin Gbedey, Hadidia Djimba, Ibrahim Barmou, Amina Bertho, Zeinabou Hassane, Philippe Wright, Denise Tari, Ibrahima Maman, Yves Duvivier, Ramatou Magagi, Lawrence Bouton, R. Sudharshan Canagarajah, Irina Astrakhan, Alexander E. Bakalian. The IFC team was led by Ronke-Amoni Ogunsulire and Conor Healey from MIGA. The PLR benefited from discussions with the Development Partners, the Government of Niger and consultations with the general public.    iv    Performance and Learning Review of the Country Partnership Strategy For The Republic of Niger TABLE OF CONTENTS I. INTRODUCTION…....................................................................................... 1 II. MAIN CHANGES IN COUNTRY CONTEXT…………………………... 1 III. SUMMARY OF PROGRAM IMPLEMENTATION……………………... 3 IV. EMERGING LESSONS ………………………………………………… 8 V. ADJUSTMENTS TO COUNTRY PARTNERSHIP STRATEGY………... 10 VI. RISKS TO CPS PROGRAM……………………………………………… 14     Table Table 1: Proposed Pipeline………………………………………………………… 13 Annexes Annex 1: Updated CPS Results ………………………………………………….. 15 Annex 2: Matrix of Changes to Original CPS Results Matrix……………………… 20 Annex 3: Matrix Summarizing Progress Toward CPS Pillars …………………….. 26 Annex 4: Update on Program Deliverables……………………………………….... 32 Annex 5: Outcomes of the PLR Consultations and Survey…………………………. 35 v    PERFORMANCE AND LEARNING REVIEW OF COUNTRY PARTNERSHIP STRATEGY FOR THE REPUBLIC OF NIGER I. Introduction 1. This Performance and Learning Review (PLR) aims to assess the implementation of the World Bank Group’s (WBG) Country Partnership Strategy (CPS) for Niger covering FY13 to FY16 and adjust it to changes in the country context. The joint IDA/IFC/MIGA CPS was discussed by the Board of Executive Directors on April 30, 2013. It recognizes that increasing per-capita incomes is the central challenge for Niger to reduce poverty. In line with Niger’s 2012 Plan for Social and Economic Development (PDES) and the WBG’s twin goals, the CPS focuses the WBG support on key programs aiming at accelerating economic growth and reducing volatility, in combination with reforms that will ensure inclusive growth. The strategic pillars of the CPS are assisting Niger (i) achieve resilient growth, (ii) reduce vulnerability and (iii) mainstreaming gender and strengthening governance and capacity for public service delivery. 2. Niger has recently been affected by two negative developments: (i) slower than anticipated growth rate coupled with increased fiscal deficit and (ii) growing security attacks associated with terrorist groups in the Sahel region. These developments should lead to some adjustments of the WBG activities in the country. Still, in this challenging context, the Government’s programs supported by the WBG have relatively positive outcomes so far, except in the areas of investment climate and transparency of sector budget allocation. The performance of the WBG portfolio is sound. In order to achieve greater impact, the focus is now on building capacity and improving procedures to unlock implementation issues. II. Main Changes in Country Context A. Change in Poverty and Shared Prosperity 3. Poverty levels remain relatively high in Niger. Some analytical work1 was conducted on the three household consumption surveys of 2005, 2008 and 2011 to address methodological issues of comparability, and led to significant revisions in the estimate of recent poverty trends. The poverty rate declined from 54% of the population in 2005 to 48% in 2011, which is a more modest drop compared to initial surveys indicating a decline from 65% to 48% over the same period. Accordingly, the number of poor between 2005 and 2011 increased from 6.7 million to 8.0 million, larger than initially estimated. Such a revision could require adjusting poverty reduction forecasts over the remaining part of the CPS period, should such a trend be confirmed by the next survey data. It is worth noting that no comprehensive household consumption survey was carried out since the adoption of the CPS in 2013. 4. GDP growth over the period 2005-11 can be considered pro-poor according to international standards, which is positive in light of relatively high poverty levels. This achievement, mainly driven by the high contributions of agricultural and informal sectors in total GDP growth, could nonetheless be lessened in the future with the emergence of a larger extractive                                                              1  World Bank (2004): Republic of Niger: Trends in Poverty, Inequality and Growth, 2005-11, Report# 89837-NE, Africa Region, Washington, DC  1   industry sector. Increased dependence on extractive revenues could make the budget and public investment in particular more vulnerable to price and production changes; and larger demand for non-tradable good and services fuelled by growing revenues could affect external price competitiveness. In the face of such risks, the introduction of stabilization mechanisms and improved investment management considered under the new DPO series would constitute powerful responses. B. Key macroeconomic and Debt Situation 5. 2013 GDP growth estimated at 4.1 % is lower than 6.2 % initially projected in the CPS. Low average rainfall and insecurity affecting the production of uranium offset the increase of revenues generated from the production of oil, estimated at 12,000 barrels/day. In 2014, economic growth accelerated to 6.5%, with the rebound in agriculture and the large public investment projects. As highlighted in the CPS, economic growth will continue to be highly dependent on climatic conditions and large-scale investment projects in extractive industries, as well as on security conditions. 6. The outcomes of the ongoing military intervention against Boko Haram at the South- Eastern border with Nigeria are yet to be known, as are their social and economic impacts. However, preliminary estimates suggest that the fiscal impact in terms of additional security expenditure and the need to host refugees could cost 1 % of GDP on an annual basis, crowding out equivalent resources to finance public investments. A swift and successful military intervention will undoubtedly positively affect the country in the medium to long run. 7. From a macroeconomic perspective, risks of disruption through growing external or fiscal imbalances continue to be moderate, given the protection and related fiscal policy obligations provided by the West African Economic and Monetary Union (WAEMU). Yet, debt sustainability risks, still considered moderate by end-2014,2 will continue to require close attention, given the rapid increase in external public debt (from 23% of GDP in 2013 to 33% in 2014) to finance projects in extractive industries, in a context of declining uranium and oil prices. Such a rate is projected to peak at 37% in 2018 before declining as projects are completed. Given such exposure, the quality of debt and public investment management will continue to have an important bearing on debt and fiscal sustainability. C. Emerging Country/Development Issues 8. Insecurity remains persistent in the Sahel and poses huge development challenges to Niger. Boko Haram’ s attacks and Al-Qaeda in the Islamic Maghreb (AQIM) threats from Mali and Southern Libya have intensified despite the deployment of the Barkhane Operations led by France in a coalition with G5 Sahel countries, including Niger. After years of operating almost without opposition, Boko Haram now faces a direct attack since its February 2015 attempts to take over Diffa and Bosso in Niger where over 100,000 Internally Displaced Peoples have been reported. As part of the AU-backed coalition to defeat Boko Haram, Niger sent 750 troops in mid-February 2015 to join forces with Chadian troops to wage a pre-emptive war on the Nigeria borders by trying to                                                              2World Bank and International Monetary Fund (2014), Republic of Niger: Debt Sustainability Analysis, December, Washington D.C. 2   block escape routes. Boko Haram responded with a string of suicide-bombings and attacks which have claimed the lives of hundreds and disrupted the fragile economy of the Eastern region of Niger. 9. G5 Sahel countries3 including Niger, have adopted a Priority Investment Program of about US$14 billion to promote security, governance, infrastructure and resilience in the Sahel. The Bank Group is committed to support regional security-development challenges through the Sahel Initiative launched in November 2013 during the joint visit of President Kim with UN Secretary General and other heads of regional institutions. 10. Though Niger has entered a period of relative stability following the presidential elections of 2011, the political climate has changed since President Issoufou’s attempts to form a Government of National Unity in August 2013. The then Speaker of the Parliament left the ruling coalition to join the opposition in September 2013 which caused a series of polarized parliamentarian debates during 2014. The election of a new Speaker who is a dissident member of the opposition also heightened the rift and contributed to increased confusion in the political sphere. 11. The social context is increasingly marked by the political divide, repeated strikes, and social unrest4. In view of the general elections planned in 2016, major political parties are regrouping their support base across the country and adjusting their executive committees taking into account the evolution of the political landscape. 12. However, the ability of the Government of Niger to actually deliver on its initial ambitious development program (PDES) has to be recognized. In spite of all the major risks anticipated in the CPS, notably insecurity, the country has had the capacity to implement and most notably invest a significant part of its resources in an effective way. In comparison with its neighbors, Niger has been able to maintain a solid track record by achieving one of the highest investment to GDP ratios in the WAEMU which demonstrates its strong fiscal efforts to stay on course on longer and sustained development in spite of immediate urgent needs caused by recurrent crisis. III. Summary of Program Implementation A. Portfolio performance issues 13. The size of portfolio has significantly increased over the FY13-14 period and performance is satisfactory although some key systemic challenges remain. The portfolio, which comprises 13 national and 3 regional projects, has substantially increased from an overall commitment5 of US$770 million in FY12 to US$1.1 billion in FY14 reaching an unprecedented commitment in the 50-year partnership between the Bank Group and Niger. Total annual disbursements also increased from US$120 million in FY12 to US$300 million in March 2015. The IDA 16 allocation for Niger stood at SDR 326.1 million while the IDA 17 allocation now stands at SDR 421.1 million.                                                              3 Burkina Faso, Chad, Mali, Mauritania and Niger. 4 On the heels of Charlie Hebdo's representation of Prophet Mahomet in France, extremist muslims expressed their anger against what has been perceived as a blasphemy by provoking violent anti-christian protests. These riots broke out in the cities of Zinder and Niamey on January 16th and 17th, 2014 and resulted in the burning of 70 churches and at least 10 casualties. 5 Including regional IDA 3   14. The portfolio’s distribution reflects the country’s priorities highlighted in the PDES. It includes agriculture and environment (27 %), infrastructure (transport and energy – 18 %), water, sanitation and flood protection (20 %), social protection, health, and education (20 %) and finally budget support, governance and public financial management (15 %). 15. Portfolio performance is strong overall. The implementation progress for two-thirds of the portfolio is rated satisfactory. The progress towards achieving the Development Objectives (DO) is rated as moderately satisfactory (MS) for five projects, among which the Capacity for Service Delivery project – which has recently met its effectiveness conditions and the Disaster and Risk Management project for which implementation was launched in September 2014. Considered as part of the regional component of the portfolio, the Kandadji Growth Pole is the only project which has recorded a Moderately Unsatisfactory (MU) rating, specifically on the Implementation Progress (IP). The DPO approved in March 2014 was disbursed in July 2014. No exits were recorded in FY14. 16. While the DO ratings are on track, the portfolio faces a higher number of IP issues which mostly derive from a poor use of Project Preparation Advances (PPA) affecting the readiness of the project presented to the Board. Projects only use PPA at a late stage in preparation. In addition, the ratification process of financing agreements is lengthy - 31 steps in total- and punctuated by a number of steps that are out of the control of the Bank Group and involve coordination between several departments of the Government and the parliament. The Bank is actively working in collaboration with the authorities under the new DPO series to substantially streamline the ratification process by reducing the number of procedures and steps including the issuance of Legal Opinions in line with the Constitution. 17. As stated in the CPS, one of the issues is the capacity constraint at all levels of the public sector. Weak capacity and lack of coordination within the Cabinet constrain the pace of implementation of donor-supported programs. Pervasive capacity deficits at all levels of the public administration lie at the heart of Niger’s absorptive capacity challenge, impacting negatively the disbursement ratio of the portfolio. Still the overall disbursement ratio of the portfolio has increased from 14.2% in FY13 to 17.6% in FY14. The FY15 disbursement ratio is projected to reach 20 % by June 2015, close to the regional average. Such a performance is still remarkable particularly as the portfolio is only about 2.2 years old. 18. Monthly disbursement meetings are held with project coordination teams and the Ministry of Planning in addition to an internal weekly portfolio monitoring. The Bank team is also encouraging early restructurings and funds reallocation to reflect changes in government priorities. The adoption of the Immediate Response Mechanism (IRM) which enables the use of Contingent Emergency Response Components (CERC) throughout the portfolio is an effective tool to tackle emergency situations such as food and livestock crises, refugees and floods, which adversely affect Niger’s budget execution. With the support of the US$40 million Capacity for Service Delivery Project (CSDP), the government should be able to tackle the weak horizontal capacities which hamper the achievement of results in key economic and social sectors in Niger. At the sectoral level, CSDP will help improve the capacity in the core areas of planning, budget management, procurement and monitoring and evaluation (including through new innovative 4   education and health Service Delivery Indicators – SDI- surveys). This should support the efficient implementation of national development programs and have a positive impact on service delivery and development outcomes. 19. MIGA has an ongoing exposure of $4.7 million in the country, supporting the import verification and scanning project of the company Cotecna Inspection S.A. in the services sector. MIGA has actively engaged with the government and the investor to assist the parties in resolving points of contention that might potentially give rise to a claim. MIGA expects the issues to be amicably resolved. The fact that MIGA has engaged with the government or investors does not necessarily indicate that a claim is imminent. Outside of this project, MIGA is still active in the country and is looking to support additional investments under its traditional covers of Transfer Restriction, Expropriation, Breach of Contract and War and Civil Disturbance. 20. While IFC’s direct investment portfolio in Niger is relatively small (~US$1.6 million), a number of IFC Advisory programs are well underway across industries. IFC is advising GoN in the implementation of the Dry Port project, IFC has launched the Pilot Program for Climate Change (PPCR), which seeks to increase private sector investments in Niger to manage climate risks. IFC is exploring improved irrigation systems and climate resilient seeds with a potential sponsor, Netafim. Finally, IFC is also supporting access to financial services for the SMEs and low income populations, and has also launched the Africa Leasing Facility II program in Niger which aims to support Government institutions and SMEs in all matters related to leasing law, tax and regulatory frameworks. Knowledge Services 21. The knowledge services have increased to help inform the reforms under the PDES. All analytical works planned under the CPS have been delivered or are well under way for the period under review as detailed in Annex 2. Among others, the Agricultural Sector Risk Assessment will inform the formulation of a new Agriculture Climate Smart Support Project of about US$111 million under consideration. The Use of Country Systems Analysis, the Extended GAC Review and the Governance Action Plan have helped provide key information on the cross-cutting foundation strengthening governance by identifying the GAC risks at entry and their internal management, but also provided solutions on issues related to the fiduciary, implementation and institutional arrangements and social accountability. A Social Protection Policy Paper has been instrumental in supporting stronger donor and government coordination around a Niger social protection system. Finally, a first-ever Fiduciary and Public Expenditures Review on the Security Sector and a Gender Perception Review were delivered to the government in 2014 and were well received. B. Evolution of Partnerships and Leveraging 22. The WBG is committed to keep up its coordination leading role within the Donors Group together with UNDP and France under a new coordination framework adopted in early 2014. The WBG played a pivotal role in the joint reviews of the PDES implementation. Over the period, the Bank Group also extended its leadership by actively participating in various Donors meetings such as the G5 Sahel Conference WAEMU/ECOWAS/CILSS conference on the Sahel, 5   Investors Forum, and sector fora e.g Kandadji Donors Round-table, Social Protection and Population conferences. 23. Coordinated interventions are developed to bring greater synergy in supporting Government efforts. Major examples include: the Kandadji Growth Pole Program where the Bank’s financing leverages three times the contributions of 11 donors totaling US$1 billion; Global Partnership for Education Trust Funds supervised by the Bank Group leverages US$16 million from AFD/France through the Pooled Fund mechanism totaling US$100 million to which more partners are expected to contribute; annual Development Policy Operations built on a joint reform framework agreed upon and monitored together with AfDB, EU and France; Private Sector Development project leverages US$25 million from Denmark through a DANIDA Trust Fund administered by the Bank; the risk-based policy program promoted by the WBG and supported by many donors is been considered as the foundation to drive multi-donors support to 3N Initiative6; and the development of a national Capacity Building Program supported by the WBG and many donors. 24. Going forward, the WBG will strive to step up its technical leadership and leverage further financial support to the government efforts to deliver public services in agriculture, education, health and population while strengthening capacity and governance. Partnership and leveraging also gained higher visibility with the visit of President Kim in November 2013 where collaboration with UN, AfDB and EU was magnified at the highest level both within the Bank Group and with the authorities of Niger. The Bank Group teams continue to collaborate with UN colleagues in Niamey and Washington D.C under the Chief Executives Board (CEB) monitoring framework to step up ongoing support to accelerate the implementation of programs to help Niger reach MDG1. C. Overview Of Progress Toward Achieving CPS Objectives By Main Focus Areas 25. Current progress toward achieving CPS objectives is on track in all but two areas, investment climate and transparency of sector budget allocations. Annex 3 records evidence of progress against each objective and indicator set in 2013. Nine out of eleven outcomes are on track for achievement by the end of the CPS period while two are off-track and would need substantial efforts to reverse the trend. Some indicators have been revisited to better measure progress towards corresponding objectives as highlighted in Annex 2. Pillar One: Promoting Resilient Growth 26. Overall progress in promoting resilient growth is positive. Progress for three out of the four objectives set under this pillar is on track. The results of the preliminary assessment conducted by the team suggest that a consolidated fiscal performance is on track. The latter is demonstrated by the improvement of the tax and customs collections ratio (as a percentage of GDP) and the treasury and debt management ratio. Agricultural productivity is steadily increasing for rice (18 %), millet (38 %) and sorghum (126 %) in selected areas. Economic infrastructure to facilitate trade is also improving with the establishment of the Dry Port Authority, the rehabilitation                                                              6  Nigeriens Nourish Nigeriens Initiative aims to boost by 45 % the agriculture and livestock productivity to reduce the  occurrence of food insecurity and famine  6   of Maradi central market and the ongoing rehabilitation of 300 km of roads to connect rural production centers to urban markets. 27. Investment climate and access to finance are slower than anticipated. Despite substantial efforts, Niger slipped on the Doing Business (DB) 2015 Report for falling short in fully implementing the bold action plan adopted in 2014 for improving the business environment. GoN has started implementing some reforms - mainly in the area of business start-up and trading across borders - but started doing so late and therefore not all the work was captured in the DB report. It is likely that this will impact Niger’s DB performance this year (2015). On the other hand the average number of new companies registered slightly rose from 2,094 in 2012 to 2,154 in 2014. Even though no notable increase of SMEs loan portfolio has been recorded as the matching grant program is yet to start, a Financial Sector Development Strategy (FSDS) was adopted in late December 2014 and based on its recommendation a National Financial Inclusion Strategy was produced. Pillar Two: Reducing Vulnerability 28. Progress in reducing vulnerability is also on track for three objectives. Access of poor and food insecure people to safety net programs increased by 45 %. Climate resilience policies and actions are also increasingly adopted to create the conditions for sustainable development: 5619 ha of additional agricultural areas, 1,154 ha of additional sylvo-pastoral areas are now managed under improved Sustainable Land Management (SLM) while 12 local development plans are climate resilient proved. Access to water, sanitation, and health and population services is well on track. 444,000 additional people have access to clean water; 20,910 students have access to sanitation facilities; 4,598 sex workers have been screened at health facilities and 2,226 treated for Sexual Transmitted Infections (STI). 29. Improvement of the education and employment skills for youth is mixed, with more expected to be delivered in 2015. The primary completion rate has already increased to 56.4 % above the 55 % target although the support from Global Partnership for Education is just starting and will undoubtedly help improve the completion rate further in the remaining CPS period. No results in terms of the completion rate are yet recorded on dual apprenticeship over the period as the enrollments of students under the employment skills program started recently, but the first cohort of students is expected to complete their apprenticeship by end of 2015. Cross-cutting Foundation: Mainstreaming Gender and Strengthening Governance and Capacity for Public Service Delivery 30. Progress toward mainstreaming gender and strengthening governance and capacity for public service delivery is positive, and yet too timid to make a notable difference. Budget execution and efficiency is improving with the budget execution ratio increased to 77 % while competitive bidding ratio is slightly above 75 %. Transparency in the mining and oil sectors is maintained with the regular publication of the EITI Reports every 2 years; the 2012 report was published in December 2014. Yet transparency of sector budget allocations is off-track with still only one budgetary document published based on the open budget initiative classification. 7   31. The findings of the recent PLR Client Survey7 concur with the team’s assessment of the progress towards achieving the CPS objectives. Respondents shared the view that the strategic development priorities remain valid with an increased interest in public sector governance, education, agriculture, rural development and food security. Stakeholders value the WBG for its financial resources; and investment lending is seen as the most effective instrument in the WBG’s work. Capacity development is considered very important across all stakeholder groups. Overall effectiveness ratings is moderately satisfactory. While the WBG’s support under the Reducing Vulnerability pillar received relatively higher ratings, the WBG’s effectiveness in Governance was rated around the mid-point of the 10-point scale. The lowest ratings in the survey were related to the WBG’s work on Gender. IV. Emerging Lessons A. Main Lessons from Portfolio and Program Implementation and Performance 32. Out of the Country Portfolio Performance Reviews, the Joint Reviews of the PDES implementation, the ISRs, and the findings of the consultations and PLR survey, the following five main lessons can be drawn by mid-term implementation of the CPS. 33. Security problems have impacted the full-scale deployment of World Bank supervision missions and will determine the way the Bank conducts its business, particularly in areas where social and economic investments are critically needed. Security issues hamper implementation of projects, disrupt economic activities and disrupt service delivery. Hence, in order to reach security affected areas, the WBG will tap third parties, CSO, NGO as Monitoring Agents to help monitor the effective implementation of projects. 34. Insufficient readiness of new lending operations before Board approval results in protracted effectiveness and implementation delays. On average, 5.5 months elapse between Board approval and effectiveness due to delay in meeting the technical, institutional and legal conditions. As for technical conditions a better use of PPA would help appoint key staff and fix any technical conditions before Board presentation. 35. With a significant increase of regional projects in the country program, several key opportunities arise, notably the: (i) ability to leverage larger concessional financing, (ii) ability to tackle root causes of insecurity, by promoting opportunities to dis-enclave border lands which are typically poorer, more insecure, and receive large influx of refugees (iii) increasing overall opportunities for landlocked countries/the region as a whole, by increasing visibility to address systemic issues, and potential to collectively reduce risks and maximize benefits through complementary and coordinated investments. 36. Weak coordination within the Government causes DPO-led reforms and large multi- sector programs to have mixed impact. Although specific budget provisions are generally available to help carry out sector reforms, poor intra-government collaboration continues to pose systemic challenges to implementing the DPO supported reforms by the line ministries. In addition ring-fenced PIUs have been able to deliver single sector type investments but prove inefficient in                                                              7 World Bank (2015): Niger PLR Survey FY2015, Report of Findings, March 2015, Washington. 8   implementing multi-sector programs which now form the bulk of the portfolio. To foster effective delivery, WBG will continue to encourage greater coordination at the central level to reduce the increasing fragmentation and transaction costs while using country systems. The latter will be spurred in part by the new Capacity for Service Delivery project as well as the reforms carried under the DPO platform to help mitigate the challenges encountered. In addition, by combining these two vehicles with a continued high level dialogue with the authorities on this sensitive issue, expectations are that the silos that persist between political lines within the current coalition Cabinet will be substantially reduced. 37. Despite the ongoing efforts to consolidate the WBG Program, there continues to be – in part because of the program’s current fragmentation - a perception gap on governance and gender as indicated by the findings of the PLR client survey. Greater efforts to reach out to the audience outside the government and to increase the visibility of the WBG interventions are needed in the dissemination of WBG contributions on governance, gender and capacity building. B. Lessons from experience in other countries/Regions applicable to this country 38. There are relevant lessons to be drawn from WBG engagement in other countries and regions facing similar challenges of security, aid dependency and absorptive capacity and regions for the benefit of Niger. 39. South Sudan offers relevant lessons with regard to the need to incorporate vulnerability to security issues by putting risk management at the core of Bank interventions. For Niger this can be extended to disaster risk management and monitoring of shocks linked to climate change. Continuously monitoring the impact of different stresses, and incorporating risk management mechanisms in the design of all individual operations will continue to be further reflected in the design of new operations and in the coordination mechanisms with other partners. 40. Pakistan offers a relevant example of the need to adapt to a rapidly changing political and security environment and highlights the need for flexibility in designing country programs and in adapting implementation mechanisms as circumstances evolve. Similar lessons can be drawn also from such diverse programs as Afghanistan and South Sudan with respect to the need to carefully assess government’s capacity in the context of a rapid increase in donor resources, as has been the case in both countries thanks to large Multi-Donor Trust Funds, IDA and other partners’ resources. Upfront institution and capacity building, including strengthening internal coordination within government, is necessary to foster absorptive and execution capacity. 41. The experience of Mozambique shows how stimulating agricultural productivity is a long term proposition that requires strong government coordination, commitment, and a clear vision of how productivity is to be achieved. A broad set of policy and institutional reforms, including politically sensitive reforms involving land policy and administration, as well as significant institution building in key agencies is necessary to improve agricultural productivity in a way that can contribute to growth. 9   V. Adjustments to Country Partnership Strategy 42. The overall strategic framework built on two main pillars - promoting resilient growth and reducing vulnerabilities- and its overreaching cross-cutting foundation to mainstreaming gender and strengthening governance and capacity for public service delivery remains valid and relevant. The PLR client survey and consultations held with the government and the DPs confirmed as well the WBG team’s conclusions with respect to moderate adjustments to the CPS. No drastic adjustment is envisaged, but the strategy would still be adjusted for the WBG to respond readily and effectively to more recent government demands. A Systemic Country Diagnostics (SCD) will be conducted in FY16 to inform the formulation of the next Country Partnership Framework (CPF). Specific outcomes under each pillar remain relevant, subject to changes detailed below. Pillar One: Promoting Resilient Growth 43. The WBG will shift away from the telecom sector and the initially planned West Africa Regional Communications Infrastructure Project (WARCIP) following little interest from the Government of Niger which opted to tap other sources of funding. A sector assessment by the Bank concluded that Niger could be a candidate to participate in the regional WARCIP program but later the government fell short in meeting universal access condition. The PPA approved to advance the preparation of the lending was thus cancelled as well as the projected lending. 44. In contrast, the Bank Group’s support to develop new economic infrastructure has reached a key milestone. The signing of a 20 years Build-Operate-Transfer (BOT) concession between the Government of Niger and a strategic operator selected with the advisory support of IFC offers a unique opportunity to develop the Dry Port of Dosso in view of better integrating Niger economy with the Benin corridor. The WBG will further pursue this effort by exploring opportunities in infrastructure by expanding the technical assistance to the ongoing regional railways program if circumstances allow. The indicators and milestones related to this outcome have been changed to reflect these developments. 45. On the financial access front, the WBG will provide technical assistance for the implementation of the Financial Sector Development Program (FSDP), which is based on the outcome of the Financial Sector Development Strategy and the National Financial Inclusion Strategy. Specifically, the three pillars of the FSDP technical assistance will aim to (i) Increase financial inclusion of the population; (ii) Develop access to affordable housing finance and (iii) Develop access to agricultural finance (as part of Climate Smart Agriculture Project). 46. The government has requested the WBG’s support in the energy sector8 to follow up the positive sector review completed in 2012. In response the Bank Group is considering a mix of two interventions: (i) the new series of DPO will support critical energy sector reforms, including the development and adoption of an energy sector strategy and master plan, setting up a regulatory agency and preparing a new electricity code to create appropriate conditions for sector                                                              8 The Niger CPS FY13-16 suggested to consider such an option at the Mid-term review as recommended by the Completion Report of the previous CAS 2008-11. 10   development; (ii) an investment lending will help improve access to power in poor and selected rural areas. Technical assistance by the World Bank Group is supporting the capacity development of the Ministry of Energy and relevant stakeholders to review the current electricity tariff to ensure the overall financial viability and affordability of the energy sector. The rationale for the Bank’s intervention is twofold: firstly, the need to develop additional sources of generation to meet the increasing demand and thereby help remove what otherwise would become a roadblock to economic growth. Secondly, the need to increase access to electricity for the people in Niger which is currently below 10 %. Pillar Two: Reducing Vulnerability 47. In the context of increasing insecurity in the Sahel exacerbated by demographic and unemployment challenges, the WBG is stepping up its support to security-development programs promoted by the G5 Sahel Group. A wide range of regional programs complementing national-IDA funded programs are launched under the Bank Group Sahel Initiative which include Niger as a participating country to promote pastoralism, address socially deep-rooted demographic challenges and provide opportunities to empower women and girls, fight malaria and tropical neglected diseases and strengthen preparedness and build resilience against disasters and climatic shocks. Scaling up of the Girls’ Initiatives program piloted by UNFPA and promotion of income- generating activities for women coupled with family planning control and demographic services will be key to curb the gender gap while reducing vulnerability. 48. In the same vein, consolidation of the achievements of the ongoing Safety Net Program and Agriculture Export Program – PRODEX - are under consideration to expand the scope of direct beneficiaries while building the country’s own social protection systems and resilience to food insecurity. The indicators and milestones related to this outcome will be changed to reflect these developments. The active Safety Net project, which started with a limited number of beneficiaries to lay out the foundation of a social protection system, is now scaling up based on the satisfactory performance achieved at the Mid-Term Review. More work is also needed to strengthen a comprehensive social protection strategy and institutionalize it to help coordinate safety net programs with other interventions to improve resilience to economic and natural shocks and support higher levels of human capital (including girls’ education). Niger will also participate in the regional adaptive safety net program to strengthen resilience in the Sahel. Cross-cutting foundation: Mainstreaming gender and strengthening governance and capacity for public service delivery. 49. A new approach to develop and implement the investment program is under consideration by the Government to reflect the recommendations of a regional study on the bottlenecks to execute investment and capital budget in WAEMU countries. The Government is committed to revisiting the procedures and institutional framework to develop and execute all investment programs irrespective of the source of funding. A new series of reforms to revamp public investment management including PPPs programs will be developed with the support of the WBG’s new DPO series in coordination with other DPs to ultimately improve governance. 11   50. Regarding WBG funded-programs, steady efforts are under way to improve the absorption capacity and improve gender, governance and the disbursement ratio. These include the consolidation of e-disbursement facility to fast track submission of withdrawal applications, better coordination with project teams and close monitoring of procurement plans and execution of large contracts. The newly active Capacity Building project for service delivery will also provide cross cutting support to PIUs and ministries while streamlining the oversight of donor- funded investment projects to accelerate service delivery and improve governance. A new communication approach will be explored to better reach the audience outside of the government to improve the perception gap and ensure adequate visibility of the WBG contributions in addressing the main cross-cutting development challenges experienced in Niger notably on governance, gender and capacity development. 51. Application of the new World Bank procurement policy9 to Niger is expected to result in notable implementation progress. The new risk-based procurement prior review thresholds adopted in December 2014 applicable to Niger will reduce the number of prior review contracts thus accelerating the implementation and execution while ensuring high fiduciary standards.                                                              9 New procurement policy intends to i) focus on value for money for sustainable development; ii) granting increased responsibility to the client; iii) use WBG human resources to better assist the client focusing on high value contracts, contracts at risks and post reviews for all other contracts. 12   52. On the basis of the above, some limited change of the indicators related outcomes is also proposed (Annex 1 and 2). Table 1: Proposed Pipeline Pillar(s) FY 15 FY 16 Original CPS DPO 1 and 3 50 50 Population and Health Support 2 116 Support Agriculture and Food Security Program 1 and 2 116 New PLR Program Prodex – Additional Financing 1 13.8 Public Investment Reform Support Credit10 1 and 3 0 80 Population and Health Support 2 and 3 103 Climate Smart Agriculture Program 1 and 2 111 Electricity Access and Expansion Project 1 and 2 65 Regional11 (New PLR Program) Sahel Women Empowerment and Demographic 2 53,6 Dividend Sahel Pastoralism Support Project 1 and 2 45 Sahel Malaria and Neglected Tropical Diseases 2 37 Sahel Social Adaptive Protection Program 2 TBD Sahel Irrigation Development Program 1 and 2 TBD Overall Total for new PLR Program 252.4 256                                                              10 Public Investment Reform Support Credit initially planned under FY15 will slip into FY16 as the discussions with the authorities are not yet completed. 11 For regional project not yet approved, co-financing from regional IDA depends on project design and resource availability.  13   VI. Risks to CPS Program A. Revised Systematic Operations Risk-Rating Tool Risk Categories Rating (H, S, M or L) 1. Political and governance H 2. Macroeconomic M 3. Sector strategies and policies M 4. Technical design of project or program M 5. Institutional capacity for implementation and sustainability S 6. Fiduciary S 7. Environment and social S 8. Stakeholders M 9. Other (security) H Overall S 53. Overall the risks to the program identified in the original CPS are still valid. Niger is Ebola low risk as long as the contingency plan put in place by the government is properly implemented. Weak implementation capacity in the central administration continues to be a key risk. Even though the Bank is supporting the government’s strategic approach to capacity strengthening and civil service reform, there is an inadequate amount of quality staff to allow for an efficient service delivery. Poor capacity of the private sector continues to delay execution of large infrastructure contracts that affect service delivery and disbursement performance. 54. Security challenges reduce the impact of the Bank’s full-fledged operations in parts of the country where access is limited notably in Northern and Eastern regions of Agadez, Zinder and Diffa where a military intervention is ongoing against Boko Haram. Implementation of WBG-funded projects in such insecure regions will remain challenging and unlikely to be effective. In order to reach security affected areas, the WBG will tap third parties, CSO, NGO as Monitoring Agents to help monitor the effective implementation of projects. 55. The commitment of the government to shift to merit-based selection of cadres for high ranking positions in the administration has waned since the ruling coalition split in August 2013. Instead political patronage systems continue to be perpetuated in the civil service and are unlikely to be reverted as 2016 general elections approach. Moreover the attention of the government may, to an increasing extent, shift away from development programs to political campaigning. Political capture of Bank-financed projects to support a politically-driven agenda could also increase. In response, the recommendations and solutions outlined in the extended GAC Review on the fiduciary and institutional arrangements will be implemented to help mitigate the impact of such risks. Last but not least, entrenched political divide between the ruling coalition and the opposition may disrupt the fragile stability and erode the support base needed to promote policy reforms on key challenges such as demography, gender and governance. Close monitoring of the political economy will be key to take well-informed decisions in mitigating such risks. 56. Safeguard risks are substantial with regard to the regional program of the Kandadji Growth Pole for which over than 40,000 affected people might be resettled. Appointment of a field-based safeguards expert to monitor the resettlement will be essential to mitigate the risk. 14   ANNEX 1: Updated CPS Results Matrix   Country Strategic Objectives  Challenges CPS Outcomes Milestones Program instruments (PDES 2012)    Pillar I.   Promoting Resilient Growth  1.1 Fiscal Performance On-going Financing Weaknesses in consolidated Strategic plans for customs . Competitiveness & Growth Support Project Reduce vulnerability to external revenue administration and tax department (P127204) shocks through a stable and resilient result in an uneven - Efficiency of tax and customs implemented . Third Shared Growth Credit FY14 macroeconomic environment (debt playing field for collections has improved – . Budget support 2014-18 first operation management, revenues collection economic actors increase in PEFA rating of (P151487) etc…) performance indicator 15 from Action plan for the reform Weaknesses in fiscal D+ in 2012 to C in 2015 of debt management Indicative AAA Increase access to finance and debt management developed and implemented . Policy Notes Series on growth & poverty create additional - Treasury and debt . Financial sector development strategy Increase access to finance for SME macro-economic risks management has improved- . Public Expenditure Review -Annual updates and boost private investments increase in PEFA rating of . Policy Notes Series on Growth, Gender, Access to finance is performance indicator 17 from Governance and Trade extremely limited due C in 2012 to B in 2015 . Debt Management Reform Plan TA to several structural constraints Planned Financing 1.2 Improved Investment . Financial Sector Development Program The 2012 Doing Climate and Access to Technical assistance to be funded by trust Business report ranks Finance for SMEs funds Niger 173th out of 183 Line of credits (including countries - Average number of new trade finance facilities) . Agricultural finance component under the enterprises registered per year extended to at least one Climate Smart Agriculture Project The cost and time for increased from 2094 in 2012 additional local bank. starting a business in to 3000 by 2015 (of which 20 Niger remain high, % led by women) Reforms that will increase compared to similar access to financial services countries - SMEs Loan Portfolio for SME developed increased from US$19 million Private enterprises, in 2012 to US$23 million by At least 3 PPPs established particularly Small and 2016 (of which 20% are by 2015 Medium Enterprises received by female-owned (SME) in Niger have SMEs) Action plan for the limited access to improvement of the financial services 15   Country Strategic Objectives  Challenges CPS Outcomes Milestones Program instruments (PDES 2012)    business environment adopted and implemented Investment Climate reforms to modernize the OHADA laws (company law and insolvency law) adopted Ensure food security and sustainable Yields of main 1.3 Increased Agricultural On-going Financing agriculture development agriculture products Productivity of Selected At least 90,000 producers - WAAPP-1C Niger Phase 1 (P122065) are low for all three Crops in Selected Areas have adopted improved - Niger Basin Water Resources Program main crops (millet, agriculture technologies by APL1 & APL2A (P1093806) sorghum, and - Average yield of cereal crops 2015 (including drought - Agro-Pastoral Export Promotion project groundnuts) (millet, sorghum & rice) in resistant varieties (P095210) + FA targeted rain fed areas demonstrated in selected - Second Emergency Food Security Project Low access to increased by 25% by 2015 area) (P123567) improved technologies (Baseline: average yield in - Third Shared Growth Credit (P145251) and agricultural kg/ha in 2008-2012 period: At least 1,500 hectares of - Transport Sector Program SIM (P101434) + services (research, - Millet: 506; additional area provided FA extension, training and - Sorghum: 354, and with irrigation and drainage - Community Action Program CAP 3 advisory services) - Rice: 5500). services and 1,000 hectares (P143079) Limited development of irrigated area of water for rehabilitated by 2015 Planned Financing agriculture (water 600 hectares rehabilitated - Climate Smart Agriculture project scheduled harvesting and versus 1000 ha for FY16 irrigation) - Budget support 2014-18 first operation (P151487) Indicative AAA - Agriculture Risk Management and Inclusive Green Growth TA Increase access to modern Limited geographical 1.4 Improved Selected Trade On-going Financing infrastructures (energy, IT, reach of broadband Infrastructures  Niger Basin Water Resources Program transport, etc…) networks and high APL1 & 2A (P1093806) costs of broadband - “Setting up of Dry Port  Transport Sector Program SIM services Authority” (P101434) Planned Financing Low density of the Energy Access Expansion - FY16 transport networks 16   Country Strategic Objectives  Challenges CPS Outcomes Milestones Program instruments (PDES 2012)    constitutes a major - 300 Kilometers of inter-urban Indicative AAA obstacle to the roads rehabilitated in targeted  Energy Sector TA development of trade areas by 2015 Lack of rail connectivity as an - Rehabilitation of Maradi obstacle to mine Central Market development and livestock trade Pillar II. Reducing Vulnerability Ensure food security Cyclical natural 2.1 Increased Access of Poor On-going Financing disasters, particularly and Food Insecure People to • Niger Safety Net Project (P123399) floods and droughts, Safety Net Programs A management information  Second Emergency Food Security Project which affect food System for the identification  Community Actions Program for security of vulnerable - At least 100,000 additional and registration of Climatic Resilience communities. households with access to the beneficiary households  Niger DRM and Urban Development Severe external shocks safety net programs( the cash established Project (P145268) have resulted in transfer and cash for work  Community Action Program CAP 3 unanticipated programs) by 2015 (P143079) financing needs, Planned Financing including the Libyan • Climate Smart Agriculture project (FY16) and Malian crises Indicative AAA  Security Sector PER  TA on Social Protection for Resilience Create the conditions for sustainable Sustainable land and 2.2 Increased Adoption of On-going Financing development water management Climate Resilience Policies . Community Actions Program for Climatic practices are and Actions in Targeted Resilience CAPCR (P125669) insufficiently Communes . Agro-Pastoral Export Program (P095210) + integrated - At least 2000 ha of additional Climate information FA High dependency on agricultural areas with platform for agricultural . Niger DRM and Urban Development Project rain-fed agriculture improved SLM producers created to (P145268) and livestock - At least 5000 ha of additional improve climate change .CAP 3 (P143079) sylvo-pastoral areas with resilience improved SLM 17   Country Strategic Objectives  Challenges CPS Outcomes Milestones Program instruments (PDES 2012)    Limited infrastructure - Number of Local to manage water Development Plans (LDPs) Planned Financing resources incorporating climatic . Climate Smart Agriculture project (FY16) Disaster risk resilience increased from management and zero in 2012 to 25 by 2015. climatic adaptation are still poorly mainstreamed in development plans Increase access to quality education Too few children 2.3 Improved Education and Education Sector Plan On-going Financing as well as vocational and technical complete basic Employment Skills for completed . GPE - Support to Quality Education Project training education, learning Youth FY15 outcomes are low, Upgrade of TVET . Education Enhancement and Skills females have lower - Primary completion rate institutions in 4 priority Development FY13 (P126049) access increased from 52% in 2012 to sectors launched 60% in 2015 (including girls: Indicative AAA Post-basic education 53%); On-demand technical . Youth Employment and Jobs Study does not respond to training program and dual- . Service Delivery Indicators TA the needs of the labor - Youth who completed dual apprenticeship program set- market and youth does apprenticeship programs up not have the skills for increased from 0 in 2012 to employability 800 in 2015” (with at least 20% of women) Lack of skills is also constraining job creation Promoting social development One third of 2.4 Increased Access to Water, 450 Additional improved On-going Financing population does not Sanitation, Health and community water points . Urban Water and Sanitation Project Extend access to drinking water and have access to Population Services constructed or rehabilitated (P117365) sanitation services improved water by 2015 . Community Action Program CAP 3 resources and more - Number of additional people in (P102354 & P107841) Improve the supply and quality of than 80% without selected urban areas provided 73,000 new piped household . HIV/AIDS Support Project (P116167) health care services for the access to improved with access to improved water water connections . Niger DRM and Urban Development Project population sanitation services sources: 509,000 by 2015 (P145268) 18   Country Strategic Objectives  Challenges CPS Outcomes Milestones Program instruments (PDES 2012)    HIV/AIDS is - Number of additional students At least 2,000 people form concentrated in high- provided with access to the HIV/AIDS risk groups Ongoing TA risk groups (sex sanitation services in their receiving peer education by Water and Sanitation Program TAs (FY12 – workers and partners schools: 60,000 by 2015 2015 FY15) Because of the low Planned Financing level of use of modern - Number of sex workers seen at At least 800 Health . Population and Health Sector Support contraceptives, Niger health facilities after referral by personnel receiving training project – FY15 has one of the highest NGO increased from 0 to 5,000 on Family planning and Indicative AAA fertility rate in the by 2015 Reproductive health issues . Health Country Status Report World (7.1 children - Number of sex workers treated by 2015 . Sahel Demographic study per woman) for Sexual Transmitted Infection (STI) increased from 0 to 500 by 2015. Cross‐cutting.  Mainstreaming Gender and Strengthening Governance and Capacity for Public Service Delivery   Strengthen credibility and efficiency Weak capacity to 3.1 Improved Budget Execution National Capacity On-going Financing of public institutions implement a and Efficiency strengthening Plan adopted . Reform Management TA (P108253) transparent, efficient, - Budget execution ratio of own by 2014 . Competitiveness & Growth Support Project and effective funded expenditures (P127204) framework for public (actual/budget) increased from 75 PFM information system . Support to Cour des Comptes (IDF) resource management % in 2011 to 80 % in 2015 improvement plan adopted . Support to Procurement Office - ARMP Weak link between - Share of public procurement Operational results-based (IDF) strategic policies and contracts awarded through M&E framework . Capacity for Service Delivery Project priorities, and the competitive bidding maintained established at national and (P145261) budget above 75 % key sectors Indicative AAA Careful management 3.2 Improved Transparency of . Public Expenditure Review -Annual updates of revenue from Sector Budget Allocations Performance-based . Gender Assessment mining and oil sectors - Number of budgetary documents budgeting framework . Education and Health Service Delivery TA essential to ensure published based on the ‘Open adopted adequate contribution budget initiative classification)’ Number of high level to Niger’s increased from 1 in 2012 to 2 in officials recruited through development 2015 competitive selection 3.3 Improved Transparency in the Mining and Oil Sector EITI Reports published annually 19   ANNEX 2: Matrix of change to original CPS Results Matrix (Note: Proposed changes are highlighted in relation to the original matrix) Country Strategic  Challenges  CPS Outcomes  Milestones  Program Instruments  Objectives (PDES 2012)  Pillar I.   Promoting Resilient Growth  Improved Investment Climate Planned Financing Reduce vulnerability to Weaknesses in revenue and Access to Finance for SMEs external shocks through a administration result in an - Addition of a Financial Sector stable and resilient uneven playing field for - Average number of new Development Program Technical macroeconomic economic actors enterprises registered per assistance to be funded by trust funds) environment (dept year increased from 2094 in management, revenues Weaknesses in fiscal and 2012 to 3000 by 2015 (of -Addition of an agricultural finance collection etc…) debt management create which 20 % led by women) component under the Climate Smart additional macro- (baseline revised to 2094 instead Agriculture (CSA) scheduled for FY16 Increase access to finance economic risks of 2500 initially estimated for SME and boost private because of implementation delay investments The 2012 Doing Business of Maison de l’Entreprise) report ranks Niger 173th out of 183 countries - SMEs Loan Portfolio increased from US$19 The cost and time for million in 2012 to US$23 starting a business in million by 2016(of which Niger remain high, 20% are received by female- compared to similar owned SMEs) countries (Target and end-date revised, respectively from US$33 million Private enterprises, to US$23 million, and from 2015 particularly Small and to 2016 because of IFC’s new Medium Enterprises projections.) (SME) in Niger have limited access to financial services 20   Increased Agricultural On-going Financing Productivity of Selected Crops - Shared Growth Credit I (P125272) in Selected Areas (closed) - Community Action Program CAP 2 (P102354) (closed) Baseline for Millet is 506 instead Planned Financing of 5061 because of a typo error - Support to Food Security Programs – 3N & Dispositif Nat. – (FY15) (Replaced by the Climate Smart Agriculture (CSA) scheduled for FY16) - WAAPP2 (FY14) (dropped) - CAP 3 (ongoing) Indicative AAA - Regional Railways Program TA (dropped) Ensure food security and Yields of main agriculture Improved Selected Trade PPP framework for Planned Financing sustainable agriculture products are low for all Infrastructures regional for railway  West Africa Regional development three main crops (millet, (outcome turned more specific expansion adopted. Communications Infrastructure sorghum, and groundnuts) (dropped) Program (WARCIP) (dropped) trade-oriented infrastructure) Addition of Energy Access Expansion Low access to improved project (P151362) - FY16 technologies and - Connection of the country to Indicative AAA agricultural services regional fiber backbones  Regional Railways Program TA (research, extension, established (dropped) training and advisory (Indicator has been dropped services) because the government fell Limited development of short in meeting universal water for agriculture access condition. Indicator (water harvesting and replaced by “Setting up of Dry irrigation) Port Authority”) 21   Increase access to modern Limited geographical Additional indicator has been infrastructures (energy, reach of broadband added to reflect the new trade- IT, transport, etc…) networks and high costs of oriented infrastructure outcome: broadband services “Rehabilitation of Maradi Low density of the Central Market” transport networks constitutes a major obstacle to the development of trade Lack of rail connectivity as an obstacle to mine development and livestock trade Pillar II. Reducing Vulnerability Ensure food security Cyclical natural disasters, Increased Access of Poor and On-going Financing particularly floods and Food Insecure People to Safety • PUSA2/GFRP (removed) droughts, which affect Net Programs  Community Action Program CAP food security of 2 (closed) vulnerable communities. Planned Financing Severe external shocks • Niger DRM and Urban have resulted in Development Project – FY14 unanticipated financing (already effective) needs, including the • CAP 3 (cash for work) (already Libyan and Malian crises effective) • Support to Agric. Food Security Programs – 3N & Dispositif Nat.- FY15 (Climate Smart Agriculture project instead, scheduled for FY16) 22   Create the conditions for Sustainable land and water Increased Adoption of Climate On-going Financing sustainable development management practices are Resilience Policies and Actions . Community-Based Disaster Risk    insufficiently integrated in Targeted Communes Reduction Project (included in Niger   High dependency on rain- DRM and Urban Development Project   fed agriculture and (P145268)   livestock Planned Financing   Limited infrastructure to . CAP 3 (P143079) (already effective)   manage water resources . Niger DRM and Urban Development   Disaster risk management Project – FY14 (already effective) and climatic adaptation . Support to Agric. Food Security   are still poorly Programs – 3N & Dispositif Nat.-   mainstreamed in FY15 (Climate Smart Agriculture   development plans project instead, scheduled for FY16) Increase access to quality Too few children Improved Education and Planned Financing education as well as complete basic education, Employment Skills for Youth . Basic Education Support Project vocational and technical learning outcomes are FY13 (P132405) (GPE - Support to training low, females have lower - Primary completion rate Quality Education Project already access increased from 52% in 2012 effective) to 55% in 2015 . Education Enhancement and Skills Post-basic education does - Target updated to reflect the Development FY13 (P126049) not respond to the needs latest development in the (ongoing) of the labor market and sector by increasing the end youth does not have the target from 55% to 60% skills for employability including girls at 53%; - Youth who completed dual Lack of skills is also apprenticeship programs constraining job creation increased from 0 in 2012 by 30% in 2015 (with at least 20% of women) Indicator replaced because of an initial formulation issue by “Youth who completed dual apprenticeship programs increased from 0 in 2012 to 800 in 2015” (with at least 20% of women) 23   Promoting social One third of population Increased Access to Water, 73,000 new piped On-going Financing development does not have access to Sanitation, Health and household water . Community Action Program CAP 2 improved water resources Population services connections and (P102354 &P107841) (closed) Extend access to drinking and more than 80% 30,000 additional . Multi-sector Demographic water and sanitation without access to - Number of additional people latrines constructed Development Project (closed) services improved sanitation in selected urban areas by 2015 (“30,000 services provided with access to additional latrines” Planned Financing Improve the supply and HIV/AIDS is concentrated improved water sources: removed) . Community Action Program CAP 3 quality of health care in high-risk groups (sex 480,000 by 2015 (target of (already effective) services for the population workers and partners 480,000 has been replaced by . Niger DRM and Urban Development Because of the low level 509,000 following the Urban Project – FY14 (already effective) of use of modern Water and Sanitation project’s contraceptives, Niger has restructuring new indicators) one of the highest fertility - Number of additional people rate in the World (7.1 provided with access to children per woman) improved Sanitation in selected urban areas: 235,000 by 2015 Following the Urban Water and Sanitation project’s restructuring, Indicator replaced by “Number of additional students provided with access to sanitation services in their schools: 60,000 by 2015 - Number of sex workers screened for sexually transmitted diseases increased from 0 in 2012 to 5,000 in 2015 Following the 2nd phase HIV/AIDS Support project’s restructuring, Indicator replaced by “Number of sex workers seen at health facilities after referral by NGOs increased from 0 to 5,000 by 2015” - percentage of modern contraceptive use among women increased from 16% in 2012 to 20 % by 2015 24   Following the 2nd phase HIV/AIDS Support project’s restructuring, Indicator replaced by Number of sex workers treated for Sexual Transmitted Infection (STI) increased from 0 to 500 by 2015 Cross-cutting. Mainstreaming Gender and Strengthening Governance and Capacity for Public Service Delivery Strengthen credibility and Weak capacity to Improved Budget Execution Planned Financing efficiency of public implement a transparent, and Efficiency . Support Governance & Capacity institutions efficient, and effective - Budget execution ratio of own Building for Service Delivery framework for public funded expenditures Project – FY14 (already effective) resource management (actual/budget) increased from 75 . Support to PDES Monitoring and Weak link between % in 2011 to 85 % in 2015 Evaluation System –IDF grant strategic policies and Following team’s new evaluation (dropped) priorities, and the budget Indicator replaced by Target ratio Careful management of of own-funded expenditure revenue from mining and increased from 75% to 80% oil sectors essential to Improved Transparency of ensure adequate Sector Budget Allocations contribution to Niger’s Number of budgetary documents development published based on the ‘Open budget initiative classification)’ increased from 1 in 2012 to 6 in 2015 Following team’s assessment, Indicator replaced by Number of published documents increased from 1 to 2 25   ANNEX 3: Matrix summarizing progress toward CPS Pillars Country Strategic  Challenges CPS Outcomes Milestones Program instruments Objectives    (PDES 2012)  Pillar I.   Promoting Resilient Growth    1.1 Fiscal Performance On-going Financing consolidated Strategic plans for customs . Competitiveness & Growth Support Reduce vulnerability to Weaknesses in and tax department Project (P127204) external shocks through a revenue administration - Efficiency of tax and customs implemented . Third Shared Growth Credit FY14 stable and resilient result in an uneven collections has improved – . Budget support 2014-18 first macroeconomic playing field for increase in PEFA rating of operation (P151487) environment (dept economic actors performance indicator 15 from Action plan for the reform management, revenues D+ in 2012 to C in 2015 On of debt management Indicative AAA collection etc…) Weaknesses in fiscal track developed and implemented . Policy Notes Series on growth & and debt management poverty Increase access to finance create additional - Treasury and debt . Financial sector development for SME and boost private macro-economic risks management has improved- Line of credits extended to strategy investments increase in PEFA rating of at least one additional local . Public Expenditure Review -Annual performance indicator 17 from bank. updates The 2012 Doing C in 2012 to B in 2015 On . Policy Notes Series on Growth, Business report ranks track Reforms that will increase Gender, Governance and Trade Niger 173th out of 183 access to financial services . Debt Management Reform Plan TA countries for SME developed 1.2 Improved Investment The GoN has adopted a Planned Financing The cost and time for Climate and Access to strategy on the development . Financial Sector Development starting a business in Finance for SMEs of the financial sector in Program Technical assistance to be Niger remain high, December 2014 and the funded by trust funds compared to similar - Average number of new Bank is currently supporting countries enterprises registered per year the implementation of its . Agricultural finance component increased from 2094 in 2012 action plan. In parallel, a under the Climate Smart Agriculture Private enterprises, to 3000 by 2015 (of which 20 strategy on inclusive finance Project particularly Small and % led by women) 2154 new is set to be adopted. Medium Enterprises companies created per year in At least 3 PPPs established (SME) in Niger have average between 2013 and by 2015 limited access to 2014 According to the PPP Unit, financial services a dozen of PPP agreements are signed to date 26   Country Strategic  Challenges CPS Outcomes Milestones Program instruments Objectives    (PDES 2012)  - SMEs Loan Portfolio Action plan for the increased from US$19 million improvement of the in 2012 to US$33 million by business environment 2015(of which 20% are adopted and implemented received by female-owned An Action Plan has been SMEs) No notable progress; adopted by the GoN and is matching grant is yet to start being currently supported by the Bank Investment Climate reforms to modernize the OHADA laws (company law and insolvency law) adopted The GoN is due to give its comments on the draft text by the end of January 2015 Ensure food security and Yields of main 1.3 Increased Agricultural On-going Financing sustainable agriculture agriculture products Productivity of Selected - WAAPP-1C Niger Phase 1 development are low for all three Crops in Selected Areas At least 90,000 producers (P122065) main crops (millet, have adopted improved - Niger Basin Water Resources sorghum, and - Average yield of cereal crops agriculture technologies by Program APL1 & APL2A groundnuts) (millet, sorghum & rice) in 2015 (including drought (P1093806) targeted rain fed areas resistant varieties - Agro-Pastoral Export Promotion Low access to increased by 25% by 2015 demonstrated in selected project (P095210) + FA improved technologies (Baseline: average yield in area) - Second Emergency Food Security and agricultural kg/ha in 2008-2012 period: At least 1,500 hectares of Project (P123567) services (research, - Millet: 506; additional area provided - Third Shared Growth Credit extension, training and - Sorghum: 354, and with irrigation and drainage (P145251) advisory services) - Rice: 5500). services and 1,000 hectares - Transport Sector Program SIM Limited development Excellent progress reported by of irrigated area (P101434) + FA of water for PUSA 2 and WAPP as follow: rehabilitated by 2015 - Community Action Program CAP 3 agriculture (water - Millet: 700 600 hectares rehabilitated (P143079) harvesting and - Sorghum: 800 versus 1000 ha irrigation) - Rice: 6500 Planned Financing - Climate Smart Agriculture project scheduled for FY16 27   Country Strategic  Challenges CPS Outcomes Milestones Program instruments Objectives    (PDES 2012)  - Budget support 2014-18 first operation (P151487) Indicative AAA - Agriculture Risk Management and Inclusive Green Growth TA Increase access to modern Limited geographical 1.4 Improved Selected On-going Financing infrastructures (energy, IT, reach of broadband Trade Infrastructures  Niger Basin Water Resources transport, etc…) networks and high Program APL1 & 2A costs of broadband - “Setting up of Dry Port (P1093806) services Authority” This indicator has been  Transport Sector Program SIM reached (P101434) Low density of the transport networks - 300 Kilometers of inter-urban Planned Financing constitutes a major roads rehabilitated in targeted Energy Access Expansion - FY16 obstacle to the areas by 2015 development of trade Reasonable progress on this Indicative AAA Lack of rail indicator; major roads are under  Energy Sector TA connectivity as an rehabilitation but works not yet obstacle to mine completed. development and livestock trade - Rehabilitation of Maradi Central Market This indicator has been reached; rehabilitated central market of Maradi was completed in 2013 and inaugurated in 2014. Pillar II.  Reducing Vulnerability  Ensure food security Cyclical natural 2.1 Increased Access of A management information On-going Financing disasters, particularly Poor and Food Insecure System for the identification • Niger Safety Net Project floods and droughts, People to Safety Net and registration of (P123399) which affect food Programs beneficiary households  Second Emergency Food security of vulnerable established Security Project communities. - At least 100,000 additional  Community Actions Program for households with access to the Climatic Resilience 28   Country Strategic  Challenges CPS Outcomes Milestones Program instruments Objectives    (PDES 2012)  Severe external shocks safety net programs( the cash  Niger DRM and Urban have resulted in transfer and cash for work Development Project (P145268) unanticipated programs) by 2015  Community Action Program financing needs, So far, 44,974 additional CAP 3 (P143079) including the Libyan households have access Safety Net Planned Financing and Malian crises program as of December 2014 • Climate Smart Agriculture project (FY16) Indicative AAA  Security Sector PER  TA on Social Protection for Resilience Create the conditions for Sustainable land and 2.2 Increased Adoption of On-going Financing sustainable development water management Climate Resilience . Community Actions Program for practices are Policies and Actions in Climatic Resilience CAPCR insufficiently Targeted Communes (P125669) integrated - At least 2000 ha of additional Climate information . Agro-Pastoral Export Program High dependency on agricultural areas with platform for agricultural (P095210) + FA rain-fed agriculture improved SLM This indicator producers created to . Niger DRM and Urban and livestock now exceeds target;, current improve climate change Development Project (P145268) Limited infrastructure figure stands at 5,619 ha resilience .CAP 3 (P143079) to manage water - At least 5000 ha of additional resources sylvo-pastoral areas with Disaster risk improved SLM This indicator management and is currently standing at 1,154 Planned Financing climatic adaptation are ha . Climate Smart Agriculture project still poorly - Number of Local (FY16) mainstreamed in Development Plans (LDPs) development plans incorporating climatic resilience increased from zero in 2012 to 25 by 2015. Currently there are 12 LDPs Increase access to quality Too few children 2.3 Improved Education Education Sector Plan On-going Financing education as well as complete basic and Employment Skills completed . GPE - Support to Quality Education vocational and technical education, learning for Youth Project FY15 training outcomes are low, - Primary completion rate . Education Enhancement and Skills increased from 52% in 2012 to Development FY13 (P126049) 29   Country Strategic  Challenges CPS Outcomes Milestones Program instruments Objectives    (PDES 2012)  females have lower 55% in 2015; The current Upgrade of TVET access figure stands at 56.4 but this institutions in 4 priority Indicative AAA outcome cannot be attributed sectors launched . Youth Employment and Jobs Study Post-basic education to the GPE project which is . Service Delivery Indicators TA does not respond to effective since December 2014 On-demand technical the needs of the labor only; training program and dual- market and youth does - Youth who completed dual apprenticeship program set- not have the skills for apprenticeship programs up employability increased from 0 in 2012 to 800 in 2015” (with at least Lack of skills is also 20% of women) over 600 constraining job students have enrolled in dual creation apprenticeship but none of them have completed the program so far. Promoting social One third of 2.4 Increased Access to 450 Additional improved On-going Financing development population does not Water, Sanitation, community water points . Urban Water and Sanitation Project have access to Health and Population constructed or rehabilitated (P117365) Extend access to drinking improved water Services by 2015 . Community Action Program CAP 3 water and sanitation resources and more - Number of additional people in (P102354 & P107841) services than 80% without selected urban areas provided 73,000 new piped household . HIV/AIDS Support Project access to improved with access to improved water water connections (P116167) Improve the supply and sanitation services sources: 509,000 by 2015 . Niger DRM and Urban quality of health care HIV/AIDS is Current figure stands at At least 2,000 people form Development Project (P145268) services for the population concentrated in high- 444,000 the HIV/AIDS risk groups risk groups (sex - Number of additional students receiving peer education by workers and partners provided with access to 2015 Ongoing TA Because of the low sanitation services in their Water and Sanitation Program TAs level of use of modern schools: 60,000 by 2015 At least 800 Health (FY12 – FY15) contraceptives, Niger Limited progress: current personnel receiving training Planned Financing has one of the highest figure stands at 24,570 on Family planning and . Population and Health Sector fertility rate in the - Number of sex workers seen at Reproductive health issues Support project – FY15 World (7.1 children health facilities after referral by by 2015 Indicative AAA per woman) NGOs: 3,000 by 2015 Current . Health Country Status Report figure stands at 4,325, way over . Sahel Demographic study the mark 30   Country Strategic  Challenges CPS Outcomes Milestones Program instruments Objectives    (PDES 2012)  - Number of sex workers treated for Sexual Transmitted Infection (STI) increased from 0 to 500 by 2015. Current figure stands at 379 Cross-cutting. Mainstreaming Gender and Strengthening Governance and Capacity for Public Service Delivery Strengthen credibility and Weak capacity to 3.1 Improved Budget Execution National Capacity On-going Financing efficiency of public implement a and Efficiency strengthening Plan adopted . Reform Management TA (P108253) institutions transparent, efficient, - Budget execution ratio of own by 2014 . Competitiveness & Growth Support and effective funded expenditures Project (P127204) framework for public (actual/budget) increased from 75 PFM information system . Support to Cour des Comptes (IDF) resource management % in 2011 to 90 % in 2015 actual improvement plan adopted . Support to Procurement Office - Weak link between ratio for 2014 is 77% Operational results-based ARMP (IDF) strategic policies and - Share of public procurement M&E framework . Capacity for Service Delivery priorities, and the contracts awarded through established at national and Project (P145261) budget competitive bidding maintained key sectors Careful management above 75 % Currently above 75% Performance-based Indicative AAA of revenue from budgeting framework . Public Expenditure Review -Annual mining and oil sectors 3.2 Improved Transparency of adopted updates essential to ensure Sector Budget Allocations Number of high level . Gender Assessment adequate contribution  Number of budgetary officials recruited through . Education and Health Service to Niger’s documents published based on competitive selection Delivery TA development the ‘Open budget initiative classification)’ increased from 1 in 2012 to 6 in 2015 Only one document published so far 3.3 Improved Transparency in the Mining and Oil Sector EITI Reports published annually Reports are published regularly every 2 years since Niger became eligible; 2012 report was published in December 2014 31   ANNEX 4: Update on Program Deliverables (in yellow new items – in red dropped items) Source of Financing  CPS Pillars and Foundation  (US$ million)  Foundation:  Mainstreaming  Operations  Pillar I:  Pillar II:  Gender and  according to   Promotion  Status  Key Knowledge Products12  Reducing  Strengthening  of Resilient  Fiscal Year (FY)  IDA  TF  IFC  Growth  Vulnerability  Governance and  Capacity for Public  Service Delivery  FY13   Local Development (Kandadji) TA Shared Growth Credit II 50 X Approved and disbursed (ongoing)  GAC Strategy & Inst. Develop. TA Community Action X X Approved on May 24th 2013 and effective in (delivered) 40 4.5 Program 3 June 7th 2013  Policy Notes Series13 (delivered) Support to Transport  PEMFAR Update (delivered) X 19.5 Approved and effective since Jan. 14 2014  Advisory on Rural Finances (delivered) Sector - AF  Social Protection Bldg Resilience TA Education Enhancement Approved and effective since October 28th  Gender Assessment I (delivered) 30 X & Skills Development 2014  Debt Management Reform Plan TA Manufacturing, X SFI in identification process of potential (ongoing) 0.5  EITI – Post Compliance TA (delivered) Agribusiness & Services investment opportunities  IFC –PPP/Niger Dry port TA (delivered) Asset Management X 1.6 US$2.4mn committed by IFC and AMC  IFC – Access to Finances – AMSME (in Company – Loan progress) Global Trade Finance X  IFC- Pilot Program for Climate Resilience 4.0 US$4mn credit line approved since FY14 (in progress) Program Sub-Total FY13 139.5 4.5 6.1 First Pt of the Second Phase of the Niger Basin Approved in October 2012 and effective in Water Res. Development 200 (regional) X X March 13th, 2013 and Sustainable Ecosystems Mgt Program Grand Total FY13 350.1 (150.1)                                                              12Planned knowledge products are sequenced in a way to help the preparation of related lending in the following FY 13Policy Notes Series will be demand driven intended to provide real time advice in the CPS focus areas and expand the space of policy options considered in the policy dialogue including Growth, Gender, Governance, Trade  32   Source of Financing  CPS Pillars and Foundation  (US$ million)  Foundation:  Mainstreaming  Operations  Pillar I:  Pillar II:  Gender and  according to   Promotion  Status  Key Knowledge Products12  Reducing  Strengthening  of Resilient  Fiscal Year (FY)  IDA  TF  IFC  Growth  Vulnerability  Governance and  Capacity for Public  Service Delivery  FY14  Approved on march 21st, 2014 and disbursed  Policy Notes Series (delivered) Shared Growth Credit III in July 2014  Debt Management Reform Plan TA 70 (50) X (delivered) Global Partnership for 84.2 Approved on July 7th, 2014 and approved in  Regional Railways Program TA (partially X delivered through PRACC) Education (82.7) December 2014  Security Sector PER and Fiduciary Review Sup to Governance & (delivered) Approved on March 31st, 2014 and effective Capacity for Service 40 (20)  Country Status Report for Health X since Sept. 29th, 2014 Delivery (delivered) Dropped and money reallocated to the  Education and health service delivery TA WARCIP - Regional WA (started in FY15, ongoing) Governance and Capacity for Service Delivery Com. Infrastructure 10  Gender Assessment II (delivered) Project  Agriculture Risk Management and Inclusive Niger DRM and Urban Approved on Dec. 11th , 2013 and effective Green Growth TA (delivered) 100 6.6  Programmatic Study on PFM/Procurement Development Project X since August 15th, 2014 Bottlenecks to Service Delivery (delivered) 90.8 Sub-Total FY14 210 (180) (89.3) Additional financing Approved on May 29, 2014 and effective in Kandadji Growth Pole 55 (regional) X X December 2014 APL 2A Grand Total FY14 356 (269.3) FY15 Additional financing 13.8 (10) X Approved on July 7th, 2014 and effective PRODEX ($10m in November 2014 recouped from WARCIP) Public Investment Reform 0 (50)  Policy Notes Series (ongoing) PIRSC 1 slipped in FY16  PER Update (ongoing) Support Credit I  Sahel Drylands Flagship Report (ongoing) Population and Health 103 (116)  Sahel Demographic Study (ongoing) Approval scheduled on May 2015  Youth Employment and Jobs Study Support (ongoing) 33   Source of Financing  CPS Pillars and Foundation  (US$ million)  Foundation:  Mainstreaming  Operations  Pillar I:  Pillar II:  Gender and  according to   Promotion  Status  Key Knowledge Products12  Reducing  Strengthening  of Resilient  Fiscal Year (FY)  IDA  TF  IFC  Growth  Vulnerability  Governance and  Capacity for Public  Service Delivery  116.8 Sub-Total FY15 (166) Sahel Women Empowerment and 53.6 (regional) X Approved on December 18, 2014 Demographic Dividend Project Regional Sahel Pastoralism Support 45 (regional) X Board scheduled for May, 2015 Project Sahel Malaria and Neglected Tropical 37 (regional) X Board scheduled on June 9, 2015 Diseases Grand Total FY15 252.4 (166) FY16 Public Investment Reform 80 Board scheduled for FY16 Support Credit II Climate Smart Agriculture 111 (116) Board scheduled for FY16 Program Regional DPO to spur TBD Not scheduled - removed transport reforms Electricity Access  Policy Notes Series 65 Board scheduled for FY16 Expansion Project  PEMFAR Update and Monitoring Sahel Social and  Systemic Country Diagnostic Adaptative Protection TBD Program Sahel Irrigation TBD Development Program Sub-Total FY16 256 (166) 1,214.5 90.8 Overall Total 6.1 (751) (89.3) 34   ANNEX 5: Outcomes of the PLR Consultations and Survey Two major series of consultations were held as part of the mid-term review of the strategic partnership framework (CPS) between Niger and the World Bank. The first involved members of Cabinet and took place on January 28th at Hotel Gaweye while the second, involving technical and financial partners (TFPs), took place on the premises of the Resident Mission. The meeting with members of government brought together almost 70 participants and provided an opportunity to put across a number of very strong points:  Water supply: a call was made for more sustained investment in rural water supply and sanitation. The area of rural water supply had been somewhat neglected for a number of years, but a strategy document has now been drafted. The impact in this area is more perceptible than in urban water supply because in economic terms, the terms of trade between farmers and livestock farmers are in favour of livestock farming. More and more people, including women, are getting involved in this promising sector. Where sanitation is concerned, spending on health could be reduced significantly if investments in this sector are increased.  Mines/Industrial development/Trade/Private sector: enhancing intra-governmental Coordination was identified as a necessary step towards effective ownership of the PDES and its implementation.  Population/Demography: because gender is a cross-cutting issue but at the same time one that is often swamped by other concerns in the various sectors, it is difficult to effectively mainstream this issue in project implementation. Under the Population and Health project, the emphasis must be on basic community services and grassroots services and on promoting the use of implants rather than conventional contraceptives. Furthermore, in working with adolescent girls, it is important to adopt an approach that takes account of the fact that a vast majority of them are already married.  Education: including the contingencies component in drafting projects is an excellent way of dealing with repeated risks.  Agriculture/3N Initiative: the strategic priorities remain the same, namely food security, Improving the resilience of production systems and ensuring agricultural growth. Promoting job creation in the agricultural sector can contribute to reducing insecurity generally, in particular for young people. In this regard, the establishment of the Maison du Paysan (Farmers’ centre) has been valuable because it provides an integrated response to all the needs of farmers (inputs, equipment, cereals bank, etc.)  Social safety nets programme: the current approach needs to be strengthened to improve the resilience of the household and communities covered by the Government program.  Ministry of Equipment: It is essential to invest in the road sector, especially focusing on building rural roads, in particular in the so-called sensitive areas, in order to overcome the challenges of insecurity.  Governance: in order to ensure more effective implementation of the PDES to meet its 35   Objectives both leaders and citizen must change their mentalities. Bringing about behaviour change is a vast, but essential undertaking, as has been demonstrated by the unfortunate events in Zinder and Niamey on January 16th and 17th that must draw the attention of all.  Planning/Community development: If real results are to be achieved, the strategy used must be inclusive and not limited to a sector. It is essential to invest in capacity building and programming to enhance project design capacity within ministries. The technical assistance and advisory unit that is expected to be established through the Bank-supported capacity building project is a key means of contributing to this effort.  Kandadji Project: the members of the Cabinet recognize that all of obstacles are internal and not external.  Concluding remarks: o The increasing need for additional resources can only be justified if it translates into tangible results on the ground. Unfortunately the relatively low absorption rate means that we cannot expect the already substantial commitments to be raised significantly. o Projects are now quite sizeable, involving substantial amounts o The issue with project preparation needs to be fixed o Projects need to be consolidated in order to achieve tangible results and reach a greater number of beneficiaries o Implementation of the Kandadji programme needs to be accelerated For its part, the meeting with the TFPs focused on the following key points:  The World Bank should continue to act as a catalyst with government, in particular in the area of methods of intervention, in order to ensure that finances are harmonised;  The strategic importance of security in the Sahel and the need for TFPs to carry out an analysis to take account of the potential economic and social implications for Niger;  Deteriorations in the socio-political landscape since August 2013;  The problem of resource absorption, rather than the volume of such resources;  Lack of a public policy in a number of sectors such as population, energy, etc.  It is important for major donors such as the World Bank and the European Union to be more structured and to keep other TFPs informed about the design and preparation of projects.  The inadequate resources allocated to the education sector, which is one of the obstacles hampering national development.  The importance of taking account of the informal education sector. 73% of girls aged between 15 and 19 years are illiterate; it is essential to reach these girls who are not in the formal sector.  The absence of civil society organisations in many projects; their involvement needs to be increased. 36    The World Bank is requested to play a leadership role in ensuring that the formal framework for consultation on the 3N Initiative is effectively put in place.  The demographic issue, which remains a major challenge in spite of the growing awareness within the region, with the involvement of parliamentarians and traditional chiefs.  The need to speed up the process of overall capacity enhancement through the government’s capacity enhancement programme, PAPMO. Key findings of PLR survey FY2015 The FY’15 Niger PLR Survey findings are worthwhile as a snapshot into the views of a small, targeted group of WBG key counterparts selected by the country team to provide their views on performance of the current WBG program in Niger and its future strategic directions. These findings are useful in combination with the ongoing consultations that the country team has with stakeholders in the government and those outside of government. The PLR Survey is a mid-steam review that allows the country team to identify red flags during the program implementation and respond to them in a timely manner rather than waiting for the full three year cycle of the Country Opinion Survey (COS) Program. When possible, the FY’15 PLR Survey findings are compared to the FY’13 Niger COS findings in the report. As indicated in the Methodology section (see page 3 for details), two levels of stakeholders participated in the PLR Survey: 1) WBG’s key counterparts invited by the country team via email (‘email’ respondents); and 2) broader audience invited to the survey via the WBG website (‘website’ respondents). The body of this report focuses primarily on the ‘email’ respondents. The detailed data across different stakeholder groups can be found in the Appendix. Key findings include: Development priorities: Public sector governance and education are seen as top development priorities for Niger by the ‘email’ respondents. In contrast to the FY’13 COS, food security is also indicated as a top priority, especially by the ‘website’ respondents. This is emphasized by the findings as well that respondents would like to see the WBG’s focus on agriculture and rural development to a greater degree than they did in FY’13. This is potentially a worthwhile area and finding for follow up as it may suggest underlying concern. This year governance and education were also identified as top priorities but education to a much greater degree across all stakeholders. Current program performance: Overall, effectiveness ratings that ‘email’ respondents gave to the WBG program’s strategic directions are not high, including top development priority areas (see pp. 14-16 for details). While the WBG’s support under the Reducing Vulnerability pillar (with sectoral focus on water, health, education, safety nets) received relatively higher ratings, the WBG’s effectiveness in Governance was rated around the mid-point of the 10-point scale, and the lowest ratings in the survey were related to the WBG’s work on Gender. WBG instruments: Stakeholders value the WBG for its financial resources, and investment lending is seen as the most effective instrument in the WBG’s work. Capacity development is considered very important instrument across all stakeholder groups, and a third of ‘email’ respondents believe that the WBG should increase the level of capacity development in Niger to 37   make itself of greater value in the future. It is worth noting that nearly 40% of WBG’s key counterparts and 50% of respondents from broader audience reported that the WBG does not act sufficiently to help the poorest in Niger. 38   39