Document of The World Bank FOR OFFICIAL USE ONLY Report No. 109882-AFR INTERNATIONAL DEVELOPMENT ASSOCIATION PROGRAM DOCUMENT FOR PROPOSED CREDITS IN THE AMOUNT OF EURO 45.7 MILLION (SDR 36.4 MILLION EQUIVALENT) TO BURKINA FASO AND IN THE AMOUNT OF EURO 45.7 MILLION (SDR 36.4 MILLION EQUIVALENT) TO THE REPUBLIC OF CÔTE D’IVOIRE FOR THE SECOND REGIONAL TRADE FACILITATION AND COMPETITIVENESS DEVELOPMENT POLICY OPERATION November 14, 2016 Trade and Competitiveness Global Practice 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 authorization. BURKINA FASO AND REPUBLIC OF CÔTE D’IVOIRE - GOVERNMENT FISCAL YEAR January 1 – December 31 CURRENCY EQUIVALENTS (Exchange Rate Effective as of 31 October 2016) Currency Unit: CFA Franc (CFAF) US$1.00 = CFAF US$1.00 = EURO 0.91286686 US$1.00 = SDR 0.72788150 ABBREVIATIONS AND ACRONYMS AEO Authorized Economic Operator AfDB African Development Bank BCEAO Banque Centrale des Etats de l’Afrique de l’Ouest (Central Bank of West African States) BSTR Bulletin de Suivi de Transport Routier (Road Transport Monitoring Note) CBC Conseil Burkinabé des Chargeurs (Burkinabe Shippers’ Council) DPO Development Policy Operation DSA Debt Sustainability Analysis DUT Document Unique de Transport (Single Transport Document) ECF Extended Credit Facility ECOWAS Economic Community of West African States EU European Union FDI Foreign Direct Investment FDTR Fonds de Développement du Transport Routier (Road Transport Development Fund) FEDERMAR Fédération Maritime de Côte d`Ivoire (Maritime Federation of Côte d’Ivoire) GDP Gross Domestic Product IDA International Development Association IFC International Finance Corporation IMF International Monetary Fund ISRT Interstate Road Transit OIC Office Ivoirien des Chargeurs (Ivorian Shippers’ Council) PCA Post-Clearance Audit PDO Program Development Objective PFM Public Financial Management PND Plan National de Développement (National Development Plan) PNDES Plan National de Développement Economique et Social (National Economic and Social Development Plan) PSIA Poverty and Social Impact Analysis RTFCC Regional Trade Facilitation and Competitiveness Development Policy Credit SCADD Stratégie pour la Croissance Accélérée et le Développement Durable (Strategy for Accelerated Growth and Sustainable Development) SYLVIE Système de Liaison Virtuelle des Importations et des Exportations (Virtual Linkage System for Imports and Exports) TA Technical Assistance TAC Traité d’Amitié et de Coopération (Friendship and Cooperation Treaty) TIWP Trade Information Web Portal UNCTAD United Nation Conference on Trade and Development WAEMU West African Economic and Monetary Union WCO World Customs Organization WTO World Trade Organization Regional Vice President: Makhtar Diop Country Director: Pierre Laporte Senior Practice Director: Anabel Gonzalez Practice Manager: Rashmi Shankar Task Team Leader/Co-TTL: Jacques Morisset/Jean-Christophe Maur BURKINA FASO AND REPUBLIC OF CÔTE D’IVOIRE SECOND REGIONAL TRADE FACILITATION AND COMPETITIVENESS DEVELOPMENT POLICY OPERATION TABLE OF CONTENTS SUMMARY OF PROPOSED CREDIT AND PROGRAM ...........................................................................................1 1 INTRODUCTION AND COUNTRY CONTEXT (INCLUDING POVERTY DEVELOPMENTS) ...................................1 2 MACROECONOMIC POLICY FRAMEWORK .................................................................................................4 2.1 RECENT ECONOMIC DEVELOPMENTS ......................................................................................................... 4 2.2 MACROECONOMIC OUTLOOK AND DEBT SUSTAINABILITY ...................................................................... 10 2.3 IMF RELATIONS ......................................................................................................................................... 14 3 GOVERNMENTS’ PROGRAMS ................................................................................................................. 14 4 PROPOSED OPERATION ......................................................................................................................... 17 4.1 LINK TO GOVERNMENT PROGRAMS AND OPERATION DESCRIPTION ................................................... 17 4.2 PRIOR ACTIONS, RESULTS, AND ANALYTICAL UNDERPINNINGS ............................................................... 20 4.3 LINK TO CPF, OTHER BANK OPERATIONS, AND THE WORLD BANK GROUP STRATEGY ...................... 32 4.4 CONSULTATIONS AND COLLABORATION WITH DEVELOPMENT PARTNERS ........................................... 33 5 OTHER DESIGN AND APPRAISAL ISSUES.................................................................................................. 34 5.1 POVERTY AND SOCIAL IMPACT ................................................................................................................. 34 5.2 ENVIRONMENTAL ASPECTS........................................................................................................................ 36 5.3 PFM, DISBURSEMENT, AND AUDITING ASPECTS ...................................................................................... 37 5.4 MONITORING, EVALUATION, AND ACCOUNTABILITY............................................................................... 39 6 SUMMARY OF RISKS AND MITIGATION .................................................................................................. 40 ANNEX 1: POLICY AND RESULTS MATRIX........................................................................................................ 42 ANNEX 2: LETTER OF DEVELOPMENT POLICY.................................................................................................. 46 ANNEX 3: FUND RELATIONS ANNEX ............................................................................................................. 149 ANNEX 4: ENVIRONMENT AND POVERTY/SOCIAL ANALYSIS TABLE .............................................................. 152 ANNEX 5: PROPOSED REVISION OF INITIAL RTFCC2 TRIGGERS ...................................................................... 155 7 REFERENCES ........................................................................................................................................ 158 LIST OF TABLES Table 1. Burkina Faso: Selected Economic and Financial Indicators, 2013-2019 ......................................... 6 Table 2. Selected Economic and Financial Indicators in Côte d’Ivoire, 2012–2020...................................... 9 Table 3. Strategic Priorities of the Burkinabe Government for Road Transport ........................................ 15 Table 4. Strategic Priorities of the Ivorian Government for Road Transport ............................................. 16 Table 5. Analytical Underpinnings .............................................................................................................. 20 Table 6. Summary Risk Ratings ................................................................................................................... 40 LIST OF FIGURES Figure 1. RTFCC Objectives and Measures .................................................................................................. 19 The Second Regional Trade Facilitation and Competitiveness Credit (RTFCC2) program was prepared by an IDA team led by Jacques Morisset (TTL and Program Leader, AFCF2) and Jean-Christophe Maur (co- TTL and Sr. Economist, GTC07) under the guidance of Pierre Laporte (Country Director, AFCF2), Cheick Kante (Country Manager, AFMBF), Klaus Tilmes (Director, GTCD2) and Rashmi Shankar (Practice Manager, GTC07). The team consists of Catherine Compaore, Antoine Coste, Hatem Chahbani, Mariam Diop, Enrique Fanta, Ibou Diouf, Olivier Hartmann, Emelyne Kalimoutou, Bienvenue Helène Karambiri, Irene Nnomo Ayinda Mah, Aguiratou Savadogo-Tinto, Andrea Stumpf, Akoua Gertrude Tah, and Issa Thiam. The peer reviewers are Charles Kunaka (Senior Trade Specialist, GTCTC), Souleymane Coulibaly (Program Leader, AFCC1) and Moustafa Baher El-Hefnawy GSG (Lead Transport Economist, GIT03). SUMMARY OF PROPOSED CREDIT AND PROGRAM BURKINA FASO AND REPUBLIC OF CÔTE D’IVOIRE SECOND REGIONAL TRADE FACILITATION AND COMPETITIVENESS DEVELOPMENT POLICY OPERATION Borrowers Governments of Burkina Faso and Côte d’Ivoire Implementing Ministries of Economy and Finance of Burkina Faso and Côte d’Ivoire agencies Financing data Amounts: IDA credits in the amount of Euro 45.7 million (US$50 million and SDR 36.4 million equivalent) to Burkina Faso and Euro 45.7 million (US$50 million and SDR 36.4 million equivalent) to Côte d’Ivoire. Terms: single currency IDA credits in euros, with 38-year maturity, including 6-year grace period for Burkina Faso (regular terms); and 25-year maturity and 5-year grace period for Côte d’Ivoire (blend terms). Operation type Second in a programmatic series of two Development Policy Operations (DPOs); single-tranche disbursement. Program The program development objective (PDO) is to reduce trade transaction costs along the Abidjan- Development Ouagadougou corridor by supporting the implementation of the two countries’ reform programs for the Objective and transport and customs sectors. pillars of the operation Result indicators Baseline Indicators Target (2017) (2015) Number of formally registered transport operators under new BF: 0 BF: 300 criteria for access to the profession CI: 0 CI: 3,000 Proportion of noncompliant trucks controlled at weighing stations BF: 80% BF: 35% CI: 85% CI: 35% Volume of trade in Côte d’Ivoire carried under a consignment note 3.9 million tons 5 million tons Number of transporters and shippers registered on the virtual 0 30 transporters freight exchange in Burkina Faso or trucking companies controlling a cumulated fleet of 150 trucks (whichever is higher) and 25 shippers (2017) Percentage reduction of new vehicle prices under fleet renewal BF: 0% BF:35% mechanism CI: 0% CI: 20% Reduction of container delivery prices in Abidjan compared to initial 0% 25% Fédération Maritime de Côte d`Ivoire (Maritime Federation of Côte d’Ivoire, FEDERMAR) tariff Number of transport operators authorized to deliver containers in 30 50 Abidjan Proportion of transactions routed in customs’ red channel BF: 25% BF: 10% CI: 56% CI: 30% Average transit time between Abidjan and Ouagadougou 140 hours 100 hours Overall risk High rating Climate and No disaster risks Operation ID P158333 1 INTERNATIONAL DEVELOPMENT ASSOCIATION PROGRAM DOCUMENT FOR A PROPOSED SECOND REGIONAL TRADE FACILITATION AND COMPETITIVENESS DEVELOPMENT POLICY OPERATION TO BURKINA FASO AND CÔTE D’IVOIRE 1 INTRODUCTION AND COUNTRY CONTEXT (INCLUDING POVERTY DEVELOPMENTS) 1. This program document proposes the second operation in a programmatic series of two Regional Trade Facilitation and Competitiveness Development Policy Credits (RTFCCs) designed to support the efforts of the Burkinabe and Ivorian Governments to reduce trade and transport costs along the Abidjan-Ouagadougou corridor. This innovative Development Policy Operation (DPO) addresses previously unresolved policy issues by offering a common framework for coordinating reforms in the two countries. The proposed RTFCC2 is a single tranche disbursement of International Development Association (IDA) credits of US$50 million equivalent for each of the two countries, provided on regular IDA terms for Burkina Faso and on blend terms for Côte d’Ivoire. Its objective is to consolidate and broaden the reforms adopted in the first operation, which was approved by the World Bank’s Board in June 2015. These reforms aim at encouraging private sector development in the two countries and facilitating their integration with the regional and global economies. Given the importance of trade for the poor, both to create income opportunities and to reduce the cost of living, this operation is fully consistent with the World Bank’s twin goals of ending extreme poverty and promoting shared prosperity. 2. In recent years, the economic performance of Côte d’Ivoire has been strong, while Burkina Faso’s has remained robust despite political and security uncertainty and several negative shocks since 2014. While Burkina Faso and Côte d’Ivoire largely differ in terms of gross domestic product (GDP) (US$12.5 and US$34.3 billion, respectively) and GDP per capita (US$1,668 and US$3,272 in purchasing power parity), both economies have reported solid economic growth in recent years. In Burkina Faso, the average real growth rate reached 5.5 percent annually between 2005 and 2015, primarily because of a booming mining industry and improved performance of the cotton industry. Although economic expansion declined to approximately 4 percent in 2014 and 2015, the GDP growth rate is expected to rebound to about 5.2 percent in 2016 as the result of a good harvest and improving political stability after the successful presidential elections in November 2015. After a decade of low growth caused by a series of political crises, Côte d’Ivoire’s GDP has expanded by around 9 percent per year since 2012. While the return to normalcy played a role in the Ivorian recovery, sound macroeconomic management and good track record of structural reforms, in areas such as public financial management (PFM) and the investment climate, have supported the recent economic performance. 3. While declining in both countries, poverty has remained prevalent, reaching 40 percent and 46.3 percent of the population, respectively, in Burkina Faso and Côte d’Ivoire. The poverty rate rose steeply in Côte d’Ivoire between 1990 and 2011, as the result of slower growth and political instability, but declined from an estimated 51 percent in 2011 to 46.3 percent in 2014. The recent Poverty Assessment conducted by Côte d’Ivoire shows that poverty is overwhelmingly concentrated in rural areas and in the northern part of the country. Likewise, in Burkina Faso, the poverty level fell by 13 points between 2003 and 2014 but the number of poor increased due to the rapid demographic growth during this period. The ongoing Systematic Country Diagnostic for Burkina Faso indicates that the incidence of poverty is far higher and decreasing more slowly in rural than in urban areas. 1 4. The slow decrease of poverty in both countries can be partly attributed to their difficult business environments, including high trade and transport costs, which hamper structural transformation toward higher value added activities and productive jobs. Economic growth and employment in Burkina Faso and Côte d’Ivoire still largely rely on basic unprocessed agriculture and extractive industries. The available evidence suggests that difficult conditions for economic operators in both countries constitute a major obstacle to increase agricultural productivity and allow the faster emergence of modern industrial and services sectors. In addition to other constraints, such as access to energy and finance, high trade and transport costs are a major concern, including on the main corridor between Abidjan and Ouagadougou. This corridor is expensive, even by African and regional standards1 and reducing transport costs would have large economic positive impacts on the flows of goods, people, and services, not only on, but also beyond the corridor.2 5. Reducing transport prices is not only important to facilitate the much needed structural transformation but also has direct poverty-reducing impacts by promoting better regional integration and improved access to basic goods and services. Notably, lower transport prices and more efficient logistics services for the movement of food staples will enhance food security by preventing the loss of crops during transport, while helping strengthen the competitiveness of traditional exports such as cattle from landlocked countries in the Sahel. Poverty surveys show, for instance, that households in Côte d’Ivoire and Burkina Faso on average allocate 85.8 percent and 75.1 percent, respectively, of their expenditures to purchasing tradable goods, a very large proportion of which are food products, some regionally produced, but also other consumption items such as textile and clothing and household items. Recent estimates have shown that trade costs passed through to higher prices of goods consumed by the poorest have significant potential welfare impacts. Also, high trade and transport costs also contribute to disconnecting rural areas from national, regional, and international markets, making it more difficult for rural inhabitants to sell their products, access economic opportunities in dynamic urban centers, and find goods at reasonable prices. 6. Available research finds that high trade and transport costs in West Africa are the result of a combination of dilapidated transport infrastructure and a number of market distortions. Infrastructure has benefited from the support of the donor community, and notable improvements have been achieved, but indispensable policy reforms that would correct the market distortions and increase the value of such investments in infrastructure have yet to follow. Inadequate regulatory frameworks, shortcomings in their implementation, and established collusive business practices limit effective competition within the trucking industry. This sector is dominated by a large majority of small informal and inefficient transporters, who rely on intermediaries and market organizers to find freight. While this opaque allocation creates sizeable rents, truckers, themselves fragmented for the largest part, only obtain barely break-even rates. Low profitability creates strong incentives for small truckers to resort to short-term survivalist behaviors, including through overloading of trucks beyond the legal axle load limit. 1 A detailed discussion of the costs and other characteristics of the corridor is provided in Annex E of the Program Document for the RTFCC1, Report No. 95668-AFR. 2 A recent study estimated that the reform and modernization of the road transport industry in West Africa would result in net economic benefits for the region in the order of US$400 –500 million per year and could reduce transport prices by 19 percent, allowing an increase of transit trade by about 8 percent (Nathan Associates 2012). The regional trucking industry would gain about US$60 million in net revenue, while shippers, producers and consumers in landlocked countries could gain US$200 million in net economic benefits. While up to 16,000 jobs could be lost in the informal trucking sector, this would be largely compensated by the 150,000 to 650,000 trade- related jobs created. 2 Overloading adversely affects the durability and safety of operations, damages the road network, and discourages containerization. In addition to the market structure, a major problem affecting the profitability of the trucking industry and increasing trade costs is the slow rotation time on the corridor, that is, the small number of roundtrips from Abidjan to Ouagadougou by the average truck. This is the result of a combination of several factors, including delays at the port, difficulty to find backhaul cargo, and cumbersome trade and transit procedures in both coastal and hinterland countries.3 7. The proposed operation supports the ambitious reform programs of the Burkinabe and Ivorian authorities to modernize their trade and transport environment. The complicated political economy characterizing some of these issues and the lack of coordination between countries have in the past hampered progress to modernize these sectors and are partly to blame for the limited implementation of some key regional initiatives adopted at the level of the West African Economic and Monetary Union (WAEMU) and the Economic Community of West African States (ECOWAS). However, Burkina Faso and Côte d’Ivoire, as well as several other countries in the region (for example, Benin, Niger, and Togo), have initiated an ambitious trade and transport reform agenda over the last few years. This renewed reform impetus at the regional level and the demonstrated willingness of the two governments of Burkina Faso and Côte d’Ivoire to address the existing bottlenecks have offered better prospects of implementation. To accompany this positive reform dynamic, the Burkinabe and Ivorian authorities have requested the World Bank’s support through a series of regional DPOs. This series of two RTFCCs has been prepared jointly with the two countries, the first operation of which (RTFCC1) was approved by the Board of Executive Directors on June 16, 2015. The second operation (RTFCC2) aims at deepening the reform process in the areas of (a) professionalization and formalization of the trucking industry, (b) modernization of the trucking market, (c) enhancement of the competitiveness of maritime and inland gateways, (d) improvement of customs clearance, and (e) facilitation of transit. 8. The nature of the policy challenges faced in the trade and transport sector justifies the regional and programmatic approach of this operation. A number of reforms concerning the Abidjan- Ouagadougou corridor require joint or coordinated action by both countries; for instance, regarding the modernization of criteria to access the trucking profession, the control of axle load, or transit procedures. As demonstrated in the context of the first operation, a regional DPO provides a platform to agree on such joint actions, as well as the assurance that they will be implemented simultaneously, as disbursement will only take place after both countries have implemented all prior actions. The complexity and difficult political economy of some major transport sector reforms in both Burkina Faso and Côte d’Ivoire requires the sequencing of ambitious reforms over the medium term. The innovative nature of the operation and political transitions in both countries justified the design of a first series limited to two operations so that the countries and the World Bank can take stock and assess next steps. Meanwhile, the World Bank has prepared two technical assistance (TA) operations to support the implementation of the reforms adopted under the RTFCC series in each country. The combination of budget support together with TA has proved to be the most effective in the region and elsewhere, when the implementation of the reforms require behavioral changes and improved technical capacity. 9. The political situation in both Burkina Faso and Côte d’Ivoire evolved positively in recent months and justifies the cautious optimism approach adopted during the first operation. In Burkina Faso, the election of Roch Kaboré as President of the country in end-November 2015 occurred in a 3 A detailed discussion of the costs and other characteristics of the corridor is provided in Annex E of the Program Document for the RTFCC1, Report No. 95668-AFR. 3 peaceful and transparent manner and was not contested, concluding the transition process initiated after the ouster of the previous regime in October 2014. In Côte d’Ivoire, the peaceful reelection of President Alassane Ouattara in end-October 2015 confirmed the stabilization of the country since the end of the political crisis in 2011 and constituted a strong sign of political continuity. While there have been some political tensions between the two countries in the aftermath of the failed coup attempt in Burkina Faso in September 2015, the Burkinabe and Ivorian authorities have sent several signals that they intend to solve any dispute diplomatically and that cooperation will be intensified between the two countries. The evolution of the political situation in both countries continues to warrant careful monitoring, notably to ensure that the root causes of past grievances are addressed. Overall, the commitment to their reform agenda, notably in the areas of focus of this operation, and the continued collaboration at the technical level suggest that the risk of slippage is limited in both the short and medium terms. 2 MACROECONOMIC POLICY FRAMEWORK 10. The macroeconomic framework of the two countries are deemed appropriate. Côte d’Ivoire and Burkina Faso have benefited in recent years from solid economic growth above the average for Sub- Saharan Africa. Both also have a good track record of maintaining macroeconomic stability, confirmed by the fact that they have been on track under their respective International Monetary Fund (IMF) program. However, Burkina Faso and Côte d’Ivoire are and will continue to be exposed to number of conjectural and structural economic challenges. On the external front, disruptions in the global economy, including declining commodity prices and more difficult access to external financing following the tightening of U.S. monetary policy, will continue to require careful macroeconomic management and strategic planning to take advantage of new opportunities while hedging against risks. Domestically, the limited job creation, even during a period of fairly robust economic growth, underscores the need for further reforms to promote structural transformation and private sector-led job creation. 2.1 RECENT ECONOMIC DEVELOPMENTS Burkina Faso 11. Burkina Faso has reported sustained and robust growth over the past decade although various exogenous and endogenous factors recently slowed the expansion of the economy. Between 2005 and 2013, sound macroeconomic management, combined with favorable prices for cotton and gold and large aid inflows, resulted in strong economic growth, averaging 6 percent per year, driven primarily by agriculture and services, and increasingly by the mining sector. However, growth slowed down in 2014 and 2015 because of worsening global market conditions for gold and cotton, the negative impact of Ebola on tourism and services elsewhere in the region, flat agricultural output, and weakening investor confidence linked to the political uncertainty that existed during the political transition. In 2016, the GDP growth rate is expected to rebound to about 5.2 percent as the result of good agriculture production and improved political stability after the successful presidential elections in November 2015. 12. Burkina Faso’s track record of macroeconomic and fiscal management is strong. In a context of slower economic growth and lower fiscal revenues, as well as declining grants, the authorities have adjusted public spending to keep the overall fiscal deficit in the range of 2 percent of GDP in 2014 and 2015 and maintained it around 3 percent of GDP in 2016 (which is the WAMEU fiscal target). Domestic revenue increased steadily from 12.5 percent of GDP in 2009 to around 19.0 percent in 2013 but declined to 16.2 percent of GDP in 2015, principally as the result of lower value added tax and income 4 tax as well as mining revenues. In 2016, the Government is expected to mobilize as much as 18.5 percent of GDP, reverting to the values reported before the political transition period. On the expenditure side, the authorities adjusted their public investment program and cut their subsidies to the energy sector in 2014 and 2015. Public investment is expected to increase as much as 2.3 percent of GDP in 2016 as result of the improved tax performance and higher externally funded projects. The wage bill, equivalent to 45 percent of total revenues, is higher than the WAEMU target of 35 percent, and has continued to increase in recent years but at a lower rate in 2015 and 2016 compared to 2014. 13. The prudent fiscal policy adopted by the Government also kept the public debt level around 33.1 percent of GDP at the end of 2015, which is low by regional standards. Several fiscal challenges will nonetheless have to be addressed in future years, notably concerning the size of the wage bill and of contingent liabilities in the cotton and energy sectors, budgetary transfers to public enterprises, and internal arrears of payment to small and medium enterprises, as well as the need for transparent and disciplined management of mining resource revenues. 14. Monetary and exchange rate policies remain unchanged, with a fixed CFAF-euro parity and stable interest rates. As of end-December 2015, international reserves are expected to reach 0.9 months of next year imports, compared to only 0.6 months at end-2015, due to improved compliance of commercial banks with foreign exchange requirements. Commercial bank reserves increased fivefold in 2015, reaching about CFAF 130 billion from CFAF 25 billion in 2014. Broad money supply should grow by 13.8 percent in 2016 against 11.3 percent in 2014 and 19.9 percent in 2015, while credit to the private sector increased sharply in 2016 after a slowdown in 2015. Overall, Burkina Faso’s banking sector remains healthy, as most banks are in compliance with regional prudential norms. As the result of the prudent monetary and fiscal policies, as well as lower energy prices, annual inflation remained under control at 1.6 percent in 2016. 15. Trade grew rapidly in Burkina Faso over the past decade, both on the export and import side. Exports boomed between 2009 and 2013, largely owing to the sharp increase in gold exports and, to a lesser extent, to increasing cotton production since 2011, which together account for nearly 85 percent of exports. Import increased because of the strong demand for equipment by the mining industry and of growing public investment. These trends have partially reverted since 2014 due to the sharp decline in commodity prices on international markets. The value of exports is estimated to reach about 22.3 percent of GDP in 2016, up from 21.8 percent in 2015, as the result of higher cotton exports. Concurrently, the level of imports fell by 4.9 percent between 2013 and 2016 due to the slowdown in economic activity, the decrease in oil prices reducing the energy import bill, and lower imports of equipment by large multinational companies in the mining sector. The current account have run deficits in recent years, reaching respectively 6.5 and 5.8 percent of GDP in 2015 and 2016. These deficits have been funded even though foreign direct investment (FDI) inflow decreased from 3.5 percent of GDP in 2013 to 1.9 percent of GDP in 2015. The level of official aid also decreased from 6.1percent of GDP in 2013 to5.0 percent of GDP in 2015 but is expected to bounce back to 5.7 percent of GDP in 2016. 5 Table 1. Burkina Faso: Selected Economic and Financial Indicators, 2013-2019 2013 2014 2015 2016 2017 2018 2019 unless (p) ((p) Annual percentage change, otherwise indicated National income and prices Real GDP 5.7 4.2 3.1 5.2 5.9 6.1 6.2 Per capita GDP (In US$ Atlas Method) 706 708 609 644 683 723 766 Contributions: Consumption 12.5 -3.2 2.7 12.0 14.7 15.9 -- Investment 4.2 3.1 5.3 0.4 -1.8 -3.7 -- Net exports 21.6 -21.1 3.7 13.6 16.3 15.9 -- Imports (f.o.b) 21.3 -9.3 2.0 5.4 13.6 11.5 10.2 Exports (f.o.b) 17.2 3.6 3.1 10.5 13.4 8.3 7.5 GDP deflator -2.1 -0.9 2.8 2.5 2.0 2.0 2.0 Consumer price inflation (eop) 0.1 -0.1 1.3 1.6 2.0 2.0 2.0 Fiscal Accounts Percent of GDP, unless otherwise indicated Expenditures 28.0 23.6 21.9 25.2 27.1 27.2 27.5 Revenues 19.0 17.5 16.2 18.5 19.2 19.7 20.0 General Government Balance, incl. grants -3.6 -1.9 -2.1 -3.0 -3.6 -3.5 -3.5 (commitments) Selected Monetary Accounts Annual percentage change, unless otherwise Broad Money (M3) 11.3 indicated 11.9 19.9 13.8 18.2 15.7 15.0 Credit to the private sector 26.3 18.9 7.0 11.0 13.1 13.9 14.5 Balance of Payments Percent of GDP, unless otherwise indicated Current Account Balance -11.3 -8.1 -6.5 -5.8 -5.3 -5.6 -5.9 Imports (f.o.b) 27.9 24.5 23.6 23.0 24.2 25.0 25.4 Exports (f.o.b) 22.3 22.4 21.8 22.3 23.4 23.4 23.2 Foreign Direct Investment 3.6 2.3 1.9 2.1 2.1 2.1 2.2 Gross Reserves (in billions of USD, eop) 521.0 189.9 196.9 350.2 508.5 684.0 8 In months of next year imports 1.4 0.6 0.6 0.9 1.2 1.5 1.7 Total Public Debt 29.3 30.6 33.1 32.8 33.7 34.2 34.6 External Debt 21.9 22.0 24.2 23.6 22.9 22.8 22.5 Terms of Trade -12.8 -5.5 4.1 8.7 0.4 -1.3 0.2 Other memo items GDP nominal (CFAF billions) 5896 6086 6454 6962 7521 8141 8816 Sources: Burkinabè authorities; and IMF staff estimates and projections. November 2016. 16. While poverty decreased in Burkina Faso by about 13 percentage points between 2003 and 2014, growth needs to be more broad-based especially in rural areas. The share of the population living below the national poverty line decreased from 53 percent in 2003 to about 40 percent in 2014, owing to the combination of rapid economic growth and reduced inequalities, as well as improved access to basic services (mostly heath) and physical assets. The recent growth performance was pro- 6 poor since consumption grew faster for the poorest than for the richest households between 2009 and 2013. However, Burkina Faso remains a poor country, since approximately 7 million people remain in poverty—the same number as in 2003. There are also wide regional as well as urban-rural disparities, as more than 90 percent of the poor live in rural areas. Burkina Faso’s vulnerability to shocks, particularly weather-related disruptions in the agriculture sector, continues to affect the welfare of its people. The 2014 Household Survey reveals that approximately two-thirds of households reported to be hit by a shock every year, explaining, to a large extent, why about 20 percent of the population suffers from chronic poverty and food insecurity. Côte d’Ivoire 17. Côte d’Ivoire has achieved a strong economic recovery in the wake of its recent political crisis, benefiting from a robust aggregate demand and a surge in both private and public investments. After a decline of GDP by 4.7 percent in 2011 caused by the electoral crisis, the return to political stability and the upturn in business and consumer confidence, as well as sustained progress on structural reforms, supported the country’s impressive economic performance. Indeed, economic growth averaged over 9 percent per year between 2012 and 2015. Output growth is expected to remain high at 7.9 percent in 2016, which will be the highest rate achieved by a Sub-Saharan African country. Real GDP per capita is estimated to have increased by more than 20 percent during 2012–2016. This exceptionally strong growth performance was driven by a combination of public and private investment, which generated a boom in the construction sector, as well as by the positive response of agricultural production to improved international prices (most notably cocoa), good weather, and government policies in the development of the cocoa, coffee, rice, and cashew nuts subsectors. The renewed momentum of the private sector was illustrated by the substantial increase of business registrations (from 2,775 in 2013 to 6,487 in 2014 and 9,534 in 2015), the resurgence of FDI, and the growing number of public-private partnerships in priority sectors. These developments reflect the highly positive response of the private sector to the improved business environment and positive prospects for the country as a regional hub. 18. The sustained recovery of growth in the wake of the post-election crisis is starting to have a tangible impact on living standards. The overall poverty rate is estimated to have declined from 48 percent to 46.3 percent between 2008 and 2015, down from the peak of 51 percent in 2011. While this decline remains insufficient, it represents a first step in the right direction after a long-standing fall over the past two decades. Furthermore, the positive dynamics with regard to the provision of better infrastrucure and social services will also lead to a gradual improvement of welfare in the country, including for the poorest segments. Public investment policies have improved access to public services (including rural electrification, clean water distribution, road rehabiliation, construction of 65,000 low- cost housing units, policy of access to education for all, and adoption of a universal health coverage), which has enhanced the inclusiveness of recent growth. As part of its reforms in the cocoa and coffee sectors, the Government has applied a farm-gate floor price equivalent to 60 percent of the export price for cocoa, coffee, cotton, and cashew nuts, which has helped increase the income of more than 1 million farmers and about 6 million household members. The farm-gate price for cocoa rose by 37.9 percent between 2013 and 2016,4 while the farm-gate price for cashew rose by 12.5 percent and cashew production increased by 20 percent during the same period. These recent increases, while dependent on the evolution of international prices, have and will unambiguously contribute to a further decline in the 4 The farm-gate price was initially set at CFAF 725 per kilogram for the 2012–2013 season, and in subsequent years increased to CFAF 750/kg (2013–2014), CFAF 850/kg (2014–2015), and CFAF 1,000/kg (2015–2016). 7 poverty rate observed in rural areas. The Government also increased civil service salaries in 2014 by partially unfreezing the graduated payscale, which had been frozen since 1988, and it delivered on several other wage promises made by the previous regime. 19. Fiscal management has remained sound in recent years. Côte d’Ivoire’s improved fiscal position reflects a sustained increase in revenue collection in a context of tight expenditure controls and a moderate decline in energy subsidies. The overall fiscal deficit (including grants) gradually narrowed from 5.6 percent of GDP in 2011 to 2.9 percent in 2015, partly reflecting a decline in electricity subsidies. However, in 2016, the fiscal deficit is expected to reach 4.0 percent of GDP, following priority security spending linked to the terrorist attacks of Grand Bassam in March 2016. Due to better than expected tax and non-tax revenue collection, total domestic revenue in 2016 rose to 19.1 percent of GDP, compared to 18.8 percent of GDP the previous year. Government expenditure grew as well, driven by high investment in infrastructure, reaching 24.7 percent of GDP from 23.1 percent in 2016. The spending rationalization program started by the authorities in early 2013 helped contain current expenditure, which increased only to 17.3 percent of GDP in 2016, compared to 16.6 percent in 2015. Overall, Côte d’Ivoire’s fiscal stance remains consistent with the authorities’ objective of preserving macroeconomic stability. However, fiscal risks could arise from financial imbalances in the energy sector and borrowing by state-owned enterprises. The Government remains strongly committed to address these potential fiscal risks. 20. The external sector has contributed to the Ivorian economic recovery. Côte d’Ivoire’s terms of trade improved in recent years due to the combined effect of higher cocoa prices, lower oil prices, and the depreciation of the CFA franc in relation to the U.S. dollar. These factors have resulted in an improvement in the current account deficit in 2014 and 2015 compared to historical values. While the current account deficit is expected to remain around 2 percent of GDP, both imports and exports have decreased during the first eight months of 2016. The decline in exports is principally explained by lower exports of agricultural products and oil, due to poor climatic conditions and persistent low international prices. The current account deficit has continued to be financed by FDI and official aid, while international borrowing has declined in 2016. 8 Table 2. Selected Economic and Financial Indicators in Côte d’Ivoire, 201 3–2020 2013 2014 2015 2016 2017 2018 2019 ((p) (p) Annual percentage change, unless otherwise indicated National income and prices Real GDP 9.3 8.8 8.9 7.9 7.9 7.8 7.3 Per capita GDP (In US$ Atlas Method) 1389 1531 1382 1477 1589 1709 1835 Contributions Consumption 12.5 10.0 10.7 11.2 7.2 7.1 -- Investment 37.6 16.0 11.8 8.7 15.8 20.7 -- Net exports 7.8 4.3 11.3 4.4 6.6 6.9 -- Imports (f.o.b) -3.2 0.5 11.4 7.3 14.9 12.3 11.3 Exports (f.o.b) -3.8 7.7 8.0 3.3 12.2 10.8 10.0 GDP deflator 3.4 3.9 1.8 1.0 1.4 1.9 1.9 Consumer price inflation (average) 2.6 0.4 1.2 1.0 1.5 2.0 2.0 Fiscal Accounts Percent of GDP, unless otherwise indicated Expenditures 21.9 21.0 23.1 24.7 24.8 24.8 24.5 Revenues 19.7 18.9 20.2 20.7 21.1 21.4 21.5 General Government Balance, incl. grants -2.2 -2.2 -2.9 -4.0 -3.7 -3.4 -3.0 (payment order basis) Selected Monetary Accounts Annual percentage change, unless otherwise indicated Broad Money (M3) 11.6 16.1 18.8 10.7 14.3 13.1 12.3 Credit to the private sector 22.6 21.7 29.6 14.7 13.4 10.1 11.9 Balance of Payments Percent of GDP, unless otherwise indicated Current Account Balance -1.4 1.4 -1.0 -2.0 -2.5 -2.5 -2.7 Imports (f.o.b) 28.9 25.7 25.9 25.5 26.8 27.4 27.8 Exports (f.o.b) 38.5 36.7 35.7 33.9 34.8 35.1 35.2 Foreign Direct Investment 1.3 1.2 1.3 2.9 3.3 3.5 Gross Reserves (in billions of USD, eop) 1300 1559 1791 1811 2208 2653 3008 In months of next year imports 2.7 2.8 3.0 2.9 3.2 3.4 3.5 Total Public Debt 43.3 44.8 47.8 48.3 47.9 46.4 44.9 External Debt 26.2 26.8 29.8 28.9 28.2 27.4 26.6 Terms of Trade 3.6 6.3 3.8 2.8 0.1 3.1 3.3 Other memo items GDP nominal (CFAF billions) 15449 17461 19368 21102 23069 25344 27736 Source: Ivorian authorities and IMF staff estimates and projections. November 2016. 21. Regional monetary policies have successfully contained inflation in the wake of supply- induced price increases. Côte d’Ivoire’s monetary and exchange rate policies are managed at the regional level by the Banque Centrale des Etats de l’Afrique de l’Ouest (Central Bank of West African States, BCEAO) and by the WAEMU, which maintains a peg between the CFA franc and the euro. This 9 arrangement has served Côte d’Ivoire well, and inflation has remained low, stable, and resilient to global price volatility. Inflation has waned as supply channels reopened after the post-election crisis and related price increases in 2011, and consumer price inflation is below the WAEMU target of 3 percent. In 2016, inflation should be in the range of one percent even though inflationary pressures came from higher food prices during March and June 2016. 22. After a sluggish start in 2011–2012, credit to the private sector strongly grew by almost 30 percent in 2015 but should increase by around 15 percent in 2016. Money supply is expected to increase by 10.7 percent, which is approximately the expansion rate of the economy. The increase in credit to the economy is attributable to medium- and long-term credits (up by 3.0 percent) allocated mainly to businesses, as well as short-term credits granted to businesses and households (up 2.5 percent). This reflects the strengthening of economic activity in the secondary and tertiary sectors and enhanced private sector confidence. The Government has adopted a comprehensive restructuring plan for the banking system, which is expected to lay the groundwork for the sustainable development of the financial sector. 23. Côte d’Ivoire’s debt dynamics and management remains sustainable. After a strong increase in external debt between 2008 and 2011, public external debt was restructured and Côte d’Ivoire reached the Heavily Indebted Poor Countries Initiative completion point in June 2012. As a result, external debt dropped from 55 percent to 31 percent of GDP between 2011 and 2012. Internal debt, however, has continued to grow and the settlement of payment arrears has proven difficult. At end-2016, the stock of domestic and external public debt should be equivalent to 48.3 percent of GDP, far below the WAEMU average of 70 percent. The stock of external public debt only rose from 26.2 percent at end-2013 and to 28.9 percent at end-2016 with debt-service payments remaining on schedule. Debt service fell substantially from 17.2 percent of exports in 2012 to 3.8 percent in 2013, then rose slightly to 4.6 percent and 5.4 percent in 2014 and 2015, respectively. The authorities launched a program to clear domestic arrears and gross domestic debt fell from 16.9 percent in 2012 to 12.7 percent in 2014. It has however increased to 19.48 percent of GDP in 2016, reflecting issuances of government bonds with longer maturities to fund the budget. 2.2 MACROECONOMIC OUTLOOK AND DEBT SUSTAINABILITY 24. The macroeconomic framework appear satisfactory for Burkina Faso and Côte d’Ivoire in both the short and medium terms. These two countries are expected to continue on a positive trajectory of economic expansion because of structural reforms and prudent fiscal as well as monetary policies. The risks are, however, not absent on the domestic and external fronts as discussed in the last section of this program document. Burkina Faso 25. Economic growth is expected to gradually recover following the return to political normalcy and rebound in both public and private investments. Growth is expected to converge gradually toward historical averages, reaching 5.2 percent in 2016, 5.9 percent in 2017, and 6.1 percent in 2018. However, both the economy and public finances will remain highly sensitive to changes in gold and cotton prices. Public investment may continue to be constrained by the underperformance of tax and customs revenues and the weight of the wage bill in total public expenditures. However, the expected improved solid performance of the agriculture and service sectors, supported by the recovery of the mining sector (two new mining sites will start production), will sustain positive economic growth. The combination of 10 favorable cotton output because of implementation of the Input Fund reform, relatively higher productivity in the agricultural sector and relatively good rainfall should help increase production in 2016. 26. The current account balance is expected to remain around 6 percent of GDP in 2016 onwards. Exports value is highly sensitive to projected prices of cotton and gold on international markets, while imports depend largely on energy prices. In 2017 and 2018, higher gold prices, combined with an increase in output due to new mining projects, are expected to sustain a rebound in exports, while cotton exports will be dependent on global demand. The 2016 financing gap is forecasted at 0.3 percent of GDP (CFAF 18.7 billion), which will be covered by IMF disbursements following the completion of the fourth and fifth reviews of the supported program under the current Extended Credit Facility (ECF) arrangement in June 2016. 27. Prudent fiscal policy is expected to contain the fiscal deficit at around 3 percent of GDP, which should be financed without threatening debt sustainability. Over the medium term, total public expenditures should increase because of higher domestic revenue and aid that should help finance a recovery in the public investment program. The level of current expenditures should remain stable in the next two–three years, after the increase in the wage bill in 2015. Pro-poor expenditures will continue to be protected. Moreover, the Government will take measures, with the support of the World Bank, to reduce the operating costs of the public electricity and oil-importing companies, Société Nationale d’Electricité du Burkina (National Electricity Company of Burkina) and Société Nationale Burkinabè d’Hydrocarbures (National Hydrocarbon Company of Burkina), respectively. 28. Burkina Faso is expected to remain at moderate risk of debt distress. This status is unchanged from 2013, and Burkina Faso’s debt indicators in the latest debt sustainability analysis (DSA) updated in May 2015 remain within the parameters of the joint IMF-World Bank Debt Sustainability Framework established in June 2014. Under the baseline scenario, all relevant debt ratios are projected to remain comfortably below indicative thresholds over the projection period despite an overall deterioration in macroeconomic conditions and a stronger dollar relative to the CFA franc (the latter having a mixed impact on DSA indicators). Under the most extreme standardized stress test, the debt-to-exports ratio breaches the debt distress threshold around 2029, which is the basis for the ‘moderate’ assessment. This is based on a prudent medium-term fiscal position and relatively favorable prospects in the mining sector. Côte d’Ivoire 29. Côte d’Ivoire’s growth prospects remain strong, with projected growth rates of 8 percent expected over the medium term. The country’s macroeconomic framework continues to reflect the importance of maintaining fiscal discipline while prioritizing public investment. The 2016 budget calls for a significant expansion in public investment financed by a combination of donor inflows, domestic borrowing, and a moderate increase in tax revenues. The authorities plan to increase the central government’s gross investment from 6.0 percent of GDP in 2014 to about 7.3 percent over the medium term. Assuming that annual GDP growth rates remain at around 7–8 percent, these levels of investment imply that the overall fiscal deficit (including grants) will be maintained around 4 percent of GDP in the near future. Following more than a decade of wage and hiring freeze in the civil service, the Government has now—in line with a medium-term wage strategy approved under the IMF program and consistent with medium-term fiscal sustainability—approved an increase in wages and hiring that will lead to a higher wage bill in nominal terms, but not as a percentage of GDP. 11 12 30. Broad-based and robust economic growth is projected to continue in the medium term. The primary sector will benefit particularly from the continued increases in international cocoa prices, which have risen from US$2,820 to US$3,135 per ton between end-2013 in December 2015 and are projected to continue to increase through 2017, reflecting higher global demand driven by emerging markets. This would provide significant revenues to the Government and substantial income to farmers, especially given the expected positive impact of ongoing structural reforms in the cocoa sector. In addition, the consolidation of political stability is expected to encourage greater private investment, including in sectors such as light manufacturing and agro-processing, telecommunications, and construction. Recent policy measures aimed at further improving the business environment, as well as favorable ratings by international credit rating agencies are expected to boost FDI, in particular in sectors such as agribusiness. Moreover, several sectors which were affected by the crisis, such as manufacturing, construction, transport and trade, have not yet fully recovered from the crisis, suggesting significant potential for further catch-up growth effects. Finally, the depreciation of the CFA franc in relation to the dollar is expected to boost export competitiveness. 31. Current account deficits are projected to remain moderate in the near future. The trade surplus is expected to remain strong at around 8.6 percent of GDP over 2016–2017, on the back of good export performance in cocoa and other products. The current account deficit (excluding grants) is projected to widen slightly to 2.5 percent of GDP in 2016 and 2017, in part due to further deterioration of the services balance and increased interest payments on public debt. This would be more than compensated by an increase of FDI (up to CFAF 603 billion and CFAF 744 billion in 2016 and 2017, respectively, from CFAF 396 billion in 2015), as well as by higher project and other loans. The financing gap of CFAF 70.1 billion in 2016 is projected to be covered mainly through budget support. 32. Côte d’Ivoire’s membership in the CFA zone prevents it from using the exchange rate as a tool to improve competitiveness. Recent IMF estimates of the real exchange rate have shown that it has been on a depreciating trend and is broadly in line with its equilibrium level. In addition, the recent depreciation of the euro has further boosted competitiveness of Côte d’Ivoire’s main export commodities, which are mostly traded in U.S. dollars. 33. The latest DSA, prepared in December 2015, found that Côte d’Ivoire remains at a moderate risk of debt distress. Under the baseline scenario, there are no breaches of the respective policy- dependent thresholds for any of the debt indicators, but the stress tests show that the external debt outlook continues to be vulnerable to adverse macroeconomic shocks. In light of these results, the analysis highlighted the need to (a) carefully monitor the accumulation of external debt (especially non- concessional); avoid an excessive bunching of maturities in the mid-2020s, and take adequate consideration of rollover and foreign exchange risks; (b) consider potential changes and volatility in international financial market conditions for borrowing plans; and (c) promote economic diversification and strengthen revenue mobilization to increase resilience to exogenous shocks. Furthermore, the analysis stressed the importance of implementing key reforms in 2016 as part of the authorities’ ongoing efforts to strengthen debt management and the monitoring of related contingent fiscal risks (for example, restructuring of the public debt department, strengthening of the National Debt Policy Committee, centralized database to monitor public sector’s debt). 13 2.3 IMF RELATIONS 34. Both Burkina Faso and Côte d’Ivoire have performed well under IMF-supported programs and World Bank-financed DPOs. In the case of Burkina Faso, the second and third reviews under the IMF’s ECF were completed by the Fund’s Executive Board on June 5, 2015, and the fourth and fifth reviews on June 10, 2016. In Côte d’Ivoire, the eighth and final review under the ECF arrangement was completed on December 9, 2015. The Ivorian authorities have requested an IMF arrangement to support the 2016– 2020 National Development Plan and Fund staff are preparing a three-year arrangement under the ECF and Extended Fund Facilities that is scheduled to be presented at the IMF Board by mid-December. 35. The World Bank and IMF have collaborated very closely in both countries, notably in coordinating past and ongoing national budget support operations. In parallel to the IMF programs and to the regional DPO, new series of national DPO are under preparation in Burkina Faso and Côte d’Ivoire. The World Bank and IMF staff teams are working in close collaboration in the two countries, with World Bank staff participating in all IMF review missions. World Bank staff provide detailed inputs to the IMF team in all areas where the World Bank is the primary agency (for example, agricultural development, energy, public administrative reform), and IMF staff regularly shares their macroeconomic and financial analyses with World Bank counterparts. 3 GOVERNMENTS’ PROGRAMS 36. Both Burkina Faso and Côte d’Ivoire have adopted and are implementing poverty reduction strategies. Burkina Faso’s program is summarized in its the 2016-2020 National Economic and Social Development Plan (PNDES), which is the successor of the Burkina’s policy framework for 2010-2015, the SCADD. This Plan, which covers the years 2016-20, was formally adopted by the Council of Ministers in July 2016. It aims at an 8.5 percent real GDP growth and a simultaneous decline in the poverty rate to 35 percent by end-2020. The PNDES is based on three strategic axes: (a) economic governance; (b) human capital development; and (c) structural transformation of the economy and private sector development. Côte d’Ivoire’s Plan National de Développement (National Development Plan, PND) for the period 2016– 2020 aims at transforming the country into an emerging market by 2020. The PND highlights the overarching objective to ensure the population’s well-being by reducing poverty and inequality, through structural transformation of the economy. It focuses on (a) quality of institutions and good governance; (b) accelerating the development of human capital and social well-being; (c) accelerating the structural transformation of the economy through industrialization; (d) development of infrastructure harmoniously distributed in the national territory and the preservation of the environment; and (e) strengthening regional integration and international cooperation. 37. In support of their national plans, the Governments of Côte d’Ivoire and Burkina Faso have both prepared comprehensive programs of reform for transport modernization and trade facilitation. Reducing high trade and transport costs remains a key priority of the Burkinabe Government to increase competitiveness and growth. The authorities intend to reach this objective through investment in better infrastructure as well as through reforms enabling the emergence of professional and efficient transport companies. Complementing the overall national development strategy, a revised transport strategy for the period 2011–2025 was adopted by the Government to guide the development of policies enabling profitable investment in the sector and maximizing its contribution to growth and competitiveness 14 (Table 3).5 In Côte d’Ivoire, the Ministry of Transport’s strategy to improve transport and facilitate exchanges along the Abidjan-Ouagadougou corridor incorporates significant policy reforms to modernize the road transport sector (Table 4).6 The common vision of the two countries for the modernization of their transport and trade sectors and of operations along the Abidjan-Ouagadougou corridor over the medium term was spelled out in the joint Letter of Development Policy included in the RTFCC1 Program Document7 and summarized in the Letter of Development Policy of the present RTFCC2 (see Annex 2). Table 3. Strategic Priorities of the Burkinabe Government for Road Transport Axis Issue Measures Planned Policy Inadequate regulatory and Improvement of the institutional framework for regional institutional framework for corridors and coordination within and between countries; transit, with responsibilities Liberalization of national and regional freight markets and diluted between several actors; promotion of competition, with accompanying measures Negative impact of practices to mitigate the negative impact for inefficient operators; International such as freight repartition and Implementation of regional standards to limit checkpoints, transit ‘tour de role’ on the quantity, introduction of system for tracking of cargo along quality, and price of transport corridors; services; Interconnection of customs management systems with Obstacles along corridors, such neighboring countries; as multiple controls and Joint borders post; harassment Cargo tracking system along key regional corridors Modernization and decentralization of the institutional framework for road management and maintenance; Management of Increasing cost of road works Measures to reduce overloading ‘upstream’ (reducing road and systematic overloading of incentives to overload through improved competitiveness infrastructure trucks of road freight and promotion of containerization through a guarantee fund) and ‘downstream’ (implementation of axle load regulations and improved controls) Low proportion of freight Promote containerization Transport transported with containers; Reduce maintenance and warranty fees for containers services fees High cost of maintenance and warranty for containers Easy access to transport Professionalization of trucking industry profession and no clear Trucking industry conditions limiting responsibilities Increasing road safety issues, Support new transport fleet acquisition. many accidents Speed limit for passengers cars Road safety Regulate license renewals for passengers transport with technical control and limited age of vehicles Infrastructure Road network Limited density and poor quality, Increase of the size and density of the primary, secondary, 5 Actualisation de la Stratégie de Développement du Secteur des Transports au Burkina Faso - Rapport Final, Juillet 2011. 6 Politique de Facilitation des Transports sur le Corridor Abidjan-Ouagadougou, Ministry of Transport of the Republic of Côte d’Ivoire, October 2013. 7 Report No. 95668-AFR. 15 Axis Issue Measures Planned especially of the secondary and and tertiary road network; tertiary road network Rehabilitate the network, modernize the main transport axes; Highway Ouagadougou-Yamoussoukro Poor condition of railway linking Rehabilitation of the Abidjan-Ouagadougou-Kaya line; Rail Burkina Faso to Côte d’Ivoire Construction of rail link Ouagadougou-Niamey infrastructure and insufficient wagons for fret carriage Table 4. Strategic Priorities of the Ivorian Government for Road Transport Area Issue Measures Planned Policy Limited control over the Establishment at the Ministry of Transport of a single sector; long delays for management system for road transport activities and service Regulation of the procedures; absence of delivery to users, connected to monitoring systems (for road transport reliable statistics example, geo-tracking of freight, cameras and radars, axle sector load control) and to registries of drivers, companies, and vehicles Trucking Insufficient professionalism of Professionalization of truckers by strengthening the training profession truckers and high informality framework and the criteria to access the profession Difficult and opaque access of Modernization of regulations governing road freight Trucking sector transporters to freight allocation Non-implementation of axle Support to transporters to comply with regional regulations Trucking sector load limit regulations on axle load limits Old vehicle fleet for Fleet renewal through the establishment of credit lines by passenger transport and commercial banks and dedicated fund; vehicle scrappage Vehicle fleet freight, creating program environmental, economic, and safety hazards Limited information on trade Establishment of a database for the Regional Transport facilitation bottlenecks Observatory and collection of volume/time/cost data at the Trade facilitation port, on roads, rail, and at border posts; capacity building of public/private actors and awareness campaigns on trade facilitation Poor driving skills, exam Reform of driving license system, strengthening of driving Driving skills and fraud, high number of schools; improvement of road signals, awareness campaigns road safety accidents and prevalence of on road safety, establishment of alcohol and drug testing, risky driving practices and so on Infrastructure Poor quality and congestion Construction of a new road freight station, bridges and Port of the existing facilities at the circulation lanes at the port; establishment of parking spaces infrastructure port of Abidjan for trucks outside the port Construction of freight and passenger transport stations in Road Absence of modern Abidjan and other cities inland; construction of rest stations infrastructure equipment for road transport for truckers along the Ivorian part of the Abidjan- Ouagadougou corridor Poor state of the Rehabilitation of the Abidjan-Ouagadougou-Kaya line; Rail infrastructure and limited construction of a Western line (San Pedro-Man); infrastructure network development of an urban transport railway system in Abidjan 16 4 PROPOSED OPERATION 4.1 LINK TO GOVERNMENT PROGRAMS AND OPERATION DESCRIPTION 38. The proposed RTFCC2 is the second and final operation in a programmatic series of DPOs aiming at supporting Burkina Faso’s and Côte d’Ivoire’s reform priorities for trade facilitation and transport modernization. The unchanged program development objective (PDO) of this operation is to reduce trade transaction costs along the Abidjan-Ouagadougou corridor. While this PDO reflects the corridor focus of the operation, the benefits of the reforms supported in the transport and customs sector are expected to be felt more broadly in both countries. The RTFCC focuses on (a) professionalizing and formalizing the trucking industry; (b) modernizing the organization of the trucking market; (c) enhancing the competitiveness of maritime and inland gateway; (d) improving customs clearance; and (e) facilitating transit. 39. The rationale for these series of two programmatic budget operations was explained in detail in the program document of first operation and is, therefore, only summarized here. As illustrated in Figure 1, the premise is that the reduction of transport costs and delays requires coordinated policy actions by the two countries to optimize the following dimensions: (a) physical flow of goods, which requires the establishment of a competitive and efficient market for cargo handling and trucking services, and the improvement of operational efficiency at terminals and (b) documentation and information flows, to simplify and streamline processes for the transit and clearance of goods. Achieving progress in the two dimensions is based on the principle that the promotion of competitive market structures in transports and logistics services will generate efficiency gains along the logistics chain and lead to lower costs and delays for traders. Competition will be enhanced by a fair and transparent legal framework as well as by informed customers through the use of effective information sharing systems both in transports and customs. 40. The design of the RTFCC series was informed by lessons learned from previous operations in the transport sector in West Africa. Among the main lessons learned is that transport and trade facilitation are multifaceted and politically complex reforms that require to address reforms in complementary areas and to ensure strong coordination at the national and regional level. The RTFCC was designed to consider this by (a) adopting a corridor approach and coordinating transport and customs-related reforms and (b) offering a framework for dialogue and coordination between public and private stakeholders within each of the two countries and between them. 41. The RTFCC1, approved in June 2015, has already led to concrete results. Among others, new regulatory provisions on the liberalization of freight in Burkina Faso has begun to increase the competitiveness of the matching between the supply and demand for transport services, as groups of Burkinabe shippers have procured transport services through competitive tenders. Efforts by the Conseil Burkinabè des Chargeurs (Burkinabe Shippers’ Council, CBC) to raise awareness among transporters and traders about the rolling out of the virtual freight exchange have reportedly led to an increased interest from operators wishing to register on the platform to facilitate matches between supply and demand for transport services. Shortly after the opening of the virtual freight exchange in Burkina Faso, several dozen transporters have already listed freight on it. Customs modernization in both countries has reduced controls on international trade and transit. In Côte d’Ivoire, the automation of customs control selectivity owing to the database of traders’ risk profiles has allowed to reduce the proportion of cargo routed through the red channel (physical inspection) from 56 percent on average until the end of 2014 to 21 percent in the third quarter of 2016. The Burkinabè customs have on their side started the 17 implementation of automated selectivity in May 2016, which is expected to reduce the proportion of cargo routed to the red channel to 20 percent.8 In another progress, the agreement between the Burkinabe and Ivorian Chambers of Commerce and customs administrations has enabled the single payment of the transit guarantee at the point of departure for cargo transported on the Abidjan- Ouagadougou corridor under the Interstate Road Transit (ISRT) regime, effectively suppressing the need for another procedure at the inland border in Burkina Faso. There are already some indications received from the Côte d’Ivoire customs that the average transit time has fallen to around 4 days, in line with the expected result of the two operations. 42. The RTFCC2 aims at consolidating most of reforms that were initiated during the first operation. Indeed, there was a recognition from the start of the program that several successive layers of reforms were needed to effectively bring about significant progress in the transport and trade facilitation sectors. Some reforms required implementation decisions that could only be designed after consultation and agreement with stakeholders. For instance, the negotiation of the revised bilateral transport agreement required first a joint commitment to review the agreement, followed by a joint agreement on the content of the revisions in the second operation. The sequencing was also required in instances to accommodate for the need to bring the two countries to the same level of engagement in reforms. For these reasons, several of the prior actions agreed with both Governments were designed to strengthen the implementation of measures adopted under the first operation, including effective controls and sanctions of truck overloading and the definition of professional criteria applied to operators allowed to participate in the transport sector. 8 Rapport préliminaire sur la mise en place d’un système de gestion automatisé du risque , communication of the Direction Générale des Douanes to the World Bank, June 20, 2016. 18 Figure 1. RTFCC Objectives and Measures Development objective: Reduce trade transaction costs along the Abidjan-Ouagadougou corridor Cost reduction translates into Reduction of transport lower prices to traders only if costs, process time and competitive market structure improvement of market in transport and logistics efficiency (cross-cutting) Optimizing physical Optimizing documentation and flows of goods information flows (mostly cost reduction) (reduction of delays) Pillar A - Pillar B- Pillar C - Enhancing the Pillar D - Professionalizing and Modernizing the competitiveness of Pillar E - Improving formalizing the organization of the maritime and inland Facilitating Transit customs clearance trucking industry trucking market gateways Clarifying and Coordination of Criteria to access Access to freight simplifying border the profession (transport procedures management contract, freight Operational (trade agencies (incl. exchange, efficiency information customs bilateral (truck portal, single interconnection) transport appointment windows) agreement) scheme, parking/ warehousing capacity) Industry Modernizing Managing risk transit regime association and rewarding Fleet renewal (incl. guarantee, mechanism compliance electronic (AEO scheme) tracking of cargo) Market structure Effective (port regulator, enforcement of terminal tariffs) regulations (incl. Professional standards axle load) Promotion of for border management containerization agencies and logistic for transport services providers and efficiency streghtening controls Note: AEO = Authorized Economic Operator. 43. Adjustment is also needed in the instances where different regulatory implementation strategies can be used to reach the reform objectives. For instance, there are several ways in which support to fleet renewal can be provided, depending on the specific characteristics of the market, and this is illustrated by the different measures adopted by Burkina Faso and Côte d’Ivoire. Other examples are prevention and sanction strategies around the respect of overloading or capacity-building strategies around the professionalization of the transport profession. 44. Another lesson emerging from the first operation is the importance of the institutional structure supporting the dialogue and monitoring of the reforms supported by the RTFCC series. This structure needs to incorporate key representative in each country under the umbrella of the Ministry of Finance. To build further consensus about the reforms, the Government team in each country was 19 strengthened by incorporating focal points and committees for transport and customs. These focal points were responsible to ensure the appropriate monitoring of reform implementation in their respective sector, under the overall leadership of the Ministry of Finance. The RTFCC1 has also shown the importance of organizing regular joint meetings between the two countries, with and without the World Bank, as an effective way to improve coordination and to stimulate the dialogue between technical staff. 45. Regarding the future of regional budget support operations, several options are currently under consideration. The first one would be to stop and focus on strengthening recently adopted reforms through the TA projects mentioned above. The second option would be to intensify the reforms on the Abidjan-Ouagadougou corridor by developing a new DPO series or a Program-for-Results operation that will further emphasize results. The third option would be to apply the same approach to another corridor, for example, Abidjan-Accra or Dakar-Bamako, in line with regional priorities and client demand. These options are not mutually exclusive. In all cases, the combination of instruments to foster reforms and results (DPO, Program-for-Results) with TA to support implementation is likely to increase chances of success. 4.2 PRIOR ACTIONS, RESULTS, AND ANALYTICAL UNDERPINNINGS 46. The RTFCC2 supports policy measures that Burkina Faso and Côte d’Ivoire intend to implement either individually or jointly. In line with the first operation, the proposed operation is grounded in a solid analysis of the challenges related to trade, transport, and logistics on the Abidjan- Ouagadougou corridor (Table 5). The prior actions for RTFCC2 are detailed in the following sections, along with expected outcomes and result indicators. Depending on the issue, measures apply either to both countries (jointly or in parallel) or only to one of the countries (for example, port efficiency in Côte d’Ivoire). The Policy and Results Matrix in Annex 1 summarizes all the prior actions and triggers planned for the two years of the programmatic series. 47. The reforms supported by the proposed second operation are fully aligned with the objectives of the RTFCC series. In line with the design of a programmatic series, the prior actions included in this second operation were agreed with the Government delegations of both countries at the time of negotiations of the first operations in April 2015. Most of these actions have been kept unchanged, but a few of them had to be modified to account for recent development and align them better with the series’ objectives (see Annex 5 for details). Table 5. Analytical Underpinnings Measure Areas Analytical Underpinnings Pillar A - Professionalizing and formalizing the trucking industry Dominance of informal transporters in West Africa, relying on use of obsolete trucks, Formalization of the overloading and informal payments to avoid regulations. Job losses in informal trucking freight transport industry due to reforms would be more than compensated by shift to the formal sector and creation of new trade-related jobs (Nathan 2012). Low quality/reliability of trucking services in West Africa and high prices, poor management practices of informal operators, with incomplete view of cost structure and vehicle depreciation, operation on a cash flow basis and short planning horizon Professionalization of the (Teravaninthorn and Raballand 2009; Nathan 2012). freight transport industry Positive impact of the introduction of qualitative criteria for access to the road transport profession in regions having liberalized road transport services (fall in prices, acceleration of concentration and specialization, adaptation of services to market demand, and so on.) 20 Measure Areas Analytical Underpinnings (World Bank 2013). High number of mobile and fixed checkpoints on West African corridors, including 31 between Abidjan and Ouagadougou (WAEMU/West Africa Trade Hub 2013). Non-implementation of regional axle load regulations in most West African countries despite generalized overloading. Large net economic benefit expected from Enforcement of the implementation (lower road maintenance and vehicle operating costs) (Teravaninthorn transport sector legal and and Raballand 2009; Nathan 2012). regulatory framework Experience with axle load controls in Eastern and Southern Africa, as well as in Ghana, resulting in reduction of overload and road degradation and increased road safety; lessons learned for the design and implementation of axle load controls (Pinard 2010, 2011; West Africa Trade Hub 2010). Negative impact of inadequate bilateral road transport agreements on the provision of Streamline regulations for efficient transport services in many developing countries. Essential role of well-designed regional road transport and transparent agreements to facilitate transport and enhance market integration (World Bank 2013). Pillar B - Modernizing the organization of the trucking market Global trend toward containerization and essential role to enable intermodal transport, with considerable efficiency gains (Rodrigue et al. 2013). Promote containerization Limited containerized traffic on West African transit corridors (20 –25%) and frequent to the hinterland stripping at the port, explained by several factors (preference for truck overloading, penalties imposed in case of late return of containers, lack of return cargo, and so on.) (Nathan 2012, 2013). Transport prices in West Africa suggest substantial price-cost margins (Teravaninthorn and Raballand 2009), market arrangements are non-transparent and influenced in an unpredictable way by market sharing practices at the international (2/3 –1/3 rule) and domestic levels (‘tour de rôle’ freight allocation controlled by professional associations). Promote competitive road West African transport sector negatively impacted by lack of market transparency in transport price setting transport prices and high number of middlemen (Nathan 2013). Trade-off for truckers between long waiting times and various informal payments (commissions to freight brokers in the port to find freight quickly, informal payments at destination in the hinterland to get permission to carry cargo on backhaul, and so on.) (Nathan 2012). Pillar C - Enhancing the competitiveness of maritime and inland gateways Reduce gateway and High cargo handling prices and port charges in Abidjan compared to regional standards, as terminal prices well as high prices of delivery in the Abidjan metropolitan area. Oligopolistic organization of handling companies (World Bank 2011). Improve port operational Key issue of urban access to ports, parking and storage for gateway efficiency, and analysis efficiency of options for improved accessibility and reduced congestion. Strong positive impact of appointment systems for trucks in countries where they have been introduced (World Bank 2014). Provision of warehousing facilities and port storage reforms (World Bank 2012). Pillar D - Improving Customs Clearance Information on trade Benefits of Trade Information Web Portals (TIWPs), analysis of challenges to establish procedures and TIWPs in developing countries and guidelines for implementation (World Bank 2012). regulations Clearance procedure for Feasibility study for implementation of an incentive-based approach to compliance and compliant operators pilot AEOs mechanism in countries of the Abidjan-Lagos corridor and guidelines based on international best practices (Nathan 2010, 2011). Professional standards for Role of objective measurement to modernize customs and positive results of ‘performance customs and logistics contracts’ to improve individual incentives in Cameroon; guidelines for reforms to improve 21 services providers performances and control techniques based on measurement (Cantens et al. 2013; Likeng et al. 2009, 2011). Negative impact on trade of low quality clearing and forwarding (C&F) services in Africa; importance of training and certification to address frequent skills shortage and knowledge gaps of small C&F service providers (Arnold et al. 2011). Experience in Cameroon of using objective results indicators to enhance oversight of customs brokers and freight forwarders (Likeng et al. 2011). Pillar E - Facilitating transit Improve border crossing Comprehensive analysis of border management modernization and inter-agency performance between coordination, guidelines for reform (McLinden et al. 2011). Côte d’Ivoire and Burkina Lessons learned from experience with integrated border management within and between Faso countries in other corridors, such as the Northern corridor in East Africa (Fitzmaurice and Hartmann 2013). Improve transit regime Poor implementation of the ISRT convention at the regional level, absence of regional guarantee system (Nathan 2012). Transit regimes: principles, international conventions, regional systems and implementation challenges in developing countries (Arvis 2011a, 2011b). Pillar A - Professionalizing and formalizing the trucking industry A1. Business enabling environment promoting professionalization and formalization of the trucking industry 48. Uncontrolled access to the trucking industry by poorly qualified operators is an important impediment to an effective functioning of the transport sector in Côte d’Ivoire and Burkina Faso. As a first step to address this issue in line with best international practices, the two Governments undertook a coordinated reform of access to the profession under RTFCC1, which included a transition period to give operators time to adapt. The regulatory texts adopted in consultations with all stakeholders aim at ensuring a level playing field for all operators who can meet essential criteria and allowing market forces to match the supply and demand for transport services. 49. In addition to defining the access criteria for the trucking profession, it is essential to ensure that there are adequate training systems in place to allow the professionalization of the industry. RTFCC2 supports this through the adoption by both countries of aligned regulations defining training requirements for transport operators and criteria for the creation of private training institutions. Specifically, Burkina Faso adopted a decree defining the conditions for the establishment and exploitation of institutions for the training of drivers, as well as related implementation regulations. Burkina Faso has also launched consultations with relevant public and private stakeholders regarding the training framework for managers of transport companies, which are expected to last around three months and to result in the adoption of additional regulations defining curricula for transport managers and modalities for the certification of training programs and institutions. In Côte d’Ivoire, regulations have been adopted on the modalities of the training for transport managers and on the criteria to open specialized training institutions, and a revised Road Code defines requirements for the training of professional drivers in authorized training centers. Sequenced in this manner, these measures will ensure the progressive formalization and professionalization of the trucking industries in the two countries, which is an essential condition to increase the efficiency of transport operations along the Abidjan-Ouagadougou corridor and achieve the objective of reducing trade and transport costs. The effectiveness of these measures will be assessed with regard to the number of formally registered 22 transport operators under the new criteria. 50. Significant support will be needed for the implementation of these reforms to professionalize and formalize the trucking industry in the medium term. As discussed in the table below, TA projects are being prepared in Burkina Faso and Côte d’Ivoire, which will include activities to support the strengthening of national training systems for transport professions, as well as to help transport operators adapt to the new standard or transition to other activities. Area RTFCC2 Prior Action Results A1 - Business enabling Number of formally registered environment transport operators under new Adoption by the Recipient of regulations (decrees and/or promoting criteria for access to the ministerial orders) strengthening the training system for professionalization profession road transport operators. (BF, CI) and formalization  BF: 0 (2015)/300 (2017) of the trucking  CI: 0 (2015)/3,000 (2017) industry Note: BF = Burkina Faso; CI = Côte d’Ivoire. A3. Implementation of axle load regulations 51. The generalized disregard for truck axle load regulations is a major issue for the efficiency of road transport in Burkina Faso and Côte d’Ivoire, as well as in the rest of the WAEMU region. A number of factors encourage quasi-systematic overloading of trucks in West Africa. These violations of rules and regulations by truckers are used as a justification for the large number of roadblocks established by police and security forces, which impede traffic and increase costs by creating opportunities for bribery and corruption. Although the impact of roadblocks on the trade costs is not as large as that of other factors, roadblocks create delays and are an important governance indicator. At the same time, effective axle load enforcement is critical to ensure the sustainability of the road infrastructure, reduce maintenance costs, improve the efficiency of the fleet, and increase safety for truckers and their freight. 52. While effective and full enforcement of axle load compliance is a medium-term objective, RTFCC2 supports measures that can be taken to begin changing incentives and behaviors. Several factors are needed to make possible the full implementation of axle load regulations. In particular, the reform of access to the profession and support for truck fleet renewal are key to ensure that operators have the incentives and capacity to respect regulations. However, WAEMU countries have recently renewed their commitment to the implementation of regional axle load standards defined in WAEMU Regulation 14 by mid-2017 at ministerial meetings of transport and infrastructure ministers in June 2015, and most recently on 23 September 2016 in Cotonou.9 Development partners involved in the transport sector in both countries have also increasingly stressed the necessary enforcement of these regulations over the last couple of years. To work toward this goal under RTFCC2, the Burkinabe and Ivorian authorities have adopted measures to start enforcing WAEMU Regulation 14 and comply with the regionally agreed implementation timeline. Both Burkina Faso and Côte d’Ivoire committed at the 9 Règlement n°14/2005/CM/UEMOA relatif à l’harmonisation des normes et des procédures du c ontrôle du gabarit, du poids, et de la charge à l’essieu des véhicules lourds de transport de marchandises dans les Etats membres de l’Union Economique et Monétaire Ouest Africaine , available at http://www.uemoa.int/Documents/Actes /Reglement_14_2005_CM_UEMOA.pdf). 23 highest level to the implementation of a detailed roadmap that will lead to the full implementation of the regulation by April 2017. Both countries have initiated the purchase and/or refurbishing of new weighing equipment (including in the two ports of Côte d’Ivoire where most of the truck traffic for the corridor originates). In September 2016, and effective from October 1, the fines on overloaded trucks have been quadrupled in Côte d’Ivoire and instruction was given to the Fonds d’Entretien Routier (FER) to apply these fines. In Burkina Faso, major logistics platforms (e.g. cement, cotton, sugar) were instructed to get the appropriate truck weighing equipment and control the weight of outgoing trucks by March 2017 or face fines. Awareness and information campaigns have also been conducted in both countries. The results indicator are defined as the proportion of noncompliant trucks controlled at weighing stations. Area RTFCC2 Prior Action Results For purposes of applying WAEMU Regulation 14, and pursuant to the declaration by WAEMU infrastructure Proportion of noncompliant A3 - and transport ministers in Cotonou on September 23, trucks controlled at weighing Implementation of 2016, adoption by the Recipient of measures for (i) stations axle load acquisition and refurbishment of truck weighing  BF: 80% (2015)/35% (2017) regulations equipment; and (ii) notification of increased sanctions  CI: 85% (2015)/35% (2017) for noncompliant operators. (BF, CI) Pillar B - Modernizing the organization of the trucking market B1. Efficiency of road transport operations through better contractual relations between trucking companies and shippers Freight Allocation Mechanisms 53. Lack of transparency and competition in freight allocation severely undermine the efficiency of transport in Burkina Faso and Cote d’Ivoire. Several market characteristics and practices result in a well-documented gap between the prices paid by shippers for transport and the price received by transporters, including the persistence of quota systems for freight allocation, oligopolistic behaviors, prevalence of intermediaries, and lack of professionalism of transport operators. At the WAEMU level, the introduction of virtual freight exchanges to allow a competitive and transparent matching of the supply and demand for trucking services has been seen a solution to reduce these distortion and improve the dissemination of market information. 54. Burkina Faso has made progress to introduce transparency in the trucking market through a virtual freight exchange. The World Bank has supported the provision of TA for the development of a pilot virtual freight exchange in Burkina Faso, which has so far not been used to a significant degree by transporters or shippers. Under RTFCC2, this pilot project is being rolled out and information on transit freight is now published online on the platform by the CBC to provide an initial inflow of information and facilitate matching. Importantly, the virtual freight exchange has started to be used on a voluntary basis and will allow for competitive matching of supply and demand without external interference or control. Further reforms in subsequent years should include the development of a virtual freight exchange in Côte d’Ivoire, which has not yet started, and ultimately the connection of the national exchanges. Contractual Relations between Shippers and Carriers 55. The definition of clear contractual relations between shippers and transporters is an important element of well-functioning transport markets but is still lacking in Burkina Faso and Côte 24 d’Ivoire. International best practices recognize the desirability of standardizing the conditions governing contracting for the international carriage of goods by road through consignment notes, particularly with respect to the liability of the carrier. Regional regulations define the legal framework for consignment notes in West Africa.10 Moreover, an agreement was reached in 1997 among several West African countries, including Burkina Faso and Côte d’Ivoire, to establish an interstate consignment note (lettre de voiture) managed by national shippers’ councils. However, the relations between shippers and carriers in these two countries have been characterized by a lack of liability as formal transport contracts or consignment notes are not used. A dysfunctional distribution system for consignment notes in Côte d’Ivoire is largely responsible for the absence in practice of interstate consignment notes. In Burkina Faso, the shippers’ council has introduced a document, Bordereau de Suivi de Transport Routier (Road Transport Monitoring Note, BSTR), which is largely used in electronic form but is used more for statistical purposes than as a transport contract. 56. The RTFCC supports the mutual recognition of consignment notes to be used along the whole Abidjan-Ouagadougou corridor. To achieve this goal, the prior action under RTFCC1 concerned the adoption by the Ivorian Ministry of Transport of regulatory measures to organize the issuance of a document unique de transport (single transport document, DUT) in lieu of the previously dysfunctional system. As a logical step under RTFCC2, the authorities and shippers’ council in both countries have ensured that the interstate consignment notes issued by the CBC and Office Ivoirien des Chargeurs (Ivorian Shippers’ Council) are mutually recognized and that either one of these documents can be used from Abidjan to Ouagadougou. These measures will contribute to a more efficient transport sector in the two countries and on the corridor by increasing the transparency of contracts and allowing the collection of more accurate data on transit operations. The results indicator has been set as the volume of trade in Côte d’Ivoire carried under a consignment note. Bilateral Transport Agreement 57. Burkina Faso and Côte d’Ivoire lack a modern bilateral road transport agreement to facilitate the cross-border provision of trucking services. The current agreement, the ‘Protocole d’Accord de Coopération en matière de Transports Routiers’, dated July 27, 1999, has a limited scope and is not conducive to the emergence of a modern transport sector on the corridor. On the contrary, best practices for modern agreements recommend that they should notably include (a) a comprehensive set of measures covering transport regulation; (b) principles of liberalization of transport trade; (c) harmonized and simplified requirements, including those not directly related to transport, such as insurance and security rules; and (d) an effective institutional arrangement. 58. Under the RTFCC, both Governments are committing to revising the 1999 bilateral road transport agreement. As a prior action for RTFCC1, the Ivorian and Burkinabe Ministries of Foreign Affairs entered into an agreement to establish a joint technical committee for the purpose of renegotiating this agreement. The approval of a revised bilateral agreement was a prior action under RTFCC2. This new bilateral road transport agreement demonstrates the firm commitment of the two countries to jointly facilitate trade and transport and progress toward the liberalization of freight allocation. While both countries agreed that the full removal of freight allocation quotas was not desirable until the positive impact of ongoing reforms on the modernization of the transport and trade 10 Provisions related to consignment notes are included notably in the Organisation pour l’Harmonisation en Afrique du Droit des Affaires (Organization for the Harmonization of Business Law in Africa) Single Act on transport contracts, the ECOWAS ISRT Convention and WAEMU Regulation 14. 25 sectors have more fully materialized, the revised agreement will open the door for a reconsideration of this issue in the future. Area RTFCC2 Prior Action Results Volume of trade in Côte d’Ivoire carried under a consignment Introduction by the Recipient of a virtual freight note: 3.9 million tons (2015)/5 B1 - Efficiency of exchange that makes available information on incoming million tons (2017) road transport freight. (BF) Number of transporters and operations through Mutual recognition of inter-State consignment notes by shippers registered on the better contractual the Recipient and the Partner. BF (BSTR) and CI (DUT) virtual freight exchange in relations between (Joint) Burkina Faso: 0 (2015)/ 30 trucking companies Signature by the Recipient and the Partner of a revised transporters or trucking and shippers bilateral road transport agreement (protocole d’accord) companies controlling a dated May 12, 2016. BF (BSTR) and CI (DUT) (Joint) cumulated fleet of 150 trucks (whichever is higher) and 25 shippers (2017) B2. Efficiency of road transport operations through a more efficient truck fleet 59. Like in most other West African countries, the Burkinabe and Ivorian truck fleet are in dire need of renewal. Currently, only a limited number of trucking companies and individuals in both countries are in a position to conduct trucking businesses in a manner that would allow the purchase of new trucks. However, meeting the new criteria for access to the profession will require the purchase of new trucks, given that most trucks are excessively old, particularly so in Côte d’Ivoire. 60. Both the Ivorian and Burkinabe Governments envisage the adoption of a mechanism to assist trucking companies in the acquisition of new trucks. So far, Burkina Faso has piloted a limited scheme based on duty and tax exemptions for the import of new trucks, while Côte d’Ivoire has started to prepare a scheme based on dedicated credit lines with commercial banks. In both countries, however, a credible, comprehensive, and sustainable mechanism is yet to be developed and adopted. To ensure broad access to such a mechanism, even by smaller transporters without long-term contracts with shippers, it would need to (a) reduce the cost of vehicles (for example, through exemptions and possibly subsidized loans) and (b) facilitate access to credit and reduce the risks perceived by lending banks (for example, through a guarantee fund). Moreover, the mechanism should be accessible only for compliant operators based on the criteria defined in the decrees on access to the profession. An additional issue is what to do with noncompliant trucks, either disposal of the ones that are too old, potentially with a scrapping scheme that could be used as down payment for a new truck, or restriction of their usage to local transport or other activities. 61. Design of the fleet renewal mechanism is ongoing in each of the two country and will be supported by World Bank TA. Related prior actions under RTFCC2 are: (a) the adoption of a mechanism featuring one or several of the elements presented above; and (b) the strengthening of the regulation on the technical inspection of vehicles, to ensure that substandard vehicles are not used for merchandise transport. Regarding the first point, Burkina Faso has decided to allow duty and tax exemptions for around 900 trucks, considering the lessons learned from the previous pilot operation, and to promote the signature of long-term contracts between transporters and large shippers. The efficiency of vehicle technical inspections will be enhanced by the introduction of a new system for the securitization of transport documents in cooperation with a private operator, which will make it more 26 difficult to forge inspection certificates. Côte d’Ivoire has created the Fonds de Développement du Transport Routier (Road Transport Development Fund, FDTR), a dedicated institution to facilitate the provision of credits to transporters for the purchase of new trucks, and is planning to allocate resources for a scrappage program. The FDTR has signed conventions with local commercial bank to facilitate financing for the purchase of new trucks by domestic operators. Moreover, the new Road Code to be adopted will contain provisions regarding the modernization of vehicle technical inspections. In the longer run, these first measures to renew the fleet will be complemented through the TA projects under preparation for the two countries. The results indicator will be the reduction of new vehicle prices permitted by the fleet renewal scheme. Area RTFCC2 Prior Action Results Adoption by the Recipient of measures to support fleet renewal for compliant road transporters, through provisions to lower the cost of vehicles (notably tax and Percentage reduction of B2 - Efficiency of road customs duty exemptions). (BF) new vehicle prices under transport operations Adoption by the Recipient of measures to support fleet fleet renewal mechanism through a more efficient renewal for compliant road transporters through  BF: 0 (2015)/35% (2017) truck fleet provisions to facilitate access to credit. (CI)  CI: 0 (2015)/20% (2017) Strengthening by the Recipient of the technical inspection of vehicles through the issuance of regulations, procedures or strategies. (BF; CI) Pillar C - Enhancing the competitiveness of maritime and inland gateways C1. Port and terminals operational efficiency and prices 62. Several crucial logistics services at the maritime gateway of Abidjan are provided by operators in an oligopolistic market structure, without proper regulation. This is notably the case for container deliveries in the metropolitan Abidjan area, where stevedoring companies have unilaterally decided to reserve freight for themselves, excluding other trucking companies and charging high fees. The reason for the de facto monopoly of deliveries is that stevedoring companies are combining their activities with the role of shipping agent, clearing and forwarding and also trucking functions. This enables them to maintain stricter control of their shipping assets, such as containers, given that third-party logistics providers are likely to pay less attention to the return of containers. To remedy this situation, it will be necessary to open the market for deliveries to third-party trucking companies that offer a sufficient level of confidence. 63. The RTFCC supports several measures to increase the competitiveness of transport gateways along the Abidjan-Ouagadougou corridor. Under RTFCC1, the Ivorian Ministry of Transport adopted a ministerial order liberalizing the activity of container delivery and setting objective and open eligibility criteria for transporters. An assessment of the impact of this measure is planned during the preparation of the second operation to verify that it effectively changed the status quo and had the expected positive impact on prices for users. Under RTFCC2, the Ivorian Government has reactivated the National Commission on the Competitiveness of Ivorian Ports, which includes representatives of public and private stakeholders, including port users from other countries such as Burkina Faso through its shippers’ council. This commission has organized a dialogue on cargo handling tariffs, with a view to ensuring that they are in line with actual costs and promote the strategic priorities of the region. For instance, competitive port storage tariffs should become instrumental for the development of additional warehousing facilities outside of port limits. The objective is to reduce maritime gateway prices to a level that will enhance the competitiveness of the Abidjan corridors while improving the attractiveness 27 of containerized transport. This objective will be measured by the ratio of handling prices in Abidjan compared to the initial tariff in place, as well as by number of transport operators authorized to deliver containers in Abidjan. Area RTFCC2 Prior Action Results C1 - Port and Adoption by the Recipient of a 1) Reduction of container delivery prices in Abidjan terminals ministerial order activating the compared to initial FEDERMAR tariff: 0% operational Commission on Competitiveness (2015)/25% (2017) efficiency and prices of Ivorian Ports and 2) Number of transport operators authorized to commencement of meetings. (CI) deliver containers in Abidjan: 30 (2015)/50 (2017) Pillar D - Improving customs clearance D1. Availability of information on trade procedures and regulations 64. Easy access to trade-related regulations and streamlining of procedures are important aspects of trade facilitation. International trade is governed by an increasingly complex corpus of regulations from different agencies. Compliance presupposes that this information is easily available for traders and logistics operators, including new entrants, and is correctly used. For this reason, the availability of complete and up-to-date regulatory information has been included in the Trade Facilitation Agreement of the World Trade Organization (WTO) and the WAEMU has been working on a regional framework for a network of TIWPs that will make trade regulations available to users. Moreover, the development of automated single windows is an important tool to reduce the cost or time and opportunities for rent extraction associated with trade procedures, which has been used in a number of developed and developing countries. 65. The RTFCC supports the development of these trade facilitation tools in Burkina Faso and Côte d’Ivoire. Under RTFCC1, the Ministries of Finance and Commerce of Côte d’Ivoire and Burkina Faso adopted ministerial orders for the preparation and maintenance of TIWPs in line with the template developed at the WAEMU level. The launch of the portal in Côte d’Ivoire is a prior action under RTFCC2. In Burkina Faso, the development of the TIWP is likely to extend beyond the timeline of RTFCC2, but the country has made progress to develop a trade single window system, Système de Liaison Virtuelle des Importations et des Exportations (Virtual Linkage System for Imports and Exports, SYLVIE), which includes elements of a TIWP but goes beyond by automating the financing component of trade procedures. The development and launch of this system was therefore a prior action for Burkina Faso under RTFCC2. Area RTFCC2 Prior Action Results D1 - Availability of Establishment by the Recipient of a pilot TIWP in support of information on Article 1 of the WTO’s Trade Facilitation Agreement. (CI); (See D2 below) trade procedures Development and launch by the Recipient of the electronic- and regulations based trade single window system. (BF) D2. Customs clearance procedures and reward of compliance 66. Trade and transport costs in Burkina Faso and Côte d’Ivoire would be reduced by risk -based controls and mechanisms rewarding compliance. The role of border management agencies, notably customs, has been evolving from a pure control focus to a more balanced approach that includes trade facilitation. While complex procedures and pervasive controls hinder the smooth movement of goods, control agencies in West Africa are reluctant to eliminate the abundance of controls, principally because 28 of the generally low level of compliance of traders and transport operators in the region with the rules in place. However, the experience shows that more modern methods of customs control selectivity based on risks coupled with well-designed preferential treatment for compliant operators can at the same time increase the efficiency of controls and create incentives for compliance. For this reason, the Governments of Côte d’Ivoire and Burkina Faso are committed to strengthening risk management and rewarding compliance. Basic risk management functions in customs operations have been introduced by both countries in recent years and are being improved with TA. Moreover, an AEO program is being piloted jointly by Côte d’Ivoire and Ghana in the context of the Abidjan-Lagos corridor project, and Burkina Faso has expressed interest in joining this initiative. 67. The RTFCC supports the two Governments’ efforts to modernize their border management procedures so as to reconcile the control and facilitation objectives. Under RTFCC1, the customs administrations in the two countries established an automated and operational database on traders’ risk profiles. Building on this, as a prior action for RTFCC2, the two customs administrations have strengthened risk management through: (a) the automation of control selectivity by interfacing traders’ risk profiles databases with customs management systems; and (b) the modernization of post-clearance audits procedures. A second prior action for Côte d’Ivoire was to adopt the regulatory framework to define the criteria and functioning of an AEO scheme. The measure of success is linked to the effectiveness of the customs risk management system, and the result indicators will be the proportion of customs transactions routed through the red channel and the average customs clearance time. Area RTFCC2 Prior Action Results Strengthening by the Recipient’s customs administration of the risk management system through D2 - Customs (i) introduction of automated selectivity for customs Proportion of transactions routed clearance controls, and (ii) modernization of post-clearance audits in customs’ red channel: procedures and (PCAs) procedures. (BF, CI)  BF: 25% (2015)/10% (2017) reward of Adoption by the Recipient of a regulatory framework  CI: 56% (2015)/30% (2017) compliance (decrees and/or ministerial orders) defining the criteria and functioning of an AEO scheme. (CI) D3. Professional standards for customs and logistics service providers 68. Low trade and transport costs depend partly on the professional capacity and compliance in border management agencies and the customs clearing profession. The professional capability of border agencies’ personnel not only affects the documentation flow at the gateway and inland offices but also directly affects the operations of the trucking industry if limited capacity results in delays at borders. In addition to this, unethical behaviors by some customs officials represent a source of unofficial cost and uncertainty for traders. Likewise, customs brokers are often poorly trained and do not comply with regulations and procedures, which is a source of errors, delays, and revenue loss for customs. This justifies the need for reforms and capacity-building programs aiming at improving professional standards for both customs officials and brokers, including by strengthening controls. 69. The RTFCC supports the Burkinabe and Ivorian Governments’ efforts to promote higher professional standards in customs and among customs brokers. Under RTFCC1, the Ivorian customs adopted a Code of Ethics and Good Governance for customs agents.11 As a prior action under RTFCC2, both customs administrations have strengthened: (a) internal controls through the adoption of a manual 11 Such a code was already in place in Burkina Faso. 29 of procedures; and (b) the institutional framework for the control of customs brokers. The implementation of these measures will reduce uncertainty for both traders and customs and should reduce incentives for unofficial payments. 30 Area RTFCC2 Prior Action Results D3 - Professional Improvement of the Recipient’s customs administration standards for by strengthening: (i) its internal procedures for customs customs and (See D2 above) controls; and (b) the oversight of licensed customs logistics service brokers. (BF, CI) providers Pillar E - Facilitating transit E1. Border crossing procedures 70. Streamlining transit procedures along the Abidjan-Ouagadougou corridor is essential to reduce transport and trade costs. In recent years, initiatives have been launched at the regional level in West Africa to reduce the excessive border crossing times, notably through the establishment of joint border posts, one which is planned at the Laléraba border crossing between Burkina Faso and Côte d’Ivoire. The experience with such initiatives has shown that the most important efficiency gains are in the coordination of border crossing procedures across agencies and countries and the leveraging of information technology solutions to reduce transit and transport times.12 Recently, Burkina Faso, Côte d’Ivoire, Mali, and Senegal have worked toward the interconnection of their customs information systems, which would notably enable the circulation of trucks along regional corridors with a single transit declaration at the point of departure. This process has been recognized as important by the ECOWAS Commission, which is committed to use it as a basis for a region-wide system. 71. The planned interconnection of Burkinabe and Ivorian customs systems represents a major opportunity to reduce cost and delays for traders and transporters along the Abidjan-Ouagadougou corridor. Under RTFCC1, the customs administration of Burkina Faso and Côte d’Ivoire agreed on the technical details for the interconnection of their respective customs information systems reflecting conclusions from the study phase of the regional PACIR (Programme d’Appui au Commerce et à l’Intégration Régionale) initiative. A related reform under RTFCC1 that was supported concerned the single payment of the ISRT transit guarantee at the point of departure. The regional interconnection solution will be implemented with support from the two TA projects in FY17. To prepare the ground for this broader regional initiative, the prior action for RTFCC2 was that the Burkinabe and Ivorian custom administrations agreed on a pilot bilateral interconnection system based on their existing information systems, using a technical solution developed by United Nations Conference on Trade and Development (UNCTAD). Such a pilot will bring a proof of concept for the interconnection between the two countries and, most importantly, will allow the adaptation of both countries’ transit procedures to allow for single transit declaration at the point of departure on the corridor (that is, end of the requirement to submit a new custom declaration at the border between the two countries). The result indicator for this measure will be the average transit time between Abidjan and Ouagadougou. 12 The case of the Malaba border crossing between Kenya and Uganda shows that soft aspects may even be more critical than infrastructure. The recipe for success achieved in Malaba is based on the connection of customs and the transfer of transit information from the transit to the destination country, in a manner that enables clearing and forwarding agents to submit the entry declaration largely before the arrival of the truck. 31 Area RTFCC2 Prior Action Results Signing of an agreement (protocole d’accord) dated April 28, 2016 by the Recipient’s and the Partner’s Average transit time between E1 - Border crossing customs administration of a pilot interconnection Abidjan and Ouagadougou: 140 procedures system allowing single transit declaration at the point of hours (2015)/100 hours (2017) departure for transit between the two countries. (BF, CI) 4.3 LINK TO CPF, OTHER BANK OPERATIONS, AND THE WORLD BANK GROUP STRATEGY 72. The RTFCC programmatic series is fully aligned with the World Bank Group’s strategic priorities in Burkina Faso and Côte d'Ivoire. Generally speaking, the facilitation of trade and reduction of transport costs in both countries is expected to generate broad welfare gains and thus to contribute to boosting shared prosperity and ending extreme poverty. For Burkina Faso, the proposed operation contributes to the objectives of the current Country Partnership Strategy for the period FY13–FY16 (Report number 78793), the objectives of which include: (a) accelerating inclusive and sustainable economic growth; (b) enhancing governance for more efficient social services delivery; and (c) reducing social, economic, and environmental vulnerabilities. A recent Performance and Learning Review of the Country Partnership Strategy (Report number 96513) recommended an increased focus on improving the business environment through the strengthening of the institutional framework for market competition, notably in the transport sector. For Côte d’Ivoire, the proposed operation is equally aligned with the new Country Partnership Framework for the period FY16–FY19 (Report number 96515), notably with its focus areas dedicated to accelerating sustainable private sector-led growth and cross-cutting themes of governance and spatial inequality. 73. As explained earlier, the RTFCC series will be accompanied by World Bank TA projects under preparation for both countries.13 These projects aim at supporting the two Governments in two main ways: (a) providing technical and financial assistance to enable the effective implementation over the medium term of key but challenging transport and customs-related reforms identified in the Policy Matrix of the RTFCC DPO; and (b) establishing support mechanisms to help private operators adapt to the new regulatory environment and mitigate the potential negative socioeconomics impact of these reforms. 74. The RTFCC series is also an important complement to other IDA investment projects and supports key reforms necessary for their success. The Abidjan-Lagos and recently closed Tema- Ouagadougou-Bamako Trade and Transport Facilitation Projects are crucial regional projects that aim at facilitating trade and reducing transport costs along those corridors. Infrastructure investments and capacity building funded by these two projects support the implementation of key measures supported under the RTFCC. In turn, the RTFCC will create an enabling environment for the transport sector reforms supported under these other corridor projects. The general approach to corridor efficiency developed for the RTFCC has generated interest in neighboring countries, and the Togo Logistics and Trade Facilitation program under preparation aims at implementing similar reforms (professionalization of the trucking industry, access to freight, trade and transport facilitation) on the Lomé Ouagadougou corridor, building on the reforms undertaken in Burkina Faso. Likewise, the West Africa Trade Logistics 13 Burkina Faso Transport Sector Modernization and Trade Facilitation Project (P156 892) and Côte d’Ivoire Transport Sector Modernization and Corridor Trade Facilitation Project (P156900). 32 Project implemented by Trade and Competitiveness Global Practice focuses on several corridors, including Abidjan-Ouagadougou, and is providing support to Burkina Faso and Côte d’Ivoire in several related areas, notably regarding intra-regional trade and border crossing. Finally, the International Finance Corporation (IFC) has been exchanging with the Ivorian Government and with the IDA team preparing the abovementioned TA project regarding potential support to the fleet renewal mechanism. Moreover, the RTFCC will complement planned and potential future operations of the World Bank around the Abidjan-Ouagadougou corridor, such as operations aiming at tackling port efficiency, road and urban transport, and private sector facilitation issues around Greater Abidjan and operations supporting the development of key secondary cities such as Bouaké or San Pedro around the corridor’s trade and transport activities. 4.4 CONSULTATIONS AND COLLABORATION WITH DEVELOPMENT PARTNERS Consultations 75. The two Governments have organized extensive consultations of all stakeholders regarding the design and implementation of the reforms supported by the proposed operation. The sets of measures under each pillar of the DPO were discussed in a series of consultations with all public and private stakeholders from both countries (including representative of the trucking industry and unions), first at workshops in Abidjan in September 2013 and May 2014 and during several subsequent missions. Moreover, frequent consultations on the program and its implementation were organized between both Governments, including during visits of an Ivorian delegation in Ouagadougou in February 2015 and of a Burkinabe delegation in Grand Bassam in August 2015. Overall, the operation has considerable ownership by the two Governments and all stakeholders, who appreciate that the status quo is not sustainable. Collaboration with other Development Partners 76. All measures and links with related initiatives in the two countries have been discussed with the regional economic communities and other donors. Given the large scope and complexity of the issues at hand, collaboration with the main donors involved in trade, transport, and logistics in the two countries is essential for the RTFCC to succeed. Major regional actors, such as the European Union (EU), African Development Bank (AfDB), Japan International Cooperation Agency, and the ECOWAS and WAEMU Commissions were thus involved from the onset of the operation’s preparation and contributed to the analysis of the constraints faced and of necessary reforms. Dedicated sessions with donors were also organized in Ouagadougou and Abidjan during missions to review measures that could be supported by the RTFCC and linkages with other projects financed by the donors. Notably, in Côte d’Ivoire, close cooperation was established with the EU and the team of EU-funded consultants supporting the reform of the road transport sector at the Ministry of Transport. The project is also cooperating with UNCTAD to support the pilot interconnection of the two countries customs’ systems. 77. Several ongoing and planned donor-supported initiatives can have important synergies with the RTFCC. Concerning infrastructure, investment in road renovation/upgrading on the Burkinabe side of the Abidjan-Ouagadougou corridor is under way with EU support, and feasibility studies are being done with the WAEMU support to rehabilitate segments of the corridor in Côte d’Ivoire. The WAEMU Commission is also financing a joint border post between Côte d’Ivoire and Burkina Faso at La léraba and the construction of weighing stations for trucks in Côte d’Ivoire and at the border, which will be important to implement axle load regulations. Several donor-funded TA projects dealing with the softer dimensions of trade facilitation are also directly relevant for the RTFCC, such as the support provided by 33 the EU, the WCO, and UNCTAD to interconnect the customs operations of Burkina Faso, Côte d’Ivoire, and Mali; the WAEMU effort to establish regional trade information portals; and the TA provided by the IMF’s AFRITAC (African Regional Technical Assistance Center) Ouest to Burkinabe and Ivorian customs on risk management. Moreover, the ECOWAS and WAEMU are currently working to transform the Observatory of Abnormal Practices into a West Africa Transport Observatory that seeks to monitor and engage in a campaign to remove the nontariff barriers that impede smooth trade, particularly the high incidence of roadblocks and other factors affecting the cost of transport along the major corridors in West Africa.14 The two commissions are also finalizing regional trade facilitation programs that will deal with the regional dimensions of several measures of the policy matrix (for example, customs interconnectivity, regional transit and tracking systems, capacity building of customs brokers, and establishment of corridor management committees). Such programs will be supported by the World Bank and other development partners, including the AfDB, which is at an advanced stage of project identification. 5 OTHER DESIGN AND APPRAISAL ISSUES 5.1 POVERTY AND SOCIAL IMPACT 78. The economic benefits of the reforms supported by the proposed operation are clear, notably for the poor. The reforms supported by the RTFCC series are designed to facilitate transport and trade and are thus expected to generate significantly positive economic, employment, and welfare effects at the national level in the two countries. To the extent that these reforms will reduce the costs of importing and exporting goods, they should also have a positive impact on poverty reduction. These benefits should be particularly important for Burkina Faso, where lower transport prices and enhanced efficiency of logistics services for the movement of food staples will improve food security by preventing the loss of crops during transport while helping strengthen the competitiveness of traditional exports such as cattle from landlocked countries in the Sahel. This will benefit, in particular, women, many of whom are involved in small businesses and have much to gain from lower transport prices and better access to markets. 79. Several of these measures are also likely to have significant negative impacts on vulnerable segments of the population. In particular, given that the trucking industry in West Africa is composed largely of an over-supply of small independent and largely informal truckers who operate on relatively thin profit margins, the impact of trucking sector reforms will be considerable for those operators who may not be able or willing to comply with a stricter regulatory framework for access to the profession. The measures discussed in the following paragraphs may have a negative impact on some specific groups of stakeholders. 80. Access to the trucking profession. Reforms in this area, including revision of legislation and regulation concerning access to the industry adopted under RTFCC1, will have an impact on some jobs and livelihoods after the planned transition phase. While some existing small informal truckers could be absorbed into more formal firms as employees or contract operators and others may organize into cooperative or Groupement d’Intérêt Economique (Economic Interest Group) to continue operating, a number of operators will be unable to meet new standards and over time will be required to exit the 14 The West Africa Observatory is supported by several donors (U.S. Agency for International Development, EU, and Japan International Cooperation Agency). 34 industry. 81. Fleet renewal. The existing trucking fleet is old in both countries and its renewal is key for the modernization of transport markets. While some industry participants will have the capacity to upgrade their vehicles, especially once the planned fleet renewal mechanisms are operational, some small informal truckers will likely not have the minimal technical and financial requirements to do so even with this support.  Port operational efficiency and prices. The curbing of the monopoly for local deliveries in the Abidjan metropolitan area will affect those truckers, handlers, shippers, and their employees that currently benefit from this monopoly. This will be offset by gains for those currently not permitted access and should also result in significant welfare gains for the market in general.  Enforcement of axle load regulations. The enforcement of regulations to reduce road deterioration will have an immediate impact across all operators, both formal and informal. There is concern that axle load enforcement may lead to greater opportunities for corruption and rent seeking, a burden that may fall more heavily on small, informal, and already less-compliant operators. However, newer and more efficient trucks that can make more frequent trips have less need to overload than older trucks that are more limited in the number of loads they can manage over a given period. Many operators could find themselves unprofitable and uncompetitive if they can no longer overload and cannot modernize their fleet.  Reduce road transport prices. Establishing a pilot freight exchange and revising the bilateral road transport agreement between Burkina Faso and Côte d’Ivoire will, in all probability, result in the elimination or downsizing of certain intermediaries currently assigning loads and acting as brokers between shippers and truckers. This will clearly affect the livelihoods of those presently engaged in this activity.  Interconnection of customs. The suppression of the need to submit a domestic transit customs declaration into the Burkina Faso customs information technology system at the inland border will both reduce border crossing delays, affecting the livelihood of the population providing services to truckers (accommodation, restauration, and so on), and make redundant clearing and forwarding agents located at the border. 82. A considerable amount of information exists on the transport sector in West Africa, and numerous surveys and analyses have been undertaken on the trucking industry related to issues. Therefore, the aggregate macro impacts of many of these supported reforms are well-understood. However, there is relatively less information on the likely impacts of reform with regard to the scale of job losses among vulnerable groups, the possibility for reemployment in other industries, the net impact on poverty, or the potential compensatory measures. These issues are the focus of the Poverty and Social Impact Analysis (PSIA) undertaken for both countries, which has informed the design of the program and mitigating measures and was in end-July 2015. The program already takes into account the conclusions of both the PSIA and a related political economy analysis, such as the transition period for the professionalization of the trucking industry, the sequencing of reforms, the full engagement of all public and private stakeholders and promotion of dialogue, the incorporation of meaningful compensatory measures, and the parallel development of a TA program to accompany implementation 35 of complex and sensitive reform. 83. Potential negative impacts of the reforms on particular groups will be carefully mitigated through appropriate measures and TA. The Burkinabe and Ivorian authorities have identified specific vulnerable groups to which they intend to provide support as reforms are implemented, mainly truckers and transport intermediaries (coxeurs and gnamboro). In Côte d’Ivoire, the Ministry of Transport has already launched initiatives to support these groups, for instance to train several hundred drivers and help them form cooperatives. Going forward, additional accompanying measures are notably considered to facilitate compliance with the new access to the profession criteria, where the potential social impact and political sensitivity are highest. Importantly, a transition period was planned in both countries to leave operators enough time to adapt to the new framework or find viable alternatives. As the most vulnerable are older, illiterate informal truckers, a transition period will allow for many of these operators to phase out of the industry over time. For others, support could include reconversion with a focus on local or passenger transport, or professional retraining in other fields. For many small informal truckers, transport represents a secondary activity and there may be opportunities, through training or other means of support, to facilitate their transition to one of their other, often more profitable, activities on a more full-time basis. Envisaged vehicle scrappage schemes could provide start-up capital for these other activities and could also provide resources for older truckers exiting the industry. For operators able to comply with the new regulatory framework, accompanying measures would include support to acquire new trucks,15 with a particular focus on providing access by small capable operators, promotion of small operator groupings,16 and training and capacity building. The design of this program will be informed by the experience acquired by the World Bank to support the modernization of the transport sector and manage social consequences in similar contexts, such as the successful case of urban transport modernization in Senegal. Other accompanying measures will include capacity building for the Ministries of Transport and professional associations to implement reforms and communication campaigns to ensure these are known, understood and accepted by all stakeholders. Some resources provided under the proposed budget support operation could be used by the countries to finance certain accompanying measures. As mentioned earlier, the World Bank is preparing complementary projects to provide the required TA and facilitate access to finance to support the renewal of the truck fleet. 5.2 ENVIRONMENTAL ASPECTS 84. The reforms supported by the RTFCC series are not expected to have a negative impact on the environment, forests, wildlife, or other natural resources. On the contrary, an analysis of activities under all five pillars suggest that several measures should have positive environmental impacts. Supported actions to promote the sustainable development of the transport sector should notably help reduce the greenhouse gas emissions that are mainly responsible for climate warming and the occurrence/aggravation of diseases such as asthma, bronchitis, heart diseases and respiratory allergies. In particular, the reforms should help in the following ways: 15 The development of a fleet renewal mechanism is a prior action under the proposed series for both operations. IFC as well as other donors, such as the AfDB and U.S. Agency for International Development, have been approached to see how they could support such a mechanism, which could include a line of credit guarantee, vehicle scrappage scheme (prime à la casse), customs duty exemption on imports of new vehicles, and so on. 16 As noted earlier, both countries have expressed their interest in promoting the Groupement d’Intérêt Economique (Economic Interest Group) status for such groupings. 36  Reforms related to the implementation of axle load limits will contribute to ensuring road sustainability, thereby limiting recurrent rehabilitation works and the related negative impacts on the environment and populations established alongside roads.  Reforms contributing to the reduction of time between trips and border crossing time, for instance, through the introduction of a virtual freight exchange and interconnection of customs, should have a positive impact on the environment by minimizing the quantity of greenhouse gas emissions, such as carbon dioxide and sulfur dioxide, and reducing potential pollution of soil and water by oil, petroleum, and other liquid waste produced by truckers during long stay at the borders.  Finally, one of the most positive environmental impacts of the reforms supported by this operation is expected to come from the renewal of the truck fleet in both countries, as well as improved training of truck drivers. This will contribute to reducing road accidents and to minimizing the emissions of greenhouse gas. However, the vehicle scrappage scheme will need to be carefully managed to avoid any negative environmental impact. The Governments are aware of the possible environmental implications of such a scheme, and are considering mitigating measures, such as the establishment of special disposal facilities. One option under consideration is to condition the payment to owners of old trucks of a prime à la casse on the disposal of their vehicle at an authorized facility operated by a private operator. 85. The impacts of the reforms supported by the RTFCC will be monitored and addressed through the national procedures in place in each country. During the preparation of the first operation, the team discussed the different reforms supported with the Bureau National des Évaluations Environnementales (National Bureau of Environmental Assessments) in Burkina Faso and with the Agence Nationale de l’Environnement (National Environmental Agency) in Côte d’Ivoire. The two agencies will be involved in the national monitoring committees for the operation and will prepare environmental assessments as needed. 5.3 PFM, DISBURSEMENT, AND AUDITING ASPECTS 86. The PFM framework in Burkina Faso has been strengthened in recent years and is considered solid. The 2010 and 2013 public expenditure and financial accountability assessments showed clear progress toward comprehensiveness and transparency of the budget, policy-based budgeting, and internal controls, as well as the compliance of budget preparation, approval, and amendment procedures with good practices. The PFM reform program (Programme de Réforme de la Gestion Budgétaire, Budget Management Reform Program), has been updated with the support of most of the donors in the Multi-Donor Budget Support Group (Cadre Général d’Organisation des Appuis Budgétaires), based on the findings of various PFM diagnostics. Moreover, the Government is in the process of aligning its PFM systems with current WAEMU directives. The Government has adopted the WAEMU Transparency Code and is working on a strategy to align its national legislation with WAEMU’s six new PFM directives. Alignment with those directives will ensure convergence of the system with international standards of public finance. The estimation and collection of tax arrears has been identified as a key PFM weakness. The World Bank is working closely with the authorities to prepare a sound medium-term debt strategy. 87. After four years of modest but sustained success in improving PFM, Côte d’Ivoir e is now 37 embarking on a new stage in the reform process. PFM in Côte d’Ivoire has been negatively impacted by the decade-long political crisis. However, the authorities are consolidating recent improvements in budget preparation, execution, control, and reporting. The Public Expenditure Management and Financial Accountability Review diagnostics conducted in 2008 and 2013 showed significant progress in several areas and identified priorities for further reforms. The Government has now begun the task of aligning its PFM systems with WAEMU directives in this area. Near-term reforms will focus on (a) building capacity for budget preparation, including public investment planning, through the use of a Medium-Term Expenditure Framework, along with multiyear programming documents and macroeconomic modeling techniques; (b) limiting the recourse to cash advances and other exceptional spending procedures; (c) enhancing the transparency and efficiency of public procurement by building the capacity of procurement authorities and strengthening management and control mechanisms; and (d) reinforcing internal and external audit and control functions. 88. The budgets of both Burkina Faso and Côte d’Ivoire are published annually and are available online. The annual budget, quarterly budget execution report, budget midterm review, and annual settlement law are made available on the websites of the Directorate General of the Budget of the Burkinabe Ministry of Finance and the Directorate General of the Budget and Finances of the Ivorian Ministry of the Budget.17 89. The BCEAO, the common central bank of the eight WAEMU countries, including Burkina Faso and Côte d’Ivoire, continues to improve its governance structure. The latest Safeguards Assessment of the BCEAO was completed by the IMF in December 2013. The assessment found that the Central Bank continues to have a strong control environment and has enhanced its governance framework, with the implementation of WAEMU’s Institutional Reform of 2010. Specifically, an audit committee was established to oversee the audit and financial reporting processes, transparency has increased with more timely publication of the audited financial statements, and the BCEAO is committed to implementing International Financial Reporting Standards. The assessment also identified some limitations in the external audit process and recommended that steps be taken to ensure the adequacy of the mechanism through selection of a second experienced audit firm to conduct joint audits. 90. The proposed operation would consist of single tranche credits of Euro 45.7 million (US$50 million equivalent) for each country, to be made available upon effectiveness and disbursed on the basis of a withdrawal application.18 The credits will follow the World Bank’s disbursement procedures for DPOs. Once the operation becomes effective, the Governments of Côte d’Ivoire and Burkina Faso will submit withdrawal applications to IDA requesting that the proceeds of the credit be deposited in the BCEAO into a euro dedicated account that forms part of each country’s official foreign exchange reserves.19 Within five working days after the deposit of the credit into said account, each recipient shall ensure that an equivalent amount is credited in its budget management system in a manner acceptable to the World Bank, and each recipient will report to the World Bank on the amounts deposited in its 17 Respectively, www.dgb.gov.bf and www.budget.gouv.ci. 18 The credits will be financed under single currency IDA credit terms, with a 38-year maturity including a 6-year grace period for Burkina Faso (regular terms), and a 25-year maturity including a 5-year grace period for Côte d’Ivoire (blend terms). The single currency amounts (€45.7 millio n for each country) will be converted to the final SDR amounts (SDR 36.4 million for each country) for commitment authority and country allocation management purposes on the day of project approval. 19 The use of a dedicated account is a common feature of budget support operations in the WAEMU member states and mitigates fiduciary risks. 38 foreign currency account and credited to its budget management system. Disbursement will not be linked to specific purchases. When the funds are disbursed from the dedicated account to finance budgeted Government expenditures, the official exchange rate for that day will be used. If the proceeds of the credit are used for ineligible purposes, as defined in the Financing Agreement, IDA will require the recipient to refund an amount equal to the amount of said payment to IDA promptly, upon notice from IDA. Amounts refunded to the World Bank upon such a request shall be cancelled. 5.4 MONITORING, EVALUATION, AND ACCOUNTABILITY 91. An institutional structure for the coordination and monitoring of reforms was agreed to with both countries. In each country, focal points have been designated to follow reforms under each of the two main pillars of the RTFCC (transport and customs) and coordinate the actions of the different institutions concerned. The two pillars are brought together through national committees that will hold frequent coordination meetings and be overseen by coordinators from each Ministry of Finance. The national committees of the two countries will periodically meet to manage the overall program of reforms, including joint actions. The Traité d’Amitié et de Coopération (Friendship and Cooperation Treaty, TAC) signed by the countries in 2008, which includes provisions on transport and trade facilitation as well as institutional arrangements for joint monitoring of transport issues, appears to be an appropriate framework under which this coordination can take place.20 This structure, notably sectoral focal points, plays a major role to ensure that a close dialogue can be maintained between the countries and with the World Bank. 92. Results indicators for the different pillars have been selected based on the possibility of collecting the required data. The national RTFCC committee in each country will also request reports from the involved agencies on the degree to which the agreed measures are being enforced (for example, on access to the profession and axle load control). 93. Grievance redress. Communities and individuals who believe that they are adversely affected by specific country policies supported as prior actions or tranche release conditions under a World Bank Development Policy Operation may submit complaints to the responsible country authorities, appropriate local/national grievance redress mechanisms, or the WB’s Grievance Redress Service (GRS). The GRS ensures that complaints received are promptly reviewed in order to address pertinent concerns. Affected communities and individuals may also submit their complaint to the WB’s independent Inspection Panel, which determines whether harm occurred, or could occur, as a result of WB non-compliance with its policies and procedures. Complaints may be submitted at any time after concerns have been brought directly to the World Bank's attention, and Bank Management has been given an opportunity to respond. For information on how to submit complaints to the World Bank’s corporate Grievance Redress Service (GRS), please visit http://www.worldbank.org/GRS. For information on how to submit complaints to the World Bank Inspection Panel, please visit www.inspectionpanel.org. 20 The two countries meet regularly at the level of heads of government and heads of states. The third meeting of heads of States under the TAC in July 2013 notably stated: “ Regarding the fluidity of traffic and free circulation of persons and goods, the Conference saluted the efforts to reduce the number of checkpoints and encouraged the continuation of awareness campaigns and actions to remove illicit roadblocks. It welcomed the signature of the Additional Protocol to the Friendship and Cooperation Treaty establishing the Joint Committee to monitor traffic fluidity and the free circulation of persons and goods on the corridors linking the two countries. […] It also welcomed the signature of the joint decision regarding the facilitation of trade, transport and transit on the corridors between the Republic of Côte d’Ivoire and Burkina Faso.� 39 6 SUMMARY OF RISKS AND MITIGATION 94. The overall risk rating of the proposed operation is High. Even though both Burkina Faso and Côte d’Ivoire have a good track record of implementing reforms, the complexity and diversity of the reforms considered, some of which have a challenging political economy, and the innovative nature of the operation all contribute to the risk of reform slippage. The operation has considerable ownership by the respective Governments and across stakeholders who all recognize the need for change of the status quo, which suggests that the risks are manageable. Table 6 presents the proposed operation’s rating for the different risk categories. Table 6. Summary Risk Ratings Risk Categories Rating (H, S, M, or L) 1. Political and governance H 2. Macroeconomic M 3. Sector strategies and policies L 4. Technical design of project or program S 5. Institutional capacity for implementation and sustainability M 6. Fiduciary M 7. Environmental and social H 8. Stakeholders H 9. Other — Overall H 95. The main risks associated with the proposed operations, as well as proposed approaches to mitigating them, are discussed in the following paragraphs:  Political and governance. The political and security situation has stabilized after the October 2014 events in Ouagadougou and the successfully organized presidential elections of end-2015 in each country. While political continuity is expected, careful monitoring is required to ensure that the Burkinabe and Ivorian authorities maintain fiscal discipline and appetite for difficult reforms. There have been some political tensions between the two countries in the aftermath of the failed coup attempt in September 2015, but the Burkinabe and Ivorian authorities have sent clear signals that this is being solved diplomatically and that cooperation between the two countries will be intensified. The regional and global terrorist threat, as experienced recently in Ouagadougou and Grand Bassam, has also become a source of uncertainty. The alignment of the operation with national reform priorities, the involvement of all stakeholders in consultations to elaborate the operation’s program, and strong political commitment expressed at the highest level in the two countries all contribute to the expectation that the reform momentum will be maintained.  Macroeconomic. Both Burkina Faso and Côte d’Ivoire remain vulnerable to price changes and/or adverse weather conditions that may affect their main export commodities, cocoa and gold/cotton. Negative shocks would affect external balances, fiscal position, and rural income. On the domestic front, the fiscal space has narrowed in both countries, partly because of their weak capacity to mobilize fiscal revenues. The reduction of trade and transport costs expected from measures supported by the RTFCC will improve 40 competitiveness as well as broaden the tax base and partially offset such risk. A better environment for trade could also promote diversification of exports, reducing vulnerability to external shocks.  Technical design of project or program. This innovative operation, with the need for two countries to coordinate reforms in different areas, is challenging, indicating a Substantial risk rating. The proposed approach to mitigate this risk relies on the following: (a) limitation of the first series to a two-year program, possibly followed by a second series, depending on results; (b) establishment of an effective joint mechanism for the two countries to monitor reforms; and (c) regular consultations with the authorities and transparent communication concerning all aspects of the operation.  Institutional capacity for implementation and sustainability. The complex nature of some reforms (for example, reform of access to the trucking profession, introduction of freight exchanges, interconnection of customs) implies that the Governments may not have the technical capacity to implement them alone. To mitigate this risk, the team has ensured that measures included in the matrix reflect existing reform priorities of the Governments and that the Governments could leverage ongoing TA programs (for example, TA provided by the EU to the Ivorian Ministry of Transport, assistance on customs provided by AFRITAC West in both countries). The World Bank projects under preparation for each country will ensure that sufficient TA is available to them to fully implement the reforms.  Environmental and social. As discussed above, the potential adverse impact of some reforms on specific groups (for example, reform of access to the trucking profession) are high. These will be addressed through remedial measures designed in light of the forthcoming PSIA results and through the complementary World Bank TA program under preparation. Environmental impact is not expected to be negative overall and possible consequences will be addressed by working with the national environmental agencies in the two countries.  Stakeholders. Several measures supported by this operation are sensitive and may be resisted by powerful vested interests. Areas of highest risk are the reform of access to the trucking profession, as small operators may lose their jobs if they cannot meet the new criteria, and the liberalization of container delivery at the port of Abidjan (although the Government has repeatedly expressed strong commitment to change the status quo). In addition, measures such as the development of virtual freight exchanges may be resisted by intermediaries (coxeurs), who currently benefit from the status quo. Axle load standards have also proven to be a contentious issue in the past, and the planned enforcement of controls will require adequate conditions to be in place. The operation mitigates these risks through the political economy study and PSIA, which provided a deeper understanding of interests that could possibly block reforms and helped design measures to prevent reform slippage. Moreover, the policy matrix has been designed with careful attention to reform sequencing, to ensure that difficult reforms are only launched once the appropriate conditions have been created. Finally, the reform program was elaborated on the basis of extensive consultations organized with all stakeholders in the two countries during project preparation. 41 ANNEX 1: POLICY AND RESULTS MATRIX Prior Actions Area Results RTFCC1 (June 2015) RTFCC2 Pillar A Professionalizing and Formalizing the Trucking Industry Adoption of regulatory framework to A1 Business enabling redefine the criteria for access to the environment Adoption by the Recipient of regulations profession of commercial and own-account promoting (decrees and/or ministerial orders) road freight transport operator (with a professionalization strengthening the training system for road limited-duration transition period) and formalization of transport operators (BF, CI) following best international practices Number of formally registered the trucking industry adapted to the local context (BF; CI) transport operators under new criteria Ministry of Transport has convened for access to the profession trucking syndicates and enabled the  BF: 0 (2015)/300 (2017) A2 Professional adoption of by-laws (statuts) and rules of  CI: 0 (2015)/3,000 (2017) organization procedure (règlement intérieur) for an — representing the independent umbrella professional trucking industry association representing the trucking industry, in line with best international practices (CI) For purposes of applying WAEMU Regulation 14, and pursuant to the declaration by Adoption of an inter-ministerial order WAEMU infrastructure and transport Proportion of noncompliant trucks defining the respective responsibilities of ministers in Cotonou on September 23, 2016, A3 Implementation of controlled at weighing stations the Ministries of Transport and adoption by the Recipient of measures for (i) axle load regulations  BF: 80% (2015)/35% (2017) Infrastructure regarding truck weighing and acquisition and refurbishment of truck  CI: 85% (2015)/35% (2017) axle load regulations (CI) weighing equipment, and (ii) notification of increased sanctions for noncompliant operators (BF, CI) Pillar B - Modernizing the Organization of the Trucking Market B1 Efficiency of road Introduction by the Recipient of a virtual Volume of trade in Côte d’Ivoire transport operations — freight exchange that makes available carried under a consignment note: 3.9 through better information on incoming freight. (BF) million tons (2015)/5 million tons contractual relations Adoption by the Ministry of Transport of (2017) Mutual recognition of inter-state between trucking regulatory measures to organize the Number of transporters and shippers consignment notes by recipient and the companies and issuance of DUTs in lieu of consignment registered on the virtual freight Partner. BF (BSTR) and CI (DUT) (Joint) shippers notes (CI) exchange in Burkina Faso: 0 (2015)/ 30 42 Prior Actions Area Results RTFCC1 (June 2015) RTFCC2 Ministers of Foreign Affairs of both transporters or trucking companies countries enter into an agreement controlling a cumulated fleet of 150 (protocole d’accord) with their respective Signature by the Recipient and the Partner of trucks (whichever is higher) and 25 counterpart country to establish a joint a revised bilateral road transport agreement shippers (2017) technical committee for purposes of (protocole d’accord) dated May 12, 2016. BF renegotiating their ‘Protocole d’Accord de (BSTR) and CI (DUT) (Joint) Coopération en matière de Transports Routiers’ dated July 27, 1999 (Joint) Adoption by the Recipient of measures to support fleet renewal for compliant road transporters, through provisions to lower the cost of vehicles (notably tax and customs duty exemptions). (BF) B2 Efficiency of road Percentage reduction of new vehicle Adoption by the Recipient of measures to transport operations prices under fleet renewal mechanism support fleet renewal for compliant road through a more  BF: 0 (2015)/35% (2017) transporters through provisions to facilitate efficient truck fleet  CI: 0 (2015)/20% (2017) access to credit. (CI) Strengthening by the Recipient of the technical inspection of vehicles through the issuance of regulations, procedures or strategies. (BF; CI) Pillar C - Enhancing the competitiveness of maritime and inland gateways Adoption of an arrêté (order) by the 1) Reduction of container delivery Ministry of Transport liberalizing the prices in Abidjan compared to initial Adoption by the Recipient of a ministerial C1 Port and terminals activity of container delivery in Côte FEDERMAR tariff : 0% (2015)/25% order activating the Commission on operational efficiency d’Ivoire, including in the Abidjan (2017) Competitiveness of Ivorian Ports and and prices metropolitan area, and setting objective 2) Number of transport operators commencement of meetings. (CI) and open eligibility criteria for transporters authorized to deliver containers in (CI) Abidjan: 30 (2015)/50 (2017) Pillar D - Improving customs clearance Establishment by the Recipient of a pilot D1 Availability of Adoption by the Ministries of Commerce Proportion of transactions routed in TIWP in support of Article 1 of the WTO’s information on trade and Finance of an ministerial arrêté (order) customs’ red channel Trade Facilitation Agreement. (CI) procedures and for the preparation and maintenance of a  BF: 25% (2015)/10% (2017) Development and launch by the Recipient of regulations TIWP (BF, CI)  CI: 56% (2015)/30% (2017) the electronic-based trade single window 43 Prior Actions Area Results RTFCC1 (June 2015) RTFCC2 system. (BF) Strengthening by the Recipient’s customs administration of the risk management system through (i) introduction of automated Establishment by the customs selectivity for customs controls, and (ii) D2 Customs clearance administration of an automated and modernization of post-clearance audits procedures and operational database on traders’ risk (PCAs) procedures. (BF, CI) reward of compliance profiles (BF; CI) Adoption by the Recipient of a regulatory framework (decrees and/or ministerial orders) defining the criteria and functioning of an AEO scheme. (CI) Improvement by the Recipient’s customs D3 Professional Adoption by the customs administration of administration by strengthening: (i) its standards for a Code of Ethics and Good Governance for internal procedures for customs controls; and customs and logistics customs agents (CI) (ii) the oversight of licensed customs brokers. service providers (BF, CI) Pillar E - Facilitating transit Signing of an agreement (protocole d’accord) Signature by the two customs dated April 28, 2016 by the Recipient’s and administrations of an agreement regarding the Partner’s customs administration of a E1 Border crossing details for the interconnection of their pilot interconnection system allowing single procedures respective customs information systems transit declaration at the point of departure reflecting conclusions from a study phase for the transit between the two countries. (Joint) (BF, CI) Signature by the Burkinabe and Ivorian Average transit time between Abidjan Chambers of Commerce of an agreement and Ouagadougou: 140 hours to allow single payment of the ISRT Transit (2015)/100 hours (2017) Guarantee (Joint) Adoption by the minister of Finance of a E2 Transit regime ministerial order authorizing Burkinabe customs administration to suspend the collection of the ISRT Transit Guarantee at the Niangoloko border post at the border with the Republic of Côte d’Ivoire (BF) 44 Note: The matrix specifies, for each action, whether it applies to Burkina Faso, Côte d’Ivoire, or is a Joint Action; BF = Burkina Faso, CI = Côte d’Ivoire, Joint = Joint Action. 45 ANNEX 2: LETTER OF DEVELOPMENT POLICY MINISTERE DE L’ECONOMIE, DES FINANCES BURKINA FASO ET DU DEVELOPPEMENT Unité – Progrès-Justice --------------------------- --------------------------- MINISTERE AUPRES DU PREMIER MINISTRE REPUBLIQUE DE COTE D’IVOIRE CHARGE DE L’ECONOMIE ET DES FINANCES Union – Discipline – Travail ----------------------- --------------------------- Le 7 novembre 2016 Les Ministres A Monsieur Jim Yong Kim Président de la Banque Mondiale WASHINGTON DC Objet : Lettre de Politique de Développement de l’industrie des transports de marchandises au Burkina-Faso et en Côte d’Ivoire et du corridor de transit Abidjan-Ouagadougou (2015 – 2017) Monsieur le Président, La présente Lettre de Politique de Développement (LPD) retrace l’évolution de la situation socio-économique du Burkina-Faso et de la Côte d'Ivoire en 2015, ainsi que les tendances des économies burkinabé et ivoirienne en 2016. Elle énonce les objectifs spécifiques et les politiques sectorielles des Autorités des deux pays dans les domaines des Transports et des Douanes et aborde les perspectives dans ces deux (02) secteurs pour 2016. Pour la mise en œuvre de leurs Programmes dans ces secteurs, les Gouvernements burkinabè et ivoirien sollicitent l’appui de la Banque Mondiale. Ils rappellent par ailleurs qu’ils se sont résolument inscrits, avec l’accompagnement de la Banque Mondiale, depuis l’année 2015, dans 46 une dynamique d’intégration soutenue de leurs économies, par une harmonisation de leur législation respective et une collaboration dynamique de leurs Administrations dans les secteurs concernés. Suivant le chronogramme mis en place à cet effet, ce processus court jusqu’en fin 2016. En conséquence, les deux Etats souhaitent bénéficier, pour la deuxième année de ce processus, d’un Appui Budgétaire Régional pour le Burkina Faso et la République de Côte d’Ivoire pour un montant équivalent à cinquante (50) millions de Dollars US pour chaque Etat. I. CONTEXTE a- Cadre du développement au Burkina Faso et en Côte d’Ivoire L’activité économique du Burkina Faso, après une année 2015 marquée par une croissance économique ralentie à 4,0% contre 4,2% en 2014, a repris de manière graduelle durant la première moitié de 2016 et les perspectives pour l’année sont favorables. Elle s’est accrue de 4,7 % au premier trimestre, reflétant l’impact des attentats terroristes de janvier, et de 8,3% au deuxième trimestre de 2016 (en glissement annuel) tirée par une nette reprise du secteur tertiaire. Le pays a adopté le 20 juillet 2016 le Plan national de développement économique et social (PNDES) en tant qu’instrument d’orientations stratégiques du développement économique et social pour la période 2016-2020. Le PNDES vient en remplacement de la Stratégie de croissance accélérée et de développement durable (SCADD) 2011-2015 et tire ses fondements du programme "Bâtir avec le peuple un Burkina Faso de démocratie, de progrès économique et social, de liberté et de justice" de Son Excellence Monsieur Roch Marc Christian KABORE, Président du Faso, de la vision Burkina 2025 et les engagements internationaux (l’Agenda 2063 de l’Union Africaine et les Objectifs de développemen t durable) auxquels le Burkina Faso a souscrit. L’objectif global du PNDES est de transformer structurellement l'économie burkinabè, pour une croissance forte, durable, résiliente, inclusive, créatrice d'emplois décents pour tous et induisant l'amélioration du bien-être social. Le coût global de la mise en œuvre du PNDES est évalué à 15 395,4 milliards FCFA, représentant un coût annuel moyen de 3 079,1 milliards FCFA. Il sera financé à hauteur de 63,8% par des ressources propres (9 825,2 milliards FCFA) et à 36,2% soit 5 570,2 milliards FCFA par d’autres sources. La part consacrée aux dépenses d'investissements sera de 54,6%, correspondant à une enveloppe globale de 8 408,2 milliards FCFA sur la période, soit 1 681,6 milliards FCFA par an. En ce qui concerne la Côte d’Ivoire, elle a renoué, depuis 2012, avec une croissance forte, soutenue et inclusive, respectueuse du genre et de l’environnement dans un cadre macroéconomique stable. L’exécution du Plan National de Développement (PND 2012-2015) 47 couplée à la mise en œuvre de réformes structurelles de grande ampleur ont permis d’impulser et de maintenir un rythme de croissance soutenu de l’activité économique. Ainsi, le taux de croissance du PIB s’est établi en moyenne à 9,0% sur la période 2012-2015. Le secteur privé a fortement contribué à pérenniser cette croissance, notamment à travers les investissements massifs dans les secteurs énergie, minier et BTP, le développement des services, ainsi que la mise en place des unités de transformation des produits agricoles. Ce dynamisme de l’activité économique s’accompagne d’une inflation modérée, en-dessous de la norme communautaire de 3%, de l’amélioration de la gestion des finances publiques et d’une évolution favorable du solde des transactions courantes. Cet environnement économique propice a permis le repositionnement de la Côte d’Ivoire sur l’échiquier international. Le retour de la Banque Africaine de Développement (BAD) à Abidjan, l’ouverture de l’Agence sous régionale de la Banque Africaine d’Import-Export (AFREXIMBANK), le retour des sièges régional et national du Bureau International de Travail, de AfricaRice et l’entrée réussie de la Côte d’Ivoire sur le marché international des capitaux en sont une illustration. Le maintien de ce sentier de croissance et la consolidation de la nouvelle stratégie de développement (PND 2016-2020) devraient favoriser la réduction substantielle de la pauvreté et l’atteinte de l’émergence à l’horizon 2020. Un accent particulier sera mis sur une participation accrue du secteur pr ivé au processus de développement ainsi que l’amélioration des conditions du développement humain à travers notamment, la mise en œuvre des Programmes « Ecole pour Tous », « Electricité pour Tous », « Un Citoyen, Un Ordinateur et Une Connexion Internet », la Couverture Maladie Universelle et l’amélioration de l’accès à l’eau potable, ainsi que l’autosuffisance alimentaire. Il résulte des situations ainsi globalement présentées, les situations spécifiques ci-après : a.1 Cadre du développement au Burkina Faso La croissance réelle du PIB devrait s’établir à 5.4% en 2016 soit un rebond de 1,4 point de pourcentage par rapport à 2015. Tenant compte des prix du pétrole relativement bas, de la bonne tenue des cours de l’or et du coton ainsi que d’une pluviométrie fav orable, la reprise devrait s’étendre à tous les secteurs. Le secteur primaire devrait reprendre avec une hausse de sa valeur ajoutée de 3,8% en 2016 après une contraction de 1,2% en 2015, imputable principalement au rebond de la production agricole. En ou tre, le maintien de l’activité dans les secteurs secondaire (+4,1%) et des services (+5,2%) devrait consolider le dynamisme de l’activité économique. Ainsi, le secteur secondaire devrait tirer profit de la stabilité de l’activité d’extraction, de la poursuite des travaux d’investissement dans les infrastructures socioéconomiques, de la bonne tenue du sous-secteur de l’énergie renforçant le redressement de l’activité dans les manufactures. Quant au secteur des services, il bénéficierait de la bonne orientation de l’activité dans les télécommunications, les services financiers et dans une 48 moindre mesure les services non marchands en lien avec les transferts de l’administration publique. Dans un scénario plus optimiste, la production céréalière pourrait rebondir de 8% (6% dans le scénario de base), ce qui tirerait la croissance à 5,9%. La croissance du crédit au secteur privé devrait rester faible à 9,2%, soit en dessous des taux de progression de 20 à 25 % de ces dernières années avant la transition politique. Les avoirs extérieurs nets, par contre, pourraient connaitre une croissance de l’ordre de 15 % entrainant un taux de croissance de la masse monétaire à 13,3 % en 2016 par rapport à 2015. L’inflation annuelle devrait rester modérée et se situerait à 0,7% à fin 2016. Cette évolution résulterait du net recul de la fonction « produits alimentaires et boissons non alcoolisées » en raison des bonnes perspectives de récoltes attendues et de la baisse de la fonction transport. Elle traduit également la baisse des prix des produits pétroliers enregistrée sur l’année. 49 Au niveau des finances publiques, une deuxième Loi de finances rectificative (LFR) a été votée par l’Assemblée Nationale le 21 juillet 2016. Cette loi de finances prend en compte d’une part, de nouveaux besoins qui sont apparus après l’adoption de la 1 ère LFR et d’autre part, des perspectives de nouvelles ressources. En rappel, la première LFR permettait de prendre en compte d’une part la nouvelle configuration du Gouvernement à l’issue des élect ions présidentielle et législatives du 29 novembre 2015 et d’autre part, l’incidence des mesures gouvernementales relatives à la relance de l’activité économique et à l’apaisement du climat social. Conformément aux objectifs fixés, les recettes totales (hors dons) devraient s’améliorer à 18,3 % du PIB, pour presque retourner aux niveaux atteints avant la baisse enregistrée en 2014 et 2015. Le retour à un climat politique serein contribue à favoriser une collecte plus productive des recettes. Il en est de même des réformes fiscales et autres mesures de renforcement des capacités entreprises durant l’année, notamment l’élargissement de l’assiette fiscale entrepris depuis la fin de l’année 2015, l’intensification des actions de contrôle et de recouvrement, l’adoption d’une stratégie d’optimisation de la communication et de la sensibilisation des contribuables au civisme fiscal, la poursuite de la segmentation qui permet une bonne maîtrise des couches fiscales et l’amélioration de leur contribution ; l’activation du champ 44 de SYDONIA WORLD pour la saisie obligatoire des références de l’attestation de vérification COTECNA ; le contrôle des entrepôts et des destinations finales des marchandises ; la réalisation du projet du Système de liaison virtuelle pour les opérations d’importation et d’exportation (SYLVIE) ; le suivi satellitaire des marchandises en transit ; le suivi des clauses fiscales et douanières des marchés publics financés sur ressources propres ;l’installation et l’exploitation du nouveau scanner à Ouaga-route ; et l’intensification des actions de lutte contre la fraude. Les recettes non-fiscales ont également bénéficié de dividendes exceptionnels de la part de SONABHY, pour environ 0,5% du PIB. Les dépenses courantes passeraient de 14,6 à 14,9 % du PIB (comparé avec la première LFR), principalement en raison d’une augmentation de la masse salariale qui passerait désormais à 7,4% du PIB de 2016 (contre 7,2% dans la LFR et 6% en 2013). Cette augmentation provient essentiellement de l’impact de la loi 081 sur le statut des fonctionnaires. Ladite loi permet de mettre fin à la dualité du profil des agents de la fonction publique. Ainsi, le Gouvernement a opté d’harmoniser la rémunération à travers l’alignement des fonctionnaires sur les contractuels. Cette loi permet aux fonctionnaires et contractuels de se retrouver dans une nouvelle situation catégorielle, de classification et d’échelonnement. Au titre du budget, gestion 2016, l’incidence financière de la loi 081 est de 25,89 milliards FCFA. Les dépenses d’investissement passeraient de 7,6 à 9,5% du PIB suite à l’intégration de nouveaux projets tels que le pôle de croissance du sahel ; le projet appui au financement 50 adapté à l’agriculture familiale, l’opérationnalisation de la facture normalisée, le pro jet BID_UEMOA et le projet adaptation basée sur les écosystèmes. Le déficit budgétaire global (base caisse) devrait s’établir à 2,5% du PIB en 2016, en léger retrait par rapport à 2015. Ce déficit devrait être financé par des ressources extérieures nettes de 129,4 milliards de FCFA ainsi que par un financement domestique (hors amortissements) incluant un montant de 165 milliards de FCFA d’émissions d’obligations et 303,5 milliards de FCFA de bons du trésor. Le suivi de l’exécution budgétaire à fin septembre 2016 indique une excellente performance des recettes propres, qui atteignent 98% des projections, y inclus les dividendes exceptionnels déjà perçus. Les dépenses courantes sont en ligne avec les projections, mais les dépenses d’investissement restent en deçà à 77% des objectifs pour fin septembre et 50% du budget annuel. L’accélération de l’exécution des projets d’investissement publics d’ici à la fin de l’année devrait être rendue possible par la mise en œuvre des mesures d’allègement des conditions d’exécution des projets et programmes et activités de développement, votées par l’Assemblée Nationale en juillet 2016. Ces allègements portent essentiellement sur : (i) le rehaussement des seuils de passation des marchés publics, (ii) la réduction des délais de mise en concurrence des soumissionnaires en matière de marchés publics, de délégation de service public et de Partenariat public-privé, (iii) la réduction des délais d’approbation des contrats, (iv) la suppression de la double-revue pour les marchés financés sur ressources extérieures et (v) l’assouplissement des conditions d’approbation des travaux des commissions d’attribution, de sélection des marchés, des délégataires du service public et du partenaire privé. La politique d’endettement du gouvernement vise à préserver un risque « modéré » au regard de l’analyse de viabilité de la dette basée sur divers indicateurs (y inclus les ratios de la dette publique au PIB, aux recettes fiscales et aux exportations) et divers scénarii de risques. Notre portefeuille de projets PNDES comprend des investissements structurants dans les secteurs de l’énergie, des infrastructures routières et hydroagricoles et des télécommunications. La stratégie de financement retenue continuera de privilégier les dons et financement concessionnels, la poursuite du recours au marché financier régional à des maturités graduellement plus étendues. Les actions visant le développement du PPP seront poursuivies de manière prudente afin d’éviter l’accumulation de risques et passifs contingents pour l’État. Le recours à des financements non-concessionnels est envisagé mais à des termes plus favorables que les conditions de marché tels que la finance islamique. Pour 2016, le montant total des emprunts concessionnels et non-concessionnels signés et à signer s’élèvera à 217,9 milliards de FCFA dont 68,8 milliards de FCFA en emprunts non- concessionnels et 149,16 milliards de FCFA en emprunts concessionnels. Perspectives économiques et financiers pour 2017 et objectifs à moyen terme 51 En ce qui concerne 2017, la croissance devrait continuer à se raffermir pour se situer entre 6 et 7 pourcent selon les estimations provisoires du FMI dont les travaux de la 6 e revue de la facilité Elargie de crédit se déroulent du 18 au 31 octobre 2016. Les principaux facteurs contribuant à cette bonne performance seraient l'activité minière, avec la mise en opération de deux nouvelles mines d’or, portant ainsi à dix (10) le nombre de mines industrielles en exploitation, ainsi que la mise en œuvre sur une année entière du programme d’investissements publics dans les domaines de l’énergie, des routes, des aménagements hydroagricoles, des infrastructures de télécommunications, etc. A moyen terme, la croissance pourrait se maintenir aux environs de 7% sous l’impulsion de la mise en œuvre du PNDES, notamment de l'amélioration progressive de l'approvisionnement en énergie. Le raffermissement de l’activité serait imprimé par la dynamique de l’ensemble des secteurs qui devraient bénéficier des actions prévues en matière d’investissement. Ainsi, le secteur secondaire connaîtrait la plus forte progression de sa valeur ajoutée du fait de l’expansion de l’activité minière en lien avec une production d’or en accroissement d’au moins 41 tonnes d’or en 2017 et qui atteindrait plus de 46 tonnes à partir de 2018 et un début d’exploitation de la mine de manganèse à partir de 2020. A cela s’ajoute l’intensification des investissements notamment dans les infrastructures énergétiques en vue d’améliorer progressivement l’offre d’énergie au profit des manufactures et dans les infrastructures de transport, toute chose qui devrait confirmer le redressement de la branche des bâtiments et travaux publics. La consolidation des actions dans le domaine agro-sylvo-pastoral à travers la poursuite de l’opérationnalisation des pôles de croissance (Bagré, Samendenni-Sourou, Sahel) et la vigueur de l’activité dans les services contribueraient au renforcement de l’activité économique sur la période. L'inflation devrait rester modérée (suivant l'évolution des prix à l'importation) et en dessous du critère de l'UEMOA de 3% tandis que le crédit au secteur privé devrait reprendre du rythme. Pour accompagner le secteur privé à jouer pleinement son rôle de moteur de croissance dans le contexte d’opérationnalisation du PNDES, le Gouvernement entend entre autres poursuivre sa politique d’apurement de la dette intérieure, renforcer les actions d’amélioration du climat des affaires et de sécurisation des investissements et accélérer la mise en œuvre des réformes amorcées en 2016 pour plus de célérité et d’efficacité dans l’exécution des dépenses. Le PNDES envisage un scénario encore plus optimiste, qui verrait la croissance s’établir à 8,4% en 2017 et à 8,2% en moyenne en 2018-2020. Ce scénario repose sur l’hypothèse d’un niveau important des investissements publics pour soutenir la transformation structurelle de l’économie. Dans cette optique, l’accélération de la croissance économique résulterait de la consolidation de l’activité dans les services, de l’amélioration progressive du tissu industriel notamment les manufactures, l’expansion de l’activité minière et l’accroissement de la productivité dans le secteur primaire. Ces scénarios favorables comportent toutefois un certain nombre de risques, externes et internes, qui ne sont pas négligeables et pourraient avoir un impact négatif sur la croissance. Il s’agit notamment d’une dégradation possible de la situation sécuritaire régionale, une baisse des cours de l’or et du coton, une augmentation des prix du pétrole, une mauvaise pluviométrie 52 entraînant une baisse de la production agricole, une récession prolongée en Europe ou des conditions financières moins favorables sur le marché régional. Du côté des risques internes, on peut citer une dégradation du climat social entraînant une augmentation de la masse salariale et transferts au détriment des investissements, ainsi que des goulets d’étranglement persistants dans la capacité de mise en œuvre et/ou la capacité d’absorption qui pourraient ralentir l’exécution du budget. A cela s’ajoute, l’éventuel risque financier en lien avec la faible mobilisation des ressources aussi bien interne et externe pour le financement du PNDES ainsi que la faible adhésion des acteurs participant au processus de développement national. Cependant, pour minimiser ces risques, des mesures d’atténuation ont été identifiées à savoir : - améliorer les dispositifs de renseignement, de sécurité et renforcer les coopérations militaires et sécuritaires ; - promouvoir un environnement politique apaisé et une justice équitable ; - poursuivre les actions pour accroître la mobilisation des ressources internes et maitriser certaines catégories de dépenses ; - diversifier la base exportable avec un accent sur la transformation des produits locaux de bases ; - mettre en place un dispositif institutionnel approprié pour le pilotage et le suivi du PNDES. Le transport en général et le transport routier en particulier, étant l’instrument de facilitation des échanges commerciaux, le Burkina Faso souhaite engager une série de réformes afin de créer les conditions optimales de sa pleine participation à l’atteinte des objectifs de son développement économique et de l’intégration sous régionale. Dans un pays sans littoral comme le Burkina Faso, le secteur des transports joue un rôle essentiel pour le désenclavement intérieur et extérieur. La vitalité du commerce extérieur burkinabé est largement tributaire du fonctionnement optimum de son système de transport. Le pays bénéficie pour son transport international de la mise en compétition de plusieurs ports de transit. Il peut tirer de ce fait un avantage certain par une mise en concurrence de certains corridors de desserte. En effet, les flux de transport routier international (import-export) empruntent quatre(04) grands axes au départ à destination des deux (02) grandes villes que sont Bobo-Dioulasso et Ouagadougou. Il s’agit des corridors togolais, béninois, ghanéen et ivoirien. Le corridor Abidjan-Ouagadougou, avec une double desserte ferroviaire et routière est le plus important dans le cadre de la desserte du Burkina pour une meilleure compétitivité de son économie. 53 Les ports de San-Pedro et surtout d’Abidjan du fait de cette double pénétration et de leurs capacités peuvent être considérés comme les ports naturels de transit pour le Burkina. Il convient malheureusement de relever que la situation du secteur des transports d’une manière générale et principalement sur le corridor Burkina-Côte d’Ivoire est frappée par d’importants dysfonctionnements et autres distorsions qui obèrent la qualité des échanges entre les deux (02) pays et d’une manière générale, le commerce extérieur du Burkina Faso. a.2 Cadre du développement en Côte d’Ivoire La Côte d’Ivoire a réalisé des progrès notables qui l’ont positionnée sur une trajec toire de croissance forte, durable et inclusive. La mise en œuvre du Programme National de Développement (PND 2012-2015) a permis la réalisation d’ouvrages majeurs dans le transport, la communication, l’approvisionnement en eau potable, l’éducation, la santé et l’énergie. Avec un taux de croissance moyen du PIB estimé à 9,0% sur la période 2012-2015, la Côte d’Ivoire est classée parmi les pays à forte croissance dans le monde. Ces bons résultats économiques ont permis d’accroître le PIB par habitant de l’o rdre de 27,3% en trois ans. Cette performance découle notamment de la forte augmentation des investissements (de 9% du PIB en 2011 à 20,1% du PIB en 2015) dont 13,3% du PIB pour les investissements privés, liés en particulier à l’amélioration du climat des affaires. En effet, les efforts de la Côte d’Ivoire lui ont permis de gagner 35 places dans le classement «Doing Business» de 2012 à 2015 et de figurer parmi les dix meilleurs réformateurs au monde, en 2013 et 2014. Ces actions ont contribué à un accroissement substantiel du nombre d’entreprises créées qui a augmenté de 2 775, en 2013, à 9 534 en 2015. Par ailleurs, environ 150 000 emplois ont été créés dans le secteur moderne, depuis 2012. Les investissements directs étrangers se sont accrus de 18% en moyenne, sur ladite période. Le Gouvernement compte se maintenir dans le groupe de tête des pays réformateurs dans le monde pour rejoindre, dans les prochaines années, les cinquante premiers du rapport «Doing Business» de la Banque Mondiale. L’inflation (1,2% en 2015) est restée modérée depuis 2012 (1,4% en moyenne annuelle), conformément à la norme communautaire de l’UEMOA. Ces résultats traduisent les actions engagées par le Gouvernement dans le cadre de la mise en œuvre du Programme National d’Investissement Agricole (PNIA) et de l’application de la directive communautaire en matière de fluidité routière. Au niveau des finances publiques, le déficit budgétaire est passé de 4,1% du PIB, en 2011, à 2,9% en 2015. Ce résultat reflète à la fois, l’amélioration de la collecte des recettes fiscales et la rationalisation des dépenses qui ont permis de dégager de la marge budgétaire pour accroître les dépenses d’investissement et « pro-pauvres ». Les dépenses pro-pauvres sont passées de 54 7% du PIB en 2011 à 9,3% du PIB en 2015. Le taux d’investissement public s’est établi à 6,6% du PIB en 2015 contre 2,4% en 2011. Le solde des transactions courantes est passé d’un déficit de 1,2% du PIB en 2012 à un déficit de 0,5% du PIB en 2015, grâce à l’amélioration des termes de l’échange, à la vigueur des exportations. Le solde global s’est amélioré sur la période 2012-2015, sous l’effet conjugué de la bonne tenue des échanges extérieurs et de l’accroissement des investissements directs étrangers. Ces résultats remarquables ont permis la bonne conclusion en 2015 du Programme Economique et Financier (PEF) en faveur de la Côte d’Ivoire. En outre, la Côte d’Ivoire a réalisé en mars 2016 la revue au titre de l’article IV, conclue sur un satisfecit du FMI qui a qualifié ses résultats économiques d’impressionnants. Par ailleurs, elle est également en voie d’obtenir un nouveau programme sur trois (03) ans avec le FMI d’un montant global de 337 milliards pour soutenir la mise en œuvre de son PND 2016-2020. Au titre de la dette, le cadre de gestion de la dette s’est fortement amélioré. L’élaboration d’une Stratégie de gestion de la Dette à Moyen Terme (SDMT) accompagnée d’une Analyse de Viabilité de la Dette (AVD) a permis d’encadrer et de veiller à la soutenabilité des finances publiques. Par ailleurs, la bonne notation souveraine de la Côte d’Ivoire a permis des levées de fonds sur le marché des capitaux internationaux, à des taux d’intérêt les plus bas en Afrique. La diversification des instruments d’endettement ont également permis d’amél iorer le profil de l’endettement. A cet effet, la Côte d’Ivoire a mobilisé en 2015 et 2016 un montant de 300 milliards FCFA à travers l’émission d’obligations islamiques (SUKUK). Des textes ont également été pris pour la réorganisation de la Direction de la Dette Publique. Le nouvel organigramme est opérationnel et consacre une réorganisation de la structure en front, middle et back office. Il favorisera ainsi une meilleure gestion des opérations de la dette. En outre, une base de données sur l’endettement des entreprises publiques a été constituée et la collecte des informations est en cours. Concernant le secteur financier, la mise en œuvre de la stratégie de développement du secteur financier est en cours. D’ores et déjà, les options retenues dans le cadr e de la restructuration du portefeuille bancaire public sont connues et les décisions prises. En outre, un avant-projet de loi portant sur le développement du crédit-bail a été adopté et transmis à l’Assemblée Nationale pour faciliter le financement des PME et des ménages. Un forum de promotion et de financement du crédit-bail est prévu pour en vulgariser l’utilisation auprès des acteurs (banques, entreprises, ménages, …) L’exécution du programme s’accélère également sur le pan de l’inclusion financière, notamment avec l’aide de la Banque Mondiale à travers la conduite de l’initiative FIRST. Globalement, le taux de bancarisation est passé de 12,7% en 2012 à plus de 16,3% en 2015. L’utilisation de l’instrument « mobile money » a contribué de manière significative, au relèvement du taux d’accès des populations aux services financiers qui s’est établi en 2015, au-delà de 71,4% contre 43,9% en 2012. Les décisions prises dans le sens de la 55 baisse des coûts des opérations financières devraient également permettre d ’améliorer l’accès aux services financiers. Perspectives économiques et financières pour 2016 et objectifs à moyen terme Le Gouvernement poursuivra ses efforts pour s’assurer que la Côte d’Ivoire devienne une économie émergente en 2020. Dans ce cadre, il a élaboré, sur la base d’un diagnostic approfondi de la mise en œuvre du Plan National de Développement 2012 -2015, et adopté le Plan National de Développement 2016 – 2020 avec pour objectif général de faire de la Côte d’Ivoire une économie émergente. Cette émergence s’appuiera sur une économie dynamique, développementaliste, libérale et ouverte sur l’extérieur ; et se traduira par une réduction significative de la pauvreté accompagnée d’une montée concomitante de la classe moyenne. C’est également une Côte d’Ivoire qui gagne sur le plan de son intégration dans l’économie mondiale et qui coopère avec ses voisins pour le renforcement de l’intégration régionale. Le cadre macro-économique continuera d’être solide et soutenable avec une dynamique forte tirée par des investissements structurants dans les secteurs porteurs de croissance et la continuation des réformes structurelles de grande ampleur. Le taux de croissance du PIB passerait de 9,3% en 2016, à 8,9% en 2017, à 8,8% en 2018, à 8,3% en 2019 et à 8,0% en 2020. Pour atteindre ces objectifs de croissance, le PND 2016-2020 prévoit un niveau d’investissement global de l’ordre de 30 000 milliards de FCFA dont 62% pour le privé y compris les Partenariats Public – Privé. Ainsi, le taux d’investissement devrait passer de 18,7% du PIB en 2015 à 23,1% en 2020. L’inflation serait également contenue à 1,8% en moyenne par an sur la période, en -dessous de la norme communautaire de 3%. Le Gouvernement continuera de renforcer la bonne gouvernance et d’accentuer la lutte c ontre la corruption à travers l’intensification des activités de la Haute Autorité pour la Bonne Gouvernance. La gestion de la dette publique, continuera d’être améliorée conformément aux exigences internationales et aux normes communautaires de l’UEMOA. L’actualisation régulière et la mise en œuvre de la Stratégie de gestion de la Dette à Moyen Terme (SDMT), confortée par l’Analyse de la Viabilité de la Dette (AVD), se poursuivra. Elle constitue le plan opérationnel d’endettement public extérieur et intérieur visant à satisfaire les besoins de financement de l’Etat à des risques modérés. Les études d’Analyse de Viabilité de la Dette (AVD) les plus récentes réalisées par l’équipe du FMI d’une part, et par les Experts nationaux du Comité National de la Dette Publique (CNDP) d’autre part, ont conclu indifféremment à un risque de surendettement modéré sur la période d'analyse (2016-2034). 56 Par ailleurs, nonobstant l’afflux des capitaux extérieurs vers le pays, dans le cadre du financement de l’ambitieux programme d’investissement public inscrit au PND 2016-2020, ce niveau de risque modéré reste conforté par les nouvelles dispositions prises par le Gouvernement en matière d’orientation de la politique d’endettement et de gestion de la dette publique. Pour ce faire Gouvernement procédera à l’adoption d’une politique nationale de l’endettement en phase avec son programme de développement. En outre, le Gouvernement entend consolider la bonne qualité de sa signature et la bonne perception de la Côte d’Ivoire par les investisseurs. Il compte à ce titre honorer l’ensemble des échéances de la dette à bonne date et améliorer davantage son rating par les Agences de notation internationales. Le Gouvernement compte promouvoir la création d’emplois. Dans cette optique, un département ministériel dédié à la promotion de la jeunesse, de l’emploi des jeunes et du service civique a été créé. Les initiatives en faveur de l’emploi des jeunes ont également été regroupées à l’Agence Emplois Jeunes qui est le guichet unique de l’emploi en Côte d’Ivoire. De même, les efforts en matière d’éducation et de formation seront poursuivis. Le Gouvernement veillera à la réduction des inégalités entre les couches sociales et à l’amélioration des composantes de l’indicateur de développement humain. Les dépenses pro pauvres en 2016 sont ainsi prévues à 1 998,5 milliards après 1 770,2 milliards en 2015 ;1622,4 en 2014 ; 1337,13 en 2013 ;1080,30 en 2012 et 840,15 en 2011.Le secteur des Transports se trouve au cœur des politiques de développement économique de la Côte d’Ivoire. Il a ainsi contribué significativement, en dépit des difficultés qu’il connait, à la croissance économique de ces trente dernières années. Avec un système de transport relativement fiable et à des coûts relativement compétitifs, les échanges commerciaux nationaux et internationaux se sont fortement développés au bénéfice de l’économie nationale et de celles des pays de la sous - région. Constamment inscrite dans la politique globale et de redressement de l’économie, la stratégie de développement du Secteur des Transports en Côte d’Ivoire a pour ambition de contribuer significativement à la réalisation des objectifs socio-économiques définis dans le cadre de la lutte contre la pauvreté. S’agissant particulièrement de la circulation des personnes et des biens sur les différents corridors, l’Etat de Côte d'Ivoire a toujours œuvré à lever les obstacles à la facilitation des échanges. Cependant, avec les crises successives que la Côte d'Ivoire a connues depuis plus d’une décennie, des dysfonctionnements persistent et constituent un frein au développement efficace des échanges sur les différents corridors, notamment celui reliant Abidjan à Ouagadougou. A l’ère de la reconstruction de la Côte d’Ivoire, les Autorités gouvernementales ambitio nnent de redonner au Secteur des Transports son lustre d’antan en faisant de sa modernisation une 57 priorité majeure afin de soutenir le développement socio-économique, gage de l’économie émergente ambitionnée. Dans cette optique, le Ministère des Transports s’est inscrit dans la logique de la réalisation de plusieurs projets et la prise de mesures à l’effet de réduire significativement toutes les entraves à la circulation, par la modernisation du système, tout en accroissant sa contribution à l’essor de l’économie nationale. Ces actions portent, notamment sur les sous-secteurs routiers, portuaire et ferroviaire. b. Relations entre le Burkina-Faso et la Côte d’Ivoire b.1 - Relations sociales, économiques et commerciales La Côte d’Ivoire et le Burkina-Faso entretiennent de solides relations depuis plusieurs décennies. Entamées avant les indépendances, elles se sont accrues à partir de 1960 par la volonté des premières Autorités des deux pays. De ce fait, plusieurs ressortissants burkinabés vivent en Côte d’Ivoire et participent à son développement. Ils exercent dans plusieurs domaines d’activités, notamment le Commerce, l’Agriculture et le Transport. Estimés à environ trois (03) millions, ces migrants envoient chaque année, selon la Banque Centrale des Etats de l’Afrique de l’Ouest (BCEAO), des dizaines de milliards dans leur pays d’origine. Depuis novembre 2007, en tant que ressortissants de la Communauté Economique des États de l'Afrique de l’Ouest (CEDEAO), ils ne sont plus astreints à la détention d’un titre de séjour. Sur le plan économico-social, il existe une interconnexion électrique entre les deux pays. Ce dispositif permet à la Côte d’Ivoire de fournir de l’électricité au Burkina Faso. Dans le cadre de la coopération transfrontalière initiée par l’UEMOA et la CEDEAO, le Burkina, la Côte d’Ivoire et le Mali bénéficient de projets pilotes en raison de l’intensité des activités à leurs frontières communes. La coopération transfrontalière permet le développement d’act ivités économiques, sociales et culturelles aux frontières de ces trois pays. La preuve la plus tangible de la solidité des relations entre la Côte d’Ivoire et le Burkina Faso est la signature le 29 juillet 2008 du Traité d’Amitié et de Coopération (TAC), à Ouagadougou. Ce Traité à caractère historique prévoit clairement la création d’un cadre de concertation permanent entre les deux pays, visant à mettre en place un partenariat dynamique pour garantir la stabilité et la prospérité. Dans le cadre de la coopération, le TAC stipule que les deux Etats travaillent, autant que possible, à avoir des convergences de vue sur divers sujets dans plusieurs domaines d’activités. Pour rappel, la cinquième Conférence au Sommet du Traité d’Amitié et de Coopération (TAC 5) entre la Côte d’Ivoire et le Burkina Faso, s’est tenue récemment du 25 au 29 juillet 2016, à Yamoussoukro. 58 Sur le plan commercial, le Burkina-Faso est le premier partenaire de la Côte d’Ivoire dans la sous-région. Les exportations burkinabè à destination de la Côte d'Ivoire sont aujourd'hui dominées par le tabac, les animaux vivants, la fibre de coton et les boissons. De 0,46 milliards de F CFA en 2005, elles sont passées à 3,97 milliards en 2015. Les importations en provenance de la Côte d’Ivoire ont également connu une forte hausse, passant de 121,9 milliards de F CFA en 2005 à 227,2 milliards en 2015. Les produits pétroliers (41 milliards, soit 18% du total des importations) arrivent largement en tête devant le tabac (29 milliards, soit 13% du total des importations) et les matières en plastique (21 milliards, soit 9% du total des importations). b.2 - Importance économique du Corridor Abidjan-Ouagadougou Vu les relations économiques intenses entre les deux pays, le corridor Abidjan-Ouagadougou est l’un des corridors les plus dynamiques de la région CEDEAO. Le Port Autonome d’Abidjan est le principal port de transit du Burkina-Faso, aussi bien pour les exportations que pour les importations. Le prolongement de l’Autoroute du Nord jusqu’à Yamoussoukr o facilite la circulation des véhicules de transport en partance et en provenance du Burkina Faso. La lutte contre les tracasseries routières instituées sur le corridor a permis le retour de certains opérateurs Burkinabés qui s’étaient détournés de la Côte d’Ivoire. Il existe également un chemin de fer entre les deux pays qui constitue une autre option pour l’exercice d’activités commerciales entre les deux pays. Dans le but de maintenir et d’accroître les relations commerciales entre les deux pays, la Cô te d’Ivoire envisage la construction d’un port sec dans le Département de Ferkessédougou, au Nord du pays. Ce port devrait offrir au Burkina Faso, au Mali et au Niger une plate-forme logistique de proximité facilitant leurs échanges commerciaux avec les pays côtiers et réduisant les coûts de transit et de transport. Il prévoit la construction d’un terminal d’import -export, d’un abattoir régional et d’un marché à bétail ainsi qu’un dépôt d’hydrocarbures. Quant à l’UEMOA, elle a initié la construction d’un poste de contrôle juxtaposé à Laléraba à la frontière entre la Côte d’Ivoire et le Burkina Faso afin de faciliter le transit, les mouvements de personnes et les échanges commerciaux. Dans le cadre du Traité d’Amitié et de Coopération, il est envisagé le prolongement de l’Autoroute de Yamoussoukro à Ouagadougou. Les études de faisabilité au niveau de chaque pays sont en cours. Pour des raisons d’efficacité, le Burkina Faso et la Côte d’Ivoire ont convenu de considérer ce tronçon comme un Projet unique et d’ado pter une approche commune dans la réalisation des études techniques et dans la recherche de financement. Il est également prévu la modernisation et la réhabilitation du chemin de fer Abidjan-Ouagadougou et son extension jusqu’à Tambao. C’est dans ce cadre que ces deux projets ont été inscrits au PER II de l’UEMOA. Ils ont été présentés à la Conférence de Dubai en 2014 et ont fait l’objet chacun d’un Mémorandum d’Entente. 59 Dans le cadre du Traité d’Amitié et de Coopération (TAC) du 29 juillet 2008 entre le Burkina Faso et la Côte d’Ivoire, plusieurs axes prioritaires ont été retenus. Ils portent notamment sur la fluidité du trafic et le développement de l’industrie des transports, la libre circulation des biens et des personnes, l’harmonisation des normes techniques et administratives, les mesures de réforme du cadre institutionnel de gestion des liaisons inter�Etats, la libéralisation du marché fret et le renforcement de la lutte contre les pratiques anormales. Des concertations sont régulièrement menées entre les deux (02) parties ainsi que des plaidoyers en accord avec les organismes régionaux d’intégration et les bailleurs de fonds pour la mise en place d’un comité conjoint de gestion du corridor Abidjan-Ouagadougou et l’accélération du processus de construction des Postes de Contrôle Juxtaposés de Laléraba. b.3 - Rôles respectifs des deux pays dans l’UEMOA Le Burkina Faso et la Côte d’Ivoire sont membres de deux regroupements sous - régionaux d’intégration économique, la CEDEAO et l’UEMOA. Les Traités de ces deux organisations constituent le cadre normatif de la libre circulation des biens et des personnes dans les espaces concernés. Leader de l’UEMOA avec 35,1% du PIB en 2015, la Côte d’Ivoire est un partenaire essentiel au sein de cette organisation sous–régionale. Le Burkina-Faso et la Côte d’Ivoire jouent des rôles importants dans la sous-région. En effet, la Communauté a désigné les Chefs d’Etat du Burkina et de la Côte d’Ivoire respectifs pour le suivi de l’application des règles de la libre circu lation des personnes et des biens dans l’espace régional et la recherche des moyens pour le financement. A cet effet, elle a abrité une table ronde à Abidjan pour la recherche de financement de la deuxième phase du Programme Economique Régional pour la période 2012-2016, les 02 et 03 juillet 2012, qui a permis de recueillir des intentions de financement de près de 2 035,0 milliards FCFA (soit 35% du coût global). Ce Programme prévoit notamment la réhabilitation, la modernisation et la construction des infrastructures de transport communautaires. Sur le plan politique et diplomatique, les deux Etats ont œuvré de concert pour le retour de la paix et la sécurité au Mali et en Guinée Bissau. c. Forces et faiblesses de la politique sectorielle du transport terrestre au Burkina Faso et en Côte d’Ivoire Politique générale des Transports dans les deux pays Au Burkina Faso 60 Le secteur des transports et particulièrement le transport routier au Burkina est caractérisé par les forces et faiblesses ci-après :  Faiblesses Au titre des faiblesses de la politique sectorielles du transport terrestre on note : - une inadaptation des textes portant organisation des activités dans le sous-secteur du transport routier, par rapport à l’évolution du contexte socio-économique ; - une séparation insuffisante de la nature des activités dans le sous-secteur, ce qui ne permet pas de développer un certain nombre de professions (affréteurs, loueurs, commissionnaires en douane, etc.) ; - une prise en compte insuffisante des exigences grandissantes de sécurité ; - une précision insuffisante des rôles entre l’Etat et les collectivités territoriales dans un contexte de décentralisation ; - un manque d’harmonisation entre les textes communautaires, les différentes conventions bilatérales organisant le transport et le transit Inter Etats ; - la superposition des conventions bilatérales régissant le secteur. Le secteur se caractérise également par : - un réseau routier en deçà des besoins du pays ; - un entretien routier qui demande à être davantage valorisé ; - une pratique généralisée de la surcharge à l’essieu avec des impacts négatifs sur le patrimoine routier ; - des services de transport marqués par une forte atomicité des acteurs et un faible degré de professionnalisation ; - un parc de véhicules de transport de marchandises vieillissant avec une moyenne d’âge de 20 ans ; - une congestion des ports de la sous-région, facteur de perte de temps et de coûts en capital supporté par le transporteur, le chargeur et le consommateur final ; - le rôle accru des intermédiaires de transports « informels » appelés coxers dans la chaîne de transport, renchérissant les coûts de transport, notamment au Port de Tema ; - des retards au niveau du traitement des formalités de dédouanement et des perceptions illicites importantes ; - des contraintes de capacité de transport ferroviaire qui demandent à être levées. Ces constats constituent des facteurs qui influent négativement sur les efforts de développement du pays. Cette situation a amené le Gouvernement à adopter la stratégie actualisée du secteur des transports pour la période 2011-2025. 61  Forces Pour améliorer l’efficacité opérationnelle du secteur, le Gouvernement du Burkina Faso a adopté en 2011 la lettre de Déclaration de Politique Générale du Secteur des Transports présentant sa stratégie, ainsi qu’un plan d’actions à mettre en œuvre pour la période 2011 - 2025. La stratégie actualisée du secteur des transports traduit la vision du Gouvernement d’asseoir une politique de transport permettant la rentabilisation de l’investissemen t dans le secteur et la maximisation de sa contribution à la croissance et à la compétitivité de l’économie. S’agissant du corridor Abidjan-Ouagadougou, la stratégie vise à permettre au secteur de s'adapter au nouvel environnement institutionnel et créer les conditions propices à une planification harmonieuse des actions menées dans le secteur autour des grands principes suivants : - la mise en place d’un système institutionnel et règlementaire qui assure l’adéquation et la cohérence entre les fonctions des différents acteurs du système, leurs capacités de mise en œuvre et les moyens humains et financiers dont ils disposent ; - le développement et le renforcement du réseau routier ; - l’amélioration des conditions de transit sur le corridor ; - le renforcement de la compétitivité des services de transport ; - la consolidation de l’intégration régionale ; - le renforcement et l’amélioration de la gestion des infrastructures de transit ; - l’allègement des procédures administratives et douanières liées aux opérations de transport de commerce international ; - le développement de la conteneurisation. 62 En Côte d’Ivoire  Faiblesses Le diagnostic du secteur du transport routier révèle des faiblesses qui entravent la bonne marche de ses services. Il s’agit de : - l’inadaptation des textes réglementaires face à la réalité du secteur ; - l’insuffisance de l’offre de service de transport urbain ; - l’absence de statistiques fiables ; - la généralisation du racket et de la corruption ; - un taux élevé de tracasseries routières et d’entraves à la fluidité routière ; - des procédures administratives lourdes dans le processus de délivrance des documents de transport entrainant des surcoûts et des faux-frais ; - une gestion du fret engendrant des pertes de recettes aussi bien fiscales que douanières pour l’Etat ; - un nombre élevé des accidents de la route.  Forces Sur le fondement du diagnostic des faiblesses identifiées dans le secteur, le Ministère possède des atouts en vue d’apporter des réponses idoines aux différentes préoccupations. Il s’agit essentiellement de : - l’existence d’un cadre institutionnel, juridique et organisationnel réformé ; - l’existence de ressources humaines qualifiées ; - l’existence d’un interlocuteur unique ; - l’existence d’un plan d’eau lagunaire de 550 km de long ; - l’existence d’un réseau routier ; - l’existence d’espaces pour la construction d’infrastructures de transport ; - les échanges accrus en termes de commerce avec les pays de l’hinterland. La mission dévolue au Ministère des Transports vise à satisfaire dans des conditions optimales les besoins des usagers, faciliter la circulation des personnes et des biens, développer le transit international, protéger les intérêts des usagers par la libre concurrence entre les entreprises de transport par la fixation des tarifs officiels et contribuer à la réduction de la pauvreté et à la mise en œuvre de la politique nationale de développement économique. A cet égard, de profondes réformes ont été engagées par le Ministère des Transports. Elles sont relatives : 63 - aux conditions d’accès à la profession de transporteur routier ; - aux conditions d’accès au fret ; - à la délivrance du Document Unique de Transport (D.U.T.) qui remplace désormais les Lettres de Voitures ; - au contrôle de la surcharge ; - à la facilitation des procédures douanières et de transit. A terme, la mise en œuvre de ces grandes réformes permettra au Ministère des Transports de moderniser le secteur, à travers la professionnalisation des acteurs, d’une part et l’élaboration d’un cadre règlementaire assurant la libre concurrence entre les entreprises du secteur, d’autre part. Cette réforme du secteur des transports s’adossera sur une infrastructure moderne issue de projets d’envergure dans les sous-secteurs routier et ferroviaire. Il s’agit, notamment : Dans le domaine routier : - du projet d’Autoroute Abidjan- Lagos ; - du projet d’Autoroute Yamoussoukro- Ouagadougou ; - du projet de construction, en B.O.T. de la Gare Routière Interurbaine d’Abidjan, la plus grande d’Afrique de l’Ouest. Dans le domaine ferroviaire : - du train urbain dénommé « Métro d’Abidjan Ligne I » qui reliera, dans un premier temps, Anyama à l’Aéroport Felix HOUPHOUET-BOIGNY et, dans une seconde phase, Yopougon à Bingerville, pour la Ligne II ; et - du chemin de fer Ouangolo-Niélé-Sikasso-Bougouni, long de 338 km. La réalisation des actions identifiées permettra au secteur du transport routier d’atteindre l’objectif qui lui est assigné, c'est-à-dire améliorer la circulation des personnes et des biens en Côte d’Ivoire. A cet objectif, s’ajouteront d’autres résultats connexes consistant essentiellement en la création d’emplois, l’amélioration du bien-être social des populations et donc à la réduction de la pauvreté. Autant d’éléments qui contribueront à faire de la Côte d’Ivoire un acteur dynamique de la scène régionale voire mondiale afin qu’à l’horizon 2020, notre nation fasse partie des pays émergents. C’est pourquoi le Ministère des Transports est déterminé à mettre en œuvre et à suivre tous les programmes et projets ci-dessus présentés. 64 d. Coopération entre le Burkina Faso et la Côte d’Ivoire pour la modernisation du transport sur le corridor Le corridor routier Abidjan-Ouagadougou est un axe important de la stratégie sous régionale communautaire en matière d’infrastructures. Cette stratégie envisage de doter la sous -région d’un réseau routier, ferroviaire et aéroportuaire dense et performant r eliant tous les Etats membres de l’Union. A ce titre, la construction de l’Autoroute Yamoussoukro -Ouagadougou, longue de1 045km et qui coûtera près de 2 600 milliards FCFA (5,2 milliards USD) aux deux Etats, renforcera le trafic routier sur cet axe et revitalisera les activités du Port d’Abidjan. Afin d’améliorer la fluidité des transports routiers et ferroviaires entre Abidjan et Ouagadougou, il a été initié un Observatoire qui prend en compte les quantités et le temps de séjour des marchandises au Port Autonome d’Abidjan, sur l’axe Abidjan -Ouagadougou et au poste frontière de Laléraba. De plus, à l’initiative de l’UEMOA, le processus de construction d’un poste de contrôle juxtaposé qui facilitera le franchissement de la frontière entre les deux pays est en cours. C’est plus de douze (12) milliards qui seront engagés dans ce projet dont huit (8) milliards pour le poste et 4,2 milliards pour construire des infrastructures socioéconomiques (écoles, logements de maitres, connexion du site au réseau électrique national, dispensaires et aires de stationnement et de repos des conducteurs routiers). Dans le cadre du Traité d’amitié et de coopération signé le 29 juillet 2008 entre le Burkina Faso et la Côte d’Ivoire et dont un volet important est dédié au transport, des axes prioritaires ont été retenus et des concertations sont régulièrement menées entre les deux parties sur la fluidité du trafic et l’industrie des transports, la libre circulation des biens et des personnes, l’harmonisation des normes techniques et administratives, les mesures de réforme du cadre institutionnel de gestion des liaisons inter�Etats, la libéralisation du marché fret et le renforcement de la lutte contre les pratiques anormales. Des plaidoyers sont également menés, en accord avec les organismes régionaux d’intégration et les bailleurs de fonds pour la mise en place d’un Comité conjoint de gestion du corridor Abidjan-Ouagadougou et l’accélération du processus de construction des Postes de Contrôle Juxtaposés de Laléraba. 65 II. SITUATION DU SECTEUR DES TRANSPORTS ET FONCTIONNEMENT DU CORRIDOR ABIDJAN-OUAGADOUGOU a. Présentation générale du secteur du Transport routier Au Burkina Faso Dans un pays sans littoral comme le Burkina Faso, le secteur des transports joue un rôle essentiel pour le désenclavement intérieur et extérieur. L’économie burkinabè dépend largement des importations et partant du fonctionnement efficace du système des transports internationaux pour son approvisionnement en de nombreux produits stratégiques (notamment les hydrocarbures), en biens de consommation et d’équipements (matériaux de construction, intrants agricoles). Le fonctionnement efficace des transports internationaux est impératif pour permettre aux exportations burkinabè, notamment le coton fibre, première exportation du pays d’être compétitif sur le marché international. Les transports intérieurs ont une importance particulière compte tenu de la dispersion géographique des activités. La compétitivité de l’économie burkinabè est largement tributaire de l’efficacité du fonctionnement du système des transports. Pour améliorer l’efficacité opérationnelle du secteur, le Gouvernement du Burkina Faso a adopté en 2011la lettre de Déclaration de Politique Générale dans le Secteur des Transports, présentant sa stratégie ainsi qu’un plan d’actions à mettre en œuvre dans le cadre de la stratégie actualisée du secteur des transports pour la période 2011-2025 dont l’élaboration s’est appuyée sur les acquis des précédentes stratégies et les nouveaux impératifs de développement économique et social de notre pays. La situation actuelle par sous-secteur et thème transversal se résume comme suit :  Transport routier rural, interurbain et international Le sous-secteur est caractérisé par : - un réseau routier en développement mais qui demeure en deçà des besoins du pays ; - un enclavement intérieur et extérieur qui pèse lourd sur la compétitivité de l’économie Burkinabé ; - un entretien routier qui demande à être davantage valorisé et un problème important de surcharge avec des impacts négatifs sur le patrimoine routier ; - des services de transport marqués par une forte atomicité et un faible degré de professionnalisation. 66  Transport ferroviaire Ce sous-secteur est caractérisé par : - des contraintes de capacité de transport qui demandent à être levées ; - une expérience de concession réussie en matière de transport marchandise mais une persistance du recul du trafic voyageur ; - une orientation verticale du réseau de chemin de fer et des échanges avec les pays de la sous-région qui demandent à être davantage consolidées ; - un support pour certaines régions qui demande à être davantage promu ; - une absence d’un dispositif de formation dans le sous-secteur et des capacités de la SOPAFER-B qui demandent à être davantage renforcés.  Financement et fiscalité du secteur Les atouts en matière de financement et de fiscalité du secteur sont : - l’existence d’un capital d’expérience en matière de mobilisation de fonds extérieurs ; - la mise en place des réformes requises pour la libéralisation du secteur transport et la privatisation des opérations de production ; et  Gestion des aspects environnementaux et sociaux En matière de gestion environnementale et sociale, le secteur est caractérisé par : - une assise institutionnelle et réglementaire dans le domaine de l’environnement ; - l’existence d’une stratégie nationale de transport rural (SNTR) qui intègre la question du genre et qui s’intègre dans le document de stratégie des transports pour la période 2011-2025. Aspects institutionnels et juridiques Sur le plan institutionnel, le secteur est caractérisé par : - une instabilité dans la structuration et l’organisation des acteurs de première ligne (départements ministériels en charge des transports et des infrastructures) ; - une multitude d’intervenants nationaux dans l’élaboration des normes et la réalisation des infrastructures, générant des conflits de compétence et de textes ; - un mécanisme de financement instable pour certaines structures, notamment le Fonds d’Entretien Routier du Burkina (FER-B) et l’Office National de Sécurité Routière (ONASER) ; et - une insuffisance qualitative des ressources humaines au niveau des départements Transport et Infrastructures. 67  Suivi et Evaluation En matière de suivi-évaluation, le secteur est caractérisé par : - l’existence d’un dispositif commun de suivi – évaluation : le Système d’Information et de Suivi – Évaluation (SISE) ; - un capital d’expérience en suivi-évaluation à travers trois projets à savoir Projet Sectoriel des Transports (PST), Projet de Sécurité et de Sureté du Transport Aérien en Afrique de l’Ouest et du Centre (PSSTAAOC) et Projet Régional de Facilitation des Transports et du Transit routiers en Afrique de l’Ouest (PRFTTAO) ; - des disparités du système d’information entre les sous-secteurs dues essentiellement à des insuffisances de formation des cadres responsables de l’activité. En Côte d’Ivoire En Côte d’Ivoire, le Secteur du Transport a enregistré de tout temps de grandes difficultés dans son développement. La situation s’est aggravée avec les dernières crises sociopolitiques pour faire place à de nombreux dysfonctionnements caractérisés par :  Au niveau du transport terrestre - un transport routier évoluant dans l’informel ; - des statistiques peu fiables et difficiles à obtenir ; - un racket et une corruption accentués ; - une gestion du fret occasionnant des manques à gagner considérables pour l’Etat et les transporteurs ; - un parc automobile vieillissant ; - des routes fortement dégradées.  Au niveau aérien - la perte du trafic au profit des aéroports certifiés des pays de la sous-région ; - le caractère non opérationnel des aérodromes de l’intérieur du pays.  Au niveau maritime - la stagnation des capacités d’accueil des ports ivoiriens, ce qu i affecte leur compétitivité ; - la perte de trafic maritime ; - la suspension de la mise en œuvre du Projet de Développement Intégré du Système fluvio-lagunaire ; - la saturation du domaine portuaire à Abidjan ; - l’insuffisance de l’offre de service de transport lagunaire ; et 68 - l’inexistence de compagnies maritimes privées ivoiriennes ou de navires battant pavillon ivoirien. b. Défis et contraintes le long du corridor Abidjan-Ouagadougou b.1 - Organisation du secteur et du marché du transport routier de marchandises le long du corridor Au Burkina Faso et en Côte d’Ivoire, la situation dans laquelle évoluent les acteurs est compromise par des inerties organisationnelles qui ne favorisent pas l’exercice de la liberté contractuelle des parties et empêche l’évolution vers plus d’efficacité des structures que sont les Entreprises, des outils à savoir la modernisation du parc et des hommes, la formation des conducteurs et des gestionnaires. L’organisation actuelle de la profession tire vers le bas les conditions du transport routier. Les griefs généralement formulés portent sur le caractère inadapté de la règlementation de la profession de transporteur dans le contexte global du développement de l’industrie des transports routiers. Toutes les études faites dans le secteur déplorent les conditions d’accès et d’exercice du métier, qui sont quelque peu trop ouvertes, ce qui fausse les règles de la concurrence, tire les prix vers le bas et nuit à la notoriété de la profession. La profession se présente souvent comme un «recours» aux déçus des autres activités et est considérée par les assureurs et les banques comme une activité «à risques», ce qui rend difficile l’accès des opérateurs aux financements. Au regard, d’une part, de la faible performance des acteurs du secteur des transports routiers, due à l’atomicité de l'offre de transport et les faiblesses et insuffisances du cadre normatif et d’autre part, de la nécessité de définir de nouvelles bases juridiques pour le système des transports, le Burkina Faso et la Côte d’Ivoire ont opté pour la professionnalisation de l’activité de transporteur routier à travers la redéfinition des conditions et critères d’accès précis à la profession et la distinction entre « transport public » et « transport privé ». Au Burkina Faso, l’activité de transports terrestre et maritime est organisée par le Ministère chargé des transports à travers la direction générale des transports terrestres et maritimes qui a pour mission de réglementer, de planifier et de contrôler la mise en œuvre de la politique du département en matière de transports terrestres et maritimes. Elle accomplit cette mission d’organisation des activités du secteur des transports terrestres en relation avec les autres structures nationales compétentes notamment l’Office Nationale de 69 Sécurité Routière (ONASER) qui assure l’exclusivité des contrôles routiers sur les sections nationales des axes routiers inter-Etats, le Conseil Burkinabé des Chargeurs (CBC) pour la célérité et la sécurité des opérations de transport par l’assistance aux chargeurs et la coordination de la chaîne des transports. En plus des structures citées ci-dessus, il convient de mentionner le rôle du Comité National de Facilitation des Transports dans la mise en œuvre de mesures de simplification et d’harmonisation des procédures administratives et de transit (douanes, fisc, commerce extérieur, services de contrôle de qualité…) On note également à côté de ces structures le secteur privé constitué essentiellement de la Chambre de Commerce et d’Industrie du Burkina (CCI-B), des organisations de transporteurs et conducteurs routiers. En Côte d’Ivoire, l’activité du Transport routier est également organisée par le Ministère des Transports, à travers différentes Structures que sont la Direction Générale des Transports Terrestres et de la Circulation (DGTTC) qui a en charge la règlementation du Secteur, la gestion des autorisations pour les acteurs et pour les outils du système (transporteurs, conducteurs, véhicules, etc...), l’Office de Sécurité Routière (OSER) qui veille à faire respecter les règles relatives à la circulation routière afin de garantir la sécurité de tous les usagers de la route. Il y a également dans le dispositif institutionnel du Ministère des Transports un Observatoire de la Fluidité des Transports (OFT) dont la mission est d’assurer la fluidité du trafic sur les routes et la facilitation des échanges. Sous l’encadrement des trois (03) structures citées ci-dessus, opèrent les acteurs du secteur privé (sociétés de transports ou transporteurs publics/privés, conducteurs, etc...) Le transport sur le corridor routier Abidjan-Ouagadougou est régi par les Conventions 82 et 90 de la CEDEAO relative au Transit Routier Inter-Etats (TRIE) et par l’Accord Bilatéral de Transport Routier. b.2 - Cadre règlementaire pour le transport de marchandises le long du corridor Le cadre règlementaire pour le transport de marchandises le long du corridor Abidjan- Ouagadougou est constitué par les dispositions des règlementations portant sur :  Le contrôle de la charge à l’essieu 70 Il est régi par deux textes que sont le Règlement N°14/2005/CM/UEMOA et l’Acte additionnel A/SA.17/02/12. Le Règlement N°14/2005/CM/UEMOA, du 16 décembre 2005 est relatif à l’harmonisation des normes et des procédures du contrôle du gabarit, du poids et de la charge à l’essieu des véhicules poids lourds de transport de marchandises dans les États membres de l’Union.Il vise à harmoniser dans l’espace de l’Union les normes et les procédures de contrôle du respect de ces normes, et leur système de sanctions pour infraction, en matière de limitation des dimensions de gabarit, de poids et de charge à l’essieu, de renforcer les vérifications préventives et les contrôles, et en améliorer l’efficacité, et de rationaliser les contrôles sur route. Les difficultés de mise en œuvre de ces textes ont amené les Etats à adopter le 23 avril 2009 une feuille de route. La réunion d’évaluation d’application de cette feuille de route a f ait le constat que le bilan n’a pas été à la hauteur des ambitions et des engagements. Ainsi, les Etats membres de l’UEMOA ont adopté des feuilles de route successivement le 19 mars 2010, le 19 juin 2015 et une nouvelle feuille de route le 23 septembre 2016 à Cotonou (Bénin). Malgré un début d’application des mesures de contrôle de la charge à l’essieu par certains Etats, la tendance est à la persistance de la surcharge. Le Gouvernement ivoirien entends mettre en œuvre le nouveau chronogramme de l’application intégrale du Règlement 14 (voir Annexe ci-jointe) établi sur la base de la Déclaration de la réunion des Ministres en charge des Infrastructures et du Transport des Etats membres de l’UEMOA et de la Guinée qui s’est tenue le 23 septembre 2016 à Coton ou. Pour l’application intégrale du règlement 14 établi sur la base de la Déclaration de la réunion des Ministres en charge des Infrastructures et du Transport des Etats membres de l’UEMOA et de la Guinée qui s’est tenue le 23 septembre 2016 à Cotonou, le Burkina Faso est résolument engagé à la mise en œuvre du nouveau chronogramme, qui a été adopté par le conseil des ministres du mercredi 2 novembre 2016 L’Acte additionnel A/SA.17/02/12quant à lui est relatif à l'harmonisation des normes et des procédures de contrôle du gabarit, du poids et de la charge à l'essieu des véhicules lourds de transport de marchandises dans les Etats membres de la CEDEAO. II complète et précise les textes de la CEDEAO en la matière, notamment la Convention A/P2/5/82 du 29 mai 1982 qui définit, entre autres, la charge à l’essieu et le gabarit des véhicules.  Le contrôle routier 71 Les textes d’application du plan régional de contrôle routier, qui porte notamment sur la réduction des nombres de postes de contrôle connaissent des difficultés d’exécution au sein des Etats. - Décision n° 15/2005/CM/UEMOA portant modalités pratiques d’application d’un Plan Régional de Contrôle routier adopté le 16 décembre 2005 à Bamako ; - Directive n°08/20005/CM/UEMOA du 16 décembre 2005 relative à la réduction des points de contrôle sur les axes routiers inter-Etats de l’Union Economique et Monétaire Ouest Africaine (UEMOA). En substance, cette Directive (i) limite les contrôles routiers sur les axes inter-Etats, aux seuls points de départ, aux frontières et aux points d’arrivée des véhicules routiers, (ii) prévoit la construction, l’équipement et la mise en service de postes de contrôles juxtaposés aux frontières des Etats.  La création de Comité de Gestion des Corridors Il a été recommandé aux Etats et à la Commission de prendre des dispositions pour la mise en place des structures de gestion des Corridors telle que prévue par la Décision N°39/2008/CM/UEMOA du 17 Décembre 2009portant création et gestion des Corridors de l’Union. Le Comité de Gestion du Corridor Abidjan-Ouagadougou, conformément aux dispositions et programmes de l’UEMOA, n’est pas encore créé. La concertation en vue de la mise en place de ce Comité, en synergie avec la Commission de l’UEMOA, doit être menée.  La création des postes de contrôles juxtaposés La construction des postes de contrôles juxtaposés aux frontières des Etats est régie par les dispositions du Règlement N°15/2009/CM/UEMOA du 17 Décembre 2009 portant régime juridique des postes de contrôles juxtaposés aux frontières des Etats Membres de l’UEMOA. Les objectifs visés par le règlement sont de (i) définir les règles de fonctionnement sur la plateforme, (ii) préciser les intervenants, usagers de la plateforme, leurs pouvoirs, responsabilités, les zones d’exercice de ces pouvoirs, les activités et règlementations applicables sur la plateforme.  Les conditions de mise en œuvre des activités de transport Les activités de transport routier sont régies par les textes suivants : - Convention de Transports Inter-Etats (TIE) La Convention N°A/P2/5/82 portant réglementation des Transports Routiers Inter-Etats (TIE) signée à Cotonou le 29 mai 1982, a pour objet de définir les conditions dans lesquelles doivent 72 s’effectuer les transports routiers inter-Etats au sein de la CEDEAO. Le but recherché est de (i) supprimer les excès des contrôles routiers, (ii) garantir un accès équitable aux cargaisons générées par le commerce extérieur des Etats contractants, harmoniser les dispositions réglementaires relatives au code de la route et des transports, (iii) assurer une autonomie suffisante pour l’approvisionnement des pays sans littoral en rapport avec les moyens de transport des pays de transit. - Convention sur le Transit Inter- Etats des marchandises par route (TRIE) La Convention A/P4/5/82 relative au Transit Routier Inter –Etats de Marchandises (TRIE) adoptée à Cotonou le 29 mai 1982 a été complétée par la Convention additionnelle A/SP/1/5/90 portant institution d’un mécanisme de garantie des opérations sous TRIE adoptée le 30 mai 1990 à Banjul. Cette convention vise essentiellement à (i) éviter la succession de procédures douanières à travers les différents pays de transit, (ii) faciliter le mouvement des moyens de transport et des marchandises transportées entre les Etats membres.  Les Accords bilatéraux en matière de transport et transit Les Accords bilatéraux abordent, en particulier, les questions relatives aux conditions de circulation, à la répartition du fret. Le cadre juridique de coopération dans le domaine des transports routiers entre les deux pays est constitué par les textes suivants : - Accord de coopération entre le Burkina Faso et la République de Côte du 14 octobre 1989 en matière de transport maritime et de transit ; - Protocole d’accord de coopération en matière de transport routier du 27 juillet 1999 entre le Burkina Faso et la République de Côte-d’Ivoire qui institue un Comité Technique ivoiro-burkinabè Paritaire pour le suivi ; - Accord de siège entre le Gouvernement du Burkina Faso et le Gouvernement de Côte- d’Ivoire au profit de la Représentation du Conseil burkinabé des chargeurs (CBC) en Côte-d’Ivoire signé le 18 novembre 2011 ; - Protocole d’Accord entre la Chambre de Commerce et d’Industrie de Côte d’Ivoire et la Chambre de Commerce et d’Industrie du Burkina Faso pour le cautionnement des Acquit-à-caution en matière de transit routier inter-Etats (TRIE) signé le 05 février 2014 à Ouagadougou. b.3 - Efficience du Port Autonome d’Abidjan et du Terminal de Ouagadougou  Efficience du Port Autonome d’Abidjan 73 Le Port Autonome d’Abidjan (PAA), plateforme logistique par laquelle 90% des échanges de la Côte d’Ivoire se font avec l’extérieur, est un outil d’intégration économique où transite une partie du trafic des pays sans littoral que sont le Burkina, le Mali et dans une moindre mesure le Niger. Alors que les deux derniers pays sont reliés au Port d’Abidjan par la route, l e Burkina bénéficie en plus de la route, du chemin de fer. Ce qui en fait un partenaire privilégié du Port d’Abidjan parmi les pays de l’hinterland. Avec ses 1000 ha de plan d’eau, 800 ha de zone industrielle, 06 km de linéaire de quai, 34 magasins cales et des terminaux spécialisés tels que le terminal fruitier, le terminal minéralier, le port de pêche, le terminal RoRo (terme générique maritime pour désigner un terminal roulier qui s’ouvre par l’arrière) et le terminal à conteneurs, le Port d’Abidjan traite annuellement un trafic global de plus de 21 millions de tonnes dont 1,8 million de tonnes pour le transit et en fait le plus grand port de la sous-région. Le terminal à conteneurs, équipé de 06 portiques lourds de quai, de 02 grues mobiles et de 16 grues de parcs, traite annuellement environ 650 000 conteneurs Equivalent Vingt Pieds, en abrégé EVP (terme générique maritime désignant la capacité des conteneurs) avec une cadence opérationnelle de 30 mouvements par portique et par heure, correspondant au standard des grands ports mondiaux. Dans le cadre de la mise en œuvre de sa vision stratégique, la Direction Générale du Port Autonome d’Abidjan a initié plusieurs grands Projets qui permettront, à court et à moyen termes, d’améliorer sa capacité d’accueil, notamment par la création de nouveaux terminaux (conteneurs, rouliers, port de pêche, minéralier et céréalier). Outre ses actions de développement des infrastructures, le PAA travaille à conserver ses différentes certifications, notamment le Code International pour la Sûreté des Navires et des Installations Portuaires (Code ISPS) et la certification à la norme qualité ISO 9001 version 2008. L’objectif principal de toutes ces actions est la satisfaction des clients et partenaires dont ceux de l’hinterland auxquels des avantages sont accordés en matière de coût de passage portuaire et d’espaces. Cependant, la problématique de la livraison de conteneurs dans la ville d’Abidjan exclusivement réservée aux manutentionnaires constituait jusque-là un point d’entrave à la compétitivité du Port d’Abidjan. 74 Heureusement, à la faveur des réflexions sur l’amélioration des conditions de passage des marchandises conteneurisées dans le Port d’Abidjan et sur le corridor de transit Abidjan - Ouagadougou, l’autorité portuaire s’est engagée à libéraliser cette activité dans les meilleurs délais. Ainsi, des discussions ont été engagées avec les partenaires de la communauté portuaire, renforcée à cette occasion par les transporteurs, en vue d’aboutir à la libéralisation de l’activité en cause. Une circulaire de l’Administration portuaire a été prise à l’occasion de ces discussions et les modalités d’application de cette circulaire sont en phase de finalisation de concert avec la communauté portuaire. L’éventualité de la prise d’un décret pour la mise en œuvre de cette libéralisation n’a pas été exclue afin de conférer un caractère régalien à cette mesure.  Efficience du Terminal de Ouagadougou Le Terminal à conteneurs de Ouaga-gare en gare ferroviaire de Ouagadougou : Cette plate- forme, réalisée en 1999, est la toute première infrastructure, spécialement dédiée au trafic conteneurisé au Burkina Faso. Elle est située à Ouagadougou, sur la plate-forme logistique Ouaga-gare et est vouée très singulièrement au traitement du trafic conteneurisé par rail. La gestion est assurée par la Société d’Exploitation du Terminal de Ouagadougou (SETO). Sa superficie est de 29 942 m² de surface bétonné et de 7763 m² de surface non bétonné. La capacité d’accueil de ce terminal est de 500 EVP pleins et 700 EVP vides et offre un quai d’une capacité de 23 wagons. La logistique spécialisée de ce terminal comprend également 1 PPM Superstaker de 45T (TCS Pleins), 1hyster 45 T (TC pleins), 1frontale conteneurs vides de 16T, 1 tracteur agricole, 4 plateaux de 20’ et 40’ pour remorques & tracteurs et 2 camions de livraison. Le Terminal Routier à Conteneur de Boborinter (TRCB/Bobo) : Ce terminal implanté à Bobo- Dioulasso depuis Janvier 2010, deuxième ouvrage du genre réalisé par la CCI-BF et ce, en intelligence avec ses partenaires techniques et financiers, a la particularité d’être bimodale (rail/route), en ce sens que cette plate-forme est spécialisée aussi bien dans le traitement du trafic conteneurisé par route que par rail. D’une superficie de 28 270 m², il a une capacité d’accueil de 500 EVP pleins et de 300 EVP vides et est doté d’1 Stvetruck 40t (TCs pleins) et de 2 Fourchettes 26T (TCs vides). Le Terminal à conteneurs de Ouagarinter (TRCB-Ouaga) : Cette plate-forme, réalisée en Avril 2010 dans l’enceinte de Ouagarinter est la dernière en date et vient en complément au terminal SETO, en ce sens qu’elle est exclusivement dédiée au traitement du trafic conteneurisé par route. Avec une superficie de 27000 m², elle a une capacité de 390 EVP pleins et 192 EVP 75 vides et est dotée d’1 Stvetruck 40t (TCs pleins), 1 PPM 45T (TCs pleins), d’1 Fourchette 16T (TCs vides), d’1 tracteur agricole et d’1 camion de livraison. Les terminaux intérieurs du Burkina Faso jouent un rôle prépondérant sur le corridor Abidjan- Ouagadougou. La CCI-BF, dans le cadre de sa politique de création et de gestion d’infrastructures d’appui à l’économie nationale, est la principale gestionnaire des plates - formes logistiques de traitement des marchandises aussi bien à l’intérieur qu’aux frontières du Burkina Faso. Cette politique poursuit plusieurs objectifs que sont : - le désenclavement du pays ; - la diversification des débouchés maritimes ; - la facilitation des opérations d’acheminement des marchandises en provenance ou à destination des ports maritimes ; - la sécurisation et le renforcement du système d’approvisionnement et d’exportation ; - la promotion des exportations à partir du Burkina Faso ; - le traitement adéquat du fret ; - l’amélioration des conditions d’accueil du fret ; - l’augmentation des capacités d’accueil du fret ; - la facilitation du recouvrement des recettes douanières et fiscales. Une précision qui mérite d’être apportée est que les plates-formes intérieures (Ouagarinter, Boborinter, Ouaga gare) abritent en leur sein des terminaux à conteneurs qui, certes sont construits par la CCI-BF et ses partenaires mais dont la gestion a été concédée à des opérateurs privés. Les contraintes le long du corridor Abidjan-Ouagadougou, telles qu’elles se présentent aux terminaux intérieurs du Burkina Faso, concernent notamment : - L’immobilisation des véhicules de transport routiers pour l’accomplissement des formalités de mise à la consommation du fret. Les séjours abusifs des véhicules de transport dans ces plateformes sont généralement le fait de l’importateur. Cette situation est d’autant plus accrue par le défaut de matérialisation du contrat entre l’importateur et le transporteur et ce partant l’absence de pénalisation de cette situation d’immobilisation du moyen de transport. - Du point de vue de la CCI-BF, ce facteur d’inefficience pourrait être résolu par une matérialisation des relations contractuelles entre le transporteur et le chargeur routiers. Ce contrat devrait prévoir le paiement de surestaries au-delà d’une période de franchise déterminée. A ces pénalités imposées par le propriétaire du moyen de transport, 76 viendraient s’ajouter celles de l’exploitant de l’aire de stationnement, en l’occurrence la CCI-BF. Ces mesures dissuasives devraient permettre de minimiser le nombre de cas d’immobilisation des camions et permettre ainsi leurs rotations optimales. La dispersion des trafics routier et ferroviaire sur des plateformes distantes. La séparation des trafics en provenance d’Abidjan suivant qu’ils soient ferroviaires ou routier , crée une certaine inefficacité dans le traitement des frets, du fait du morcellement de trafics. Il est évident qu’un regroupement des volumes aurait permis aux différents opérateurs de réaliser des économies d’échelle et de proposer des prix plus compétitifs. Du reste, face à la centralité des plates- formes de Ouagadougou, à leur caractère unimodal (ferroviaire pour Ouagagare et routier pour Ouagarinter), et aux récurrents problèmes d’engorgement urbain rendant impossible toute initiative d’extension, il est apparu la nécessité de délocaliser celles-ci en périphérie de l’agglomération de Ouagadougou afin de disposer d’une infrastructure moderne et multimodale (fer, route) avec une interconnexion au nouvel aéroport de Donsin : d’où le projet de construction d’un port sec. Ce projet de port sec multimodal constituera à terme une réponse à cette problématique de l’accès aux plateformes terminales qui se pose avec plus d’acuité à Ouagadougou. En effet la croissance urbaine ayant rattrapé ces plateformes, cela rend d’autant plus difficile l’accès aux véhicules poids lourds qui font face à des situations d’engorgement. Du reste des travaux de réfection sont en cours à Ouagarinter. Mais en attendant de relever le défi de l’extension des capacités d’accueil des pl ateformes à travers la réalisation du projet de port sec multimodal, la CCI-BFa entrepris des travaux de réhabilitation des ouvrages existants (plateforme Ouagarinter, BVA, Ouagagare). Du coté de Bobo-Dioulasso, il faut noter la réalisation de port sec bimodal de Bobo-Dioulasso qui accueille aussi bien le trafic routier que ferroviaire. Des travaux sont en cours pour le renforcement des infrastructures et équipements sur cette plateforme. Du point de vue des espaces de stockage : La CCI-BF dispose de magasins sous douanes et hors douanes situés à Ouagarinter, Ouagagare, Boborinter, Banfora, Bittou, Niangoloko et Koudougou. Elle en dispose également à l’extérieur, notamment dans les ports de Tema, Cotonou, Lomé et Abidjan. Du point de vue des parkings : il en existe sur toutes les plateformes intérieures de la CCI-BF aussi bien frontalières que terminales. Il est à mentionner l’aménagement d’une plateforme pour les camions en transit en l’occurrence le Centre International de Transit (CIT) de Tanghin - Dassouri fonctionnel, depuis juin 2013. b.4 - Aspects douaniers et régime de transit 77 Le trafic sur le corridor Abidjan – Ouagadougou a longtemps été marqué par des tracasseries douanières liées au manque de professionnalisme des Agents des Douanes et des Commissionnaires en Douane agréés, des temps de voyage très longs des camions dus à une absence de connexion des services et systèmes informatiques des Douanes entre les deux pays. Le régime de transit était soumis à un double prélèvement sur la valeur CAF des marchandises en transit sur le corridor. Il était également déploré l’absence d’un système de gestion efficace du risque en douane avec la définition de profils de risques des commerçants. Aussi, le système en vigueur d’escorte douanière des documents rendant ne concourait pas à optimiser la qualité du trafic sur le corridor. Au regard de cette situation, le Burkina Faso et la Côte d’Ivoire ont décidé de prendre des mesures et initier des réformes afin de faciliter et rendre plus fluide le trafic sur le corridor Abidjan-Ouagadougou, en matière de douane et de transit. Pour le Burkina Faso Le Burkina Faso, depuis 2009, s’est inscrit dans une dynamique de gestion électronique du transit routier (T1). Ce système de transit connaît, malheureusement, une contre- performance, eu égard au fait que l’escorte physique des cargaisons demeure afin de sécuriser les opérations. Par ailleurs, l’absence d’interconnexion des systèmes douaniers burkinabè et ivoirien entraîne une reprise de procédures douanières aux frontière du Burkina, ce qui allonge considérablement les délais de route et grèvent le coût de revient du transit. Pour la Côte d’Ivoire En ce qui concerne l’Administration des Douanes, le défi est de sécuriser le transit le long du corridor Abidjan-Ouagadougou. Pour cela, elle a mis en place un module informatisé de gestion du transit (T1). Ce module, couplé avec la géo localisation, permet la prise en charge et le suivi des cargaisons en transit. Cependant, la mise en œuvre de ce système a fait apparaîtr e de nombreuses difficultés (insuffisance de balises, état des camions, cargaisons non hermétiques, absence de parc de stationnement des camions). III. SUIVI ET EVALUATION Le suivi et l'évaluation du Programme seront de la responsabilité des Coordinations Nationales mises en place dans les deux Etats pour le suivi de l’ABR. 78 79 80 ANNEXE 1 : stratégie pour la modernisation des opérations le long du corridor abidjan-ouagadougou et la réduction des couts de transaction commerciaux a. Vision et objectifs généraux à moyen terme Au Burkina Faso, le secteur des transports représente une des composantes essentielles de la Stratégie de croissance accélérée et de développement durable (SCADD). Il est logé dans l’axe stratégique 3, à savoir le « développement des piliers de la croissance accélérée ». D’autre part, le Programme d’Actions du Gouvernement pour l’Emergence et le Développement Durable (PAGEDD) pour la période 2011-2015 fait une large part à ce secteur, autant d’intérêts qui commandent que des actions fortes soient menées pour son émergence véritable. Dans le processus de réforme du cadre institutionnel et réglementaire du secteur des transports, le Burkina Faso s’est doté depuis 2008, d’une Loi d’Orientation des Transports Terrestres, qui traduit la vision du Gouvernement pour ce sous�secteur, ceci au regard des impératifs liés aux nouvelles réglementations adoptées au sein de l’UEMOA et de la CEDEAO, et d’autre part, à la nécessité de permettre au secteur des transports en général et du transport routier en particulier de jouer pleinement son rôle de secteur de soutien à la production. Ce texte majeur, qui est désormais le référentiel normatif de base en matière d’organisation du système des transports terrestres, repose sur cinq (05) axes stratégiques majeurs, autour desquels doivent s’articuler toute réflexion et toute initiative en matière de formulation, de conception, de planification et d’organisation des activités de transports terrestres. Pour répondre aux exigences stratégiques, les objectifs suivants ont été assignés au Ministère, à savoir : - renforcer les capacités de pilotage et de gestion du secteur des transports et du transit ; - renforcer le contrôle de l’exploitation des infrastructures et la sécurité routière ; - professionnaliser et moderniser les transports ; - renforcer la mobilité urbaine et rurale ; - améliorer les conditions d’exploitation des transports ; - relancer les activités du transport ferroviaire ; - réaliser des actions de communication, de formation, de recherche et de renforcement des capacités ; 81 - animer les cadres de concertation pour une plus grande approbation des politiques publiques du secteur ; - organiser des campagnes de sensibilisation et d’information des usagers sur les politiques et stratégies du secteur et leur mise en œuvre. En Côte d’Ivoire, le Ministère des Transports ambitionne de palier les dysfonctionnements rencontrés dans le secteur des Transports et de faire de l’activité des transports un secteur moderne, fiable, à la pointe de la technologie et avec une part beaucoup plus importante dans la croissance économique nationale. C’est dans cette dynamique que la loi N° 2014-812 du 16 décembre 2014 appelée Loi d’Orientation du Transport Intérieur (LOTI) est intervenue. Tout en s’adaptant à la réglementation communautaire, elle donne des orientations sur : - la politique du transport intérieur relative à l’exécution du service public, à l’offre de transport, à la concurrence des entreprises de transport, à la protection et à l’information de l’usager ; - le transport réglementé (transport public, transport privé …) ; - le contrat de transport ; - le principe de tarification avec possibilité pour l’Etat de préciser des tarifs indicatifs ; - la sécurité et les meilleures conditions de travail dans le secteur ; - l’obligation d’assurance ; - l’intervention des pouvoirs publics et les investissements dans le secteur ; - les sanctions des violations des règles. Cette Loi d’Orientation s’applique aussi bien à l’activité du Transport intérieur qu’à tous les acteurs publics, parapublics ou privés intervenant directement ou indirectement dans cette activité. Par sa souplesse, elle permet également : - d’adapter la législation, en matière de Transport intérieur, aux règles de l’OHADA ainsi qu’aux normes communautaires de l’UEMOA et de la CEDEAO ; - de protéger plus efficacement les intérêts des usagers, à travers les décrets pris pour son application, par la réduction des couts des prestations de transport et la célérité dans l’obtention des documents de transport. Toutes choses qui sont de nature à lutter contre la vie chère et le fléau de la corruption généralisé dans le secteur ; - d’instituer, au titre de l’organisation du secteur, une Autorité chargée de la régulation du Transport intérieur. Cette Autorité est également appelée à arbitrer les conflits entre les personnes physiques ou morales dans le Secteur. 82 S’agissant des Douanes, il s’agira de sécuriser les opérations le long du corridor Abidjan- Ouagadougou et de réduire les coûts par la mise en place de l’interconnexion des systèmes informatiques des Douanes de Côte d’Ivoire et du Burkina Faso. Les objectifs seront de passer à la phase de réalisation de ce projet. b-Stratégie et mesures considérées par domaine au niveau national et de façon conjointe entre le Burkina Faso et la Côte d’Ivoire  Les Mesures parallèles (A1, A3, B2, D1, D2 et D3) A1- Le Burkina Faso et la Côte d’Ivoire ont entrepris de vastes réformes en vue d’une professionnalisation et d’une formalisation de l'industrie du transport de marchandises. Cela se traduit par l’adoption, dans chacun des deux pays, de cadres juridiques et r églementaires harmonisés qui redéfinissent (i) les conditions d’accès à la profession de transporteur routier de marchandises en transport pour compte d’autrui et pour compte propre et (ii) l’obtention d’un permis de conduire spécifique pour les conducteurs de poids lourds. Les deux pays ont également adopté un cadre réglementaire mutuellement reconnu entre eux définissant (a) le programme de formation de Gestionnaires d’Entreprises de transport et de conducteurs de poids lourds, en suivant les meilleures pratiques internationales et (b) les critères et mécanisme de certification pour la création d'Etablissements privés assurant la formation et la délivrance de diplômes professionnels pour l’industrie du transport routier de marchandises. L’objectif de ces réformes est de créer un environnement propice qui fa vorise effectivement la professionnalisation et la formalisation de l’industrie du transport de marchandises. Ces réformes auront pour résultats l’apparition d’Entreprises professionnelles de transport routier de marchandises certifiées et donc conformes à la réglementation, une bonne segmentation de l’industrie du transport routier de marchandises, la diminution du nombre d’Entreprises informelles (ou de particuliers), la non-participation au transport commercial des Entreprises de transport routier de marchandises déclarées comme travaillant pour leur propre compte, sans oublier une requalification de la catégorie de « transporteur privé » à celle de « transporteur public » pour un nombre significatif d’Entreprises existantes, notablement les acconiers, le s transitaires et assimilés. C’est ainsi qu’au Burkina Faso, est adopté le décret n° 2014-683/ PRES/PM/MIDT/MEF/MATS/MICA du 1er août 2014 qui apporte des innovations portant sur les mesures de réformes ci-après : 83 - l’affinement de la catégorisation des transports routiers et des conditions d’exercice de l’activité ; - la distinction nette entre le transport pour compte propre et le transport pour compte d’autrui et les conditions d’exercice ; - l’introduction de mesures qui, à terme, devront contribuer à a ssainir le parc automobile de transport ; - le libre choix du transporteur par le chargeur ; - un régime d’infractions et de sanctions. Le décret ci-dessus mentionné a fait l’objet de modification en son article 52 pour être conforme à la libéralisation dans le Secteur. En ce qui concerne la Côte d’Ivoire, le Ministère des Transports a engagé la réforme de la gouvernance du sous-secteur du Transport routier afin de répondre efficacement à la problématique de modernisation du Transport routier à travers la réalisation de grands projets structurants dans le cadre du Plan National de Développement (PND). L’on peut retenir dans ce cadre : - la révision des textes (lois, décrets, arrêtés, etc…) en vue d’assurer la modernisation, l’efficacité et la compétitivité du Secteur. C’est dans cette optique qu’est intervenue la loi d’Orientation du Transport Intérieur (LOTI) promulguée le 16 décembre 2014 et de laquelle découlent les décrets et arrêtés organisant, déterminant et précisant les conditions d’accès à la profession de transporteur et d’exercice de l’activité de transport routier, les Centres de Formation agréés de Gestionnaires d’Entreprises de Transport, l’approbation du Programme de Formation des Gestionnaires d’Entreprises de Transport, le timbre fiscal et l’homologation des tarifs du Document Unique de Transport, les conditions d’inscription et la tenue du Registre des Transporteurs ; - la mise en place d’un système de gestion intégrée de l’ensemble des activités du Transport routier. Cette réforme des procédures des opérations de prestations de services aux usagers est basée sur la mise en place, au Ministère des Transports, d’une base de données unique regroupant l’ensemble des activités des différents acteurs du Transport routier. Cette base de données, utilisant les techniques et outils de dernière génération, automatisera, tracera, simplifiera et sécurisera l’ensemble des procédures de traitement des titres de transports pour les usagers tout en offrant une connexion informatique à tous pour les différents registres prévus (conducteurs, Entreprises de transport, véhicules, etc...) ; 84 - la construction de postes de contrôles juxtaposés à la frontière Côte d’Ivoire – Burkina Faso ; - l’élaboration de textes règlementaires en vue de la mise en œuvre progressive des dispositions du Règlement 14 de l’UEMOA. Cela signifie que, désormais, les Entreprises de Transport routier devront, au Burkina Faso et en Côte d’Ivoire, satisfaire à des critères d’ordre technique, managérial, financier et de formation pour exercer la profession de transporteur. Plus spécifiquement, la capacité financière requise a pour objectif d’arriver à restaurer la viabilité financière du Secteur des Transports, à travers la garantie qu’à terme, les acteurs du Secteur puissent justifier d’une capacit é financière à même de soutenir le secteur sans attendre une contribution substantielle des bailleurs ou des Etats. Une période probatoire d’au plus deux (02) ans est accordée aux acteurs afin de se conformer aux nouvelles dispositions légales et réglementaires. A3 – En vue d’assurer la mise en œuvre de la réglementation de la charge à l’essieu, le Burkina Faso et la Côte d’Ivoire ont décidé de l’application du délestage de l’extrême surcharge par les plateformes et sur le corridor Abidjan-Ouagadougou. Désormais, les camions qui partent des centres émetteurs de trafic sont tenus de se conformer à la réglementation en matière de charge à l’essieu définie par le Règlement 14 de l’UEMOA. B2 - Le Burkina Faso et la Côte d’Ivoire ont engagé des actions importantes en vue de la mise en place d’un mécanisme durable d'appui au renouvellement du parc pour les transporteurs agréées incluant (i) des dispositifs d’abaissement du coût des véhicules, (ii) un mécanisme de facilitation de l’accès au crédit et (iii) des mesures d’accompagnement. Cela s’est traduit au Burkina Faso par : 1. l’autorisation d’importation en exonération de la TVA et des droits de douane d’ensembles articulés ; 2. la limitation de l’âge d’exploitation des véhicules de transport public à 20 ans : 3. la prise en compte de véhicules porte-conteneurs dans l’autorisation d’importation en exonération de la TVA et des droits de douane afin de promouvoir la conteneurisation ; 4. l’incitation des transporteurs et des chargeurs à la conclusion de contrat s de transports de longue durée et les mesures d’accompagnement, à travers le suivi de l’exploitation des véhicules (pendant sept (07) ans, la formation des gestionnaires des transports aux outils de gestion technique, logistique comptable et financière et des conducteurs; 85 5. l’incitation des transporteurs, surtout les nouvelles entreprises à recourir aux avantages du code des investissements. En Côte d’Ivoire, ce mécanisme a consisté dans :  Dispositifs d’abaissement du coût des véhicules par la - signature d’accords préférentiels avec les vendeurs de véhicules - signature de conventions de financement préférentielles avec les banques ; - baisse des taxes et droits de douane (Il n’existe pas de dispositifs formels en tant que tel dans l’annexe fiscale depuis 2012).  Mécanisme de facilitation de l’accès au crédit par la - conclusion d’accords de financement avec les banques ou partenaires financiers avec le concours de l’Etat (modèle EXIMBANK-Etat de Côte d’Ivoire)) - conclusion d’accords de financement préférentiels avec les banques ou partenaires financiers avec le concours du FDTR (hors Etat) :  ouverture de lignes de garantie par des partenaires financiers dans des banques (modèle SFI) ;  mise en place de lignes de financement classiques à des conditions et taux et préférentiels par les banques (modèle).  Mesures d’accompagnement des transporteurs par - l’élaboration et adoption par le Cabinet de textes limitant l’âge des véhicules de transport public ; - l’élaboration et adoption par le Cabinet de textes organisant le marché du transport routier (concurrence, assainissement du secteur, désordre et violence dans le secteur, etc.) ; - la formation préalable des transporteurs admis au projet ; - l’assistance technique aux transporteurs :  appui à la constitution des dossiers de création d’entreprises ;  appui à la constitution des dossiers de demandes de prêts bancaires ;  conseil en gestion des entreprises sous prêt ; - la conception et mise en œuvre d’un système de prime à la casse. De façon concrète, ce mécanisme a permis : - l’acquisition, à des prix réduits, avec diminution des droits de douane et de la TVA, de 100 véhicules Renault Logan, destinés à servir de taxis horokilométriques dans le District d’Abidjan ; - la conclusion d’un Accord de financement de 100 milliards de francs CFA par l’Etat de Côte d’Ivoire avec Eximbank India pour la livraison, dans le premier semestre 2016, de plus de 3 000 véhicules tous types confondus. 86 Ces mécanismes de renouvellement du parc complet et durable sont mis en place afin de permettre le renouvellement d’une partie significative des camions et une amélioration de la qualité générale de la flotte. Par ailleurs, dans l’optique d’éliminer les véhicules non-conformes du trafic, le Burkina Faso et la Côte d’Ivoire ont procédé à la révision du dispositif et de la réglementation pour l’inspection technique des camions. Ainsi, au Burkina Faso, le Centre de Contrôle des Véhicules Automobiles déconcentre progressivement ses activités dans les chefs-lieux de régions et vers les villes à forte concentration de véhicules, par l’implantation d’antennes permanentes de contrôles techniques et le renforcement des équipes mobiles. Les réceptions techniques à titre isolé et définitives sont actuellement mises en œuvre pour détecter les véhicules qui ne sont p as aux normes, ce qui ne leur permet pas d’être immatriculés et mis en circulation. Pour limiter au maximum les fraudes et les falsifications des titres de transport (cartes grises, permis de conduire, cartes de transport et certificats de visite technique), des mécanismes et dispositifs sont en cours pour la sécurisation et l’authentification en temps réel des titres de transport. En Côte d’Ivoire, le procédé consiste en la libéralisation de la visite technique pour amener le plus grand nombre de véhicules à effectuer la visite technique en rapprochant d’avantage les propriétaires ou détenteurs de véhicules des centres de visite technique. L’Etat de Côte d’Ivoire à travers le Ministère des Transports, exige de ces centres de visite technique, des installations modernes utilisant des équipements fixes ou mobiles de dernière génération technologique, capable d’offrir une meilleure qualité de service et une efficacité dans le contrôle. Ainsi, la Société Ivoirienne de Contrôle Technique Automobiles (SICTA) envisage, pour la période 2016-2020, de renforcer sa présence par un programme d’investissement couvrant principalement les actions suivantes : - déménagement du site de Bassam dans un nouveau site permettant la création de lignes supplémentaires sur cette zone, dont une ligne Poids Lourds ; - acquisition d’équipements mobiles, dont un banc mobile Poids Lourds en vue d’harmoniser les contrôles sur tout le territoire ; - augmentation de la capacité de traitement des véhicules Poids Lourds sur le District d’Abidjan, principalement pour la zone Nord de l’agglomération ; - création de stations de proximité afin de rapprocher la Société de ses clients sur le District d’Abidjan ; - participation aux actions relatives à la sécurité routière, dans le cadre de campagnes de sensibilisation sur les risques liés aux comportements dangereux que les conducteurs pourraient avoir. Ces actions seraient principalement orientés sur la vitesse, l’alcool au volant ou encore le port de la ceinture de sécurité. L’objectif recherché à travers ces réformes est d’améliorer l'efficience des opérations de transport routier de marchandises par la modernisation de la flotte. 87 D1- S’agissant de l’aspect dédouanement, un cadre réglementaire et institutionnel pour la préparation et la maintenance d’un Portail Web d’Informations Commerciales (PWIC) a été défini au Burkina Faso (arrêté conjoint N° 2015-0079/MICA/MEF portant création d’un Comité de Direction pour la mise en œuvre d’un PWIC) et en Côte d’Ivoire (arrêt é N°182/PM/CAB du 02 avril 2015 signé par le Premier Ministre). Ces portails ont pour objet de créer une plateforme électronique contenant toutes les informations sur les procédures et réglementations commerciales dans les deux pays. Cela permettra ainsi aux opérateurs économiques d’être mieux informés et mieux préparés pour des transactions commerciales plus conformes. Plus concrètement, au Burkina Faso, le guichet unique virtuel du commerce SYLVIE a été développé et lancé le 16 février 2016. En Côte d’Ivoire, le PWIC établi conformément à l’Article 1 de l’accord de l’OMC sur la facilitation des échanges, sur la base du modèle de l’UEMOA et des bonnes pratiques internationales est en cours d’implémentation, sur la base du Guichet Unique du Commerce Extérieur (GUCE), avec l’assistance technique de la Société Financière Internationale (SFI). D2- Toujours en matière de dédouanement, les Administrations douanières du Burkina Faso et de la Côte d’Ivoire ont mis en place une base de données informatisée opérationnelle sur les profils de risques des commerçants. Elles ont également renforcé la gestion des risques par l’interfaçage de la base de données de profils de risque des commerçants avec le système de dédouanement, ainsi que les capacités de contrôle a posteriori (CAP) par l’adoption d’une stratégie et d’un manuel de procédures pour les CAP en Côte d’Ivoire et d’un guide de procédure de contrôle après dédouanement adopté par arrêté n°2016-059/MINEFID/SG/DGD du 30 mars 2016 au Burkina Faso. L’objectif de telles mesures est de simplifier les procédures douanières au profit des opérateurs en règle qui, en conséquence, pourront bénéficier d’un traitement préférentiel comme récompense. D3- S’agissant des Standards professionnels de l’Administration des douanes et des Commissionnaires en Douanes Agréés, les Administrations douanières Burkinabè et Ivoiriennes ont amélioration le contrôle interne et le contrôle des Commissionnaires en Douanes Agréés par l’adoption : (i) au Burkina Faso, d’un manuel de contrôle interne et d’un avis aux commissionnaires en douane agréés portant code de conduite des CDA et (ii) en Côte d’Ivoire, d’un plan de formation en Audit interne et d’un programme d’assainissement des Commissionnaires en Douane Agrées, à travers la Décision N° 116/MPMB/DGD du 18 décembre 2014 portant Création et Attributions du Bureau de Suivi des Agréés (BSA). 88  Les Mesures conjointes (B1, E1 et E2) B1- Dans le cadre de l’Appui Budgétaire Régional, le Burkina Faso et la Côte d’Ivoire, guidés par leur volonté commune de raffermir leur coopération bilatérale au profit de la sous-région et de leurs peuples respectifs et, désireux de renforcer les mécanismes d’intégration de leurs économies, ont décidé de la dématérialisation et de la reconnaissance mutuelle des lettres de voiture inter-Etats. Cela signifie que la Côte d’Ivoire reconnaît le BSTR comme document de transport émis par le Burkina Faso et, en retour, le Burkina Faso reconnaît le DUT comme document de transport émis par la Côte d’Ivoire. Les deux pays s’engagent à terme de parvenir à l’utilisation d’un seul document sur le corridor Abidjan-Ouagadougou, dans l’avenir et ont mandaté leurs conseils de chargeurs à convenir des modalités d’émission des documents et des aspects financiers. Les deux Etats ont également convenu de la mise en place d’un Comité Technique Conjoint à qui ils ont donné mandat de réviser l’Accord Bilatéral sur le Transport Routier qui date du 27 juillet 1999. Le nouvel Accord bilatéral de Transport routier de marchandises entre le Burkina Faso et la Côte d’Ivoire signé le 12 mai 2016 par les Autorités compétentes des deux pays, est un texte substantif et ambitieux incluant, entre autres, des dispositions sur la facilitation du commerce et des transports, la répartition du fret, l’ouverture des marchés de transport dans le cadre du Traité d’Amitié et de Coopération (TAC) et en adéquation avec les objectifs fondamentaux de l’Accord de Financement de l’ABR. L’Accord bilatéral sur le Transport routier révisé, ainsi que la dématérialisation et la reconnaissance mutuelle des lettres de voiture inter-Etats permettront d’améliorer l’efficience des opérations de transport routier de marchandises, grâce à de meilleures relations contractuelles entre les transporteurs et les chargeurs, ce qui aura pour résultats l’élimination des intermédiaires entre la demande et l’offre de services de transport, une réduction des prix et une meilleure utilisation des camions. E1- Le Burkina Faso et la Côte d’Ivoire, soucieux de promouvoir les réformes nécessaires à l’amélioration de la compétitivité du corridor Abidjan – Ouagadougou et de renforcer leurs échanges ont convenu d’établir un cadre permanent conjoint des Douanes, autres Agences de gestion des frontières et opérateurs logistiques pour préparer et gérer le processus d’interconnexion et adoption d’un accord portant sur (i) la liste des sujets techniques à régler, y compris l’harmonisation des documents et des procédures et (ii) un chronogramme précis de 89 mise en œuvre des actions. Dans ce cadre, un Protocole d’Accord sur l’interconnexion des Systèmes Informatiques des Administrations douanières Ivoiriennes et Burkinabé a été signé le jeudi 19 mars 2015, à Abidjan, par les Directeurs Généraux des Douanes du Burkina Faso et de la Côte d’Ivoire. L’objectif recherché est d’améliorer les conditions de passage à la frontière entre la Côte d’Ivoire et le Burkina Faso, ce qui aura pour conséquence de réduire les délais de passage des postes frontières. E2- Dans le cadre du Transit Routier Inter-Etats de marchandises, le Burkina Faso et la Côte d’Ivoire ont signé, le 05 février 2014, un Protocole d’Accord portant cautionnement des Acquit - à-caution sur le Corridor Abidjan-Ouagadougou, à travers leurs Chambres de Commerce et d’Industrie respectives. Face aux difficultés de mise en œuvre de ce Protocole d’Accord et considérant leur volonté d’appliquer le mécanisme de la Garantie Unique, les deux Cautions Nationales ont approuvé et signé, le 19 mars 2015, un Avenant au Protocole d’Ac cord du 05 février 2014, en vue de rendre effective la mesure relative au paiement unique de la Garantie TRIE. En application de cet Avenant, un arrêté signé le 05 décembre 2014 par le Ministre en charge de l’Economie et des Finances du Burkina Faso met fin au prélèvement par le Burkina Faso de 0,25% de la valeur CAF de la marchandise en transit à la frontière Côte d’Ivoire – Burkina. L’objectif, à travers cette mesure, est l’amélioration du régime de transit entre les deux pays.  Les Mesures spécifiques (A2, A3, B1, C1, D2 et F1) A2- En Côte d’Ivoire, le Ministère des transports a approuvé les Statuts et le Règlement Intérieur pour la création d’une Association professionnelle faîtière indépendante, représentant l’industrie du transport routier de marchandises, conformément aux meilleures pratiques internationales. En effet, les acteurs du transport sont organisés en une Fédération, le Haut Conseil du Patronat des Entreprises de Transport Routier de Côte d’Ivoire (HCPETR -CI) qui constitue l’interlocuteur unique de l’Administration. Cette Fédération est une Société Coopérative avec Conseil d’Administration, créée conformément à l’Acte OHADA sur les Sociétés Coopératives. Le HCPETR-CI se pose, ainsi, en partenaire crédible du Secteur public et accompagnera effectivement le processus de professionnalisation du Secteur des Transports. A3- La signature en Côte d’Ivoire par le Ministre en charge des Transports et le Ministre en charge des Infrastructures Economiques d’un arrêté interministériel définissant la répartition des attributions entre ces deux Ministères permettra le respect de l’application du Règlement 14, notamment en ce qui concerne la réglementation et le contrôle en matière de charge à l’essieu. Outre l’application effective de la réglementation 14 de l’UEMOA, cette mesure réduira 90 de façon significative les pratiques prédatrices et les camions qui partent des Centres émetteurs de trafic seront conformes en matière de charge à l’essieu. B1- S’agissant de la révision et de l’application du cadre réglementaire organisant la délivrance des Lettres de voiture selon le modèle OHADA, des dispositions sont prises, en Côte d’Ivoire, par le Ministère en charge des Transports pour la révision des textes relatifs à la Lettre de Voiture. Il s’agit, notamment de la signature d’un décret et de deux arrêtés adaptant tous les textes traitant de la Lettre de Voiture au principe d’un document unique retenu. Ce document unique, appelé Document Unique de Transport (DUT), prend en compte la Lettre de Voiture Internationale, la Lettre de Voiture Nationale et la Feuille de Route. C1- Dans le cadre de la compétitivité du Port Autonome d’Abidjan (PAA) et des plateformes logistiques intérieures, un arrêté du Ministre en charge des Transports (arrêté N° 007 du 27 avril 2015 déterminant les conditions d’exercice du transport public de ma rchandises par conteneurs) clarifie les conditions de livraison des marchandises conteneurisées sur tout le territoire national afin de mettre un terme au monopole des acconiers. Cette libéralisation de la livraison de conteneurs, non seulement à Abidjan, mais dans tout le pays, entraînera une réduction du coût de passage au Port Autonome d’Abidjan, pour être en -dessous de la moyenne ouest-africaine. En outre, toujours dans l’optique d’améliorer l'efficacité opérationnelle des ports et des terminaux et de réduire les prix, un arrêté du Ministre des Transports de la Côte d’Ivoire en date du 19 février 2016 a réactivé la Commission de Compétitivité des Ports Ivoiriens (arrêté N° 005 du 19 février 2016 portant création, organisation et fonctionnement de la Commission de Compétitivité et de Développement des Ports Ivoiriens). Cette Commission a tenu sa dernière réunion le 17 mars 2016. D2- Dans le cadre de la Simplification des procédures douanières pour les opérateurs en règles et de la récompense de ces derniers par un traitement préférentiel, la Côte d’Ivoire a adopté et mis en œuvre un cadre réglementaire définissant les critères et le mode de fonctionnement d’un régime d’Opérateurs Economiques Agrées (OEA). F1- Dans le cadre du renforcement des capacités de l’Administration des douanes et des Commissionnaires en Douanes Agréés, la Côte d’Ivoire a adopté, le 17 décembre 2014, un Code d’Ethique et de Bonne Gouvernance des Douanes en vue de permettre une application de la réglementation améliorée et promouvoir l’intégrité. 91 ANNEXE 2 : MESURES D’ACCOMPAGNEMENT DES REFORMES ET RENFORCEMENT DES CAPACITES Pour le Burkina Faso Mesures d’accompagnement des réformes : l’un des nœuds gordiens de cette professionnalisation que le décret viendra résoudre reste la question du vieillissement du parc des véhicules. Aussi, des mesures d’accompagnement doivent suivre, notamment : - La mise en place d’un mécanisme d'appui au renouvellement de la flotte pour les transporteurs agréés incluant (i) des dispositifs d’abaissement du coût des véhicules (dont exonération des taxes et droit de douanes), (ii) un mécanisme de facilitation de l’accès au crédit et (iii) des mesures d’accompagnement ; - La résolution de la problématique de la charge à l’essieu, essentielle pour la compétitivité des corridors et des économies des Etats à travers l’application effective et concomitante des dispositions du règlement n°14 ; - L’élaboration et la mise en œuvre d’un plan de formation des acteurs publics administratif (renforcement des capacités de planification et de gestion des activités de transport)et des acteurs privés(appropriation du contenu des décrets, renforcement de la compétitivité des entreprises de transport). Renforcement des capacités : la formation pour le renforcement des capacités des acteurs est un des axes stratégiques de la politique nationale de développement du secteur des transports. Aussi, l’élaboration et la mise en œuvre de programmes de formations et de recyclages en tant que formule d’assistance au profit des opérateurs du secteur des transports routier sont des actions inscrites dans les programmes d’activités de l’administration en charge des transports. La contrainte majeure reste la mobilisation des ressources financières. Réalisation de programmes de formation-recyclage des opérateurs : l’élaboration et la mise en œuvre de programme de formation et de recyclage en tant que formule d’assistance au profit des opérateurs du secteur des transports routier a pour objectif de leurs donner les outils de maitrise d’une gestion efficiente de leurs activités et de leur parc de véhicules d’une part, d’autre part afin de les ouvrir sur les conditions du transport international . Les modules de formation couvriront les différents aspects de l’activité de transport et permettront de : - maitriser la gestion commerciale de l’activité de transport ; - maitriser la gestion logistique et technique des parcs de véhicules de transport public routier ; 92 - comprendre les systèmes de financement de l’activité de transport ; - renforcer les connaissances de l’environnement institutionnel, législatif et règlementaire des transports publics routiers. A titre d’illustration, on peut citer les modules suivants : - les modalités de formation du contrat de transport ; - les différents éléments de coût de la chaîne de transport ; - les responsabilités des différents intervenants de la chaîne de transport ; - la formation sur les procédures de dédouanement ; - la formation sur la nomenclature tarifaire UEMOA ; - la réglementation et l’organisation des transports internationaux ; - la couverture des risques en matière de transports internationaux ; - le contrôle de la surcharge des véhicules de transports de marchandises. - assistance aux organisations professionnelles à défendre les intérêts de la profession. Appui aux organisations professionnelles : il consistera à l’organisation des actions communes telles que (i) la réalisation d’études pour la réduction des coûts et (ii) l’amélioration des conditions d’assurances, etc... - permettra d’assurer un meilleur encadrement aux transporteurs à travers (i) l’organisation de séminaires d’information et de sensibilisation (ii) l’organisation de formations des gestionnaires de transport (iii) la mise à disposition de la documentation sur l’activité de transport. Appui financier à l’Administration des Douanes : il permettra de : - finaliser son projet de mise en place d’un système d’analyse du risque et de la sélectivité des opérations commerciales ; - mettre en place un système de géo localisation sur le corridor Abidjan-Ouaga ; - renforcer les capacités des Commissionnaires en Douane Agréé (CDA) ; - mettre en place des outils de contrôle non intrusifs à la frontière Niangologo et aux terminaux de Ouagarinter et Boborinter. Pour la côte d’Ivoire Concernant le secteur des transports : le succès de la mise en œuvre de la politique de développement et de modernisation du système des Transports en Côte d’Ivoire nécessitera des actions et mesures vigoureuses de soutien, de formation, d’équipement et d’encadrement des acteurs tant publics que privés du Secteur. Aussi, est-il prévu : 93 - un appui financier aux Auto-écoles pour l’étude et l’acquisition des équipements adéquats à l’amélioration de la formation de base des potentiels conducteurs ; - un appui financier au Ministère des Transports pour l’étude et la construction de Centres de Formation Professionnelle Diplômant au Certificat d’Aptitude Professionnelle des conducteurs ; - un appui financier au Ministère des Transports pour l’étude et la prise en charge du coût social résultant de la mise en œuvre de la réforme, notamment l’application des nouveaux critères d’accès à la profession de transporteur ; - la construction d’aires de repos sur les corridors, notamment sur le corridor Abidjan - Ouagadougou. Il est prévu trois (03) aires de repos sur la partie ivoirienne du corridor, pour un investissement global de neuf (09) milliards de FCFA ; - le renouvellement du parc automobile. Le programme de renouvellement du parc élaboré par le Ministère des Transport se chiffre à 750 milliards de F CFA sur cinq (05) ans. Les banques commerciales locales ont déjà mis en place une ligne de crédit de 50 milliards de FCFA. Un fonds dédié à ce Projet vient de voir le jour. Il a besoin d’un appui financier à hauteur de 150 milliards qui lui donnera la capacité de lever des ressources plus importantes au niveau des banques commerciales ; - la modernisation de la gestion du fret. Il y a nécessité de revoir la réglementation en vue de garantir un accès équitable des transporteurs au fret routier ; - la facilitation de la mise en œuvre du règlement 14 de l’UEMOA sur la problématique de la lutte contre les surcharges des véhicules par le financement de mesures d’accompagnement en faveur des transporteurs ; - l’instauration d’une prime à la casse avec un appui financier estimé à deux (02) milliards de FCFA sur une période de cinq (05) ans en vue de faciliter la mise en œuvre de la politique de réduction de l’âge du parc automobile en circulation. Concernant les Douanes : l’Administration des Douanes a adopté un plan de modernisation et de réformes à six (06) composantes avec l’appui d’AFRITAC de l’Ouest (FMI). La mise en œuvre de ce plan rencontre des difficultés en raison d’un manque de financement. L’Administration des Douanes souhaite être appuyée par les Partenaires Techniques et Financiers (assistance financière et technique) afin de mener son programme de réformes à son terme. 94 ANNEXE 3 : PLAN D’ACTIONS A MOYEN TERME POUR LA MISE EN ŒUVRE DE LA STRATEGIE Pour le Burkina Faso  Réforme du cadre législatif et règlementaire de l’accès à la profession Le développement de l’industrie des transports routiers dépend fortement de la capacité des transporteurs routiers à accroitre la qualité de leurs services, à se doter d’outils de gestion et à investir dans la formation. A cet effet, la professionnalisation des transporteurs nécessitera la mise en œuvre du décret portant conditions d’accès à la profession de transporteur. Les activités à réaliser dans ce cadre peuvent se résumer à : - la production et la distribution de fascicules sur les textes relatifs aux conditions d’accès la profession de transporteurs ; - - la mise en œuvre cinq (05) cahiers des charges des charges des différentes catégories de transport adoptés en 2015 ; - la mise en place d’une stratégie de communication sur le contenu et les enjeux de la nouvelle réglementation ; - l’organisation de Séminaires régionaux de vulgarisation et d’appropriation du décret ; - l’organisation de formations de renforcement des capacités des Agents de l’Administration des transports et des forces de contrôle.  Contrôle de la charge à l’essieu L’objectif visé par le contrôle de la charge à l’essieu est de préserver le patrimoine routier existant. Il s’agira de doter la DGTTM et l’ONASER de moyens leur permettant de contrôler et réprimer les infractions commises en violation des dispositions des règlements communautaires et nationaux en matière des normes de chargement, de gabarit et de poids des véhicules de transport public et privé. Les actions porteront sur : - l’application effective de la réglementation adoptée pour assurer le contrôle des surcharges ; - la construction, l’équipement et l’exploitation des stations fixes de pesage -comptage à l’intérieur du pays ; - l’organisation de rencontres et de missions d’information et de sensibilisation des opérateurs de transport ; 95 - l’accroissement du nombre de Centres de visite technique en vue de faciliter l’accès de ces Centres aux usagers.  Modernisation de l’organisation du marché du transport L’organisation de la concurrence sur le marché des transports routiers de marchandises a pour objectif de stimuler la concurrence entre les transporteurs et réduire les coûts de transports. Les actions viseront à : - améliorer le fonctionnement des mécanismes concurrentiels des marchés de transport terrestre de marchandises par la suppression, dans un terme qui sera défini d’accord parties, des quotas de répartition de fret entre pays de transit et pays de destination, à travers la relecture des Accords de transport routier dans le cadre des sessions des Commissions Mixtes de Coopération et aussi à l’échelle communautaire ; - apporter une assistance aux chargeurs dans le cadre de leurs négociations avec les opérateurs portuaires et les transporteurs. Au niveau de la Chambre de Commerce et d’Industrie du Burkina Faso, les actions en cours concernent la promotion de la conteneurisation, à travers les « Journées Nationales de la Logistique ». A cet effet, il est prévu l’animation et le partage des conclusions des travaux des Commissions mises en place par les Journées Nationales de la Logistique 2014. Le fondement de la promotion de la conteneurisation pour les pays de l’hinterland comme le Burkina Faso est la recherche d’une plus grande compétitivité de la chaîne de transport et des effets d’entraînement sur l’économie nationale. Dans cette dynamique le Conseil Burkinabé des Chargeurs (CBC) et la Chambre de Commerce et d’Industrie du Burkina Faso (CCI -BF) ont entrepris des initiatives en faveur de ce mode de transport. Pour le Conseil Burkinabé des Chargeurs, dans le cadre de cette promotion de la conteneurisation, il s’agira de poursuivre la mise en œuvre des recommandations de l’étude portant élaboration d’une stratégie de promotion de la conteneurisation de bout en bout dans les pays de l’hinterland de l’Afrique de l’Ouest.  Dispositifs de renouvellement du parc L’industrie du camionnage souffre au Burkina Faso de l’absence d’un système de financement adapté des véhicules neufs de transport de marchandises. La modernisation du parc des véhicules nécessite les actions suivantes : -la mise en place de mécanismes adéquats de financement des acquisitions de véhicules neufs, en vue d’assainir la situation du parc actuel ; 96 La création d’un fonds de soutien au profit des transporteurs pourrait être envisagée, notamment aux petits et moyens transporteurs pour contribuer à la prise en charge des coûts d’acquisition de nouveaux véhicules ou de remise en état des véhicules. Le soutien peut revêtir plusieurs formes, notamment : - l’accès à des subventions et/ou des crédits de développement pour le renouvellement du parc automobile ; - l’exonération ou diminution des droits de douanes ou de taxes dus à l’importation des véhicules poids lourds ; - la mise en place de mesures fiscales (réduction des droits et taxes à l’importation des pièces de rechange) afin d’aider les transporteurs à remettre en état leurs véhicules poids lourds ; - le renforcement de l’inspection technique des véhicules (réduction des accidents de la circulation) ; - le contrôle et l’inspection des services des transports ; - l’amélioration de l’organisation de l’accès au fret routier.  Efficacité et efficience des opérations portuaires et au terminal Les actions au niveau de la Chambre de commerce et d’industrie du Burkina se résu ment à : - la réalisation de l’étude de faisabilité technico-économique du port sec multimodal de Ouagadougou ; - l’organisation d’un Séminaire sur le transport international et le transit à Ouagadougou et Bobo-Dioulasso en Octobre 2014.  Réforme des procédures douanières et facilitation du transit L’Administration des Douanes s’en tient à la programmation telle que déclinée dans la Matrice validée lors des travaux du 13 au 16 Juin 2014 à Abidjan.  Renforcement des capacités institutionnelles et organisationnelles Le développement du secteur des transports nécessite un renforcement des capacités institutionnelles et organisationnelles des Structures publiques et privées du Secteur. La Direction Générale des Transports Terrestres et Maritimes (DGTTM) est une des Directions Centrales du Ministère des Infrastructures, du Désenclavement et des Transports (MIDT) chargée de réglementer, planifier et contrôler la mise en œuvre de la politique nationale en matière de transports terrestres, maritimes et fluviaux etc... 97 Le Burkina Faso est un pays sans façade maritime mais qui voit plus de 90% de son commerce extérieur exécuté par voies de surface. Il connaît donc des problèmes de pré et post transport maritime et se doit d’accroître les capacités des cadres chargés des transports. Le renforcement des capacités institutionnelles et organisationnelles des Structures publiques et privées du Secteur pourrait se faire à travers les actions suivantes : - la réalisation des missions ponctuelles d’études, d’appui technique et de formation ; - l’élaboration de Programmes de formation du personnel et l’organisation de stages de recyclage/perfectionnement ; - la mise en place d’outils d’aide à la décision pour assurer le contrôle des activités de transport ; - l’amélioration de la base de données (aider à l’amélioration de la collecte, du traitement et de l’analyse des données statistiques dans le domaine des transports terrestres et maritimes) ; - la réalisation d’une étude prospective pour le développement stratégique de la Direction générale des transports terrestres et maritimes en vue la mise en place d’un plan de gestion des ressources humaines en adéquation avec les missions dévolues à la structure et l’environnement international, la mise en place d’un plan de carrière et des mécanismes de formation continue et diplômante des agents ; - l’identification des besoins de formation et la mise en place d’un plan de formation formel. La mise en place de ce plan de formation formel : - sous-tend le renforcement des capacités des Cadres et Agents du Ministère en charge des Transports en vue d’une meilleure planification et gestion des activités de transport terrestre et maritime ; - contribuera à la mise à niveau des capacités institutionnelles et humaines dans les Institutions et les Organisations concernées par le transport. Plus spécifiquement, le plan de formation vise au terme de sa mise en œuvre, à doter le Ministère en charge des Transports, de Cadres et Agents compétents ayant les profils suivants : - des Economistes en transport (formations diplômantes, stages ou voyages d’étude) ; - des Juristes en transports (formations diplômantes, stages ou voyages d’étude) ; - des Ingénieurs en transport et logistique (formations diplômantes, stages ou voyages d’étude) ; - des Techniciens Supérieurs en Transport et Logistique (formations diplômantes, stages ou voyages d’étude) ; - des Gestionnaires de trafic (formations diplômantes, stages ou voyages d’étude). 98 Pour la Côte d’Ivoire  Réforme du cadre législatif et réglementaire de l’accès à la profession Loi d’Orientation du Transport Intérieur (LOTI) adoptée et promulguée. Plusieurs décrets et arrêtés d’application ont été pris et publiés, d’autres décrets et arrêtés d’application sont en cours d’élaboration.  Contrôle de la charge à l’essieu Projets de texte élaborés. Il reste la validation consensuelle par le Ministère des Transports et le Ministère des Infrastructures Economiques.  Modernisation de l’organisation du marché du transport Etude réalisée par l’Assistance Technique de l’UE et présentée. Elle reste à être validée.  Dispositifs de renouvellement du parc Les réflexions sur le mécanisme sont en cours. Le Cabinet du Ministre des Transports a travaillé avec l’équipe de l’Assistance Technique de l’Union Européenne sur un schéma possible de renouvellement de la flotte. Les documents de cette étude sont en cours d’élaboration et sont disponibles.  Efficacité et efficience des opérations portuaires et au terminal L’Autorité portuaire a défini une nouvelle stratégie de développement du Port Autonome d’Abidjan, à travers le plan stratégique 2013-2017 afin de relever les nombreux défis et de renforcer la compétitivité du Port d’Abidjan. Cette ambition s’inscrit dans la vision globale du Gouvernement qui veut faire de la Côte d’Ivoire un pays émergent à l’horizon 2020. Les principaux Projets qui sous-tendent et qui sont prévus pour la période 2013-2017 et dont certains ont effectivement démarré sont les suivants : - Le Projet de construction d’un deuxième terminal à conteneurs qui a pour objectif de faire baisser les coûts ; - Le Projet d’élargissement et d’approfondissement de la passe d’entrée du Canal de Vridi ; - Le Projet de réhabilitation et de modernisation du port de pêche ; - Le Projet de réalisation d’un terminal céréalier ; - Le Projet de modernisation du quai minéralier ; - Le Projet de gain d’espaces industriels par remblaiement de la baie lagunaire de Biétry - Vridi ; - Le Projet d’amélioration des parkings (réfection du parc OIC et création d’un parc de stationnement au PK 25, Autoroute du Nord) qui permettra le désengorgement de la plateforme portuaire. 99 La mise en œuvre de tous ces Projets devra permettre d’améliorer significativement les conditions et les capacités d’accueil des trafics et d’accroître la compétitivité du Port d’Abidjan.  Réformes des procédures douanières et facilitation du Transit La question du transit a toujours été une source de préoccupation pour les autorités douanières de Côte d’Ivoire, en raison des déversements frauduleux à l’occasion de ces opérations. Aussi, avons-nous expérimenté l’Escorte, le TRIE, le T1 couplé avec la géo localisation. Malheureusement, toutes ces expériences se sont révélées infructueuses (problème de balises, état des camions, absence de parc de stationnement des camions, cargaisons non hermétiques…), raison pour laquelle les autorités douanières souhaitent la réalisation du Projet d’interconnexion des Systèmes Informatiques des Douanes du Burkina Faso et de la Côte d’Ivoire qui, à terme, facilitera les échanges.  Renforcement des capacités institutionnelles et opérationnelles L’Administration des Douanes a un besoin de renforcement des capacités de tous ses Agents. Les Gouvernements Burkinabé et Ivoirien apprécient les efforts de la Banque Mondiale pour sa contribution à la définition de stratégie de développement de leurs pays respectifs et travailleront à renforcer ce partenariat quant à la mise en œuvre notamment des Programmes d’investissement à caractère régional. 100 ANNEXE 4.1 : CHRONOGRAMME DE MISE EN ŒUVRE DES ACTIONSDEVANT CONDUIRE A L’APPLICATION INTEGRALE DU RÈGLEMENT 14 AU BURKINA FASO N° ACTION I. Opérationnalisation des stations fixes de pesage et équipement des plateformes en matériel de pesage Activités Structures responsables Echéance Observations 1 Prise de mesures et actions pour rendre  M. des Infrastructures Décembre 2016 La Société Afrique fonctionnelles les cinq (05) stations de pesage  Société adjudicatrice du Pesage est déjà sur le financées par l’Union Européenne marché terrain depuis le 5 octobre 2016 pour ce faire 2 Equipement des plateformes génératrices de fret  Plateformes Mars 2017 de plus de 200 000 tonnes/an génératrices de fret de plus de 200 000 t/an ACTION II : Information –formation et sensibilisation des acteurs Activités Structures responsables Echéances Observations 1 1. Activités de communication médias Diffusion de communiquer presse écrite sur Novembre 2016 l’application règlement 14  MTMUSR/ONASER Diffusion de Communiquées radio en français et Novembre 2016 langues nationales Distribution de dépliants sur les charges admises Novembre 2016 par silhouette de camion Réalisation et diffusion du spot télé sur A compter du 1er l’application intégrale du règlement 14 février 2017 2 Activités interactives d’échanges, d’information et de formation Réunion des administrations en charges des  MTMUSR (DGTTM, CBC, transports et du commerce sur les tarifs de ONASER) Décembre 2016 transports 101  MCIA (DG Commerce) Réunion des administrations en charges des  MTMUSR(ONASER- transports, des finances, des infrastructures et du DGTTM-CBC) commerce sur les procédures de délestage des  MINEFID (Douane), Décembre 2016 véhicules en surcharge  MI( FSR-B),  MATDSI (DGPN),  MDNAC (EMGN). Rencontre d’échanges avec les plateformes  MTMUSR génératrices de plus de 200 000 tonnes/an de fret  MI  M Mines,  MCIA, Novembre 2016  MATDSI (DGPN),  MDNAC (EMGN),  Plateformes Rencontre d’échanges avec les organisations  MTMUSR (DGTTM, CBC, socioprofessionnelles de transporteurs et de ONASER, CCVA) conducteurs routiers  MCIA  MINEFID (Douane) Janvier 2017  MATDSI (DGPN),  MDNAC (EMGN),  Transporteurset chauffeurs routiers. Rencontre d’échanges avec les chargeurs  MTMUSR (DGTTM, CBC, ONASER, CCVA)  MCIA  MINEFID (Douane) Janvier 2017  MATDSI (DGPN),  MDNAC (EMGN)  Chargeurs. Réunion de tous les acteurs au CBC pour le  MTMUSR (DGTTM, CBC, Les ministres des lancement de l’application intégrale du règlement ONASER, CCVA) Mars 2017 Transports, des 102 14  MCIA Infrastructures, des  MINEFID (Douane) Finances, du Commerce  MATDSI (DGPN), et de la Sécurité  MDNAC (EMGN). coprésideront cette réunion de lancement. ACTION III. Contrôle de la charge des véhicules Activités Structures Echéances Observations 1 Contrôle de la charge des véhicules avec  MTMUSR/ONASER Fin janvier 2017 application d’une tolérance de 20%. 2 Contrôle de la charge à l’essieu avec application  MTMUSR/ONASER Fin mars 2017 20 000 FCFA et 60 000 des amendes du R14, mais sans délestage FCFA respectivement en transport national et international. 3 Application intégrale du règlement 14 (amendes  MTMUSR/ONASER 1er avril 2017 Le délestage s’effectue et délestage). par les services des douanes, dans les enceintes douanières 4 Pénalisation des plateformes génératrices de fret  MTMUSR/ONASER 1 er avril 2017 L’amende pour défaut de plus de 200 000t/an non équipées de pèses d’équipement s’élève à essieux fonctionnels 50 000 000 FCFA. 5 Pénalisation de la surcharge des véhicules sortant  MTMUSR/ONASER 1 er avril 2017 L’amende pour des plateformes génératrices de fret de plus de manquement à 200 000t/an l’obligation de pesage s’élève à 200 000 FCFA/véhicule. Action IV. : Mise aux normes des véhicules lourds de transport de marchandises 1 Ateliers d’échanges avec les carrossiers sur les  MTMUSR (DGTTM, Décembre 2016 procédures et normes de transformation des ONASER, CBC, CCVA) ; véhicules  Carrossiers 2 Prise en compte des véhicules à sept (07) essieux,  MTMUSR/ONASER Janvier 2017 de type T12 S4, dans la silhouette des véhicules. 103 ACTIONS V. Transmission d’informations à la Banque mondiale 1 Transmission du chronogramme validé  MINEFID Octobre 2016 2 Transmission des supports de communication déjà  MTMUSR/ONASER Octobre 2016 menées par l’ONASER et autres documents relatifs aux actions de mise en œuvre du règlement 14. 3 Transmission des 1ères données statistiques  MTMUSR/ONASER Mars 2017 104 Annexe 4.2 : chronogramme d’application du Règlement 14 de l’UEMOA en Côte d’Ivoire Conformément à la Déclaration de la Réunion des Ministres en charge des Infrastructures et du Transport Routiers des Etats Membres de l’UEMOA et de la Guinée du 23 Septembre 2016, à Cotonou (Bénin), le chronogramme de l’application du Règlement 14 de l’UEMOA est ainsi fixé :  1er Octobre 2016 au 31 Mars 2017 : Lutte contre l’extrême surcharge constatée sur le Poids Total Autorisé en Charge (PTAC) sans délestage sur tous les corridors y compris le corridor (Abidjan/Ouagadougou) :  Surcharge au-delà de 40% du PTAC (Extrême surcharge) : Les amendes : 20 000 FCFA / tonne excédentaire pour le trafic national, 60 000 FCFA/tonne excédentaire pour le trafic international ;  Il est fait obligation à toutes les plateformes d’empêcher la sortie des camions de leurs enceintes avec la surcharge extrême (surcharge au-delà de 40% du PTAC) sous peine d’une amende de 200 000 FCFA par camion ;  Les plateformes devront délivrer un ticket de pesée à tous les camions sortant de leurs enceintes sous peine d’une amende de 200 000 FCFA ;  100 000 FCFA d’amende pour le non-respect de la hauteur de gabarit fixée à 4,5 mètres ;  A partir du 1er Février 2017 : Application intégrale du Règlement 14 dans les Ports d’Abidjan et de San Pedro avec délestage :  Equipement en pèse essieux des ports d’Abidjan et de San Pedro et application intégrale avec délestage dans lesdits Ports (tolérance 5% marge d’erreur de pesée), sous peine d’une amende de 50 millions FCFA pour les ports non équipés en pèse-essieux et en matériel pour la vérification du respect des normes de gabarit ;  Les Ports d’Abidjan et de San Pedro devront délivrer un ticket de pesée à to us les camions sortant de leur plateforme portuaire sous peine d’une amende de 200 000 FCFA par camion ;  100 000 FCFA d’amende pour le non-respect de la hauteur de gabarit fixée à 4.5 mètres ; 105  A partir du 1er Avril 2017 : Application intégrale du Règlement 14 avec délestage dans toutes les plateformes et sur tous les corridors y compris le corridor (Abidjan/Ouagadougou) :  Équipement en pèse essieux fixes ou mobiles des plateformes générant plus de 200 000 tonnes de fret par an, et application intégrale du Règlement 14 (tolérance 5 % marge d’erreur de pesée) sous peine d’une amende de 50 millions de FCFA pour les plateformes non équipées en pèse-essieux et en matériel pour la vérification du respect des normes de gabarit ;  Amendes prévues dans le Règlement 14 (sur le PTAC ou la charge maximale à l’essieu) : 20 000 FCFA/ tonne excédentaire pour le trafic national et 60 000FCFA/tonne excédentaire pour le trafic international ;  Les plateformes devront délivrer un ticket de pesée à tous les camions sortant de leurs enceintes sous peine d’une amende de 200 000FCFA ;  100 000 FCFA d’amende pour le non-respect de la hauteur de gabarit fixée à 4,5 mètres. 106 MINISTRY OF ECONOMY, BURKINA FASO FINANCE AND DEVELOPMENT --------------------------- --------------------------- MINISTRY ATTACHED TO THE OFFICE OF THE PRIME REPUBLIC OF COTE D’IVOIRE MINISTER WITH RESPONSIBILITY FOR ECONOMY --------------------------- AND FINANCE ----------------------- November 7, 2016 The Ministers to Mr. Jim Yong Kim President of the World Bank WASHINGTON, D.C. Subject: Letter of Development Policy for the Freight Transport Industry in Burkina Faso and Côte d’Ivoire and the Abidjan- Ouagadougou Transit Corridor (2015-2017) Dear Mr. President, This Letter of Development Policy (LDP) describes socioeconomic developments in Burkina Faso and Côte d'Ivoire in 2015 and economic trends in 2016 in these two countries. It sets out the specific objectives and sectoral policies of the Burkinabè and Ivoirian authorities in the areas of transport and customs, and discusses the outlook for these two sectors in 2016. The Governments of Burkina Faso and Côte d’Ivoire are asking the World Bank to support the implementation of their programs in these sectors. They note, in particular, that both countries have, with World Bank support since 2015, been firmly committed to the sustained integration of their economies, through harmonization of their respective legislations and dynamic collaboration between both governments in these two sectors. In accordance with the timetable put in place for this purpose, this process runs until end-2016. To this end, for the second year of this process, Burkina Faso and Côte d’Ivoire are requesting Regional Budgetary Support in an amount equivalent to US$50 million each. IV. BACKGROUND a- Development context in Burkina Faso and Côte d’Ivoire The economic activity in Burkina Faso, after a year of growth slowdown in 2015 to 4.0% against 4.2% in 2014, gradually increased in the first half of 2016, and prospects for the year remain favorable. Growth increased to 4.7% during the first quarter, reflecting the impact of the terrorist attacks of January, and to 8.3% during the second quarter of 2016 (year on year), led by the tertiary sector. The country adopted on 20 July 2016, its National (PNDES) National and Economic Social Development Plan (Plan national de développement 107 économique et social, PNDES) as the instrument defining the strategic and economic and social development directions for the period 2016-2020. The PNDES replaces the Strategy for Accelerated Growth and Sustainable Development (SCADD) 2011-2015 and is rooted in the program “Build with the people a Burkina Faso of democracy, economic and social progress, freedom and justice� (Bâtir avec le peuple un Burkina Faso de démocratie, de progrès économique et social, de liberté et de justice) of His Excellency Mr. Roch Marc Christian KABORE, President of Faso, in the “Burkina 2025� vision and in international commitments (Agenda 2063 of the African Union, and the objectives of sustainable development) to which Burkina signed up to. The overall objective of PNDES is to achieve structural transformation of Burkina’s economy, for a growth that is robust, sustainable, resilient, inclusive and creating good jobs. The overall cost of implementation of PNDES is estimated at 15,395.4 billion FCFA, for an annual cost of 3,079.1 billion FCFA. This will be financed for 63.8% by own resources (9,825.2 billion FCFA) and for 36.2% – 5,570.2 billion FCFA – by other resources. The share of investment spending will be 54.6%, amounting to 8,408.2 billion FCFA over the period, and 1,681.6 billion FCFA each year. Regarding Côte d’Ivoire, it has since 2012 resumed on a path of strong, sustained, and inclusive growth that is gender-sensitive and environmentally responsible. The execution of the National Development Plan (PND 2012-2015), coupled with the implementation of far-reaching structural reforms, have stimulated and maintained sustained growth in economic activity. Thus, the GDP growth rate was 9 percent on average over the 2012-2015 period. The private sector played a major role in sustaining this growth, primarily through massive investments in the energy, mining, and building and public works sectors, the development of services, and the establishment of processing units for agricultural products. This robust economic activity is being achieved in an environment of moderate inflation, which is below the community standard of three percent, of improved public financial management, and positive trends in the current account balance. This favorable economic environment has placed Côte d’Ivoire back on the international stage, as evidenced by the return of the African Development Bank (AfDB) to Abidjan, the opening up of the sub-regional office of the African Export-Import Bank (AFREXIMBANK), the return of the regional and national head offices of the International Labor Office and Africa Rice, and Côte d’Ivoire’s successful entry into the international capital market. Maintaining this growth momentum and the consolidation of the new development strategy (PND 2016-2020) should help Côte d’Ivoire significantly reduce poverty and achieve emerging country status by 2020. Special emphasis will be placed on increased private sector participation in the development process and on improving human development conditions through, in particular, the implementation of the “Education for All,� “Electricity for All,� “One Citizen, One Computer, and an Internet Connection,� and “Universal Health Coverage� programs, as well as improved access to drinking water and food self- sufficiency. This overall context has created the following specific circumstances: a.1 - Development context in Burkina Faso Real GDP growth is expected to be at 5.4 percent in 2016, an increase of 1.4 percentage points relative to 2015. Given relatively low oil prices, sustained gold and cotton prices, and favorable rainfall, the growth rebound should benefit all sectors. The agriculture, forestry, fishing and mining sector should rebound with an increase of 3.8% of its value added, after a decrease of 1.2% in 2015, mainly due to increase in the agriculture sector. Moreover sustained economic activity in services (+5.2%) and manufacturing sector (+4.1%) further contribute to the dynamism of the economy. The manufacturing sector should benefit of the stability of the mining sector, the continuation of investments in social and economic infrastructure, the good performance of the energy subsector, contributing to the strengthening of manufacturing recovery. As for the services sector, it should benefit from the positive environment in telecommunications, and financial services, and to a lesser extent from non-market services arising from transfers from the public sector. In a 108 more optimistic scenario, cereal production could rebound by 8% (6% in the baseline scenario), which would boost growth to 5.9 percent. The growth of credit to the private sector remains weak at 9.2%, below the rates of increases of between 20 percent and 25 percent in recent years before the political transition. Net foreign assets, on the other hand, should rise by 15 percent leading to an increase in money supply grew by 13.3 percent in 2016 relative to 2015. The annual inflation rate should remain moderate at 0.7 percent by end-2016. This moderation would be explained by the drop for food and non-alcoholic beverages expected following good harvest prospects and the drop in transport prices. This is also explained by the drop in oil prices over the year. In the area of public finances, a second supplementary budget law (loi de finance rectificative) was voted by the National Assembly on 21st July 2016. This law takes into account on the one hand, new financing needs that arose after the supplementary budget law, and on the other hand prospects of additional resources. The first supplementary budget law allowed to take into account first, the new government structure after the Presidential and legislative elections of 29 November 2015, and second the incidence of government measures relative to supporting the relaunch of economic activity, and to social peace. In accordance with the objectives, total revenues (excluding grants) should rise to 18.3 percent of GDP, nearly back to levels experienced before the fall of 2014 and 2015. The return to a calm political climate helps foster a more productive revenue collection. The same applies for tax reforms and other capacity- building measures undertaken during the year, including the broadening of the tax base undertaken since the end of 2015, the intensification control and collection, the adoption of a strategy of communication and awareness of taxpayers toward fiscal citizenship, the pursuit of segmentation that allows a good management of tax brackets and their contributions; activation of field 44 in ASYCUDAWORLD for the compulsory entry of COTECNA verification certificate references; control of warehouses and final destinations of goods; implementation of the SYLVIE (Système de liaison virtuelle pour les opérations d’importation et d’exportation) project; satellite monitoring of goods in transit; the monitoring of tax and customs arrangements of public contracts financed from own resources; the setting up and running of a new scanner at Ouaga-route; and the intensification of efforts to combat fraud. Non-fiscal revenues also benefited from exceptional dividends from SONABHY, amounting to about 0.5 percent of GDP. Current expenditure would increase from 14.6 percent to 14.9 of GDP (relative to the first amendment to the Finance law), mainly due to an increase in the wage bill which would grow to 7.4 percent of GDP in 2016 (compared to 7.2% in the first amendment to the finance law and 6% of GDP in 2013). This increase mainly results from the impact of law 081 on the status of civil servants. This law unifies the status of civil servants and as a consequence the government harmonized remunerations by aligning civil servants and contractors terms. The law enables civil servants and contractors to fit within new categories of grade and job type. With respect to the 2016 budget, the financial impact of the law 081 is 25.89 billion FCFA. Investment spending would increase from 7.6 to 9.5% of GDP following the incorporation of new projects such as the Sahel growth pole; the support to financing adapted to family farming project, the operationalization of the standardized invoice, the BID_UEMOA project, and the ecosystem-based adaptation project. The overall budget deficit (cash basis) should reach 2.5% of GDP, a modest decrease relative to 2015. The deficit will be financed by net external financing amounting 129.4 billion FCFA, and by domestic financing (excluding amortization) including the issuance of 165 billion FCFA in bonds and 303.5 billion FCFA in treasury bills. Monitoring of budget execution to end September 2016 shows excellent performance of domestic revenue mobilization, reaching 98 percent of projections, including the exceptional dividend payments already 109 received. Current expenditures are in line with projections, but investment spending remains below projections at 77% of the objectives for the end of September and 50% of the annual budget. The acceleration of the implementation of public investment projects by the end of the year should be facilitated by the lessening of conditions of implementation of projects and programs, and of development activities that was voted by the National Assembly in July 2016. These measures focus on: (i) the increase of the thresholds for public procurement; (ii) the reduction of tendering periods for public procurement, delegations of public service and public-private partnerships; (iii) the reduction of time for contract approvals; (iv) the removal of the double-review for contracts financed from external resources; and (v) the relaxation of the conditions of approval for commissions reviewing bids, delegation of public services and public-private partnerships. The Government debt policy is intended to maintain a "moderate risk" in terms of debt sustainability according to various indicators (including the ratios of public debt to GDP, tax revenue and exports), as well as various risk scenarios. Our PNDES portfolio includes structuring investments in the sectors of energy, road and irrigation infrastructure and telecommunications. The funding strategy will continue to focus on grants and concessional financing, the use of the regional financial market with gradually extending maturities. Actions aimed at developing PPPs will be cautiously pursued in order to avoid the accumulation of risks and contingent liabilities to the State. The use of non-concessionnal financing is envisaged but at terms more favorable than market conditions, such as Islamic finance. For 2016, the total amount of concessional and non-concessionnal loans signed and to be signed will amount to 217.9 billion FCFA, of which 68.8 billion FCFA in non-concessionnal loans and 149.16 billion in concessional loans. Economic and financial outlook for 2017 and medium-term objectives In 2017, growth is expected to continue to strengthen to between 6 and 7 percent according to preliminary estimates from the IMF who will conduct the 6th review under the extended credit facility from 18 to 31 October 2016. The main factors contributing to this good performance would be mining activities, with the commissioning of two new gold mines, bringing to ten (10) the number of industrial mines in operation, as well as the implementation over an entire year of the public investment program in energy, roads, irrigation facilities, telecommunications infrastructure, etc. The Government’s debt policy is aimed at maintaining characteristic debt ratios (public debt relative to GDP, tax revenue, and exports) within “moderate� risk boundaries. Our project portfolio for 2016 -2018 includes priority investments in the energy, telecommunications, water, agriculture, and road infrastructure sectors. In the medium term, growth could maintain at around 7% under the stimulus of the implementation of the PNDES, including the progressive improvement of energy supply. The strengthening of economic activity would be shaped by the development of all the sectors that should benefit from the planned investments. Thus, the manufacturing and mining sector should experience of growth in value added because of the expansion of mining activities in connection with gold production growing to at least 41 tons of gold in 2017, and that should surpass 46 tons after 2018, and the start of operations of the manganese mine from 2020 onward. In addition to the intensification of investments -- including in energy infrastructure, gradually improving the energy supply to the benefit of manufacturing, and in transport infrastructure --, the recovery of the construction and public works industry would be expected. The consolidation of interventions in the agro-forest-pastoral sector through the pursuit of the operationalization of growth poles (Bagré, Sourou Samendenni, and Sahel) and the strength services activities would contribute to the strengthening of economic activity over the period. Inflation should remain moderate (depending on the evolution of import prices) and below the 3% criterion of UEMOA, while credit to the private sector should pick up pace. In order to support the private sector to play its full role of engine for growth in the context of operationalization of the PNDES, the Government intends among others things to continue its policy of clearance of domestic debt, strengthen measures to improve the business climate and securing investments, and speed up the 110 implementation of reforms initiated in 2016 to improve speed and efficiency in the execution of public expenditure. PNDES foresees an even more optimistic scenario, in which growth would reach 8.4% in 2017 and 8.2% on average in 2018-2020. This scenario is based on the assumption of significant level of public investment to support the structural transformation of the economy. Accordingly, the acceleration of economic growth would stem from the firming up of the economic activity in services, the progressive improvement of the industrial fabric including manufactures, the expansion of mining activity and the increase in productivity in agriculture, forestry and fishing. However, these positive scenarios face a number of non-negligible risks, external and internal, which may impact negatively on growth. External risks include a possible deterioration in the regional security situation, a decline in the price of gold and cotton, an increase in the price of oil, a bad rainfall resulting in a decline in agricultural production, a prolonged recession in Europe, or less favorable conditions in the regional financial market. Regarding internal risks, these include a deterioration in the social climate resulting in an increase in the salary mass and social transfers at the expense of investment, as well as the persistence of bottlenecks in implementation capacity and/or in absorptive capacity that could slow down the implementation of the budget. In addition, the potential financial risk in connection with the weak mobilization of both internal and external resources for the financing of the PNDES as well as low ownership of the actors involved in the process of national development. However, to minimize those risks, mitigation measures have been identified: - improve intelligence, and security systems and strengthen cooperation in the military and security areas; - promote a peaceful political environment and fair justice; - continue actions to enhance the mobilization of internal resources and control certain categories of expenditure; - diversify the export base with a focus on the transformation of local basic products; - establish an institutional framework for the piloting and monitoring of the PNDES. As transportation in general, and road transport in particular, are instruments that facilitate trade, Burkina Faso would like to undertake a series of reforms to create optimal conditions to enable it to fully achieve its economic development and subregional integration objectives. In a landlocked country such as Burkina Faso, the transport sector plays an essential role in reducing isolation, both within the country and vis-à-vis the outside world. The vitality of Burkina Faso’s foreign trade is largely dependent on the optimal operation of its transport system. For its international transport, Burkina Faso has benefited from the entry into operation of several transit ports, enabling it to take advantage of competition between various access corridors. International road transport flows (imports and exports) follow four main corridors to and from the two largest cities of Bobo-Dioulasso and Ouagadougou: the Togo, Benin, Ghana and Côte d’Ivoire corridors. The Abidjan-Ouagadougou corridor, which is served by both rail and road, is the most important access corridor for Burkina Faso to increase the competitiveness of its economy. The ports of San-Pedro and particularly Abidjan can be considered natural transit ports for Burkina Faso owing to this dual connection and their capacities. Unfortunately, the transport sector in general and the Burkina Faso-Côte d’Ivoire corridor in particular suffer from dysfunctions and other distortions that hinder trade between the two countries and Burkina Faso’s foreign trade in general. a.2 - Development context in Côte d’Ivoire 111 Côte d’Ivoire has made noteworthy progress, which has placed it on a path to strong, sustainable, and inclusive growth. The implementation of the National Development Plan (PND 2012-2015) facilitated the execution of major works in the areas of transport, communications, drinking water supply, education, health, and energy. With an estimated average GDP growth rate of 9 percent over the 2012-2015 period, Côte d’Ivoire is ranked among the countries with the highest growth rates in the world. These sound economic results boosted per capita GDP by 27.3 percent in three years. This performance is primarily due to a sharp uptick in investments (from 9 percent of GDP in 2011 to 19.9 percent of GDP in 2015), of which 13.1 percent of GDP was for private investments linked in particular to an improved business climate. As a results of its efforts, Côte d’Ivoire moved up 35 places in the Doing Business ranking between 2012 and 2015 and was among the top ten leading reforming countries in 2013 and 2014. These actions helped significantly increase the number of businesses created, from 2,775 in 2013 to 9,534 in 2015. Moreover, roughly 150,000 jobs have been created in the modern sector since 2012, and foreign direct investment grew by 18 percent on average over this period. The Government intends to remain in the group of leading reforming countries in the world, so that it will be able, in the years ahead, to join the ranks of the top 50 countries in the World Bank’s Doing Business report. Inflation, which stood at 1.2 percent in 2015, has remained moderate since 2012 (average annual rate of 1.4 percent), in line with the WAEMU community standard. These results stem from government actions undertaken to implement the National Agriculture Investment Program (PNIA) and enforce the community directive on road traffic flows. In the area of public finances, the budget deficit dropped from 4.1 percent of GDP in 2011 to 2.9 percent in 2015, a reflection of improved tax revenue collection and streamlined spending, which helped create fiscal space to boost investment and “pro-poor� expenditures. Pro-poor expenditures increased from 7 percent of GDP in 2011 to 9.3 percent of GDP in 2015. The public investment rate stood at 6.6 percent of GDP in 2015, compared to 2.4 percent in 2011. As a result of improved terms of trade and increased exports, the external current account balance improved from a deficit of 1.2 percent of GDP in 2012 to a deficit of 0.5 percent of GDP in 2015. The combined effect of strong foreign trade and increased foreign direct investment led to the improved total balance during the 2012-2015. These remarkable results paved the way for the successful conclusion in 2015 of the Economic and Financial Program (EFP) in Côte d’Ivoire. Furthermore, Côte d’Ivoire completed its Article IV consultation in March 2016, receiving full marks from the IMF, which described its economic performance as impressive. Moreover, Côte d’Ivoire is about to reach an agreement with the IMF on a 3-year 337 billion program to support its PND 2016-2020. With respect to debt, Côte d’Ivoire’s debt management framework has improved markedly. A Medium-Term Debt Management Strategy (MTDS) and a Debt Sustainability Analysis (DSA) were used to manage and oversee public financial sustainability. In addition, Côte d’Ivoire’s good sovereign rating enabled the country to raise funds in the international capital markets at the lowest interest rates in Africa. The diversification of debt instruments has also contributed to the improved debt profile. In 2015 and 2016, Côte d’Ivoire raised CFAF 300 billion through the issuance of Islamic bonds (SUKUKs). Legislation was also introduced to reorganize the Public Debt Directorate. The new organization chart is now operationa; and restructures the front, middle and back offices, which will promote better debt management operations. In addition, a database on public enterprise debt was developed and information is now being collected. 112 The development strategy for the financial sector is currently being implemented. The options selected for the reorganization of the public banking portfolio are already known and the decisions have been made. Moreover, a draft law on the development of leasing was adopted and submitted to the National Assembly to increase access to financing for SMEs and households. A forum to promote lease financing is planned to advocate its use among stakeholders (e.g., banks, companies, and households). The pace of execution of the program is also being stepped up in the area of financial inclusion, in particular with the assistance of the World Bank through the FIRST initiative. Overall, the rate of access to banking services rose from 12.7 percent in 2012 to over 16.3 percent in 2015. The use of mobile money contributed significantly to increased access by the populations to financial services. In 2015, this access rate exceeded 71.4 percent compared to 43.9 percent in 2012. The decisions made in a bid to lower the costs of financial transactions should also help increase access to financial services. Economic and financial outlook for 2016 and medium-term objectives The Government will continue its efforts to ensure that Côte d’Ivoire achieves emerging country status by 2020. Based on an in-depth analysis of the implementation of the National Development Plan 2012-2015, the Government has prepared and adopted the National Development Plan 2016-2020, the general objective of which is to transform Côte d’Ivoire into an emerging economy. Achievement of this objective will require a dynamic, development-focused economy that is liberal and open to the outside world, which will bring about a significant reduction in poverty and a concomitant growth of the middle class. This will also be a Côte d’Ivoire that successfully integrates into the global economy and cooperates with its neighbors to strengthen regional integration. The macroeconomic framework will remain sound and sustainable, with robust growth being driven by key investments in growth sectors and ongoing far-reaching structural reforms. GDP is expected to grow at a rate of 9.3 percent in 2016, 8.9 percent in 2017, 8.8 percent in 2018, 8.3 percent in 2019, and 8 percent in 2020. To achieve these growth targets, the 2016-2020 PND provides for total investment amounting to CFAF 30,000 billion, of which 62 percent is for the private sector, including public-private partnerships. The investment rate is therefore projected to increase from 18.7 percent of GDP in 2015 to 23.1 percent in 2020. Inflation is also expected to be contained at an average of 1.8 percent per over the period, which is below the community standard of 3 percent. The Government will continue to strengthen good governance and step up efforts to combat corruption by scaling up the activities of the High Authority for Good Governance. Efforts to improve public debt management in accordance with international standards and the WAEMU community standard will continue. Ongoing updating and the implementation of the Medium-Term Debt Management Strategy (MTDS), supported by the Debt Sustainability Analysis (DSA) will also continue. This is the foreign and domestic public debt operating plan that seeks to meet the State’s financing needs at moderate risk. The most recent Debt Sustainability Analyses (DSA) conducted by the IMF team and by national experts on the National Public Debt Committee (CNDP) both concluded that the risk of debt distress is moderate during the analysis period (2016-2034). Moreover, notwithstanding the flows of foreign capital to Côte d’Ivoire in the context of the financing of the ambitious public investment program included in the 2016-2020 PND, this moderate risk level is supported by the new borrowing and public debt management policy directions established by the Government. In this regard, the Government will adopt a national debt policy that is in line with its development program. The 113 Government also intends to strengthen its good reputation and the favorable opinion that investors have of the country. It therefore intends to meet all debt deadlines on time and further improve its rating from international rating agencies. The Government plans to promote job creation. To that end, a ministerial department focusing on the promotion of youth, youth employment, and civic service was established. Youth employment initiatives are also the responsibility of the Youth Employment Agency, which is the one-stop shop for employment in Côte d’Ivoire. Efforts will continue in the areas of education and training. The Government will reduce inequalities between social classes and improve the components of the human development indicator. Planned pro-poor expenditures in 2016 amount to CFAF 1,998.5 billion, compared to CFAF 1,770.2 billion in 2015, CFAF 1,622.4 billion in 2014, CFAF 1,337.13 billion in 2013, CFAF 1,080.3 billion in 2012, and CFAF 840.15 billion in 2011. The transport sector lies at the heart of Côte d’Ivoire’s economic development policies and has thus contributed significantly, despite difficulties encountered, to economic growth over the past 30 years. With a relatively reliable transport system and reasonably competitive costs, national and international trade has risen sharply to the benefit of the national economy and the economies of the countries in the subregion. The strategy for the development of the transport sector is always an important component of the country’s general and economic recovery policies and is intended to contribute significantly to the achievement of the socioeconomic objectives defined as part of the effort to reduce poverty. In particular, the Government of Côte d’Ivoire has constantly focused on the freedom of movement of persons and goods on the various corridors so as to remove the obstacles to trade facilitation. However, owing to the successive crises in Côte d’Ivoire over the past decade or more, dysfunctions do persist and hinder the efficient development of trade on the corridors, particularly the one linking Abidjan to Ouagadougou. As part of Côte d’Ivoire’s reconstruction, the government authorities intend to restore the transport sector’s past luster by giving priority to its modernization in order to support socioeconomic development and realize the ambition of achieving emerging market status. To this end, the Ministry of Transport will work to complete various projects and take measures to significantly reduce all of the obstacles to the movement of goods and people through the modernization of the system, while increasing the sector’s contribution to the expansion of the national economy. These actions particularly target the road, port, and rail subsectors. b. Relations between Burkina Faso and Côte d’Ivoire b.1 - Social, economic and trade relations Côte d’Ivoire and Burkina Faso have enjoyed strong relations for several decades. Their relations date back to the period prior to independence and were solidified from 1960 onward under the auspices of the leaders of the two countries. As a result, many Burkinabè nationals live in Côte d’Ivoire and participate in its development. They are active in various areas, particularly trade, agriculture and transport. Estimated at about 3 million, these migrants each year send tens of billions of CFA francs to their home country, according to the Central Bank of West African States (BCEAO). Since November 2007, as nationals of the Economic Community of West African States (ECOWAS), they no longer require a residence permit. 114 Looking at the socioeconomic situation, an electricity interconnection between the two countries does exist, enabling Côte d’Ivoire to provide electricity to Burkina Faso. As part of the cross-border cooperation initiated by the WAEMU and ECOWAS, the two countries and Mali are benefiting from pilot projects. Cross-border cooperation allows for the development of economic, social and cultural activities at the countries’ borders. Pilot projects are being carried out in the three countries owing to the intensity of the activities along their common borders. The most tangible sign of the strength of the relations between Côte d’Ivoire and Burkina Faso was the signing of the Friendship and Cooperation Treaty on July 29, 2008 in Ouagadougou. This historic treaty clearly signaled the creation of a framework for permanent dialogue between the two countries aimed at establishing a dynamic partnership for stability and prosperity. Establishing cooperation in a number of areas of activity, the treaty stipulates that the two countries should aim to achieve a convergence of views on a wide range of issues whenever possible. As a reminder, the Fifth High-Level Summit of the Friendship and Cooperation Treaty (TAC 5) between Côte d’Ivoire and Burkina Faso was held recently from 25 to 29 July, 2016, in Yamoussoukro. Burkina Faso is Côte d’Ivoire’s main trading partner in the subregion. Burkinabè exports to Côte d’Ivoire are today dominated by tobacco, live animals, cotton fiber and beverages. They increased from CFAF 0.46 billion in 2005 to CFAF 3.97 billion in 2015. Imports also rose, from CFAF 121.9 billion in 2005 to CFAF 222.7 billion in 2015. Oil products are the main import (CFAF 41 billion, 18 percent of total importations), followed by tobacco (CFAF 29 billion, 13 percent of total importations), and plastic products (CFAF 21 billion, 9 percent of total importations). b.2 - Economic importance of the Abidjan-Ouagadougou corridor Given the intense economic relations between the two countries, the Abidjan-Ouagadougou corridor is one of the most active corridors in the ECOWAS region. The Autonomous Port of Abidjan is the main transit port for Burkina Faso, for both exports and imports. The extension of the Northern Highway to Yamoussoukro facilitates the movement of freight vehicles to and from Burkina Faso. The effort to combat road harassment on the corridor has allowed the return of certain Burkinabè operators who had turned away from Côte d’Ivoire. There is also rail link between Burkina Faso and Côte d’Ivoire that offers another option for trade between the two countries. With a view to maintaining and increasing trade relations between the two countries, Côte d’Ivoire is planning to construct a dry port in Ferkessédougou Department in the north of the country. This port should offer Burkina Faso, Mali, and Niger a nearby logistical platform that will facilitate their trade with the coastal countries and reduce transit and transport costs. It is also planning to construct an import-export terminal, a regional slaughterhouse and cattle market, and a hydrocarbons depot. The WAEMU, meanwhile, has begun the construction of adjacent border posts at the border between Côte d’Ivoire and Burkina Faso in Laléraba, in order to facilitate transit, the movement of persons and trade flows. The extension of the highway from Yamoussoukro to Ouagadougou is planned in the context of the Friendship and Cooperation Treaty. Feasibility studies are well under way in each country. For reasons of efficiency, Burkina Faso and Côte d’Ivoire have agreed to consider this section of the highway as a single project and to adopt a common approach in the completion of the technical studies and the search for financing. The modernization and rehabilitation of the Abidjan-Ouagadougou railroad and its extension through to Tambao is also planned. It is in this context that these two projects have been programed in the PER II of WAEMU. They were presented at the Dubai Conference in 2014 and are each the object of a Memorandum of Understanding. 115 Priority areas have been identified in the context of the aforementioned Friendship and Cooperation Treaty of July 29, 2008 between Burkina Faso and Côte d’Ivoire, and consultations are regularly conducted between the two parties on traffic flows and the development of the transport industry, the freedom of movement of persons and goods, the harmonization of technical and administrative standards, measures to reform the institutional framework for the management of inter-governmental liaison, the liberalization of the freight market and the strengthening of efforts to combat non-standard practices. In coordination with the regional integration organizations and donors, the establishment of a joint committee to manage the Abidjan- Ouagadougou corridor and accelerate the process for the construction of adjacent border posts in Laléraba is also advocated. 116 b.3 - Respective roles of the two countries in WAEMU Burkina Faso and Côte d’Ivoire are members of two subregional economic integration groupings, ECOWAS and WAEMU. The treaties establishing these two organizations constitute the regulatory framework for the freedom of movement of persons and goods in the two areas concerned. The largest member of WAEMU with 35.1 percent of GDP in 2015, Côte d’Ivoire is an essential partner within this subregional organization. Burkina Faso and Côte d’Ivoire play important roles in the subregion. Indeed, the community has designated the heads of State of Burkina Faso and Côte d'Ivoire respectively for the monitoring of the application of rules on free movement of persons and goods in the regional space and the search for financing means. To this end it organized a roundtable in Abidjan on July 2 and 3, 2012, which collected financing pledges totaling close to CFAF 2,035 billion (or 35 percent of the total cost). This program calls for the rehabilitation, modernization and construction of community transport infrastructure. From a policy and diplomacy standpoint, these two countries have worked together to restore peace and security in Mali and Guinea-Bissau. c. Strengths and weaknesses of the land transport sectoral policy in Burkina Faso and Côte d’Ivoire General transport policy in the two countries In Burkina Faso The transport sector in Burkina Faso, particularly road transport, is characterized by the following strengths and weaknesses:  Weaknesses The weaknesses of the land transport sectoral policy include: - lack of adjustment of the laws organizing activity in the road transport subsector to socioeconomic developments; - insufficient distinctions between activities in the subsector, which hinder the development of certain professions (charterers, leasing agents, customs agents, etc.); - insufficient consideration of the growing security requirements; - insufficient clarification of the roles of the central government and local governments in a decentralization context; - lack of harmonization between community laws and the various bilateral conventions organizing interstate transit and transport; and - overlapping of bilateral conventions governing the sector. The sector is also characterized by: - a road network that does not meet the country’s requirements; - the need for a greater focus on road maintenance; - widespread vehicle overloading, resulting in damage to roads; - highly fragmented transport services and a low degree of professionalization; - an aging freight transport vehicle fleet with an average vehicle age of 20 years; - congestion in the ports in the subregion, leading to a loss of time and capital costs borne by the transport operator, shipper and final consumer; - the increased role of “informal� transport middlemen known as “coxers� in the transport chain, which increases transport costs, particularly at Port Tema; - delays in the customs clearance procedures and substantial unlawful charges; and 117 - rail transport capacity constraints, which must be overcome. These factors have a negative impact on the country’s development efforts, and this situation has led the Government to adopt the updated strategy for the transport sector for the period 2011-2025.  Strengths To improve the operational efficiency of the sector, the Government of Burkina Faso in 2011 adopted the Letter of Declaration on General Transport Policy, presenting its strategy and a plan of action for implementation during the period 2011-2025. The updated strategy for the transport sector reflects the Government’s vision of establishing a transport policy that will make its investment in the sector profitable and maximize the sector’s contribution to the growth and competitiveness of the economy. For the Abidjan-Ouagadougou corridor, the strategy aims to allow the sector to adapt to the new institutional environment and create the conditions for harmonious planning of actions in the sector based on the following key principles: - establishment of an institutional and regulatory system that ensures the alignment and consistency of the functions of the various participants in the system, their implementation capacities and their available human and financial resources; - development and enhancement of the road network; - improvement of transit conditions on the corridor; - strengthening of the competitiveness of transport services; - consolidation of regional integration; - strengthening and improvement of the management of transit infrastructure; - easing of administrative and customs procedures for international trade transport operations; and - the development of containerization. In Côte d’Ivoire  Weaknesses The assessment of the road transport sector identified weaknesses that hamper the seamless provision of services, namely: - lack of adjustment of the regulations to actual conditions in the sector; - insufficient supply of urban transportation services; - lack of reliable statistics; - widespread racketeering and corruption; - high level of road harassment and obstacles to traffic flow; - cumbersome administrative procedures for the issuance of transport documents, resulting in additional costs and incidental expenses; - management of freight, leading to a loss of customs and tax revenue for the Government; and - a high number of road accidents.  Strengths The Ministry does have strengths that will enable it to respond to the various concerns expressed in the assessment of the weaknesses in the sector, i.e.: - a reformed institutional, legal and organizational framework; - qualified human resources; - a single contact person; 118 - existence of a 550 km lagoon system; - a road network; - room for the construction of transport infrastructure; and - growing trade with countries in the hinterland. The mission assigned to the Ministry of Transport aims to meet the needs of users under optimal conditions, facilitate the movement of persons and goods, develop international transit, protect the interests of users through free competition between transport companies [and] the establishment of official rates, and contribute to poverty reduction and the implementation of the national economic development policy. In this regard, significant reforms have been undertaken by the Ministry of Transport, in the areas of: - conditions for access to the profession of road transport operator; - conditions for access to freight transport; - issuance of the Single Transport Document, which now replaces the consignment documents; - tracking of vehicle overloading; and - the facilitation of customs and transit procedures. In the long term, the implementation of these major reforms will enable the Ministry of Transport to modernize the sector through both the professionalization of the participants and the development of a regulatory framework ensuring free competition between companies in the sector. This reform of the transport sector will be built on a modern infrastructure resulting from large-scale projects in the road and rail subsectors, specifically: In the road sector: - the Abidjan-Lagos highway project; - the Yamoussoukro-Ouagadougou highway project; and - the B.O.T. construction project - the Abidjan Interurban Transit Center [Gare Routière Interurbaine d’Abidjan], the largest in West Africa. In the rail sector: - the commuter train, “Métro d’Abidjan Ligne I,� initially linking Anyama to Felix Houphouet-Boigny Airport and, in a second phase, Youpougon to Bingerville, for Ligne II; and - the Ouangolo-Niélé-Sikasso-Bougouni railroad (338 km). Completion of the actions identified will enable the road transport sector to achieve the objective assigned to it, namely to improve the movement of persons and goods in Côte d’Ivoire. Added to this objective are other related outcomes: job creation, improvement of the social welfare of the people and poverty reduction. All of these factors will help make Côte d’Ivoire a dynamic participant on the regional and even global scene so that by 2020 our country will achieve emerging economy status. For this reason, the Ministry of Transport is determined to implement and monitor all of the programs and projects presented below. d. Cooperation between Burkina Faso and Côte d’Ivoire for the modernization of transport on the corridor The Abidjan-Ouagadougou road corridor is an important part of the subregional community infrastructure strategy. This strategy aims to provide the subregion with a dense and effective road, rail and airport network 119 linking all member States of the Union. To this end, the construction of the Yamoussoukro-Ouagadougou highway, which will be 1,045 km long and will cost the two countries close to CFAF 2,600 billion (US$5.2 billion), will improve road traffic on this corridor and revitalize the activities of the Port of Abidjan. To improve road and rail transport flows between Abidjan and Ouagadougou, an observatory was established that records the quantities of merchandise and the dwell times for that merchandise in the Autonomous Port of Abidjan, on the Abidjan-Ouagadougou corridor and at the Laléraba border post. Moreover, at the initiative of WAEMU, the process for the construction of an adjacent border post to facilitate the crossing of the border between the two countries is under way. More than CFAF 12 billion will be committed to this project, including CFAF 8 billion for the post and CFAF 4.2 billion for the construction of socioeconomic infrastructure (schools, housing for teachers, connection to the national electricity network, dispensaries and parking and rest areas for drivers). In the context of the Friendship and Cooperation Treaty signed on July 29, 2008 between Burkina Faso and Côte d’Ivoire, one section of which is dedicated to transportation, priority focuses have been identified and there is an ongoing dialogue between the two parties on traffic flows and the transport industry, the free movement of goods and persons, the harmonization of technical and administrative standards, the measures to reform the institutional framework for the management of inter-state liaison, the liberalization of the freight market and the strengthening of efforts to combat non-standard practices. In coordination with the regional integration organizations and donors, the establishment of a joint committee to manage the Abidjan-Ouagadougou corridor and accelerate the process for the construction of adjacent border posts in Laléraba is also advocated. V. STATUS OF THE TRANSPORT SECTOR AND OPERATION OF THE ABIDJAN-OUAGADOUGOU CORRIDOR a. General presentation of the road transport sector In Burkina Faso In a landlocked country such as Burkina Faso, the transport sector plays an essential role in reducing isolation, both within the country and vis-à-vis the outside world. The Burkinabè economy is highly dependent on imports and thus on the efficient operation of the international transport system for its supply of numerous strategic products (especially hydrocarbons) and consumer and capital goods (construction materials, agricultural inputs). The efficient operation of the international transport system is imperative to enable Burkinabè exports, particularly cotton fiber, the country’s main export, to be competitive on the international market. Domestic transport is especially important as activities are spread out over a wide geographic area. The competitiveness of the Burkinabè economy is largely dependent on the efficient operation of the transport system. To improve the operational efficiency of the sector, the Government of Burkina Faso in 2011 adopted the Letter of Declaration of General Transport Policy, presenting its strategy and a plan of action to be implemented in the context of the updated strategy for the transport sector for the period 2011-2025, the preparation of which focused on the outcomes of the previous strategies and the country’s new economic and social development needs. The current situation, by subsector and crosscutting theme, can be summarized as follows:  Rural, interurban and international road transport This subsector is characterized by: 120 - a developing road network that is not yet able to meet the country’s needs; - domestic and foreign isolation, which is a drag on the competitiveness of the Burkinabè economy; - a need for better road maintenance and a serious problem of vehicle overloading leading to road damage; - highly fragmented transport services characterized by a low degree of professionalization.  Rail transport This subsector is characterized by: - transport capacity constraints that must be removed; - a successful experience with freight transport concessions but a continued decline in passenger traffic; - a vertically structured railway and the need for further consolidation of trade with countries in the subregion; - support for certain regions that requires further promotion; - the lack of a training mechanism in the subsector and the need to further increase the capacities of the Burkina Faso Rail Assets Management Company (SOPAFER-B).  Financing and taxation of the sector The strengths in the financing and taxation of the sector include: - experience with the mobilization of external funding; - initiation of the reforms needed to liberalize the transport sector and privatize production operations; and - coverage, albeit limited, of road infrastructure costs.  Management of environmental and social aspects In the area of environmental and social management, the sector is characterized by: - an institutional and regulatory structure in the area of the environment; - the existence of a national rural transport strategy (SNTR) that is gender-sensitive and is incorporated into the transport strategy document for the 2011-2025 period. Institutional and legal aspects From an institutional standpoint, the sector is characterized by: - instability in the structuring and organization of frontline participants (ministerial departments responsible for transportation and infrastructure); - a multitude of national stakeholders involved in the development of regulations and infrastructure, creating jurisdictional and regulatory conflicts; - an unstable financing mechanism for some infrastructure, such as the Burkina Faso Road Maintenance Fund (FER-B) and the National Road Safety Authority (ONASER); and - underperforming staff in the transport and infrastructure departments.  Monitoring and evaluation In the area of monitoring and evaluation, the sector is characterized by: - the existence of a common monitoring and evaluation mechanism: the Monitoring and Evaluation Information System (MEIS) ; - experience with monitoring and evaluation based on three projects: the Sectoral Transport Project (PST), the West and Central Africa Air Transport Security and Safety Project (PSSTAAOC) and the West Africa Regional Road Transport and Transit Facilitation Project (PRFTTAO); - disparities in the information system between the subsectors owing essentially to insufficient training of the managers concerned. 121 In Côte d’Ivoire In Côte d’Ivoire, the transport sector has consistently faced serious development difficulties. The situation was exacerbated by the most recent sociopolitical crises, creating a number of dysfunctions:  In the area of road transport - road transport that is developing in the informal sector; - unreliable statistics that are difficult to obtain; - high levels of racketeering and corruption; - freight management leading to significant lost income for the Government and carriers; - an aging vehicle fleet; - poor condition of the roads.  In the area of air transport - loss of traffic to certified airports in countries in the subregion; - inoperability of airports in the interior of the country.  In the area of sea transport - stagnation of the handling capacities of Ivoirian ports, which affects their competitiveness; - loss of sea traffic; - suspension of the implementation of the Project for the Integrated Development of the Côte d’Ivoire Inland Waterway System; - saturation of the port land in Abidjan; - insufficient supply of lagoon transport services; and - the lack of private Ivoirian shipping companies or vessels registered in Côte d’Ivoire. b. Challenges and constraints along the Abidjan-Ouagadougou transit corridor b.1 – Organization of the sector and market for the road transport of goods along the corridor In Burkina Faso and Côte d’Ivoire, the activities of stakeholders are stymied by organizational inertia, which compromises their contractual freedom and hinders efforts to improve the efficiency of road transport Companies. It also undermines measures to modernize the vehicle fleet and upgrade human resources through the training of drivers and managers. The conditions of road transport are adversely affected by the way in which the profession is currently organized. The most commonly aired grievances are that the regulations governing the profession of transport operator are not in step with an international context in which the road transport industry is developing. All the sector studies carried out point to the fact that conditions for joining and exercising the profession are somewhat too liberal. This distorts the rules of competition, depresses prices, and harms the reputation of the profession. The profession is often seen as a “fallback option� for those who have not succeeded in other areas of activity and is deemed a “risky� business by insurers and banks. This makes it difficult for operators to access financing. In view of the poor performance of road sector transport actors owing to the fragmented nature of transport services and the weaknesses and deficiencies of the regulatory framework and of the need to define a new legal basis for the transport system, Burkina Faso and Côte d’Ivoire have opted to professionalize the position 122 of road transport operator by redefining the conditions and criteria for access to the profession and differentiating between “public transport� and “private transport.� In Burkina Faso, land and maritime activities are organized by the General Directorate of Land and Maritime Transport of the Ministry of Transport. The mandate of the Directorate is to regulate, plan and monitor the implementation of the policy of the Department of Land and Maritime Transport. It organizes the activities of the land transport sector in conjunction with other competent national agencies, such as the National Road Safety Office (ONASER), which has the exclusive right to supervise the national sections of the Inter-State highway. It also supervises the Burkinabè Shippers Council (CBC) to ensure the speed and safety of transport operations by providing assistance to shippers and coordinating the transport chain. In addition to the aforementioned structures, mention should also be made of the role of the National Transport Facilitation Committee in implementing measures to streamline and harmonize administrative and transit procedures (customs, taxes and fees, external trade, quality control services…). In addition to these structures, there is the private sector, which is made up mainly of the Burkina Chamber of Commerce and Industry (CCI-B) and transport operator and driver organizations. In Côte d’Ivoire, the Ministry of Transport is also responsible for organizing the road transport sector, through its various structures. These are the General Directorate of Land, Transport and Traffic (DGTTC), which is responsible for regulating the sector, managing permits to stakeholders and actors in the system (transport operators, drivers, vehicles, etc.); the Road Safety Office (OSER), which ensures compliance with road traffic rules in order to guarantee the safety of road users; the Observatory for the Free Flow of Transport [Observatoire de la Fluidité des Transports OFT] is responsible for ensuring the smooth flow of traffic on highways and for facilitating trade. Private sector actors (public/private transport and transport operator companies, drivers, etc.) operate under the umbrella of the three structures mentioned above. The Abidjan-Ouagadougou transport corridor is governed by Conventions 82 and 90 of ECOWAS, relating to the Inter-State Road Transit (ISRT) Convention and the Bilateral Road Transport Agreement. b.2 - Regulatory framework for the transport of goods along the corridor The regulatory framework governing the transport of goods along the Abidjan-Ouagadougou transit corridor consists of the provisions of regulations on:  Axle load control This is governed by Regulation No. 14/2005/CM/UEMOA and Additional Act A/SA.17/02/12. Regulation No. 14/2005/CM/UEMOA, of December 16, 2005, relates to the harmonization of standards and procedures for monitoring vehicle dimensions, total weight and axle load of heavy duty vehicles for the transport of goods within the Member States of the Union. It also works to harmonize within the Union the standards and procedures for monitoring compliance with these standards and their system of sanctions for violations of restrictions regarding transport dimensions, total weight and axle load. It further seeks to 123 strengthen and enhance the effectiveness of preventive checks and controls and to rationalize roadside checks. Owing to difficulties involved in implementing these texts, the States adopted a road map on April 23, 2009. The meeting held to assess implementation of the road map concluded that the results had not been in keeping with expectations and the commitments made. Consequently, Member States adopted road maps on March 19, 2010, and June 19 2015, and a new roadmap on September 23, 2016 in Cotonou (Benin). Despite the fact that some States have begun to apply measures to monitor axle load, the tendency to overloading persists. The Ivorian Government intends to implement the new timetable for the full application of Regulation No. 14 (see attached Annex) established on basis of the Declaration for the Meeting of Ministers in charge of infrastructure and transport of WAEMU Member States and Guinea which was held on September 23, 2016 in Cotonou. For the full implementation of Regulation 14, Burkina Faso is resolutely committed to the implementation of the new timetable, established on the basis of the Declaration of the meeting of Ministers in charge of the infrastructure and the Transport of the Member States of WAEMU and Guinea which was held on September 23, 2016 in Cotonou, and adopted by the Council of Minister of November 2, 2016. Additional Act A/SA.17/02/12 relates to the harmonization of standards and procedures for monitoring the dimensions, total weight and axle load of heavy duty vehicles for the transport of goods within ECOWAS Member States. It completes and clarifies the relevant ECOWAS texts, notably Convention A/P2/5/82 of May 29, 1982, which defines, among other aspects, the axle load and dimensions of vehicles.  Road checks Member States encounter difficulties in applying the implementing provisions of the regional plan for reducing the number of road checkpoints. - Decision No. 15/2005/CM/UEMOA on the practical modalities for implementing a Regional Road Check Plan, adopted on December 16, 2005 in Bamako; - Directive No. 08/20005/CM/UEMOA of December 16, 2005, on reducing checkpoints on the Inter- State highways of the West African Economic and Monetary Union (WAEMU). In real terms, this Directive (i) restricts roadside checks on inter-State highways to the point of departure, border posts and points of destination of road vehicles; (ii) provides for the construction, equipping and operation of checkpoints adjacent to the border posts of States.  The creation of a Corridor Management Committee It is recommended that the States and the Commission put in place management structures for the transit corridors, as provided for under Decision No. 39/2008/CM/UEMOA of December 17, 2009, on the creation and management of Road Corridors in the Union. The Abidjan-Ouagadougou corridor management committee, provided for under WAEMU programs and provisions, has still not been established. Measures should be undertaken in coordination with the WAEMU Commission to set up this committee.  The creation of adjacent border posts 124 The construction of adjacent posts at State borders is provided for under Regulation No. 15/2009/CM/UEMOA of December 17, 2009, pertaining to the legal regime governing adjacent border posts between WAEMU Member States. The objectives of the regulation are: (i) to define the operating rules on the platform; (ii) to specify the authorized stakeholders and platform users as well as their powers and responsibilities, the areas over which they have authority, as well as the rules and activities applicable on the platform.  Conditions relating to the implementation of transport activities Road transport activities are regulated by the following legal texts: - The Convention on Inter-State Transport (TIE) Convention No. A/P2/5/82 on the regulation of Inter-State road transport (TIE), which was signed in Cotonou on May 29, 1982, sets forth the conditions under which Inter-State road transport within ECOWAS should take place. The intention is to (i) do away with excessive roadside checks; (ii) guarantee equitable access to cargo arising from the external trade of Contracting States; (iii), harmonize the regulatory provisions of the road and transport code; and (iv) ensure sufficient autonomy in transporting supplies to landlocked countries, using the transport systems of transit countries. - Convention on Inter-State Road Transit of Goods (ISRT) Convention A/P4/5/82 on the Inter-State Road Transit of Goods, adopted in Cotonou on May 29, 1982, was complemented by Supplementary Convention A/SP/1/5/90, adopted on May 30, 1990 in Banjul and establishes a guarantee mechanism for operations under the ISRT Convention. The primary aims of this convention are (i) to avoid successive customs procedures in the various transit countries; and (ii) to facilitate the movement of vehicles and goods transported between Member States.  Bilateral transport and transit agreements Bilateral agreements pertain particularly to traffic conditions and freight allocation. The following texts constitute the legal framework for cooperation in road transport between the two countries: - Cooperation agreement between Burkina Faso and the Republic of Côte d’Ivoire of October 14, 1989 on maritime and transit transport; - Memorandum of Agreement on cooperation in road transport of July 27, 1999, between Burkina Faso and the Republic of Côte d’Ivoire, which established an Ivoirian-Burkinabè Joint Technical Committee for monitoring purposes; - Headquarters agreement between the Government of Burkina Faso and the Government of Côte d’Ivoire, for the benefit of the Office of the Representative in Côte d’Ivoire of the Council of Shippers of Burkina Faso (CBC), signed on November 18, 2011; and - Memorandum of Agreement between the Chamber of Commerce and Industry of Côte d’Ivoire and the Chamber of Commerce and Industry of Burkina Faso, for securing bond notes on Inter-State Road Transit (ISRT), signed on February 5, 2014 in Ouagadougou. b.3 - Efficiency of the Autonomous Port of Abidjan and the Ouagadougou Terminal  Efficiency of the Autonomous Port of Abidjan 125 The Autonomous Port of Abidjan (PAA) is a logistic platform for 90 percent of the trade between Côte- d’Ivoire and the rest of the world. It is a tool for economic integration and a transit point for a portion of the traffic from landlocked countries, such as Burkina Faso, Mali and to a lesser extent, Niger. Whereas Mali and Niger are linked by road to the Port of Abidjan, Burkina Faso also has a railway system, in addition to the highway. This has made the Port of Abidjan a privileged partner for the countries of the hinterland. With a body of water of 1000 ha, 800 ha of industrial zone, 6 km of berthing draught length, 34 warehouses and specialized terminals such as the fruit terminal, the mineral terminal, the fishing port and the RoRo terminal (a generic maritime term used to denote a terminal for wheeled cargo, and which opens from behind), and the container terminal, the Port of Abidjan is the largest port in the region, processing annually more than 21 million tons of traffic, including 1.8 million tons for transit traffic. The container terminal is equipped with six heavy-duty quayside gantry cranes, two mobile harbor cranes and 16 yard cranes. Annually, it processes 650,000 TEU containers—a generic maritime term used to describe the capacity of containers—at an operational rate of thirty movements for each gantry per hour, in accordance with the standard prevailing at major ports across the world. To implement its strategic vision, the General Directorate of the Autonomous Port of Abidjan has moved to undertake several large-scale projects. In the short and medium terms, these will lead to improved docking and handling capacity, through the introduction of new terminals (container, wheeled cargo terminals, fishing, mineral and grain terminals). Apart from its infrastructure development efforts, the Autonomous Port of Abidjan is seeking to retain its various certifications, notably that of the International Ship and Port Facility Security Code (ISPS Code) and its ISO 9001 quality standard certification, 2008 version. The main purpose of these actions is to ensure the satisfaction of clients and partners, including those from the hinterland, who are granted transit passage and port space on favorable terms. However, the right to deliver containers to the city of Abidjan has been exclusively reserved for cargo handlers, a fact that up to now has hampered the competitiveness of the Port of Abidjan. Fortunately, following reflection on the ways in which the transit of containerized merchandise through the port of Abidjan and along the Abidjan-Ouagadougou transit corridor may be improved, the Port Authority has promised to liberalize this activity as soon as possible. Discussions have therefore begun with the partners of the port community, this time with the participation of transport operators, to liberalize the rules governing this activity. The outcome of this discussion was a circular note from the Port Administration. The procedures for implementing the recommendations of the circular note are currently being finalized in conjunction with the port community. The possibility of issuing a decree on liberalizing this activity is an option that should not be excluded. This should give legal status to the measure.  Efficiency of the Ouagadougou Terminal The container terminal at Ouaga-gare, the Ouagadougou railway station: this platform was built in 1999 and is the very first infrastructure project in Burkina Faso specifically dedicated to containerized traffic. It is located in Ouagadougou, at the Ouaga-gare logistic platform and is intended exclusively for the handling of containerized traffic by rail. The Société d’Exploitation du Terminal de Ouagadougou (SETO)—the Ouagadougou terminal company—is responsible for managing the terminal. This terminal has a surface area 126 of 29,942 m² of paved concrete surface and 7,763 m² of unpaved surface. Its handling capacity is 500 full TEUs and 700 empty TEUs, with berthing capacity for 23 wagons. The specialized logistics of this terminal also include one 45 t PPM Superstaker (full TCc), one 45t Hyster (full TC), one 16 t empty container handler, one agricultural tractor, four 20’ and 40’ platforms for trailers and tractors and two delivery trucks. The Boborinter (TRCB/Bobo) Container Road Terminal: this terminal was established at Bobo-Dioulasso and has been in operation since January 2010. It is the second structure of its kind erected by the CCI-BF, with the unique feature of being bi-modal (rail/road). It has a surface area of 28,270 m² with a storage container capacity of 500 full TEUs and 300 empty TEUs and has one 40t-Stevtruck (full TCs) and two 26t-Forklifts (empty TCs). The Ouagarinter Container Terminal (TRCB-Ouaga): this platform was built in April 2010 on the Ouagarinter site and is the latest platform to complement the activities of the SETO terminal in that it is exclusively dedicated to handling road container traffic. With a surface area of 27,000 m², it has a storage capacity of 390 full TEUs and 192 empty TEUs, with one 40t Stevtruck (full TCs) and one 45t PPM (full TCs), one 16t Forklift (empty TCs), one agricultural tractor and one delivery truck. The domestic terminals of Burkina Faso are of fundamental importance along the Abidjan-Ouagadougou corridor. The CCI-BF, as part of its policy for building and managing support infrastructure projects to support the national economy, is the main manager of logistics platforms for the handling of merchandise within Burkina Faso, as well as on its borders. This policy is aimed at achieving the following objectives: - reducing the country’s isolation; - diversifying maritime outlets; - facilitating the transport of goods to and from maritime ports; - securing and strengthening the supply and export system; - promoting exports from Burkina Faso; - ensuring adequate handling of freight; - improving freight handling conditions; - expanding freight handling capacity; and - facilitating the collection of customs and tax revenue. One detail worth mentioning is that the domestic platforms (Ouagarinter, Boborinter, Ouaga-gare) have container terminals that were built by the CCI-BF and its partners, which have been outsourced to be managed by private operators. The constraints existing along the Abidjan-Ouagadougou corridor, as evidenced in the domestic terminals of Burkina Faso, pertain mainly to: - the protracted wait time of road transport vehicles for the completion of formalities for the release of freight. The excessive delays of transport vehicles at this platform are usually attributable to the importer. This situation is further exacerbated by the absence of an actual, physical contract between the importer and the transport operator, and thus the lack of accountability for the long wait times for vehicles. - it is the view of CCI-BF that this factor, which contributes to the inefficiency at the port, could be resolved by formalizing the contractual relationship between the transport operator and the truck owner. The contract should provide for demurrage charges beyond a specific grace period. Apart from the penalties imposed by the vehicle owner, there would be penalties imposed by the manager of the truck parking area, in this case, the CCI-BF. Such dissuasive measures should help to minimize 127 the number of cases where trucks are immobilized. It should also allow for optimal turnaround times. Segmentation of road and rail traffic on distant platforms. Traffic from Abidjan is separated into two categories; road and rail. This fragmentation of the traffic gives rise to inefficiency in the handling of freight. It is clear that the various operators could realize economies of scale if all the traffic were to be combined, a situation that would lead to more competitive prices. In addition, the fact that the platforms are centralized in Ouagadougou and are uni-modal in nature (rail transport for Ouaga-gare and road traffic for Ouagarinter), together with the recurring problems of urban overcrowding, make any attempt of extension impossible. It has therefore become clear that these platforms should be re-located to the outskirts of the city of Ouagadougou and should have modern and multi-modal infrastructure (rail, road) with interconnection to the new Donsin Airport. The idea of constructing a dry port arose as a result of these problems. The multi- modal dry port project will, in time, serve as a solution to the difficult problem of access to terminal platforms, a problem that is particularly acute in Ouagadougou. Indeed, these platforms have been overtaken by urban sprawl and access for heavy duty vehicles has become more difficult owing to traffic congestion. Furthermore, rehabilitation works are currently under way at Ouagarinter. However, while waiting to take up the challenge of extending the handling capacity of the platforms through a multi-modal dry port project, the CCI-BFA has undertaken rehabilitation works at existing structures (Ouagarinter platform, BVA, Ouaga-gare). The construction of a bi-modal dry port at Bobo-Dioulasso is to be noted. The port handles rail as well as road traffic and works are under way to strengthen infrastructure and equipment on this platform. With respect to storage space, the CCI-BF has access to bonded and bond-free warehouses at Ouagarinter, Ouaga-gare, Boborinter, Banfora, Bittou, Niangoloko and Koudougou. It also has storage facilities outside of the country, notably at the ports of Tema, Cotonou, Lomé and Abidjan. There are parking facilities on all CCI- BF platforms for either border or terminal platforms. A platform was built to accommodate trucks in transit at the International Transit Center (ITC) of Tanghin-Dassouri and has been in operation since June 2013. b.4 – Customs consideration and transit regime Traffic along the Abidjan-Ouagadougou has long been subjected to bureaucratic red tape at Customs. This is attributable to the lack of professionalism on the part of Customs Agents and Authorized Customs Brokers, protracted travel times for trucks owing to the lack of connection between the computerized systems and services of the Customs administrations of the two countries. An additional levy was imposed on the CIF value of goods in transit along the corridor, resulting in double payment of fees. Furthermore, there was no effective system of risk management at Customs and no clearly defined risk profile of the brokers. In addition, under the system whereby documents were retained by Customs, the quality of traffic along the corridor was not in any way enhanced. In view of this situation, both countries have decided to undertake corrective measures and reforms to improve the flow of traffic along the Abidjan-Ouagadougou corridor by improving customs and transit procedures. Burkina Faso Since 2009, Burkina Faso has committed to the electronic management of road transit (T1). Unfortunately, this system is not working efficiently, owing to the continued practice of physically escorting cargo, for reasons of security. 128 Added to this is the lack of interconnectivity between the customs systems of both countries. This leads to the duplication of customs procedures at the Burkina Faso border, thus considerably delaying travel time and increasing transit costs. Côte d’Ivoire The challenge for the Customs Administration has been to ensure security along the Abidjan- Ouagadougou corridor. To do this, the Administration has set up a computerized transit management module (T1). This module, coupled with a cargo tracking system, makes it possible to monitor goods in transit. However, a number of problems have been encountered in the implementation of this system (e.g., insufficient number of markers, the condition of the trucks, cargo that is not hermetically sealed, and lack of parking areas for trucks). 129 VI. MONITORING AND EVALUATION Monitoring and evaluation of the Program will be the responsibility of the national coordination offices established in both countries to monitor the Regional Budgetary Support. It is our hope that the approaches adopted and commitments made by the Governments of Burkina Faso and Côte d’Ivoire will help give much greater impetus to financial cooperation with the World Bank and all the other multilateral and bilateral partners, and thus enable them to secure this Regional Budgetary Support in an amount equivalent to US$50 million for each country. Very truly yours, For Burkina Faso For the Republic of Côte d’Ivoire Minister of Economy, Minister in the Office of the Prime Minister with Finance, and Development responsibility for Economy and Finance Hadizatou Rosine COULIBALY/SORI Adama KONE 130 ANNEX 1: STRATEGY FOR MODERNIZING OPERATIONS ALONG THE ABIDJAN-OUAGADOUGOU CORRIDOR AND REDUCING COMMERCIAL TRANSACTION COSTS a. Overall medium-term vision and objectives In Burkina Faso, the transport sector is one of the essential components of the Strategy for Accelerated Growth and Sustainable Development (SCADD). It is part of Strategic Axis 3, “the development of the pillars of accelerated growth.� The Government’s Action Program for Emergence and Sustainable Development (PAGEDD) for the 2011 - 2015 period devotes considerable attention to this sector. In view of its significance, it is imperative that vigorous action be undertaken to usher in real development. Since 2008, as part of the process of institutional and regulatory reform of the transport sector, Burkina Faso has enacted the Framework Law on Land Transport [Loi d’Orientation des Transports Terrestres], which unveils the Government’s vision for the subsector. This is in light of the requirements of new regulations adopted by WAEMU and ECOWAS, as well as the need to allow the transport sector in general and road transport in particular to fully play their part in enhancing economic production. This important legal text, which now constitutes the normative reference framework for the organization of land transport systems, rests on five (05) main strategic axes. Any discussion or initiative with respect to the formulation, conception, planning, and organization of land transport activities should be based on these five axes. In order to respond to the strategic requirements, the Ministry has been tasked with achieving the following objectives: - strengthen the capacity of the transport and transit sector for leadership and management; - shore up the monitoring of operation of infrastructure and road safety; - professionalize and modernize transport systems; - enhance urban and rural mobility; - improve transport operating conditions; - revamp rail transport; - carry out information campaigns, as well as training research and capacity strengthening activities; - strengthen the possibilities for concerted action in order to ensure more widespread support for public policies in the sector; and - organize information and sensitization campaigns to inform users of the policies and strategies of the sector, as well as the implementation of such policies and strategies. In Côte d’Ivoire, the Ministry of Transport aims to reduce the weaknesses encountered in the transport sector and to transform it into a modern, reliable sector with cutting-edge technology, so that it may make a more significant contribution to national economic growth. The promulgation of Law No. 2014-812 of December 16, 2014, known as the Framework Law on Domestic Transport [Loi d’Orientation du Transport Intérieur LOTI] is in keeping with this effort. While conforming to Community rules, it provides guidance on: - the domestic transport policy regarding the provision of public services, the supply of transport, competition between transport companies, and the protection and information of usesr; 131 - transport that is regulated (public transport, private transport, etc.); - transport contracts; - tariff rates principles with the possibility for the State to specify indicative rates; - safety and improving working conditions in the sector; - the obligation to have insurance; - the framework for intervention of public authorities and for investment in the sector; - sanctions for the violation of rules. This Framework Law is applicable to domestic transport activities as well as to all public, para-public and private stakeholders directly or indirectly involved in the transport sector. Its flexibility allows to: - adapt legislation regarding internal transportation to OHADA rules as well as to the WAEMU and ECOWAS community standards; - better protect the interests of users, through ministerial orders for its implementation, by the reduction of transport services costs and the speedy delivery of transport documents. Things such as these are likely to help reduce the cost of living and fight the scourge of widespread corruption in the sector; - establish, with respect to the organization of the sector, an Authority responsible for the regulation of domestic transport. This Authority is also called to arbitrate conflicts between individuals or companies in the sector. With respect to Customs, operations along the Abidjan-Ouagadougou corridor will need to be secured and costs reduced, through the interconnection between the computerized systems of the Customs of both countries. The aim is to proceed to the implementation phase of this Project. b. Strategies and measures envisaged for each sector at the national and bilateral levels (between Burkina Faso and Côte d’Ivoire)  Parallel measures (A1, A3, B2, D1, D2 and D3) A1- Burkina Faso and Côte d’Ivoire have undertaken wide-ranging reforms aimed at the professionalization and formalization of the goods transport industry. This is evidenced by the adoption by each of the two countries of harmonized legal and regulatory frameworks that re-define: (i) the conditions for joining the profession of road goods transport operator, whether on own account or for hire or reward; and (ii) the issuance of a specific driving license for drivers of heavy-duty vehicles. Both countries also adopted a mutually recognized regulatory framework defining (a) the training program for managers of trucking companies and drivers of heavy-duty vehicles, following international best practices and (b) the criteria and certification mechanism for the creation of private establishments ensuring training and issuance of professional diplomas for the road goods transport industry. The objective of these reforms is to create an environment that actually promotes the professionalization and the formalization of the freight industry. These reforms will result in: the emergence of professional road transport firms for goods that are certified and in compliance with regulations; a good segmentation of the industry of road transport; the decline in the number of informal firms (or individuals); the absence of participation of 132 firms in road transport markets that have declared working for their own account, not to mention a requalification from the category of "private carrier" to that of "public carrier" for a significant number of existing businesses , notably the stevedores, the forwarders and assimilated operators. In this aim, Burkina Faso adopted Decree No. 2014- 683/PRES/PM/MIDT/MEF/MATS/MICA of August 1, 2014 which introduces the following changes: - refinement of the categorization of road transport and the conditions of exercise of the activity; - a clear distinction between transport for own-account and for-hire, and conditions of exercise; - introduction of measures that ultimately will contribute to renew the transport fleet; - free choice of carrier by the shipper; - a regime for infractions and sanctions. The above-mentioned Decree has seen its Article 52 modified in order to conform with the liberalization of the sector. With respect to Côte d'Ivoire, the Minisry of transport initiated the reform of governance in the road transport sub-sector to respond effectively to the problem of modernization of road transport through the realization of major projects in the context of the National Development Plan (PND). In this context, we can note: - the revision of texts (laws, decrees, orders, etc...) to ensure modernization, efficiency and competitiveness of the sector. It is in this context that the Law of Orientation of Domestic Transport (LOTI) enacted December 16, 2014 and from which emanate the decrees and orders organizing, determining and specifying: the conditions for access to the transport profession and the conditions of exercise of road transport activity; the approved training centers for managers of transport companies; the approval of the training curriculum for managers of transport companies; the duty stamp and the homologation of the single transport document (document unique de transport, DUT); the registration conditions; and maintaining a register of transporters; - the establishment of an integrated management system for all the activities pertaining to road transport. This reform of procedures relating to the operation of user services is predicated on the setting up, within the Ministry of transport, of a unique database containing all of the activities of the different actors in road transport. This database, using latest generation techniques and tools, will automate, trace, simplify and secure for users all procedures regarding transport titles while providing a computer-based link to all the various planned registers (drivers, transport companies, vehicles, etc...); - the construction of joint border control post at the Côte d’Ivoire - Burkina Faso border; - the development of regulations for the progressive implementation of the provisions of WAEMU Regulation 14. This means that road transport companies must now meet criteria regarding technical, managerial, financial and training capacity for the profession of transporter in Burkina Faso and Côte d'Ivoire. More specifically, the minimum financial capacity required is aimed to restore financial viability in the sector, with the guarantee that at term actors of the sector can demonstrate adequate financial capacity sustaining the sector without the need of any substantial contributions from donors or the States. 133 A probationary period of at least two years is granted to actors in order to comply with new legal and regulatory provisions. A3 – To ensure effective implementation of the regulations governing axle weight, Burkina Faso and Côte d’Ivoire have decided to shed extreme excess loads through the platforms and on the Abidjan- Ouagadougou corridor. Trucks leaving the centers are now required to comply with the axle load regulation as defined by WAEMU Regulation 14. B2 - Burkina Faso and Côte d’Ivoire have undertaken important actions aimed at establishing a sustainable mechanism to support vehicle fleet renewal for authorized transport operators including (i) measures for lowering the cost of vehicles, (ii) a mechanism to facilitate access to credit, and (iii) support measures. In Burkina Faso, this led to the following: 1. Authorization of exemption from VAT and customs duties on importation of articulated trucks; 2. Limitation to 20 years of the lifespan of public transport vehicles; 3. Inclusion of container vehicles in the authorization of exemption from VAT and customs duties to promote containerization; 4. Promotion of the conclusion of long-term transport contracts between transport operators and shippers and support measures through the monitoring of vehicle use (over seven years), and training of transport managers in tools for technical, accounting and financial logistics, and driver management; 5. Encouragement of the use of benefits of the investment code by transport operators, especially the new companies. In Côte d’Ivoire this mechanism consisted of the following:  Mechanisms for lowering the cost of vehicles through - signature of preferential agreements with vehicle sellers; - signature of preferential financing agreements with banks; - lowering of taxes and customs duties (there have been no formal mechanisms as such in the tax schedule since 2012).  Mechanisms for facilitating access to credit through: - conclusion of financing agreements with banks or financial partners with support from the State (EXIMBANK-Government of Côte d’Ivoire model) - conclusion of preferential financing agreements with banks or financial partners with support from the FDTR (non State):  establishment of bank guarantees by financial partners in the banks (IFC model);  establishment of traditional lines of financing by banks under preferential conditions and at preferential rates (model).  Support measures for transport operators through: - preparation and adoption by the Cabinet of legislation limiting the lifespan of public transport vehicles; - preparation and adoption by the Cabinet of legislation organizing the road transport market (competition, rehabilitation of the sector, disorder and violence in the sector, etc.); - prior training of transport operators admitted to the project; 134 - technical assistance for transport operators;  support with the preparation of applications to start businesses  support with the preparation of bank loan applications  advice on the management of companies that have applied for loans - the design and implementation of a scrappage incentive system. In concrete terms, this mechanism facilitated the following: - the purchase, at reduced prices, with the lowering of customs duties and VAT, of 100 Renault Logan vehicles, intended to serve as metered taxis in the district of Abidjan; - conclusion of the CFAF 100 billion financing agreement between the Government of Côte d’Ivoire and Eximbank India for delivery, in the first half of 2016, of over 3,000 vehicles of all types. These mechanisms aimed at complete and sustainable renewal of the vehicle fleet are established in order to facilitate the renewal of a significant portion of trucks and improvement of the overall quality of the fleet. In addition, to eliminate non-roadworthy vehicles, Burkina Faso and Côte d’Ivoire have revised the mechanism and regulations for technical inspection of trucks. Thus, in Burkina Faso, the Automotive Vehicle Inspection Center (Centre de Contrôle des Véhicules Automobiles) is gradually deconcentrating its activities in the capitals of the regions toward the cities with a heavy concentration of vehicles by installing permanent technical inspection branches and strengthening mobile teams. Single-service and permanent technical inspection sites are currently in place to detect noncompliant vehicles, which prevents them from being registered and put into operation. To limit as much as possible instances of fraud and falsification of transit documents (proof of ownership [carte grise], drivers’ licenses, transit cards, certificates of roadworthiness), mechanisms and tools are being developed to ensure real-time verification and authorization of transit documents. In Côte d’Ivoire, the process consists of relaxing technical inspection rules to maximize the number of vehicles undergoing technical inspection by bringing vehicle owners or holders closer to technical inspection centers. Through the Ministry of Transport, the Government of Côte d’Ivoire requires that these technical inspection centers use modern facilities with state-of-the-art fixed or mobile technological equipment, capable of offering better service quality and effective control. Thus, the Ivoirian automobile technical inspection company, Société Ivoirienne de Contrôle Technique Automobiles (SICTA), plans, for the 2016-2020 period, to strengthen its presence through an investment program primarily covering the following actions: - move the Bassam site to another site, facilitating the creation of additional lines in this area, including a line for heavy-duty vehicles; - purchase mobile equipment, including a heavy-duty mobile unit, to streamline inspections across the country; - increase heavy-duty vehicle processing capacity in the district of Abidjan, particularly for the northern area of the city; - create local stations to bring the company closer to its customers in the district of Abidjan; - participate in road safety activities within the framework of outreach campaigns about the risks associated with potential dangerous driver behaviors. These activities would primarily address speeding, drunk driving, or seatbelt wearing. The goal of these reforms is to improve efficiency in the road transport of goods by modernizing the fleet. D1 - Regarding customs clearance, following the creation in each country of a regulatory and institutional framework for the preparation and maintenance of a Web-based Trade Information Portal 135 (TIP) (conferred by joint order No. 2015-0079/MICA/MEF in Burkina Faso and order No. 182/PM/CAB of April 2, 2015, signed by the Prime Minister, in Côte d'Ivoire). These portals are designed to create an electronic platform containing all the information on trade regulations and procedures in both countries. This will allow economic operators to be better informed and better prepared for more consistent business transactions. Specifically, the virtual single trade window, SYLVIE, was developed and launched on February 16, 2016 in Burkina Faso. In Côte d’Ivoire, the TIP developed in accordance with Article 1 of the WTO agreement on trade facilitation, based on the WAEMU model and international best practice, is currently being implemented, based on the Single Window for Foreign Trade (GUCE) with technical assistance from the International Finance Corporation (IFC). D2 – Still regarding customs clearance, the Customs Administrations of Burkina Faso and Côte d’Ivoire have set up an operational computerized database on the risk profiles of brokers. They have also strengthened risk management by interfacing the broker risk profile database with the customs clearance system, and strengthened ex-post control capacity [contrôle a posteriori CAP] by adopting a strategy and manual of procedures for CAP in Côte d’Ivoire and a guide to post-clearance control adopted by order no. 2016-059/MINEFID/SG/DGD of March 30, 2016 in Burkina Faso. The intention of such measures is to streamline customs procedures for operators in good standing, who may consequently be rewarded with preferential treatment. D3 - Regarding professional standards of the Customs Administration and the Licensed Customs Brokers, the Customs Administrations of Burkina Faso and Côte d'Ivoire have improved internal control and control by Licensed Customs Brokers through the adoption of the following: (i) in Burkina Faso, an internal control manual and a notice to Licensed Customs Brokers on the code of conduct of the LCBs and (ii) in Côte d’Ivoire, an internal audit training plan and an improvement program for Licensed Customs Brokers, through Decision No. 116/MPMB/DGD of December 18, 2014 on the creation and terms of reference for the office responsible for monitoring LCBs, the Bureau de Suivi des Agréés (BSA).  Joint measures (B1, E1 and E2) B1 - As part of the Regional Budgetary Support, Burkina Faso and Côte d’Ivoire have a shared commitment to strengthen bilateral cooperation for the benefit of the subregion and their respective peoples. In a bid to undergird the mechanisms for integration of their economies, they have opted for a paperless system and mutual recognition of intergovernmental consignment documents. This means that Côte d’Ivoire recognizes the road traffic monitoring form [Bordereau de Suivi du Trafic Routier BSTR] as a transport document issued by Burkina Faso and, in return, Burkina Faso recognizes the Single Transport Document [Document Unique de Transport DUT] as a transport document issued by Côte d’Ivoire. Both countries are ultimately striving to adopt the use of a single document along the Abidjan- Ouagadougou corridor in the future, and have instructed their shipping councils to agree on terms and conditions for the issuance of documents and the financial aspects. The two countries have also agreed to set a joint technical committee with mandate to revise the Bilateral Agreement on Road Transport dated July 27, 1999. The new Bilateral Agreement on Road Transport of Goods between Burkina Faso and Côte d’Ivoire, signed May 12, 2016 by the competent 136 authorities of both countries, is a substantive and ambitious legislative text including, among others, the provisions on trade facilitation and transport systems, freight allocation, and the opening up of transport markets under the Friendship and Cooperation Treaty (TAC), and is aligned with the core objectives of the Financing Agreement for the Regional Budgetary Support. The revised Bilateral Agreement on Road Transport, as well as the adoption of a paperless system and mutual recognition of intergovernmental consignment documents, will facilitate improvements in the efficiency of road transport of goods owing to better contractual relations between transport operators and shippers, which will result in the elimination of intermediaries between the demand and supply of transport services, a reduction in prices, and better use of trucks. E1 - In an effort to promote the reforms needed to boost competitiveness along the Abidjan- Ouagadougou corridor and strengthen mutual trade Burkina Faso and Côte d’Ivoire have agreed to establish a joint, permanent framework involving Customs, other border management agencies, and logistics operators. Their task will be to prepare and manage the process of interconnection of their customs systems. The aim is to prepare and manage the process of interconnection and adoption of an agreement on: (i) the list of technical topics to address, including harmonization of documents and procedures, and; (ii) a specific timetable of implementation actions. In this context, a protocol of agreement on the interconnection of the systems of the Ivorian and Burkinabe Customs Administrations was signed in Abidjan on Thursday, March 19, 2015 by the Directors General of customs of Burkina Faso and Côte d’Ivoire. The goal is to improve the conditions for crossing the border between Côte d’Ivoire and Burkina Faso, which will result in reducing border crossing times. E2 – With a view to improving the transport regime between the two countries, under the Inter-State Road Transport of Goods Burkina Faso and Côte d’Ivoire signed on February 5, 2014 a Memorandum of Understanding for guaranteeing of bond notes on the Abidjan-Ouagadougou corridor through their respective Chambers of Commerce and Industry. Faced with difficulties of implementation of this MOU and considering their willingness to apply the single guarantee mechanism, the two national guaranteeing agencies have approved and signed on March 19, 2015, an addendum to the MOU of February 05, 2014, with a view to make effective the single payment of the ISRT guarantee. Pursuant to this amendment, a signed Decree on 05 December 2014 by the Minister in charge of economy and the Finance of Burkina Faso puts an end to the levy by Burkina Faso of 0.25% of the CIF value of the goods in transit at the Côte d’Ivoire - Burkina border. The objective, through this measure, is to improve the transit regime between the two countries.  Specific Measures (A2, A3, B1, C1, D2 and F1) A2- In Côte d’Ivoire, the Ministry of transport has approved the statutes and the governance arrangements for the creation of an independent professional association, representing the industry of merchandise road transport, in accordance with international best practices. Indeed, the transport organized themselves into a Federation, the High Council of the Road Transport Employers of Côte d'Ivoire [Haut Conseil du Patronat des Entreprises de Transport Routier de Côte d’Ivoire, HCPETR-CI], which is the single interlocutor for the government. This Federation is a cooperative company with a board of directors created according to the OHADA Act on cooperative societies. HCPETR-CI is therefore a credible partner for the public sector and will accompany the process of professionalization of the transport sector. 137 A3- The signature in Côte d'Ivoire by the Minister in charge of transport and the Minister in charge of economic infrastructure of an inter-ministerial order defining the division of responsibilities between these two departments will allow the application of regulation 14, particularly with respect to the regulation and control of axle load. In addition to the effective application of of WAEMU regulation 14, this measure will reduce significantly predatory practices and trucks that leave logistics platforms will comply with axle load limits. B1- Regarding the review and enforcement of the regulatory framework relative to the issuance consignment notes according to the OHADA model, arrangements are taken in Côte d’Ivoire by the Ministry of transport for the revision of texts relating to it, with in particular the signing of a decree and two orders adapting all the texts relative to the consignment note to the new single transport document dispositions. This single transport document [Document Unique de Transport (DUT)], takes into account the international consignment note, the national consignment note and transport documents. C1 – Regarding the competitiveness of the Autonomous Port of Abidjan (PAA) and inland logistical platforms, an order of the Minister in charge of transport (order No. 007 of 27 April 2015, defining the conditions for the exercise of public transportation of goods by container) clarifies the conditions of delivery of containerized merchandises throughout the national territory in order to put an end to the monopoly of stevedores. This liberalization of the delivery of containers, not only in Abidjan, but across the country, will result in a reduction in the cost of transit through the PAA, below the West African average. Moreover, still with a view to improve the operational efficiency of port and terminals, and reduce prices, an order from the Ministry of Transport of Côte d’Ivoire, dated February 19, 2016, reactivated the Ivoirian Port Competitiveness Commission [Commission de Compétitivité et de Développement des Ports Ivoiriens] (order No. 005 of February 19, 2016 on the creation, organization, and operation of the Ivoirian Port Competitiveness and Development Commission). This Commission last met on March 17, 2016. D2 - In the context of streamlining customs procedures for operators in good standing and rewarding them with preferential treatment, Côte d’Ivoire has adopted and implemented a regulatory framework defining the criteria and operating model for an authorized economic operator (AEO) system. E1- On December 17, 2014, as part of its efforts to strengthen the capacity of the Customs Administration and the Licensed Customs Brokers, Côte d’Ivoire adopted a Code of Ethics and Good Governance of Customs, to facilitate the improved implementation of regulations and the promotion of integrity. 138 ANNEX 2: REFORM SUPPORT MEASURES AND CAPACITY BUILDING Burkina Faso Reform support measures: One of the Gordian knots of this professionalization, which the decree addresses, remains the issue of aging of the transport fleet. Support measures must be taken, in particular: - establishment of a mechanism to support renewal of the fleet for approved transport operators, including (i) measures to lower the cost of vehicles (including exemption from taxes and customs duties); (ii) measures to facilitate access to credit; and (iii) support measures; - resolution of the axle load issue, which is essential to ensure the competitiveness of corridors and States’ economies through the effective and concomitant implementation of the provisions of Regulation No. 14; - development and implementation of a training plan for administrative public actors (capacity building in the areas of planning and management of transport activities) and private actors (ownership of the content of decrees, enhancement of the competitiveness of transport companies). Capacity building: training to strengthen stakeholder capacities is one of the strategic axes of the national development policy for the transport sector. In addition, the development and implementation of training programs and refresher courses as a form of assistance for operators in the road transport sector are actions incorporated into the transport administration's program of activities. The major constraint remains mobilization of financial resources. Implementation of training programs/refresher courses for operators: the development and implementation of training programs and refresher courses as a form of assistance for operators in the road transport sector seeks to give them the tools to master efficient management of their activities and their vehicle fleet on one hand, and to introduce them to international transport conditions on the other. The training modules will cover the various aspects of the transport sector and will facilitate the following: - mastering commercial management of the transport sector; - mastering logistical and technical management of public road transport vehicle fleets; - understanding transport sector financing systems; - enhancing knowledge of the institutional, legislative, and regulatory environment of public road transport. By way of example, the following modules can be cited: - training modalities of the transport contract; - different cost elements of the transport chain; - responsibilities of the various stakeholders in the transport chain; - training on customs clearance procedures; - training on WAEMU tariff schedules; - regulation and organization of international transport; - risk coverage with respect to international transport; - tracking of overloading of freight transport vehicles; and - assistance to professional organizations to defend the interests of the profession. 139 Support for professional organizations: This consists of organizing joint actions such as (i) conducting studies to reduce costs and (ii) improving insurance conditions, etc.. This will ensure better supervision of transport operators through (i) the organization of information and outreach seminars, (ii) the organization of training for transport managers, and (iii) making documentation on the transport sector available. Financial support for the Customs Administration will help: - finalize implementation of a risk analysis and selectivity system for commercial operations; - establish a geo-localization system on the Abidjan-Ouaga corridor; - ensure capacity building of Licensed Customs Brokers (LCBs); and - implement non-intrusive supervisory tools along the Niangologo border and at the Ouagarinter and Boborinter terminals. Côte d’Ivoire Regarding the transport sector: the successful implementation of the policy for the development and modernization of the transport system in Côte d’Ivoire will require rigorous actions and measures to provide support, training, and equipment for, and supervision of, public and private actors in the sector. The following are also planned: - financial support for driving schools for the study and purchase of appropriate equipment to improve the basic training of potential drivers; - financial support to the Ministry of Transport for the study and construction of Professional Training Certification Centers leading to the Driver Certificate of Professional Competence; - financial support to the Ministry of Transport for the study and monitoring of the social cost of implementation of the reform, particularly the application of new criteria for access to the profession of transport operator; - construction of rest areas along the corridors, particularly the Abidjan-Ouagadougou corridor. Three (3) rest areas are planned on the Ivoirian portion of the corridor, for a total investment of CFAF 9 billion; - renewal of the vehicle fleet. The cost of the vehicle fleet renewal program developed by the Ministry of Transport stands at CFAF 750 billion over five years. Local commercial banks have already established a CFAF 50 billion line of credit. A fund dedicated to this project has just been created and requires CFAF 150 billion in financial support, which will make it possible to leverage more resources in the commercial banks; - modernization of freight management. It is necessary to review the regulations to ensure equitable access by transport operators to road freight; - facilitation of implementation of Regulation 14 of WAEMU on the issue of combating vehicle overloading by financing measures to support transport operators; and - establishment of a scrappage incentive system with financial support estimated at CFAF 2 billion over a period of five years to facilitate implementation of the policy to lower the age of the fleet of vehicles in circulation. Regarding Customs: the Customs Administration has adopted a six-component modernization and reform plan with the support of AFRITAC West (IMF). Implementation of this plan is encountering difficulties owing to a lack of financing. The Customs Administration would like to receive the support of technical and financial partners (financial and technical assistance) in order to successfully carry out its reform program. 140 ANNEX 3: MEDIUM-TERM ACTION PLAN FOR IMPLEMENTING THE STRATEGY Burkina Faso  Reform of the legislative and regulatory framework concerning access to the profession The development of the road transport industry depends to a great extent on the ability of transport operators to improve the quality of their services, acquire management tools, and invest in training. The professionalization of transport operators will require the enactment of a decree on conditions for joining the profession. In this regard, the following is a summary of activities to be carried out: - production and distribution of leaflets on the regulations governing access to the profession of transport operator; - implementation of five specifications on different categories of transport adopted in 2015; - implementation of a communication strategy on the content and scope of the new regulations; - organization of regional Seminars to ensure dissemination and buy-in of the decree; and - organization of capacity-building training for Transport Administration and control agents.  Axle load control The objective of axle load control is the preservation of existing road assets. The DGTTM and ONASER will be granted powers to monitor and penalize violations of the provisions of national and community regulations regarding loading standards and the weight and dimensions of public and private transport vehicles. Actions envisaged will involve: - The effective application of regulations for monitoring overloading; - The construction, equipping and operation of fixed weighing and counting stations within the country; - The convening of meetings and information and sensitization missions for transport operators; and - The increase in the number of technical inspection centers, to facilitate improved access for users.  Modernization of the organization of the transport market The organization of competition in the market for the road transport of goods is intended to stimulate competitiveness among transport operators and thus reduce costs. The actions are intended to: - improve the mechanisms for ensuring competitiveness within the market for the road transport of goods, by eliminating, within a time frame defined and agreed upon by both parties, freight allocation quotas between transit countries and countries of final destination and through a re- reading of the Agreements on Road Transport in sessions of the Joint Commissions on Cooperation as well as at the community level; and - provide assistance to shippers in their negotiations with port and transport operators. Actions under way within the Chamber of Commerce and Industry of Burkina Faso concern the promotion of containerization. This promotional campaign is being conducted through the commemoration of “National Logistic Days.� It is planned that the conclusions of the work of the commissions established as a result of the National Logistic Days 2014 will be disseminated and shared. 141 For landlocked countries such as Burkina Faso, the promotion of containerization is intended to foster a greater level of competition in the transport chain, with its consequent salutary effect on the national economy. As part of this dynamic, the Burkinabè Council of Shippers (CBC) and the Chamber of Commerce and Industry in Burkina Faso (CCI-BF) have undertaken initiatives to favor this mode of transport. For the Burkinabè Council of Shippers, the promotion of containerization is in keeping with the recommendation of a study to develop a strategy for the promotion of containerization throughout the length and breadth of the landlocked countries of West Africa.  Vehicle fleet renewal arrangements The trucking industry in Burkina Faso is adversely affected by the absence of a system of commensurate funding for new vehicles transporting goods. The following actions will be required for the modernization of the vehicle fleet: - The implementation of adequate financial mechanisms for acquiring new vehicles, in order to renew the present fleet; - The creation of a support fund for transport operators is a possibility that could be envisaged, especially for small and medium-sized transport operators. This could help to offset the cost of acquiring new vehicles or rehabilitating existing ones. The support could take several forms, namely: - access to subsidies and/or development loans for the renewal of the vehicle fleet; - exemptions or reduced customs duties or import taxes for heavy-duty vehicles; - the establishment of fiscal measures (reduced import duties on spare parts) in order to help transport operators in the rehabilitation of their heavy duty vehicles; - increased vehicle technical checks (leading to a reduction of traffic accidents); - the monitoring and inspection of transport services; and - improvement and organization of access to road freight.  Effectiveness and efficiency of port and terminal operations The actions of the Chamber of Commerce and Industry of Burkina Faso may be summarized as follows: - the carrying out of a technical and economic feasibility study of the multi-modal dry port of Ouagadougou; and - organization of a seminar on international transport and transit in Ouagadougou and Bobo- Dioulasso in October 2014.  Reform of customs procedures and facilitation of transit The Customs Administration adheres to the program schedule included in the Matrix agreed on in discussions held from June 13-16, 2014 in Abidjan.  Strengthening of institutional and organizational capacity The institutional and organizational capacity of the public and private entities in the transport sector must be strengthened to ensure this sector’s development. 142 The General Directorate of Land and Maritime Transport (DGTTM) is one of the central directorates in the Ministry of Infrastructure, Road Development, and Transport (MIDT) tasked with regulating, planning, and overseeing implementation of the national policy on modes of transport, such as by land, sea, and river. Burkina Faso is a landlocked country, with more than 90 percent of its foreign trade being carried out by land. It is therefore facing pre- and post-maritime transport challenges and must strengthen the capacity of transport managers. The following actions could strengthen the institutional and organizational capacity of the sector’s public and private entities: - specific evaluation, technical support, and training missions; - the development of personnel training programs and the organization of refresher/advanced courses; - the implementation of decision-making tools to monitor transport activities; - database improvement (help improve the collection, processing, and analysis of statistical data on land and maritime transport); - conduct of a forward-looking study for strategic development of the General Directorate of Land and Maritime Transport (DGTTM) with a view to the establishment of a human resources management plan aligned with the objectives assigned to the entity and the international context, establishment of a career plan and continuing education mechanisms, and agent certification; - identification of training needs and implementation of a formal training plan. The implementation of this formal training plan: - support for capacity building of managers and employees at the Ministry of Transport with a view to improving planning and management of land and maritime transport activities; and - contribution to the upgrading of institutional and human capacity in institutions and organizations involved in transport. More specifically, the training plan seeks, once fully implemented, to provide the Ministry of Transport with competent managers and employees with the following profiles: - transport economists (diploma courses, training courses, or study trips); - transport lawyers (diploma courses, training courses, or study trips); - transport and logistics engineers (diploma courses, training courses, or study trips); - senior transport and logistics technicians (diploma courses, training courses, or study trips); and - traffic managers (diploma courses, training courses, or study trips). Côte d’Ivoire  Reform of the legislative and regulatory framework concerning access to the profession Framework Law on Domestic Transport (LOTI) adopted and enacted. Several implementing orders and decrees have been issued and published, other implementing orders and decrees are being drafted.  Axle load control Draft legislation prepared. Validation by both the Ministry of Transport and the Ministry of Economic Infrastructure pending.  Modernization of the organization of the transport market Study by the EU’s Technical Assistance Department conducted and presented. Validation pending.  Vehicle fleet renewal arrangements 143 Discussions of the arrangements are under way. The Office of the Minister of Transport worked with the team from the European Union’s Technical Assistance Department on a possible fleet renewal plan. The documents related to this study are being prepared and are available.  Effectiveness and efficiency of port and terminal operations The Port Authority formulated a new development strategy for the Autonomous Port of Abidjan through the 2013-2017 strategic plan, in order to tackle the numerous challenges and strengthen the competitiveness of the Port of Abidjan. This goal is part of the overall vision of the Government, which wants Côte d’Ivoire to achieve emerging market status by 2020. The main supporting projects planned for the 2013-2017 period (a number of which are already under way) are as follows: - The project to construct a second container terminal, which seeks to lower costs; - The project to widen and deepen the Vridi Canal entrance; - The project to rehabilitate and modernize the fishing port; - The project to construct a grain terminal; - The project to modernize the ore tanker port; - The project to create industrial zones by backfilling in the Biétry-Vridi bay; and - The project to improve parking facilities (repairs of the Ivoirien Shippers’ Council (OIC) facilities and construction of a parking area at PK 25, Northern highway) that will help relieve port congestion. The implementation of all of these projects should help to significantly improve the conditions and increase capacity to accommodate traffic and boost the competitiveness of the Port of Abidjan.  Reform of customs procedures and facilitation of transit The transit issue has always been cause for concern among customs authorities in Côte d’Ivoire, owing to illegal dumping during these operations. We therefore piloted physically escorting the cargo, the ISRT, and T1 coupled with a geotracking system. Unfortunately, all of these pilots were unsuccessful (e.g., problem with markers, condition of the trucks, lack of a truck parking area, cargo not hermetically sealed). As a result, the customs authorities would like to conduct the project to interconnect the customs computerized systems in Burkina Faso and Côte d’Ivoire, which will facilitate trade in the long term.  Strengthening of institutional and operational capacity The customs authorities must strengthen the capacity of all its agents. The Governments of Burkina Faso and Côte d’Ivoire appreciate the World Bank’s contribution to the formulation of the development strategy for their respective countries, and will work to strengthen this partnership for the implementation, in particular, of the regional investment programs. 144 ANNEX 4.1: TIMELINE OF IMPLEMENTATION OF MEASURES TOWARD THE FULL APPLICATION OF REGULATION 14 IN BURKINA FASO N° ACTION I. Operationalization of fixed weigh stations and equipment of platforms with weighing equipment Activities Responsible structures Deadline Observations 1 Measures and actions to make operational five (05)  M. of Infrastructures December 2016 The company Afrique weigh-stations financed by the European Union  Contracting company Pesage is already on the ground since October 5, 2016 for this purpose 2 Equipment of logistics platforms generating over  Platforms generating over March 2017 200,000 tons of freight per year 200,000 tons of freight per year ACTION II. Information - training and sensitization of actors Activities Responsible structures Deadline Observations 1 Media communication Press release on the implementation of Regulation 14 November 2016 Radio announcements both in French and national  MTMUSR/ONASER November 2016 languages Distribution of flyers on permitted charges showing November 2016 different silhouettes of trucks Filming and diffusion of a TV advert on the Starting February 1st implementation of Regulation 14 2017 2 Interactive activities of exchange, information and training 3 Meeting of administrations in charge of transport and  MTMUSR (DGTTM, CBC, commerce on transport tariffs ONASER) December 2016  MCIA (DG Commerce) 4 Meeting of administrations in charge of transport,  MTMUSR(ONASER- finance, infrastructure and commerce on procedures DGTTM-CBC) for unloading of overloaded vehicles  MINEFID (Customs), December 2016  MI( FSR-B), 145  MATDSI (DGPN),  MDNAC (EMGN). 5 Meeting to exchange with logistics platform generating  MTMUSR more than 200,000 tons of freight per year  MI  M Mines,  MCIA, November 2016  MATDSI (DGPN),  MDNAC (EMGN),  Platforms 6 Meeting to exchange with truckers and transporters  MTMUSR (DGTTM, CBC, professional organizations ONASER, CCVA)  MCIA  MINEFID (Customs) January 2017  MATDSI (DGPN),  MDNAC (EMGN),  Truckers and transporters. 7 Meeting to exchange with shippers  MTMUSR (DGTTM, CBC, ONASER, CCVA)  MCIA  MINEFID (Customs) January 2017  MATDSI (DGPN),  MDNAC (EMGN)  Shippers 8 Meeting with all actors at the CBC to launch the  MTMUSR (DGTTM, CBC, Ministers of Transport, implementation of Regulation 14 ONASER, CCVA) Mars 2017 Infrastructure, Finance,  MCIA Trade and Internal Security  MINEFID (Customs) will co-chair this launch  MATDSI (DGPN), meeting.  MDNAC (EMGN). ACTION III. Control of vehicle overloading Activities Responsible structures Deadline Observations 1 Control of vehicle load with a tolerance of 20%.  MTMUSR/ONASER End January 2017 2 Control of axle load with imposition of fines of R14, but  MTMUSR/ONASER End March 2017 FCFA 20,000 and FCFA without unloading 60,000 FCFA respectively 146 for national and international transport. 3 Full application of Regulation 14 (fines and unloading)  MTMUSR/ONASER 1st April 2017 Unloading is performed by customs in customs enclosures/perimeters. 4 Fines for logistics platforms generating over 200,000  MTMUSR/ONASER 1st April 2017 The fine for lacking or tons of freight per year that are not equipped with faulty material is FCFA functioning axle-load weighing material. 50,000,000. 5 Fines for overloaded vehicles exiting platforms  MTMUSR/ONASER 1st April 2017 The fine for non- generating over 200,000 tons of freight per year compliance with the weight limit obligation is FCFA 200,000 per vehicle. ACTION IV. Bringing up to standards heavy vehicles for merchandise transport 1 Exchange meeting with truck repair and maintenance  MTMUSR (DGTTM, December 2016 professionals on procedures and standards to bring up ONASER, CBC, CCVA) ; vehicles in compliance  Repair and maintenance professionals 2 Inclusion of vehicles with seven axles. Type T12 S4 in  MTMUSR/ONASER January 2017 the silhouettes of vehicles. ACTIONS V. Transmission of information to the World Bank 1 Transmission of the approved timeline of  MINEFID October 2016 implementation 2 Transmission of communications already carried out by  MTMUSR/ONASER October 2016 the ONASER and other documents related to the actions of implementation of regulation 14. 3 Transmission of first statistical data  MTMUSR/ONASER March 2017 147 APPENDIX 4.2: TIMELINE OF APPLICATION OF WAEMU REGULATION 14 IN CÔTE D’IVOIRE Pursuant to the Declaration of Ministers in charge of infrastructure and road transport of WAEMU Member States and Guinea on September 23rd 2016, in Cotonou (Benin), the following timeline of application of WAEMU Regulation 14 applies:  October 1, 2016 to March 31, 2017: fight against extreme overloading with respect to the total permissible laden weight (TPLW) (Poids Total Autorisé en Charge, PTAC) without unloading on all corridors including Abidjan/Ouagadougou corridor:  Overloading above 40% of the TPLW (Extreme overloading): Fines: FCAF 20,000/excess ton for domestic traffic and FCFA 60,000 FCFA/excess ton for international traffic;  All logistics platforms are obliged to prevent any exit of trucks from their premises with extreme overloading (overloading above 40% of the TPLW) subject to a fine of FCFA 200,000 FCFA per truck in case of non-compliance;  Platforms will have to issue a weighing ticket to all trucks exiting their premises subject to a fine of FCFA 200,000 FCFA per truck in case of non-compliance;  Fine of FCFA 100,000 FCFA for non-compliance with the maximal height of 4.5 meters;  From February 1, 2017: full application of regulation 14 in the Ports of Abidjan and San Pedro with unloading:  Equipment of Abidjan and San Pedro ports with axle load weighing material and full application with unloading in these ports (tolerance of a 5% error margin for the weighing), subject to a fine of FCFA 50 million for ports that are not equipped with axle load weighing and standard vehicle dimensions control material;  The Ports of Abidjan and San Pedro will have to issue a weighing ticket to all trucks exiting their premises subject to a fine of FCFA 200,000 FCFA per truck in case of non-compliance;  Fine of FCFA 100,000 FCFA for non-compliance with the maximal height of 4.5 meters;  From April 1, 2017: full application of regulation 14 with unloading in all platforms and on all corridors including Abidjan/Ouagadougou corridor:  Equipment of logistics platforms generating more than 200,000 tons of freight per year with fix or mobile axle-load weighing material, and full application of Regulation 14 (with a 5 percent tolerance margin for weighing errors) subject to a fine of FCFA 50 million for platforms that are not equipped with axle weighing and vehicle standard dimensions control material;  Fines imposed by Regulation 14 (on the TPLW or the maximal axle load): FCFA 20,000 per excess ton for national traffic and FCFA 60,000 per excess ton for international traffic;  Platforms will have to issue a weighing ticket to all trucks exiting their premises subject to a fine of FCFA 200,000 FCFA per truck in case of non-compliance;  Fine of FCFA 100,000 FCFA for non-compliance with the maximal height of 4.5 meters. 148 ANNEX 3: FUND RELATIONS ANNEX Burkina Faso21 IMF Executive Board Completes Fourth and Fifth ECF Reviews for Burkina Faso and Approves US$26.2 Million Disbursement The Executive Board of the International Monetary Fund (IMF) today completed the fourth and fifth reviews of Burkina Faso’s economic performance under an economic program supported by an Extended Credit Facility (ECF) arrangement.22 The decision enables the disbursement of SDR18.57 million (about US$26.2 million), bringing total disbursements under the arrangement to the equivalent of SDR46.70 million (about US$65.9 million). In completing the reviews, the Executive Board also approved the authorities’ requests for the modification of performance criteria. The 36-month ECF arrangement was approved by the Executive Board on December 27, 2013 (see Press Release 13/542) for the equivalent of SDR 27.09 million (about US$38.2 million, or 45 percent of Burkina Faso’s quota). An augmentation of access of 40 percent of quota was approved in June 2015 by the Executive Board, bring total access to SDR 51.17 million (about US$72.2 million). Following the Executive Board's discussion today, Mr. Min Zhu, Deputy Managing Director and Acting Chair issued the following statement: “Despite challenging internal and external circumstances, Burkina Faso’s performance under the Fund- supported program has remained satisfactory. Although the terrorist attacks posed some setback to economic recovery, growth should regain momentum in 2016-17, underpinned by robust mining activity, improved energy supply and enhanced public investment execution. The main risks to this favorable outlook relate to the fragile security situation, the challenges of meeting pent-up social and investment demands, and the impact of further declines in commodity prices. “The authorities’ main objective for 2016 is to create adequate fiscal space for priority social and infrastructure spending, including implementation of their new development plan. To this effect, they are undertaking a broad package of tax and customs administration measures aimed at regaining the ground lost in domestic revenue mobilization. Continued efforts to contain recurrent spending, including the public wage bill and to address bottlenecks in project execution will be needed to allow public investment to recover quickly toward pre-crisis levels. “The authorities are also seizing the opportunity of the oil price decline to address longstanding structural deficiencies in the energy sector. Full implementation of these measures will contribute to reducing state subsidies and contingent liabilities to the sector and support higher investments in electricity production. Going forward, it will also be important to take action to diversify the agriculture sector and provide a supportive environment to boost credit for the private sector.� 21 Press Release No. 16/278 (June 13, 2016) (https://www.imf.org/external/np/sec/pr/2016/pr16278.htm). 22 The ECF is a lending facility that provides sustained program engagement over the medium to long term in case of protracted balance of payments problems. 149 Côte d’Ivoire23 IMF Reaches Staff-level Agreement with Côte d’Ivoire End-of-Mission press releases include statements of IMF staff teams that convey preliminary findings after a visit to a country. The views expressed in this statement are those of the IMF staff and do not necessarily represent the views of the IMF’s Executive Board.  Staff-level agreement was reached on a three-year program that could be supported by two arrangements under the IMF’s Extended Credit Facility (ECF) and the Extended Fund Facility (EFF) for USD 674.3 million  The program will support the broad objectives of Côte d’Ivoire’s 2016 ‑ 2020 National Development Plan (NDP) by addressing impediments to a sustainable balance of payments position and economic growth. Following discussions held between IMF staff and the Ivoirian authorities during the 2016 Annual Meetings in Washington, a staff-level agreement was reached on a three-year program that could be supported by two arrangements under the Extended Credit Facility (ECF) and the Extended Fund Facility (EFF) for SDR 487.8 million (about USD 674.3 million) or 75 percent of Côte d’Ivoire’s quota in the IMF. Subject to IMF management approval, the staff-level agreement is expected to be submitted to the IMF Executive Board for its consideration in December 2016. At the conclusion of the meetings, Mr. Dan Ghura, mission chief for Côte d’Ivoire made the following statement: “The program will support the broad objectives of Côte d’Ivoire’s 2016‑2020 National Development Plan (NDP) by addressing impediments to a sustainable balance of payments position and economic growth. The NDP aims to foster conditions for continued strong and inclusive growth and poverty reduction through investment in infrastructure and social sectors, as well as the structural transformation and industrialization of the economy by the private sector. “The government’s budget deficit would converge to the WAEMU norm of 3 percent of GDP by 2019 to preserve public debt sustainability and support the regional international reserves pool. To this end, key program objectives are to contain current expenditure and mobilize additional revenues through broadening the tax base and further improving tax administration. “The program includes a comprehensive set of reforms aimed at enhancing public financial and debt management practices, which include: strengthening debt management; expanding the monitoring of public entities beyond the central government; containing fiscal risks emanating from some public enterprises in financial difficulty; restructuring public banks; and improving the business climate. The staff welcomes the authorities’ request for further technical assistance to support their efforts to improve the quality and dissemination of economic statistics. 23 Press Release No. 16/457 (11 October, 2016) (https://www.imf.org/en/News/Articles/2016/10/11/pr16457- IMF-reaches-staff-level-agreement-with-cote-divorie) 150 “With the implementation of these policies, Côte d’Ivoire will create fiscal space for more infrastructure investment and social spending, catalyze official and private financing, and build resilience to future economic shocks. Overall, this program will help the government continue building on the impressive achievements of the past four years and further strengthen the foundations for strong and inclusive growth and poverty reduction.� 151 ANNEX 4: ENVIRONMENT AND POVERTY/SOCIAL ANALYSIS TABLE Significant positive or Significant poverty, social or distributional 24 negative environment Prior actions effects positive or negative (yes/no/to be effects determined) (yes/no/to be determined) Pillar A - Professionalizing and formalizing the trucking industry Adoption by the Recipient of regulations (decrees Significant positive The professionalization of the trucking and/or ministerial orders) strengthening the training environment effects industry will result in the adoption of more system for road transport operators. [BF, CI] stringent criteria for access to the profession. Stakeholders affected negatively will include primarily informal truckers as well as individual and small operators that are unable to modernize, including their employees, in both Burkina Faso and Côte d’Ivoire. The reforms will likely result in loss of jobs for some or the inability of individual operators to continue in the trucking business. For purposes of applying WAEMU Regulation 14, and Significant positive Preventing overloading will affect the cost pursuant to the declaration by WAEMU infrastructure environment effects structure of operators that try to maximize and transport ministers in Cotonou on September 23, their truck load for each trip. Stakeholders 2016, adoption by the Recipient of measures for the affected negatively will include primarily (i) acquisition and refurbishment of truck weighing informal truckers as well as individual and equipment, and (ii) notification of increased sanctions small operators that are unable to for noncompliant operators. [BF, CI] modernize, including their employees, in both Burkina Faso and Côte d’Ivoire. Many of these informal, small and individual operators provide services with dilapidated and poorly maintained trucking fleets and will unable to operate. The reforms will likely result in loss of jobs for some or the inability of individual operators to continue in the trucking business. Pillar B - Modernizing the organization of the trucking market Introduction by the Recipient of a virtual freight To be determined. The virtual freight exchange that makes available information on exchange will open freight to operators, incoming freight. [BF] but access may be difficult for operators not formally registered and having no access to electronic means of communication Mutual recognition of inter-State consignment notes Significant positive by BF (BSTR) and CI (DUT) [Joint] environment effects 24 The matrix specifies, for each action, whether it applies to Burkina Faso [BF], Côte d’Ivoire [CI] or is a Joint Action [Joint]. 152 Signature by the Recipient and the Partner of a revised Significant positive bilateral road transport agreement (protocole environment effects d’accord) dated May 12, 2016. [Joint] Adoption by the Recipient of measures to support fleet Significant positive Access to renewal schemes will be possible renewal for compliant road transporters through environment effects only to formal operators. Small and provisions to lower the cost of vehicles (notably tax informal operators that do not manage to and customs duty exemptions). (BF) join interest economic groups or Adoption by the Recipient of measures to support fleet cooperative will not be able to access renewal for compliant road transporters, through facilities to modernize their trucks. provisions to facilitate access to credit. (CI) Strengthening by the Recipient of the technical Significant positive inspection of vehicles through the issuance of environment effects regulations, procedures or strategies. [BF; CI] Pillar C - Enhancing the competitiveness of maritime and inland gateways Adoption by the Recipient of a ministerial order To be determined but expected to be reactivating the Commission on Competitiveness of positive as the expected effect is lower Ivoirian Ports and commencement of meetings. [CI] port charges. Pillar D – Improving customs clearance Establishment by the Recipient of a pilot TIWP in support of Article 1 of the WTO’s Trade Facilitation Agreement. [CI] Development and launch by the Recipient of the electronic-based trade single window system. [BF] Strengthening by the Recipient’s customs Significant positive administration of the risk management system environment effects through (i) introduction of automated selectivity for customs controls; and (ii) the modernization of post- clearance audits (PCA) procedures. [BF, CI] Adoption by the Recipient of a regulatory framework (decrees and/or ministerial orders) defining the criteria and functioning of an Authorized Economic Operator (AEO) scheme. [CI] Improvement of the Recipient’s customs Stricter oversight will impact some informal administration by strengthening: (a) its internal clearing agents and agents that will lose procedures for customs controls; and (b) the oversight their license. of licensed customs brokers. (BF, CI) Pillar E – Facilitating transit 153 Signing of an agreement (protocole d’accord) dated Significant positive A significant reduction of the border April 28, 2016 by the Recipient’s and the Partner’s environment effects crossing time will impact negatively the customs administration of a pilot interconnection local populations which have businesses system allowing single transit declaration at the point linked to the needs of the truckers while of departure for the transit between the two staying at the border (accommodation, countries. [Joint] restaurants, shops, etc.). It will also reduce the activity of the clearing and forwarding agents located at the border due to the suppression of some customs procedures. 154 ANNEX 5: PROPOSED REVISION OF INITIAL RTFCC2 TRIGGERS Original Trigger Rationale for Revision Proposed Revised Prior Action A1 - Adoption of a regulatory Formulation change to simplify Adoption by the Recipient of framework (decrees and/or ministerial and align with regulatory reforms regulations (decrees and/or order) mutually elaborated between undertaken in both countries ministerial orders) strengthening the two countries defining (a) the the training system for road training curricula for road transport transport operators. (BF, CI) company managers and truck drivers, following best international practices (United Nations Conventions, and IRU, the world’s transport organization) and (b) the criteria and certification mechanism for the creation of private institutions providing training and issuing certificates of professional competence for the trucking industry (BF, CI) A3 - Application of Article 11.a of Formulation change to make the For purposes of applying WAEMU WAEMU Regulation 14 on truck axle measure broader and align with Regulation 14, and pursuant to load standards (BF, CI) the September 2016 decision of the declaration by WAEMU WAEMU ministers infrastructure and transport ministers in Cotonou on September 23, 2016, adoption by the Recipient of measures for the (i) acquisition and refurbishment of truck weighing equipment, and (ii) notification of increased sanctions for noncompliant operators. (BF, CI) B1 - Introduction in Burkina Faso of a The proposed revision reflects a Introduction by the Recipient of a virtual freight exchange that (a) is simplification of language of the virtual freight exchange that accessible only by compliant prior action makes available information on transporters, (b) is voluntary for both incoming freight. (BF) shippers and transporters, and (c) allows a competitive matching of transport services supply and demand (BF) B1 - Transition to electronic interstate Formulation change to specify Mutual recognition of interstate consignment notes and mutual the documents mutually consignment notes by the recognition by BF and CI (Joint) recognized by the two countries. Recipient and the Partner. BF The BSTR in Burkina Faso is (BSTR) and CI (DUT). already used in electronic form and the DUT in Côte d’Ivoire will Signature by the Recipient and be issued electronically as well. the Partner of a revised bilateral road transport agreement (protocole d’accord) dated May 12, 2016. BF (BSTR) and CI (DUT) (BF, CI) B2 - Establishment by the Ministry of Simplification of the measure to Adoption by the Recipient of Transport of a mechanism to support align with the different measures measures to support fleet 155 Original Trigger Rationale for Revision Proposed Revised Prior Action fleet renewal for compliant adopted in the two countries renewal for compliant road transporters, including (a) provisions to transporters, through provisions lower the cost of vehicles (notably tax to lower the cost of vehicles and customs duty exemptions); (b) (notably tax and customs duty provisions to facilitate access to credit; exemptions). (BF) and (c) accompanying measures (BF;CI) Adoption by the Recipient of measures to support fleet renewal for compliant road transporters, through provisions to facilitate access to credit. (CI) B2 - Revision of the technical Strengthening by the Recipient of inspection system and regulations for technical inspection of vehicles trucks to eliminate substandard through the regulations, vehicles (BF; CI) procedures or strategies. on the (BF; CI) C1 - Adoption of a ministerial order The measure is strengthened by Adoption by the Recipient of a reactivating the Commission on including the organization of first ministerial order reactivating the Competitiveness of Ivorian Ports (CI) meetings of this Commission. Commission on Competitiveness of Ivorian Ports and commencement of meetings. (CI) C1 - Revision of tariff structure and The recent decrease of n.a. practices of container terminals in containerized traffic resulting Burkina Faso to promote from the political trouble in containerization (BF) Burkina Faso makes it difficult to consider a revision of tariff at inland container terminals in the short run. Other measures to promote containerization have been discussed with stakeholders (for example, establishment of a guarantee fund to ease the conditions imposed by shipping lines for the return of containers). However, these will take some time to develop and the TA projects being prepared in both countries are more adapted than a DPO to provide support. D1 - Establishment of TIWP in line with Progress toward the Development and launch by the Article 1 of the WTO’s Trade development and launch of the Recipient of the electronic-based Facilitation Agreement, based on the virtual trade single window trade single window system. (BF) WAEMU template and best SYLVIE in Burkina Faso represents international practices (for example, an important change, which Establishment by the Recipient of WCO, World Bank) (BF, CI) includes elements of a TIWP but a pilot TIWP in support of Article goes beyond in terms of 1 of the WTO’s Trade Facilitation streamlining trade procedures. Agreement. (CI) This justifies modifying the prior action for Burkina Faso, while the measure for Côte d’Ivoire is left unchanged (it is specified that the TIWP will be a pilot to reflect 156 Original Trigger Rationale for Revision Proposed Revised Prior Action continuing IFC TA in FY17 to improve it). D3 - Transposition of the revised The revised WAEMU regulation in n.a. WAEMU regulation governing the question has not been adopted at profession of customs brokers (BF, CI) the regional level and is unlikely to be before the establishment of a common customs code at the ECOWAS level. This measure should therefore be dropped. D2 - Strengthening by the customs Formulation change to clarify the Strengthening by the Recipient’s administration of (a) risk management measure customs administration of the through the interface of the traders’ risk management system risk profiles database with the customs through: (i) automated selectivity management system) and (b) PCAs for customs controls and (ii) through the adoption of a PCA strategy modernization of PCAs and manual of procedures (BF, CI) procedures. [BF, CI] D2 - Adoption and implementation of a Formulation change to clarify the Adoption by the Recipient of a legal and regulatory framework measure regulatory framework (decrees defining the criteria and functioning of and/or ministerial orders) an AEO scheme (CI) defining the criteria and functioning of an AEO scheme. (CI) E1 - Interconnection by the two Formulation change to reflect the Improvement of the Recipient’s customs administrations of their pilot nature of the customs administration by information systems (Joint) interconnection that both strengthening: (i) its internal countries’ customs procedures for customs control; administration will agree to and (ii) the oversight of licensed adopt, paving the way for the customs brokers (BF,CI). implementation of the broader regional interconnection solution Signing of an agreement which will be supported through (protocol d’accord) dated April the World Bank’s TA projects 28, 2016 by the Recipient’s and Partner’s customs administration of a pilot interconnection system allowing single transit declaration at the point of departure for transit between the two countries. 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