Document of The World Bank FOROFFICIALUSEONLY ReportNo. 41413-GM MEMORANDUMAND RECOMMENDATION OF THE PRESIDENTOF THE INTERNATIONAL DEVELOPMENT ASSOCIATION TO THE EXECUTIVE DIRECTORS ONASSISTANCETO THE REPUBLICOFTHE GAMBIA UNDERTHE ENHANCEDHEAVILY INDEBTEDPOORCOUNTRIES (HIPC) DEBTINITIATIVE November 28,2007 PovertyReductionandEconomic Management Africa Region This document has a restricted distribution and may be usedby recipients only inthe performance o f their official duties. Its contents mav not otherwise be disclosed without World Bank authorization THEGAMBIA CurrencyEquivalents (Exchange Rate Effective as o f November 28,2007) Currency Unit =Dalasi US$l.OO =20.50 GovernmentFiscalYear January 1-December 31 Weights andMeasures Metric System ABBREVIATIONAND ACRONYMS AfDB Afncan Development Bank AfDF African Development Fund APR Annual ProgressReports ASPA Agribusiness Service PlanAssociation BADEA Arab Bank for Economic Development inAfrica CAS Country Assistance Strategy CBG Central Bank o f The Gambia CDD Community DrivenDevelopment CET Common External Tariff CPIA Country Performance and Institutional Assessment CSD Central Statistics Department DeMPA Debt Management Performance Assessment tool DMS DebtManagement Strategy DSA Debt Sustainability Analysis DOSFEA Department o f State for Finance and Economic Affairs DTIS Diagnostic Trade Integration Study ECOWAS Economic Community o f West African States EFA FTI Education- for- All Fast Track Initiative EPA Economic Partnership Agreement EU EuropeanUnion FDI ForeignDirect Investment GGC Gambia Groundnut Corporation GAMCO Gambian Agricultural MarketingCorporation GBOS Gambia Bureau o f Statistics GRA Gambia Revenue Authority GDP Gross Domestic Product HIPC Heavily IndebtedPoor Country HILEC High-LevelEconomic Committee IDA InternationalDevelopment Association IFMIS Integrated Financial Management Information System IMF InternationalMonetary Fund IFAD InternationalFundfor Agricultural Development IsDB Islamic Development Bank JAS Joint Assistance Strategy JSAN Joint StaffAdvisory Note JSA Joint Staff Assessment LIC Low Income Countries FOROFFICIAL USE ONLY MDRI Multilateral Debt Relief Initiative MICS MultipleIndicator Cluster Survey NADA National Agricultural Development Agency NPC National Planning Commission N P V Net Present Value OFID OPEC Fundfor International Development P D U Public Debt Unit PER Public ExpenditureReview P F M Public Financial Management PRE Poverty Reducing Expenditures PRER Poverty Reducing Expenditure Reports PRGF Poverty Reduction andGrowth Facility PRSP Poverty Reduction Strategy Paper PTC Primary Teacher's Certificate PURA Public Utilities Regulatory Authority SDR Special Drawing Rights SMP Staff MonitoredProgram SSA Sub-Saharan Africa WAIFEM West African Institute for Financial and Economic Management Vice President: Obiageli K. Ezekwesili Country Director: Madani M.Tall Sector Director: Sudhir Shetty Acting Director PRMED BrianPinto Sector Manager: Antonella Bassani Task Team Leaders: Hoon Sahib Soh andThor-Jurgen Loberg This document has a restricted distribution and may be used by recipients only in the performance o f their official duties. Its contents may not be otherwise disclosed without World Bank authorization. MEMORANDUMAND RECOMMENDATION OF THE PRESIDENT OF THE INTERNATIONAL DEVELOPMENT ASSOCIATION TO THE EXECUTIVE DIRECTORS ONASSISTANCETO THE REPUBLIC OF THE GAMBIA UNDER THE ENHANCED HIPC DEBT INITIATIVE TABLE OF CONTENTS I. BACKGROUND.................................................................................................... 1 11. FULFILLMENTOF COMPLETIONPOINT CONDITIONS.............................. 2 111. REVISIONOFDATA AND CONFIRMATIONOF THE RELIEFAPPROVED UNDERTHE ENHANCEDHIPC INITIATIVE................................................... 3 IV. IDA'S DELIVERYOF ASSISTANCE UNDER THE ENHANCEDHIPC INITIATIVE................................................... 4 V. IDA'S DELIVERYOF ASSISTANCEUNDERMDRI....................................... 4 VI. PROSPECTSFORLONG-TERMDEBT SUSTAINABILITYUNDERTHE ENHANCEDHIPC INITIATIVEAND MDRI..................................................... 5 VII. SATISFACTORYFINANCINGASSURANCES FROMTHE GAMBIA'S CREDITORS................................................................ 7 VIII. RISKS..................................................................................................................... 7 Ix. RECOMMENDATION.......................................................................................... 7 List of Figures Figure 1.Debt Serviceto IDA after HIPCReliefandMDRI, 2007-45 ............................. 5 List of Annexes Annex 1The GambiaIDA CreditsSubjectto Debt ServiceReductionunderthe EnhancedHeavilyIndebtedPoor Countries Initiative............................................ 8 Annex 2 The GambiaScheduleofDebt ServiceReductionunderthe EnhancedHeavily IndebtedPoor CountriesInitiative,CalendarYear As Approvedat the Decision Point........................................................................................................................ 9 Annex 3 The GambiaRevisedSchedule o fDebt ServiceReductionunder the Enhanced HeavilyIndebtedPoor CountriesInitiative,CalendarYear ................................. 10 MEMORANDUMAND RECOMMENDATION OF THE PRESIDENT OF THE INTERNATIONAL DEVELOPMENT ASSOCIATION TO THE EXECUTIVE DIRECTORS ONASSISTANCE TO THE REPUBLIC OF THE GAMBIA UNDER THE ENHANCED HIPC DEBT INITIATIVE 1. IsubmitforyourapprovalthefollowingMemorandumandRecommendationon the assistanceto be provided to the Republic o f The Gambia under the Enhanced Heavily IndebtedPoor Countries (HIPC) DebtInitiativewith respect to the debt owedby this country to the International Development Association (IDA). This report andits recommendationsummarize progress made on fulfilling the criteria for reachingthe completionpoint under the Enhanced HIPC Initiative as agreed by the Boards o fthe International Monetary Fund(IMF) and IDA inDecember 2000,' and confirms the debt relief to be provided irrevocably with respect to the debt owed to IDA. Uponreaching the completion point, The Gambia will become eligible for debt relief from IDA under the Multilateral Debt Relief Initiative (MDRI). 2. This document complements thejoint IDA-IMFpaper entitled "Republic of The Gambia: Enhanced Heavily Indebted Poor Countries Initiative Completion Point Document and Multilateral Debt ReliefInitiative," concurrently submittedwith this document. The completionpoint document presents: (i) Gambia's progress in The fulfillingthe triggers ofthe completionpoint underthe EnhancedHIPC Initiative; (ii) an updateo fThe Gambia's reconciledpublic external debt and the debt relief committed at the decisionpoint under the Enhanced HIPC Initiative; (iii) status o fcreditor the participation since decisionpoint; (iv) the provision o fMDRIrelief by IDA, the IMF, and the African Development Fund(AfDF); and (v) prospects for the country's long term debt sustainability. I.BACKGROUND 3. The Gambia reached the decision point under the Enhanced HIPC Initiative in December 2000. Based on the debt sustainability analysis (DSA) presentedinthe decision point document, debt relief under the Enhanced HIPC Initiative amounted to US$66.6 million innet present value (NPV) terms as o f end 1999. This reducedThe Gambia's NPV of debt after full application o f traditional debt relief from US$244.9 million to US$178.2 million. The total relief corresponded to a common reduction factor o f 27.2 percent on the NPV o f debt outstanding as o f end-December 1999 for all creditors, after the application of traditional debt relief. Debtreliefattributed to multilateral creditors amounted to US$49.2 million (74 percent o ftotal relief) inNFV terms. 4. At the decisionpoint, total debt from IDA amounted to US$81.9 million in 1999 NPV terms. Total assistancefrom IDAunder the Enhanced HIPC Initiative agreed at the decision point was approved inthe amount o fUS$22.3 million inNPV terms. Interim 1( 6The Gambia: Decision Point Documentfor the EnhancedHeavily IndebtedPoor Countries Initiative", IDA," 7413 (November28,2000) andEBS/00/242(November 28,2000). 2 debt reliefwas to beprovided beginninginJanuary 2001 and continue untilthe country reached the completionpoint or untilthe amount o f interimrelief reached one-third o f the total NPV assistance. The Executive Directors approved the provision o finterimdebt relief througha reduction o f 50 percent ofthe debt service falling due after the decision point on disbursed and outstanding IDA debt as o f end-December 1999. Annex 2 presents the debt service reduction schedule approved by ExecutiveDirectors at the time o f the decision point. 11. FULFILLMENT OF COMPLETION POINT CONDITIONS 5. Inaccordance with the decision ofthe Executive Directors ofthe IMFandIDAat the decision point, The Gambia would reach its floating completion point under the Enhanced HIPC framework when a set o f agreed conditions were met. The conditions for reaching the floating completionpoint, as set out inBox 7 o fthe decisionpoint document, comprised: (i) preparation o f a full PRSP and satisfactory implementationfor at least one year, and improvement o fthe poverty database and monitoring capacity; (ii) continued maintenance o f macroeconomic stability, as evidenced by satisfactory implementation o fthe PRGF-supported program; (iii) progress instrengthening public expenditure management, indicatedby the issuance o f government budget execution and povertyexpenditure reports; (iv) use o fHIPC interimrelief inaccordance with annual budgets;and (v) keyreforms inthe areaso f education, health andprivate sector development. 6. The staffs o fthe Bank andthe IMF are ofthe view that The Gambiahas made sufficient progress to reach the completion point by fully implementing nine out of the eleven floating completion point triggers and partially implementingthe remainingtwo triggers. Since the decisionpoint, the government has prepared two PRSPs, which were discussed bythe Board of IDA inJuly 2002 and July 2007, respectively. Implementation of the PRSP has been satisfactory, as evidenced by two Annual Progress Reports (APR), the second PRSP, which provides a broad assessmento fthe implementationo f the first PRSP, and the accompanying Joint Staff Advisory Notes (JSAN). The government has issued annual reports on budget execution and poverty-reducing expenditures, and made use of the budgetarysavings from HIPC debt relief inaccordance with the annual budgets approved by the Cabinet. Three out o fthe four social sector reforms have been fully implemented, inaddition to the structural reform concerningthe establishment of a functional multi-sector regulatory agency. 7. Regardingthe completion point trigger on macroeconomic stability, The Gambia successfully implemented a Staff Monitored Program from October 2005 to March 2006 and a new PRGF-supported program was approved by the IMF BoardinFebruary2007. The first reviewwas successfully concludedinAugust 2007. The IMFBoard will discuss the completionpoint document concurrently with their staff report for the second review o f the ongoing PRGF-supported program. Underthat program, robust growth and low inflation have been sustained through good policy implementation, particularly strong fiscal performance. As part o f the IMF's second review, IMF staffs have agreed with the authorities that a significant share o fthe proceeds from the recent sale o f GAMTEL, the former publicly-owned telecommunication enterprise, will be allocated 3 for expenditures in2008 and 2009. It i s also envisaged that part o f those increased expenditures will go towards the security sector and infrastructure projects. 8. Two triggers were partially completed. One trigger requiredan increase o f five percent annually inthe percentage o fbirths attended by skilled healthpersonnel. This percentage increased significantly from the baseline 44 percent in 1998 to 56 percent in 2005, but it fell short o f 62 percent as requiredby the trigger. However, progress has been substantial, as evidenced by the fact that the share o f assisted births inThe Gambia i s now similar to or better than comparable Sub-Saharan African countries. Moreover, the staffs are o f the view that the target percentages were unrealisticallyhigh. 9. The trigger concerningbringingto the point o f sale the public groundnut processing plants was partially met. The government advertised requests for bids between 2005 and 2006 but there was only one local bidder, which the government rejected on the grounds that it was not sufficiently qualified and that it would be detrimentalto the sector. Inresponse, the government hasprepared a comprehensive sector reform strategy, or "roadmap," inconsultation with keypublic and private sector stakeholders, includingthe World Bank, the IMF andthe EuropeanUnion (EU). This roadmap outlines plans to filly liberalize the groundnut sector and introduce private management to the groundnut processing plants under a performance-based contract. Thiswouldrevitalize the sector and eventuallyattract established international investors. The roadmap was approved bythe Cabinet inJune 2007 andkey elements have already beenimplemented, including allowing free entry o foperators andtransferring management o fthe sector to an association o fpublic andprivate stakeholders. The staffs broadly support the roadmap's strategic focus on liberalizing the sector. Moreover, IDA andthe EUplan to support the implementation o fthe roadmap through investment projects and budget support. 111. REVISIONOFDATA AND CONFIRMATION OF THE RELIEF APPROVED UNDERTHE ENHANCEDHIPC INITIATIVE 10. Based on additional informationreceived from creditors, the updatedDSA has resulted ina revision o fthe nominal stock o f debt at end-December 1999 from US$452.6 millionto US$444.7 million and the NPV of debt, after the deliveryo ftraditional debt relief, from US$244.9 million to US$240.7 million.* The NPV o f debt owedto multilateral creditors was reduced to US$180.3 million from the US$180.8 million estimated inthe decisionpoint document. The NPV o f debt owed to IDA at end-1999 amounted to US$81.9 million (US$172.7 million innominal terms) andwas revised upwards by US$O.1million. 11. The revision o fthe total nominal stock o fdebt, together with revised estimates for exportsY3implies a decrease inthe requiredHIPC assistance. Revisions to debt and The revisions relate to new information on the amount and type o f external debt, and revision in the outstanding debt with multilateral and bilateral creditors. Estimates o f exports o f goods and services used to evaluate HIPC assistance at the decision point have also been revised, from an average o fUS$118.8 millionper year over 1997-1999 to US$119.4 million. 4 export data together would result ina downward revision o fHIPC assistanceby US$5.0 million inNPV terms, from US$66.6 at the decision point to US$61.7 million. 12. However, for countries that reachedthe decision point prior to the adoptionby the Boards o f IDA and the Fundin2002 o fnew guidelines on informationreporting, the amount o f enhanced HIPC assistance required at the decisionpoint cannot be adjusted downward without the consent o f the country authorities. Inthis case, the government has not consented to the revision, which would have changed the common reduction factor for each creditor by less than two percent. Therefore, the amount o f IDA assistanceinNPV terms as approved at decision point remains ~nchanged.~ IV. IDA'S DELIVERYOF ASSISTANCE UNDERTHE ENHANCEDHIPCINITIATIVE 13. Inaccordance withthe guidelinesapprovedbythe ExecutiveDirectors onthe provision o f HIPC assistanceY6the delivery mechanism approved at the decision point requiredIDAto provide debt relief o fUS$22.3 millioninNPV terms. Ofthis amount, IDAhas already deliveredUS$S.Omillion inNPVterms (US$9.1 million innominal terms) as interimrelief, correspondingto a reduction of 50 percent of debt service falling due over this period. As IDAinterimreliefreached the ceiling of one-third o ftotal NPV o f HIPC relieffrom IDA at end-20047, and therefore prior to completion point, the debt relief delivery schedule would needto be revised. On reaching the completion point, the HIPC debt relief would equal an average o f 50 percent o f debt service due on debt disbursedandoutstanding at end-1999, provided through February2016 (Figure 1). As a result o fthe schedule adjustment, the nominal amount o f debt relief as approved at decisionpoint would be increased from US$31.8 million (Annex 2) to US$35.9 million, but the NPV amount wouldremainat US$22.3 million. Annex 3 presentsthe revised debt service reduction schedule. Providedthat Executive Directors agree with the revised schedule, andsubject to satisfactory assurances o f debt relief from The Gambia's other creditors at the completionpoint underthe Enhanced HIPC Initiative, the debt service reduction for the remainingperiod up to February2016 would become irrevocable. V. IDA'S DELIVERYOFASSISTANCE UNDERMDRI 14. IfExecutiveDirectorsapprove the completionpointfor TheGambiaunderthe EnhancedHIPC Initiative, The Gambia will also qualify for additional debt reliefunder the Multilateral DebtReliefInitiative (MDRI). MDRIdebt relief (net o fHIPC "Information Reporting inthe Context o fHIPC Initiative Assistance", approved by the members o f the Executive Board o f the IMF(EBS/02/36) and IDA (IDA/SecM2002-0131), March4,2002. 'Note that the original debt service reduction schedule would require revision due to IDA interimrelief having reached the one-third limit prior to completion point. "Heavily Indebted Poor Countries (HIPC) Initiative: Note on Modalities for Implementing HIPC Debt Relief Under the Enhanced Framework," IDA/R2000-4, January 10,2000. Interimrelief for The Gambia was terminated inMarch 2005. All interim relief delivered counts towards the total amount o f HIPC reliefinNPV terms and this i s reflected inthe new IDA HIPC debt delivery schedule, 5 assistance) fiom IDA, AfDF and the IMFwould result intotal debt service savings o fUS$373.5 million over aperiod o f 43 years. 15. IDAwillprovide debtreliefunderthe MDRIthrough adebt stock cancellation ofdebt disbursed before end-2003 and still outstanding on December 31,2007.' Debt reliefunder the MDRIwould cover allremainingdebt service obligations oneligible IDA creditbalances through maturity, afier any debt service reliefavailable under the Enhanced HIPC Initiati~e.~ IDAwould provide MDRIdebt forgiveness by irrevocablycanceling the borrower's payment obligations under the eligible credits. The total reduction o f The Gambia's debt stock owed to IDAwould be US$206.4 million, ofwhich a reductiono fUS$183.4 million would be due to the implementation o f MDRIandtheremainderto HIPC assistance. Debt cancellation underthe MDRIfromIDAwould result inaverage annual debt service savings (net of H P C assistance) for The Gambia o fUS$4.6 millionbetween2008 and 2011and US$6.1 millionover the next 30 years. Total debt service savings from MDRIwould amount to US$201.8 million(or SDR134.1 million). Figure 1illustrates the impact o fMDRIonprojecteddebt service due to IDA as of end-December 2006. Figure1.Debt Service to IDA after HIPCReliefandMDRI, 2007-45 (Inmillions ofUSdollars) 14 12 10 8 6 4 2 - Before relief After HIPCrelief - - A f t e r M D R I VI. PROSPECTSFORLONG-TERMDEBT SUSTAINABILITYUNDERTHE ENHANCEDHIPCINITIATIVEAND MDRI 16. Based on full debt data reconciliation, The Gambia's nominal stock o f external debt reached US$677 millionat end-2006, compared with US$453 million at end-1999. After full delivery o f the assistance committedunder the EnhancedHIPC Initiative at the decisionpoint, The Gambia's external debt i s expectedto fall from millioninNPV terms to million at end-2007, *See, InternationalDevelopment Association, "The Multilateral Debt Relief Initiative: ImplementationModalities for IDA," November, 18,2005, http://siteresources.worldbank.org/IDA/Reso~~ces/MDRT.pdf. See "IDA'SImplementation o f the Multilateral Debt ReliefInitiative", March 14,2006. 6 equivalent to 236 percent of exports, comparedwith a decisionpoint projection o f 137 percent." The NPV o f debt-to-export ratio i s projectedto remain above the 150 percent threshold after Enhanced HIPC relief, althoughit falls steadily beneath the threshold by 2026. 17. Fulldeliveryofdebtreliefunder the EnhancedHIPCInitiative andthe MDRIwould significantly reduce The Gambia's external public debt. InNPV terms, the stock o f debt would be million at end-20 projectionperiod. 18. Although The Gambia's debt burdenwould be significantly reduced, the country will remain at highrisk o f debt distress after HIPC and MDRIrelief. The updateddebt sustainability analysis (DSA),basedonthejoint debt sustainability framework for low-income countries, estimates that the NPV ofdebt-to-exports ratio would fall onlyto 107percent after the full deliveryofH P C and MDRIassistance, a levelwhichis above the policy-dependent debtburdenthreshold of 100 percent." Furthermore, the ratio i s expected to remain above the threshold throughout much o f the projectionperiod. Sensitivity analysis shows that the ratio would deteriorate significantly inthe event o f large shocks to exports and substantial shortfalls ingrant financing. 19. Giventhe highrisk o fdebt distress, the staffs conducted an extensive analysis o fthe country's eligibility for exceptional topping-up under the Enhanced HIPC Initiative. The conclusion was that The Gambia does not meet the conditions required for exceptional topping-up giventhat the deteriorationo f the debt burdenindicators couldnot be primarily attributedto exogenous factors.'* Inorder to protect against moralhazard, the guidelines onexceptionaltopping-up approvedbythe IDA andIMFBoardsmake it clear that policy-inducedincreases inpost-debt reliefdebt burdens cannot be usedas grounds for topping-up. The continuing risk o f debt distress, while not a sufficient justification for topping-up, does underscore the importance o f continued fiscal prudence, policies to support broad-based growth and export diversification, sustained donor support, and improved debt management. loThe deterioration of the NPV of debt-to-export ratio is primarily attributable to shortfalls in the growth of export volumes, higher than anticipated new borrowing, lower concessionality of new borrowing, and unanticipatedchanges in the exchangeand discount rates. 'IThe HIPC completionpoint document contains both a HIPC DSA and a LIC DSA.A counhy's debt sustainability i s assessed using the low income countries (LIC) DSA,whereas the HIPC DSA is mainly a tool to calculate debt reliefunder the HIPC Initiative. Compared to the HIPC DSA, the LIC DSA is more forward-lookingand appliespolicy-dependentdebt burdenthresholds. While the two DSAsshare the same underlyingassumptions on the baselinemacroeconomic assumptions and debt data, differences in methodologyresult indifferent estimatesofdebtburden indicators. Significantly highernewborrowing and lower exportvolumes determined to a large extent the deterioration of the debt-burden ratios. Neitherof these factorswas determinedto be exogenous. 7 VII. SATISFACTORY FINANCINGASSURANCES FROMTHE GAMBIA'S CREDITORS 20. The Gambia has receivedfinancing assurances o fparticipationinthe Enhanced HIPC Initiative from creditors representingabout 81percent o fthe NPV o f HIPC assistanceestimated at the decision point. Most multilateral and Paris Club creditors have confirmed their participation inthe HIPC Initiative and the authorities are working toward reaching agreements with all remainingcreditors. VIII. RISKS 21, The main risks affecting this operation are: (i) increased external borrowing inthe post-completion point period that could undermine debt sustainability andjeopardize macroeconomic stability, long-term growth and poverty reduction; and (ii) slippages in structural and governance reforms that might discourage private investments and inflows o f official resources, particularly with respect to the government's comprehensive sector reform strategy to revitalize the groundnut sector. These risks will be mitigated by continuedclose monitoring o f developments infiscal outcomes, the balance o fpayments and structural reforms inthe context o f annual development policy operations, as well as by amix o f financing consistent with loweringthe risk of debt distress. IX. RECOMMENDATION 22. Inview ofthe above, Irecommendthat the Executive Directors endorsethe staff assessment contained inthe completion point document concerning The Gambia's filfillment o fthe floating completion point conditions under the Enhanced HIPC Initiative, and that debt relief on debt owed to IDA by The Gambia be provided unconditionally. Ifurther recommendthat the Executive Directors approve the revised schedule o f IDA debt service reduction inthe amount and manner proposed inthis document. Robert B.Zoellick President by: Juan Jose Daboub Managing Director Washington, D.C. November 28,2007 Annex 1 The Gambia IDA Credits Subjectto Debt Service Reduction underthe EnhancedHeavilyIndebtedPoorCountriesInitiative Credit ProjectName Currency Balanceat December 31, 1999 Inoriginal currency InUSDequivalent 1871 BATHURST PORT USD 1,361,106 1,361,106 1872 BATHURST PORT USD 1,476,000 1,476,000 3330 AGRICULTURAL DEVELOPMENT USD 882,896 882,896 6020 INFRASTRUCTUREAND TOURISM USD 3,120,000 3,120,000 6440 RURAL DEVELOPMENT USD 3,259,500 3,259,500 7920 EDUCATION USD 4,702,500 4,702,500 8140 RURAL AND URBANENTERPRISES USD 2,565,000 2,565,000 8970 HIGHWAY MAINTENANCE USD 4,350,000 4,350,000 11870 ENERGY SDR 1,138,270 1,562,287 12660 SECONDBANJUL PORT SDR 5,457,500 7,490,473 14430 URBANMANAGEMENT & DEV SDR 10,212,585 14,016,875 14760 2ND AGRICULTURAL DEVELOPMENT SDR 6,241,267 8,566,201 16820 2ND HIGHWAY MAINTENANCE SDR 5,089,112 6,984,857 17240 WATER & ELECTRICITY SDR 5,978,176 8,205,107 17300 STRUCTURALADJUSTMENT CREDIT SDR 4,171,000 5,724,739 17600 NATIONAL HEALTH DEV. SDR 4,422,156 6,069,454 19750 ENTERPRISEDEVELOPMENT SDR 2,155,196 2,958,028 20320 2ND STRUCTURALADJUSTMENT SDR 17,721,000 24,322,250 21410 WOMEN INDEVELOPMENT SDR 4,973,894 6,826,719 21420 SECONDEDUCATION SECTOR SDR 10,911,413 14,976,023 24530 AGRICULTURAL SERVICES SDR 8,799,642 12,077,597 25540 PUBLIC WORKS & CAPACITY BLDG SDR 7,898,847 10,841,247 26020 CAPACITY BLDG FORENVIRONMENT SDR 1,569,962 2,154,789 30540 HEALTH, POPULATION& NUTRITION SDR 1,603,720 2,201,122 31280 THIRD EDUCATION SECTOR SDR 1,198,3 15 1,644,699 31760 POVERTYALLEVIATION & CAP BLDG SDR 1,034,427 1,419,761 A0220 STRUCTURALADJUSTMENT CREDIT SDR 9,457,000 12,979,827 TOTAL 172,739,057 Source:World Bank, LoanAccounting Department 9 Annex 2 The Gambia Schedule ofDebt Service Reduction underthe EnhancedHeavily IndebtedPoor Countries Initiative, CalendarYear As Approved at the DecisionPoint Amount to be reduced CalendarYear (Inthousands ofUS.dollars) TOTAL 31,809 2001 1,927 2002 1,966 2003 2,117 2004 2,355 2005 2,461 2006 2,593 2007 2,845 2008 2,854 2009 3,016 2010 3,229 201I 3,317 2012 3,130 Source: WorldBank, Loan Accounting Department and staff estimates. 10 Annex 3 The Gambia Revised Schedule o f Debt Service Reduction under the Enhanced Heavily IndebtedPoor Countries Initiative, Calendar Year Amount to be reduced Calendar Year (Inthousands ofU.S. dollars) TOTAL 35,929 2001 1,927 2002 1,966 2003 2,117 2004 2,355 2005 717 2006 2007 2008 2,854 2009 3,016 2010 3,229 201I 3,317 2012 3,296 2013 3,395 2014 3,503 2015 3,479 2016 758 2017 2018 2019 2020 Source: WorldBank, Loan Accounting Department and staff estimates.