For Official Use Only CLR Review Independent Evaluation Group 1. CPS Data Country: Solomon Islands CPS Year: FY13 CPS Period: FY13 – FY17 CLR Period: FY13-FY17 Date of this review: July 23, 2018 2. Ratings CLR Rating IEG Rating Development Outcome: Satisfactory Moderately Satisfactory WBG Performance: Fair Good 3. Executive Summary i. This review of the Solomon Islands Completion and Learning Review (CLR) of the World Bank Group’s (WBG)1 Country Partnership Strategy (CPS) covers the CPS period, FY13-FY17, and the Performance and Learning Review (PLR) of August 2016. This is the first CPS for Solomon Islands following an Interim Strategy Note (ISN) in 2010. ii. Solomon Islands is a small, remote archipelago in the South Pacific, with a population of 599,419 in 2016. It is a lower-middle-income country with a GNI per capita of US$1,880 in 2016. Between 2013 and 2016, its economy grew at an annual average rate of 2.8 percent while population grew at an annual average rate of 2.1 percent. Economic growth has been driven mostly by logging, services, and agriculture. Solomon is classified as a Fragile and Conflict-Affected State (FCS).2 The poverty head count ratio using the national poverty line was 12.7 percent in 2013, with a quarter of the population living below US$1.90 a day (2011 PPP). The last estimate for the Gini index was 37 in 2013 (a decline from 46 in 2005). Solomon Islands ranked 156 of 188 countries in the 2015 Human Development Index (HDI), putting it in the low human development category. iii. The CPS pillars and objectives were broadly aligned with the government’s National Development Strategy (NDS), 2011-2020 and the NDS, 2016-2035, launched in April 2016 by the new government elected in 2014. The CPS program focused on two broad themes (or focus areas): (i) strengthening economic resiliency, and (ii) improving service provision. Two cross- cutting policy areas of embedding institutional resilience and addressing gender inequalities were envisaged to cut across the two broad themes. The CPS sought to consolidate gains made under the ISN, and build on WBG’s expertise and experience in other fragile and conflict -affected environments. iv. At the beginning of the CPS period, lending commitments were $19 million consisting of six operations in the form of five Investment Project Financing (IPF), including one Additional 1 MIGA was not part of the CPS. 2 Conflict in the Solomon Islands resulted from inequitable distribution of natural resources, land disputes, and frustration with local-center relations—including poor service delivery and insufficient infrastructure spending—which combined to undermine national cohesion. Civil conflict broke out in 1998 and did not abate until external forces restored peace in 2003. CLR Reviewed by Panel Reviewed by CLR Review Manager/Coordinator Juan José Fernández-Ansola Lev Freinkman, Pablo Fajnzylber IEGEC Consultant IEGEC Consultant Manager, IEGEC Takatoshi Kamezawa Lourdes Pagaran Senior Evaluation Officer, IEGEC CLRR Coordinator, IEGEC For Official Use Only CLR Review 2 Independent Evaluation Group Financing, and one Development Policy Financing (DPF). During the CPS period, new lending commitments amounted to $78.8 million, higher than originally planned ($45 million). New lending commitments comprised nine operations in the form of six IPFs —including two additional Financing, and one regional operation—and two DPFs, covering macro, trade and investment, environment and natural resources, rural development, and energy and extractives. Energy and extractives accounted for 60 percent of new commitments. IDA allocation for Solomon Islands leveraged financing from the regional IDA program and IDA’s Crisis Response Window (CRW), and from other development partners (co-financing and parallel financing). A stand-alone DPF (FY15) responded to the consequences of the April 2014 floods—in addition to addressing fiscal issues and private sector investment. During the CPS period, twelve trust-funded activities (TFs) were approved for a total of US$35.2 million, complementing IDA operations in rural development, community resilience to climate change and disaster risk, and energy. During the CPS period, IFC made a total net commitment of US$14 million to two companies in the fishing industry. IFC also approved new advisory service projects in mobile banking, the fishing industry, investment climate, and business taxation amounting to US$8.2 million of IFC funds. v. IEG rates the CPS development outcome as Moderately Satisfactory. Of the ten objectives, six were rated Achieved or Mostly Achieved, and four Partially Achieved or Not Achieved. Under Focus Area I, there was substantial progress in enhancing resilience to climate change, improving access to and reduced costs of ICT services, increasing production capacity in the fishing industry, and improving efficiency of expenditure management. The deterioration of the fiscal stance in 2017 indicates that progress in this area needs to be consolidated further. There was limited progress in improving the reliability and efficiency of energy supply and promoting development of agricultural commercialization among small farmers; and little progress in strengthening the regulatory framework of the mining industry. Under Focus Area II, the program contributed to increasing access to infrastructure and services in rural communities, and access to employment opportunities for the urban population. However, there was limited progress in improving government support for establishing functioning local justice mechanisms. vi. On balance, IEG rates WBG performance as Good. The CPS addressed key challenges facing the country, and was congruent with the government’s national development strategy and aligned with the WBG’s twin corporate goals. Coming after a two-year Interim Strategy Note, however, the original program design was not sufficiently selective—with 13 objectives and 24 indicators—in the context of a fragile state with a constrained administrative capacity. ASA was broadly aligned with the planned program but actual delivery did not cover key areas of the program, such as energy. The CPS and PLR appropriately identified risks, but the WBG could not adequately manage the risks due to weak implementation capacity, and led to implementation difficulties, particularly in rural development and energy. Moreover, macroeconomic risks have not been mitigated well through IMF dialogue as expected under the WBG program. In fact, risks have increased as the budget deficit widened in 2017. Portfolio performance at exit was better on average than the East Asia and Pacific (EAP) region and the Bank averages. The scaling up of the lending program to 10 operations in 2017 (from six operations in 2013), had implications on the active portfolio performance. During the CPS period, the active portfolio showed signs of deterioration as measured by the percentage of projects at risk (by number of projects and commitment volume) compared to the EAP and Bank averages. At the PLR, the Bank demonstrated flexibility by responding appropriately to the flooding in 2014 through a DPO operation, and by consolidating the number of objectives (from 13 to 10) and indicators (from 24 to 18), and linking them more directly to WBG interventions. Still, adjustments were not sufficient to correct the original design shortcomings. Overall, there was good synergy between the Bank and IFC which produced good results in ICT and fisheries. Close collaboration with other donors allowed the WBG to work in areas where it has comparative advantage and leveraged IDA resources through co-financing and parallel financing in key areas. There were no Inspection Panel cases filed during the CPS period. While there were two complaints to INT on fiduciary issues, these were not turned to cases. For Official Use Only CLR Review 3 Independent Evaluation Group vii. The CLR contains relevant lessons: (i) project preparation and implementation were affected by low technical capacity, lack of knowledge of fiduciary procedures, geographic dispersion, limited Bank supervision and rotation of task team leaders, suggesting the need for greater efforts to ensure project readiness before implementation begins; (ii) client capacity constraints requires Bank support to help the government adapt to recent innovations and changes in Bank engagement modalities (for example, on procurement and environmental and social framework); (iii) in community-driven development (CDD) projects, such as the Rural Development Project, simplified implementation procedures and central technical support would help mitigate the challenges of service delivery in remote rural areas and outer islands; (iv) the WBG should explore options for consolidating community based investment activities in the future; (v) communication is vital to strengthen project ownership and participation; (vi) land acquisition and land use arrangements can delay implementation of investment projects if not conducted properly; (vii) for WBG engagement in the mining sector to have impact, a strong government champion is required; and (viii) budget support to fragile states needs to be a key element of a package that includes evidence-based policy dialogue, analytical work, and technical assistance and capacity building activities. viii. IEG adds the following lessons: • For countries transitioning from fragility to development, scaling up the lending portfolio without the accompanying increase in administrative and implementation capacity could undermine achievement of sustainable results. In the case of Solomon Islands, the rapid scaling up of the lending portfolio facilitated by increased financing from IDA and other development partners--within a nascent client institutional capacity—led to implementation problems in key areas of the WBG program and deterioration of the active portfolio. Going forward, implementation problems will need to be addressed through improved project design and implementation support in line with client capacity, to ensure sustained achievement of results in the next CPF. • In Fragile and Conflict-Affected States, strong IFC and IDA collaboration can leverage IDA financing and lead to positive results. In Solomon Islands, there was strong Bank and IFC collaboration, with IFC supporting three of the ten CPS objectives (fisheries, ICT, and energy), through investments and advisory services. The collaboration was appropriately captured in the CPS results framework and contributed to achievements in CPS outcomes especially in fisheries and ICT. 4. Strategic Focus Relevance of the WBG Strategy: 1. Congruence with Country Context and Country Program . Solomon Islands is a Fragile and Conflict-Affected State (FCS) that experienced significant civil unrest during 1998-2003, which was brought to an end by international intervention in 2003. Notwithstanding relative peace and stability during the CPS period, challenges remain for increasing the productivity and resilience of smallholder agriculture and fisheries, enhancing connectivity of urban centers to the rest of the country, improving mining governance and spreading its benefits to the rest of the economy, and strengthening local level institutions. Per capita aid flows to Solomon Islands are among the highest globally, with aid amounting to about a third of annual GDP with Australia as the largest donor. The WBG program had two broad themes: (i) strengthening economic resiliency, and (ii) improving service provision. The WBG strategy and objectives were broadly congruent with the government’s National Development Strategy (NDS) (2011-2020), and the NDS 2016-2035 launched in April 2016 by the new government elected in 2014.3 For instance, Objective 4 aimed to promote agricultural commercialization among 3 The government’s National Development Strategy 2011-2020 had the overarching aim of building better lives for all Solomon Islanders and three broad goals (i) increasing social and economic opportunities, (ii) securing sustainable growth, and (iii) maintaining stability and peace. For Official Use Only CLR Review 4 Independent Evaluation Group small-holder farmers was linked to the government’s objective of increasing social and economic opportunities. The emphasis on developing greater resilience of rural communities to climate change, natural hazards, and catastrophic disasters (Objective 8) was directly linked to the government’s National Disaster Risk Management Plan and the National Climate Change Policy. However, there have been several challenges to achieving these objectives, including weak local capacity, a geographically dispersed country, and social tensions among different social and ethnic groups. 4 2. Relevance of Design. The proposed WBG interventions could reasonably be expected to contribute towards the achievement of the CPS objectives and the country’s development goals, with some exceptions. The combination of IDA resources with trust funds and IFC investments was appropriate for the program. Trust-funded activities were well integrated with the lending and knowledge portfolios, especially in the areas of rural development, fisheries, climate change, and local governance. IFC complemented well the work of IDA in Focus Area 1 (fisheries and energy) by focusing on investment and advisory services (AS) that contributed to expanding fisheries production capacity and power generation. Good collaboration with other development partners allowed the WBG to work in areas where it has comparative advantage and value added. The actual ASA program was broadly aligned with the planned program but did not cover key areas of the program, such as energy. It also failed to develop up-to-date poverty data, which is essential to underpin WBG’s interventions. There were areas of the original program—business environment and gender, which were later dropped at PLR stage—where the program intended to achieve results without the appropriate interventions or partnerships with other donors. Selectivity 3. The CPS program selectivity was mixed. It was selective by having two focus areas that addressed key challenges facing the country and reflected the government’s strategy. The areas selected took into account the work of other development partners and concentrated on the WBG’s comparative advantage. However, the WBG program was not selective in terms of the number of objectives and indicators, and interventions which proved too demanding for an FCS country with a constrained administrative capacity and modest experience implementing WBG programs. The original program design had 13 objectives and 24 indicators, with some objectives and indicators not well supported by appropriate interventions. The planned IDA lending for the CPS period was scaled up both in terms of number of projects and commitments (excluding trust funded activities which also increased during the CPS period). At the end of the CPS period, there were 10 active operations in 2017 (from 6 operations in 2013) which resulted in implementation delays and affected the delivery of results for some program objectives. At PLR stage, adjustments were made to the results framework to align the program with implementation capacity and realities on the ground by reducing the number of objectives and indicators; but changes were insufficient to correct shortcomings in the original design. Alignment 4. The program was well aligned with WBG’s corporate twin goals of reducing extreme poverty and boosting shared prosperity. The CPS objectives and interventions contributed directly and indirectly to the twin goals. Under Focus Area 1, support for expanding the production capacity in fisheries could help generate employment growth and raise incomes for the poorest 40 percent of the population. Under Focus Area II, improving public service provision—including increased access to infrastructure and services in rural communities, where the poor are concentrated, and access to employment opportunities—could conceivably contribute to the reduction of extreme poverty and increase shared prosperity. 4 Solomon Islands comprises an archipelago of 997 islands with a total land area of 29,900 square kilometers spread over 1.34 million square kilometers of ocean, an area larger than France, Germany and Poland combined. For Official Use Only CLR Review 5 Independent Evaluation Group 5. Development Outcome Overview of Achievement by Objective: Focus Area I: Strengthening Economic Resilience 5. Focus Area I had seven objectives: (i) improve the efficiency of expenditure management, (ii) strengthen the regulatory framework of the mining sector, (iii) increase production capacity of fishing industry, (iv) promote agricultural commercialization among small-holder farmers, (v) improve reliability and efficiency of energy supply, (vi) improve access and reduce cost of ICT services, and (vii) improve resilience to climate change and natural hazards. Objective 1: Improve the efficiency of expenditure management 6. This objective was supported through a series of Development Policy Operations (DPO) (FY12, FY14), a stand-alone Recovery DPO (FY15) and non-lending technical assistance on Line Ministry Expenditure Analyses (FY13). This objective had two indicators. • Number of ministries spending over 10 percent of their original allocations decreases from baseline of 10 in 2011 through to 2017: This indicator was reformulated at the PLR. The original CPS target was to increase the number of spending units that do not deviate by more than 10 percent from the original allocations (from 9 to 14). The PLR did not provide a numerical target. The ICRR for the DPO series reports that the number of expenditure units where expenditure did not deviate by more than 10 percent decreased from 10 in 2013 to 7 in 2014. Not Verified. • Ministerial expenditure briefs included in Volume 1 of the annual budget documentation produced using new data analysis tools. This indicator was added at the PLR. According to the CLR, one-page expenditure briefs for all ministries (and expenditure heads) have been included in the annual documentation—Volume 1 since 2014. IEG verified that this was the case for the 2016 budget by checking the published budget on the web. Achieved 7. The second indicator does not sufficiently capture improvements in efficiency of expenditure management per se. Additional information from the ICRR for the DPO series I and II and the Recovery DPO indicates broad progress in the quality of expenditure management through improved budget accounting for closer tracking of expenditures, broader budget consultations, greater control of tax and wage expenditures, improved procurement transparency, and improvements in addressing SOE debts. However, the ICRR also notes that the extent to which closer congruence between planned and realized expenditures is unclear. On balance, IEG rates Objective 1 as Mostly Achieved. Objective 2: Strengthen the regulatory framework of the mining industry 8. This objective was supported through the DPO series (FY12/FY14) and Recovery DPO (FY15), and non-lending technical assistance on Civil Society Organizations Engagement in Extractive Industries Transparency Initiative (FY16). The objective had two indicators. • EITI validation achieved: The CLR reports that in March 2017 the International EITI Board found that Solomon Islands had made limited progress in implementing the 2016 EITI standard which resulted in its suspension from EITI. In this regard, Solomon Islands was requested to take corrective actions which will be assessed in the next validation process which commenced on March 2018. Not Achieved • Updated mineral development law and regulations in place: The CLR reports that the National Minerals Policy (NMP) was drafted and approved by the Cabinet in March 2017; but the Mining Law was not amended as the NMP regulations are being drafted in early 2018. Partially Achieved 9. IEG rates Objective 2 as Not Achieved. For Official Use Only CLR Review 6 Independent Evaluation Group Objective 3: Increase production capacity of fishing industry 10. This objective was supported through the Pacific Regional Ocean-scape program (FY15), and IFC senior loans for a net commitment of US$14 million in the fisheries industry.5 IFC also provided a number of advisory services in SolTuna to decrease absenteeism, improve financial literacy, and reduce employee turnover. The Bank prepared a TA on Pacific Gender Indicators in Fisheries (FY15). This objective had two indicators. • SolTuna employees increase: 2,000 workers (from baseline of 1,413 in 2013) were employed by SolTuna as of May 2017—in line with the target—of which 64 percent are women (compared to the target of 65 percent). 6 Achieved • SolTuna processing plant capacity increased: Processing capacity of SoITuna as of August 2016 increased to 100-105 metric tons per day against a target of 110-115 metric tons per day by 2017 (from baseline of 90 MT in 2013). 7 The CLR reports that as of May 2017 processing capacity is 120 metric tons per day. IEG could not verify this information. Mostly Achieved 11. On balance, IEG rates Objective 3 as Mostly Achieved. Objective 4: Promote agricultural commercialization among small-holder farmers 12. This objective, with one indicator, was supported through the Rural Development Program project (FY14). • Number of agribusiness partnerships established: The CLR reports that the Bank’s support to the Ministry of Agriculture and Livestock (MAL) helped establish 20 new agriculture partnerships. The management report (ISR) of the April 2018 for the FY14 project confirms that 23 agribusiness partnerships were established (against a target of 46) as of February 2018. Data on the benefits of these partnerships in terms of increased technology adoption and production is yet to be collected by the project. Partially Achieved 13. The agribusiness partnerships are important steps towards promoting agricultural commercialization among small-holder farmers. On balance, IEG rates this objective as Partially Achieved. Objective 5: Improve reliability and efficiency of energy supply 14. This objective, with three indicators, was supported through the Sustainable Energy Project (FY09), including Additional Financing (FY14), the Tina River Hydropower Project (FY17), and the Electricity Access Expansion project (FY17). IFC provided advisory services on the preparation of the hydropower development project. • Average outage for each customer served on the Honiara grid reduced from 10 to 3 hours: The CLR reports that the average outage duration in Honiara is now 3 hours (from 10 hours). The latest ISR of the Sustainable Energy Project (FY09) reports that the system average interruption frequency index decreased from 816 minutes in December 2007 to 21.20 minutes in January 2018, and that the system average interruption duration index decreased from 51,840 minutes to 1,871 minutes over the same period. Not verified. • Maintain or reduce domestic tariffs: The CLR reports that new tariffs introduced in January 2017 show a 20 percent decrease in tariffs for large commercial customers and a 4-10 percent decrease in tariffs for residential customers. IEG could not verify this information. Not Verified • System losses reduced from 20 percent to 12 percent: The April 2018 ISR of the FY09 project reports a reduction in system losses to 18 percent (versus the target of 12 percent). Partially Achieved For Official Use Only CLR Review 7 Independent Evaluation Group 15. The operations supporting this objective do not monitor the first two indicators. The other indicator was partially achieved. On balance, IEG rates Objective 5 as Partially Achieved. Objective 6: Improve access and reduce cost of ICT services 16. This objective, with two indicators, was supported through the Telecommunications and ICT project (FY10). IFC’s AS project in mobile banking—jointly with Australia and New Zealand Banking Group (ANZ) and Bank South Pacific (BSP)—complemented Bank efforts in the telecommunications sector. • Increase in mobile penetration: The ICRR for the FY10 telecommunications and ICT project reports that tele-density (or the number of mobile subscribers per 100 people), increased to 66 percent as of March 31, 2015(compared to the CPS target of 80 percent target by 2017). Mostly Achieved • Decrease in tariffs for local mobile calls, calls to Australia, and 128kpbs internet access: 8 This second indicator has no baseline and target values. The ICRR for the FY10 reports that the price of a three-minute domestic call was reduced from US$1.20 in 2010 to US$0.56 in March 2015, while the price of a three-minute international call to Australia fell from US$3.60 in 2010 to US$2.44 in March 2015. The monthly rate for internet services for businesses was reduced from US$169 in 2010 to US$108 in March 2015. Achieved 17. On balance, IEG rates Objective 6 as Mostly Achieved. Objective 7: Improve resilience to climate change and natural hazards 18. This objective was supported through the Increasing Resilience to Climate Change and Natural Hazards project (FY13), the Community Resilience to Climate and Disaster Risk project (FY14), the Pacific Catastrophe Risk Assessment and Financing Initiative (FY13), and TA in the form of a Post Disaster Needs Assessment – Floods (FY13). The objective had two indicators. • Disaster risk resilience and climate change adaptation incorporated into national and provincial planning baseline in at least two provinces. According to the October 2017 ISR for FY13 project, the 2017 National Disaster Risk Management Plan and its operational arrangements were finalized in March 2017 and rolled out in three provinces. Achieved • Number of people with access to disaster risk and adaptation investments in targeted rural communities: According to the December 2017 ISR for the FY14 project, a total of 42,217 beneficiaries in areas targeted under the program benefited from Climate Change Adaptation and/or Disaster Risk Management investments, (compared with the target of 15,000 by 2017). Achieved 19. IEG rates Objective 7 as Achieved. 20. On balance, IEG rates Focus Area I as Moderately Satisfactory. Of the seven objectives, four were rated Achieved or Mostly Achieved, and three Partially Achieved or Not Achieved. There was substantial progress in enhancing resilience to climate change, improving access to and reduced costs of ICT services, increasing production capacity in the fishing industry, and improving efficiency of expenditure management. However, there was limited progress improving the reliability and 5 A “senior” loan is considered senior to all other claims against the borrower, which means that in the event of a bankruptcy the senior bank loan is the first to be repaid before all other interested parties receive repayment. 6 IFC supervision report in May 2018. 7 “Monitoring Report—Solomon Islands, SolTuna Processing Facility,” USAID: Washington D.C., August 2016. 8 128 kilobits per second (kbps) is an intermediate internet speed, acceptable for a small business in Solomon Islands. For Official Use Only CLR Review 8 Independent Evaluation Group efficiency of energy supply and promoting development of agricultural commercialization among small farmers; and little progress in strengthening the regulatory framework of the mining industry. Focus Area II: Improving Public Service Provision 21. This focus area had three objectives: (i) increase access to infrastructure and services in rural communities, (ii) increase access to employment opportunities for the urban population, and (iii) improve government support for establishing functioning local justice mechanisms. Objective 8: Increase access to infrastructure and services in rural communities 22. This objective, with two indicators, was supported through the Rural Development Program (RDP) I (FY08) and II (FY15). • A reduction in travel time of at least 10 percent to access rural services such as pre- primary and primary school, non-water supply health service, and water supply: The CLR reports reduction in travel time to access improved water sources was reduced by an average of 13.5 percent between 2010 and 2017. The ICR and IEG’s Project Performance Assessment Report (PPAR) for RDP I confirm the information provided in the CLR. There is no information on reduction in travel time for pre-primary and primary school, non-water supply health service. Additional information from the ICR and PPAR indicate satisfactory access to water, markets and roads: 71 percent of households reported having satisfactory access to water. Similar results were reported for other infrastructure investments, including access to roads (49.4 percent of villages indicated satisfactory access), and markets (40 percent increase in the proportion of villages with satisfactory access to markets). Mostly Achieved • Additional number of household members have access to community infrastructure or services: The CLR reports that 286,902 people including 100,157 women have benefitted from access to community infrastructure or services. According to the PPAR for RDP1, 198,340 people benefited from completed infrastructure subprojects compared to the CPS target of 352,509. Mostly Achieved 23. IEG rates Objective 8 as Mostly Achieved. Objective 9: Increase access to employment opportunities for the urban population 24. This objective, with one indicator, was supported through the Rapid Employment project (FY10), and two Additional Financings (FY16, FY17) of the project, and the Education Skills Advice TA (FY15).: • At least 300,000 additional labor days completed with 50 percent of beneficiaries being women and 33 percent -- youth: The latest November 2017 ISR for the Rapid Employment Project (FY10) reports that 759,272 labor days were generated, of which 402,214 (53 percent) are women and 440,377 (58 percent) are youth. Achieved 25. IEG rates Objective 9 as Achieved. Objective 10: Improve government support for establishing functioning local justice mechanisms 26. This objective, with one indicator, was supported by the Community Governance project (FY15), and technical assistance on Justice Delivered Locally (FY16) and Managing Grievance and Conflict (FY17). The government is committed to introducing a viable form of community policing across the country, in support of local justice mechanisms. • Support for community officers reflected in provincial budgetary allocations: The December ISR for the FY15 project reports that two provinces—Makira/Ulawa and Rennell/Belona—reflected in their budgetary allocations support for community officers, For Official Use Only CLR Review 9 Independent Evaluation Group compared with a target of four. Community officers play a key role in the government’s efforts to introduce a viable form of community policing. Partially Achieved 27. IEG rates Objective 10 as Partially Achieved. 28. Focus Area II is rated as Moderately Satisfactory. Of the three objectives, two were Achieved or Mostly Achieved and one Partially Achieved. The program contributed to increasing access to infrastructure and services in rural communities, and access to employment opportunities for the urban population. However, there was limited progress in improving government support for establishing functioning local justice mechanisms. Overall Assessment and Rating 29. IEG rates the CPS development outcome as Moderately Satisfactory. Of the ten objectives, six were rated Achieved or Mostly Achieved, and four Partially Achieved or Not Achieved. Under Focus Area I, there was substantial progress in enhancing resilience to climate change, improving access to and reduced costs of ICT services, increasing production capacity in the fishing industry, and improving efficiency of expenditure management. However, there was limited progress in improving the reliability and efficiency of energy supply and promoting development of agricultural commercialization among small farmers; and little progress in strengthening the regulatory framework of the mining industry. Under Focus Area II, the program contributed to increasing access to infrastructure and services in rural communities, and access to employment opportunities for the urban population. However, there was limited progress in improving government support for establishing functioning local justice mechanisms. Objectives CLR Rating IEG Rating Focus Area I: Strengthening Economic Resilience Satisfactory Moderately Satisfactory Objective 1: Improve the efficiency of expenditure management Achieved Mostly Achieved Objective 2: Strengthen the regulatory framework of the mining Partially Achieved Not Achieved sector Objective 3: Increase production capacity in the fishing industry Achieved Mostly Achieved Objective 4: Promote agricultural commercialization among Partially Achieved Partially Achieved small-holder farmers Objective 5: Improve reliability and efficiency of energy supply Partially Achieved Partially Achieved Objective 6: Improve access to and reduce cost of ICT services Mostly Achieved Mostly Achieved Objective 7: Improve resilience to climate change and natural Achieved Achieved hazards Focus Area II: Improving Public Service Provision Satisfactory Moderately Satisfactory Objective 8: Increase access to infrastructure and services in rural Mostly Achieved Mostly Achieved communities Objective 9: Increase access to employment opportunities for the Achieved Achieved urban population Objective 10: Improve government support for establishing Mostly Achieved Partially Achieved functioning local justice mechanisms For Official Use Only CLR Review 10 Independent Evaluation Group 6. WBG Performance Lending and Investments 30. At the beginning of the CPS period lending commitments were $19 million consisting of six operations in the form of five Investment Project Financing (IPF), including one Additional Financing, and one Development Policy Financing (DPF). During the CPS period, new lending commitments amounted to $78.8 million, higher than originally planned ($45 million). New lending commitments comprised nine operations in the form of six IPFs —including two Additional Financing and one regional operation—and two DPFs, covering macro, trade and investment, environment and natural resources, rural development, and energy and extractives. Energy and extractives accounted for 60 percent of new commitments. IDA allocation for Solomon Islands was leveraged by financing from the regional IDA program and IDA’s Crisis Response Window (CRW), and other development partners (co-financing and parallel financing). A stand-alone DPF (FY15) responded to the consequences of the April 2014 floods—in addition to addressing fiscal issues and private sector investment. During the CPS period, twelve trust-funded activities (TFs) were approved for a total of US$35.2 million, complementing IDA operations in rural development, community resilience to climate change and disaster risk, and energy. 31. During the CPS period, the Solomon Islands’ portfolio performance at exit was better than the EAP and Bank-wide averages. In terms of volume of commitments and number of projects, IEG rated all five closed projects (100 percent) as Moderately Satisfactory or better, compared to the EAP (86.3 percent and 78.7 percent, respectively) and Bank-wide (84.9 percent and 72.8 percent, respectively). The risk to development outcome measured as percent of commitment volume with moderate or lower risk is better for the Solomon Islands (60 percent) than EAP (56 percent) and Bank (54.4 percent) averages. However, in terms of percent of number of projects, Solomon Islands (40 percent) fared less well than both EAP (55 percent) and the Bank (44 percent). 32. Solomon Islands’ active Bank portfolio performed less well than EAP and the Bank. The percentage share of projects at risk (by number of projects) averaged 31 percent, higher than EAP (18 percent) and the Bank (21 percent). The percentage share of commitments at risk was also higher in Solomon Islands. Average disbursement ratios were higher in Solomon Islands (24 percent) than EAP (20 percent) and the Bank (21 percent). Self-ratings of ongoing projects were moderately unsatisfactory for two projects (one on regional operation, and another on rural development) that experienced implementation delays due to project readiness issue and overly ambitious objectives. The CLR indicated that, on the whole, Bank portfolio quality was affected by limited supervision, frequent turnover of TTLs, and fragmentation of the lending portfolio. 33. During the CPS period, IFC made a total net commitment of US$14.0 million to two companies in the fishing industry.9 Of the $14 million, US$9 million in net commitment was allocated to SolTuna, the largest tuna processing facility in the Solomon Islands, and US$5 million to National Fisheries Development Ltd (NFD), a SolTuna sister company. IFC’s US$9 million net commitment was part of a US$27 million upgrade and expansion project, which was expected to increase the company’s processing capacity to 150 tons per day and strengthen the sustainability of its operations. IFC sought to support the development of the domestic tuna industry to develop export capacity and increase domestic employment in the fishing industry. IFC investments were complemented by AS projects that advised Solomon Islands on supply chain management, and improvements in environmental and safety performance of fishing and processing operations. Analytic and Advisory Activities and Services 34. During the CPS period, the Bank delivered a total of 10 ASA products: three Economic and Sector Work (ESW) products and seven Technical Assistance (TA) pieces. Technical assistance covered a wide range of topics, including the justice system, EITI certification, fisheries, public finance management, and post-disaster recovery. The analytical work undertaken by the WBG helped 9 SolTuna and its sister company NFD. For Official Use Only CLR Review 11 Independent Evaluation Group prepare a Systematic Country Diagnostic Study (SCD) in 2017. ASA was broadly aligned with the planned program (with the exception of a planned poverty mapping and a health governance diagnostic that were not carried out) but actual delivery did not cover key areas of the program such as energy, which was scaled up during the CPS and accounts for 60 percent of the new commitments. A significant additional weakness of the ASA program is lack of up-to-date poverty data (latest data is 2012/2013), and differences in methodology between the 2005/06 HIES and the 2013/14 HIES which do not allow to compare poverty rates between the two exercises. Such shortcomings in the ASA program prevented a full and up-to-date poverty analysis in the SCD and constrained the ability of WBG interventions to address poverty-related issues with analytical support. 35. During the review period, IFC approved five new AS projects amounting to US$8.2 million of IFC funds. The advisory services aimed at improving the economic potential of the fishing industry, enhancing the payment systems, developing mobile banking, and preparing the hydropower development project. The AS projects were complementary to IFC’s investments in the fishing industry and the Bank’s projects in the ICT sector. IEG did not validate development effectiveness of any of these AS projects.10 Results Framework 36. Overall, the results framework reflected well the link between the medium-term country goals, key issues and obstacles, outcomes and intermediate indicators to which WBG expects to contribute, and WBG instruments supporting the program objectives. Yet, the original results framework had some shortcomings, with too many objectives and indicators, with some of them not linked to WBG interventions (for example, objectives on investment climate and gender-related violence) while some Bank operations were too complex in design and implementation arrangements, in the context of the country’s nascent implementation capacity.11 At PLR stage, the results framework was altered to reflect better the scope and link to WBG interventions, and the implementation realities on the ground. The number of objectives was reduced from13 to 10, and the original indicators from 24 to 18. Even after the PLR modifications, some weaknesses remain including, poorly specified indicators (objective 2 on mining), and weak link between objectives and WBG interventions (objective 5 on energy). Partnerships and Development Partner Coordination 37. The Bank is a key player in the Solomon Islands but not the main one. Australia is by far the most significant donor, and the most influential reflecting in part its geographical proximity to Solomon Islands. The WBG had clear division of labor with other development partners which allowed the Bank to leverage IDA financing. At the beginning of the program, policy discussions between the government and development partners took place within the Core Economic Working Group (CEWG), which was created in 2009 to underpin flexible budget support and assist Solomon Islands to respond to the global economic crisis. During program implementation, the newly elected government developed a new Aid Management and Development Cooperation Policy aimed at bringing the recurrent and development budgets closer together to better reflect the recurrent cost implications of development programs. The WBG has supported the government in coordinating donor meetings without taking the lead. Bank projects have been supported by development partners, either through co-financing or parallel financing. For example, Australia, the EU, and IFAD supported the Rural Development project. The Tina River Hydro Development project is co-financed by several partners including the Green Climate Fund, the Government of Korea and the Asian Development Bank. 10 IEG does not validate all IFC advisory and investment projects. It asks IFC to do self-validation of a randomly selected sample. 11 An example of complexity are the Rural Development Program (RDP) projects (I and II) where the complex and expensive procurement procedures coupled with logistical issues due to the remoteness of islands made the project objectives difficult to achieve. Interventions, including the RDP, also had complex results frameworks. For Official Use Only CLR Review 12 Independent Evaluation Group Safeguards and Fiduciary Issues 38. The CLR notes that the Bank provided technical support and safeguards studies to enhance the quality of an operation where safeguard policies were triggered. Based on five closed projects validated by IEG, environmental and social safeguard policies were applied in one of them. Issues related to disputes over community’s resources and religious differences hampered full compliance with the triggered policies. Land acquisition was also pointed as an issue in a country where agreement with tribal leaders is critical to validate customary landownership, and the compensation framework. No Inspection Panel cases were filed during the CPS implementation period. 39. There were two complaints to INT on fiduciary issues, but these were not turned into cases. Ownership and Flexibility 40. There was broad alignment between the WBG program and the National Development Strategy. The WBG carried out dialogue with the government as well as roundtables with development partners, civil society, and the private sector during the preparation of the CPS to allow a broad-based perspective on development challenges facing the country. Initially, the government showed broad ownership which enabled implementation of the second development policy operation of a programmatic series. Following elections in late 2014, the new government showed less commitment to the WBG program. The CLR mentions that the government has not been open to reforms in the energy sector, a key area of the WBG program. Moreover, it has shown little interest in maintaining an appropriate macro framework for the WBG program, as manifested by an expansionary fiscal policy which led to a widening of the fiscal deficit and heightening of macroeconomic risks. The WBG demonstrated flexibility at the PLR stage, by recognizing implementation issues and program shortcomings, and taking measures to amend them by consolidating the CPS objectives and indicators. In response to major floods in April 2014, the Bank responded appropriately with a needs assessment and a Recovery DPO. WBG Internal Cooperation 41. There was strong Bank-IFC collaboration, with IFC supporting three of the ten CPS objectives. IFC investment and advisory services complemented WB programs and projects in the fisheries, ICT (mobile banking), and energy sectors. This cooperation was captured appropriately in the results framework. In the energy sector, IFC worked as a transaction advisor to the government in the Tina River Hydro project, and the Bank was the lead agency supporting the project preparation, and provided project financing together with other development partners. Risk Identification and Mitigation 42. The CPS and PLR identified as major risks the domestic political context, including governance, macroeconomic instability, institutional capacity for implementation and sustainability, fiduciary risks, and natural hazards and climate change risks. The risks were to be mitigated as follows: (i) On political context, the Bank would engage in areas to mitigate risk of unrest, including in urban land governance and gender; (ii) On macroeconomic risks, the Bank relied on dialogue with IMF and other donors to encourage policy change that would help to re-build internal and external buffers; (iii) On institutional capacity and fiduciary risks, the Bank would try to calibrate engagements according to the existing capacity; (iv) On natural hazards and climate change, the Bank would continue its work on climate change and disaster risk management at the community level. 43. Macroeconomic risks (increased budget deficits —reduced financial buffers) and institutional capacity risks materialized, and mitigating measures under the WBG program proved insufficient to offset them. Although the Bank has significant experience and expertise in fragile and conflict-affected states, it had difficulties in managing institutional capacity risk in Solomon Islands. The scale-up of a portfolio with complex operations (design and institutional arrangements) did not appropriately recognize institutional capacity constraints, given the fragile and conflict-affected state environment of the country. This led to severe limitations in the implementation of some projects, particularly in rural development and energy. Addressing these capacity constraints will require an emphasis on capacity building and training. Macroeconomic risks have not been mitigated well through IMF dialogue, and For Official Use Only CLR Review 13 Independent Evaluation Group policy reforms supported by the DPOs have been insufficient to mitigate such risks. In fact, risks have increased as the budget deficit widened in 2017 and is projected by the IMF to widen further. Overall Assessment and Rating 44. On balance, IEG rates WBG performance as Good. The CPS addressed key challenges facing the country, and was congruent with the government’s national development strategy and aligned with the WBG’s twin corporate goals. Coming after a two-year Interim Strategy Note, however, the original program design was not sufficiently selective—with thirteen objectives and 24 indicators—in the context of a fragile state with a constrained administrative capacity. ASA was broadly aligned with the planned program but actual delivery did not cover key areas of the program, such as energy. The CPS and PLR appropriately identified risks, but the WBG could not adequately manage the risks due to weak implementation capacity, and led to implementation difficulties, particularly in rural development and energy. Moreover, macroeconomic risks have not been mitigated well through the IMF dialogue as expected under the WBG program. In fact, risks have increased as the budget deficit widened in 2017. Portfolio performance at exit was better on average than the East Asia and Pacific (EAP) region and the Bank. The scaling up of the lending program to 10 operations in 2017 (from six operations in 2013), partly in response to the 2014 flooding, had implications on the active portfolio performance. During the CPS period, the active portfolio showed signs of deterioration as measured by the percentage of projects at risk (by number of projects and commitment volume) compared to the EAP and Bank averages. At the PLR, the Bank demonstrated flexibility by responding appropriately to the flooding in 2014 through a DPO operation, and by consolidating the number of objectives (from 13 to 10) and indicators (from 18 to 24), and linking them more directly to WBG interventions. Still, adjustments were not sufficient to correct the original design shortcomings. Overall, there was good synergy between the Bank and IFC which produced good results in ICT and fisheries. Close collaboration with other donors allowed the WBG to work in areas where it has comparative advantage and leveraged IDA resources through co-financing and parallel financing in key areas. There were no Inspection Panel cases filed during the CPS period. While there were two complaints to INT on fiduciary issues, these were not turned to cases. 7. Assessment of CLR Completion Report 45. The CLR is clear and concise, and provides a good discussion of the CPS achievements and WBG performance. However, the CLR ratings could have followed more closely the IEG-WBG Shared Approach on Assessing Country Engagement. For instance, the rating for each objective was based on the achievement of targets (table 2), not on the achievement of objectives per the Shared Approach. Overall, WBG performance rating relied heavily on the performance of the active portfolio (para 26) without taking into consideration other elements of the CPS design and implementation per the Shared Approach. The CLR could have provided more information on the role played by ASA in the WBG program and the dissemination of the economic sector work. Moreover, there is no discussion on safeguards and fiduciary issues. It would have been useful to have a more robust discussion on the rationale for the portfolio scale-up in Solomon Islands, and the lessons for other fragile and conflict-affected states. 8. Findings and Lessons 46. The CLR contains relevant lessons: (i) project preparation and implementation were affected by low technical capacity, lack of knowledge of fiduciary procedures, geographic dispersion, limited Bank supervision and rotation of task team leaders, suggesting the need for greater efforts to ensure project readiness before implementation begins; (ii) client capacity constraints requires Bank support to help the government adapt to recent innovations and changes in Bank engagement modalities (for example, on procurement and environmental and social framework); (iii) in community-driven development (CDD) projects, such as the Rural Development Project, simplified implementation procedures and central technical support would help mitigate the challenges of service delivery in remote rural areas and outer islands; (iv) the WBG should explore options for consolidating community based investment activities in the future; (v) communication is vital to strengthen project For Official Use Only CLR Review 14 Independent Evaluation Group ownership and participation; (vi) land acquisition and land use arrangements can delay implementation of investment projects if not conducted properly; (vii) for WBG engagement in the mining sector to have impact, a strong government champion is required; and (viii) budget support to fragile states needs to be a key element of a package that includes evidence-based policy dialogue, analytical work, and technical assistance and capacity building activities. 47. IEG adds the following lessons: • For countries transitioning from fragility to development, scaling up the lending portfolio without the accompanying increase in administrative and implementation capacity could undermine achievement of sustainable results. In the case of Solomon Islands, the rapid scaling up of the lending portfolio facilitated by increased financing from IDA and other development partners--within a nascent client institutional capacity—led to implementation problems in key areas of the WBG program and deterioration of the active portfolio. Going forward, implementation problems will need to be addressed through improved project design and implementation support in line with client capacity, to ensure sustained achievement of results in the next CPF. • In Fragile and Conflict-Affected States, strong IFC and IDA collaboration can leverage IDA financing and lead to positive results. In Solomon Islands, there was strong Bank and IFC collaboration, with IFC supporting three of the ten CPS objectives (fisheries, ICT, and energy), through investments and advisory services. The collaboration was appropriately captured in the CPS results framework and contributed to achievements in CPS outcomes especially in fisheries and ICT. Annexes CLR Review 15 Independent Evaluation Group Annex Table 1: Summary of Achievements of CPS Objectives – Solomon Islands Annex Table 2: Solomon Islands Planned and Actual Lending, FY13-FY17 Annex Table 3: Analytical and Advisory Work for Solomon Islands, FY13-FY17 Annex Table 4: Trust Funds Active in Solomon Islands, FY13-17 Annex Table 5: IEG Project Ratings for Solomon Islands, FY13-17 Annex Table 6: IEG Project Ratings for Solomon Islands and Comparators, FY13-17 Annex Table 7: Portfolio Status for Solomon Islands and Comparators, FY13-17 Annex Table 8: Disbursement Ratio for Solomon Islands, FY13-17 Annex Table 9: Net Disbursement and Charges for Solomon Islands, FY13-17 Annex Table 10: Total Net Disbursements of Official Development Assistance and Official Aid for Solomon Islands Annex Table 11: Economic and Social Indicators for Solomon Islands, FY13-16** Annex Table 12: List of IFC Investments in Solomon Islands Annex Table 13: List of IFC Advisory Services in Solomon Islands Annex Table 14: IFC net commitment activity in Solomon Islands, FY13 - FY17 Annex Table 15: List of Active MIGA Activities in Solomon Islands, FY13-17 Annexes CLR Review 17 Independent Evaluation Group Annex Table 1: Summary of Achievements of CPS Objectives – Solomon Islands CPS FY13-FY17: Focus area I: Strengthening Economic Actual Results IEG Comments Resilience CPS Objective 1: Improved efficiency of expenditure management Indicator 1: Number of The Development Policy Operation (DPO) This indicator has been ministries spending over 10% of Series (P126740, FY12, P143242, FY14, added during the PLR. their original allocations P149886, FY15 : IEG: MS) supported this decreases from a baseline of 10 outcome; the series aimed to : i) improve Before the PLR, the original in 2011 through to 2017 the quality of public financial management; indicator was: ii) improve the financial management of key The number of ministries that Baseline: 10 (2011) State-Owned Enterprises (SOE); and iii) do not deviate by more than Target: decrease (2017) improve extractive revenue transparency. A 10% from original allocations WB Non-Lending Technical Assistance approved by Parliament. (NLTA) (Completion Summary) on Line Baseline: 9 Ministry Expenditure Analyses (P130825, Target: 14 FY13) also supported this objective. IEG ICRR: S of the DPO Series 1 and 2 stated that the number of expenditure heads where expenditures do not deviate Major by more than 10 percent from approved Outcome allocations increased to 15 by 2012 before Measures falling to 10 in 2013 and 7 in 2014. Not Achieved Indicator 2: Number of This indicator was also supported by the This indicator was added at ministerial expenditure briefs DPO series and the NLTA report above. PLR stage. included in Volume 1 of the annual budget According to the CLR, one-page documentation produced using expenditure briefs for all ministries (and new data analysis tools expenditure heads) have been included in the annual documentation –Volume 1 for Baseline: 0 (2012) every year since 2014. Target: 28 (2017) IEG ICRR: S of the DPO Series 1 and 2 reports that since 2011 (for the 2012 budget), the Government includes individual ministerial expenditure briefs in budget documents. Achieved CPS Objective 2: Strengthened regulatory framework in the mining sector Indicator 1: EITI validation The Solomon Islands Recovery DPO Outcome revised, at PLR achieved (P149886, FY15) supported this outcome; stage, from Enhanced with an objective of improved management regulatory framework, public Baseline: candidate status of public expenditure and debt; ii) sector capacity and Target: validation process strengthened management of extractive community benefits in the recognizes moderate progress industries; and iii) better conditions for mining sector private sector investment. The original target, before the The NLTA (P131459, FY16) Solomon PLR, was “certification”. Islands Civil Society Organizations (CSO) Engagement in Extractive Industries Transparency Initiative (EITI) supported Annexes CLR Review 18 Independent Evaluation Group CPS FY13-FY17: Focus area I: Strengthening Economic Actual Results IEG Comments Resilience this outcome to Strengthen CSO contributions to EITI implementation process by facilitating CSO participation in the National Stakeholder Group (NSG). The National Mining Forum Final Report was released last October 2015 and a completion summary for the P131459, FY16 has been prepared and submitted. Based from the CLR, EITI validation began in 2016, and on March 8, 2017 the International EITI Board found that progress in implementing the EITI Standard was inadequate. A significant aspect of the requirement has not been implemented and the broader objective of the requirement is far from fulfilled. Not Achieved Indicator 2: Updated mineral The WB NLTA P131459, FY16 also Baseline and target changed development, law and supported this objective. Around 200 during the PLR, the original regulations in place participants from all provinces across baseline was: Solomon Islands attended the forum and a Baseline: outdated law, title Baseline: No Mineral policy Report was prepared. management, fiscal regime Target: Mineral policy in place and landowner engagement and amendments to the Mining The CLR repors that consultations for a mechanisms Law drafted National Minerals Policy (NMP) took place in several provinces in October 2016, and the NMP drafted and approved by Cabinet in March 2017. Information from the Solomon Islands Extractive Industries Transparency Initiative (SIEITI) indicates that the Government had launched the National Mineral Policy 2017-2012 in June 2017. However, amendments to the Mining law were not made, as the NMP regulations are being drafted in early 2018. Partially Achieved CPS Objective 3: Increased production capacity of fishing industry Indicator 1: SolTuna employees This objective was supported through the Objective 3 was revised increase Pacific Regional Oceanscape program during PLR from the original (PROP) (P151777, FY15). Increase local economic Baseline: 1,473 (2012) This indicator is not being monitored and benefits from fishing industry Target: 2,000, 65% of which reported by project P151777. by increased on-shore are women (2017) The NLTA P146728 (FY15) Pacific Gender production capacity to Indicators in Fisheries, which, produced the Increased production report Toward Gender-Equitable Fisheries capacity of fishing industry Management in Solomon Islands Annexes CLR Review 19 Independent Evaluation Group CPS FY13-FY17: Focus area I: Strengthening Economic Actual Results IEG Comments Resilience (completion summary) also supported this The following indicators were objective. dropped at PLR stage: Indicator: SolTuna processing The CLR states that as of May 2017, the plant number of SolTuna employees increased to Baseline: 7,223 2000 of which 64% are women. IFC lent Target: 20,465 metric tons SolTuna US$10 million as part of a per year US$27 million upgrade and expansion project, expected to increase the Indicator: SolTuna taxes paid company’s processing capacity to 150 tons increase Baseline: from $0 to per day and strengthen sustainability of its Target: US$2.1 million per operations. IFC’s supervision report in May year 2018 confirms that the a total number of employees are over 2,000. Indicator: SolTuna wages and benefits paid increase IFC has implemented a number of advisory Baseline: US$3.3 million services in SolTuna (Case study – SolTuna Target: US$6.2 million Tuna processing, Solomon Islands) to decrease absenteeism, improve financial literacy and reduce employee turnover. According to this September 2016 Case study, SolTuna employs over 1,800 workers, 64% of whom are women. Achieved Indicator 2: SolTuna processing According to the CLR, SolTuna processing Monitoring Report—Solomon plant capacity increased capacity increased to 120 MT per day. Islands, SolTuna Processing Facility,” USAID: Washington Baseline: 90 MT per day (2012) The CLR reports that as of May 2017 D.C., August 2016. Target: 110-115 MT per day by processing capacity is 120 metric tons per 2017 day. IEG was not able to verify this latest production capacity. A monitoring report from USAID indicates that processing capacity as of August 2016 was 100-105 metric tons per day against a target of 110-115 metric tons per day by 2017. IFC’s US$9 million net commitment was part of a US$27 million upgrade and expansion project, which was expected to increase the company’s processing capacity to 150 tons per day and strengthen the sustainability of its operations. Mostly Achieved CPS Objective 4: Promote agricultural commercialization among small holder farmers Indicator: Number of This objective is supported by the The original Objective 4: agribusiness P149282, FY15 Rural Development Increased productivity in key partnerships established Program II whose objective Is to improve cash crops (cocoa and basic coconut) changed during the Baseline: 0 (2015) According to the November 2017 PLR and the following Target: 46 (2017) management supervision report (ISR: MU), Annexes CLR Review 20 Independent Evaluation Group CPS FY13-FY17: Focus area I: Strengthening Economic Actual Results IEG Comments Resilience the actual number of agribusiness indicators dropped during the established is 20. PLR: Indicator: Increased cocoa Partially Achieved production Baseline: 6,000 Target: 8,000 metric tons/ year Indicator: A 20% increase in the number of households who have received and found agriculture advice useful Baseline is 0, impact evaluation will measure response to advice provided) Indicator: 30% increase in total value of turnover of 58 RDP- supported rural businesses CPS Objective 5: Improved reliability and efficiency of energy supply Indicator 1: Average outage According to the CLR - Average outage Outcome 5 was Revised for each customer served duration in Honiara now at 3 hours which during PLR from Lower cost, on the Honiara grid reduced IEG could not verify. more reliable electricity, from from cleaner energy sources to The outcome was supported by the Improved reliability Baseline: 10 hours (2012) following operations: and efficiency of energy Target: 3 hours  P161319 Tina River Hydro supply (2017) Development (FY17) ISR: MS report of November 2017 with an objective to increase the share of renewable energy through hydropower.  P151618 Electricity Access Expansion (FY16) ISR: MS as of December 2017 - P100311, FY09 SB-Solomon Islands Sustainable Energy Project and P146816, FY14 (SISE) AF Project Paper supported this objective which aims to improve operational efficiency, system reliability and financial sustainability of SIEA through improved financial and operational management, reduction of losses, and increased revenue collection. The latest ISR: MS (May 2018) reports that system average interruption frequency index (SAIFI) decreased from 816 minutes to 21.20 minutes between December 2007 and January 2018. Partially Achieved Annexes CLR Review 21 Independent Evaluation Group CPS FY13-FY17: Focus area I: Strengthening Economic Actual Results IEG Comments Resilience Indicator 2: Maintain The indicator is also supported by the or reduce domestic projects mentioned above. tariffs (US85c/kwh). According to the CLR - New tariff released in January 2017 showed a 20% decrease in tariff for large commercial customers and between 4-10% decrease in tariff for residential customers None of the operations supporting this objective report on this indicator. Not Verified Indicator 3: System The management supervision report ISR: This indicator was added at losses reduced MS of November 2017 for project P100311 PLR stage and the following reported system losses of 15%. indicator was dropped Baseline: around during PLR: 20% (2012) Partially achieved Power Purchase Agreement Target: 12% by 2017 signed between hydropower developer and SIEA. The operations supporting objective 5 did not monitor the first two of its three indicators. CPS Objective 6: Improved access to and reduced cost of ICT services Indicator 1: Increase in The Telecommunications & ICT Project Outcome and baseline mobile penetration P113148, FY10 supported this objective to dropped during PLR facilitate increased access to a wide variety Outcome 7. Baseline: 55% (2012) of reliable and affordable Strengthen the Target: 80% of population telecommunications services for the business climate (2017) majority of the Solomon Islands population through: through efficient and well-regulated Implementation of competition. additional 3 Baseline: of 5 doing The IEG ICRR: S reported that tele-density, business regulatory reforms. the number of mobile subscribers per 100 people, increased from 8 percent at project inception to 66 percent at project closure (March 31, 2015)—compared with an 80 percent target by 2017. Mostly Achieved Indicator 2: Decrease in The project P113148 also contributed to tariffs for local mobile calls, this outcome. IEG: S stated that the price of calls to Australia and a three-minute domestic call reduced from 128kpbs internet access US$1.20 at the baseline to US$0.56 at project closure, and compared to the original target of US$1.08. The price of a three-minute international call to Australia fell from US$3.60 at the Annexes CLR Review 22 Independent Evaluation Group CPS FY13-FY17: Focus area I: Strengthening Economic Actual Results IEG Comments Resilience baseline to US$2.44 and as compared to the target of US$3.06. The monthly rate for internet services for businesses reduced from US$169 in 2010 to US$108 in 2015. Achieved CPS Objective 7: Improved resilience to climate change and natural hazards Indicator 1: Disaster Risk The Increasing Resilience to Climate Outcome revised at PLR Resilience and climate Change and Natural Hazards project stage from Improved change adaptation (P129375, FY13) supported this outcome. resilience of rural incorporated into national communities to climate and provincial planning The ISR: MU of October 2017 stated that change, natural hazards and baseline in at least two the 2017 National Disaster Risk catastrophic disasters to provinces Management Plan and its operational Improved resilience to arrangement have been finalized on March climate change and natural Baseline:0 (2012) 24, 2017 and rolled out in 3 provinces hazards Target: > 2 provinces (2017) The following interventions also contributed The Indicator was revised to this outcome: at PLR from the original Community Resilience to Climate and indicator: DDR/CCA Disaster Risk in Solomon Islands Project incorporated into national (P112613, FY14,ISR: MU of December and provincial planning 2017) in at least two provinces  PDNA Solomon Island Floods April 2014 (P150910, FY13) TA - A Rapid The following indicator was assessment of the Macro and Sectoral dropped at PLR: Impacts of Flash Floods Indicator: Budget and  Pacific Catastrophe Risk Assessment financial regulations and Financing Initiative (PCRAFI accommodate (P133255, FY13) ICR: S disaster risk provisions Baseline is 0 Achieved Indicator 2: Number of The CLR reports that 45,908 beneficiaries This indicator was added at people with access to that benefitted from CCA and DRR PLR stage. disaster risk and adaption investments. According to the December 6, investments in targeted rural 2017 ISR: MU for the Community communities Resilience to Climate and Disaster Risk project (FY14), 42,217 beneficiaries in Baseline: 2000 (2015) areas targeted under the program benefited Target: 15,000 (2017 from Climate Change Adaptation and/or Disaster Risk Management investments. This indicator is supported by the) Increasing Resilience to Climate Change and Natural Hazards project (P129375, FY13) and Community resilience to Climate and disaster risk in Solomon Islands project (P112613, FY14). Achieved Annexes CLR Review 23 Independent Evaluation Group CPS FY13-FY17: Focus Area II: Improving Public Service Actual Results IEG Comments Provision CPS Objective 8: Increased access to infrastructure and services in rural communities Indicator 1: At least a 10% The SB-Rural Development Program Objective revised at PLR reduction in travel time to (P089297, FY08 ) and the Rural stage from Capacity for access rural services such Development Program II (P149282) (FY15) collective action and as: Pre-primary and primary supported this objective. increased access to school non-water supply services for rural health service, and water The ICR and IEG Project Performance communities. supply (G) Assessment Report (PPAR) for the Rural Development Project, report on reduction in The following outcome and Baseline: no reduction in travel travel time to access improved water indicator were dropped at time (2012) sources was reduced by an average of PLR stage: Target: >10% reduction in travel 13.5% (The ICR and PPAR do not report Outcome 8. Improved time (2017) on reduction in travel time for other expenditure management infrastructure services). and poverty focus in key sectors, including health and Additional information from the ICR and the education PPAR for RDP I indicate that following RDP Indicator: Number of budget investments 92% increase in number of submissions and ministry villages reporting satisfactory access to expenditure reports that use Major infrastructure and/or services. new data analysis tools Outcome Baseline: 0 Measures Mostly Achieved Target: 3 Indicators dropped during PLR: Indicator: At least a 5% increase in capacity for collective action Indicator: At least a 5% increase in pre-primary and primary school attendance (G) Indicator: At least a 10% increase in participation in community decision- making on projects. Indicator 2: Additional number The CLR reports that 286,902 people Indicator added at PLR of household members have including 100,157 women have benefitted stage. access to community from access to community infrastructure or infrastructure or services services. Baseline: 267,509 (o/w 90,473 According to the PPAR, at Rural female) (2015) Development project closure 198,340 Target: 352,509 (o/w female: people were benefiting from completed 132,973) infrastructure projects. Mostly Achieved Annexes CLR Review 24 Independent Evaluation Group CPS FY13-FY17: Focus Area II: Improving Public Service Actual Results IEG Comments Provision CPS Objective 9: Increased access to employment opportunities for urban population Indicator: At least 300,000 The Rapid employment projects (P114987, additional labor days completed FY10; P152709, FY16 and P160738, FY17) (in addition to 324,000 supported this outcome; completed by 2012; 50% of The latest Management supervision ISR: S beneficiaries are women, 33% reports of November 2017 for the Project youth P114987states that 759,272 labor days generated through of which 402,214 are Baseline: 0 (1012) women and 440,377 are youth. Target: > 300,000 additional labor days (2017) The Education Skills Advice [P147842, FY15) also supported this objective which aims to deliver evidence for investments in strengthened workforce development programs and non-formal literacy programs in Solomon Islands. This project delivered a Workforce Development Report and a Completion Summary that this NLTA delivered evidence for investments in strengthened workforce development programs and non-formal literacy programs in Solomon Islands. Achieved CPS Objective 10: Improved government support for establishment of functioning local justice mechanisms Indicator: Support for The following interventions supported this Target added during PLR community officers outcome. reflected in provincial  The Solomon Islands Community Dropped during PLR: budgetary allocations Governance Project (P147005, FY15). Latest Management supervision ISR: MS of Outcome 13: Enhanced Baseline is 0 December 2017 reported that two provinces access to services for Target: 4 provincial reflected in their budgetary allocations survivors of GBV government support for community officers. Indicator: Pilot delivery  J4P - SI - Justice Delivered Locally modality completed and NLTA project (P122365, FY16 ) delivered a scaled up Report (Completion Summary) and Baseline and targets TBD (P132587, FY17) Managing Grievance and based on GBV service gap Conflict in Solomon. These two ASA aims to analysis - see milestone inform and support innovation aimed at enhancing access to justice in Solomon Islands and the Pacific. The Community Governance project—a trust-funded activity—is making progress. The December 2017 supervision report notes that a new province, Malaita, has joined the effort to establish functioning local justice mechanisms through the Bank project, but its recruitment of community Annexes CLR Review 25 Independent Evaluation Group CPS FY13-FY17: Focus Area II: Improving Public Service Actual Results IEG Comments Provision officers is still in process and not reflected in the provincial budgetary allocation. The CLR reports—and the December 2017 supervision report confirms—that 59 percent of citizens experienced improvements in the accessibility of community grievance management mechanisms, and 77 percent experienced improvements in such mechanisms. Partially Achieved Annexes CLR Review 26 Independent Evaluation Group Annex Table 2: Solomon Islands Planned and Actual Lending, FY13-FY17 Proposed Proposed Approved Proposed Approval Closing Project ID Project name IDA IDA IDA FY FY FY Amount Amount Amount Project Planned Under CPS/PLR FY14-17 CPS PLR Rural Development Program P146021 (RDP) (AF2 - SI Rural 2014 2014 2015 3.5 3.0 Development Program) Development Policy Operation P143242** 2014 2014 2015 2.0 2.0 (Solomon Islands DPG-2) DROPPED Mining Sector Support Phase II 2014 4.0 Pacific Regional Oceanscape P151777 2015 2015 2021 1.0 9.8 Program (PROP) P149282 Rural Development Program II 2015 2015 2020 4.0 9.0 P161319 Tina Hydropower Project 2015 2017 2023 4.0 33.6 P152709 Rapid Employment Project II 2016 2016 3.0 1.5 DROPPED Sustainable Energy II 2016 2.0 Total Planned 23.5 0 58.9 Unplanned Projects during the CPS Period Solomon Islands Sustainable P146816 Energy (SISE), Additional 2014 13.0 Financing P149886 Solomon Islands Recovery DPO 2015 2016 5.0 RAPID EMPLOYMENT PROJECT P160738 2017 1.9 AF Total Unplanned 19.9 Approved Approval Closing On-going Projects during the CPS/PLR Period IDA FY FY Amount P089297 SB-Rural Development Program 2008 2015 3.2 SB-Solomon Islands Sustainable P100311 2009 2019 4.0 Energy SB: Telecommunications & ICT P113148 2010 2015 3.3 Project P114987 SB - Rapid Employment Project 2010 2019 3.2 Additional Financing-Solomon P121631** 2011 2015 3.0 Islands RDP Solomon Islands Dev Policy P126740** 2012 2013 2.0 Operation 1 Total On-going 19 Source: Solomon Islands CPS and PLR, WB Business Intelligence Table 2b.1, 2a.4 and 2a.7 as of 3/5/18 *LIR: Latest internal rating. ** Programmatic Series Annexes CLR Review 27 Independent Evaluation Group Annex Table 3: Analytical and Advisory Work for Solomon Islands, FY13-FY17 Economic and Sector Fiscal Proj ID RAS Output Type Global Practice Work year J4P Sols Customary P117718 FY15 No Policy Note Governance Authority Rural Infrastructure in Sector or Thematic Social, Urban, Rural and Resilience P131189 FY15 No Solomon Islands Study/Note Global Practice Education and Skills P120352 FY13 No Policy Note Education Programmatic AAA Fiscal Proj ID Technical Assistance Output Type Global Practice year SB - Justice Delivered Sector or Thematic P122365 FY16 No Governance Locally (TF97232 Study/Note Solomon Isl: CSO P131459 FY16 No Not assigned Energy & Extractives Engagement in EITI Solomon Islands HIES P131681 FY15 No Technical Assistance Poverty and Equity Support Pacific Gender Indicators in P146728 FY15 No Technical Assistance Environment & Natural Resources Fisheries P147842 Education and Skills Advice FY15 No Technical Assistance Education PDNA Solomon Island Social, Urban, Rural and Resilience P150910 FY15 No Technical Assistance Floods April 2014 Global Practice SI Line Ministry Expenditure Macroeconomics, Trade and P130825 FY13 No Technical Assistance Analyses Investment Source: WB Business Intelligence 3/7/18 Annexes CLR Review 28 Independent Evaluation Group Annex Table 4: Trust Funds Active in Solomon Islands, FY13-17 Project Approval Closing Approved Project name TF ID ID FY FY Amount P151618 ELECTRICITY ACCESS EXPANSION PROJECT TF A2923 2017 2018 2,225,000 P152779 Tina River Hydropower Development Project TF A2871 2017 2018 800,000 P161319 Tina River Hydropower Development Project TF A1895 2016 2018 1,244,477 Pacific Islands Regional Oceanscape Program - P152938 TF 18607 2015 2021 1,370,000 Solomon Islands Solomon Islands Rural Development Program II TF A5083 2017 2020 5,100,000 P149282 Solomon Islands Rural Development Program II TF 19256 2015 2020 9,000,000 P147005 Solomon Islands Community Governance Project TF 18206 2015 2019 3,080,000 COMMUNITY RESILIENCE TO CLIMATE AND TF 16614 2014 2019 7,300,000 DISASTER RISK IN SOLOMON ISLANDS PROJECT P112613 COMMUNITY RESILIENCE TO CLIMATE AND TF 16425 2014 2019 1,800,000 DISASTER RISK IN SOLOMON ISLANDS PROJECT Solomon Islands - Extractive Industries Transparency P118757 TF 15549 2014 2016 350,000 Initiative Implementation Improving Services for Victims of Gender Based and P143772 TF 14049 2013 2016 130,000 Domestic Violence Increasing Resilience to Climate Change and Natural P129375 TF 12391 2013 2019 2,730,000 Hazards. Rapid Employment Project TF 96620 2010 2017 3,290,000 P114987 Rapid Employment Project TF 95966 2010 2017 3,221,250 SB: Telecommunications and ICT Development Project TF 96582 2011 2014 3,000,000 P113148 SB: Telecommunications and ICT Development Project TF 97221 2011 2015 2,740,000 Solomon Islands: Mining Sector Technical Assistance - P117978 TF 97135 2011 2014 750,000 Phase I Tina River Hydropower Development Project TF 96372 2010 2016 4,030,968 P114317 Tina River Hydropower Development Project TF 96376 2010 2013 628,000 Rural Development Program TF 97737 2011 2014 3,000,000 P089297 Rural Development Program TF 90652 2008 2015 8,604,955 Total 64,394,650 Source: Client Connection as of 3/8/18 ** IEG Validates RETF that are 5M and above Annexes CLR Review 29 Independent Evaluation Group Annex Table 5: IEG Project Ratings for Solomon Islands, FY13-17 Total Exit Proj ID Project name Evaluated IEG Outcome IEG Risk to DO FY ($M) * 2013 P126740 Solomon Islands Dev Policy Operation 1 1.9 SATISFACTORY SIGNIFICANT MODERATELY 2015 P089297 SB-Rural Development Program 9.5 MODERATE SATISFACTORY 2015 P113148 SB: Telecommunications & ICT Project 3.2 SATISFACTORY MODERATE 2015 P143242 Solomon Islands DPG-2 2.1 SATISFACTORY SIGNIFICANT MODERATELY 2016 P149886 Solomon Islands Recovery DPO 4.6 SIGNIFICANT SATISFACTORY Total 21.3 Source: AO Key IEG Ratings as of 4/9/18 Annex Table 6: IEG Project Ratings for Solomon Islands and Comparators, FY13-17 RDO % RDO % Total Total Outcome Outcome Moderate or Moderate or Region Evaluated Evaluated % Sat ($) % Sat (No) Lower Lower ($M) (No) Sat ($) Sat (No) Solomon Islands 21.4 5 100.0 100.0 59.6 40.0 EAP 19,934.1 207 86.3 78.7 56.2 55.1 World 98,915.6 1,153 84.9 72.8 54.4 43.7 Source: WB AO as of 4/9/18 Annexes CLR Review 30 Independent Evaluation Group Annex Table 7: Portfolio Status for Solomon Islands and Comparators, FY13-17 Ave FY13- Fiscal year 2013 2014 2015 2016 2017 17 Solomon Islands # Proj 6 8 10 8 10 8 # Proj At Risk 1 1 3 4 4 3 % Proj At Risk 16.7 12.5 30.0 50.0 40.0 31.0 Net Comm Amt 20.1 46.1 58.7 54.9 94.4 55 Comm At Risk 4.0 2.7 10.0 34.1 44.9 19 % Commit at Risk 19.9 5.9 17.1 62.1 47.5 34.9 EAP # Proj 351 354 344 337 360 349 # Proj At Risk 66 65 70 56 62 64 % Proj At Risk 18.8 18.4 20.3 16.6 17.2 18.3 Net Comm Amt 30,542.3 31,852.5 32,386.0 33,346.1 35,902.1 32,806 Comm At Risk 5,089.2 5,270.3 6,412.3 4,776.1 5,405.5 5,391 % Commit at Risk 16.7 16.5 19.8 14.3 15.1 16.4 World # Proj 1,964 2,048 2,022 1,975 2,072 2,016 # Proj At Risk 414 412 444 422 449 428 % Proj At Risk 21.1 20.1 22.0 21.4 21.7 21.2 Net Comm Amt 176,202.6 192,610.1 201,045.2 220,331.5 224,458.9 202,930 Comm At Risk 40,805.6 40,933.5 45,987.7 44,244.9 52,549.1 44,904 % Commit at Risk 23.2 21.3 22.9 20.1 23.4 22.1 Source: WB BI as of 3/7/18 Note: Only IBRD and IDA Agreement Type are included Annexes CLR Review 31 Independent Evaluation Group Annex Table 8: Disbursement Ratio for Solomon Islands, FY13-17 Overall Fiscal Year 2013 2014 2015 2016 2017 Result Solomon Islands Disbursement Ratio 41.9 149.2 17.5 11.2 25.8 24.1 Inv Disb in FY 2.4 5.1 3.7 3.9 8.6 23.9 Inv Tot Undisb Begin FY 5.8 3.4 21.2 35.1 33.4 99.0 EAP Disbursement Ratio 19.6 19.9 20.5 19.6 19.1 19.7 Inv Disb in FY 3,232.8 3,539.6 3,670.3 3,797.6 3,615.8 17,856.0 Inv Tot Undisb Begin FY 16,461.7 17,830.8 17,923.6 19,399.7 18,975.9 90,591.6 World Disbursement Ratio 20.6 20.8 21.8 19.5 20.5 20.6 Inv Disb in FY 20,510.7 20,757.7 21,853.7 21,152.9 22,129.9 106,404.8 Inv Tot Undisb Begin FY 99,588.3 99,854.3 100,344.9 108,600.3 108,175.4 516,563.2 * Calculated as IBRD/IDA Disbursements in FY / Opening Undisbursed Amount at FY. Restricted to Lending Instrument Type = Investment. Source: AO disbursement ratio table as of 3/7/18 Annex Table 9: Net Disbursement and Charges for Solomon Islands, FY13-17 Period Disb. Amt. Repay Amt. Net Amt. Charges Fees Net Transfer FY13 4,396,596.1 1,217,358.4 3,179,237.7 - 292,834.6 2,886,403.1 FY14 7,269,606.7 1,592,762.2 5,676,844.5 - 281,817.7 5,395,026.9 FY15 7,848,408.8 1,508,956.6 6,339,452.2 - 263,224.2 6,076,228.0 FY16 3,319,768.2 1,455,300.7 1,864,467.6 - 236,057.6 1,628,410.0 FY17 7,351,160.8 1,427,193.6 5,923,967.2 - 245,859.8 5,678,107.4 Report Total 30,185,540.6 7,201,571.5 22,983,969.1 - 1,319,793.8 21,664,175.3 World Bank Client Connection 3/8/18 Annex Table 10: Total Net Disbursements of Official Development Assistance and Official Aid for Solomon Islands Development Partners 2013 2014 2015 2016 All Donors, Total 289.83 200.52 190.03 181.5 DAC Countries, Total 257.73 182.12 163.89 152.24 Australia 198.53 138.94 122 108.56 Canada 0.09 0.01 .. 0.16 Finland 0.13 0.13 .. .. France .. 0.01 0.02 0.01 Germany 0.1 0.35 0.25 0.36 Greece .. 0.01 .. .. Italy 0.02 0.39 .. 0.28 Annexes CLR Review 32 Independent Evaluation Group Development Partners 2013 2014 2015 2016 Japan 22.43 11.1 16.82 19.13 Korea 0.83 1.49 2.83 2.44 New Zealand 33.86 26.84 20.28 20.26 Sweden 0 0.06 .. .. United Kingdom 0.67 1.29 0.79 0.15 United States 1.06 1.5 0.9 0.88 Multilaterals, Total 32.46 18.81 22.72 28.79 EU Institutions 8.39 6.35 5.65 1.25 International Monetary Fund, Total 0.23 -1.13 -2.7 -3.44 IMF (Concessional Trust Funds) 0.23 -1.13 -2.7 -3.44 Regional Development Banks, Total 11.94 4.55 1.74 14.92 Asian Development Bank, Total 11.94 4.55 1.74 14.92 AsDB Special Funds 11.94 4.55 1.74 14.92 United Nations, Total 3.84 1.93 2.91 2.94 IFAD 1.46 -0.09 -0.09 0.48 International Labour Organisation [ILO] 0.19 0.26 0.15 0.16 UNDP 1.24 0.97 0.91 0.81 UNICEF .. .. 0.51 0.5 World Health Organisation [WHO] 0.95 0.78 1.42 0.99 World Bank Group, Total 4.27 2.14 7.98 5.4 World Bank, Total 4.27 2.14 7.98 5.4 International Development Association [IDA] 4.27 2.14 7.98 5.4 Other Multilateral, Total 3.79 4.98 7.13 7.73 Adaptation Fund .. 2.02 .. 0.42 Climate Investment Funds [CIF] .. 0.22 0.18 .. Global Alliance for Vaccines and Immunization [GAVI] 0.69 0.63 1.46 0.27 Global Environment Facility [GEF] 2.13 1.65 4.43 3.97 Global Fund 0.98 0.46 1.06 3.07 Non-DAC Countries, Total -0.35 -0.41 3.42 0.47 Israel .. .. .. 0.06 Kuwait -0.44 -0.44 .. .. Thailand 0.01 .. 0.01 0.04 Turkey 0.08 0.03 .. .. United Arab Emirates .. .. 3.41 0.38 Source: OECD Stat, [DAC2a] as of 3/8/18 * Data only available up to FY16 Annexes CLR Review 33 Independent Evaluation Group Annex Table 11: Economic and Social Indicators for Solomon Islands, FY13-16** Solomon Is. EAP World Series Name 2013 2014 2015 2016 Average 2013-2016 Growth and Inflation GDP growth (annual %) 3.0 1.5 3.7 3.0 2.8 4.3 2.7 GDP per capita growth 0.8 (0.6) 1.6 0.9 0.7 3.6 1.5 (annual %) GNI per capita, PPP (current 2,090.0 2,020.0 2,170.0 2,140.0 2,105.0 15,704.6 15,423.3 international $) GNI per capita, Atlas method 1,820.0 1,820.0 1,910.0 1,880.0 1,857.5 9,813.1 10,657.2 (current US$) (Millions) Inflation, consumer prices 5.4 5.2 (0.6) .. 2.1 2.1 (annual %) Composition of GDP (%) Agriculture, value added (% .. .. .. .. 5.4 3.9 of GDP) Industry, value added (% of .. .. .. .. 34.7 27.9 GDP) Services, etc., value added .. .. .. .. 59.9 68.2 (% of GDP) Gross fixed capital formation .. .. .. .. 32.0 23.4 (% of GDP) Gross domestic savings (% .. .. .. .. 34.7 24.8 of GDP) External Accounts Exports of goods and 56.4 51.5 46.1 .. 51.3 30.8 29.6 services (% of GDP) Imports of goods and 66.8 62.0 54.5 .. 61.1 28.9 29.0 services (% of GDP) Current account balance (% (3.6) (4.3) (3.2) (4.1) of GDP) External debt stocks (% of 19.4 17.0 18.5 20.8 GNI) Total debt service (% of GNI) 4.2 1.6 1.3 2.0 Total reserves in months of 8.4 8.0 9.0 8.7 15.4 13.3 imports Fiscal Accounts /1 General government 50.9 47.3 47.9 41.3 46.9 revenue (% of GDP) General government total 46.8 45.6 48.2 44.4 46.2 expenditure (% of GDP) General government net lending/borrowing (% of 4.1 1.7 (0.2) (3.1) 0.6 GDP) General government gross 15.3 12.8 10.1 7.9 11.5 debt (% of GDP) Health Life expectancy at birth, total 69.8 70.2 70.5 .. 70.2 75.1 71.7 (years) Annexes CLR Review 34 Independent Evaluation Group Solomon Is. EAP World Series Name 2013 2014 2015 2016 Average 2013-2016 Immunization, DPT (% of 94.0 88.0 98.0 99.0 94.8 92.6 85.3 children ages 12-23 months) Improved sanitation facilities (% of population with 29.2 29.5 29.8 .. 29.5 76.4 67.0 access) Improved water source (% of 77.2 77.2 77.2 .. 77.2 89.0 83.9 population with access) Mortality rate, infant (per 22.9 22.6 22.2 21.8 22.4 14.5 32.0 1,000 live births) Education School enrollment, 93.9 97.9 99.8 .. 74.6 47.4 preprimary (% gross) School enrollment, primary 114.4 113.9 114.3 .. 114.2 106.7 104.7 (% gross) School enrollment, .. .. .. .. 88.4 76.1 secondary (% gross) Population 2,273,60 7,312,30 Population, total (Millions) 563,513 575,504 587,482 599,419 581,480 9,956 0,570 Population growth (annual %) 2.1 2.1 2.1 2.0 2.1 0.7 1.2 Urban population (% of total) 21.4 21.9 22.3 22.8 22.1 56.2 53.6 Poverty Poverty headcount ratio at $1.90 a day (2011 PPP) (% 25.1 .. .. .. 3.7 10.7 of pop) Poverty headcount ratio at national poverty lines (% of 12.7 .. .. .. 12.7 pop) Rural poverty headcount ratio at national poverty lines .. .. .. .. (% of rural pop) Urban poverty headcount ratio at national poverty lines .. .. .. .. (% of urban pop) GINI index (World Bank 37.0 .. .. .. 37.0 estimate) Source: WB Development Data Platform as of 3/1/18 *International Monetary Fund, World Economic Outlook Database, October 2017 ** Actual data only available up to FY16 Annexes CLR Review 35 Independent Evaluation Group Annex Table 12: List of IFC Investments in Solomon Islands Investments Committed in FY13-FY17 Project Cmt Project Primary Sector Project Original Original Original Loan Equity Net Net Loan Net Comm ID FY Status Name Size Loan Equity CMT Cancel Cancel Equity Agriculture and 38435 2017 Active 60,000 5,000 - 5,000 - - 5,000 - 5,000 Forestry Agriculture and 32053 2014 Active 10,000 10,000 - 10,000 1,000 - 9,000 - 9,000 Forestry Sub-Total 70,000 15,000 - 15,000 1,000 - 14,000 - 14,000 Investments Committed pre-FY13 but active during FY13-17 Project CMT Project Primary Sector Project Original Original Original Loan Equity Net Net Loan Net Comm ID FY Status Name Size Loan Equity CMT Cancel Cancel Equity Sub-Total - - - - - - - - - TOTAL 70,000 15,000 - 15,000 1,000 - 14,000 - 14,000 Source: IFC-MIS Extract as of 12/31/17 Annexes CLR Review 36 Independent Evaluation Group Annex Table 13: List of IFC Advisory Services in Solomon Islands Advisory Services Approved in FY13-17 Impl Impl Primary Project Total Funds, Project Name Start End Project Status Business ID US$ FY FY Line 600678 ANZ Mobile Banking 2015 2019 ACTIVE FIG 448,479 600678 ANZ Mobile Banking 2015 2019 ACTIVE FIG 358,783 600678 ANZ Mobile Banking 2015 2019 ACTIVE FIG 358,783 600678 ANZ Mobile Banking 2015 2019 ACTIVE FIG 358,783 600678 ANZ Mobile Banking 2015 2019 ACTIVE FIG 269,087 Pacific Islands Tuna Sector 597367 2014 2018 ACTIVE MAS 1,436,541 Program Pacific Islands Tuna Sector 597367 2014 2018 ACTIVE MAS 359,135 Program Pacific Investment Climate 597507 2014 2018 ACTIVE TAC 2,088,528 Rapid Response BSP Solomon Islands Mobile 599984 2014 2018 ACTIVE FIG 1,416,012 Banking Solomon Islands Business 587627 2013 2015 TERMINATED IC 1,156,427 Taxation Sub-Total 8,250,558 Advisory Services Approved pre-FY13 but active during FY13-17 Impl Impl Primary Project Total Funds, Project Name Start End Project Status Business ID US$ FY FY Line 586347 Gold Ridge SCI 2012 2014 TERMINATED SBA 411,563 DEVCO Pacific PPP Business 596487 2012 2014 CLOSED CAS 184,000 Promotion Budget Solomon Islands Tina River 28681 2010 2018 ACTIVE CAS 3,041,158 Hydropower IPP Pacific Telecommunication 574887 2010 2013 CLOSED SBA 481,500 Impact Study Sub-Total 4,118,221 TOTAL 12,368,779 Source: IFC AS Data as of 1/31/18 Annexes CLR Review 37 Independent Evaluation Group Annex Table 14: IFC net commitment activity in Solomon Islands, FY13 - FY17 2013 2014 2015 2016 2017 Total Agribusiness & Animal 10,000,000 - (1,000,000) 5,000,000 14,000,000 Forestry Protein - Total 10,000,000 - (1,000,000) 5,000,000 14,000,000 - Source: IFC MIS as of 3/8/18 Annex Table 15: List of Active MIGA Activities in Solomon Islands, FY13-17 Max Project ID Contract Enterprise FY Sector Investor Gross Status Issuance No Activities Total - Source: MIGA 3/8/18