PROJECT INFORMATION DOCUMENT (PID) CONCEPT STAGE Report No.: PIDC212 Public Disclosure Copy Project Name Niger - Competitiveness & Growth Support (P127204) Region AFRICA Country Niger Sector(s) General industry and trade sector (50%), Agro-industry, marketing, and trade (20%), SME Finance (15%), Central government administra tion (15%) Lending Instrument Specific Investment Loan Project ID P127204 Borrower(s) Ministry of Commerce Implementing Agency PRODEX/TFCU Environmental Category B-Partial Assessment Date PID Prepared 05-Jan-2012 Estimated Date of Appraisal Completion 11-Apr-2012 Estimated Date of Board Approval 28-Jun-2012 Concept Review Decision I. Introduction and Context Country Context Niger is a large, landlocked, mostly desert country with an area of 1.27 million square kilometers and a population of around 16 million. Niger#s population is concentrated in the areas around the Niger River in the western corner of the country bordered by Mali, Burkina Faso and Benin, and then stretches through the Sahel region all along the 1500 0 km long Nigeria#s northern border. North of this belt, the land is largely desertic. Niger#s population is growing fast with 47 percent of its population under the ageof 15. At the current rates of population growth of 3.3 percent per annum, the population would reach about 54 million by year 2050. Niger is a poor country with a limited natural and human resource base. Niger ranks 167th out of 169 countries on UNDP#s Human Development Index, with a Gross Domestic Product (GDP) per capita in Parity Purchasing Power (PPP) terms of US$680, one of the lowest in the world. The country constantly battles drought, although about 80 percent of Niger#s population depends on rain- fed agriculture and livestock and only about 12 percent of all its land is arable. Nonetheless, the exploitation of Niger#s significant mineral and oil resources could provide important economic opportunities if well managed. Public Disclosure Copy Sectoral and Institutional Context Niger s macroeconomic performance was strong in 2010. GDP growth is estimated to have reached 8 percent in 2010, buoyed by an excellent 2010 2011 harvest. The fiscal deficit improved in 2010, narrowing by 3 percentage points to about 2.5 percent of GDP, mainly stemming from a slowdown in capital expenditure owing to the drying-up of external financing in the first half of the year linked to the difficult political situation prevailing at the time. The current account deficit remained large, reflecting large imports by mining and oil companies. Relationship to CAS Preparation of a new CAS will be launched in FY12. It will be prepared to ensure alignment with the preparation of a new PRSP and deepening of harmonization and division of labor among development partners. II. Proposed Development Objective(s) Proposed Development Objective(s) (From PCN) The Project Development Objective (PDO) is to contribute to the development of selected new sources of growth through industry based investement climate reforms and improved enterprises competiveness. The related performance indicators are the increase in private investment as a result of improved business environment; and the increase in production in supported value chains/ sources of growth. Intermediate key outcome indicators would be the number of enterprises created and the number of jobs created. During project preparation the team and Government will agree on key PDO and intermediate indicators based on available baseline and Monitoring and Evaluation system. Key Results (From PCN) To be completed III. Preliminary Description Concept Description Overall approach: It appears from the various policy and strategy documents mentioned above that to support private sector-led growth, actions need to be taken in a number of mutually-supportive areas to create a minimum platform for private sector development. This platform involves a combination of elements including: (i) providing policy, regulatory, and institutional support to key government institutions involved in private sector development; (ii) supporting for technical and business management skills to improve productivity at the firm level; (ii) developing linkages with the regional/global economy; (iii) promoting a conducive business environment, including in particular, financial services; (iv) trade and investment facilitation regulations and institutions; and (iv) Public Disclosure Copy facilitating increased availability of critical infrastructure and services. However, given the low capacity and while promoting such an integrated approach, prioritization and sequencing of the reforms are vital for a successful implementation. These priority reforms to be supported by the Project would aim to develop a minimum platform of conditions conducive for the private sector to invest, and for Niger to attract more private investment in few selected high potential sectors and take advantage of the large neighboring Nigerian market by strengthening regional integration with Nigeria. The lending instrument is a Specific Investment Loan (SIL). A SIL (instead of the Technical Assistance Loan) is proposed as it is a flexible instrument that can finance the diverse activities which are needed to support the private sector, such as technical assistance, equipment and civil work, and provision of financial and non-financial services to SMEs. IV. Safeguard Policies that might apply Safeguard Policies Triggered by the Project Yes No TBD Environmental Assessment OP/BP 4.01 ✖ Natural Habitats OP/BP 4.04 ✖ Forests OP/BP 4.36 ✖ Pest Management OP 4.09 ✖ Physical Cultural Resources OP/BP 4.11 ✖ Indigenous Peoples OP/BP 4.10 ✖ Involuntary Resettlement OP/BP 4.12 ✖ Safety of Dams OP/BP 4.37 ✖ Projects on International Waterways OP/BP 7.50 ✖ Projects in Disputed Areas OP/BP 7.60 ✖ V. Tentative financing Financing Source Amount Public Disclosure Copy BORROWER/RECIPIENT 6.03 International Development Association (IDA) 50.00 LOCAL BENEFICIARIES 9.21 Total 65.24 VI. Contact point World Bank Contact: Djibrilla Adamou Issa Title: Senior Financial Specialist Tel: 1-202-473-78 Email: dissa1@worldbank.org Borrower/Client/Recipient Name: Ministry of Commerce Contact: Title: Tel: 22720723467 Email: Implementing Agencies Name: PRODEX/TFCU Contact: Title: Tel: (227) 2035-0068 Email: anpip_pip2@yahoo.fr VII. 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