The World Bank Report No: ISR13930 Implementation Status & Results Africa Improved Investment Climate within the Organization for the Harmonization of Business Law in Africa (OHADA) (P126663) Public Disclosure Copy Operation Name: Improved Investment Climate within the Organization for the Project Stage: Implementation Seq.No: 4 Status: ARCHIVED Archive Date: 12-Jul-2014 Harmonization of Business Law in Africa (OHADA) (P126663) Country: Africa Approval FY: 2012 Product Line: IBRD/IDA Region: AFRICA Lending Instrument: Technical Assistance Loan Implementing Agency(ies): Key Dates Board Approval Date 26-Jun-2012 Original Closing Date 30-Jun-2017 Planned Mid Term Review Date 11-Nov-2014 Last Archived ISR Date 03-Jan-2014 Effectiveness Date 13-Nov-2012 Revised Closing Date 30-Jun-2017 Actual Mid Term Review Date Project Development Objectives Project Development Objective (from Project Appraisal Document) The project development objective is to strengthen OHADA’s institutional capacity to support, in its member countries, selected aspects of investment climate reforms, including improved corporate financial reporting. Has the Project Development Objective been changed since Board Approval of the Project? Yes No Component(s) Component Name Component Cost Component 1: Institutional Strengthening of the OHADA Permanent Secretariat and Project 4.50 Implementation Support. Component 2: Institutional Strengthening the capacity of the Joint Court of Justice and Arbitration 3.60 (CCJA) and Regional Superior Sch ool for the Magistracy (ERSUMA) Component 3: Improving Corporate Financial Reporting 6.40 Public Disclosure Copy Overall Ratings Previous Rating Current Rating Progress towards achievement of PDO Satisfactory Satisfactory Overall Implementation Progress (IP) Satisfactory Moderately Satisfactory Overall Risk Rating Moderate Moderate Implementation Status Overview The project achieved a major milestone in supporting the adoption the Uniform Act on Commercial Companies on February 4, 2014. Following the adoption of the Law, which entered Page 1 of 5 The World Bank Report No: ISR13930 into force on May 5, 2014, investors and international business law firms all concur that the new legislation took a very important step toward increasing investments in OHADA countries. For example, Shearman & Sterling, a leading U.S. corporate law firm, stated that the “Revised Code adds tailwind to a fast developing market and further incentivizes investors, including private equity investors, to enter the dynamic African markets”. Public Disclosure Copy Beyond this impact, the adoption of the Uniform Act on Commercial Companies also allows the Project to achieve 1 of the 3 performance indicators of Component 1 a year ahead of schedule, as set out in the project results framework. This indicator measures the number of Uniform Acts revised or newly approved. Moreover, the adoption of the Uniform Act on Commercial Companies establishes a solid foundation for the full realization of the second PDO indicator, which measures the number of newly registered companies in the OHADA member states. Despite the undeniable progress made towards achieving the goal and meeting one of the project’s objectives ahead of schedule, it is worth noting that these advances were made at the expense of the implementation of a wider range of project activities. This is due to the fact that the consensus building and advocacy required to ensure the adoption of the Uniform Act in Commercial Companies took significant amounts of time and resources away from other activities both at OHADA and the joint Bank/IFC task team. As a result of the slower than planned implementation pace for project a broader range of project's activities, the overall implementation progress and progress towards meeting the Project Development Objective are downgraded to moderately satisfactory. Locations Country First Administrative Division Location Planned Actual Cameroon Centre Region Yaounde ✔ Results Project Development Objective Indicators Indicator Name Core Unit of Measure Baseline Current End Target PDO - Indicator 1: Number of commercial Number Value 0.00 85.00 120.00 disputes referred to alternative dispute Date 26-Jun-2012 14-Feb-2014 30-Apr-2017 resolution mechanisms within OHADA; of Comments This indicator is progressing which are resolved as expected. PDO - Indicator 2: Number of newly registered Number Value 0.00 0.00 10000.00 companies within OHADA member countries Date 26-Jun-2013 03-Feb-2014 30-Apr-2017 accessible in the regional RCCM Comments The number was not available Public Disclosure Copy during the mission. However, the approval of the Uniform Act on Commercial companies has laid a solid foundation to see the number increase very quickly. PDO - Indicator 3: Number of Professional Number Value 3.00 3.00 6.00 Accountancy Organizations admitted as Date 26-Jun-2012 12-Dec-2013 30-Apr-2017 members of IFAC Comments This indicator is not yet expected to register any Page 2 of 5 The World Bank Report No: ISR13930 change, as per the results framework. Direct Project Beneficiaries, of which female Number Value 0.00 0.00 13145.00 Public Disclosure Copy Sub Type Supplemental Intermediate Results Indicators Indicator Name Core Unit of Measure Baseline Current End Target Indicator 1 - Component 1 Number of Number Value 0.00 0.00 2000.00 Registered Users of the Digital Library Date 26-Jun-2012 10-Feb-2014 30-Apr-2017 Comments Up to the end of this year, this indicator is expected to be at 0 since the digital law library has not yet been set up. Indicator 2 Component 1: Number of Uniform Number Value 0.00 1.00 5.00 Acts Revised or Newly Adopted Date 26-Jun-2012 04-Feb-2014 30-Apr-2017 Comments This performance target has Preparatory work is under been met a year ahead of way to develop and approve schedule. additional Uniform Acts. Indicator 3 Component 1: Percentage of Percentage Value 40.00 60.00 75.00 Governements that contributes to the OHADA Date 26-Jun-2012 10-Feb-2014 30-Apr-2017 oprerational budget on a regular basis Comments This may increase and would be confirmed at the end of the OHADA council of Ministers meeting, which is ending on June 14 Indicator 1 Component 2: The Uniform Act on Text Value NO No yet. YES Abitration is updated Date 26-Jun-2012 18-Dec-2012 30-Apr-2017 Comments However, the TORs to recruit Public Disclosure Copy the technical assistance to carry out this work is being drafted. Indicator 2 Component 2: The regional RCCM Number Value 0.00 0.00 9.00 is operational and connected to several Date 26-Jun-2012 11-Feb-2013 30-Apr-2017 computerized national registries Comments The regional registry is not yet expected to be operational at this stage in the results framework. OHADA is currently hiring the Page 3 of 5 The World Bank Report No: ISR13930 Information Technology firm, which will develop the software and applications to interconnect the regional Public Disclosure Copy registry to the national registries. Indicator 3 Component 2: Number of Number Value 798.00 798.00 2900.00 Professionals trained by ERSUMA Date 26-Jun-2012 04-Feb-2013 30-Apr-2017 Comments At this stage, ERSUMA needs to first develop good curriculum prior to delivering the training. Indicator 1 -Component 3:Percentage of Percentage Value 0.00 0.00 75.00 audited financial statements Public Interest Date 26-Jun-2012 11-Feb-2013 30-Apr-2017 Entities (PIEs) compliant International Financial Comments The percentage of audited Reporting Standards (IFRS) & International Standards Auditing ISA financial statements compliant with IFRs is not yet expected to be operational at this stage in the results framework. Indicator 2 - Component 3:The IFRS, the ISA, Text Value NO NOT YET YES and the IFAC's code of ethics have been Date 26-Jun-2012 11-Feb-2013 30-Apr-2017 adopted Comments This indicator is expected to show progress on year 4 since it first requires to develop Code of ethics first. Indicator 3 - Component 3: Professional Number Value 0.00 0.00 35.00 accountants are qualified through the new Date 26-Jun-2012 18-Dec-2012 30-Apr-2017 regional curriculum Comments This indicator is expected to show progress on year 4 since it first requires to develop the regional Public Disclosure Copy curriculum in accountancy. Data on Financial Performance (as of 27-May-2014) Financial Agreement(s) Key Dates Project Ln/Cr/Tf Status Approval Date Signing Date Effectiveness Date Original Closing Date Revised Closing Date P126663 IDA-H7990 Effective 26-Jun-2012 25-Oct-2012 13-Nov-2012 30-Jun-2017 30-Jun-2017 Disbursements (in Millions) Page 4 of 5 The World Bank Report No: ISR13930 Project Ln/Cr/Tf Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P126663 IDA-H7990 Effective XDR 9.70 9.70 0.00 0.98 8.72 10.00 Public Disclosure Copy Disbursement Graph Key Decisions Regarding Implementation There are no key decisions for disclosure. Restructuring History There has been no restructuring to date. Related Projects Public Disclosure Copy There are no related projects. Page 5 of 5