Public Disclosure Copy The World Bank Implementation Status & Results Report Togo - Financial Sector and Governance Project (P111064) Togo - Financial Sector and Governance Project (P111064) AFRICA | Togo | Finance & Markets Global Practice | IBRD/IDA | Specific Investment Loan | FY 2009 | Seq No: 14 | ARCHIVED on 22-Dec-2015 | ISR21759 | Implementing Agencies: Ministry of Finance Key Dates Key Project Dates Bank Approval Date:31-Mar-2009 Effectiveness Date:11-Aug-2009 Planned Mid Term Review Date:01-Mar-2012 Actual Mid-Term Review Date:29-May-2012 Original Closing Date:31-Dec-2014 Revised Closing Date:30-Jun-2016 Project Development Objectives Project Development Objective (from Project Appraisal Document) The project development objective is to improve financial sector stability by supporting the Government financial sector reformprogram. Financial sector restructuring will lead to more efficient resource allocation towards poverty reducing and growthinducing sectors. The project will provide technical assistance to various stakeholders to support the financial sector reformprogram of the Government of Togo. Has the Project Development Objective been changed since Board Approval of the Project Objective? Yes Board Approved Revised Project Development Objective (If project is formally restructured)PHRPDODEL The objective of the Project is to improve the stability of specific segments of the Recipient’s financial sector to support the Recipient’s financial sector reform program. Components Name Banking sector restructuring:(Cost $3.90 M) Microfinance sector strengthening:(Cost $2.70 M) Reforming the pension sector:(Cost $1.80 M) Support to the implementation of reforms in financial and private sectors:(Cost $1.10 M) Project implementation:(Cost $1.40 M) Project Preparation Advance:(Cost $0.95 M) Overall Ratings Name Previous Rating Current Rating 12/22/2015 Page 1 of 11 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Togo - Financial Sector and Governance Project (P111064) Progress towards achievement of PDO  Moderately Unsatisfactory  Moderately Unsatisfactory Overall Implementation Progress (IP)  Moderately Satisfactory  Moderately Satisfactory Overall Risk Rating  --  Substantial Implementation Status and Key Decisions The FSGP (US$12 million) effective since August 2009 encompasses four components: (i) Banking sector restructuring; (ii) Strengthening of the microfinance sector; (iii) Pension Sector reforms and (iv) Support to the implementation of reforms in the financial and private sectors. In March 2013, a Level 1 restructuring was completed (including PDO reformulation). Due to delays in activities implementation (support to microfinance and CRT), the FSGP was extended until June 30, 2016. In August 2015, a Level 2 restructuring (reallocation between disbursment categories) has been proceeded. The team took advantage of this restructuring to slightly modify the results framwork (new intermediate indictor on the adoption of the CASIMEC code of ethic). The main results by components are: - Component 1: Two (BTD and BIA) out of four public banks were successfully privatized. One of the remaining banks to be privatized is currently under receivership (‘’Administration provisoire’’). The last FSGP activity on the component 1 is on the set-up of the UTB procedure manual. - Component 2: The microfinance sector remains vulnerable because of poor supervision and lack of enforcement. The CASIMEC is currently performing further on-site inspection missions funded by the FSGP. Aa code of ethics for the CASIMEC has been drafted that should be approved by the end of the Project. - Component 3: Unlikely to CNSS, the CRT reform has not been completed so far. The reform will take time and it requires the completion of two complementary keys actions: a) adoption of the law on parameter modification by decree and b) agreement on the modification of the parameters. The PSFG is supporting these objectives through the recruitment of a consultant to support the overall reform process of the CRT public pension structure and by the up-date of the actuarial study carried out in 2011. - Component 4: The MoF Permanent Reform Secretariate is fully operational. In Q2 2016, a workshop should be organised to disseminate the results of the study on corporate governance. As of December 1st, 2015, the disbursement rate is 92 percent. 12/22/2015 Page 2 of 11 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Togo - Financial Sector and Governance Project (P111064) 12/22/2015 Page 3 of 11 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Togo - Financial Sector and Governance Project (P111064) Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance  --  --  High Macroeconomic  --  --  Substantial Sector Strategies and Policies  --  --  Substantial Technical Design of Project or Program  --  --  Moderate Institutional Capacity for Implementation and Sustainability  --  --  Moderate Fiduciary  --  --  Moderate Environment and Social  --  --  Substantial Stakeholders  --  --  Moderate Other  --  --  -- Overall  --  --  Substantial Results Project Development Objective Indicators PHINDPDOTBL  BTCI and UTB meet key prudential norms (solvency) by 2009 and every year until the end of the project (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Achieved for UTB Achieved for UTB Value No yes Not achieved for BTCI Not achieved for BTCI Date 01-Dec-2008 15-Jun-2015 30-Jun-2015 30-Jun-2016 PHINDPDOTBL After the recapitalization of Togolese commercial banks (BTCI, UTB and BIA), the Government will no longer contribute to the absorpt ion of losses, recapitalization and liquidity of commercial banks. (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target 12/22/2015 Page 4 of 11 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Togo - Financial Sector and Governance Project (P111064) Value Not applicable True True True Date 01-Dec-2008 15-Jun-2015 01-Dec-2015 30-Jun-2016 PHINDPDOTBL  Percentage of MFIs (with outstanding loans over 1 billion CFAF) meet key prudential ratio (liquidity ratio and long-medium term asset/liability ratios) by end of project (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target (No prudential ratios yet Value 50% 50% 80% defined by BCEAO) Date 01-Dec-2008 31-Mar-2015 31-Mar-2015 30-Jun-2016 PHINDPDOTBL  Project direct beneficiaries of which female (Number, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 3785.00 3785.00 2000.00 PHINDPDOTBL  Percentage of female beneficiaries (Number, Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 15.00 15.00 30.00 Date -- -- -- -- Overall Comments Intermediate Results Indicators 12/22/2015 Page 5 of 11 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Togo - Financial Sector and Governance Project (P111064) PHINDIRITBL  BTCI and UTB have new gross NPLs below 5 percent of total loans each year (starting in 2009) (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target <5% for UTB, >5% for <5% for UTB, >5% for Below 5 Value >5% BTCI BTCI percent Date 01-Dec-2008 31-Dec-2014 31-Dec-2014 30-Jun-2016 PHINDIRITBL  BTCI and UTB meet liquidity norm by 2009 and every year until the end of the project (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target BTCI: 59.6 % Value <75% -- >75% UTB: 38.9% Date -- 31-Dec-2014 30-Jun-2015 -- PHINDIRITBL  Two out of the four targeted banks (BTCI, UTB, BIA , UTB) have entered into partnerships with strategic banking investors by June 2010, the third bank, by 2012 (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value None 2 2 2 Date 01-Dec-2008 15-Jun-2015 01-Dec-2015 30-Jun-2016 PHINDIRITBL  The agency in charge of loan recovery and of creating a secondary market for government securities is created by end 2009 and operational from 2013 (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value Not created Operational Operational Operational Date 01-Dec-2008 15-Jun-2015 01-Dec-2015 30-Jun-2016 12/22/2015 Page 6 of 11 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Togo - Financial Sector and Governance Project (P111064) PHINDIRITBL  At least 75 percent of MFIs transmit statistical data in compliance with new accounting plan (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 85.00 85.00 75.00 Date 01-Dec-2008 31-Dec-2013 31-Dec-2013 30-Jun-2016 PHINDIRITBL At least 75 percent of MFIs (with outstanding loans over 1 billion CFAF) have gross a Portfolio at Risk over 90 days (PAR>90) below5 percent by the end of the project (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 67% 16,67% 8.3% (1/12) 75% Date 01-Dec-2008 31-Mar-2015 30-Sep-2015 30-Jun-2016 PHINDIRITBL  All MFIs with outstanding loans over 1 billion CFAF) have their financial statements audited and certified yearly by BCEAO registered auditors (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value Not yet audited or certified 50% 50% 100% Date 01-Dec-2008 31-Jan-2014 31-Dec-2014 30-Jun-2016 PHINDIRITBL At least 75 percent of MFIs (with outstanding loans over 1 billion CFAF) have undergone at least one transparency exercise between 2009 and 2016. (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 50% 91% 91% 75% Date 01-Dec-2008 31-Dec-2014 31-Dec-2014 30-Jun-2016 12/22/2015 Page 7 of 11 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Togo - Financial Sector and Governance Project (P111064) PHINDIRITBL  All MFIs with outstanding loans over 1 billion CFAF report their financial information on the Mix Market (www.mixmarket.org) starting in 2009 (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 83% 83.3% 41.7% 75% Date 01-Dec-2008 31-Dec-2013 30-Sep-2015 30-Jun-2016 PHINDIRITBL  CASIMEC adopts a code of ethics by the end of the project (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value N N N Y Date 01-Dec-2008 15-Jun-2015 01-Dec-2015 30-Jun-2016 PHINDIRITBL  Volume of Bank Support: Institutional Development - Microfinance (Amount(USD), Core) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 2631000.00 2631000.00 2500000.00 Date 30-Jun-2009 31-May-2015 01-Dec-2015 30-Jun-2016 PHINDIRITBL  The legal frameworks for CRT is modified according to established best practices by 2016 (in particular, parameters for contribution and payments are established through decrees) (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value not modified Not modified Not modified modified Date -- 15-Jun-2015 01-Dec-2015 30-Jun-2016 12/22/2015 Page 8 of 11 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Togo - Financial Sector and Governance Project (P111064) PHINDIRITBL  The legal frameworks for CNSS is modified according to established best practices by 2011 (in particular, parameters for contribution and payments are established through decrees) (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value Not modified Modified Modified Modified Date 01-Dec-2008 15-Jun-2015 01-Dec-2015 30-Jun-2016 PHINDIRITBL  The parameters reform CRT have been adjusted through decree according to the findings of the actuarial study by 2016 (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value Not adjusted -- Not adjusted Adjusted Date -- 15-Jun-2015 01-Dec-2015 -- PHINDIRITBL  The parameters for CNSS have been adjusted through decrees according to the findings of the actuarial studies by 2011 (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value Not adjusted Adjusted for CNSS Adjusted for CNSS Adjusted Date 01-Dec-2008 15-Jun-2015 01-Dec-2015 30-Jun-2016 PHINDIRITBL  Reform Secretariat is operational and demonstrates the ability to identify and steer key reforms in the financial and private sectors (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Established, not fully Fully Value Fully operational Fully operational operational operational Date 01-Dec-2008 15-Jun-2015 01-Dec-2015 30-Jun-2016 12/22/2015 Page 9 of 11 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Togo - Financial Sector and Governance Project (P111064) PHINDIRITBL  At least one recommendations of the Corporate governance Assessment is implemented within 6 months following the validation workshop (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value N N N Y Date -- 15-Jun-2015 01-Dec-2015 -- Overall Comments Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed Disbursed P111064 IDA-H4540 Effective XDR 8.00 8.00 0.00 7.34 0.66 92% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P111064 IDA-H4540 Effective 31-Mar-2009 23-Apr-2009 11-Aug-2009 31-Dec-2014 30-Jun-2016 Cumulative Disbursements 12/22/2015 Page 10 of 11 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Togo - Financial Sector and Governance Project (P111064) Restructuring History Level Approved on 21-Mar-2013 ,Level 2 Approved on 23-Dec-2014 ,Level 2 Approved on 13-Aug-2015 Related Project(s) There are no related projects. 12/22/2015 Page 11 of 11 Public Disclosure Copy