The World Bank Report No: ISR9248 Implementation Status & Results Africa Economic & Monetary Community of Central Africa Financial Institutions (P099833) Public Disclosure Copy Operation Name: Economic & Monetary Community of Central Africa Financial Project Stage: Implementation Seq.No: 7 Status: ARCHIVED Archive Date: 27-Jan-2013 Institutions (P099833) Country: Africa Approval FY: 2009 Product Line: IBRD/IDA Region: AFRICA Lending Instrument: Specific Investment Loan Implementing Agency(ies): Key Dates Board Approval Date 04-Dec-2008 Original Closing Date 30-Jun-2014 Planned Mid Term Review Date 11-Feb-2013 Last Archived ISR Date 10-Jul-2012 Effectiveness Date 27-Apr-2009 Revised Closing Date 30-Jun-2014 Actual Mid Term Review Date Project Development Objectives Project Development Objective (from Project Appraisal Document) The project aims to strengthen Central African regional institutions so that they can fulfill their mandates to encourage an expanded, better governed regional market, and a more transparent, better regulated and more competitive financial system. This will facilitate the re-utilization of oil revenues for investment in Central Africa. The project supports programs approved by the member governments designed to improve the efficiency of regional institutions. This will be accomplished by strengthening regional institutions. Project outcome indicators are given in Annex 3 and include increases in the percentage of foreign reserves managed regionally byBEAC, growth of investment in regional projects (primarily infrastructure investments), and increases in the percentage of banks meeting key prudential norms. Has the Project Development Objective been changed since Board Approval of the Project? Yes No Component(s) Component Name Component Cost Strengthening the BEAC 14.50 Encouraging Regional Investment Financing 15.00 Improving Regional Economic Policy Coordination, Financial Sector Supervision and Financial 14.00 Public Disclosure Copy Integrity Support for Project Implementation 3.00 Overall Ratings Previous Rating Current Rating Progress towards achievement of PDO Moderately Satisfactory Moderately Satisfactory Overall Implementation Progress (IP) Moderately Satisfactory Moderately Satisfactory Overall Risk Rating Substantial Substantial Page 1 of 6 The World Bank Report No: ISR9248 Implementation Status Overview The progress towards meeting the Project Development Objective is maintained at moderately satisfactory in light of the implementation progress, which contributes towards achieving the PDO. Public Disclosure Copy Following the project's initial slow implementation, the project has significantly improved its implementation pace over the last 12 months. The increased implementation pace has resulted in the implementation of over 30 activities and the launching of the procurement of an additional 30 activities, which are coming into implementation now and over the next few months. In light of the fact that the project has not fully made up its initial slow start, a project restructuring is envisaged for the first quarter of 2013. To that end, a restructuring mission is planned for February 2013 to adopt the corrective measures, which will enable this project to meet its development objective. Concomitantly, the project team will need to ensure that the faster implementation pace is maintained over the next 6 months. Locations Country First Administrative Division Location Planned Actual Central Afr.Rep Not Entered Central African Republic Cameroon Not Entered Republic of Cameroon Congo Not Entered Republic of the Congo Chad Not Entered Republic of Chad Results Project Development Objective Indicators Indicator Name Core Unit of Measure Baseline Current End Target Increase in percentage of foreign reserves Percentage Value 35.00 50.00 50.00 managed regionally by BEAC Date 11-Nov-2007 19-Dec-2012 30-Jun-2014 Comments BEAC manages 50% of its foreign reserves. However, this achievement cannot be Public Disclosure Copy attributed to the project since the percentage of reserve managed by BEAC was determine in an agreement between BEAC and the French authorities. The Results Framework is being revised by the stakeholders and a proposition will be made to the Bank. Page 2 of 6 The World Bank Report No: ISR9248 Banks accounting for percentage increase of Percentage Value 80.00 sector assets complying with agreed prudential Date 19-Dec-2012 30-Jun-2014 norms by end of project. Comments The indicator was originally Not updated. This percentage Banks representing 80% of Public Disclosure Copy entered incorrectly in the is not tracked by the banking sector assets complying with system. Based on the PAD, it commission (COBAC). As agreed prudential norms by should read "Banks such, it is not available. The end of project. accounting for 80% of sector task team feels that it is not assets complying with agreed the most suitable indicator to prudential norms by end of measure the impact of the project. project's assistance to COBAC. As such, the Results Framework is being reviewed by the beneficiaries to have a more relevant indicator. Growth of BDEAC financing of regional Number Value 8.20 15.70 15.00 projects. Date 31-Dec-2007 19-Dec-2012 30-Jun-2014 Comments CFA 8.2 billion for CY 2007 The level of BDEAC's investment has surpassed the target of CFA 15 billion. The task team does not feel that this indicator is suitable to measure the project's assistance to BEAC. A new performance target is being discussed with the beneficiary in preparation for the project's restructuring. Intermediate Results Indicators Indicator Name Core Unit of Measure Baseline Current End Target Monetary programming conducted at regional Text Value At national level Not yet done at a regional At regional (CEMAC) level level by Y4 level. Public Disclosure Copy Date 30-Jun-2008 03-Dec-2012 30-Jun-2014 Comments Monetary programming only Progress is being made by at national level harmonizing the type of date collecting and establishing a system which allows the relevant institution to have access to the data. Page 3 of 6 The World Bank Report No: ISR9248 Central Bank/Government paper issued by Y3 Text Value None issued now The Government of Central Bank/Government (none issued now) Cameroon some bonds which paper issued by Y3 were over subscribed. Public Disclosure Copy Date 31-Dec-2007 17-Dec-2012 30-Jun-2014 Comments The Government of Cameroon some bonds which were over subscribed. Cameron may issue more. However, a country like Equatorial Guineais unlikely to issue bonds since it has significant ability to finance its development. Cross-border electronic payments transactions Text Value (SYGMA and SYSTAC) (SYGMA and SYSTAC) in wholesale and retail systems (SYGMA and cumulative increase of 33% cumulative increase of 61% SYSTAC) cumulative increase of 33% by Y3 by Y3 by Y5. and 61% by Y5. Date 31-Dec-2011 30-Sep-2009 30-Jun-2014 Comments Not updated. The wholesale and retail system is being updated. However, it is unclear whether cross border electronic payment is the most relevant indicator to measure activities financed under the project and which have limited bearing on the increase of electronic payments. Revised and applied BDEAC's policies, Text Value Outdated policies and Revised and applied by Y3 procedures and internal controls by Y3 procedures Date 30-Sep-2008 31-May-2010 31-Dec-2011 Comments Not updated. Once M&E Public Disclosure Copy expert on-board, the Results Framework will be reviewed. All projects evaluated by BDEAC according to Text Value Non-standard policies All projects evaluated new policies by Y3. Date 30-Jun-2008 31-May-2010 31-Dec-2011 Comments Not updated. Once M&E expert on-board, the Results Framework will be reviewed. Page 4 of 6 The World Bank Report No: ISR9248 Improved portfolio performance of BDEAC, as Text Value 43% in 2007 70% by Y3 measured by increased ratio of annual Date 31-Dec-2007 31-Dec-2008 31-Dec-2011 disbursements/commitments in the preceding Comments Not updated. Once M&E year from 43% in 2007 to 70% by Y3 Public Disclosure Copy expert on-board, the Results Framework will be reviewed. New BDEAC's MIS, including accounting Text Value Lack of MIS In place by mid-term and system, substantially in place by mid-term and generating financial reports in generating financial reports in line with line with international international standards by Y5 standards by Y5 Date 30-Jun-2008 30-Mar-2012 31-Dec-2013 Comments Updated accounting plan for banks in place Text Value Outdated accounting plan In place and used by banks and used by banks by Y3 by Y3 Date 30-Jun-2008 04-Jun-2012 30-Oct-2012 Comments Plan for application of microfinance regulatory Text Value Not applied In place and applied by mid- framework and supervision system in place term review and applied by mid-term review Date 30-Jun-2008 11-Jun-2012 31-Oct-2012 Comments Data on Financial Performance (as of 07-Jan-2013) Financial Agreement(s) Key Dates Project Ln/Cr/Tf Status Approval Date Signing Date Effectiveness Date Original Closing Date Revised Closing Date P099833 IDA-45290 Effective 04-Dec-2008 27-Jan-2009 27-Apr-2009 30-Jun-2014 30-Jun-2014 P099833 IDA-H4340 Effective 04-Dec-2008 27-Jan-2009 27-Apr-2009 30-Jun-2014 30-Jun-2014 Disbursements (in Millions) Project Ln/Cr/Tf Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed Public Disclosure Copy P099833 IDA-45290 Effective XDR 20.40 20.40 0.00 6.00 14.40 29.00 P099833 IDA-H4340 Effective XDR 11.50 11.50 0.00 4.26 7.24 37.00 Disbursement Graph Page 5 of 6 The World Bank Report No: ISR9248 Public Disclosure Copy Key Decisions Regarding Implementation There are no key decisions for disclosure. Restructuring History There has been no restructuring to date. Related Projects There are no related projects. Public Disclosure Copy Page 6 of 6