The World Bank Report No: ISR9425 Implementation Status & Results Burkina Faso Decentralized Urban Capacity Building Project (P084027) Public Disclosure Copy Operation Name: Decentralized Urban Capacity Building Project (P084027) Project Stage: Implementation Seq.No: 12 Status: ARCHIVED Archive Date: 10-Feb-2013 Country: Burkina Faso Approval FY: 2007 Product Line: IBRD/IDA Region: AFRICA Lending Instrument: Technical Assistance Loan Implementing Agency(ies): Key Dates Board Approval Date 29-May-2007 Original Closing Date 31-Jan-2013 Planned Mid Term Review Date Last Archived ISR Date 17-Nov-2012 Effectiveness Date 30-Nov-2007 Revised Closing Date 31-Jan-2013 Actual Mid Term Review Date 12-Oct-2010 Project Development Objectives Project Development Objective (from Project Appraisal Document) The development objective of the projet is to strengthen the delivery of urban services at the municipal level with special emphasis on Ouagadougou, Bobo-Dioulasso, Koudougou, Banfora, Ouahigouya and Kaya. Has the Project Development Objective been changed since Board Approval of the Project? Yes No Component(s) Component Name Component Cost Municipal Support programs 4.30 Support to urban development institutions and stakeholders 2.60 Project management, technical assistance and M&E 1.70 Overall Ratings Previous Rating Current Rating Public Disclosure Copy Progress towards achievement of PDO Satisfactory Moderately Satisfactory Overall Implementation Progress (IP) Moderately Satisfactory Moderately Satisfactory Overall Risk Rating Low Implementation Status Overview This is the last Implementation Status Report update before the project closing to reflect the overall project performance, including the project outcomes. This update also reflects the outcomes of a project workshop including all held from December 27-28, 2012. The objective of the workshop was to take stock of the results framework, assess component outcomes and review project implementation before project closing on January 31, 2013. At the end of the operation, the project objective development (PDO) has been achieved. Target values for both municipal revenue collection and budget spending on investment and Page 1 of 9 The World Bank Report No: ISR9425 maintenance have been met and in many cases exceeded. The PDO remains consistent and relevant with the Borrower’s urban development challenges as reflected in the National Development Plan and the Bank Country Assistance Strategy. The project had a disbursement rate of 73% as of January 12, 2013. Projected disbursement rate at end of grace period (May 31, 2013) is expected to be 88%. The project recorded Public Disclosure Copy 33% disbursement rate at the mid-term review in October 2010. After mid-term review and subsequent re-organization of activities in October 2010, the project activities were focused on critical areas. A specific action plan was developed and successfully implemented, resulting in improved implementation. For Component 1, the Municipal Support Program, performance is satisfactory for two out of five indicators. All six cities have adopted and are using transparent, standardized, and efficient budget management procedures as specified in administrative management procedures manual. Following the effective implementation, the manual has been rolled out nationwide and all 351 urban and rural communes of the country are now using the manual. Street addressing has been completed at 89% in 2011 against an original target of 80%. However, only the first generation of the six city contracts have been signed against 19 expected. This was a result of the phasing out of the municipal contract approach in 2010 following the introduction of the Permanent Fund for local collectivities development (FPDCT). The remaining 13 cities did not develop contracts because they had benefitted from the reform of the fiscal transfer system which provided them with direct transfers. Finally, municipalities’ budget allocations did provided adequate infrastructure maintenance according to the rates listed in city contracts – average increases in budget spent on maintenance and infrastructure was more than 40% per city in 2011 (and has been consistently exceeding the baseline in this area), compared to the baseline. The increases in revenues from the Informal Sector Contribution tax (CSI – Contribution du secteur informel) have been satisfactory only for 2012. The results are not fully comparable to the baseline since there was a change in size and boundaries of the urban areas leading to a reduction in the taxation potential for CSI. However, the combined approach of street addressing and tax collection has triggered an overall improved performance and has improved local revenue collection, as reflected in the increase of municipal revenue in the 6 target cities increasing from 8,342 million CFAF at project start to 17,324 million CFAF by completion. Beyond the direct result and at the strategic level, the component has contributed to strengthen: (i) the budget support mechanism and financial transfer to local governments through the support to the creation of the FPDCT (Permanent Development Fund for Local Governments) and support to preparation of municipal contracts and implementation, and (ii) the capacities of urban communes to deliver services (financial, administrative, organizational). The operational achievements consist mainly in (i) significant capacity strengthening at the municipal level with respect to mainstreaming of urban planning and municipal management mechanisms in 13 provincial capitals through development of municipal audits, acquisition of goods, and access to training, (ii) the development of a software that integrates national and local finances software and improves municipal financial management at the central government level; and training for staff in the 13 provincial capitals, (iii) consolidation of the national street addressing program and roll out of the program in 6 municipalities, and (iv) the implementation of the urban information system. For Component 2, the results are satisfactory for 2 of 3 indicators (urban master plans for 12 cities and development and dissemination fo financial ratio guides), with one activity (land titling) covered in a different project implemented by IFC. Main outputs include: (i) providing 12 municipalities with urban master plans (SDAU) which are fundamental for management of the urban areas, in addition to the city Ouagadougou which had already completed the “Grand Ouagadogou Master Plan�, (ii) improved financial management improvement through the development and dissemination of financial Public Disclosure Copy guidelines, as well as training for the municipal staff in 49 cities; (iii) capacity strengthening at the central level aiming at supporting the municipalities through comprehensive support provided to the Ministry of Territorial Administration and Decentralization (MATD), Ministry of Finance and Budget (MFB), Ministry of Housing and Urban Planning (MHU) and the Association of Municipalities of Burkina Faso (AMBF), including goods and training. On the other hand, the project has not carried out any activities related to securing land titling for citizens in cities. These activities were dropped as it was supported by the IFC operations pilot program "Doing Business". The Doing Business program in Burkina has worked from 2007 to 2011 on the issue of land properties, and more specifically on recording the procedures necessary for a business to purchase a property from another business and to formally transfer the property title to the buyer’s name. This was very close to the Project’s planned activity to extend the pilot operation on issuance of land ownership document (Land Title or Occupancy Permit). The IFC’s results on the matter consist in (i) simplification of land title obtaining procedures and (ii) improving the land title delivering from 11 in 2006 to 4503 in 2011 at the national level, this is to say largely beyond the target 75% of the urban project. Page 2 of 9 The World Bank Report No: ISR9425 At the beginning of the project, project management and implementation was partially constrained by capacity constraints, insufficient coordination and lack of effective collaboration within and between the implementing agencies. However, following the reorganization of activities as part of the midterm review in 2010, project management improved significantly. With regards to M&E, the project faced some initial challenges in collecting reliable data. However, these constraints were addressed by hiring on an M&E specialist. Public Disclosure Copy In view of all the above, the PDO rating is moderately satisfactory. Locations Country First Administrative Division Location Planned Actual Burkina-Faso Plateau-Central Ziniare Burkina-Faso Centre-Est Tenkodogo Burkina-Faso Nord Ouahigouya Burkina-Faso Centre Ouagadougou Burkina-Faso Centre-Sud Manga Burkina-Faso Centre-Ouest Koudougou Burkina-Faso Centre-Nord Kaya Burkina-Faso Est Fada N'Gourma Burkina-Faso Sahel Dori Burkina-Faso Boucle du Mouhoun Dedougou Burkina-Faso Hauts-Bassins Bobo-Dioulasso Burkina-Faso Cascades Banfora Burkina-Faso Sud-Ouest Gaoua Results Public Disclosure Copy Project Development Objective Indicators Indicator Name Core Unit of Measure Baseline Current End Target Municipal budget spent on infrastructure Percentage Value investments and maintenance (KPI) Date 31-Dec-2006 29-Jan-2013 31-Jan-2013 Comments Kaya Percentage Value 10.00 53.79 21.00 Sub Type Date 31-Dec-2006 29-Jan-2013 31-Jan-2013 Page 3 of 9 The World Bank Report No: ISR9425 Breakdown Comments The indicator is latest available for 2011. Indicator values for 2012 will be available by March 2013. Public Disclosure Copy Ouahigouya Percentage Value 17.00 65.12 25.00 Sub Type Date 31-Dec-2006 29-Jan-2013 31-Jan-2013 Breakdown Comments The indicator is latest available for 2011. Indicator values for 2012 will be available by March 2013. Banfora Percentage Value 25.00 44.20 25.00 Sub Type Date 31-Dec-2006 29-Jan-2013 31-Jan-2013 Breakdown Comments The indicator is latest available for 2011. Indicator values for 2012 will be available by March 2013. Koudougou Percentage Value 13.00 37.44 21.00 Sub Type Date 31-Dec-2006 29-Jan-2013 31-Jan-2013 Breakdown Comments The indicator is latest available for 2011. Indicator values for 2012 will be available by March 2013. Bob-Dioulasso Percentage Value 12.00 34.37 22.00 Sub Type Date 31-Dec-2006 29-Jan-2013 31-Jan-2013 Breakdown Comments The indicator is latest available for 2011. Indicator values for 2012 will be available by March 2013. Ouagadougou Percentage Value 25.00 33.16 25.00 Sub Type Date 31-Dec-2006 29-Jan-2013 31-Jan-2013 Public Disclosure Copy Breakdown Comments 2002-04 The indicator is latest available for 2011. Indicator values for 2012 will be available by March 2013. Municipal revenue increased (KPI) Percentage Value Date 31-Dec-2006 29-Jan-2013 31-Jan-2013 Comments Average 2003-05 CFAF 8,342 CFAF 17,324 million CFAF 11,472 million million Ougadougou Percentage Value 0.00 105.37 25.00 Page 4 of 9 The World Bank Report No: ISR9425 Sub Type Date 31-Dec-2006 29-Jan-2013 31-Jan-2013 Breakdown Comments CFAF 5,648 mio The indicator is latest available for 2011. Indicator Public Disclosure Copy values for 2012 will be available by March 2013. Kaya Percentage Value 0.00 28.51 40.00 Sub Type Date 31-Dec-2006 29-Jan-2013 31-Jan-2013 Breakdown Comments CFAF 131 mio The indicator is latest available for 2011. Indicator values for 2012 will be available by March 2013. Ouahigouya Percentage Value 0.00 19.42 40.00 Sub Type Date 31-Dec-2006 29-Jan-2013 31-Jan-2013 Breakdown Comments CFAF 188 mio The indicator is latest available for 2011. Indicator values for 2012 will be available by March 2013. Banfora Percentage Value 0.00 80.05 50.00 Sub Type Date 31-Dec-2006 29-Jan-2013 31-Jan-2013 Breakdown Comments CFAF 337 million The indicator is latest available for 2011. Indicator values for 2012 will be available by March 2013. Koudougou Percentage Value 0.00 49.74 50.00 Sub Type Date 31-Dec-2006 29-Jan-2013 31-Jan-2013 Breakdown Comments CFAF 262 mio The indicator is latest available for 2011. Indicator values for 2012 will be available by March 2013. Bobo-Dioulasso Percentage Value 0.00 50.76 40.00 Public Disclosure Copy Sub Type Date 31-Dec-2006 29-Jan-2013 31-Jan-2013 Breakdown Comments CFAF 1,777 mio The indicator is latest available for 2011. Indicator values for 2012 will be available by March 2013. Intermediate Results Indicators Page 5 of 9 The World Bank Report No: ISR9425 Indicator Name Core Unit of Measure Baseline Current End Target Municipalities adopted budget management Number Value 0.00 49.00 6.00 procedures as specified in the administrative Date 31-Dec-2006 29-Jan-2013 31-Jan-2013 Public Disclosure Copy management procedure manual Comments Since 2010, these are all forty nine (49) urban municipalities of the country, beyond the six (6) beneficiaries communes, which have adopted and are using transparent, standardized, and efficient budget management procedures, as specified in administrative management procedures manual and verified by audit. Municipal contracts developed and signed by Number Value 0.00 6.00 19.00 the government and the cities Date 31-Dec-2006 29-Jan-2013 31-Jan-2013 Comments The indicator is latest Please note that Government available for 2011. Please dropped the Municipal note that Government Contract approach in 2010 dropped the Municipal following the roll out of the Contract approach in 2010 FPDCT - therefore the original following the roll out of the target of 19 contracts is no FPDCT - therefore the original longer relevant. target of 19 contracts is no longer relevant. Budget execution of priority maintenance Percentage Value 0.00 3.00 95.00 programs as specified in the annexes of the Date 31-Dec-2006 29-Jan-2013 31-Jan-2013 municipal contract Comments The indicator is latest available for 2011. Indicator values for 2012 will be available by March 2013. Public Disclosure Copy Budget execution for the street addressing Percentage Value 0.00 90.00 100.00 activities Date 31-Dec-2006 29-Jan-2013 31-Jan-2013 Comments The indicator is latest available for 2011. Indicator values for 2012 will be available by March 2013. Revenue from the Informal Sector Contribution Percentage Value 0.00 -16.00 (CSI) Date 31-Dec-2006 29-Jan-2013 31-Jan-2013 Page 6 of 9 The World Bank Report No: ISR9425 Comments total average 2004-06: CFAF The indicator is latest CFAF 1,110 mio 872 mio available for 2011. Indicator values for 2012 will be available by March 2011. Public Disclosure Copy Please note that compared to the baseline, the tax potential of urban areas was reduced following changes in urban boundaries. Ougadougou Percentage Value 0.00 -13.70 25.00 Sub Type Date 31-Dec-2006 29-Jan-2013 31-Jan-2013 Breakdown Comments 580m CFAF The indicator is latest available for 2011. The indicator for 2012 will be available by March 2013. Kaya Percentage Value 0.00 -18.90 50.00 Sub Type Date 31-Dec-2006 29-Jan-2013 31-Jan-2013 Breakdown Comments 14,613,771 CFAF The indicator is latest available for 2011. The indicator for 2012 will be available by March 2013. Ouahigouya Percentage Value 0.00 -29.20 50.00 Sub Type Date 31-Dec-2006 29-Jan-2019 31-Jan-2013 Breakdown Comments 22,281,317 CFAF The indicator is latest available for 2010. The indicator for 2012 will be available by March 2013. Banfora Percentage Value 0.00 50.20 40.00 Sub Type Date 31-Dec-2006 29-Jan-2013 31-Jan-2013 Breakdown Comments 26,437,230 CFAF The indicator is latest available for 2011. The Public Disclosure Copy indicator for 2012 will be available by March 2013. Koudougou Percentage Value 0.00 -37.90 40.00 Sub Type Date 31-Dec-2006 29-Jan-2013 31-Jan-2013 Breakdown Comments 35,680,439 CFAF The indicator is latest available for 2011. The indicator for 2012 will be available by March 2013. Bobo-Dioulasso Percentage Value 0.00 50.30 25.00 Page 7 of 9 The World Bank Report No: ISR9425 Sub Type Date 31-Dec-2006 29-Jan-2013 31-Jan-2013 Breakdown Comments 192,319,611 CFAF The indicator is latest available for 2011. The Public Disclosure Copy indicator for 2012 will be available by March 2013. Urban masterplans developed Number Value 1.00 12.00 13.00 Date 31-Dec-2006 29-Jan-2013 31-Jan-2013 Comments 12 Urban master plans are completed. The City of Ouagadougou has not been taken account because the city completed an urban master plan independently from the project. Budget execution of the pilot operation on Percentage Value 0.00 100.00 occupancy permits and land Date 31-Dec-2006 29-Jan-2013 31-Jan-2013 Comments No activity has been undertaken for this indicator. IFC activities on the same indicator were undertaken as part of “Doing better Business". The main results of the activity were: (i) simplification of land titling procedures, and (ii) improving delivery of land titles from 11 in 2006 to 4,503 in 2011. Financial ratio guide for municipal finances Number Value 0.00 3.00 4.00 published Date 31-Dec-2006 29-Jan-2013 31-Jan-2013 Comments 3 guides completed by 2012. Public Disclosure Copy Data on Financial Performance (as of 25-Jan-2013) Financial Agreement(s) Key Dates Project Ln/Cr/Tf Status Approval Date Signing Date Effectiveness Date Original Closing Date Revised Closing Date P084027 IDA-43110 Effective 29-May-2007 22-Jun-2007 30-Nov-2007 31-Jan-2013 31-Jan-2013 Disbursements (in Millions) Project Ln/Cr/Tf Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed Page 8 of 9 The World Bank Report No: ISR9425 P084027 IDA-43110 Effective XDR 6.70 6.70 0.00 5.00 1.70 75.00 Disbursement Graph Public Disclosure Copy Key Decisions Regarding Implementation - Restructuring History Level two Approved on 28-Jan-2013 Related Projects There are no related projects. Public Disclosure Copy Page 9 of 9