The World Bank Report No: ISR15159 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: 10 Status: ARCHIVED Archive Date: 26-Jul-2014 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 27-Dec-2013 Effectiveness Date 27-Apr-2009 Revised Closing Date 29-Feb-2016 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 7 The World Bank Report No: ISR15159 Implementation Status Overview This ISR was prepared following the implementation support mission that was undertaken by the task team from May 25 to June 15, 2014 in Yaoundé, Cameroon. The mission's objective was to review, with the Project Implementation Unit and the project's beneficiaries, the Project's implementation progress since the last supervision mission in March 2013. Public Disclosure Copy The Project has maintained the faster implementation pace, which has characterized the project's implementation since mid-2012, thanks to an improvement of the quality of the packages submitted for procurement review and the pace at which the packages are submitted. In this context, the task team worked with the Project Unit and beneficiaries on a number of procurement processes that were being prepared and reviewed and approved them during the mission. Both progress towards meeting the Project Development Objective and implementation progress are rated as Moderately Satisfactory. Institutions such as BEAC, the Central Bank, COBAC, and the CEMAC Commission have accelerated their implementation pace, resulting in laying a good foundation on which to build the capacities of these institutions. To better understand the context, it is worth recalling that the project experienced a very slow implementation following effectiveness in April 2009 due to the late establishment of the PIU staff in May 2010, thus resulting in more than a 12-month disbursement lag. This disbursement lag increased between May 2010 to August 2011, since up until March 2011, there was no approved work program and budget for the project, and the PAD had not been translated into French, making it difficult for Project's beneficiaries to understand this operation. By August 2011, the Project had accumulated an 18-month disbursement lag. Following the project's initial slow implementation during its first two and half years, the project has improved its implementation pace. As envisaged in the previous ISR, the increase implementation pace has resulted in the ongoing implementation of over 30 activities and the launching of the procurement of an additional activities, which will come into implementation during the next few months. As a means to address the slow project start, the Project's closing date has been extended to February 29, 2016. This additional period will allow the implementation of activities that are ongoing and additional ones. Subject to the project maintaining its current implementation pace over the next 6 months, there would be a basis to upgrade the progress towards achieving the PDO as satisfactory. 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 Public Disclosure Copy Results Project Development Objective Indicators Page 2 of 7 The World Bank Report No: ISR15159 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 16-Jun-2014 29-Feb-2016 Public Disclosure Copy Comments BEAC manages 50% of its foreign reserves. To help strengthen BEAC's ability to manage its reserve the Project has recruited a Worldclass fund manager who is working with BEAC. Banks accounting for percentage increase of Percentage Value 80.00 sector assets complying with agreed prudential Date 16-Jun-2014 29-Feb-2016 norms by end of project. Comments The indicator was originally Not updated. This percentage Banks representing 80% of 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. Growth of BDEAC financing of regional Number Value 8.20 15.70 15.00 projects. Date 31-Dec-2007 16-Jun-2014 29-Feb-2016 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 Public Disclosure Copy BDEAC. Intermediate Results Indicators Page 3 of 7 The World Bank Report No: ISR15159 Indicator Name Core Unit of Measure Baseline Current End Target Monetary programming conducted at regional Text Value At national level At regional (CEMAC) level level by Y4 Date 30-Jun-2008 16-Jun-2014 29-Feb-2016 Public Disclosure Copy Comments Monetary programming only Substantial progress is being at national level made by harmonizing the type of date collecting and establishing a system which allows the relevant institution to have access to the data. Consulting firm has started its work. Central Bank/Government paper issued by Y3 Text Value None issued now Central Bank/Government (none issued now) paper issued by Y3 Date 31-Dec-2007 16-Jun-2014 29-Feb-2016 Comments The Government of Cameroon issued bonds which were over subscribed. Cameron may issue more. Gabon issued successfully new bills onMay 8. CFAF 10 billion were issued by tender on the regional CEMAC market. In October 2013, Chad also issued bonds.The issue carriesa 1.5 percent interest and has a three- month maturity. The issuance has been done in the context of the implementation of the CEMACregulations replacing statutory advances from the regional central bank (BEAC) with the issuance of Public Disclosure Copy Government securities to finance treasury needs. 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 16-Jun-2014 29-Feb-2016 Comments The wholesale and retail system is being updated. measure activities financed Page 4 of 7 The World Bank Report No: ISR15159 under the project and which have limited bearing on the increase of electronic payments. Public Disclosure Copy 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 16-Jun-2014 29-Feb-2016 Comments A new MIS is being purchased. At the same time, a new Human Resources strategy has been developed, and has been adopted. All projects evaluated by BDEAC according to Text Value Non-standard policies All projects evaluated new policies by Y3. Date 30-Jun-2008 16-Jun-2014 29-Feb-2016 Comments BDEAC does not have a standard policy and set of procedures to evaluate its projects in a uniform manner. The project is helping address this gap with a technical assistance. Improved portfolio performance of BDEAC, as Text Value 43% in 2007 70% by Y3 measured by increased ratio of annual Date 31-Dec-2007 02-Sep-2013 29-Feb-2016 disbursements/commitments in the preceding Comments While improving from the year from 43% in 2007 to 70% by Y3 43%, the ration is currently at 55% and falls short of the 70%target. 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 Public Disclosure Copy Date 30-Jun-2008 30-Sep-2013 29-Feb-2016 Comments The mission was at BDEAC headquarters and saw first hand that the new MIS was not in place. The mission is also concerned about internal discontent which could hamper the setting up of the MIS Page 5 of 7 The World Bank Report No: ISR15159 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-Oct-2013 29-Feb-2016 Public Disclosure Copy 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 01-Apr-2013 29-Feb-2016 Comments Data on Financial Performance (as of 25-Jun-2014) 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 29-Feb-2016 P099833 IDA-H4340 Effective 04-Dec-2008 27-Jan-2009 27-Apr-2009 30-Jun-2014 29-Feb-2016 Disbursements (in Millions) Project Ln/Cr/Tf Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P099833 IDA-45290 Effective XDR 20.40 20.40 0.00 9.01 11.39 44.00 P099833 IDA-H4340 Effective XDR 11.50 11.50 0.00 6.54 4.96 57.00 Disbursement Graph Public Disclosure Copy Page 6 of 7 The World Bank Report No: ISR15159 Public Disclosure Copy Key Decisions Regarding Implementation There are no key decisions for disclosure. Restructuring History Level 2 CD Decision on 18-Jun-2014 Related Projects There are no related projects. Public Disclosure Copy Page 7 of 7