Documentof The World Bank FOROFFICIALUSEONLY ReportNo. 37997-SL MEMORANDUMAND RECOMMENDATION OF THE PRESIDENTOF THE INTERNATIONAL DEVELOPMENT ASSOCIATION TO THE EXECUTIVE DIRECTORS ONASSISTANCE TO THE REPUBLICOF SIERRALEONE UNDERTHE ENHANCED HEAVILY INDEBTEDPOORCOUNTRIES INITIATIVE November22,2006 Department:AFTP4 and PRMED CountryManagementUnit: AFClO Region:Africa This document has a restricted distribution and may be used by recipients only inthe performance o ftheir official duties. Its contents may not otherwise be disclosed without World Bank authorization SIERRA LEONE CurrencyEquivalents (Exchange Rate Effective as o f September 29,2006) Currency Unit = Leone U S $ l.OO =Le 2,975 GovernmentFiscal Year January I -December 31 Weights andMeasures Metric System ABBREVIATION AND ACRONYMS AAP Assessment and Action Plan ACC Anti-Corruption Commission AfDB African Development Bank AGD Accountant-General's Department BSL Bank o f Sierra Leone CAS Country Assistance Strategy CFAA Country FinancialAccountability Assessment CPIA Country Performance and Institutional Assessment CWIQ Core Welfare Indicators Questionnaire DACO Development Aid Coordination Office DEPAC Development Partnership Committee DfID Department for International Development (UnitedKingdom) DPT Diphtheria Pertussis and Tetanus DSA Debt Sustainability Analysis DTIS Diagnostic Trade Integration Study EC European Commission ECOWAS Economic Community o f West African States EITI Extractive IndustriesTransparency Initiative ENCISS Enhancing Interactionand Interfacebetween Civil Society andthe State ERRC/G Economic Rehabilitation andRecovery CredidGrant ESO Establishment Secretary's Office FIAS Foreign Investment Advisory Service GDP Gross Domestic Product GRGG Governance ReformandGrowth Grant HIPC Heavily IndebtedPoor Countries HIV/AIDS HumanImmunodeficiency Virus/Acquired ImmuneDeficiency Syndrome H M O HumanResource Management Office IDA International Development Association (World Bank) IFMIS IntegratedFinancial Management InformationSystem IGAP ImprovedGovernance andAccountability Pact IMC Inter-Ministerial Committee IMF International Monetary Fund IRCB Institutional Reformand Capacity Building JSS Junior Secondary School IsDB Islamic Development Bank L C Local Council FOR OFFICIAL USEONLY LGA Local Government Act (2004) LGFC Local Government Finance Committee M&E Monitoring andEvaluation MAFFS Ministryof Agriculture, Forestry andFoodSecurity MDA Ministries, Departments andAgencies MDBS Multi-donor Budget Support MDRI Multilateral Debt ReliefInitiative MEST Ministryof Education, Science andTechnology MMR MinistryofMineral Resources MOF MinistryofFinance MOHS MinistryofHealthand Sanitation MOT1 MinistryofTrade andIndustry MTEF Medium-Term Expenditure Framework NACS National Anti-Corruption Strategy NaCSA National Commission for Social Action NASSIT National Social Security Insurance Trust NCCT National Coordinating Committee on Trade NCP National Commission for Privatization NGO Non-Governmental Organization N P A National Power Authority NPPA National Public Procurement Authority N P V Net Present Value NRA National Revenue Authority OAG Office of the Auditor General OECD Organization for Economic Co-operation and Development OPCS Operations Policy and Country Services PAC Public Account Committee PAF Progress Assessment Framework PEFA Public Expenditure and FinancialAccountability PER Public Expenditure Review PETS Public Expenditure Tracking Survey PFM Public Financial Management PRGF Poverty Reduction and Growth Facility PRS Poverty Reduction Strategy PRSP Poverty Reduction Strategy Paper ROSC Report on the Observance o f Standards andCodes for Accounting and Auditing SDR Special DrawingRights SLPA Sierra Leone Port Authority SLR4 Sierra Leone RoadAuthority SSL Statistics Sierra Leone UK United Kingdom UN UnitedNations UNDP UnitedNations Development Program USAID United StatesAgency for International Development WTO World Trade Organization Vice President: Gobind T. Nankani Country Director: Mats Karlsson Sector Director: Sudhir Shetty Director PRMED Vikram Nehru Sector Manager: Robert R.Blake Task Team Leader: Douglas Addison This document has a restricted distribution and may be used by recipients only in the performance o f their official duties. Its contents may not be otherwise disclosed without World Bank authorization. MEMORANDUMAND RECOMMENDATIONOF THE PRESIDENTOFTHE INTERNATIONALDEVELOPMENTASSOCIATION TO THE EXECUTIVE DIRECTORS ONASSISTANCETO THE REPUBLICOF SIERRA LEONE UNDERTHE ENHANCEDDEBTRELIEFINITIATIVE TABLE OFCONTENTS I. BACKGROUND ............................................................................................................... 1 11. FULFILLMENT OF COMPLETIONPOINT CONDITIONS .................................. - 2 111. REVISIONOFEXTERNAL DEBTAND ADJUSTMENTSTO THE RELIEF APPROVEDUNDERTHE ENHANCEDHIPCINITIATIVE ................................... 3 IV. IDA'S DELIVERY OFASSISTANCEUNDERTHE ENHANCEDHIPC INITIATIVE ..................................................................................................................... 4 V. IDA'S DELIVERY OFASSISTANCEUNDERMDRI................................................ 4 VII. PROSPECTSFORLONG-TERMDEBTSUSTAINABILITYUNDERTHE ENHANCEDHIPCINITIATIVE AND MDRI ............................................................. 5 VIII. SATISFACTORYFINANCINGASSURANCESFROMSIERRALEONE'S CREDITORS ................................................................................................................................ ..................................................................................................................... 6 XI. RISKS 6 X. RECOMMENDATION .................................................................................................... 7 LIST OFFIGURES Figure 1. Debt Service to IDA after HIPC Reliefand MDRI,2007-44.......................................... 5 LIST OFANNEXES Annex 1: Sierra Leone IDA Credits Subject to Debt Service Reduction under the Enhanced Heavily IndebtedPoor Counties Initiative..................................................................... 8 Annex 2: Sierra Leone Schedule o f Debt Service Reductionunder the Enhanced Heavily IndebtedPoor Countries Initiative, Calendar Year As Approved at the Decision Point. 9 Annex 3: Sierra Leone Revised Schedule o f Debt Service Reduction under the Enhanced Heavily IndebtedPoor Counties Initiative, Calendar Year ....................................................... 10 MEMORANDUMAND RECOMMENDATIONOFTHE PRESIDENTOF THE INTERNATIONAL DEVELOPMENT ASSOCIATIONTO THE EXECUTIVE DIRECTORSONASSISTANCE TO THE REPUBLICOF SIERRA LEONE UNDERTHE ENHANCEDHIPC DEBTINITIATIVE 1. IsubmitforyourapprovalthefollowingMemorandumandRecommendationon the assistanceto beprovidedto the Republic o fSierraLeoneunderthe EnhancedHeavily Indebted Poor Countries (HIPC) Debt Initiative with respect to the debt owed by this country to the International Development Association. This report and its recommendation address the criteria for reaching the Completion Point under the Enhanced HIPC Initiative as agreed by the Boards o f the International Monetary Fund (IMF) and IDA in February 2002,' and establish the debt relief to be provided with respect to the debt owed to IDA. Upon reaching the Completion Point, Sierra Leone will become eligible for the Multilateral Debt ReliefInitiative (MDRI) from IDA. 2. This document complements the joint IDA-IMFpaper entitled "Republic o f Sierra Leone: Enhanced Heavily Indebted Poor Countries (HIPC) Initiative Completion Point Document", the first Annual Progress Report (APR) for the Sierra Leone Poverty Reduction Strategy Paper (PRSP) prepared by the Sierra Leonean authorities, and the IDA-IMFJoint Staff Advisory Note (JSAN) o fthe APR, all concurrently submitted with this document. The Completion Point Document presents (i) Leone's progress in Sierra fulfilling the triggers o fthe CompletionPoint under the Enhanced HIPC Initiative; (ii) an update o f Sierra Leone's reconciled public external debt and the debt relief committed at the Decision Point under the Enhanced HIPC Initiative; and (iii) provision o f MDRI the relief by IDA, the IMF, and the African Development Fund(AfDF). I.BACKGROUND 3. Sierra Leone reached the Decision Point under the Enhanced HIPC Initiative in February 2002. Based on the debt sustainability analysis (DSA) presented in the Decision Point Document, debt relief under the Enhanced HIPC Initiative amounted to US$600.3 million innet present value (NPV) terms as o f end 2000. This reduced Sierra Leone's NPV o f debt after full application o f traditional debt relief from US$748.7 million to US$148.4 million. The total relief corresponded to a common reduction factor o f 80.2 percent on the NPV o f debt outstanding as o f end-December 2000 for all creditors, after the application o f traditional debt relief. Debt relief attributed to multilateral creditors amounted to US$332.0 million (55.3 percent o f total relief) inNPV terms. 4. Debt relief from IDA under the Enhanced HIPC Initiative approved at the Decision Point amounted to US121.5 million in NPV terms (US$229.9 million in nominal terms). According to the Decision Point calculations, this assistance would be deliveredthrough an 88.5 percent reduction in debt service to IDA over the 2002-2022 Sierra Leone: Decision point document for the Enhanced Heavily Indebted Poor Countries (HIPC) Initiative Report No. IDA/R2002-0015. 1 period. Interim assistance in the amount o f US$38.1 million in nominal terms has been delivered through end-November 2006. Annex 2 o f the current memorandum presents the debt service reduction schedule approved by Executive Directors at the time o f the Decision Point. 11. FULFILLMENT OF COMPLETION POINT CONDITIONS 5. Inaccordance with the decision ofthe Executive Directors ofthe IMFandIDA at the Decision Point, Sierra Leone would reach its floating Completion Point under the Enhanced HIPC framework when a set o f agreed conditions were met. These conditions and the assessment o f progress for meeting them are summarized in the accompanying Completion Point document. The conditions for reaching the floating Completion Point, as set out in the Box 6 o f the Decision Point document, comprised: (i)preparation o f a full PRSP and implementation for at least one year, as evidenced by the satisfactory joint staff assessment o f the PRSP and the country's annual progress report; (ii) continued maintenance o f macroeconomic stability as evidenced by satisfactory implementation o f the PRGF-supportedprogram; (iii) reforms inthe areas o f governance, private sector key development, education and health and (iv) the increase in total spending on designated poverty reducing expenditure priorities will be proportionate to HIPC relief. 6. Sierra Leone has satisfactorily met all but two o f the thirteen floating Completion Point triggers agreed at the Decision Point, and has therefore made sufficient progress to reach the Completion Point under the enhanced HIPC Initiative. The Government of the Republic o f Sierra Leone completed its PRSP in February 2005 and the Executive Directors o f IMF and IDA endorsed the staffs' assessment o f the PRSP inMay 2005. 7. Implementation in 2005 and the first half o f 2006 was adequate, as evidenced by the first Annual Progress Report and noted in the accompanying JSAN. Sierra Leone successfully completed all six reviews under the first arrangementunder the PRGF with the IMF between September 2001 and June 2005 and is set to complete the first review under the successor PRGF arrangement initiated inMay 2006. It is expected that the first review, covering performance through end-June 2006, will be discussed by the IMF Executive Board concurrently with the HIPC Completion Point document. Government made use o f the budgetary savings from HIPC debt reliefbroadly in accordance with the ,criteria set forth at the Decision Point. The increase in total spending on designated poverty reducing expenditure priorities was more thanproportionate to HIPC relief. 8. Two triggers have been partially met. The trigger concerning the bi-annual tracking o f public expenditures on priority areas within the Public Expenditure Tracking Survey (PETS) framework, including development expenditures, was met only in part because the reporting frequency was annual rather than bi-annual and development expenditures were omitted. Although the initial PETS reports in2001 were conducted bi- annually, they proved too taxing for the government to maintain in subsequent years, both organizationally and financially, and so were subsequently scaled back to annual exercises. Also, the tracking o f development expenditures required engineeringand other technical skills that were lacking in the Ministry o f Finance, and so were not done. 2 Despite the partial implementation o f this condition, the staffs judge that the PETS tracking reports were effective in achieving their goals. Their documentation o f serious resource leakages inthe provision of education and health services have led to substantial reforms and resource savings. 9. The trigger in the education sector that concerned teacher training was also met only partially. The target that was set was exceeded by over 100 percent in the case o f primary school teachers as 3,510 teachers were trained rather than the target o f 1,500. However, for secondary school teachers, only 90 percent o f the target o f 500 teachers has been met. The failure to meet this target reflects capacity limitations inthe Ministry o f Education, Science and Technology as well as delays on the parts o f key donors in providing assistance to upgrade training facilities. 111. REVISIONOFEXTERNALDEBTAND ADJUSTMENTS TO THE RELIEFAPPROVED UNDERTHE ENHANCEDHIPCINITIATIVE 10. As detailed in the Completion Point document, the updated DSA based on additional information received from creditors has resulted inthe nominal stock of debt at end-December 2000 being revised from $1,210.0 million to $1,282.5 million and the NPV o f debt after the delivery o f traditional debt relief from $748.7 million to $829.1 milliona2The NPV o f debt owed to multilateral creditors was increased to US$417.6 million from the US$413.9 million estimated inthe Decision Point do~ument.~The NPV o f debt owed to IDA at end-2000 amounted to US$151.5 million or 18.3 percent o f the total. The NPV o f debt owed to the IMF amounted to US$153.7 million or 18.5 percent of the total NPV o fdebt at end-2000. 11. This reconciliation exercise, together with revised estimates for exports4, has resulted in the common reduction factor being increased from 80.2 to 81.4 percent. Therefore, the total required HIPC assistance in end-2000 N P V term has been revised upward from US$600.3 million to US$675.2 million, o f which the costs to multilateral creditors and bilateral and commercial creditors would amount to US$340.1 million and US$335.1 million, respectively. * This review revealed additional debts to multilateral, official bilateral and commercial creditors. A number of commercial creditors, which approachedthe authorities after reaching the Decision Point, were identified and included inthe Decision Point database. NPV of debt to IFAD and the IsDB was revised respectively upwards by US2.9 million and downwards by USO.3 million, due to the correction of the currency of denomination of outstanding loans. The NPV of debt to BADEA has been increased by US$4.0 million to reflect the arrears rescheduled prior to the Decision Point. 4Estimates of exports of goods and services used to evaluate HIPC assistance at the Decision Point have also been revised from an average of US$98.9 million per year over 1998-2000 to US$102.6 million. Revised export data were first submitted by the authorities in 2003 as a result o f their efforts to improve data quality after receiving technical assistance from the IMF. 3 IV.IDA'S DELIVERY OFASSISTANCE UNDERTHE ENHANCEDHIPCINITIATIVE 12. Inlight ofthe revisionto the DSA, itisproposedthat the ExecutiveDirectors approve anupwardrevision o f IDA'S assistance inNPV terms byUS$1.8 million to US$123.4 from US$121.5 million estimated at Decision Point. 13. In accordance with the revision of HIPC assistance and with the guidelines approved by the Executive Directors on the provision o f HIPC assistance,' the delivery mechanism approved at the DecisionPoint requiredthe IDA to provide US$123.4 million in NPV terms at Decision Point. Of this amount, IDA would have delivered US$32.4 million inNPV terms (US$38.5 million innominal terms) as interim reliefbetweenApril 2002 and December 2006, corresponding to a reduction o f 88.5 percent o f debt service falling due over this period. On reaching the Completion Point, the revised HIPC debt relief would equal an average o f 90.0 percent o f debt service due on debt disbursed and outstanding at end-2000, provided till April 2022 (Figure 1). Annex 3 o f the current memorandum presents the revised debt service reduction schedule. Provided that Executive Directors agree with the revisions outlined above and that satisfactory assurances o f debt relief are received from Sierra Leone's other creditors at the Completion Point under the Enhanced HIPC Initiative then the debt service reduction for theremainingperiod upto April 2022 wouldbecomeirrevocable. V. IDA'SDELIVERY OFASSISTANCEUNDERMDRI 14. IfExecutive Directors approve the Completion Point for Sierra Leone under the enhanced HIPC Initiative, Sierra Leone will also qualify for additional debt relief under the Multilateral Debt Relief Initiative (MDRI). Three creditors would provide debt relief under the MDRI: IDA, the African Development Fund(AfDF) and the IMF. Total stock o f debt reduction achieved under the HIPC Initiative and the MDRI would amount to US$861.3 million and MDRI debt relief (net o f HIPC assistance) would lead to debt service salrings on debt owed to IDA, the IMF and the Afiican Development Bank of US$609.9 million over a period o f 45 years. 15. Once the MDRIbecomes effective, IDA would provide debt relief through a debt stock cancellation o f debt disbursed before end-2003 and still outstanding on January 1, 2007. Debt reliefunder the MDRIwould cover all remaining debt service obligations on eligible IDA credit balances through maturity, after any debt service relief available under the Enhanced HIPC Initiative.6 IDA would provide MDRI debt forgiveness by irrevocably canceling the borrower's payment obligations under the eligible credits. This would reduce Sierra Leone's debt stock owed to IDA by US$500.0 million, o f which a reduction o f US$326.7 million would be due to the implementation o f MDRI and the remainder to HIPC assistance. Debt cancellationunder the MDRIfrom IDA would result in average annual debt service savings (net o f HIPC assistance) for Sierra Leone of "Heavily Indebted Poor Countries (HIPC) Initiative: Note o n Modalities for Implementing HIPC Debt ReliefUnder the Enhanced Framework," IDAR2000-4, January 10,2000. See "IDA'SImplementation o f the Multilateral Debt ReliefInitiative", March 14,2006. 4 US$4.9 million between 2007 and 2021 and US$13.3 million from 2022 to 2043. Total debt service savings would amount to US$366.3 million (SDR 261.0 million). Figure 1 illustrates the impact o f MDRIon projected debt service due to IDA as o f end-December 2006. Figure1. DebtService to IDA after HIPC ReliefandMDRI,2007-44 (Inmillions ofUS dollars) 30.0 Beforerelief .....AfterHIPC After MDRI 25.0 20.0 15.0 10.0 5.0 ............................. .................................................... L % % L&%# 0.0............... g 7 z E ? - i g gv) ; g g g g $ g VII. PROSPECTSFORLONG-TERMDEBT SUSTAINABILITY UNDERTHE ENHANCEDHIPC INITIATIVE AND MDRI 16. The DSA included in the Decision Point document was updated on the basis o f end-2005 loan-by-loan debt data, using updated exchange and interest rates. Based on full debt data reconciliation, Sierra Leone's nominal stock o f external debt reached US$1,573.2 million at end-2005, compared with US$1,210.0 million at end-2000. Multilateral creditors accounted for 67.4 percent o f total debt, while bilateral and commercial creditors for 23.5 percent and9.2 percent respectively. 17. As detailed in the Completion Point Document, the NPV o f Sierra Leone's external debt at end-2005, after full delivery o f the assistance committed under the HIPC Initiative at the Decision Point, i s estimated at US$481.0 million, equivalent to 202.3 percent o f exports, compared with a DecisionPoint projection o f 130.2 p e r ~ e n t . ~ 7 The NPV o f debt to export ratio has substantially increased with respect to projections at the time of the Decision Point, mainly because o f different discount rates, more depreciated US. dollars vis-A-vis other currencies inwhich Sierra Leone's debt is denominated and lower concessionality o f new borrowing. 5 18. Sierra Leone does not meet the condition for topping-up. After the delivery o f additional bilateral relief beyond HIPC assistance, the NPV o f external debt i s further reduced to US$425.0 million or 178.8 percent o f exports in end-2005. However, under borrowing assumptions in line with the past and conservative export growth estimates, the NPV o f debt to export ratio, after HIPC and additional bilateral relief is projected to fall under the 150percent threshold by 2007 andto decrease to 84.8 percent by 2025. 19. An updated debt sustainability analysis shows that Sierra Leone's external debt will remain below the HIPC Initiative threshold throughout the projection period. After HIPC relief, the NPV o f debt-to-export ratio i s expected to fall below the HIPC threshold after 2007, even assuming progressively less grant financing over the medium term. Following enhanced HIPC assistance, as well as additional bilateral and MDRIrelief at the Completion Point, the NPV o f debt-to-exports ratio would drop to 46.3 percent at end-2006 and it would subsequently increase to 67.7 percent by the end o f the projection period. The NPV o f debt-to-GDP ratio would decrease from 92.0 percent at end-2005 to 8.7 percent at end-2006. It is expected to rise modestly over the medium-term while staying at about 14 percent in the long-run. External debt service ratios will decline to comfortable levels in line with a significant reduction o f the NPV o f debt stock after the Completion Point. Debt service to export ratio after the HIPC and additional bilateral assistance is expected to average 5.3 percent in 2006-2015 and to decline further to 4.2 percent on average in 2016-25. The debt service to revenue ratio would decline from an average value o f 9.8 percent in2006-15 to 6.5 percent over 2016-25. New borrowing will be mainly on IDA terms and is expected to decline from 3 percent o f GDP in 2006 to below 2 percent o f GDP by 2025. 20. Sierra Leone sustainability outlook heavily depends upon sustained export growth and prudent debt management. Stock indicators are expected to substantially exceed the HIPC thresholds in the event o f large shocks to exports and shortfall in grant financing. Thus, the sensitivity analysis underscores the importance o f pursuing export diversification and prudent borrowing policies in order to avoid potential risks for debt sustainability. VIII. SATISFACTORYFINANCINGASSURANCES FROMSIERRALEONE'S CREDITORS 21. Sierra Leone has received financing assurances o f participation in the Enhanced HIPC Initiative from creditors representing 81 percent o f the NPV o f HIPC assistance estimated at the Decision Point. Most multilateral and Paris Club creditors have confirmed their participation in the HIPC Initiative and the authorities are working toward reaching agreements with all remaining creditors. XI. RISKS 22. The main risks affecting this operation are (i) uncontrolled spending in the post- Completion Point period, financed by external borrowing that could undermine debt sustainability and jeopardize macroeconomic stability, long-term growth and poverty 6 reduction; (ii)the possible failures o f the continued development o f key minerals especially rutile and bauxite, and slower growth o f diamond exports owing to weak miningpolicy to attract foreign investors; and (iii) slippages in structural and governance reforms that might discourage private investments and inflows o f official resources. These risks will be mitigated by continued close monitoring of developments in fiscal outcomes, the balance o f payments and structural reforms in the context o f annual development policy operations as well as a mix o f financing consistent with a low risk o f debt distress. X. RECOMMENDATION 23. Inview ofthe above, Irecommendthat the Executive Directors endorse the staff assessment contained in the Completion Point Document concerning Sierra Leone's fulfillment o f the floating Completion Point conditions under the Enhanced HIPC Initiative and that debt relief on debt owed to IDA by Sierra Leone be provided unconditionally. 24. IfurtherrecommendthattheExecutiveDirectorsagreewiththestaffs'revisionof the NPV o f debt and o f HIPC assistance and approve the recommendations on the manner and the amount o f debt relief to be provided on remaining debts owed by Sierra Leone to IDA. Paul Wolfowitz President byJuan Jose Daboub, ManagingDirector Graeme Wheeler, Managing Director Washington, D.C. November 17,2006 7 Annex 1 Sierra Leone IDA Credits Subject to Debt Service Reduction under the Enhanced Heavily Indebted Poor Countries Initiative Credit Project Name Currency Balance at December 31,2000 Inoriginal currency InUSDequivalent 1700 Education USD 1,753,23 1.69 1,753,23 1.69 2180 FirstHighway USD 2,194,836.86 2,194,83 6.86 3230 Integrated Agricultural Devel. USD 2,773,500.00 2,773,500.00 5680 Integrated Agricul. Dev.Ii USD 3,675,000.00 3,675,000.00 5730 Second Education USD 5,233,406.19 5,233,406.19 7340 ThirdPower USD 6,5 11,698.00 6,5 11,698.00 9700 Technical Assistance SDR 1,682,312.09 2,191,901.25 10940 East. Integrated Agri. Dev Iii SDR 7,587,307.71 9,885,579.09 11280 North Integrated Agri Dev Ii SDR 2,569,107.3 1 3,347,315.61 11290 Second Highway SDR 7,108,179.83 9,261,3 18.58 12650 Power Sector Engineering SDR 4,117,500.00 5,364,73 1.93 13530 ThirdEducation SDR 12,474,769.15 16,253,501.47 15010 Agricultural Sector Support SDR 16,665,825.45 21,714,070.64 16950 Health And Population SDR 4,393,000.00 5,723,683 -63 23520 Reconstruction Import SDR 31,400,000.00 40,911,374.00 23521 Reconstruction Import SDR 220,000.00 286,640.20 23522 Reconstruction Import SDR 210,000.00 273,611.10 23560 Power Sector Rehabilitation SDR 11,281,684.63 14,699,019.72 24350 Public Sector Mgmnt Support SDR 6,885,068.75 8,970,624.93 24510 RoadRehabilitation & Mainten. SDR 29,345,465.56 38,234,500.53 25110 Freetown Infrastructure Rehab SDR 16,566,250.81 21,584,333.84 25460 Structural Adjustment SDR 35,900,000.00 46,774,469.00 25461 Structural Adjustment SDR 140,000.00 182,407.40 25462 Structural Adjustment SDR 200,000.00 260,582.00 25463 Structural Adjustment SDR 200,000.00 260,582.00 25464 Structural Adjustment SDR 99,974.43 130,257.68 27020 Urban Water Supply SDR 14,613,534.49 19,040,120.22 28270 Integrated Health Sector SDR 8,149,597.64 10,6 18,192.26 28950 Transport Sector SDR 7,8 17,001.85 10,184,849.88 33120 Community Reintegration & Reha SDR 8,660,602.06 11,283,985.03 33210 Economic Rehab. & Recovery SDR 18,300,000.00 23,843,253 .OO 33211 Economic Rehab. & Recovery SDR 7,900,000.00 10,292,989.00 8 Annex 2 Sierra Leone Schedule of Debt Service Reduction under the Enhanced Heavily IndebtedPoor Countries Initiative, Calendar Year As Approved at the Decision Point Amount to bereduced Calendar Year (InthousandsofUS.dollars) TOTAL. 229,860 April I -December 31, 2002 4,126 2003 7,088 2004 8,472 2005 9,196 2006 9,603 2007 9,692 2008 9,638 2009 9,583 2010 10,294 201I 10,576 2012 11,057 2013 12,639 2014 13,612 2015 14,089 2016 14,401 2017 14,397 2018 14,302 2019 14,207 2020 14,795 2021 14,940 January I - March 31, 2022 3,155 Source: WorldBank, Loan Accounting Department and staff estimates. 9 Annex 3 Sierra Leone Revised Schedule ofDebt Service Reduction under the Enhanced Heavily Indebted Poor Countries Initiative, Calendar Year Amount to bereduced Calendar Year (Inthousands ofUS.dollars) TOTAL 234,48 1 April I -December 31, 2002 4,126 2003 7,088 2004 8,472 2005 9,196 2006 9,603 2007 9,853 2008 9,797 2009 9,742 2010 10,464 201I 10,751 2012 11,240 2013 12,849 2014 13,838 2015 14,323 2016 14,640 2017 14,635 2018 14,539 2019 14,442 2020 15,040 2021 15,188 January 1-April 30,2022 4,657 Source: WorldBank, Loan Accounting Department and staffestimates. 10