Document of The World Bank Report No: ICR00001766 IMPLEMENTATION COMPLETION AND RESULTS REPORT (IDA-H4220 TF-93192) ON GRANTS IN THE AMOUNT OF SDR 34.5 MILLION (US$55 MILLION EQUIVALENT) TO THE REPUBLIC OF BURUNDI FOR THE SECOND ECONOMIC REFORM SUPPORT GRANT (ERSG II) AND THIRD ECONOMIC REFORM SUPPORT GRANT (ERSG III) June 6, 2011 Poverty Reduction and Economic Management 2 Country Department AFCE1 Africa Region CURRENCY EQUIVALENTS (Exchange Rate Effective) November 30, 2010 Currency Unit = Burundi Franc (FBU) US$1.00 = FBU 1219.00 FISCAL YEAR January 1-December 31 ABBREVIATIONS AND ACRONYMS AfDB African Development Bank BRB Central Bank of Burundi (Banque de la République du Burundi) CAS Country Assistance Strategy CNDD-FDD National Council for the Defense of Democracy-Forces for the Defense of Democracy CFAA Country Financial Accountability Assessment CPAR Country Procurement Assessment Report CPIP Country Procurement Issues Paper DBC Directorate of Budget and Control DC Directorate of Accounting DeMPA Debt Management Performance Assessment DFID Department for International Development (UK) DGP Planning Directorate DPO Development Policy Operation EAC East African Community EC European Commission EMSP Economic Management Support Grant ERSG Economic Reform Support Grant EU European Union FBU Burundi Franc FDI Foreign Direct Investment GoB Government of Burundi HIPC Heavily-Indebted Poor Countries (Initiative) HIV/AIDS Human Immunodeficiency Virus/acquired Immune Deficiency Syndrome ICA Investment Climate Assessment IDA International Development Association IFMIS Integrated Financial Management System IGF Inspectorate of Finance (Inspection des Finances) IMF International Monetary Fund ISR Implementation Status and Results Report LDP Letter of Development Policy MDG Millennium Development Goal MEFCD Ministry of Economy, Finance, and Coordination for Development MOCI Ministry of Commerce and Industry MOF Ministry of Finance MOP Ministry of Planning MTEF Medium-Term Expenditure Framework NGO Non Government Organization PEM Public Expenditure Management PEMFAR Public Expenditure Management and Financial Accountability Review PE Public Enterprise PER Public Expenditure Review PETS Public Expenditure Tracking Survey PFM Public Financial Management PRGF Poverty Reduction and Growth Facility PRSP Poverty Reduction Strategy Paper PSD Private Sector Development REFES Technical Committee for Monitoring of Economic Reforms SDR Special Drawing Rights SIGEFI Système d’Information de Gestion Financière (Financial Management Information System) SME Small and Medium Enterprise TA Technical Assistance UNDP United Nations Development Programme USAID United Nations Agency for International Development Vice President: Obiageli K. Ezekwesili Country Director: John M. McIntire Country Manager: Mercy M. Tembon Sector Director: Marcelo Giugale Sector Manager: Kathie Krumm Task Team Leader: Dorsati Madani/Jean-Pascal N. Nganou ICR Team Leader: Jean-Pascal N. Nganou ICR Primary Author: Sulaiman S. Wasty THE REPUBLIC OF BURUNDI SECOND ECONOMIC REFORM SUPPORT GRANT (ERSG II) AND THIRD ECONOMIC REFORM SUPPORT GRANT (ERSG III) CONTENTS Data Sheet A. Basic Information B. Key Dates C. Ratings Summary D. Sector and Theme Codes E. Bank Staff F. Results Framework Analysis G. Ratings of Program Performance in ISRs H. Restructuring 1. Program Context, Development Objectives and Design ............................................ 1 2. Key Factors Affecting Implementation and Outcomes .............................................. 3 3. Assessment of Outcomes ............................................................................................ 8 4. Assessment of Risk to Development Outcome ......................................................... 10 5. Assessment of Bank and Borrower Performance ..................................................... 10 6. Lessons Learned........................................................................................................ 12 7. Comments on Issues Raised by Borrower/Implementing Agencies/Partners........... 13 Annex 1 Bank Lending and Implementation Support/Supervision Processes.............. 14 Annex 2. Beneficiary Survey Results ........................................................................... 16 Annex 3. Stakeholder Workshop Report and Results ................................................... 17 Annex 4. Summary of Borrower's ICR and/or Comments on Draft ICR ..................... 18 Annex 5. Comments of Cofinanciers and Other Partners/Stakeholders ....................... 19 Annex 6. List of Supporting Documents ...................................................................... 20 Burundi MAP i A. Basic Information Program 1 Country Burundi Program Name BI-ERSG II Program ID P102508 L/C/TF Number(s) IDA-H4220,TF-93192 ICR Date 06/13/2011 ICR Type Core ICR REPUBLIC OF Lending Instrument DPL Borrower BURUNDI Original Total USD 30.0M Disbursed Amount USD 28.2M Commitment Implementing Agencies Ministry of Finance Cofinanciers and Other External Partners Netherlands Norway Belgium Program 2 Economic Reform Country Burundi Program Name Support Grant III (DPL) Program ID P113235 L/C/TF Number(s) IDA-H5330,TF-95937 ICR Date 06/13/2011 ICR Type Core ICR BURUNDI MINISTRY Lending Instrument DPL Borrower OF ECONOMY AND FINANCE Original Total USD 25.0M Disbursed Amount USD 25.2M Commitment Implementing Agencies Ministry of Finance Cofinanciers and Other External Partners Netherlands Norway B. Key Dates BI-ERSG II - P102508 Revised / Actual Process Date Process Original Date Date(s) Concept Review: 11/13/2007 Effectiveness: 10/03/2008 10/03/2008 ii Appraisal: 03/28/2008 Restructuring(s): Approval: 08/05/2008 Mid-term Review: Closing: 06/30/2009 06/30/2009 Economic Reform Support Grant III (DPL) - P113235 Revised / Actual Process Date Process Original Date Date(s) Concept Review: 03/05/2009 Effectiveness: Appraisal: 06/02/2009 Restructuring(s): Approval: 10/29/2009 Mid-term Review: Closing: 12/31/2010 12/31/2010 C. Ratings Summary C.1 Performance Rating by ICR Overall Program Rating Outcomes Satisfactory Risk to Development Outcome Moderate Bank Performance Satisfactory Borrower Performance Moderately Satisfactory C.2 Detailed Ratings of Bank and Borrower Performance (by ICR) Overall Program Rating Bank Ratings Borrower Ratings Quality at Entry Satisfactory Government: Moderately Satisfactory Implementing Quality of Supervision: Satisfactory Moderately Satisfactory Agency/Agencies: Overall Bank Overall Borrower Satisfactory Moderately Satisfactory Performance Performance iii C.3 Quality at Entry and Implementation Performance Indicators BI-ERSG II - P102508 Implementation QAG Assessments Indicators Rating: Performance (if any) Potential Problem Quality at Entry Program at any time No None (QEA) (Yes/No): Problem Program at any Quality of No None time (Yes/No): Supervision (QSA) DO rating before Satisfactory Closing/Inactive status Economic Reform Support Grant III (DPL) - P113235 Implementation QAG Assessments Indicators Rating: Performance (if any) Potential Problem Quality at Entry Program at any time No None (QEA) (Yes/No): Problem Program at any Quality of No None time (Yes/No): Supervision (QSA) DO rating before Closing/Inactive status D. Sector and Theme Codes BI-ERSG II - P102508 Original Actual Sector Code (as % of total Bank financing) Central government administration 60 60 Crops 10 10 General industry and trade sector 30 30 Theme Code (as % of total Bank financing) Legal institutions for a market economy 14 14 Other financial and private sector development 14 14 Public expenditure, financial management and 29 29 procurement Regulation and competition policy 29 29 State-owned enterprise restructuring and privatization 14 14 iv Economic Reform Support Grant III (DPL) - P113235 Original Actual Sector Code (as % of total Bank financing) General agriculture, fishing and forestry sector 15 15 General education sector 20 20 General public administration sector 30 30 Health 20 20 Other social services 15 15 Theme Code (as % of total Bank financing) Judicial and other dispute resolution mechanisms 6 6 Legal institutions for a market economy 6 6 Public expenditure, financial management and 70 70 procurement Rural policies and institutions 12 12 Tax policy and administration 6 6 E. Bank Staff BI-ERSG II - P102508 Positions At ICR At Approval Vice President: Obiageli Katryn Ezekwesili Obiageli Katryn Ezekwesili Country Director: John McIntire John McIntire Sector Manager: Kathie L. Krumm Jan Walliser Task Team Leader: Jean-Pascal Nganou Dorsati H. Madani ICR Team Leader: Jean-Pascal Nganou ICR Primary Author: Sulaiman S. Wasty BI-ERSG II - P102508 Positions At ICR At Approval Vice President: Obiageli Katryn Ezekwesili Obiageli Katryn Ezekwesili Country Director: John McIntire John McIntire Sector Manager: Kathie L. Krumm Jan Walliser Task Team Leader: Jean-Pascal Nganou Jean-Pascal Nganou ICR Team Leader: Jean-Pascal Nganou ICR Primary Author: Sulaiman S. Wasty v F. Results Framework Analysis Program Development Objectives (from Program Document) ERSG II was the first in the series of two grants designed to assist the Government of Burundi (GoB) in implementing the Poverty Reduction Strategy (PRS) of the country in order to transition from a post-conflict economy with a focus on maintaining peace and stability to one geared toward designing and implementing policies to accelerate growth and human development. It will continue supporting the government in: (i) reforming the public financial management (PFM) system to improve fiscal transparency and accountability; (ii) reforming the business, legal, and institutional environment to foster private-sector-led-growth; and (iii) supporting reforms in the coffee sector. As a follow-up of ERSG II, ERSG III was focused on the same issues, which included: (i) improving public finance management; and (ii) promoting private sector development. As in ERSG II, the PSD component of ERSG III had two main subcomponents: (a) improving the business environment; and (b) restructuring the export crops sector. In addition, ERSG III attempted address issues affecting the supply and price of petroleum products, which are critical to support activities of private enterprises. Revised Program Development Objectives (as approved by original approving authority) Not Applicable (a) PDO Indicator(s) BI-ERSG II - P102508 Original Target Formally Actual Value Baseline Values (from Revised Achieved at Indicator Value approval Target Completion or documents) Values Target Years (a) Up-to-date budget framework law with clear definitions of tasks and responsibilities. Future budgets are developed and e xecuted based on the new Indicator 1 : budget framework law. (b) PFM Strategy will provide a tool to donors in their harmonization process. (a) The 2009 budget is developed (a) The 2009 based on the new budget is organic law. Since developed based then, it is being Value (a) Old law in practice; on the new law; progressively (quantitative or (b) No existing strategy. (b) PFM strategy implemented in the Qualitative) is prepared and sect oral ministries; priority action plan (b) A core strategy formulated. has been developed with donor assistance. Date achieved 08/01/2007 12/30/2009 12/30/2009 Comments (a) Since its promulgation in 2009, the new organic law is being progressively (incl. % implemented in line ministries. [Highly Satis factory; (100%)]. vi achievement) (b) Institutional arrangements are in place with support from the Technical Support Unit. [Satisfactory; (75%)]. Draft budget for each year is presented to the National Assembly three months Indicator 2 : before the beginning of the new fiscal year (fo r 2008 and 2009), and respect of the interim timetable and procedures. Yes, the delays are Value respected in (quantitative or No decree Yes preparing the Qualitative) budget. Date achieved 08/01/2007 12/30/2009 12/30/2009 Comments (incl. % [Highly Satisfactory; (100%)]. achievement) (a) Implementation reports for HIPC financed and pro-poor expenditures are published. Indicator 3 : (b) Public Expenditure Tracking Surve y (PETS) statistics available, and recommendations satisfactorily implemented. (c) National accounts (NA) of 2005 produced. (a) Programmed (a) Programmed shares in the 2009 shares in the 2009 adopted budget: 62 adopted budget: 62 %; (a) Increased share of %; (b) PETS expenditures in health, (b) PETS available; available; actions education, actions plans plans partially infrastructure, and partially implemented; Value social protection at implemented; (c) As o f (quantitative or 50.8%; (c) As o f December 2008, Qualitative) (b) No PETS data a nd December 2008, national accounts action plans available; national accounts for 2005 are (c) No national for 2005 are available and accounts for 2005 available and posted on the available. posted on the website of the website of the National Statistics National Statistics Office Office (ISTEEBU). (ISTEEBU). Date achieved 08/01/2007 12/30/2009 12/30/2009 (a) Exceeded (12 percentage points). [Highly Satisfactory; (100%)]; Comments (b) PETS data available but action plans partially impl emented; (incl. % [Moderately Satisfactory; (50.0%)]. achievement) (c) In Dec. 2008, NA for 2005 available. [Moderately satisfactory; (50.0%)]. vii (a) Improved institutional framework for cash management; (b) Percent of expenditure authorized and executed by exceptional procedures Indicator 4 : will decrease; (c) Budget execution data as reported by SIGEFI will report most include most operations. Quarterly consultation and Quarterly Very little sectoral Value cash flow consultation and consultation, no (quantitative or planning. cash flow planning. adequate quarterly cash Qualitative) Cash flow Cash flow planning flow planning. planning tables are tables are available. available Date achieved 08/01/2007 12/30/2009 12/30/2009 (a) [Highly Satisfactory; (100%)]. Comments Regulatory Authority functional; (incl. % (b) [Highly Satisfactory; (100%)]; achievement) (c) SIGEFI functio nal as anticipated, [Highly Satisfactory; (100%)]. Indicator 5 : The IGF is operational. The reestablishment of The reestablishment the internal of the internal inspection and inspection and control unit has led control unit has led Value No internal inspection to a minimum of to some reports (quantitative or unit existed, no internal 15 reports covering some Qualitative) audits took place. covering 30 percent of total percent of t otal state income and/or state income expenditure by end and/or expenditure 2009. by end 2009. Date achieved 08/01/2007 12/30/2009 12/30/2009 Comments (incl. % [Moderately Unsatisfactory; (33%)]. achievement) Timely and reliable accounting is produced and published: comprehensive Indicator 6 : monthly reports and government accounts is provided t o the audit court in a timely manner. Comprehensive Submit 2006 accounting reports are Submitted 2006 Government not produced regularly government#s Value general account or in a timely manner. general account and (quantitative or and extra Government accounts extra budgetary Qualitative) budgetary are not provided to t he accounts for audit accounts for audit audit court in timely to the Audit court. to the audit court. manner. Date achieved 08/01/2007 12/30/2009 12/30/2009 Comments [Satisfactory; (80%)]. (incl. % viii achievement) Updated PSD legal framework with simpler and more transparent guidelines; and Regular dialogue on economic policy between the private sector and the Indicator 7 : government. The three other New law prepared codes adopted by in 2008 for the the council of investment code Old investment code Ministers, approved by and commercial and submitted to the Parliament. Value enterprise codes; parliament; Commercial and (quantitative or Lack of structured decree adopted to corporations codes Qualitative) communications relaunch the priv submitted to Parli between the two ate-public ament. Some groups. dialogue. Regular dialogue with the dialogue between private sector the two parties. initiated. Date achieved 08/01/2007 12/30/2009 12/30/2009 Comments (incl. % [Satisfactory; (80%)]. achievement) The analysis of the institutional capacity and financial status of PE contributes Indicator 8 : to the knowledge base of the Government and donors providing grounds for development of action plans for the reform program. No capacity assessment of the privatization unit Action plan Value existed. No full Action plan available. (quantitative or knowledge of the available. Financial Financial studies Qualitative) financial status of six studies available. available. large fully publ ic enterprises. No action plan available. Date achieved 08/01/2007 12/30/2009 12/30/2009 Comments (incl. % [Satisfactory; (80%)]. achievement) ix Indicator 9 : Delays in settlement of commercial litigation to be reduced. Computerized detailed data on No computerized court performance system. available. Target Computerized Value 40% of cases where the for 2009: 25%. but detailed data on (quantitative or maximum delays in early estimates court performance Qualitative) rendering judgement is suggest available. over 60 days. that the court will surpass this improvement. Date achieved 08/01/2007 12/30/2009 12/30/2009 Comments (incl. % [Satisfactory; (75%)]. achievement) Indicator 10 : Business Registration and taxation is simplified. Software for business Value registry is functional, Registry non- (quantitative or No update. and staff trained (Non- existent. Qualitative) existent). Date achieved 08/01/2007 12/30/2009 12/30/2009 The authorities decided to address this reform in the framework of the overall Comments reform of the General Tax Code, whose start w as significantly delayed despite (incl. % initial efforts in 2007. achievement) [Highly Unsatisfactory; (0%)]. Rules governing the campaign, preparation, marketing and exportation of Indicator 11 : coffee are cleared. Options clarified: New regulation has increased competition in the No clear direction: No marketing process; Value modern regulation for Action plan on action plan for (quantitative or marketing, public divestiture divestiture Qualitative) ownership of coffee implemented. adopted; re assets. duction in government ownership of coffee assets. Date achieved 08/01/2007 12/30/2009 12/30/2009 Comments (incl. % [Satisfactory; (90%)]. achievement) x Indicator 12 : Government has clear time bound plan for divestiture of key tea sector assets. Formulation of a Formulation of a Value divestiture plan divestiture plan No divestiture plan in (quantitative or underway. underway. tea sector available. Qualitative) Followed by Followed by implementation. implementation. Date achieved 08/01/2007 12/30/2009 12/30/2009 Comments (incl. % [Moderately Unsatisfactory; (33%)]. achievement) Economic Reform Support Grant III (DPL) - P113235 Original Target Formally Actual Value Baseline Values (from Revised Achieved at Indicator Value approval Target Completion or documents) Values Target Years Up-to-date budget framework law provides clear definition of responsibilities for all entities involved and simplifies budget execution procedures and Indicator 1 : controls. Draft budgets submitted to Parliament 3 months before beginning of fiscal year. New organic law adopted. Partial implementation, but Preparation of gradually picking Value Old law in practice. No 2010 budget in up pace. More (quantitative or budget preparation line with organic important, program Qualitative) decree. law and budget budgeting will be i preparation decree. ntroduced in selective sectors by 2014. Date achieved 12/31/2007 12/31/2009 12/31/2009 Comments (incl. % [Satisfactory; (80%)]. achievement) Indicator 2 : Improved quality of public spending (access to, and quality of public services). Design and testing of mechanism for PETS and specific involving elements of action community-based plans prepared for Value organizations in education, health, (quantitative or No PETS available. evaluation of and justice. Qualitative) delivery of basic However, services. Th ree beneficiary surveys PETS completed need to be more (education, health, extensive. and justice). Date achieved 08/01/2007 12/31/2009 12/31/2009 Comments [Satisfactory; (75%)]. (incl. % xi achievement) Maintaining rates of budget allocation and execution in priority sectors at a Indicator 3 : satisfactory level through a reduction in secur ity expenditures. Priority economic Priority economic and and social sectors social sectors account Priority economic account for 45.7 Value for 42.6 percent of and social sectors percent of actual (quantitative or actual spending. Share account for 48.5 public spending. Qualitative) of security is 29.7 percent of actual Share of security percent of actua l public public spending. reduced to 26.4 p spending. ercent of actual public spending. Date achieved 12/31/2007 12/31/2009 12/31/2009 Comments (incl. % [Highly Satisfactory; (100%)]. achievement) Indicator 4 : Planned budgets more in line with PRSP objectives and sector strategies. Share of priority 48.5 percent of Priority economic and Value sectors in 2010 2009 budget social sectors account (quantitative or budget equal to or allocated to priority for 45 percent of 2007 Qualitative) higher than in economic and budget allocations. 2009 budget. social sectors. Date achieved 12/31/2007 12/31/2009 12/31/2009 Comments (incl. % [Highly Satisfactory; (100%)]. achievement) Reliable financial management information system aimed at producing timely Indicator 5 : and reliable budget execution reports and governme nt accounts. SIGEFI is expanded to ensure adequate coverage of the All functions have Value Incomplete coverage of full cycle of been introduced (quantitative or budget execution by budget execution. into the SIGEFI Qualitative) SIGEFI. Submit 2007 system. general government#s accou nt to Court of Accounts. Date achieved 12/31/2007 12/31/2009 12/31/2009 Comments (incl. % [Satisfactory; (80%)]. achievement) xii Elimination of risk of arrears through strengthening of the principle of Treasury single account by reducing the number of ir regular off-budget Indicator 6 : accounts and share of direct payment orders. Reduction in the average time necessary for payment of invoices. No irregular off- Only one off- budget account. budget account, Eleven accounts, No accumulation amounting to FBU amounting to FBU 18.1 Value of arrears toward 0.6 billion. In direct billion. In direct (quantitative or suppliers. payment orders. payment orders. No Qualitative) Average time Average time for data available on necessary for payment of average payment time. payment of invoices es timated: invoice s: 40 days. 45 days. Date achieved 12/31/2007 12/31/2009 12/31/2009 Comments (incl. % [Satisfactory; (90%)]. achievement) Indicator 7 : Strengthened internal and external audit and control institutions. IGF produces a minimum of 15 Value reports covering IGF re-established; No IGF. No internal (quantitative or 30 percent of staff appointed, and audit report. Qualitative) government fully functional. revenue and expenditures. Date achieved 12/31/2007 12/31/2009 12/31/2009 Comments (incl. % [Satisfactory; (75%)]. achievement) Indicator 8 : Effective procurement institutions and systems. New procurement code promulgated in July 2008. Regulation agency Old cumbersome and and central Value Two procurement over-centralized procurement (quantitative or units operational procurement procedures directorate Qualitative) in line ministries. and institutions. established. Staffing and training units in line ministries under preparation. Date achieved 12/31/2007 12/31/2009 12/31/2009 Comments (incl. % [Moderately Satisfactory; (65%)]. achievement) xiii Indicator 9 : Modernized business legal framework. The new investment code adopted by the Council of Ministers and Existing investment Investment, promulgated in code, commercial code, commercial, and Value September 2008. and companies# code companies# codes (quantitative or Draft commercial inadequate to best are promulgated Qualitative) and companie s# modern international and are codes adopted by practices. operational. the Council of Ministers in August 2009 and transmitted to Parliament. Date achieved 12/31/2007 12/31/2009 12/31/2009 Comments (incl. % [Highly Satisfactory; (100%)]. achievement) Indicator 10 : Periodic consultations between government and private sector. Decree creating consultation mechanism adopted No effective First meeting in Value and signed in June communication system the context of the (quantitative or 2008. Private between public and new consultation Qualitative) sector reorganizing private sector. mechanism. its representation in vi ew of future meetings. Date achieved 12/31/2007 12/31/2009 12/31/2009 Comments (incl. % [Moderately Satisfactory; (50%)]. achievement) Indicator 11 : More efficient #Tribunal de Commerce#. By January 2009, 22 percent of cases were beyond the Less than 25 60-day deadline percent of cases mandated by the Value pending before the 40 percent of cases in law. This (quantitative or commerce court excess of 60 days. percentage Qualitative) will go beyond the improved significa 60-day deadline ntly to 14.3 percent mandated by law. in May 2009 and to 10 percent at the end of July 2009. Date achieved 12/31/2007 12/31/2009 12/31/2009 Comments [Highly Satisfactory; (100%)]. xiv (incl. % achievement) Indicator 12 : Strengthened analytical base for the reform of PEs. Financial audits of Gradual five public improvement in the No efficient public enterprises (PEs) Value performance of enterprise monitoring are finalized and (quantitative or SCEP. Audits of and management an action plan Qualitative) five public system. established for enterprises (PEs) reflecting the are underway. conclusions . Date achieved 12/31/2007 12/31/2009 12/31/2009 Comments (incl. % Moderately Satisfactory; (50%). achievement) Indicator 13 : A more efficient and productive coffee sector. Action plan adopted for State divestiture from coffee sector. The government has adopted new Several (at least Value measures to No modern marketing 10) washing (quantitative or liberalize the regulation system. stations are sold to Qualitative) comme rcialization private sector. of coffee by opening the coffee export market to local and international participants. Date achieved 12/31/2007 12/31/2009 12/31/2009 After years of studies and consultations with stakeholders, as well as internal Comments political debate, GoB approved and began to implement a strategic option for (incl. % the reform of the coffee sector and privatization of processing facilities. achievement) [Satisfactory; (80%)]. Indicator 14 : A more efficient and productive tea sector. Formulation of a Formulation of a Value Rapidly declining roadmap initiating roadmap initiating (quantitative or production and the design of the design of Qualitative) productivity reform program reform program for for the tea sector. the tea sector. Date achieved 12/31/2008 12/31/2009 12/31/2009 The ERSG-1's ICR (2008) argues the restructuring of the coffee sector was so Comments complex, the government and the donor comm unity considered that tea sector (incl. % reforms, while essential, would be of less importance. [Moderately achievement) Unsatisfactory; (33%)]. xv Indicator 15 : A more flexible price fixing mechanism for petroleum products. Agreement in Implementation on principle for the the Agreement to quasi-automatic the principle of adjustments; and a Value quasi-automatic Late decisions by the draft law to this (quantitative or adjustment pricing government. effect approved by Qualitative) mechanism and the Cabinet and stabilization of Parlia ment margin s, taxes, promulgated in July and duties 2009. Date achieved 08/01/2008 12/31/2009 12/31/2009 Comments (incl. % [Satisfactory; (80%)]. achievement) (b) Intermediate Outcome Indicator(s) BI-ERSG II - P102508 Original Target Actual Value Formally Values (from Achieved at Indicator Baseline Value Revised approval Completion or Target Values documents) Target Years We have no intermediate outcome indicator. This is a one tranche Indicator 1 : DPL. Value (quantitative or Qualitative) Date achieved Comments (incl. % achievement) Economic Reform Support Grant III (DPL) - P113235 Original Target Actual Value Formally Values (from Achieved at Indicator Baseline Value Revised approval Completion or Target Values documents) Target Years We have We have no intermediate outcome indicator. This is a one Indicator 1 : tranche DPL. Value (quantitative or Qualitative) Date achieved Comments (incl. % achievement) xvi G. Ratings of Program Performance in ISRs BI-ERSG II - P102508 Actual Date ISR No. DO IP Disbursements Archived (USD millions) 1 02/24/2009 Satisfactory Satisfactory 28.24 Economic Reform Support Grant III (DPL) - P113235 Actual Date ISR No. DO IP Disbursements Archived (USD millions) 1 01/12/2011 Satisfactory Satisfactory 25.15 H. Restructuring (if any) xvii 1. Program Context, Development Objectives and Design 1.1 Context at Appraisal Burundi emerged from a thirteen-year civil war after the signing of the comprehensive peace and reconciliation agreement by 39 political parties in Arusha (Tanzania) in August 2000 which marked a significant turning point. Peace is still in the process of the consolidation--with intermittent negotiations, deadlocks, and ceasefires between the elected government and the rebel movement. Hence, the overall political situation remains fragile at best. Nonetheless, recent economic developments have created positive prospects for Burundi. The economy has gradually recovered from the shocks experienced during 1999-2003 such as political turmoil, embargos, deteriorating terms of trade (partly stemming from being a landlocked country with political conflict adversely affecting trade routes), and severe drought. Annual real GDP growth is estimated to have risen to 5.1 percent in 2006 from an annual average of 1.8 percent during the decade of economic and political turbulence. Since January 2004, the government authorities have implemented an economic reform program supported by the Bank and the IMF.1 In short, within a difficult political, social, and economic environment, the GoB has made good initial progress in macroeconomic stabilization, implementation of financial and structural reforms, and restoration of social services. In September 2005, Burundi reached the HIPC decision point and was granted access to interim debt relief, which will reduce its debt by over 90 percent in NPV terms, and its scheduled debt service, by some US$30-40 million annually for the next 30 years. As was expected, the country reached the HIPC completion point in January 2009. Notwithstanding these developments, Burundi will continue to require significant external assistance (including Bank’s concessional assistance) as domestic savings—even augmented by those resulting from the HIPC initiative—will be far below the level needed to make substantial progress in accelerating growth, raising living standards, reducing poverty, and making progress toward meeting the MDGs. 1.2 Original Program Development Objectives (PDO) and Key Indicators ERSG II built upon on the Emergency Economic Recovery Credit (EERC, 2000), the Economic Recovery Credit (ERC, 2002), and especially the ERSG (2006), and 1 In September 2006, the government approved its first full PRSP which was presented to IDA and the IMF Boards in March 2007. The government program, set out in the PRSP, intends to redirect the economy away from a post-conflict focus toward economic growth and development. The PRSP aims to strengthen political stability, consolidate peace, and reduce poverty through accelerated, sustainable, and equitable growth. The principal axes of the PRSP are: (a) improving governance and security; (b) promoting sustainable and equitable economic growth; (c) developing human capital; and combating HIV/AIDS. 1 accompanying technical assistance with these operations. Notably, ERSG II incorporated lessons from the ERSG I (a stand-alone grant) which had slightly ambitious objectives in supporting the government in implementing the interim PRSP in three areas: (a) improving public expenditure management (PEM) and the impact on the poor; (b) reviving agriculture export crop sectors (coffee, tea, and cotton); and reviving the private sector by improving business climate, accelerating State divestiture, and settling the government domestic arrears to the private sector. ERSG II had less-varied PDOs of supporting the GoB to continue: (a) reforms in the PFM system to improve accountability and transparency in public spending; (b) reforms in the business, legal, and institutional environment to foster the private-sector-led- growth; and (c) reforms in the coffee sub-sector. It proposed to: (a) consolidate reforms already underway (in PFM as indicated in the completed joint PEMFAR); and (b) re- energize the reform process in private sector development (the legal and regulatory framework for the general business environment and the coffee sub-sector). Further, it aimed at continuing diagnostic work and to develop a strategic approach in areas where action was needed but the existing knowledge was too limited (public enterprise reform). As a follow-up of ERSG II, ERSG III was focused on the same issues, which included: (i) improving PFM; and (ii) promoting private sector development. As in ERSG II, the PSD component of ERSG III had two main subcomponents: (a) improving the business environment; and (b) restructuring the export crops sector. In addition, ERSG III attempted to address issues affecting the supply and price of petroleum products, which are critical to support activities of private enterprises. 1.3 Revised PDO and Key Indicators, and Reasons/Justification Not Applicable. 1.4 Original Policy Areas Supported by the Program The ERSG II and ERSG III program structure kept a balance between the need for essential reforms and the simplicity dictated by weak institutions and national implementation capacity, with a bias toward deepening the reform process in areas already supported by the earlier ERSG. Overall, this programmatic series (ERSG II and III) continued to support the establishment of new legal and institutional frameworks to implement essential reforms. It was also designed to help the GoB in securing sustained financial resources through: (a) economic growth; (b) external financial assistance; and (c) debt relief. Specific policy areas emphasized by the program consist of: (i) More accountable and transparent budget management process through: (a) budget preparation and alignment with PRSP; (b) budget execution; and (c) budget accounting and control. (ii) Improved business, legal, and institutional environment for growth. 2 (iii) Renewed impetus in coffee sector reforms. 1.5 Revised Policy Areas Not Applicable. 1.6 Other significant changes Not Applicable. 2. Key Factors Affecting Implementation and Outcomes [Please note that this ICR for EGRS II and EGRS III is a desk review, and could not benefit from interviews with GoB authorities or principal stakeholders in the country]. 2.1 Program Performance The details of achievements to date are enumerated in the Results Framework Analysis, which compares the performance against benchmarks and targets (Section F of the ICR). Additionally, the current status of the prior and subsequent actions taken under the series is listed in the subsequent section below. To reiterate, ERSG II focused on three principal areas, all of which envisaged to be implemented in a high-risk environment (mainly: political fragility and weak institutional capacity). (i) More Accountable and Transparent Budget Management Process: (a) budget preparation and alignment with PRSP; (b) budget execution; and (c) budget accounting and control. Significant progress has been made in the enactment in 2009 of the Organic Law organizing public finance (Budget Framework Law). Its implementation, initially gradual, is now picking up pace. Importantly, several off-budget items have been closed, and cash management has been streamlined. Under the ERSG III, the GoB plans to introduce program budgeting in selective ministries by 2014. In the context of transparency, the national accounts are available on a government website: www.ISTEEBU.BI. Unfortunately, there seems to be a technical glitch, which has affected the normal functioning of the website of the National Statistical Institute (ISTEEBU) in recent days. As for the PFM strategy, its implementation is also on track with the coordination of the Council of Ministers. A core strategy has been developed with donor assistance. Institutional arrangements are in place under the direction of the Technical Committee Support Unit. (ii) Improved Business, Legal, and Institutional Environment for Growth. 3 This is perhaps a weak area of implementation, whereby more concerted actions would be required in the subsequent budget support operations. To date, there are not enough mechanisms and for consultations between the government and the private sector. (iii) Renewed Impetus in Coffee Sector Reforms. It is premature to determine how the contemplated divestiture options have materialized in reforming this export crop sector. Subsequently, ERSG III--amongst its other objectives--attempted to address issues affecting the supply and price of petroleum products, which are critical to support activities of private enterprises. (a) Establishing a transparent PFM. Notwithstanding substantial improvements, additional efforts are needed to improve the strategic content of the budget planning process. (b) Improving business environment. The main challenge to the development of the formal sector and privatization of public enterprises is institutional constraints. Notably, these are: the small size of the domestic market, the landlocked position of the country, an uninviting business climate, and the absence of an effective dialogue between the government and the private sector. (c) Restructuring the coffee sector. The process is in nascent stages, beginning with a Presidential decree for establishing a regulatory authority. (d) Reforming the domestic downstream petroleum sector. The government has established a quasi-automatic mechanism for adjusting local prices to changes in the international market. *For multi-tranche DPL: Not Applicable. Tranche # Amount Actual Release Release (SDR Million) Date ERSG II: Tranche 1 18.5 10/03/2008 Regular ERSG III: Tranche 1 16.0 12/23/2009 Regular 4 First Operation in a Programmatic Series List prior actions from Legal Agreement/ Program Document Status 1. A new organic law that is in line with modern international New law used to execute standards is approved by the Council of Ministers and 2008 budget. submitted to the Parliament. 2. Adopt a decree establishing the budget preparation timetable, Appropriate action taken.. responsibilities, and the content of the “letter de cadrage” to improve timeline and efficiency in the budget preparation process. 3. Improve identification of expenditures for poverty reduction in Pro-poor expenditure share the functional classification based on the PRSP. increased from 50.8 percent to 60.6 percent. 4. The MEFCD prepares and implements in consultation with Actions taken, as envisaged. main line ministries revolving cash flow plans: (i)) based on realistic revenue forecasting and assessment of seasonal expenditure requirements and (ii) providing line ministries the quarterly ceiling of commitments (starting Q2 2008). 5. Submit 2006 government general account and extra-budgetary No verifiable information accounts for audit to the Audit court. was available at the approval stage of ERSG II. 6. Re-establish the internal control and audit unit and ensure Produced a minimum of five satisfactory staffing and functioning. reports covering 15 percent of total state’s income and/or expenditure. 7. The new investment code that is in line with modern No verifiable information international standards is approved by the Council of was available at the approval Ministers and submitted to the Parliament. stage of ERSG II. 8. Re-launch the public-private consultation framework through Regular dialogue is in effect. the adoption of a decree. 9. Launch a study that will analyze the institutional capacity for Action plan available; public enterprise reform and that will include a related action financial studies available. plan to improve said capacity. 10. Publish the regulation for commercialization of coffee to Options clarified; action plan stakeholders in the coffee sector the rules regarding marketing developed. for the upcoming coffee campaign (2008). 5 Subsequent Operation(s) (add more rows, if needed) List prior actions from Legal Agreement/ Program Document Status 1. Finalization of public expenditure tracking surveys (PETS) PETS and elements of action with respect to the 2005 and 2006 budgets in the education, plans prepared for education, health, and justice sectors, and publication of related reports. health, and justice. 2. Execution of the 2008 budget reflecting a significant increase Priority economic and social in the proportion of public expenditure allocations to priority sectors accounted for 45.7 economic and social sectors (ministries at the time responsible percent of public spending. for: (i) primary education; (ii) higher education and scientific Share of security reduced to research; (iii) public health; (iv) fight against AIDS; (v) 26.4 percent of public national solidarity, human rights, and gender; (vi) youth, spending. sports, and gender; (vii) agriculture and livestock; and (viii) public works and equipment) relative to total public expenditure allocations, as compared with the Recipients’ 2007 budget. 3. Preparation of a medium-term expenditure framework Draft MTEF prepared for (MTEF) in the agriculture, education, and health sectors agriculture, education, and reflecting priority expenditures protected in the event of health sectors. budget cuts. 4. Expansion of the integrated computerized financial All functions introduced into management system to ensure adequate coverage of the full SIGEFI system. cycle of budget execution, including verification of the availability of funds at commitment, transmittal of expenditure files, reservations and transfers, partial payments, account closings, and entry balance management. 5. Preparation and implementation of quarterly commitment Only one off-budget plans reflecting the operational requirements of sector account, amounting to FBU ministries and overall resource and cash management 0.6 billion. In direct payment constraints. orders. Commitment ceilings fixed for Q2 of 2009. 6. Establishment of a public procurement regulatory authority New procurement code with an institutional framework and functions in accordance promulgated in July 2008. with the provisions of the Public Procurement Code of Regulation agency and February 2008. central procurement directorate established. Staffing and training of units in line ministries being prepared. 7. Cabinet approval and submission to Parliament of a new The new investment code commercial code and private and public companies code adopted by the Council of reflecting prevailing international standards in the area. Ministers and promulgated in September 2008. Draft 6 commercial codes adopted by the Council of Ministers in August 2009 and transmitted to Parliament. 8. Effecting an improvement in the performance of the By January 2009, 22 percent commercial court through a reallocation of resources in the of cases beyond 60-day juridical sector, as evidenced by a 50 percent reduction in the deadline mandated by the number of cases pending before such court beyond the 60-day law. This percentage deadline mandated by law, as compared with the improved significantly over corresponding number in March 2008. the past few months to 14.3 percent in May 2009 and to 10 percent at the end of July 2009. 9. Cabinet approval of the modality of the sale of 117 coffee Action plan adopted for washing stations and initiation of such sale in 29 lots of 3-6 State divestiture from coffee units each, targeting a potential 75-25 percent ownership split sector. A Presidential decree between private enterprises, producer organizations, establishing the regulatory respectively, including launch of a press campaign, issuance agency adopted by the of a Presidential decree establishing a regulatory agency in the Cabinet and signed on June coffee sector, and related revision of the management 1, 2009. Bidding documents arrangements for such washing stations. published on June 5, 2009; and a conference for potential investors held on June 25, 2009. The bidding call was closed on August 6, 2009 but the conclusions of the bidding process yet to be released to the public. 10. Issuance of an ordinance with respect to the petroleum sub- Government agreed in sector establishing the principles of quasi-automatic monthly principle to quasi-automatic adjustment of local prices to changes in international prices adjustment mechanism and and stabilization of operational margins at an appropriate stabilization of margins, level; and Cabinet approval and submission to Parliament of duties, and taxes. This legislation converting customs duties and transaction taxes in principle and the each sub-sector into specific duties. stabilization of operational margins were confirmed by an ordinance from Minister of Commerce. A draft law converting duties and “taxes de transaction” into “droits specifiques” approved by the Cabinet and Parliament promulgated in July 2009. 7 2.2 Major Factors Affecting Implementation From the outset, the ERSG grant series were understandably considered as high risk operations (because of the factors mentioned earlier). Most of these implementation risks were however mitigated by the availability of accompanying technical assistance (TA) and capacity building efforts through the EMSP and in partnership with the IFC PEP- AFRICA program. 2.3 Monitoring and Evaluation (M&E) Design, Implementation and Utilization M&E design, implementation, and utilization relied exclusively on government arrangements and country systems. However, in the Burundi setting, no major efforts were made to strengthen the capacity of the weak institutions—especially for the focus on results, beyond focusing on fiduciary (Financial management and Procurement) safeguards. 2.4 Expected Next Phase/Follow-up Operation ERSG IV was approved by the Board in December 2010. As the first in a new series of two DPOs, ERSG IV will aim to consolidate many of the reforms that begun in the ERSG II and ERSG III series. This follow-on operation will be focused on: (a) improving budget credibility, planning, and controls; and (b) strengthening the business environment and performance of the traditional export crop sectors. The PFM component of ERSG IV has three main sub-components: (a) strengthening strategic and budget planning to improve the quality of public spending; (b) reinforcing PFM systems; and (c) improving the management of the public wage bill. The PSD component of ERSG IV also has three main sub-components: (a) promoting private investment development through improvements in the legislative framework and economic infrastructure; (b) facilitating the restructuring or privatization of public enterprises; and (c) modernizing export sectors. In addition, ERSG IV will lay the groundwork for reforms in future budget support operations in the energy sector—the success of which is critical to support private-sector-led-growth. 3. Assessment of Outcomes 3.1 Relevance of Objectives, Design and Implementation The programmatic series was timely and highly relevant to the country conditions. It was fully consistent with the CAS and the PRSP. 3.2 Achievement of Program Development Objectives The PDOs emphasized mainly outputs and activities—rather than outcomes. Hence, these interventions achieved their intended purposes of creating building blocks for future development operations. 8 3.3 Justification of Overall Outcome Rating Ratings: ERSG II: Moderately Satisfactory. ERSG III: Satisfactory. The first operation provided the building block for the subsequent operation(s). However, a major pre-requisite for programmatic DPLs (the formulation of a concrete and clear long-term vision (even an evolving MTEF) was not in place, and which was delayed until the initiation of ERSG III). Further, ERSG III was much more focused on key issues and removing the concomitant impediments toward their resolution. The achievements to date are reiterated below: First, important progress was realized toward the deployment and institutionalization of the central and sectoral MTEFs, through the development of the central tools, and engagement at the highest levels (second Vice President of Burundi) to ensure that the tools become later standardized amongst the agencies and institutionalized in the budget preparation process. A model of central MTEF developed with a Bank technical assistance in December 2009 was only developed in May 2010 when the Directorate General of Budget significantly improved its initially limited involvement in the deployment of this tool. Nevertheless, this central MTEF is not yet used to define the overall budget envelope and to allow for inter-sectoral budgetary choices consistent with national priorities. Second, the authorities have made efforts toward the application of the new Procurement Code, particularly through the creation of the new agency to regulate procurement (Agence de Regulation des Marchés Publics, ARMP), along with the provision of budget and the recruitment of main members of the staff. Visits by the team to the ARMP and the Direction Nationale des Marchés Publics (DNMP) indicate that these units are functioning, however significant capacity constraints remain. Third, the new Investment Code was promulgated, and several actions were undertaken to apply the code, including the establishment of the new Investment Promotion Agency (API). Later missions conducted for the follow-on operation (ERSG IV) indicated that the Agency had become operational in April-May, with the naming of key staff and the establishment of an office of the Agency. Finally in the coffee sector, 13 of the country’s 117 coffee washing stations were sold to an international company (WEBCOR) after competitive bidding. There were other interested parties, but their applications were rejected after the price proposed fell below the authorities’ reservation price (which was not published). The authorities are considering putting this reservation price in the bidding documents in the future, but a definite position on this issue has not yet been taken. It is anticipated that the next round of bidding would begin in August 2010, after the end of the 2010 coffee campaign. The first year of operations of WEBCOR appears to have gone well, and the coffee regulatory 9 agency (ARFIC) and the recently established inter-profession entity (INTERCAFE) appear to be pleased with the investment and capacity building efforts that the firm has conducted. For the next round of bidding process of washing stations, and to avoid some of the problems with the implementation of the strategy encountered during the first round, the authorities have commissioned a study aimed at analyzing the implementation of the first round of bidding process. Results of this assessment will be reflected in the second phase of bidding process of washing stations. 3.4 Overarching Themes, Other Outcomes and Impacts (a) Poverty Impacts, Gender Aspects, and Social Development The ERSG series have had a significant impact on enhanced resource allocation for priority social areas. Likewise, business climate reforms are expected to have a long- term positive growth and poverty implications. But, most of these actions are yet to be translated into visible improvements in poverty reduction. (b) Institutional Change/Strengthening Even in more advanced countries, institutional change/strengthening requires a longer gestation. So, it is quite premature to witness immediate results in the Burundi context. (c) Other Unintended Outcomes and Impacts None. 3.5 Summary of Findings of Beneficiary Survey and/or Stakeholder Workshops Not Applicable. 4. Assessment of Risk to Development Outcome Ratings: Moderate. With the inception and implementation of the ERSG series (and follow-on operations), the risks to development outcome have been upgraded from Substantial to Moderate. 5. Assessment of Bank and Borrower Performance 5.1 Bank Performance (a) Bank Performance in Ensuring Quality at Entry Ratings: Satisfactory. 10 The Bank relied considerably on the lessons learned from the previous operations as well as from the experience other fragile countries. Consequently, and especially with the ERSG, the PDOs were kept simple and less complex under the overall umbrella of the PRSP. Further, the Bank developed a strong relationship with other key development partners—especially the IMF, the Netherlands, and Norway. These co-financiers (i.e., the Netherlands and Norway) contributed US$23.4 million to the ERSG II-III series. Additionally, the resort to accompanying technical assistance and capacity-building efforts through the IDA’s Economic Management Support Project (EMSP), and coordination with the IFC PEP-Africa program has been instrumental to program design. (b) Quality of Supervision Ratings: Satisfactory. Initially, the ISR for ESRG was too optimistic (and less candid) for the achievement of DO and the Implementation Progress. It should have taken into account the shortcomings in government capacity and flagged these lacunae to the Bank management for feedback to the government authorities. The subsequent ISR was more focused on these issues. Several supervision missions of ERSG III were conducted in the course of FY10-11. The most recent supervision missions, which also coincided with the preparation of the new programmatic series (ERSG IV-V) found that the targeted reform measures were being achieved and that progress continued in the consolidation of these reforms. (c) Justification of Rating for Overall Bank Performance Ratings: Satisfactory. In light of the factors mentioned earlier, considerable improvements took place in the Bank’s attention, performance, and supervision with respect to ERSG III compared with those in the context of ERSG II. The intended reforms will be further targeted and consolidated in the new programmatic series (ERSG IV-V). 5.2 Borrower Performance (a) Government Performance Ratings: Moderately Satisfactory. Though the government’s commitment to policy reforms was evident at the highest levels, the consensus building amongst the implementing agencies needed enhanced efforts. In sum, there should have been a greater involvement of sectoral ministries and the key officials responsible for the implementation of the reform program. 11 (b) Implementing Agency or Agencies Performance Ratings: Moderately Satisfactory. The implementing agencies are still too weak to implement the envisaged reforms, and would require hands-on training and technical assistance. (c) Justification of Rating for Overall Borrower Performance Ratings: Satisfactory. The operations were conducted satisfactorily on the Bank side. Notwithstanding the limited implementation capacity of the government authorities, the Bank is making concerted efforts of remedying these shortcomings in the context of the preparation of the new series ERSG IV and V. 6. Lessons Learned (a) Operation specific - The programmatic series of DPOs in a fragile setting has served as a useful grant instrument to progress toward the intended program results. Specifically, the ERSG II and III have provided the building blocks for institutional development and capacity building for enacting the regulatory framework for private-sector-led-growth in Burundi. Still, the program components needed to be embedded in a viable MTEF to enable the envisaged PFM (especially budgetary formulation and execution). - Unavoidably, the program has focused on activities and outputs—rather than on outcomes. The subsequent operations (e.g., ERSG IV and beyond) need to focus on results that can be monitored and evaluated. Hence, more emphasis should be placed on the “evaluability” of indicators to be tracked; in other words on robust M&E. The PETS findings for health and education would be crucial for better understanding transparency and accountability-related issues in these sectors. - GoB’s commitment to the reform program may be present at the highest echelons. But, it is not clear that broad consensus exists at the level of the implementing agencies. Accordingly, the design of future operations (ERSGs) should attempt to engage the broader audience (including program beneficiaries). - For fiduciary safeguards in DPOs, it may be commendable to rely on GoB’s systems of procurement and financial management. Nonetheless, the Bank needs to ensure that the systems of control and compliance are robust enough (through diagnostic CFAAs, CPIPs, and CPARs). 12 (b) Bankwide general application - With the Bank’s increasing emphasis on Governance and Anti-Corruption (GAC), greater attention is needed on: (a) political economy analysis; (b) fraud and abuse of government funds; and (c) voice and accountability (the demand side of governance). For complying with the expanding agenda, the Task Team would need to take cognizance of the recommendations of the Bank’s GAC Council. 7. Comments on Issues Raised by Borrower/Implementing Agencies/Partners (a) Borrower/Implementing agencies [None received] Persons Interviewed via video conference: - Mr. Bwabo, Head of Reform Unit in the Ministry of Finance. (b) Cofinanciers Written comments were received from Ms. Anja Sundby Hem from the Royal Norwegian Embassy in Kampala on the behalf of the co-financier Norway. These comments essentially endorsed the findings of the ICR. More important, the co-financier emphasized the importance of the lessons learned and their incorporation in future development interventions in Burundi. (c) Other partners and stakeholders [None] 13 Annex 1: Bank Lending and Implementation Support/Supervision Processes (a) Task Team members P102508 - BI-ERSG II Responsibility/ Names Title Unit Specialty Lending Wolfgang M. T. Chadab Senior Finance Officer CTRFC Finance Sameena Dost Sr Counsel LEGES Legal Eric Mabushi Economist AFTP2 Macroeconomics Paul Jonathan Martin Sr Environmental Spec. AFTEN Environment Maria Carolina Monsalve Transport. Economist ECSS5 Transport Jean-Pascal Nganou Senior Economist AFTP2 Macroeconomics Hannah Sibylle Nielsen Economist AFTP3 Macroeconomics David Tchuinou Senior Economist AFTP3 Macroeconomics Supervision Marie-Christine Balaguer Paralegal LEGAF Legal Aissatou Diallo Senior Finance Officer CTRFC Finance Sameena Dost Sr Counsel LEGES Legal Babacar Sedikh Faye Operations Officer CAFAN Legal, IFC Eric Mabushi Economist AFTP2 Macroeconomics Jean-Pascal Nganou Senior Economist AFTP2 Macroeconomics Judite Fernandes Program Assistant AFTP4 Macroeconomics Prosper Nindorera Senior Procurement Specialist AFTPC Procurement Renaud Seligmann Sr Financial Management Specialist AFTFM Financial Management P113235- BI-ERSG III Responsibility/ Names Title Unit Specialty Lending Sherri Ellen Archondo Senior Operations Officer AFTFE Operations Aurelien Serge Beko Consultant AFMBI Poverty Mourad Belguedj Consultant SEGOM Poverty Mariama Daifour Ba Program Assistant AFTP3 Program Support Xavier F. De La Renaudiere Consultant AFTP2 Food Security Bleoue Nicaise Ehoue Senior Agriculture Economist AFTAR Agriculture Eric Mabushi Economist AFTP2 Macroeconomics Janine E. Mans Junior Professional Associate AFTP3 JPA Hannah Sibylle Nielsen Economist AFTP3 Macroeconomics Renaud Seligmann Sr Financial Management Specialist AFTFM Financial Management Supervision Aurelien Serge Beko Consultant AFMBI Poverty Eric Mabushi Economist AFTP2 Macroeconomics Janine E. Mans Junior Professional Associate AFTP3 JPA Judite Fernandes Program Assistant AFTP4 Macroeconomics Renaud Seligmann Sr Financial Management Specialist AFTFM Financial Management 14 (b) Staff Time and Cost P102508 - BI-ERSG II Staff Time and Cost (Bank Budget Only) Stage USD Thousands (including No. of staff weeks travel and consultant costs) Lending FY07 4.6 31.8 FY08 41.4 243.0 FY09 5.6 45.0 Total: 51.6 319.8 (c) Staff Time and Cost P113235 - BI-ERSG III Staff Time and Cost (Bank Budget Only) Stage USD Thousands (including No. of staff weeks travel and consultant costs) Lending FY09 16.3 112.4 FY10 16.7 84.9 Total: 33.0 197.3 15 Annex 2: Beneficiary Survey Results Not Applicable. 16 Annex 3: Stakeholder Workshop Report and Results Not Applicable. 17 Annex 4: Summary of Borrower's ICR and/or Comments on Draft ICR No comments were received from the Borrower. 18 Annex 5: Comments of Cofinanciers and Other Partners/Stakeholders “Norway acknowledges the receipt of the ECR for ERSG II-III to which Norway contributed with NOK 160 million. It is rewarding to learn from the report that a number of indicators have been achieved, in particular in the PFM field. Of particular issues we would like to highlight: - The report says that the ERSG series has had a significant impact on enhanced resource allocation for priority social areas. We would like to learn more about this. Which social sectors and sub sectors have benefited the most and how has this affected other (non social) sectors? Have there been any absorption challenges? - We notice one of the lesson learned, which recognises that the programme has focused more on activities and outputs rather than on outcomes. It further states that future operations will need to focus on the “evaluability” of indicators and ensure a robust M&E framework. If this implies that there will also be more focus on outcomes that would be very much welcomed by Norway. - In the lessons learned chapter it further says that greater attention is needed on political economy analysis, fraud, etc. Norway would like to stress the importance of including gender as a cross cutting issue as well. In the next operation we would like to see how the objectives and planned interventions have taken gender issues into consideration and how they to the extent possible are gender sensitive.” 19 Annex 6: List of Supporting Documents None. 20 IBRD 33380 BURUNDI SELECTED CITIES AND TOWNS MAIN ROADS PROVINCE CAPITALS PROVINCE BOUNDARIES NATIONAL CAPITAL INTERNATIONAL BOUNDARIES RIVERS 29°E 30°E 31°E Lake This map was produced by the Map Design Unit of The World Bank. To Kigali Kivu The boundaries, colors, denominations and any other information shown on this map do not imply, on the part of The World Bank Group, any judgment on the legal status of any territory, or any To endorsement or acceptance of such boundaries. Gitarama Kagera Lake Lake Rweru Cohoha R WANDA KIRUNDO To Cyangugu Kirundo To Butare To Rulenge u ar y u an uv uv K R CIBITOKE MUYINGA NGOZI Muyinga To Cibitoke Nyakanura Ngozi Kayanza Rusiba 3°S Musada Ruvuvu 3°S Buhiga To Bubanza AYA AY K AYA N Z A Karuzi si Kakonko M w eru BUBANZA izi KARUZI CANKUZO Rus vu Cankuzo vu Muramvya V YA Ru R AM MU To Uvira BUJUMBURA L uvironza Gitega WA M WA R O RA Ruyiga DEM. REP. Mwaro RUYIGI BU OF CONGO GITEGA To Kibondo M gu JU p un Mt. Heha U Rum (2,670 m) Bukirasazi B Matana TA NZA NIA BURURI Mutangaro R U TA N A Bururi Most distant Rutana Rumonge headwater of the Nile River 4°S 4°S Makamba BURUNDI MAKAMBA z i ara Mabanda r ag Mu Lake Nyanza-Lac Tanganyika To Kasulu 0 10 20 30 40 Kilometers 0 10 20 30 Miles 29°E 30°E 31°E SEPTEMBER 2004