Public Disclosure Copy The World Bank Implementation Status & Results Report Economic & Monetary Community of Central Africa Financial Institutions (P099833) Economic & Monetary Community of Central Africa Financial Institutions (P099833) AFRICA | Africa | Financial and Private Sector Development Global Practice | IBRD/IDA | Specific Investment Loan | FY 2009 | Seq No: 11 | ARCHIVED on 27-Mar-2015 | ISR18030 | Implementing Agencies: Key Dates Key Project Dates Board Approval date:04-Dec-2008 Effectiveness Date:27-Apr-2009 Planned Mid Term Review Date:10-Feb-2015 Actual Mid-Term Review Date:-- Original Closing Date:30-Jun-2014 Revised Closing Date:29-Feb-2016 Project Development Objectives Project Development Objective (from Project Appraisal Document) The project aims to strengthen Central African regional institutions so that they can fulfill their mandates to encourage an expanded, better governed regional market, and a more transparent, better regulated and more competitive financial system. This will facilitate the re-utilization of oil revenues for investment in Central Africa. The project supports programs approved by the member governments designed to improve the efficiency of regional institutions. This will be accomplished by strengthening regional institutions. Project outcome indicators are given in Annex 3 and include increases in the percentage of foreign reserves managed regionally byBEAC, growth of investment in regional projects (primarily infrastructure investments), and increases in the percentage of banks meeting key prudential norms. Has the Project Development Objective been changed since Board Approval of the Project Objective? No PHRPDODEL Components Name Strengthening the BEAC:(Cost $14.50 M) Encouraging Regional Investment Financing:(Cost $15.00 M) Improving Regional Economic Policy Coordination, Financial Sector Supervision and Financial Integrity:(Cost $14.00 M) Support for Project Implementation:(Cost $3.00 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO  Moderately Satisfactory  Moderately Satisfactory 3/27/2015 Page 1 of 7 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Economic & Monetary Community of Central Africa Financial Institutions (P099833) Overall Implementation Progress (IP)  Moderately Satisfactory  Satisfactory Overall Risk Rating  --  Moderate Implementation Status and Key Decisions Thanks to an acceleration of the implementation pace, the project had a satisfactory implementation progress between June and December 2014. As a result, the implementation progress rating was upgraded from moderately satisfactory to satisfactory since the project has actually met and surpassed 2 of its 3 Key performance indicators. Currently, over 20 activities are being implemented simultaneously for the 6 beneficiary institutions (BEAC, COBAC, CEMAC Commission, BDEAC, COSUMAF, and GABAC). As a result of the solid implementation pace over the last 6 months, on December 31, 2014 the disbursement ratio for the first half of the fiscal year was at 17%, and the Africa regional target of 22% disbursement for a fiscal year will be surpassed by March 2015. The project is currently aiming to even reach 35% and come close to 40% disbursement ratio, which is well beyond its own target for this fiscal year. This results largely from the dedication of the project coordination unit and some of the beneficiaries, as well exemplified by the CEMAC Commission, the institution responsible for the regional integration agenda. Despite having to be moved away from its headquarters in Central African Republic, the CEMAC Commission managed to carry all the activities planned under the Project, thus dibursing fully the fund allocated to this institution. This has translated in a strengthening of CEMACs' capacity as envisaged in the PDO. Likewise, BEAC’s capacity and management systems have been significantly strengthened through the implementation of a wide range of activities, which brought about a better ability to carry out its mandate as a Central Bank. Although all this progress planned under the project was made, it is important to note that there is still more progress to be made by BEAC to further improve its performance. Now that robust systems are almost in place, the main challenge remains a culture of too much adherence to procedures and processes, as opposed to one where results are also taken into account while respecting the spirit of the procedures. This challenge will take time to address. This could be done through a follow up operation, which is likely to be requested by the Borrower. The Knowledge generated through the project’s implementation coupled with what will be developed through the ongoing FSAP could help inform the design of the next assistance to BEAC and some of the other regional financial institutions. Likewise, COBAC’s capacity – as banking regulator – has been strengthened. This has been done, among other activities by the recruitment of 20 new staff, through the training of its staff and the development and by setting up of new computer aided information system to support the supervision of the banking sector. As this important progress started from a "low base" or weak institutional base, more needs to be done to bring COBAC to be on par with other banking regulator. Moving forward, the Project needs to maintain the accelerated implementation pace that took place over the last 12 months. To that end, the task team will carry out a supervision mission in February 2015 since the one envisaged for December 2014 could not take place as all parties were not available. In the meantime, key activities which need to be implemented between January and June 2015 are already underway and the projected disbursement for this period is US$ 6 million. As a reference to guide the project and task team the project’s disbursement projections for the next 6 months on a month to month basis were prepared. This document is attached to this ISR. 3/27/2015 Page 2 of 7 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Economic & Monetary Community of Central Africa Financial Institutions (P099833) Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance  --  --  Moderate Macroeconomic  --  --  Moderate Sector Strategies and Policies  --  --  Moderate Technical Design of Project or Program  --  --  Moderate Institutional Capacity for Implementation and Sustainability  --  --  Moderate Fiduciary  --  --  Low Environment and Social  --  --  Low Stakeholders  --  --  High Other  --  --  Moderate Overall  --  --  Moderate Results Project Development Objective Indicators PHINDPDOTBL  Increase in percentage of foreign reserves managed regionally by BEAC (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 35.00 50.00 50.00 50.00 Date 11-Nov-2007 16-Jun-2014 01-Dec-2014 29-Feb-2016 3/27/2015 Page 3 of 7 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Economic & Monetary Community of Central Africa Financial Institutions (P099833) PHINDPDOTBL  Growth of BDEAC financing of regional projects. (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 8.20 15.70 15.70 15.00 Date 31-Dec-2007 16-Jun-2014 01-Dec-2014 29-Feb-2016 PHINDPDOTBL  Banks accounting for percentage increase of sector assets complying with agreed prudential norms by end of project. (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 35.00 -- 70.00 80.00 Date 03-May-2010 16-Jun-2014 01-Dec-2014 29-Feb-2016 Overall Comments Intermediate Results Indicators PHINDIRITBL  Monetary programming conducted at regional level by Y4 (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Computer model has At regional Value At national level -- been completed, training (CEMAC) level is underway. Date 30-Jun-2008 16-Jun-2014 01-Dec-2014 29-Feb-2016 PHINDIRITBL  Central Bank/Government paper issued by Y3 (none issued now) (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Cameroon, Gabon and Central Tchad have all Bank/Governm Value None issued now -- succesfully issued ent paper paper. issued by Y3 Date 31-Dec-2007 16-Jun-2014 16-Jun-2014 29-Feb-2016 3/27/2015 Page 4 of 7 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Economic & Monetary Community of Central Africa Financial Institutions (P099833) PHINDIRITBL  Cross-border electronic payments transactions in wholesale and retail systems (SYGMA and SYSTAC) cumulative increase of 33% by Y3 and 61% by Y5. (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target (SYGMA and Cross-border payment (SYGMA and SYSTAC) SYSTAC) are said to have Value cumulative increase of -- cumulative increased (figures were 33% by Y3 increase of not available) 61% by Y5. Date 31-Dec-2011 16-Jun-2014 01-Dec-2014 29-Feb-2016 PHINDIRITBL  Revised and applied BDEAC's policies, procedures and internal controls by Y3 (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Outdated policies and Procedures are being Revised and Value -- procedures developed. applied by Y3 Date 30-Sep-2008 16-Jun-2014 01-Dec-2014 29-Feb-2016 PHINDIRITBL  All projects evaluated by BDEAC according to new policies by Y3. (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target The new policy is not yet All projects Value Non-standard policies -- finalized. evaluated Date 30-Jun-2008 16-Jun-2014 16-Jun-2014 29-Feb-2016 PHINDIRITBL  Improved portfolio performance of BDEAC, as measured by increased ratio of annual disbursements/commitments in the preceding year from 43% in 2007 to 70% by Y3 (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 43% in 2007 -- 60% 70% by Y3 Date 31-Dec-2007 02-Sep-2013 01-Dec-2014 29-Feb-2016 3/27/2015 Page 5 of 7 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Economic & Monetary Community of Central Africa Financial Institutions (P099833) PHINDIRITBL  New BDEAC's MIS, including accounting system, substantially in place by mid-term and generating financial reports in line with international standards by Y5 (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target In place by mid- term and Part of the system is in generating place and should be financial reports Value Lack of MIS -- completed by Project's in line with end. international standards by Y5 Date 30-Jun-2008 30-Sep-2013 01-Dec-2014 29-Feb-2016 PHINDIRITBL  Updated accounting plan for banks in place and used by banks by Y3 (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target In place and Value Outdated accounting plan -- -- used by banks by Y3 Date 30-Jun-2008 04-Oct-2013 04-Oct-2013 29-Feb-2016 PHINDIRITBL  Plan for application of microfinance regulatory framework and supervision system in place and applied by mid-term review (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target In place and Value Not applied -- Plan is in place. applied by mid- term review Date 30-Jun-2008 01-Apr-2013 01-Dec-2014 29-Feb-2016 Overall Comments Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed Disbursed P099833 IDA-45290 Effective XDR 20.40 20.40 0.00 10.32 10.08 51% 3/27/2015 Page 6 of 7 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Economic & Monetary Community of Central Africa Financial Institutions (P099833) P099833 IDA-H4340 Effective XDR 11.50 11.50 0.00 7.85 3.65 68% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P099833 IDA-45290 Effective 04-Dec-2008 27-Jan-2009 27-Apr-2009 30-Jun-2014 29-Feb-2016 P099833 IDA-H4340 Effective 04-Dec-2008 27-Jan-2009 27-Apr-2009 30-Jun-2014 29-Feb-2016 Cumulative Disbursements Restructuring History Level 2 Approved on 18-Jun-2014 Related Project(s) There are no related projects. 3/27/2015 Page 7 of 7 Public Disclosure Copy