Document of The World Bank FOR OFFICIAL USE ONLY Report No. 61307 - ML INTERNATIONAL DEVELOPMENT ASSOCIATION AND INTERNATIONAL FINANCE CORPORATION COUNTRY ASSISTANCE STRATEGY PROGRESS REPORT FOR THE REPUBLIC OF MALI FOR THE PERIOD FY08-FY11 April 28, 2011 Country Department for Mali AFCW3 Africa Region The International Finance Corporation Sub-Saharan Africa Department This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization. The last Country Assistance Strategy for Mali (report No.41746 - ML) was discussed by the Board on February 5, 2008. CURRENCY EQUIVALENTS Exchange rate effective on April 21, 2011 Currency Unit = CFA Franc (CFAF) $1 = CFAF 449 GOVERNMENT FISCAL YEAR January 1 – December 31 WEIGHTS AND MEASURES Metric System ACRONYMS AND ABBREVIATIONS AAA Analytical and Advisory Activities DTIS Diagnostic Trade Integration Study AFD Agence Française de Développement ECF Extended Credit Facility (French Agency for Development) ECOWAS Economic Community of West AfBD African Development Bank African States AMADER Agence Malienne pour le EDM Electricité du Mali (Electricity of développement de l’énergie (Malian Mali) Agency for Energy Development) EFA-FTI Education For All – Fast-Track API- Mali Agence de Promotion des Initiative Investissements (Malian Investment ESSD TF Trust Fund for Environmentally and Promotion Agency) Socially Sustainable Development ARV Antiretroviral EU European Union BHM Banque de l’Habitat du Mali (Malian EITI Extractive Industries Transparency Housing Bank) Initiative BIM Banque d’Investissement du Mali ESW Economic and Sector Work (Malian Investment Bank) EU European Union BoA Bank of Africa FIAS Foreign Investment Advisory Service CAADP Comprehensive Africa Agriculture FSAP Financial Sector Assessment Program CAS Country Assistance Strategy FY Fiscal Year CASPR Country Assistance Strategy Progress GAC Governance and Anti-Corruption Report GBD TA Governance and Budget CC Climate Change Decentralization TA operation CD Capacity Development GDP Gross Domestic Product CENA Capacity Enhancement Needs GEF Global Environment Fund Assessments GoM Government of Mali CFAF CFA Franc GPRSF Growth and Poverty Reduction CMDT Compagnie Malienne pour le Framework Développement des Textiles (Malian GSP Growth Support Project Ginning Company) ha Hectare CPAR Country Procurement Assessment HIV/AIDS Human Immunodeficiency Report Virus/Acquired Immunodeficiency CSIF Country Strategic Investment Syndrome Framework ICA Investment Climate Assessment DPL Development Policy Loan ICT Information and Communication DPT Diptheria, Pertussis and Tetanus Technologies DRM Disaster Risk Management IDA International Development Agency DSA Debt Sustainability Analysis IDF Institutional Development Fund IFC International Finance Corporation PHRD Japan Policy and Human Resources IMF International Monetary Fund Development Fund Kg Kilogram PIU Project Implementation Unit JAS Joint Assistance Strategy PRODEC Programme de Développement JSAN Joint Staff Advisory Note Décennal de l’Education (Ten Year M&E Monitoring and evaluation Edcuation Development Program) MDG Millennium Development Goal PRSC Poverty Reduction Support Credit MIGA Multilateral Investment Guarantee PRSP Poverty Reduction Strategy Paper Agency PSD Private sector development MoU Memorandum of Understanding RH Reproductive health MSME Micro, Small and Medium Enterprises SDR Special Drawing Rights MTEF Mid-Term Expenditure Framework SHA Secrétariat à l’Harmonisation de MW Mega Watt l’Aide (Aid Harmonization NRM Natural Resource Management Secretariat) OHADA Organisation pour l’Harmonisation SLM Sustainable Land Management du Droit des Affaires en Afrique SME Small and Medium Enterprise (Organization for the Harmonization SREP Scaling Up Renewable Energy in Low of Business Law in Africa) Income Countries Program ON Office du Niger SOTELMA Société des Télécommunications du PAGAM Plan d’Action Gouvernemental pour la Mali (Malian Telecommunication - GFP Modernisation et le Renforcement de la company) Gestion des Finances Publiques (Action SSN Social Safety Net Plan for Modernizing and Strengthening STEP Support and Training for Public Financial Management) Entrepreneurship Program PAPAM Projet d’appui à la productivité SWAp Sector-Wide Approach agricole au Mali (Agriculture T/ha Ton per hectare Productivity Project) TA Technical Assistance PEFA Public Expenditure and Financial UN United Nations Accountability UNDP United Nations Development Program PEMFAR Public Expenditure Management and WAEMU West African Economic and Financial Accountability Review Monetary Union PER Public Expenditure Review WAPP West Africa Power Pool PETS Public Expenditure Tracking Survey WBG World Bank Group PFM Public Financial Management WBI World Bank Institute IDA IFC Vice President: Obiageli K. Ezekwesili (AFRVP) Vice President: Thierry Tanoh (CXAVP) Acting Country Director: Ousmane Diagana (AFCW3) Director:Yolande Duhem (CAFWO) Task Team Leader: Sybille Crystal (AFCML) Senior Country Officer: Jérôme Cretegny (CAFW3) The following World Bank Group Staff contributed to the preparation of the CAS Progress Report: Sybille Crystal (TTL), Christian Eghoff, Fily Bouaré Sissoko, Clara Ana Coutinho de Sousa, Cheick Diop, Simon Davies, Tawfik Ramlootah, Fabio Galli, Fabrice Bertholet, Olivier Durand, Abdoulaye Touré, Yeyande Sangho, Agadiou Dama, Taoufiq Bennouna, Pierre Kamano, Aissatou Diack, John May, Setareh Razmara, Zié Coulibaly, Michel Noel, André Ryba, Fadwa Bennani, Leonardo Iacovone, Maiko Miayke, Michel Rogy, Brigitte Bocoum, Amadou Dem, Jérôme Crétegny, Deo Ndikumana, Conor Healy, Karima Laouali Ladjo, Mohamed Touré, Ronke Ogunsulire, and Frank Douamba. The team benefited from advice and guidance from Ousmane Diagana. MALI COUNTRY ASSITANCE STRATEGY TABLE OF CONTENTS Page I. INTRODUCTION ...................................................................................................................... 1 II. COUNTRY CONTEXT .............................................................................................................. 1 A. Political and Security Context ............................................................................................... 1 B. Economic Context ................................................................................................................ 2 C. Social and Poverty context .................................................................................................... 3 III. CAS IMPLEMENTATION PROGRESS .................................................................................... 4 A. Progress on CAS Strategic Objective I: Promote rapid and broad-Based Growth ................. 4 B. Progress on CAS Strategic Objective II: Strengthen Public Sector Performance................... 6 C. Implementation Progress ...................................................................................................... 7 D. Partnership and the Aid Effectiveness Agenda...................................................................... 9 IV. STRENGTHENED AND EXTENDED CAS PROGRAM ....................................................... 10 V. MANAGING RISKS ................................................................................................................ 12 List of Appendixes Country Specific appendixes Appendix 1: Mali CAS Updated Results Matrix Appendix 2: IDA Lending and Analytical Program Appendix 3: Status of MDGs Appendix 4: IFC and MIGA Programs Appendix 5: Partnership and Aid Effectiveness Appendix 6: Climate Change Effects on Malian Main Development Sectors Appendix 7: Mali Country At-A-Glance Standard CAS Annexes CAS Annex B2: Selected Indicators of Bank Portfolio Performance and Management CAS Annex B3: IDA Program Summary CAS Annex B6: Key Economic Indicators CAS Annex B7: Key Exposure Indicators CAS Annex B8: Operations Portfolio (IDA and Grants) CAS Annex B8: Statements of IFC‟s Held and Disbursed Portfolio Map No. IBRD 33443 I. INTRODUCTION 1. The Country Assistance Strategy Progress Report (CASPR) reviews the relevance of the Bank’s FY08-11 Country Assistance Strategy (CAS) for Mali. The CAS supports Mali‟s second poverty reduction strategy, the Growth and Poverty Reduction Strategy Framework (GPRSF), designed as the first phase of the 10-year action plan to achieve the Millennium Development Goals (MDGs). The 2007-2011 GPRSF promotes strong growth of average 7 percent per year and targets a reduction in poverty incidence from 56 percent in 2007 to 51.2 percent in 2011 through wealth generation, employment creation and strengthened public sector performance. The GPRSF is articulated around three strategic pillars: (1) developing infrastructure and strengthening productive sectors; (2) consolidating the public sector structural reform agenda; and (3) strengthening the social sector. The CAS selectively assists the Government of Mali (GoM) in achieving its key GPRSF objectives. This CASPR provides an update on the country context, progress toward achieving the CAS objectives and outcomes, evolution of key risks, and introduces areas of emphasis in the framework going forward. 2. The CASPR confirms that the strategic priorities of the CAS remain relevant and well aligned with national priorities and the Africa Strategy, and that progress toward CAS outcomes is broadly on track. The Bank‟s interventions, through its two strategic objectives to promote rapid and broad- based growth and to strengthen public sector performance, remain valid. Given Mali landlocked status, vulnerability to external shocks, low level of human development, and administrative capacity constraints, the new Africa Strategy endorsed by the Board of Director on March 1, 2011 provides a solid framework for moving towards achieving the CAS strategic goals. In that context, the CASPR emphasizes the need for attention in the key areas of competitiveness and employment, vulnerability and resilience, as well as governance and public sector capacity while deploying our partnership for more inclusive growth and social cohesion. Therefore, during the proposed CAS extension period, the Bank program will be a continuation of activities undertaken to support the GoM to enhance the regulatory and institutional framework for infrastructure and private investment to improve the provision of critical production factors as well as economic productivity and diversification, and to strengthen public sector efficiency for improved access to and delivery of basic social services. In addition, in order to take into account emerging challenges related to the volatility of commodity prices and the national and regional security situation and to respond to GoM‟s new priorities, special emphasis will be devoted to supporting the human development agenda and helping the GoM to address the population, education, youth, social protection, and urban and peri-urban challenges. II. COUNTRY CONTEXT A. POLITICAL AND SECURITY C ONTEXT 3. Mali continues to enjoy political stability and is deepening its democratic process in the run up to the 2012 elections. Presidential and parliamentary elections will take place in April and July 2012 respectively under a democratic system reinforced by the proposed constitutional reform package that includes the creation of an upper house of Parliament, strengthening of independent media and election watchdogs, and a new code of conduct for politicians. A referendum on the proposed changes is scheduled for 2011. 4. Insecurity in Northern Mali persists. The current situation results from a confluence of illicit trafficking, global and regional terror networks, and armed groups connected indirectly or directly to the legacy of armed insurgencies in the region. The area historically depends on trans-border flows of goods and people, in particular with Algeria, Mauritania and Niger. Mali‟s geographic position explains al-Qaida in the Islamic Maghreb‟s presence in Northern Mali, a lightly populated area with few development solutions and hence susceptible to illicit economic activity. To overcome this -1- challenge, Mali emphasizes the need for a regional “Sahelo-Saharan” solution combined with well targeted development programs tailored to the specific needs of the North of Mali. 5. Ongoing political crisis in Libya and Côte d’Ivoire makes Mali even more vulnerable to conflict and insecurity. Libya has a strong presence in Mali and plays a prominent role in the economy with major investments in several sectors, including banking, tourism, and agriculture. Furthermore, in the past, Libya‟s mediating role has been key in resolving conflict between Mali‟s central Government and the Tuareg communities in the northern part of the country. Libya is also home to thousands of Malian immigrants. In addition to their common membership in WAEMU, Côte d‟Ivoire and Mali maintain strong economic, social and cultural relationships. Côte d‟Ivoire remains Mali‟s biggest partner in the sub-region and its corridor still represents the channel for about 40 percent of Mali‟s trade. In addition, there is a significant number of Malians citizens living in Côte d‟Ivoire. B. E CONOMIC C ONTEXT 6. Despite a difficult international environment, Mali’s macroeconomic performance has been broadly favorable. The very limited integration of Mali with international capital markets insulated its economy from the direct effects of the global economic slowdown. Remittances dropped somewhat as labor markets weakened in Europe, but budget support by development partners was maintained. Real gross domestic product (GDP) growth averaged 5.1 percent a year in the 2008-2010 period driven by a strong performance of agriculture boosted by good climatic conditions, supportive policies ( including GoM‟s input subsidies) and robust prices for gold (75 percent of exports) that more than offset the decline in gold production. This contributed to the return of average inflation to 2.2 percent and 1.4 percent in 2009 and 2010 respectively, after reaching 9.1 percent in 2008 due to the o il and food crisis. Year-on-year inflation reached 3.6 percent in January 2011 due to the rise in international commodity prices and to trade disruptions linked to the turmoil in Côte d‟Ivoire. Favorable terms of trade helped the external current account deficit (excluding official transfers) decrease from 13.9 percent of GDP in 2008 to 9.0 percent of GDP in 2010. 7. Fiscal performance in the 2008-2010 period was in line with the GoM’s program supported under the IMF ECF arrangement. Despite the food and fuel crisis of 2008, the basic fiscal deficit was maintained at the sustainable level of 1.0 percent of GDP. With the implementation of an extraordinary program of investments financed with resources from the privatization of the telecom parastatal, SOTELMA, the basic deficit is temporarily unsustainable but the GoM is implementing a credible plan to return the deficit to sustainable levels by 2013. 8. While the medium-term macroeconomic outlook is favorable, Mali remains very vulnerable to exogenous shocks that may hamper its growth. Given the critical importance of agriculture in growth performance and consumer price trends, the Malian economy is particularly vulnerable to climatic shocks. The economy is also vulnerable to terms of trade shocks. Uncertainties increased in recent months with the political crisis in Cote d‟Ivoire and the political turmoil in Libya. Based on the above, real GDP growth is expected to be 5.3 percent in 2011 and to remain at that level during the 2012-14 period driven by high gold, cotton and grain prices. Agriculture is projected to grow at 8.3 percent in 2011 and 6.3 percent in the medium term. Average growth rate for gold is projected at 10 percent in 2012 and 2013 before gold production starts declining moderately starting in 2014. The recent surge in commodity prices is expected to cause a moderate increase in inflation to about 4.5 percent in 2011, returning to below 3 percent from 2012. Buoyant gold and cotton prices are expected to more than offset high oil and food prices thus helping strengthen the external current account balance in 2011 and beyond. The 2011 Budget Law targets a budget deficit of 2 percent of GDP, which could be revised to 2.5 percent to account for measures to mitigate the impact of the fuel and oil price increases on poverty. These could include reducing import taxes on some food items. -2- 9. To increase its ability to respond to shocks, Mali needs to accelerate actions to increase productivity and diversify its economy. This is rendered more urgent by the projected decline of existing gold production, Mali‟s main source of foreign exchange and an important source of fiscal revenues, which has already increased debt vulnerabilities. While the effects of rising commodity prices have been rather positive on Mali on the supply side, with high gold prices mitigating the decline of production in 2010 and the reinvigoration of cotton production as a result of rising international cotton prices, there is concern on the demand side with oil prices affecting the balance of payments and the budget deficit as the GoM is reluctant to pass the increase in international prices to domestic consumers. In addition, caution should be exercised given the uncertainty of commodity prices over the medium and long term. In line with the new Africa Strategy, the Bank program is strengthening Mali‟s efforts to raise agricultural productivity, better link farmers to markets and increase resilience on the agriculture side through its support to Office du Niger (ON) designed to improve the management of irrigated agriculture, ongoing analytical work on growth, and policy dialogue on the need for selectivity in the agriculture subsidy policy. The Bank is also supporting the establishment of a transparent tariff adjustment mechanism for energy products. In addition, the 2010 Debt Sustainability Analysis upgraded the risk of debt distress from low to moderate due to increased vulnerabilities related to higher volatility of gold exports. C. SOCIAL AND P OVERTY CONTEXT 10. Rapid population growth and high levels of fertility pose challenges to economic growth, poverty reduction, and achievement of MDGs. Preliminary results of the 2009 population census highlight the urgency in tackling demographic issues. At current net growth rate of 3.6 percent per year, the population (14.5 million) will double in 23 years. With a total fertility rate of 6.6 children, unchanged for the last two decades, and a mortality rate for children under five declining steadily, population in Mali is bound to continue to increase for a long time, given its age structure. With such population growth, GDP per capita growth is only about 1.5 percent. Mali‟s high population growth puts excessive pressure on public resources for service delivery. Only 3 MDGs are likely to be achieved (see Appendix 3). 11. Progress in expanding access to potable water has been made during the last decade, but the challenge remains to achieve the MDG targets. Access rate to safe drinking water is estimated at 73 percent in 2009 (78 percent of the population served in rural areas and 91 percent in urban areas). While progress in water supply is remarkable, sanitation remains confronted with major challenges. Only 32 percent of households have access to improved sanitation services in rural areas and 45 percent in urban areas. To sustain progress toward the MDG achievements, it would be necessary to provide water services to over 400,000 additional people each year and sanitation services to 720,000 people. This would cost about US$110 million a year for water supply (excluding large water production investments) and US$30 million a year for sanitation. 12. To reduce poverty, Mali needs to reach a higher level of GDP growth and better target pro- poor expenditures. GDP growth has not achieved the 7 percent required for rapid poverty reduction. Projections in the 2009 GPRSF Progress Report estimate poverty at 43.7 percent in 2009 (53.5 percent in rural areas from 57.6 percent in 2006 against 23.5 percent in urban areas from 25.5 percent in 2006). Actual poverty rates are expected in the coming months based on data from the 2010 household survey. The positive economic indicators have not translated into much improved human development outcomes. The country ranks 160 out of 169 countries in UNDP‟s 2010 Human Development Index. 13. Mali’s high vulnerability to a variety of shocks has increased the demand for social safety nets (SSN) programs. The scope and coverage of the existing SSN system is too limited and most interventions (mainly food transfers) are small in scale, designed as temporary programs, and financed -3- by external and ad hoc resources. Spending on SSN programs only corresponds to 0.5 percent of GDP, while over 25 percent of the population is food insecure. Given the needs of the chronic poor and the limited fiscal space available for SSN programs, an expansion of the SSN programs and an allocation of scarce resources to well targeted and cost-efficient programs are necessary. III. CAS IMPLEMENTATION PROGRESS 14. Good progress toward CAS milestones and outcomes has been achieved and the CAS program is generally on track. Notable advances have been made in relation to improved agricultural productivity, irrigation capacities, competitiveness of selected supply chains, business environment, efficiency of public expenditure management, immunization coverage, and access to rural transportation, electricity, and education (in particular primary education). Progress has been particularly slow in the health sector. Also, further progress will be required during the remainder of the CAS period, especially on key institutional reforms which have faced delays due to the time needed to reach a consensual approach rather than a lack of GoM‟s commitment to the reform agenda. With regard to infrastructure, the key challenges that Mali needs to tackle are in the area of the institutional and regulatory framework in the energy sector as well as electricity tariff issues, and the restructuring of the TRANSRAIL concession. Mali needs to further promote private investment with a regulatory framework for industrial zones and the implementation of the next phase of the investment climate reform program. Mali also needs to improve fiduciary oversight (especially external control). Special emphasis should be placed on improving equity and relevance of the education system, the management of the health sector, and addressing the demand for and use of population and reproductive health services given the high rate of demographic growth. AAA has been an important component of the CAS, both in addressing knowledge gaps in emerging country challenges and in supporting reforms at the sector level. IFC‟s strategy complemented IDA‟s efforts in the development of the private sector and the private delivery of health services. Details of progress to date and updated outcome indicators are reflected in the CAS results matrix (see Appendix 1). A. PROGRESS ON CAS S TRATEGIC OBJECTIVE I: PROMOTE RAPID AND BROAD-B ASED GROWTH 15. Agricultural productivity, irrigation capacities, and competitiveness of selected supply chains improved. The Bank has supported institutional reforms, investments in irrigable lands, and the rice initiative launched by the GoM as a response to the 2008 food price crisis. Mali adopted a new price mechanism linking domestic cotton prices to world market prices. The privatization of the four Compagnie Malienne pour le Développement des Textiles (CMDT) subsidiaries was launched and is expected to be finalized by mid 2011. The PRSC series has supported the privatization process and the adoption of the legislative framework establishing the regulatory structure for the cotton sector after the privatization of CMDT. The development of newly irrigated land developed led to a rice production increase of 26,000 tons in 2010. Going forward, Mali needs to further exploit its irrigation and commercial agriculture potential and to diversify its agricultural production beyond cott on and rice at ON. The Bank will strengthen its support to increase irrigation capacities, facilitate technology transfer to increase productivity with a particular focus on rice, cowpea and milk yields, and improve competitiveness of selected supply chains by promoting value addition for agricultural and livestock products. 16. Work is ongoing to improve natural resources management (NRM) and resilience to climate change (CC). To help Mali‟s agriculture and natural resource-based economy to adapt to uncertain climate, the Bank has provided analytical, TA and investment support (cost benefit analysis, public expenditure review for NRM and sustainable land management - SLM, and a Country Strategic Framework for Sustainable Land Management) (see Appendix 6). The Bank is helping to strengthen the disaster risk management (DRM) institutional framework, reinforce key institutions‟ technical capacities, and implement a pilot project for vulnerable communities‟ protection, given that nearly 30 -4- percent of Mali‟s population lives in areas at risk. The Agriculture Productivity Project is developing and disseminating land management tools and good practices for agriculture investments. Mali also benefits from the Integrated Land and Water Management for Adaptation to Climate Variability and Change trust fund which supports the establishment of an operational information system for DRM, CC and SLM. Going forward, the Bank will help strengthen the resilience of agricultural and natural resources sectors with the preparation of a regional Bank/GEF project in support of the Great Green Wall initiative. The Urban Environment Analysis could help identify areas of collaboration for sustainable urban development. 17. There has been good progress on several transport outcomes to increase access. With the Bank‟s contribution through the Second Transport Project and Transport Corridor Improvement Project, about 1,450 km of key unpaved rural roads have been either periodically maintained or rehabilitated and 220 km of key paved roads have been improved. The percentage of main roads in good condition increased to about 64.8 percent in 2011. Sustainability of road transport infrastructure has been enhanced by supporting the institutional development of Road Fund and Authority. Also, Bamako‟s airport safety has improved as a result of the investment in security and safety equipment financed through the West and Central Africa Aviation Security Project as well as the strengthening of the regulatory oversight of the airport operations by the Civil Aviation Authority. The restructuring of the TRANSRAIL concession is still underway but is suffering from a lack of decision making of the two governments overseeing the concession. TRANSRAIL legal protection from liquidation will expire before June 2011 and the only credible rescue package would involve an immediate joint contribution of CFA10 billion from Senegal and Mali ahead of reaching any agreement with the current or a new primary shareholder on the revised terms of the concession contract. Going forward, the Bank will focus on increasing all weather rural access, making rural and urban transport infrastructure more resilient to climate change by focusing on the provision of better drainage, small structures and culverts, improving the quality and efficiency of urban transport systems, supporting transport facilitation and road transport infrastructure on key regional corridors, and working with the governments of Mali and Senegal to ensure the effective restructuring of the TRANSRAIL concession through direct financial support to TRANSRAIL‟s 2020 investment plan. 18. Access to electricity improved but challenges remain in the sector’s institutional reform and its sustainability. Bank support to rural electrification contributed to increase access to electricity to 22 percent in 2010 (11 percent in rural areas). Mali is on track regarding the expansion of generation with the completion of two thermal generation plants. In addition, progress has been made on the regional power integration side with the 60MW Félou hydropower project expected to be commissioned by end 2012. The restructuring of EDM-SA has been initiated and the legal unbundling of the water and electricity sectors is ongoing. However, the implementation of EDM-SA recovery plan is slow and the company‟s financial viability deteriorated, impairing efforts to improve its operational performance. In a context of rising oil prices, the financial sustainability of the sector is a major issue. Following the July 2009 adjustment of electricity tariffs, progress has been slow vis-à-vis the adoption of the electricity tariff adjustment mechanism. An interim tariff mechanism, which defines guiding principles and the methodology for tariff adjustments, was adopted in February 2011.The technical work to calibrate the tariff formula should be completed in June 2011. Going forward, the Bank will support the GoM‟s emphasis on increasing access and pursue technical work and dialogue on institutional, regulatory and tariff issues, and on enhancing energy efficiency and demand-side management. In addition, as part of the Scaling Up Renewable Energy in Low Income Countries Program (SREP), AfDB, IFC and IDA will support the GoM to develop an investment strategy for renewable rural electrification with private sector involvement. 19. Mali has achieved considerable progress in improving the investment climate. SOTELMA, the national telecom company, has been privatized. An investment promotion agency has been established in 2006, and a one-stop shop for investors in 2009. It now takes 72 hours to register a new business in -5- Mali. Documentation requirements for trade logistics have been cut, the property transfer tax rate has been reduced, and tax filing has been consolidated. As a result of the implementation of a joint TA and partial credit facility by IFC and IDA, the share of short and medium-term small and medium enterprise (SME) credit in total bank credit has increased significantly. In addition, the IFC and the Bank implemented several programs to improve SME productivity and skills, including the Support and Training for Entrepreneurship Program (STEP), the Trickle Up Program and the Grassroots Business Initiative. Finally, IFC trained more than 250 entrepreneurs in the advantages of leasing, in partnership with 10 professional associations. Despite this progress, several challenges remain. The new industrial zone law, approved by the Cabinet, has not been submitted to Parliament. There is no equipped industrial zone in the country. As a result, access to equipped agro-industrial land is severely limited. Access to long-term credit remains a severe constraint for enterprises, in particular SMEs. To address these challenges, the Bank will support: (i) preparation of the regulatory framework for industrial zones following the adoption of the new law by Parliament; (ii) initial infrastructure investments in the industrial zone of Bamako-Sénou; and (iii) feasibility studies for agro-processing zones of Sikasso and Mopti. The Bank will also support phase 2 of the investment climate reform program and the new wave of reforms in the information and communication technology sector. B. PROGRESS ON CAS S TRATEGIC OBJECTIVE II: S TRENGTHEN P UBLIC SECTOR PERFORMANCE 20. Reforms are improving public expenditure management. Important steps were taken by the Government since 2007 in the context of the implementation of the PAGAM-GFP, supported by the second PRSC series. The budget is prepared with increasing regard to Government policy, reflecting a larger number of Ministries with rolling MTEFs. Competitiveness, value for money and controls in procurement has also improved. Procurement controls and regulatory bodies have been established and in 2010, open bidding procedure corresponded to about 77 percent of the total recorded Government contracts. The effectiveness of internal controls has also improved, helped by concerted efforts to increase capacity. Finally, good progress was made in budget reporting practices, as evidenced by the regular publication of intra-year budget reports and the submission of annual financial statements to the National Assembly on time for the discussion of the following year budget. Areas in which progress was unsatisfactory include external audit and intergovernmental fiscal relations. The framework for scrutiny of public finances and follow up by the executive is weak. Similarly, the framework for inter-governmental relations is inadequate, resulting in lower than planned transfers of resources from the central government to the decentralized level. To advance public finance management (PFM) reform, the Government approved in 2010 the 5-year PAGAM II, which will benefit from Bank support though PRSCs and the Governance and Budget Decentralization (GBD) TA operation. Priorities will include strengthening procurement practices, including through increased transparency and participation, strengthened quality of budget reports and financial statements, strengthened capacity for fiscal operations in a context of decentralization and enhanced fiduciary oversight. 21. Mali has made significant progress in expanding access to education, especially basic education. The Bank has continued its support to the GoM‟s ten-year education program (PRODEC). Implementation of the PRODEC resulted in increased gross enrollment rates for primary and lower secondary education. Communities, Medersas and private schools contributed to this increase. Primary completion rates improved going from 43.5 to 56.5 percent over the past five years and the gap in completion rates between boys and girls declined from 15 to 8 percent. The GoM performed well in terms of financing basic education with the share to primary education going from 35 to 40 percent and the share of non-teaching staff declining thereby improving the quality of education expenditures. However, there are serious regional and gender disparities, particularly in No rthern Mali. Efforts to improve quality have been made but equity and relevance of the education system remain problematic. Training goals were surpassed but only 300 schools have the necessary books. Secondary and post secondary, including vocational education and training, are particularly affected by the weak quality of -6- the system. This translates into low literacy and skill levels, scarce qualified labor, and almost non - existent and costly business support services resulting in low labor productivity. Going forward, the Bank will support the GoM to better define and implement an education program to increase the output and quality of the education system to improve the overall qualification of the labor force and to link the sector to the job market. 22. Except for immunization coverage, progress in the health sector is too slow. Immunization coverage has greatly progressed. The percentage of children under 1 year of age immunized with DPT3 progressed from 68 percent in 2006 to close to 100 percent in 2009. However, infant mortality at 103 per 1,000 live births and maternal mortality at 830 per 100,000 live births remain very high. Reproductive health (RH) indicators are poor with only 57 percent of deliveries attended by skilled personnel, and 8.2 percent of 15-49 year old women using contraceptives. So far, only 2.9 percent of Malians have access to health mutuals. Quality of care remains a problem. Human resource reforms have been implemented but they are limited to the creation of a new directorate that has not yet achieved its objective to post midwifes and nurses in the rural areas, thus resulting in large inequities in access to quality health services. Going forward, interventions have to be reinforced in the areas of RH, family planning, and financial protection of people requiring access to health services. IFC supports the private delivery of health services through the Health in Africa initiative and is providing TA to establish a public private dialogue committee and to create a private health sector alliance, improve the regulatory framework governing the private health sector, and increase access to financing for the private sector. 23. The national response to the HIV/AIDS and access to HIV/AIDS related services have improved. Sustained financial contribution to fight HIV/AIDS has enabled the provision of voluntary counseling and testing to more than 12,000 persons. Out of about 35,000 persons eligible for antiretroviral treatment, 70 percent have access to the treatment. Twenty-two private centers now offer testing services and more than 70 enterprises and business associations have implemented an action plan to fight HIV/AIDS. The GoM allocates about US$4 million every year to fight HIV/AIDS and is planning to set up a dedicated fund to try to address the unpredictability of development partner funding. The study to set up this fund is ongoing. The Bank plans to support GoM by strengthening the system in place to distribute antiretroviral drugs and provide screening services. The proposed Reproductive Health Project will continue the dialogue on strategic issues related to HIV/AIDS, including its mainstreaming in the GoM‟s program. C. IMPLEMENTATION P ROGRESS 24. Delivery of the planned IDA lending program has been on track and lending commitments exceed the indicative CAS program. Only the Governance and Budget Decentralization TA operation slipped in order to fully align its design with the 2010 action plan for modernizing and strengthening PFM. Mali has benefited from increased IDA amount thanks to the pilot crisis response window and reallocations. The Urban Local Governments Support Project will be delivered as planned. The grant/loan mix of IDA allocation in FY12 will be determined in June 2011 based on the risk of debt distress now assessed as moderate. Appendix 2 presents planned and actual deliveries of the CAS program. 25. While portfolio quality is overall satisfactory, challenges remain especially in procurement, and monitoring and evaluation (M&E). The current IDA portfolio comprises 10 operations, including one IDA-GEF blended operation, with net commitments of US$568.5 million and an undisbursed balance of US$334.2 million. The portfolio focuses on agriculture, energy, and institutional reforms. The Bank relies on annual development policy loans to assist the GoM with key structural reforms. Weak procurement capacity at project level, procurement delays, and deficiencies in planning projects‟ activities persist. Efforts are underway to ensure that all projects have a formal M&E -7- framework and an operational monitoring system. The weak statistical capacity is a main challenge in terms of results monitoring. The GoM and the Bank are working closely to address these issues through joint annual Country Portfolio Performance Reviews, regular project implementation reviews, and fiduciary trainings. In addition, the decentralization of the management of the Mali program is progressing steadily, thus providing enhanced and just-in-time support. 26. The Bank has developed sector-based and cross-cutting support in the area of governance. The Bank is supporting the GoM in strengthening the management capacity of the mining sector and improving its governance. A governance structure for EITI implementation was established which led to the designation of Mali as an EITI candidate country that is „close to compliant” in December 2010. International validation of Mali‟s EITI process is expected to take place during 2011 when the country achieves Compliant Status. The Bank carried out a governance assessment of the energy and transport sectors. Identified measures to deal with significant losses at the electricity company, EDM, were integrated in the design of the Energy Support Project, and discussions took place notably with regards to tackling the pervasive controls faced by the transport sector. The Bank is also focusing its governance work on streamlining the bidding process for greater transparency, enhancing the budget process. Two Public Expenditure Tracking Survey (PETS) in education and health uncovered significant leakages in delivery of key services. Following the suspension of some grants by the Global Fund to fight AIDS, Tuberculosis and Malaria after confirmation that US$4 million (36 percent of the funds) were embezzled or unjustified, the GoM prepared and shared a report of procurem ent and internal control breached in the management of these funds. The Bank is conducting a comprehensive financial management and procurement assessment which will result in the design of a fiduciary capacity building plan that will cover central, district and local levels, and of a governance strengthening plan. The Bank‟s work has also started emphasizing the demand side of accountability. 27. Challenges remain to better mainstream governance and anti-corruption actions in Bank’s operations, implement them at the sector level, and build social accountability. The PRSC series and the GBD TA operation will emphasize transparency, accountability and governance in public expenditure management and will build capacity to carry out PETS. The proposed Urban Local Governments Support Project operation will aim to support strengthened institutional capacity of five targeted urban local governments for improved service delivery and enhanced governance and accountability at the local level built around an effective fiscal framework designed to enable predictable resource transfers to urban local governments. A comprehensive analysis of the governance agenda is under preparation to review the legal, regulatory, institutional, and policy frameworks in place and their adequacy. To tackle the emerging challenges and slow implementation of key structural reforms, strengthened social accountability mechanisms could play a strong part to improve good governance and service delivery. The slow progress in EDM restructuring, its recovery plan and the electricity tariff adjustment mechanism is linked to sector governance challenges. Building political support for the reform by better showing the positive results the reform would bring would be key in the resolution of the current challenges. A proposal under the demand for good governance window of the Social Development Civil Society Fund has been accepted in order to carry out a study on instruments and tools for accountability for civil society representatives. 28. The Bank committed to strengthen capacity development (CD). Using the Capacity Enhancement Needs Assessment (CENA) approach sponsored by WBI in a few countries, four CD action forms were prepared on M&E, public procurement, regulatory framework in the energy sector, and public revenue administration. The financial and human capacity to implement the approach proved to be an obstacle to implement the approach. It was therefore only implemented through the IDF to strengthen the GPRSF results framework while the findings of the other CD action forms were used for procurement training sessions and embedded in the Energy Sector Support Project and two successfully completed IDFs on PFM. Statistical capacity development was provided through household survey analysis under the Belgian trust fund. CD needs are now being identified and -8- addressed through project preparation and implementation and under various non-lending and trust fund activities. 29. The Bank has strengthened its interventions to address gender-specific constraints. As a result of the 2006 gender assessment, gender specific measures are incorporated in Bank‟s operations and non-lending activities and the Bank is advocating incorporating gender-responsive actions into country strategy documents. Donors have supported the GoM design a gender and equity strategy. Through the Household Energy and Universal Access (HEURA) Project, women‟s associations manage some of the multifunctional platforms installed in 64 communities resulting in 7, 200 connections. Under the Gender and Energy Program of the Africa Renewable Energy Access Program, the HEURA Project strengthened the capacity of the national agency on household energy and rural electrification, AMADER, to integrate gender activities. The Bank will now carry out a full gender and energy needs assessment in selected villages to develop an action plan for training, knowledge sharing and CD activities for women in rural communities. Gender-specific measures were also incorporated in all agriculture, NRM and CC activities. The main issues tackled relate to the vulnerability of women and female-headed households, capacity building for social institutions and women‟s groups, and promotion of specific adaptation strategies under the leadership of women‟s organizations. An ESSD TF on gender helped design an operations manual which addressed access to financial resources and training for female producer groups, and female participation in agricultural policy decision making. Under the GSP, two women associations are participating in the managing association of the matching grant fund under the Enterprise Support Services component. In the context of the analytical work on SSN, the Bank prepared a report on welfare effects of widowhood in Mali. Going forward, the upcoming RH constraints assessment will include social norms analyses that affect women‟ RH choices and inform new social marketing campaigns to increase uptake in family planning use. The preparation of the RH Project will address gender issues as they are related to RH outcomes. In addition, work has begun on a series of poverty and gender notes using the 2010 Household and Firm Enterprise surveys to inform the preparation of the new GPRSF. D. PARTNERSHIP AND THE A ID E FFECTIVENESS A GENDA 30. The GoM and donors have made some progress on harmonization and alignment, but room for progress remains. A first joint donor assistance strategy (JAS) for the 2009-2011 period was signed by 14 donors and focuses on results and linkages to the GPRSF with the view to improving complementarities and joint policy matrices, funding mechanisms, and reviews. Key achievements include: improved disbursement predictability; reduction in the total number of budget support triggers; increase in number of donors using direct budget support; and progress towards more programmatic approaches in some sectors (water, decentralization and transport, and to some extent agriculture). Country-led aid management is being strengthened through the gradual operationalization of the GoM‟s Aid Harmonization Secretariat (SHA). The JAS II process will build on the challenges faced in many countries to move forward with joint programming and division of labor. On its side, the Bank is advocating an incremental process with up-front focus on measurable measures. The development of a National Aid Policy should provide increased visibility and traction to aid effectiveness issues. 31. Donor assistance is better coordinated at sector level but remains fragmented overall, and the capacity of Mali’s institutions and financial management mechanisms remain weak. Three sectors are covered by sector budget support (education, health, and decentralization) and two other s are in process (irrigation and water). During the CAS period, two new donors have started using budget support, but the share of budget support to total disbursements has gone down from 33 percent in 2006 to 23 percent in 2010. The Bank chairs the donor working group on macro-economic issues, and progress has been made in terms of quality of the joint budget review. Efforts to harmonize the conditionality framework have reduced the joint trigger matrix to 39 triggers. The CAS period has -9- seen progress on a number of harmonization indicators (especially the JAS, framework for budget support and program-based approaches). However, reducing the use of project implementation units has proved to be challenging. The Bank is carrying out a PIU study to gain deeper understanding of the drivers behind the creation of PIUs, and the impact on portfolio quality (see Appendix 5). IV. STRENGTHENED AND EXTENDED CAS PROGRAM 32. Drawing on the lessons from the implementation of its first two GPRSFs, the GoM launched in December 2010 the preparation of its GPRSF III. The 2009 Progress Report of the GPRSF II indicates that priority measures for 2011 will focus on six areas: education, health, food security and rural development, development of SMEs, reforms in the business environment, and the promotion of democratic governance. It further lays out key challenges to ensuring stronger growth, namely (a) the high population growth with growing and unsustainable pressure on production resources and increased demands in terms of nutrition, water supply, health, education an d training, (b) youth employment, (c) environmental degradation and CC, and (d) MDG achievement. These challenges were reconfirmed during the launching workshop for the new GPRSF that will cover the period 2012- 17 to coincide with the electoral cycle. The GoM also launched the process to update the JAS in February 2011. 33. In light of these considerations, the Bank proposes to extend the CAS period by one fiscal year. The extension will allow the Bank to fully align the preparation of its next CAS with the new GPRSF and the updated JAS. During the CAS extension period, the Bank‟s approach will be to: (a) maintain a continuous engagement on its activities to consolidate gains to promote rapid and broad- based growth and to help address critical structural and governance related weaknesses in key productive sectors; and (b) increase its engagement to support the GoM‟s renewed strategic priorities in human development and service delivery (population growth, education sector, youth, and urban water supply and sanitation) in order to place greater emphasis on inclusive growth. To that effect, the lending program for the remainder of FY11 (Urban Local Governments Support Project) will be delivered as planned and the Bank will deliver Reproductive Health and Higher Education Projects and prepare Youth Employment, and Water and Sanitation Projects in FY12. The third PRSC series will start in FY12. It will be integrative and focus on reforms to strengthen governance foundations (including PFM), reduce poverty, and protect the vulnerable. The IFC will continue to complement IDA activities to explore opportunities to support the private sector. 34. The Bank will complement its lending support with targeted analytical work and TA to tackle emerging challenges. Consistent with the GoM‟s commitment to building its social protection base and the findings of the Bank‟s FY11 Social Safety Nets review, and in a context of high volatility of commodity price, the Bank will continue to provide TA for policy dialogue on social protection, including support to reforms in contributive and non contributive schemes. Ongoing analytical work on growth, gender (including a poverty profile) to support the GoM‟s medium term policy formulation on growth, and poverty and gender challenges will be completed in FY12. In addition, the Bank is providing TA for the preparation of the PEFA update, which will inform revisions to be made to PAGAM II. The analytical work program will also encompass TA for the information and communication technologies (ICT) sector, PRSP dialogue and the preparation of a PRSP-JSAN. The Bank will also continue to support GoM activities to better engage its Diaspora in the transfer of knowledge and use of remittances for community development through the implementation of an Institutional Development Grant and a Japanese Social Development Fund to conduct need assessments at the community level in the Kayes region. 35. The Bank is responding favorably to the request for addressing the rapid population growth and higher education challenges. The Bank will prepare a RH operation that takes into account the multi-sectoral dimension of RH and family planning. The operation will aim at increasing the demand - 10 - for and use of reproductive health services with a clear focus on family planning, nutrition and high impact interventions proven to contribute to the reduction of maternal, neonatal and child mortality. In addition, the Bank will pay special attention to improving girls‟ education and will use the Demography and Economics Study as basis for public debate and policy formulation to strengthen incentives for addressing demographic challenges. The GoM has renewed its focus on the importance of higher education and skills development as a way to address shortcomings in the governance system, weak linkages between public financial management, sector strategy and decentralization, the low level of labor productivity on account of insufficient and low quality of education. The Bank is expanding its support to higher education and skills development with the aim to build a solid foundation for growth and to create new opportunities for youth to access the labor market. The FY12 Higher Education Project aimed at improving the sector‟s relevance, management and efficiency will be complemented by an EFA-FTI Grant Development Policy Support (currently under preparation) which focuses on policy and institutional reforms and the preparation of a Youth Skills Development operation (delivery in FY13) aimed at improving productivity, leadership, and competitiveness. 36. To better mitigate the consequences of exogenous shocks, the GoM has asked the Bank to help develop a comprehensive social protection strategy, including more efficient and relevant SSN programs. The priority actions toward the development of a more efficient and cost-effective SSN system would include: (i) strengthening the strategic, institutional, and financial framework for designing, implementing, managing, monitoring, and evaluating SSN programs; and (ii) developing a plan for improving the effectiveness of the SSN system by reforming existing programs and designing new ones aiming to reduce small or ineffective programs while strengthening other viable programs with better targeting and outcomes. Going forward, the Bank will consider an operation to help develop a permanent SSN system that addresses the needs of the chronic poor and that can readily be scaled up during periods of adverse natural hazards and exogenous shocks. 37. A key priority for the GoM is to mobilize the financing for Water Supply Project (Kabala Project) to ensure adequate water supply for Bamako and eradicate the recurrent water shortages in most neighborhoods of the capital city. While major investments have been made to rehabilitate and expand water and sanitation infrastructure, investment sustainability remains an important challenge for the sector. Lack of maintenance and underinvestment put at risk the gains made in the expansion of the service. This is evidenced by the large number of rural water systems that are not operational and the insufficient water production and distribution capacity in Mali, and notably Bamako. As the urban population continues to grow, especially the peri-urban areas of Bamako, the Bank will complement donor efforts by supporting the Kabala program with a targeted Water and Sanitation Project in early FY13. 38. The Bank stands ready to help weather the impact of the insecurity in Northern Mali as well as the regional instability. While the GoM has a special investment program for the Northern part of Mali and is taking the lead in responding to the regional uncertainty, if needed, the Bank could scale up development activities currently implemented in the Northern part of the country through its operations, and further adapt its ongoing projects. Following the preparation of an internal note on the potential impact of the Libya crisis, the Mali and the Post Conflict and Social Development Unit teams have started working together to prepare a follow through of the 2011 World Development Report on conflict, security and development for which Mali was a focus country. The analysis will deepen the understanding of the underlying factors behind insecurity and how our operations can best mitigate security risks. Associated to this, the Bank is partnering with the UN agencies, other multi-laterals, and bilaterals to help the GoM deal with the conflict and insecurity. 39. The extended CAS period approach is fully consistent with the new Africa Strategy’s Governance foundations, in addition to its pillars designed to address competitiveness and employment, and vulnerability and resilience challenges. It also enables the Bank to target IDA 16 - 11 - priority themes and results expectations. The Bank will (a) implement its portfolio of operations supporting infrastructure, agriculture productivity, and growth-oriented sectors, (b) launch the urban and GBD TA Projects to tackle urbanization challenges and the provision of basic service delivery at the decentralized level, and (c) build on TA, analytical work and trust funded activities carried out to help tackle vulnerability to commodity price fluctuations, better promote climate change resilient development, improve resilience to exogenous and natural shocks, and foster greater transparency, accountability and governance. In addition, the Bank will engage more directly to help Mali address the low level of human capital and generate jobs, especially for the young population. The Bank will also seek to renew the momentum of economic reforms with a new PRSC series that will focus on a limited set of multi-sectoral issues to catalyze policies for faster growth, a more competitive economy with employment opportunities, and better delivery of basic services. Finally, the Bank team will pay special attention to further scaling-up gender mainstreaming and efforts on gender-related MDGs. The development of the new CAS will fully integrate gender and climate resilient development issues and strengthen its results framework accordingly. V. MANAGING RISKS 40. Overall, the risks assessed in the CAS remain valid but the challenging international and regional environment of recent months has somewhat raised the risk level. While Mali‟s political environment still represents a limited risk to the program, the 2012 electoral process is more than likely to maintain stable political arrangements based on democratic rule. Mali is, however, highly exposed to the political uncertainties of its neighbors. Persistence of the crisis in Côte d‟Ivoire and Libya could have significant negative effects, through various transmission mechanisms, on the Malian economy and society at large. The Bank is preparing an analysis to better understand the underlying factors behind the insecurity and how we can best respond through our development program. To minimize the risk of trade disruptions due to the political crisis in Côte d‟Ivoire, Mali has strengthened alternative trade routes and the Malian council of shippers has reached a customs agreement with the Benin authorities to use the port of Cotonou as an import/export gateway which includes preferential arrangements for customs clearance and other services. The potential increase in transportation costs as a result of the diversion of exports and import to more distant ports, fall in livestock exports and decline in remittances may be mitigated by the rising demand for domestic products, resulting from higher domestic supply, higher international prices and transaction costs. The turmoil in Libya, could affect foreign direct investments as Libya is a major investor in ON and tourism and is financing a number of public projects, as well as remittances and aid flows. 41. Mali remains highly vulnerable to fluctuations in commodity prices, external shocks and to CC. Continued upward pressures in food and fuel prices in global markets could affect Mali‟s inflation, lead to an increase in poverty, further burden the budget, and have significant fiscal impact depending on the GoM‟s response to weather the price increases. Mitigation factors include Mali‟s strong record of prudent macroeconomic management, in addition to Bank support to (a) enhance productivity and competitiveness of the cotton sector, diversify agricultural production and further develop commercial agriculture, and improve management of natural resources to reduce vulnerability and enhance resilience to climatic shocks, (b) lower energy costs through connecting with lower-cost regional producers; (c) reform the investment climate, (d) strengthen PFM, and (e) monitor closely parastatal companies‟ financial and cash positions and restructuring efforts. 42. The upcoming presidential election might be a period of delay in reform implementation. In the wake of the 2012 presidential elections, internal vested interests may slow further reforms and commitment to finalize key structural reforms in energy, service delivery at decentralized level, and investment climate may fade away. The Bank will continue to engage through its operations and in dialogue on the benefits of timely implementation of the reform agenda. - 12 - APPENDIX 1. MALI UPDATED CAS RESULTS MATRIX FY08–12 Revised CAS Outcomes Progress Towards CAS Original CAS Outcomes Progress Towards CAS Outcomes WBG and Development and Indicators Milestones and Indictors Partners’ Support (If applicable) CAS Strategic Objective 1. Promote rapid and broad-based growth Agriculture productivity Grower networks are in place Ongoing lending: increases for specific crops in for potatoes/cowpeas seed  Ag Competitiveness and targeted areas: multiplication, and more and Diversification Project  Cotton yield increases by 15%  Indicator met. Cotton yield at more farmers have adopted  Rural Community from its 2005/06 level (950t/ha) 1,020 t/ha. new post-harvest & irrigation Development Project + by 2011. technologies. AF from the global food  Cowpeas yield increases from  Indicator met. Dissemination of crisis response window 400 kg/ha (2004) to 600 kg/ha selected cowpea seeds raised Work has started on  GEF Gourma Biodiversity (2011). yields from 250 to 750 kg/ha. technology dissemination Conservation Project mechanisms and on  Growth support Project improvement of research-  Agricultural Productivity extension linkages. project Competitiveness for selected Coordination mechanisms  GEF Agricultural supply chains improves in along specific supply chains Productivity targeted areas are in place: Two inter-  PRSC 5  Mango exports progress from  Indicator met. Mangoes export professional entities created  West Africa Agriculture 5,500t (2007) to 8,000t (2011). increase on the international for cotton and mangoes have Productivity Program  Local potato seed production market. Estimation: 10,000 t. been established; private  West Africa Biodiversity covers 60% of national needs  Indicator on track. The volume operators and producers for Project by 2011 from ~ 0% in 2007. of potatoes marketed on the fruit and vegetables filières are organized; and a fruit and  IFC – Agribusiness: national and regional markets GRIMAS, Grand Moulin reached 29,000 tons. vegetable packaging facility is functioning. du Mali Availability of credit for New financing instruments Planned lending: agriculture improved: (warehouse receipt, weather-  PRSC-6  Credit granted by BNDA and  Indicator met. Loans granted by index-based insurance) have MFIs to agriculture increases MFIs and BNDA totaled 161.1 not been developed. The AAA and TFs: from CFA 70.3 billion (2003) to billion CFA in 2009 (most recent study on weather index  Rural Finance Study - 72 billion by 2011. data available) insurance and the regulatory completed framework for the warehouse were not done. Also, the  Urban Environmental microfinance institutions Analysis – to be were not consolidated into completed by end FY11 networks. Focus was put on  Sustainable Land restructuring existing Management PER/CBA – networks rather that bringing completed in the independent MFI into  TA dialogue on SLM – - 13 - Revised CAS Outcomes Progress Towards CAS Original CAS Outcomes Progress Towards CAS Outcomes WBG and Development and Indicators Milestones and Indictors Partners’ Support (If applicable) networks. ongoing  CSIF – ongoing Agricultural pressure on natural Work to disseminate  DRM grant – ongoing resources reduced in Office de sustainable land management  Integrated Land and Niger and cotton zones: tools & good practices Water Mgt. for  By 2011, cotton producing  Indicator revised. Cotton  Indicator met. Cotton integrated in agricultural Adaptation to Clmate areas remain at 2006 level producing areas remains at production intensified without investments to producers has Variability and Change (500,000 ha). maximum of 2006 level. increased land extension. Cotton started. TF - ongoing Revision to clarify that producing areas currently at objective is to reduce land 250,000 ha. Partners: extension for cotton  AfDB, MCC, USAID, production to increase Denmark, Dutch, France, intensification of cotton Canada, EU , IFAD, production areas. Swiss.  By 2011, soil salinity remains at  Indicator dropped since the its 2006 level in Office du evolution of salinity is difficult Niger (20% of irrigated ha) to assess and monitor on such a zone. large scale area. Improved donor coordination With the set up of the FNDA and country leadership: mechanism and PAPAM  GOM has set up a national  Indicator on track. FNDA implementation, work has pooled financing mechanism created but not yet operational. started to move toward for agricultural development. PAPAM operation now effective pooled financing mechanism is supporting such instrument. for agricultural services co- managed by producers and the GoM, as well as to formulate sector MTEF and its use for programming. Integration of Mali with regional Decrees and legislation to Ongoing lending: and global markets by increased reduce security checkpoints  Transport Sector 2 + AF efficiency of transport operators and safety checkpoints to an  WA Transit and Transport (roads, railway, and air) : agreed minimum on internal Facilitation Project  Transport costs between  Indicator on track. Indicator routes adopted. Sustained  West and Central Africa unloading imported containers linked with ongoing progress political commitment and Security Project (20-foot TEV) from ship to from activities from the regional capacity of GoM to enforce  Growth Support Project final destination are reduced by project. Outcome by end of CAS rules is needed.  IFC – US$25 million at least 10%. Baseline: $1300 in period will be conditioned by investment in Aga Khan 2006. external context – crisis in Côte Foundation for Celeste d‟Ivoire, and spike in oil prices. Air which includes Air  Rail freight has increased  Achievement of indicator is - 14 - Revised CAS Outcomes Progress Towards CAS Original CAS Outcomes Progress Towards CAS Outcomes WBG and Development and Indicators Milestones and Indictors Partners’ Support (If applicable) Baseline: 423,000 t in 2005. contingent on concession being Mali, Air Burkina and Air Target: 50% increase by 2011. restructured and political Uganda commitment or lack of from Malian and Senegalese Govt. AAA and TFs: GOM ensures effective National transport sector  Governance diagnostic leadership and coordination in strategy study was completed note - completed transport sector: jointly by GOM and other  Bi-annual joint evaluation and  Indicator on track. Extensive donors and national transport Partners: review missions conducted. consultations between donors sector strategy adopted by the  AfDB, EU, MCC, BOAD, and development partners are Authorities. KfW meeting on a regular basis with the Government to ensure coherence with the Govt. strategic objectives.  Joint evaluation matrix  Indicator dropped. The sector prepared and used as has a coordinated approach monitoring tool. between development partners and partners and the Government but in a less structured manner than through the monitoring of a formal joint evaluation matrix. More rural localities have year- 1,450 km of rural/secondary round transport access: roads rehabilitated by 2009.  Less than 20% of rural  Indicator revised. Percentage  Indicator on track. 40% of population lives more than 2 of people who have access to all people who have access to all km from a year-round passable weather roads has increased in weather roads in the project road. Baseline 2006: 41%. the project impact areas. impact areas at end 2010. Indicator reformulated since baseline data is only collected for project impact area. Baseline 2007:32%; target for end 2011:42%.  % of main roads in good  Indicator met. 64.8% of main condition increases from 35% roads are currently in good (2005) to 65% (2011). condition. Improved air safety and security Funding mechanisms have in Mali as measured by: been strengthened to ensure  70% compliance rate with  Indicator on track but adequate resources for annual ICAO safety standards. implementation delays of IDA road maintenance overseen funded project and delays in by the Road Authority - 15 - Revised CAS Outcomes Progress Towards CAS Original CAS Outcomes Progress Towards CAS Outcomes WBG and Development and Indicators Milestones and Indictors Partners’ Support (If applicable) refurbishment of Bamako airport through the creation of a under MCA funded project. combined road agency and  40% compliance rate with  Indicator on track but road fund and increased levy ICAO security standards. implementation delays of IDA on fuel to fund road funded project and delays in maintenance. refurbishment of Bamako airport under MCA funded project. Work is ongoing on the new  Fewer than 10 serious airport  Indicator met. 5 airport security regulatory framework for security problems per year. problems in 2010. operation of road, air, and  Time to clear arriving  Indicator met. About 30 river transport agencies, and passengers reduced from 70 minutes to clear arriving the concession contract minutes (2006) to 30 minutes passengers. between the GoM and a (2011). private operator. Availability of critical +80 MW of thermal capacity Ongoing lending: production factors increased. delivered first quarter 2011 to  Household Energy and reduce power outages; Rural Universal Access + AF Additional 30-45 MW of thermal  Indicator on track. +80 MW of electricity access rates are  Energy Support Project capacity installed by 2011 to thermal capacity confirmed for increased to 11% today.  WAPP APL 2 Felou increase power system reliability. 2012. Hydropower Project + AF  PRSC-5 EDM SA achieves financial EDM SA technical and viability and operational nontechnical losses remain Planned lending: efficiency through improved stable at 23%; tariff  PRSC-6 sector governance as measured adjustment took place in July by: 2009. Awaiting regulator AAA and TFs:  EDM maintains technical and  Investments to reduce technical decision on tariff indexing  AF with trust funds from non-technical losses below losses only expected to have full formula. Russia and The 20%. effect in 2013. Netherlands – ongoing  Electricity access rates have  Indicator met. Ongoing work on  Scaling Up Renewable increased from 2% in 2005 to at construction of transmission Energy in Low Income least 6% in 2011 in rural and lines. Satisfactory progress Countries program peri-urban areas. on the Malian side. No (AfDB, IFC and IDA) –  Significant physical progress is  Indicator on track. Current rate progress on the Ivorian ongoing made on electricity network. of construction of the  IFC Kenie Hydro Project interconnection with interconnection is 47.9%. – ongoing neighboring countries: However, ongoing crisis in Côte  Governance diagnostic 85% of planned transmission d‟Ivoire and lack of political note - completed lines constructed. commitment on the Ivorian side for the interconnection could Partners: compromise progress.  AfDB, France, Aga Khan, - 16 - Revised CAS Outcomes Progress Towards CAS Original CAS Outcomes Progress Towards CAS Outcomes WBG and Development and Indicators Milestones and Indictors Partners’ Support (If applicable) BOAD, ECOWAS, EU, India, KfW, Sweden, Dutch Efficiency of commercial banks GoM share in BIM reduced Ongoing lending: improved for better financial from 61.5 % in 2007 to  Growth Support Project intermediation: 10.5%.  PRSC-5  Spread between lending and  Indicator met. Spread between A strategy to reduce number  IFC – financial markets deposit rates reduced from lending and deposit rates of 7.9% of NPLs is not yet in place. (BoA Mali, Ecobank average of 9.1% in 2005 to 8% in 2009 (more recent data Mali) by 2009. available)  IFC - tourism (Hotel  Ratio of gross NPL to total  Revised indicator. Ratio of  2009 ratio is 22.6%. Salam) ; food processing loans decreased from 29% in gross NPL to total loans and packaging (GRIMAS June 2005 to 10% by 2011. decreased from 29% in June – supports industries that 2005 to 17% by 2011. Target supply to hotels; revised to 17 % (10% manufacturing of printed unrealistic) products (Graphique  Share of total credit to private  Revised indicator. Bank credit  The value for 2009 is 52.6% Industries – prints posters sector to increase from 51.7% to SMEs increase from 25.6% (latest data available). and brochures for tourism in Dec 2005 to 60% in 2009. in 2006 to 30% of total loans industry) and advances by 2011. Original indicator no longer tracked Planned lending: following restructuring of the  PRSC-6 project. Data for this indicator  Urban Local Governments is collected through GSP Support Project Project. A proxy is being used  Water Supply and to measure credit to SMEs. Sanitation Project Increase in private sector New civil and commercial investment (domestic and procedures adopted. AAA and TFs: foreign): Investment promotion agency  Rural Finance Study –  Number of formal  Revised indicator. Time taken  Indicator on track. Time taken operational. Business completed manufacturing enterprises to approve new investments is to approve new investments is licensing has been  ICA update – ongoing increased by 10% by 2011. reduced from 45 days in 2006 currently 26 days. streamlined with the creation  Programmatic TA: ICT Baseline: 350 firms in the to 15 days in 2011. Original and operationalization of the policy dialogue - ongoing manufacturing sector. indicator dropped following one stop shop.  IFC PEP-Africa restructuring of the GSP /FIAS:TA in investment Project. climate – ongoing  Access time to land by firms is  Revised indicator. Number of  Indicator on track. Current Partial credit guarantee  IFC support to micro- reduced from 180 days to 30 days for property registration value: 29 days. facility established and operating with 2 banks; trade entrepreneurs program days. reduced from 44 days in 2005 finance guarantee launched (STEP) – ongoing to 30 days by end 2011. with one bank.  IFC Africa leasing Original indicator dropped - 17 - Revised CAS Outcomes Progress Towards CAS Original CAS Outcomes Progress Towards CAS Outcomes WBG and Development and Indicators Milestones and Indictors Partners’ Support (If applicable) following restructuring of the program - ongoing GSP. Draft of PSD strategy  Doing Business reviews  Total corporate tax burden  Indicator dropped following prepared but not yet (annual) reduced from 50% to 47% to be restructuring of GSP and approved. Land tenure code  IFC Trickle up program – closer to level of best indicator not being measurable. not revised yet. completed performers within WAEMU  IFC Grassroots Business zone. initiative - completed Improved performance of Privatization of SOTELMA nonagricultural sectors by 2011 : completed in July 2009 and AAA and TFs:  Number of tourists increased by  Indicator to drop as it may  Indicator on track. In 2009, sector regulator‟s new staff  Mali – FSAP - completed at least 30%. not be relevant by end CAS due 115,500 tourists arrived by air in trained; “One-stop-shop”  Regional FSAP - Baseline: 100,000 tourists in to international factors and Mali. focused on service to new completed 2005. instability in the North of Mali. entrepreneurs created;  ICA update – ongoing property registration eased by  Support to EITI halving the transfer tax to implementation TF  At least 3 new investments  Indicator revised. At least 10  Indicator on track. Several 7%; Tourism sector strategy undertaken in small-scale new investments undertaken in investments in small-scale completed and action plan Partners: mining activities. small-scale mining activities. mining sector already adopted.  AfDB, Denmark, France, undertaken. EU, IMF, MCC  Number of people with access  Indicator revised: Teledensity  Indicator met. Ongoing inventory of to information and increased from 2.5% (2005) to regulations completed and communication technology 30% by end 2011. reform proposals designed by doubled. 2009. Baseline: 23.5/10,000 inhabitants in 2005. Mining Code revised in 2011 with a focus on incentive framework for improving the sustainable development impact of extractive industries activities. Increased productivity of At least 50 MSMEs nation- targeted MSME wide have managerial  Increased sales.  Indicator revised. Average  Indicator on track. 2009 value training every year; Number  Increased output. revenue increase of beneficiary is 78%. of college graduates trained  Baselines and targets to be set firms of STEP will increase to provide support to MSMEs once enterprises identified. from 25% in 2005 to 80% in increased from 15 to 50 in 2011. Indicator is collected 2009. through GSP. STEP provided TA support to 1,200 MSMEs since 2005 and PCG with BoA helped - 18 - Revised CAS Outcomes Progress Towards CAS Original CAS Outcomes Progress Towards CAS Outcomes WBG and Development and Indicators Milestones and Indictors Partners’ Support (If applicable) extend term finance to SMEs. Assistance to BoA led to an increase in Bank‟s lending to SMEs from $4 m in 2007 to $37 m by end 2009. Implementing association established for the matching grants and institutional framework being finalized. Strategic Objective 2. Strengthen public sector performance More transparent budget PAGAM-GFP was revised to Ongoing lending: practices as measured by: include intra-year reporting  PRSC 5  PEFA indicators on quality and  Indicator revised. Timeliness  Indicator on track. Timeliness following the 2006 PEFA; timeliness of in-year budget of in-year budget reports from improved and quarterly budget The interconnection of MEF Planned lending: reports and annual financial D+ (2007) to at least C by 2011. execution reports are published 6 with finance departments  PRSC 6 statements improved from D+ weeks after the end of the quarter (DAFs) of all ministries and  Governance and Budget (2007) to at least C+ by 2011 since Q3 2009. Quality also the regional budget Decentralization TA improved. departments (DRBs) is operation  New indicator: Timeliness of  Indicator on track. Timeliness complete. Additional work  Urban Local Governments annual financial statements of financial statements and ongoing to ensure the Support Project improved from D+ (2007) to at quality is now assessed with a interface between PRED and  Water Supply and least C+ by 2011. rating of C. the Treasury software. Sanitation Project AAA and TFs:  CPAR – completed Improvement in procurement New laws and regulations for  PAGAM - completed practices as measured by: procurement adopted and key  PEFA - completed  PEFA indicator on procurement  2010 PEFA rates procurement as institutions put in place.  PEMFAR – completed will have increased from C C. Limited progress reflects Revisions of the laws made  ROSC accounting - (2007) to at least B by 2011. delays in the implementation of in 2011 to better align the completed reforms. laws with WAEMU  Policy notes on growth- guidelines. TA is planned ongoing from FY12 and this will help accelerate progress.  PEFA update – ongoing Quality of internal and external PAGAM-GFP revised to  TA poverty monitoring – budget control will have incorporate actions to ongoing improved as measured by: strengthen internal controls.  TA action plan for ROSC  PEFA grades on internal and  Indicator revised. PEFA  Indicator on track. Achieved PAGAM II adopted in 2010 – ongoing external audit have risen from grades on internal and external for internal controls; ongoing includes actions to strengthen  TA poverty and PRSP D+ and D (2007) to at least C audit have risen from D+ work on external controls with external controls. Cabinet brief – completed - 19 - Revised CAS Outcomes Progress Towards CAS Original CAS Outcomes Progress Towards CAS Outcomes WBG and Development and Indicators Milestones and Indictors Partners’ Support (If applicable) (2011). (2007) to at least B (2011). delays in the reform. adopted an action plan to  Governance note -  PEFA grades on external audit  The PEFA grade on external clear audit backlogs and to ongoing have risen from D (2007) to at audit remains at D but actions prepare the creation of an least C (2011). planned in 2011 may help Audit Court in December Partners: improve the situation to D+. 2010.  AfDB, EU, France, Canada, IMF, Link between budget and sector Mechanism in place that Netherlands, PAGAM, strategies has improved as links transfer of resources to Sweden measured by: municipalities (2009).  Annual MTEF update to  Indicators dropped. A more  Indicator on track. Much include sector operational plans objective indicator is proposed progress was made since 2008 in Ministries have at least 6 (education and health). to measure policy-based this area, with the expansion of weeks from time of budget budgeting. Similarly, a new the number of Ministries with circular to incorporate indicator is introduced to MTEF. operational plans (2009). measure PFM capacity at decentralized level focusing on the creation of systems rather than flow of funds.  New indicator. Share of  Indicator achieved. Much primary expenditure of sectors progress made since 2008 with for which statements of sector the expansion of the number of strategies exist and are fully ministries with MTEF. costed, broadly consistent with fiscal forecasts. Baseline (2006): 48.2%; Target (2013):  Resources transferred from 75% center to municipalities have  New indicator. PEFA indicator  Indicator on track. Progress doubled from 2007 level of 1 on timeliness of reliable was made regarding the billion FCFA. information to sub-national timeliness of information entities on their allocations. regarding the current budget but Baseline (2006): D; Target more needs to be done regarding (2011): C information of the investment budget. 2010 rating: D. Work ongoing to improve the situation.  Service delivery has improved,  Indicator on track. Beneficiary as evidenced by beneficiary survey to be undertaken in 2010 surveys. under TA operation. Improve access to and quality of 1,400 classrooms Ongoing lending: basic education, including constructed; 6, 000 teachers  Devt. Learning Center strengthening of institutional trained; 3,000 community  PRSC 5 management capacities as teachers trained and paid by  IFC - US$11 million loan - 20 - Revised CAS Outcomes Progress Towards CAS Original CAS Outcomes Progress Towards CAS Outcomes WBG and Development and Indicators Milestones and Indictors Partners’ Support (If applicable) measured by: GoM; 100 % of community to Graphique Industries  67% primary completion rate Basis has changed based on the  Indicator on track. Gross schools fully subsidized to which produces by 2011 (disparities reduced census with higher population primary education enrollment reduce out of pocket approximately 48% of the between urban/rural and growth from 2.6 to 3.6% annual rate in 2009/2010 is 76% (girls at expenses for poor families; textbooks and 100% of between girls/boys) Baseline: population growth rate. 67% and boys at 81%). Primary National strategy for girls‟ the notebooks for the 2005–06: girls 38%, boys 59%, completion rate at 51% in 2009. education prepared and PRODEC program total 49%). New target for 2012: 70% currently being implemented; primary completion rate and girls Study completed to identify Planned lending:  70 % of primary students at 49% and boys at 51%. skill requirements to support  Higher Education Project reaching average score in  Indicator on track. 58% of economic growth.  PRSC 6 language, reading, and primary students reached  EFA/FTI Grant mathematics in grades 2 and 5. average score in language, Only 74.1% Grade 1 Development Policy reading, and mathematics in admission rate in 2009 Support  Girls represent 50% of total grades 2 and 5 in 2009/2010 (target: 85%) primary students (2011) period. AAA and TFs: (Baseline 44.1% in 2005–06).  Skills development study  Indicator on track. Girls – completed represent 45% of total primary  TA youth initiative – students in 2009/2011. 2012 completed target: 49%.  TA non formal education – completed  Education country status report – ongoing Partners:  AfDB, France, Canada, Germany, Netherlands, USAID, Denmark Improve access to and quality of More than 4,000 people Ongoing lending: HIV/AIDS-related services as living with HIV/AIDS have  HIV/AIDS MAP measured by: access to treatment and care;  PRSC 5  At least 60% of adult people  Indicator dropped. Project 2225 non public testing know 2 ways of HIV/AIDS results matrix revised following facilities were operational as Planned lending: transmission by 2011 (Baseline: restructuring of project in May of end 2008.  Reproductive Health 36.5 % in 2002). 2009 to align indicators with Project the new WB HIV/AIDS  PRSC 6  Condom use among men who scorecard. have had sex with more than 1  Indicator dropped. Same as partner in last 12 months has above. AAA and TFs: increased from 33% to 45% by - 21 - Revised CAS Outcomes Progress Towards CAS Original CAS Outcomes Progress Towards CAS Outcomes WBG and Development and Indicators Milestones and Indictors Partners’ Support (If applicable) 2011.  Demography and  Testing services offered in at  Indicator revised: number of economics – completed least 40 nonpublic facilities (up non public health centers to be  TA Social safety nets – from 2) and all reference 25 by end 2011. Original target completed hospitals comply with national overambitious given available  TA Follow-up social standards. funds safety nets – ongoing  At least 10,000 persons living  Indicator revised: At least  Health country status with HIV/AIDS eligible for 9,000 persons living with report – ongoing treatment are under HIV/AIDS eligible for  IFC – Health in Africa antiretroviral drugs and treatment are under initiative monitoring by 2010 (from antiretroviral drugs and 3,000 in 2005). monitoring by end 2011. Partners:  New indicator: 55,000 persons  AfDB, EU, Belgium, aged 55+ receiving counseling Canada, France, Global and testing for HIV and Fund, Netherlands, received their test results. Unicef, USAID Use of health services increased Road map for reducing as measured by: maternal mortality approved  70% of births assisted by  Currently 57% of births assisted in 2009; Contracting of qualified health personnel by qualified health personnel NGOs to increase coverage (Baseline: 51%, 2006). was implemented by 2009.  4% of population covered by a health mutual (Baseline: 1.4%,  2.1% of population covered by a Work ongoing to establish a 2005). health mutual in 2009 and 2.9% system for rewarding in 2010. performance of health  90% immunization rates for district. DTCP3 (Baseline: 68% in  Indicator met. Immunization 2006). rates for DTCP3 at 101%  Use of modern contraception currently. increased to 500,000 couple- years of protection (Baseline:  Indicator on track. Use of 256,000 in 2006). modern contraception currently at 490,542 couple-years of protection. Aid harmonization increased GoM Harmonization  TA and ESW/AAA from and transaction costs reduced: Secretariat strengthened; WB, EC, and other budget  Joint framework for general  Indicator met. Joint framework for general support donors budget support in place and budget support prepared and followed. MoU to apply framework signed; Program based - 22 - Revised CAS Outcomes Progress Towards CAS Original CAS Outcomes Progress Towards CAS Outcomes WBG and Development and Indicators Milestones and Indictors Partners’ Support (If applicable)  Reduced number of parallel  Only PAPAM and PRSC series approaches represented at PIUs in Bank operations: with no parallel PIU. least 42% of WB portfolio maximum 4. end 2009 and 50% of  Program-based approaches: at  Indicator met. 65% based on ESW/AAA with strengthened least 66% of Bank portfolio. disbursements. coordination during  Coordinated ESW/AAA: at preparation. least 66% of all Bank  Indicator on track. Good ESW/AAA. coordination with the Govt. GoM H&A action plan not  Collaborative sections of next  Indicator on track. Joint CAS executed as planned; Country Assistance Strategy prepared in 2009 and signed by Reducing parallel PIUs to 8 drafted and MoU signed by main donors; new CAS was not achieved. GOM and its main donors preparation not yet started. (including WB). - 23 - APPENDIX 2. IDA LENDING AND ANALYTICAL PROGRAM A. Planned Lending Program and Actual Deliveries (FY08-12) CAS Planned Lending US$ m Actual Lending US$ m FY08 PRSC II 42 PRSC II 42 Total 42 Total 42 GEF WA Biosafety Project 25 WA Biosafety Project 3.9 FY09 PRSC III 40 PRSC III 65 Energy Support Project 75 Energy support Project 120 TA for Service Delivery 15 Postponed to FY11 - Regional operation 8 HEURA Additional Financing 35 HIV/AIDS Additional Financing 6 Total 138 Total 226 GEF Sustainable Land Mgmt. * 6.3 FY10 with IDA operation PRSC II Additional Financing (Global Food 5 Crisis Response Program) FY10 PRSC IV 50-60 PRSC IV (including $15.5 m from Global 70.5 Food Crisis Response Program) Agriculture Productivity Project 70 Agricultural Productivity Project 70 Regional Operation 8-18 Felou Additional Financing 14.2 Total 138 Total 154.7 GEF Agricultural Productivity 6.2 FY11 PRSC V 50-60 PRSC V 70 Urban Operation 70 Urban Local Governments Support Project 70 Regional Operation 8-18 Governance and Budget Decentralization TA 12 Transport Sector 2 Additional Financing 23 Total 138 Total 175 Rural Community Devt. Additional 11.2 Financing (Global Food Crisis Response Program) FY12 PRSC VI 70 ** Higher Education and Skills Devt. 50 ** No indicative lending for FY12 Strengthening Reproductive Health 30 ** Total 150** *: Fully blended with IDA Agricultural Productivity Project. **: These estimates for FY12 are indicative only and can change. Actual allocation in FY12 will depend on: (i) total IDA resources available, (ii) the country‟s performance rating; (iii) the performance and assistance terms of other IDA borrowers; (iv) the terms of IDA's assistance to Mali (grants or credits); and (v) the number of IDA-eligible countries. IDA allocations are made in SDRs based on performance, and the US$ equivalent is dependent upon the prevailing exchange rate. - 24 - B. Planned AAA Program and Actual Deliveries CAS Planned AAA Actual AAA FY08 Rural Finance Study Delivered to client postponed to FY08 Demography and Economics Delivery to client postponed to FY08 PEMFAR Delivery to client postponed to FY10 Governance Diagnostic Study Delivery to client postponed to FY08 Poverty and PRSP brief (TA) Delivery to client postponed to FY09 ICT Policy Dialogue - Programmatic TA FY09 Growth note on mining Converted to policy notes on growth Skills Development Study Delivery to client postponed to FY10 Country Environmental Assessment Delivery to client postponed to FY11 ICA Update Converted to a pilot of a new generation of investment and private sector growth diagnostic SLM Advisory Services Work started in 2008 Rural Finance Study Population and Development Governance Diagnostic Study Poverty and PRSP brief (TA) ICT Policy Dialogue - Programmatic TA FY10 Growth note on tourism Converted to policy notes on growth Social Protection Converted to Social Safety Nets TA PEFA Update Slipped to FY11 Poverty and PRSP brief (TA) Mali FSAP Skills Development Study PEMFAR ROSC Accounting ICT Policy Dialogue - Programmatic TA FY11 Growth note on light manufacturing Governance Follow-up TBD Follow-up on Social Safety Nets TA TBD Youth Initiative TA Non formal Education TA SME Growth and Diversification ICA Urban Environmental Analysis Policy notes on growth PEFA Update Education Country Status Report Update Health Country Status Report Poverty Monitoring TA Dialogue on SLM (TA) Deepening Telecom Policy Dialogue - Programmatic TA Action plan for ROSC (TA) - 25 - APPENDIX 3. STATUS OF MDGs Three MDGs are likely to be achieved: (a) combating HIV/AIDS prevalence at 1.3 percent in 2008 is projected to decline further; (b) reaching universal primary education: gross enrollment rates in 2009 reached 80 percent but the girls/boys parity index remained at 79.4 percent; (c) cutting by half by 2015 the proportion of people without sustainable access to safe drinking water: population with access to drinking water increased from 63.4 percent in 2007 to 73 percent in 2009. However, progress in sanitation is lagging. While progress was made towards health related targets, Mali is unlikely to achieve the goals of reducing child mortality and improving maternal health. Actions to eliminate gender disparities show progress but results are far from the MDGs: women in parliament level stands at 10.2 percent. Mali – Progress toward the Millennium Development Goals Goal Current Status GoM Actions to Accelerate Progress Eradicate Unlikely The GoM is implementing inclusive policy actions to increase extreme productivity and reduce vulnerability in the agricultural sector, from poverty and which most of the poor derive their incomes. Actions are also ongoing hunger to improve basic infrastructure and the overall business environment. Achieve Possible to The GoM plans to improve access, quality and equity by focusing on universal achieve if some improved HR management, improved systems for the distribution of primary changes are textbooks, enhanced monitoring of investments and through effective education made decentralization and greater participation at local level. Promote Possible to The GoM has defined priority areas of intervention to promote gender gender equality achieve if some equity but specific actions still need to be defined. Areas selected and empower changes are include equal access to education and employment, framework to women made protect women from domestic and other forms of violence, and steps to ensure that women participate in decision making. Reduce child Off track The GoM plans to increase the availability of skilled health personnel, mortality extend access to immunization, improve sanitation and livelihoods of households, increase access to information on health care issues and reduce costs of child health care services. Improve Off track The GoM action plan which includes free access to cesarean sections maternal health for poor women, inclusion of sexual education in the education curriculum, increase access to family planning, enhance decentralized provision of health services and community participation. Combat Possible to The GoM plans to enhance monitoring and evaluation efforts, intensify HIV/AIDS, achieve if some actions to change behavior, continue research activities to better malaria and changes are provide health care to those affected by the virus. A program is in other diseases made place to improve diagnostic and effectiveness of tuberculo sis treatment. Actions to combat malaria focus on prevention measures, including through sanitation and wide distribution of mosquito nets. Ensure Insufficient Actions will be undertaken to improve the collection and treatment of environmental information data on environmental issues, strengthen the role of institutions in sustainability charge of environmental issues, take into account environmental issues (including in the design of strategies and actions plans, disseminate information sustainable on international agreements ratified by Mali and ensure adequate access to safe resources for decentralized environmental management. drinking water & sanitation) Develop a Insufficient Actions planned by the GoM include improved aid management global information though the adoption of computerized systems, enhanced monitoring of partnership for the PRSP and tightened linkages with the budget, to facilitate donor development support aligned with PRSP priorities, and improved governance. Source: Gouvernement of Mali (2009), Deuxième Rapport de Mise en œuvre des Objectifs du Millénaire pour le Développement au Mali. - 26 - APPENDIX 4. IFC AND MIGA PROGRAM 1. IFC‟s investment portfolio in Mali stands at US$53.3 million. Over the period under review, IFC invested in the financial sector, agribusiness, services and infrastructure. Company Sector Amount ($m) GRIMAS Agribusiness 19.0 Grand Moulin du Mali Agribusiness 9.8 Graphique Industries Services 9.2 Ecobank Mali Financial Markets 8.5 BoA Mali Financial Markets 5.2 Hotel Salam Tourism 1.3 SIECO Services 0.3 Total 53.3 2. Fostering private sector access to finance: IFC, jointly with the WB, implemented the IDA/IFC MSME program that aims to boost finance for the development of this underserved market segment. The assistance consists of a risk sharing facility on a new portfolio of loans to SMEs to 2 selected banks, Bank of Africa (BoA) and Ecobank, and an SME banking TA program to support their activity in a secure and profitable manner. Assistance to BoA led to an increase in the bank‟s total lending to SMEs from about US$4 million in October 2007 to US$37 million in March 2011 with 231 SMEs reached, while Ecobank SMEs loans portfolio is expected to reach $12.5 million. 3. IFC provided to Ecobank a trade guarantee under its Global Trade Finance Program, and is discussing with several other banks to boost Mali‟s international trade activity. 4. IFC, through its Capitalization Fund and African, Latin American & Caribbean Fund, in June 2010, provided Ecobank Transnational Incorporated (ETI) with a capitalization package of up to US$150.14 million, including US$7.2 million to Mali‟s subsidiary. 5. Following IFC benchmark bond issue in FCFA in 2006, IFC has plans for new issuances (possibly in the form of a program) in the short term in order to boost on lending to projects in local currency. Other products are also at work in order to lend in FCFA to projects otherwise exposed to currency risk. 6. Agribusiness: In October 2008, a €8 million (approximately US$11 million) loan was committed for Groupe AMI, the largest private agribusiness group in Mali which produces flour, animal feed and bottled water. The purpose of the loan is to help finance the company‟s US$25 million expansion and product diversification plans. SMEs reached were 102 in 2010, versus a target of 40. Other development impact targets reached local suppliers and $3.5 million tax receipts increases by 2012. 7. In June 2010, IFC committed a €14 million (approximately US$19 million) loan to Groupe Industriel Madiou Simpara (GRIMAS) which produces carbonated soft drinks, bottled water, performs and caps for plastic bottles, and carbon dioxide for beverages. The purpose of the loan is to help finance the company‟s €33 million expansion program in Mali, Senegal and Cote d‟Ivoire. - 27 - Development impact targets include the creation of 100 new jobs, 30 percent female employment, and creating linkages with local SMEs by 2014. 8. Global Manufacturing and Services: In June 2009, a €7.5 million (approximately US$9 million) loan was committed for Graphique Industries, the largest printed products company in Mali supplying textbooks and notebooks to the education sector. The loan is being used to upgrade the company‟s machines and increase its overall capacity, quality and efficiency, which will allow it to expand its market to surrounding countries. 9. Infrastructure: A US$25.0 million loan was committed in March 2010 to the Aga Khan Fund for Economic Development (AKFED), for on-lending to its three African airlines including i.e. Air Mali, Air Burkina and Air Uganda. The purpose of the loan is to support the turnaround and expansion of the airlines, and help strengthen their competitive position especially in West Africa. 10. IFC is also unleashing key sectors‟ potential with advisory services and expanding private sector base with investment products. Advisory services include:  Improving investment climate: IFC, through FIAS and PEP Africa, has been engaged, along with the Bank, in providing support to improve the investment climate. Phase 2 of the Investment Climate Reform program was launched in January 2010. The aim of the 3-year program is to improve the Doing Business ranking, encouraging agribusiness investment, and improving the regulatory framework for industrial zone development. Phase 2 focuses on: (i) the investment code, tax regimes, and investment promotion; (ii) special economic zones; and (iii) areas covered by Doing Business - dealing with construction permits, trading across borders, and enforcing contracts. A regional investment climate team (FIAS/PEP Africa) was hired in Dakar and one Operating Officer in Bamako to ensure support to the day-to-day implementation of the program, including in Mali (Phase 2, FY09 and beyond). IFC is supporting regional integration through the regional OHADA-level reforms, implementation of new collateral registries in the OHADA region, and implementation of a regional credit bureau within the UEMOA zone.  Capacity building program: IFC has completed during the current CAS period several advisory programs targeting SMEs, including the Support and Training Entrepreneurship Program (STEP) focusing on micro enterprises, TUP (Trickle Up Program-IFC funded), and IFC-GBI (Grassroots Business Initiative. These programs were not renewed as a result of the refocus of IFC‟s advisory services (focus is now to provide standardized products such as Business Edge, via intermediaries, such as trainers, financial institutions or corporates with reach to SMEs).  IFC, through its Africa Leasing Program (ALF), is promoting leasing as an innovative alternative financial mechanism to SMEs. Since June 2009, ALF in partnership with 10 professional associations trained more than 250 entrepreneurs on the advantages of leasing. Further training/advisory services will target firms (leasing companies, commercial and development banks, microfinance, equipment providers), business professionals (lawyers and accountants) as well as local authorities. ALF will assist the tax authorities to implement tax breaks. IFC is also contemplating making investments in leasing providers.  Health in Africa initiative: IFC supports the private delivery of health services through the Health in Africa initiative, in collaboration with the Gates Foundation, which aims to increase the capacity of private sector health providers and improve the quality of their services through investment and technical assistance. A country assessment of the private health care sector in Mali was carried out during the CAS period. IFC committed to providing technical - 28 - assistance in three major reform areas: (1) establishing a Public Private Dialogue Committee and structuring the private health sector through the creation of a Private Health Sector Alliance, (2) improving the regulatory framework governing the private health sector; and (3) increasing access to financing for the private sector. Work has started in all three areas and a market study of the private health sector will be carried out soon. 11. Future Support: IFC plans to continue its focus on (i) improving the investment climate, (ii) providing enhanced support to SMEs and micro-enterprises through financial intermediaries; (iii) proactive project development, especially in infrastructure and agribusiness. In particular, IFC is looking at investments in banks, agribusiness and clean energy projects, through direct investments and the SREP facility in conjunction with IDA and AfDB. 12. MIGA remains open in Mali, and is very keen to support new projects. Currently, MIGA‟s portfolio consists of one contract in the telecommunications sector, with a gross exposure of US$16.2 million and a net exposure of US$14.6 million. MIGA‟s political risk product may alleviate concerns for private sector investors who are keen to invest in Mali, but who remain apprehensive because of political risks or governance issues. With regard to MIGA‟s product offerings, while MIGA supports projects of all sizes, its more streamlined Small Investment Product has proven useful for smaller sized investors into a country. MIGA has recently extended its product line, and is now offering insurance cover for the Non-Honoring of a Sovereign Guarantee, as well as its traditional Transfer Restriction, Expropriation, Breach of Contract and War and Civil Disturbance covers. - 29 - APPENDIX 5. PARTNERSHIP AND AID EFFECTIVENESS Evolution in context 1. The government and donors have made some progress on harmonization and alignment, but room for progress remains. A first joint donor assistance strategy (JAS) for the 2009-2011 period was signed by 14 donors and focuses on results and the link to the GPRSF to improve complementarities and joint policy matrices, funding mechanisms and reviews. Some results have been achieved, such as improved disbursement predictability, reduction in the total number of budget support triggers, increase in number of donors using direct budget support, and move towards more programmatic approach in some sectors (especially water, decentralization and transport, to some extent agriculture). The Bank has played a key role in achieving these results, although other donors (the EU) have been more active in the decentralization and water sectors. 2. GoM’s technical capacities to work on aid effectiveness have increased. The government‟s Aid Harmonization Secretariat is gradually becoming operational, and is co-chairing the GoM-donor working group to update the JAS. It has led studies on the evaluation of Phase 2 of the Paris Declaration. It is also operationalizing the calendar to harmonize sector reviews with the annual GPRSF review and leading work on aid predictability. The government‟s 2007-2009 Harmonization and Alignment Action Plan will be updated when the JASII is more clearly defined. A National Aid Policy is being considered to provide increased visibility and traction to aid effectiveness issues. 3. Some evolution is seen in donor positioning and priority sectors, especially in macroeconomic management, the social sectors, and water. The donor positioning table below was updated in 2010 based on 2009 commitments and positioning in 2010. As the table 1 shows, the EU, Canada, Denmark, and Germany have all increased their engagement in macroeconomic management. The education sector has seen increased participation of USAID, France, and Canada, while the African Development Bank and Germany have reduced their engagement. In health, EU, USAID, Canada, and the Netherlands have increased focus but the AfDB, France and Germany have accorded lesser priority to this sector. The prioritization of the water sector has increased for the AfDB, EU, Denmark, and Germany, while the rest of the donor group has maintained their engagement in the sector. Civil society has received increased attention from France, Denmark, Canada and USAID. Actual sector and harmonization strategies 4. Challenges remain in strengthening the capacity of permanent country institutions and the country’s financial management mechanisms. The CAS period has seen the creation of new PIUs for the agriculture (not completely parallel), energy and urban operations in spite of the effort to move away from PIUs and specific procedures. There is a need for the GoM to incentivize civil servants to manage donor-funded projects, mainstreamed into existing structures. There is also no progress on integrating of the transport PIU into the Ministry of Transport as foreseen in the CAS. This outcome indicator has proven to be too optimistic. The Bank is carrying out a PIU study in collaboration with the Ministry of Economy and Finance to better understand the incentives driving the use of PIUs and the impact of PIUs on portfolio quality. The Bank is also supporting strengthened country systems with gradual use of country systems for financial management, with a treasury accountant being assigned specifically to each new Bank-funded operation. This should contribute to reduce the need for external fiduciary support through PIU-type arrangements. Over the remaining CAS period, the Bank will promote a coordinated donor approach to reduce PIUs, including through increased use of programmatic sector approaches. 1 The table does not necessarily reflect changes in levels of funding to a given sector, but rather priorities reported in the context of the 2010 sector mapping exercise. - 30 - 5. Fragmented donor assistance is still a problem, in spite of progress on joint funding mechanisms. Three sectors are covered by sector budget support (education, health, and decentralization) and two other sectors are in the process (irrigation and water). During the CAS period, two new donors have started using budget support, but the share of budget support to tota l disbursements has gone down from 33 percent in 2006 to 23 percent in 2010, while it has increased for the Bank from 31 to 46 percent. The Bank chairs the donor sector working group (SWG) on macro- economic issues and progress has been made in terms of quality of the joint budget review. Efforts are undertaken to harmonize the conditionality framework with the indicators developed by the government, and overall donors have reduced the joint trigger matrix to 39 triggers, under Bank leadership, with a target of 30 triggers by end 2011. Use of national systems by donors remains fairly low (32 percent for financial management, 37 percent for procurement), reflecting the remaining challenges related to strengthening country systems. 6. In order to continue to strengthen the capacity of permanent country institutions and the country's financial management mechanisms, the Bank will continue to support sector ministries to develop program-based approaches. In spite of the creation of PIUs, the Bank has stimulated program-based approaches in the agriculture and urban development sectors, both being sectors where the Bank has comparative advantages in terms of staffing and level of funding. Fragmentation remains visible in the agriculture sector, for example, with 33 donors, implementing over 248 projects through 63 PIUs to deliver a total portfolio of US$2.3 billion. The specific challenge for the agriculture sector is to gradually transfer implementation responsibility to the public and private actors in the sector, and to the newly created investment fund. The Fostering Agricultural Productivity Project (US$70 million IDA credit) has leveraged substantial co-financing from the Borrower, local farmer organizations, the EU Food Crisis Rapid Response Facility Trust Fund and GEF Grant, in addition to parallel financing from IFAD and UNDP-GEF. 7. Operations in education, transport, agriculture, and water are relying increasingly on joint sector reviews and paving the way for increased harmonization where it is less advanced (energy, urban development). The transport sector has accomplished some harmonization, through the signing of a MoU between the key development partners (EU, KFW, AfDB, IBD and BOAD) and the G oM defining the harmonization framework in terms of: (a) joint supervision missions, (b) use of same coordination unit, (c) use of same procurement procedures, and (d) use of a single M&E framework. The Bank has been involved in the energy sector, which together with the water sector, has supported the process of moving the electricity and water utility company (EDM) towards more efficient private sector management. The Bank has also signed a MoU in the health sector (International health Partnership+ Compact), defining collaboration modalities for donor alignment and aid coordination, in line with the Paris Declaration. The education sector MoU was renewed in 2010 to provide a framework for a multi-donor approach to support in the education sector. The last joint donor mission took place in June 2010 and resulted in the endorsement of the third phase of the government education sector program, on which to base the programs supported by the participating institutions. The roadmap for the water sector continues to constitute a key tool in the sector harmonization process, creating conditions for the gradual implementation of a true program approach in the sector. Donor coordination on the Kabala water project and the urban water sector reform is being coordinated with the dozen of partners involved in the program. Challenges for the remaining CAS period 8. The JAS expires in 2011 and the process to update the strategy was launched in February 2011 in order to align donor support with the GPRSFIII. At this stage, the GoM has not yet decided on which approach it will follow. Based on the lack of substantial evidence of the benefits of JAS processes (division of labor and joint programming), the Bank is advocating for an incremental approach with up-front focus on measurable results of the chosen process. In parallel, the UN is in the process of moving towards “delivering as one” and Mali is a focus country for the EU fast track - 31 - initiative for division of labor among member states. All donors are more or less inclined to harmonize, but the JAS II process will shed more light on the direction, with a determining factor being the level of leadership of the government in the process going forward. The Bank is poised to play a central role in this process, bringing to the table the experiences learned elsewhere from similar experiences and a strong focus on results management. The CAS extension period will allow to better align with the JAS and PRSP updates. 9. The Bank will continue to play a leading role in aid effectiveness issues. The remaining CAS period will provide the opportunity to analyze internal and external constraints to deepening aid effectiveness reforms and coordination in key sectors. The Bank is well positioned to participate in potential division of labor exercise with the CAS focus on agricultural production and basic infrastructure services (in energy, water, transport, agriculture, and urban development) being aligned with the Bank‟s sectors of comparative advantage. Going forward, it will be necessary to find ways to deepen donor coordination with strong focus on process contribution to actual results achieved in term of contribution to the GPRSP III objectives. The CAS is fully in line with the new Africa Strategy‟s principle to focus on a limited number of sectors. Extension of the CAS by one year will allow the Bank to approach the JAS II process with more flexibility and to contribute to setting new objectives for aid effectiveness in the context of the JAS II, GPRSP III, and the 4 th High Level Forum on Aid Effectiveness scheduled for November 2011. D ONOR FUNDING REPORTED FOR 2010 Rank Donor Amount Rank Donor Amount (US$ million) (US$ million) 1 USA (USAID + MCC) 213.0 11 Japan 29.5 2 World Bank 153.3 12 Sweden 26.6 3 United Nations, total 103.0 13 Belgium 16.5 4 European Union 98.5 14 Switzerland 13.8 5 AfDB 95.8 15 Spain 13.2 6 Canada 87.3 16 Global Fund 10.8 7 Germany 67.3 17 Luxembourg 9.4 8 Netherlands 56.7 18 IFAD 7.9 9 France 53.4 19 GAVI 5.4 10 Denmark 29.7 20 Italy 1.9 Total: 1,092.9 Source: 2011 Paris Declaration Survey, Mali Aid Harmonization Secretariat, March 2011 - 32 - EVOLUTION OF DONOR PROGRAMS IN MALI AND OF BANK POSITIONING The World African The World European Sector/ Donors Bank as of Development MCC USAID France Canada Denmark Germany Netherlands Bank Union end of CAS Bank (a) (b) (a) (b) (a) (b) (a) (b) (a) (b) (a) (b) (a) (b) (a) (b) (a) (b) (a) (b) (a) (b) GPRSP Pillar 1: Infrastructure Development and Strengthening the Productive Sector Rural Development                       Energy             Transport              Environment              SME/MSME       Communications  GPRSP Pillar 2: Strengthening the Structural Reform Agenda Public Adm. Reform         Macroecon. Mgmt.               Decentralization            Governance     Financial Sector       Civil Society         GPRSP Pillar 3: Improve Delivery of Social Service Education                 Health/Social Dev.                 HIV/AIDS        Water & Sanitation               Employment    Urban (c)   Cross Cutting Themes Gender      Culture Regional Integration       Sector priority:  : High  : Medium : Low (a) As in the CAS; (b) Situation as of CASPR; (c) Urban Project in CAS lending program, but not included in CAS Annex 7 table. Highlighted cells signify change from 2007 to 2011. Note: The donors in the original CAS Annex 7 constitute the largest donors in 2010. Together, they account for about 88 percent of official ODA. The table reflects donor priority to a given sector, as per the 2010 division of labor exercise in Mali and not levels of funding to a given sector. - 33 - APPENDIX 6. CLIMATE CHANGE EFECTS ON MALIAN MAIN DEVELOPMENT SECTORS 1. The persistent drought has led to fairly significant rainfall deficits, so that the migration of people and animals became a main strategy to tackle these new precarious environmental and climate conditions. The decrease in rainfall is going to entail land conflicts because of the reduction in arable lands and rangelands, the migration of populations towards urban centers, with as consequences the increase in unemployment, insecurity, and in communities‟ life, livelihoods and health. 2. Agriculture and water resources: The increase in temperatures, combined with a decrease in precipitations and in the length of the rainy season, impacts on the agriculture production and consequently on food security. By the year 2050, it could become difficult to contemplate rice farming through controlled water submersion as currently in the Rice Offices of Ségou and Mopti as well as in San, without hydraulic structures. Concerning the full control of parameters, the available volumes of water for off-season farming could become limited given the weakness of the inputs of rivers, mainly during the period of low water in rivers (report on the Adaptation Strategy, 2007). 3. Through the fostering agricultural productivity project, several Sustainable Land and Water Management (SLWM) technologies for the agricultural sector that are more resistant to the impact of climate shocks will be introduced. The project will help end users to adopt SLWM practices which mitigate CC and sequester atmospheric carbon (inter alia conservation tillage or conservation agriculture, agro-forestry, sustainable grazing management, sylvo-pastoral systems and improved forest management). It will also support SLWM practices that improve the ecosystem services provided by the soil – leading to increased biomass production and more reliable crop yields – and strengthen resilience in agricultural livelihoods. 4. Water resources: Water constitutes the engine for the socio-economic development of the country. Though theoretically abundant, surface and underground water resources are seriously threatened by wastage and non-rational management of networks, sedimentation and sand silting of water-courses, lakes, and ponds, various pollutions, etc. This situation will be exacerbated by the effects of CC. The frequency of floods, following an increase in rainfalls, will cause economic losses with current occupancy of its main water courses. Owing to the decrease in rainfall, the safe drinking water supply for the population and livestock will be very difficult following the drying up of some wells or increase in their in-depth. Due to the decrease in rainfall, the supplying of deep aquifers through infiltration has become very weak. In some regions, as in the Bani-Niger sub-basin, aquifers have experienced the lowest level since 1987 (National Directorate for Energy, 2006). 5. The Bank is preparing the Bamako water supply project. Several studies addressing the impact of CC on the sector will be achieved. The project should ensure the resilience of water and sanitation infrastructure to CC as a major CC adaptation measure. The creation of safe water sources and effective sanitation systems should guarantee protection from contamination and destruction from natural disasters. Synergy with the Global Facility for Disaster Reduction and Recovery throughout the national flood early warning system should be encouraged. 6. Forest resources: The forest sector plays a decisive role in the socio-economic and cultural life of Malian populations. It provides capital goods that no other sector can provide (93 percent of energy requirements, food products, and pharmaceuticals, ecotourism, biodiversity conservation, improving the living environment, etc. Natural formations underwent great changes, due especially to the aridity of the climate, successive droughts, and anthropic activities. In case of shortages or disruption of rural production systems, some activities traditionally considered secondary will become very important. For example, for some small basins such as Diola, Bougouni, and Selingué, wood-cutting will be favored and will temporarily be a source of income but only for a short period because th e forest - 34 - plateau of these zones will not withstand for long. The degradation of land cover will increase soil erosion and favor a blocking up of the water courses of water retention lakes. 7. The Bank supported the elaboration of a Country Strategic Framework for Sustainable Land Management (CSIF). Also a grant for DRM was approved to strengthen the DRM institutional framework, reinforce key institutions‟ technical capacities and implement a pilot project for vulnerable communities‟ protection. Mali also benefits from the Integrated Land and Water Management for Adaptation to Climate Variability and Change Trust Fund to set up an operational information system for DRM, CC and SLM. Going forward, the Bank will help Mali strengthen the resilience of its agricultural and natural resources sectors. 8. Biodiversity: The loss of biodiversity is mainly attributable to the loss and degradation of natural habitats and, for some species, direct over-exploitation. The loss and degradation of natural habitats through activities such as wood cutting, over-grazing, and cultivation of marginal lands are further exacerbated by recurrent droughts. 9. Through the Gourma project, the Bank supported the elaboration of several community development action plan taking into account the CC and biodiversity issues. The project is supporting protection of natural habitats in key conservation areas in and around the Gourma Elephant Reserve. 10. Energy sector: CC affects mainly two very vulnerable sectors, namely: the hydro-electricity sub- sector and woody fuels. The growth rate of electricity amounts, on average by year is 12 percent, of which 15 percent for localities supplied by the interconnected network and 10 percent for isolated centers. This demand is essentially met for more than 80 percent from hydro-electricity which are water retention structures depending mainly on rainfall. Decrease in rainfall entails production shortages that influence negatively the continuity of electric energy supply service. 11. Mali is a pilot country of the SREP, a targeted program under the Strategic Climate F und (SCF). The aim of the SREP in Mali is to pilot and demonstrate, as a response to the challenges of CC, the economic, social and environmental viability of low carbon development pathways in the energy sector by creating new economic opportunities and increasing energy access through the use of renewable energy. Multilateral development banks will assist the GoM in initiating a process leading towards transformational change to low carbon energy pathways by exploiting the national renewable energy potential in place of fossil-based energy supply and inefficient use of biomass. The specific objective of the Malian investment plan is to develop an integrated approach to development policies, strategies and investment programs based on a coherent and efficient public-private dynamic. 12. Health: The relationships between health and the environment dealt with two diseases: malaria and meningitis. For malaria, an increase in temperatures will reduce the time of development of the parasite in its vector, which will increase the virtual capacity of the anopheles mosquito. As for meningitis, its expansion could be amplified in the future, following the modification of the extent of eco-climatic zones. Although, in situations of flooding, due to poor hygiene and sanitation and lack of clean drinking water, there are far more cases of cholera. It is also worth noting that the outdoor air pollution associated with greenhouse gas emissions from smokestacks, vehicles, and burning of waste can cause respiratory diseases, especially in urban centers. 13. Through its new Reproductive Health Project (under preparation), the Bank is considering CC issues and efforts are targeted at increasing the demand for and use of reproductive health services with a clear focus on family planning and other high impact interventions contributing to the reduction of maternal, neonatal and child mortality, and at reinforcing of community health service delivery capacity. - 35 - 14. Infrastructures: In transport, the national road network comprises 89,024 km of roads of which only 3,387 km are paved. This makes roads very vulnerable to meteorological and hydrological phenomena such as wind, flooding, and surface water runoff resulting in erosion and siltation processes. The national river network will be seriously handicapped by an overall reduction in rainfall, disturbance in the distribution of precipitation, and the siltation of river courses. The lowering of the average rainfall led to poor planning such as construction of houses and infrastructure in the beds of rivers and weaknesses in the dimensioning of some hydraulic structures such as bridges, dams, drains and dykes. This situation results in increasing human and material losses in relation with flooding, often attributed to CC. 15. Through its ongoing projects and also the urban operation under preparation, CC issues should be considered and tackled. These projects should help the GoM revise its infrastructure norms and help make them resilient to climate variability and change. 16. Crosscutting considerations: With regards to each sector‟s high influence on others, adapting to CC would require strong coordination mechanisms, with an integrated systemic vision and approach. In this regards, Mali is highly committed towards the development of its Climate Change National Policy and Strategy, with inputs from numerous international stakeholders, including the Bank. 17. In addition, CC combined with the demographic growth and little planning capacities are altogether contributing to increase disaster risks. A number of activities are being supported by the Global Facility for Disaster Reduction and Recovery (managed by the Bank) to support coordination (institutional, political, legal and technical capacities) with regards to CC adaptation and disaster risk management. These activities will, among other objectives, assist Mali in the development of a multi- hazard early warning system (food security, flooding, drought and locust), preparedness and crisis management capacities as well as multi-sectoral planning capacities overall. - 36 - APPENDIX 7 Mali at a glance 4/5/11 Sub- Ke y D e v e lo pm e nt Indic a t o rs Saharan Lo w M ali A frica inco me Age distribution, 2008 (2009) Male Female P o pulatio n, mid-year (millio ns) 14.5 81 9 828 75-79 Surface area (tho usand sq. km) 1,240 24,242 17,838 60-64 P o pulatio n gro wth (%) 3.6 2.5 2.2 Urban po pulatio n (% o f to tal po pulatio n) 33 36 28 45-49 30-34 GNI (A tlas metho d, US$ billio ns) 8.9 887 379 15-19 GNI per capita (A tlas metho d, US$ ) 680 1,082 457 GNI per capita (P P P , internatio nal $ ) 1 90 ,1 1,973 1 37 ,1 0-4 10 5 0 5 10 GDP gro wth (%) 4.5 5.2 6.2 percent of total population GDP per capita gro wth (%) 0.9 2.7 3.9 ( m o s t re c e nt e s t im a t e , 2 0 0 3 – 2 0 0 9 ) .25 P o verty headco unt ratio at $ 1 a day (P P P , %) 51 51 .. Under-5 mortality rate (per 1,000) P o verty headco unt ratio at $ 2.00 a day (P P P , %) 77 73 .. Life expectancy at birth (years) 48 52 57 300 Infant mo rtality (per 1,000 live births) 101 83 77 Child malnutritio n (% o f children under 5) 28 25 28 250 200 5 A dult literacy, male (% o f ages 1 and o lder) 35 72 73 150 5 A dult literacy, female (% o f ages 1 and o lder) 18 54 59 Gro ss primary enro llment, male (% o f age gro up) 100 105 107 100 Gro ss primary enro llment, female (% o f age gro up) 83 95 100 50 0 A ccess to an impro ved water so urce (% o f po pulatio n) 56 60 64 A ccess to impro ved sanitatio n facilities (% o f po pulatio n) 36 31 35 1990 1995 2000 2007 Mali Sub-Saharan Africa a N e t A id F lo ws 19 8 0 19 9 0 2000 2009 (US$ millio ns) Net ODA and o fficial aid 262 479 288 964 Growth of GDP and GDP per capita (%) To p 3 do no rs (in 2008): Euro pean Co mmissio n 42 42 10 149 14 Canada 13 21 13 99 12 10 France 45 129 98 82 8 6 4 A id (% o f GNI) 14.8 19.9 12.0 1 1 .0 2 A id per capita (US$ ) 37 55 27 76 0 -2 -4 Lo ng- T e rm E c o no m ic T re nds -6 95 05 Co nsumer prices (annual % change) .. 0.6 -0.7 2.2 GDP implicit deflato r (annual % change) 16.3 4.9 5.6 3.6 GDP GDP per capita Exchange rate (annual average, lo cal per US$ ) 1 21 .3 272.3 712.0 472.2 Terms o f trade index (2000 = 100) 102 144 1 00 1 14 19 8 0 – 9 0 19 9 0 – 2 0 0 0 2 0 0 0 – 0 9 (average annual gro wth %) P o pulatio n, mid-year (millio ns) 7.2 8.7 10.5 14.5 1.9 2.0 2.4 GDP (US$ millio ns) 1,787 2,421 2,422 8,996 0.8 4.1 5.3 (% o f GDP ) A griculture 48.3 45.5 41.6 36.5 3.3 2.6 4.8 Industry 13.2 15.9 20.6 24.2 4.3 6.4 4.5 M anufacturing 6.5 8.5 3.8 3.1 6.8 -1.4 5.1 Services 38.5 38.6 37.9 39.1 1.9 3.0 6.5 Ho useho ld final co nsumptio n expenditure 87.4 79.8 79.4 76.8 0.6 3.2 0.7 General go v't final co nsumptio n expenditure 1 1 .6 13.8 8.6 10.3 7.9 3.2 22.2 Gro ss capital fo rmatio n 15.5 23.0 24.6 22.4 3.6 0.4 6.2 Expo rts o f go o ds and services 14.7 17.1 26.8 26.2 4.8 9.9 6.3 Impo rts o f go o ds and services 29.1 33.7 39.4 33.8 6.6 3.5 3.9 Gro ss savings .. .. .. .. No te: Figures in italics are fo r years o ther than tho se specified. 2009 data are preliminary. .. indicates data are no t available. a. A id data are fo r 2008. Develo pment Eco no mics, Develo pment Data Gro up (DECDG). - 37 - Mali B a la nc e o f P a ym e nt s a nd T ra de 2000 2009 Governance indicators, 2000 and 2009 (US$ millio ns) To tal merchandise expo rts (fo b) 547 2,082 Voice and accountability To tal merchandise impo rts (fo b) 595 2,295 Net trade in go o ds and services -324 -711 Political stability Current acco unt balance -227 -876 Regulatory quality as a % o f GDP -9.4 -9.3 Rule of law Wo rkers' remittances and co mpensatio n o f emplo yees (receipts) 73 308.2 Control of corruption Reserves, including go ld 381 1,528 0 25 50 75 100 2009 Country's percentile rank (0-100) C e nt ra l G o v e rnm e nt F ina nc e higher values imply better ratings 2000 (% o f GDP ) Source: Kaufmann-Kraay-Mastruzzi, World Bank Current revenue (including grants) 15.7 21.7 Tax revenue 13.1 14.7 Current expenditure 1 1 .6 13.0 T e c hno lo gy a nd Inf ra s t ruc t ure 2000 2008 Overall surplus/deficit -6.6 -4.2 P aved ro ads (% o f to tal) 12.1 18.0 Highest marginal tax rate (%) Fixed line and mo bile pho ne Individual .. .. 00 subscribers (per 1 peo ple) 0 28 Co rpo rate .. .. High techno lo gy expo rts (% o f manufactured expo rts) 14.8 2.7 E xt e rna l D e bt a nd R e s o urc e F lo ws E nv iro nm e nt (US$ millio ns) To tal debt o utstanding and disbursed 2,960 1,904 A gricultural land (% o f land area) 32 32 To tal debt service 93 97.5 Fo rest area (% o f land area) 10.7 10.1 Debt relief (HIP C, M DRI) 797 27.6 Terrestrial pro tected areas (% o f surface area) .. 2.1 To tal debt (% o f GDP ) 122.2 21 .2 Freshwater reso urces per capita (cu. meters) 5,449 4,722 To tal debt service (% o f expo rts) 12.9 2.5 Freshwater withdrawal (billio n cubic meters) 6.5 .. Fo reign direct investment (net inflo ws) 82 427.6 CO2 emissio ns per capita (mt) 0.05 0.05 P o rtfo lio equity (net inflo ws) 0 9.3 GDP per unit o f energy use Composition of total external debt, 2008 (2005 P P P $ per kg o f o il equivalent) .. .. Short-term, 7 Private, 5 Energy use per capita (kg o f o il equivalent) .. .. IBRD, 0 IDA, 534 Wo rld B a nk G ro up po rt f o lio 2000 2009 Bilateral, 983 (US$ millio ns) IMF, 40 IB RD To tal debt o utstanding and disbursed – – Other multi- Disbursements – – lateral, 556 P rincipal repayments – – Interest payments – – US$ millions IDA To tal debt o utstanding and disbursed 957 698 Disbursements 49 160 P riv a t e S e c t o r D e v e lo pm e nt 2000 2009 To tal debt service 14 5 Time required to start a business (days) – 15 IFC (fiscal year) Co st to start a business (% o f GNI per capita) – 89.2 To tal disbursed and o utstanding po rtfo lio 78 9 Time required to register pro perty (days) – 29 o f which IFC o wn acco unt 57 9 Disbursements fo r IFC o wn acco unt 0 0 Ranked as a majo r co nstraint to business 2000 2009 P o rtfo lio sales, prepayments and (% o f managers surveyed who agreed) repayments fo r IFC o wn acco unt 9 0 A ccess to /co st o f financing .. 63.6 Co rruptio n .. 48.7 M IGA Gro ss expo sure 0 16 Sto ck market capitalizatio n (% o f GDP ) .. .. New guarantees 0 0 B ank capital to asset ratio (%) .. .. No te: Figures in italics are fo r years o ther than tho se specified. 2009 data are preliminary. 4/5/11 .. indicates data are no t available. – indicates o bservatio n is no t applicable. Develo pment Eco no mics, Develo pment Data Gro up (DECDG). - 38 - CAS Annex B2 - Mali Selected Indicators* of Bank Portfolio Performance and Management As Of Date 4/6/2011 Indicator 2008 2009 2010 2011 Portfolio Assessment Number of Projects Under Implementation a 11 13 12 10 Average Implementation Period (years) b 4.0 3.9 4.0 5.2 Percent of Problem Projects by Number a, c 18.2 15.4 8.3 0.0 Percent of Problem Projects by Amount a, c 11.8 1.1 0.8 0.0 Percent of Projects at Risk by Number a, d 18.2 15.4 16.7 10.0 Percent of Projects at Risk by Amount a, d 11.8 1.1 1.2 0.4 Disbursement Ratio (%) e 22.9 20.7 21.3 14.4 Portfolio Management CPPR during the year (yes/no) yes yes yes yes Memorandum Item Since FY 80 Last Five FYs Proj Eval by OED by Number 64 8 Proj Eval by OED by Amt (US$ millions) 1,741.0 429.9 % of OED Projects Rated U or HU by Number 40.6 50.0 % of OED Projects Rated U or HU by Amt 32.5 40.6 a. As shown in the Annual Report on Portfolio Performance (except for current FY). b. Average age of projects in the Bank's country portfolio. c. Percent of projects rated U or HU on development objectives (DO) and/or implementation progress (IP). d. As defined under the Portfolio Improvement Program. e. Ratio of disbursements during the year to the undisbursed balance of the Bank's portfolio at the beginning of the year: Investment projects only. * All indicators are for projects active in the Portfolio, with the exception of Disbursement Ratio, which includes all active projects as well as projects which exited during the fiscal year. - 39 - CAS Annex B3 (IFC) for Mali IFC Program, FY2008-2011 2008 2009 2010 2011* Commitments (US$m) Gross 0 33.8 17.0 5.3 Net** 0 33.8 17.0 5.3 Net Commitments by Sector (%) Food & Beverages 0 34.5 33.5 0.0 Finance & Insurance 0 34.2 66.5 100.0 Pulp & Paper 0 31.3 0 0 Net Commitments by Investment Instrument (%) Guarantee 0 34.2 66.5 100.0 Loan 0 65.8 33.5 0 * As of March 31, 2011 ** IFC's Own Account only - 40 - CAS Appendix B6 Mali – Key Economic Indicators Actual Estimate Projected Indicator 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 National accounts (as % of GDP) Gross domestic product a 100 100 100 100 100 100 100 100 100 100 Agriculture 37 37 36 40 39 40 39 39 40 40 Industry 24 24 23 20 21 21 23 23 23 23 Services 39 39 41 40 40 39 38 38 37 37 Total Consumption 89 85 87 97 91 92 88 87 85 85 Gross domestic fixed investment 23 23 22 19 20 18 21 21 21 22 Government investment 8 9 8 8 11 8 9 8 8 8 Private investment 15 14 14 12 10 11 12 13 14 15 Exports (GNFS)b 26 32 26 29 26 25 27 27 27 26 Imports (GNFS) 37 40 36 43 34 33 35 33 31 31 Gross domestic savings 11 15 13 5 13 11 12 14 16 17 Gross national savings c 11 13 13 6 13 11 14 15 15 16 Memorandum items Gross domestic product 5305 5866 7146 8722 8996 .. .. .. .. .. (US$ million at current prices) GNI per capita (US$, Atlas method) 440 460 530 610 680 .. .. .. .. .. Real annual growth rates (%, calculated from 87 prices) Gross domestic product at market prices 6.1 5.3 4.3 5.0 4.5 5.8 5.3 5.5 5.5 5.1 Real annual per capita growth rates (%, calculated from 87 prices) Balance of Payments (as % of GDP) Exports (GNFS)b 26 32 26 29 26 25 27 27 27 26 Merchandise FOB 21 24 22 21 23 24 24 23 Imports (GNFS)b 37 40 36 43 34 33 35 33 31 31 Merchandise FOB 25 31 24 24 25 24 23 22 Net current transfers 6 5 5 5 4 4 4 4 Official (net) 3 2 2 2 1 1 1 1 Private (net) 2 6 3 3 3 3 2 2 Current account balance (including official transfers) -8 -12.7 -9.3 -9.0 -9.7 -8.3 -6.5 -6.7 Overall balance 0 0.0 5.0 -1.9 -1.7 -0.4 1.1 0.9 (Continued) - 41 - CAS Appendix B6 Mali – Key Economic Indicators (continued) Actual Estimate Projected Indicator 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Public finance (as % of GDP at market prices)d Current revenues 17.9 51.8 16.9 16.0 17.1 17.4 16.3 16.5 16.9 17.1 Current expenditures 13.5 13.4 13.6 12.9 13.0 13.0 14.2 13.4 13.4 13.5 Current account surplus (+) or deficit (-) 4.5 38.4 3.3 3.1 4.1 4.4 2.1 3.1 3.5 3.6 Capital expenditure 10.4 9.2 9.7 9.8 10.8 7.9 9.2 8.3 7.5 8 Foreign financing 6.6 -26.6 6.6 5.5 7.2 4.0 4.7 4.5 4.3 4.3 Monetary indicators M2/GDP 30.0 30.4 29.4 27.9 28.1 27.9 27.7 29.0 29.9 30.8 Growth of M2 (%) 9.5 10.9 8.0 8.4 16.0 8.9 9.3 11.8 11.5 10.8 Private sector credit growth (%) 4.6 5.2 7.2 8.4 8.3 9.0 8.3 8.7 Government credit growth (net, %) 0.5 -3.2 -13.9 2.5 8.5 4.5 -1.0 -1.2 Price indices( YR87 =100) Merchandise export price index .. .. 3.4 .. .. .. .. .. .. .. Merchandise import price index .. .. 3.4 .. .. .. .. .. .. .. Merchandise terms of trade annual % change (deterioration - ) .. .. 0.0 36.7 27.7 -1.3 12.8 -8.1 4.9 0.8 Real exchange rate .. .. 0.5 8.0 0.3 -6.3 .. .. .. .. Consumer price index (% change) 6.4 1.5 2.0 9.1 2.2 1.4 2.0 2.1 2.3 2.8 GDP deflator (% change) 2.4 4.1 7.1 8.7 3.6 3.6 4.4 1.3 2.4 2.4 a. GDP at factor cost b. "GNFS" denotes "goods and nonfactor services." c. Includes net unrequited transfers excluding official capital grants. d. Consolidated central government. - 42 - CAS Appendix B7 Actual Estimated Projected Indicator 2005 2006 2007 2008 2009 2010 2011 2012 2013 Total debt outstanding and 3260 1656 1992 2125 2667 2803 2989 3094 3130 a disbursed (TDO) (US$m) Net disbursements (US$m)a .. .. 101 -9 234 428 88 64 68 Total debt service (TDS) .. .. 20 25 26 29 31 31 31 (US$m)a Debt and debt service indicators (%) TDO/XGSb 241.8 90.2 104.8 84.5 108.0 121.3 108.7 104.5 101.1 TDO/GDP 59.3 27.0 27.8 24.2 28.3 30.0 29.1 28.1 27.7 TDS/XGS .. .. 1.0 1.0 1.0 1.2 1.1 1.1 1.0 Concessional/TDO 93.7 95.1 96.8 95.9 94.1 93.9 94.1 94.5 94.8 IBRD exposure indicators (%) IBRD DS/public DS .. .. .. .. .. .. .. .. .. Preferred creditor DS/public .. .. 48.5 55.2 57.6 48.6 49.9 49.1 50.2 DS (%)c IBRD DS/XGS .. .. .. .. .. .. .. .. .. IBRD TDO (US$m)d .. .. .. .. .. .. .. .. .. Of which present value of guarantees (US$m) Share of IBRD portfolio (%) .. .. .. .. .. .. .. .. .. d IDA TDO (US$m) 1424 297 452 534 698 775 839 888 920 IFC (US$m) Loans Equity and quasi-equity /c MIGA MIGA guarantees (US$m) 16.2 16.2 16.2 16.2 16.2 16.2 16.2 16.2 16.2 a. Includes public and publicly guaranteed debt, private nonguaranteed, use of IMF credits and net short- term capital. b. "XGS" denotes exports of goods and services, including workers' remittances. c. Preferred creditors are defined as IBRD, IDA, the regional multilateral development banks, the IMF, and the Bank for International Settlements. d. Includes present value of guarantees. e. Includes equity and quasi-equity types of both loan and equity instruments. - 43 - CAS Annex B8 (IFC) - Mali Committed and Disbursed Outstanding Investment Portfolio As of 3/31/2011 (In USD Millions) Committed Disbursed Outstanding Quasi Quasi FY Approval Company Loan Equity Equity* GT/RM** Participant Loan Equity Equity GT/RM Participant 2009 BoA Mali 0 0 0 6.0 0 0 0 0 2.8 0 2009/ 2010/ 2011 Ecobank Mali 0 0 0 12.2 0 0 0 0 5.4 0 2009 GMM 10.8 0 0 0 0 10.8 0 0 0 0 2010 GRIMAS 6.5 0 0 0 0 4.7 0 0 0 0 1994/ 1998/ 2003 Hotel Bamako 1.5 0 0 0 0 1.5 0 0 0 0 2001/ 2002/ 2009 PAL-Graphique 10.7 0 0 0 0 8.5 0 0 0 0 Id 1999/ 2004 SEF SIECO 0.3 0 0 0 0 0.3 0 0 0 0 1982/ 1983/ 1990/ 1993 SIKA 0 0 0 0 0 0.0 0 0 0 0 Total Portfolio 29.8 0 0 18.2 0 25.8 0 0 8.2 0 * Quasi Equity includes both loan and equity types. ** Denotes Guarantee and Risk Management Products. - 44 - CAS Annex B8 - Mali Operations Portfolio (IBRD/IDA and Grants) As Of Date 4/6/2011 Closed Projects 76 IBRD/IDA * Total Disbursed (Active) 239.97 of w hich has been repaid 0.00 Total Disbursed (Closed) 762.07 of w hich has been repaid 79.35 Total Disbursed (Active + Closed) 1,002.04 of w hich has been repaid 79.35 Total Undisbursed (Active) 328.05 Total Undisbursed (Closed) 10.63 Total Undisbursed (Active + Closed) 338.68 Active Projects Difference Between Last PSR Expected and Actual Supervision Rating Original Amount in US$ Millions Disbursements a/ Development Implementation Frm Project ID Project Name Fiscal Year IBRD IDA GRANT Cancel. Undisb. Orig. Objectives Progress Rev'd P052402 GEF Gourma Biodiv Conserv SIL (FY05) S MS 2005 5.5 0.80 0.80 P082187 Dev Learning Ct LIL (FY04) - (PCFD) MS MS 2004 2.5 0.36 0.27 P080935 Growth Support SIL (FY05) MS MS 2005 55 33.90 27.30 16.77 P082957 HIV/AIDS MAP (FY04) S MS 2004 31.5 1.34 -6.26 -0.76 P073036 Household Energy & Univ Access (FY04) S S 2004 70.65 16.09 -19.91 8.50 P040653 Rural Com. Dev. (PACR) S S 2006 71.2 25.05 10.57 P090075 Transp Sec SIL 2 (FY07) S MS 2007 90 38.42 29.14 P081704 Agr Compet & Diversif (FY06) - (PCDA) S S 2006 46.4 18.58 17.21 P095091 Agricultural Productivity (IDA) S MS 2010 70 68.72 8.09 P108440 Energy Support Project SIL (FY09) S S 2009 120 125.59 49.39 P099709 Agricultural Productivity GEF (SIP) S MS 2010 6.2 6.20 0.50 Overall Result 557.25 11.7 335.05 117.09 24.51 a/. Intended disbursements to date minus actual disbursements to date as projected at appraisal - 45 - IBRD 33443R MALI SELECTED CITIES AND TOWNS MAIN ROADS PROVINCE CAPITALS RAILROADS NATIONAL CAPITAL REGION BOUNDARIES RIVERS INTERNATIONAL BOUNDARIES 5°W 0° 0 100 200 300 Kilometers To Chenachane 0 50 100 150 300 Miles 25°N MALI To El Mreîti S a h a r a D e s e r t ALGERIA To El Mreîti Taoudenni To Poste Maurice Cortier TOMBOUCTOU To Abalessa 20°N Tessalit 20°N M A U R I TA N I A KIDAL si Araouane du Tilem Kidal llée Va k Tombouctou Gourma ua Rharous o za (Timbuktu) GAO L’A Bourem r Nige de To Vallée To Ayun Lac Niangay Gao Kifa el ’Atrous Niafounke Menaka To Néma Hombori Lac Tondo (1,155 m) Ansongo Nara Nampala Débo Nioro To 15°N 15°N RO du Sahel Douentza Abala MOPTI To Niamey Mopti O Kayes Bandiagara Niono NIGER IK To K AY E S Goudiry Ba SÉGOU UL fin lé Kolokani To Baou Ségou Bani Ouahigouya O r g ge Ni K To San Kédougou Kita To Kéniéba niéba Kéni ba BAMAKO Koulikoro Nouna BURKINA Koutiala FASO To Siguiri Bougouni To DISTRICT Sikasso Bobo GUINEA DE BAMAKO SIKASSO Dioulasso To BENIN Kankan 10°N To 10°N Korhogo GHANA This map was produced by the Map Design Unit of The World Bank. The boundaries, TOGO SIERRA colors, denominations and any other information shown on this map do not imply, on LEONE CÔTE D’IVOIRE the part of The World Bank Group, any judgment on the legal status of any territory, or any endorsement or acceptance of such 10°W 5°W 0° boundaries. MAY 2009