The World Bank Implementation Status & Results Report Second DRC Foundational Economic Governance Reforms Development Policy Financing (P179141) Second DRC Foundational Economic Governance Reforms Development Policy Financing (P179141) EASTERN AND SOUTHERN AFRICA | Congo, Democratic Republic of | IBRD/IDA | Development Policy Financing (DPF) | FY 2023 | Seq No: 1 | Archived on 29-Jun-2024 | ISR00484 Implementing Agencies: Ministry of Finance 1.OBJECTIVE 1.1 Development Objective Original Development Objective (Approved as part of Approval package on 27-Mar-2023) Supporting the Government's program of reforms to address DRC's key governance challenges in public finances, market opening, and forestry, in order to accelerate inclusive and climate resilient development. Has the Development Objective been changed since Board Approval of the Project Objective? No 2. OVERALL RATINGS Name Current Progress towards achievement of PDO lModerately Satisfactory Overall Implementation Progress (IP) lModerately Satisfactory Overall Risk Rating lHigh Comments No comment 3. KEY ISSUES & STATUS 3.1 Implementation Status and Key Decisions This is the second and last of a Development Policy Operation series of two. The first operation, a grant of $250 million, was approved in June 2022 and disbursed in August 2022. The second operation, a credit of $500 million, was approved in March 2023 and disbursed in June 2023. Significant progress towards achieving the PDO. As of May 30, 2024, three out of ten targets were not yet achieved, but the DRC authorities are committed to pursuing efforts to achieve two of them under an agreed upon roadmap. The third unmet target has been renewed in the new DPO series Jun 29, 2024 Page 1 of 8 The World Bank Implementation Status & Results Report Second DRC Foundational Economic Governance Reforms Development Policy Financing (P179141) under preparation. The reform program supported by the two operations was satisfactorily implemented, although there remain some areas for progress. Consequently, the operation is rated Moderately Satisfactory a this ISR stage. 4. SYSTEMATIC OPERATIONS RISK-RATING TOOL Rating at Approval Risk Category Approval Package - 28 Proposed Rating Mar 2023 Political and Governance lHigh lHigh Macroeconomic lSubstantial lSubstantial Sector Strategies and Policies lSubstantial lSubstantial Technical Design of Project or Program lSubstantial lSubstantial Institutional Capacity for Implementation and lSubstantial lSubstantial Sustainability Fiduciary lHigh lHigh Environment and Social lSubstantial lSubstantial Stakeholders lHigh lHigh Overall lHigh lHigh Jun 29, 2024 Page 2 of 8 The World Bank Implementation Status & Results Report Second DRC Foundational Economic Governance Reforms Development Policy Financing (P179141) 5. RESULTS 5.1 Indicators by Pillars Pillar 1 – Strengthening the management of public expenditure and mining royalties Baseline Actual (Previous) Actual (Current) Closing Period Indicator Name Value Month/Year Value Date Value Date Value Month/Year 0% Dec/202 0% 30-Dec- 0% 30-Dec- 50% Dec/202 0 2023 2023 3 Establishing core Comments on Despite DGTCP was created and its managerial team appointed, logistical treasury and achieving targets and regulatory challenges (IT tools, logistics protocols, roll-out of the nly accounting function network of public accountants and modification of the existing (Percentage) expenditure management IT system) required more time. In this regard, authorities have issued a roadmap with 9 actions, three of which have been supported by the second series of DPO in preparation. 0% Dec/202 100% 31-Dec- 100% 31-Dec- 95% Dec/202 Standard template for 0 2023 2023 3 single source public procurement Comments on The free format is no longer used for all single source contracts. A census (Percentage) achieving targets is planned in the second half of 2024 to indicate the volume of single source contracts using the standard template. 0% Dec/202 51.55% 31-Dec- 51.55% 31-Dec- 50% Dec/202 0 2023 2023 3 Digitalization of DGRAD (non-tax revenues Comments on DGRAD (DRC authorities in charge of non-tax revenues, including mining authority) operations achieving targets royalties) collected about CDF3,083.62 billion in 2023, of which (Percentage) CDF1,589.87 billion, about 51.55 percent, were collected through the LOGIRAD (Logiciel de Gestion Intégrée des Recettes Administratives et Domaniales), a digital Management Information System. Pillar 2 – Liberalizing telecoms and strengthening SOE transparency and governance Jun 29, 2024 Page 3 of 8 The World Bank Implementation Status & Results Report Second DRC Foundational Economic Governance Reforms Development Policy Financing (P179141) Baseline Actual (Previous) Actual (Current) Closing Period Indicator Name Value Month/Year Value Date Value Date Value Month/Year The DRC Dec/202 Information 31-Dec- Information 31-Dec- The DRC Dec/202 EITI 0 on the 0.3% 2023 on the 0.3% 2023 EITI 3 National not not National Committee available available Committee is not able before end- before end- fully to fully 2024. 2024. accounts account for for (i) the shares payments of mining made (and royalties their nly distributed allocation) to to the Effective benefit- provinces, provinces, sharing mechanism in ETDs, ETD and the extractive sector FOMIN and FOMIN (Text) for share of according the to their turnover share of the allocated to mining community royalty developme (province: nt projects. 25 percent; ETD: 15 percent; and FOMIN: 10 percent), as well as (ii) payments Jun 29, 2024 Page 4 of 8 The World Bank Implementation Status & Results Report Second DRC Foundational Economic Governance Reforms Development Policy Financing (P179141) made (and their allocation) regarding the 0.3 percent of the mining companies' turnover allocated to community developme nt projects . nly Comments on The EITI reports (https://www.itierdc.net/raports_itie/) on 2020 and 2021, achieving targets already available since October 2023, provided information with the royalties allocated to provinces, ETDs and FOMIN and did not contain information on the 0.3% of the mining company's turnover should be allocated to community development projects. The government has taken steps to include in the EITI report for 2022, which has to be published by the end of 2024, a minimum allocation of 0.3% of the mining company's turnover, as stipulated in the 2018 mining code. Outdated Dec/202 US$511.23 31-Dec- US$511.23 31-Dec- $US 200 Dec/202 legal 0 million 2023 million 2023 million 3 framework with state Liberalization of exclusivity telecom sector over long (Amount(USD)) distance fiber optic cables Comments on Three companies (BCS, ADS and Liquid) engaged US$511.23 million achieving targets investments. Jun 29, 2024 Page 5 of 8 The World Bank Implementation Status & Results Report Second DRC Foundational Economic Governance Reforms Development Policy Financing (P179141) Pillar 3 – Strengthening governance for sustainable forestry Baseline Actual (Previous) Actual (Current) Closing Period Indicator Name Value Month/Year Value Date Value Date Value Month/Year Public disclosure of 0 Dec/202 6 31-Dec- 6 31-Dec- 6 Dec/202 audited financial 0 2023 2023 3 statements and annual Comments on The 2021 report is available at the website of the Council of Portfolio reports of SOEs achieving targets (https://csp.cd/publications/). For 2022, there are reports on SNEL, (Number) Gécamines, Regideso and SCTP. The full report is expected in June 2024. 0% Dec/202 0% 30-Apr- 0% 30-Apr- 50% Dec/202 Transfer of SOEs 0 2024 2024 3 nly mining assets (Percentage) Comments on Information will be known with the EITI report expected to be released by achieving targets end-2024. 18 forest Dec/202 52 31-Mar- 52 31-Mar- All forest Dec/202 Compliance of forest concession 0 2024 2024 concessions 3 concessions with contracts contracts applicable law Comments on List published by end-March 2024. Of the 83 contracts assessed, 52 were (Number) achieving targets deemed compliant, 21 subject to cancellation and 10 subject to warnings and recommendations. US$500 Dec/202 US$966.72 31-Dec- US$966.72 31-Dec- US$1.2 Dec/202 Amount of financing million 0 billion 2023 billion 2023 billion 3 mobilized to implement mobilized mobilized the National Strategy Comments on A gap of US$233.28 million should be closed during 2024 and the for Reducing achieving targets government is pursuing dialogue with partners to close the gap, including Deforestation and with the IMF under the RST. Forest Degradation About US$966.72 million was mobilized from: (REDD+). 1. FONAREDD (US$500 million with CAFI); (Amount(USD)) 2. PIRF (US$300 million with WBG); 3. TNE Maindombe (US$55 million with WBG); Jun 29, 2024 Page 6 of 8 The World Bank Implementation Status & Results Report Second DRC Foundational Economic Governance Reforms Development Policy Financing (P179141) 4. Fonds OKAPI (US$23.76 million with German cooperation); 5. Unis pour le developpement (US$72.36 million with European union); 6. Normes socio environnementales ($US0.6 million with GIZ); 7. PIREDD ($US7.0 with JICA); 8. PROMIS ($US8.0 million with Tulane University). 0 Dec/202 2 31-Dec- 2 31-Dec- At least one Dec/202 0 2023 2023 carbon 3 Number of carbon project projects registered registered. (Number) Comments on ERA Congo and Mai-Ndombe Project registered. achieving targets nly Jun 29, 2024 Page 7 of 8 The World Bank Implementation Status & Results Report Second DRC Foundational Economic Governance Reforms Development Policy Financing (P179141) 6. DATA ON FINANCIAL PERFORMANCE 6.1 Disbursements (by loan) Loan/Credit/ Cancelle Undisburs Status Original Revised Disbursed % Disbursed TF d ed IDA-72880 Effective 500.00 500.00 0.00 500.00 0.00 100.00 % 6.2 Key Dates (by loan) Orig. Rev. Loan/Credit/TF Status Approval Signing Effectiveness Closing Closing 30-Mar- 30-Jun- IDA-72880 Effective 28-Mar-2023 29-Jun-2023 30-Jun-2024 2023 2024 7. KEY DATES Key Events Planned Actual Approval 28-Mar-2023 28-Mar-2023 Effectiveness 29-Jun-2023 29-Jun-2023 Operation Closing/Cancellation 30-Jun-2024 8. TRANCHES No Tranches have been added 9. ASSOCIATED OPERATION(S) There are no associated operations Jun 29, 2024 Page 8 of 8