76342 For Official Use Only CASCR Review Independent Evaluation Group 3/28/2013 1. CAS Data Country: Benin CAS Year: FY09 CAS Period: FY09 – FY12 CASCR Review Period: FY09 – FY12 Date of this review: 3/27/2013 2. Executive Summary i. This Review examines the implementation of the Benin FY09-FY12 Country Assistance Strategy (CAS) and assesses the CAS Completion Report (CASCR). Although relevant IFC activities were discussed in both documents, the CAS was not a joint IDA-IFC strategy, and this review covers only IDA. ii. The broad objective of the Bank’s assistance to Benin was to selectively support implementation of the Growth Strategy for Poverty Reduction (SCRP) of the Government. The CAS was organized under three pillars: (i) strengthening competitiveness and accelerating private sector- led growth through supporting macroeconomic stability and public financial management, improving the investment climate and revitalizing the private sector, enhancing the contribution of agriculture to growth, promoting telecommunications and energy services, and increasing regional integration and reducing trade costs; (ii) improving access to basic services by improving environment and urban sanitation, improving access to safe drinking water, improving quality education, health and nutrition services, as well as treatment for HIV/AIDS and malaria; and (iii) promoting better governance and strengthening institutional capacities via support to improve public administration, transparency and anti-corruption, to strengthen budget accounting, implementation and control, and to support the decentralization process. iii. IEG rates the overall outcome of IDA assistance as moderately satisfactory, concurring with the CASCR. There was progress in strengthening public financial management and fiscal discipline; the provision of communication, energy, urban sanitation, safe drinking water and health services were all improved; a procurement code was adopted; and the decentralization efforts through community development were successful. However, in many of these areas, the progress was slow and partial. Moreover, there were limited results from the efforts to improve the investment climate, to promote agricultural growth and economic diversification, and to ensure quality education. In several areas, signs of improvement only began to appear towards the end of the CAS period. The indicators of governance show little or no improvement. iv. The CASCR contains several useful lessons: broad-based political support for successful CAS implementation; an understanding of the political economy and dynamics of consensus-building and internal decision-making in formulating institutional reforms; the mix of policy-based and investment operations in country programming; concentration of IDA assistance; the need for technical support in policy reforms; donor coordination; longer CAS period and flexibility; and adequate indicators. Among these, two seem especially relevant. First, reform progress in Benin has been very slow and partial. Given the many challenges facing the country and IDA’s limited resources, a more focused assistance in fewer areas will be more likely to have stronger impact. Second, lack of good information is a common issue and Benin is no exception. A result-based CAS needs concrete, measurable and monitorable indicators. It is worth spending more effort on data issues. CASCR Reviewed by: Peer Reviewed by: CASCR Review Coordinator Bernard Kwindja Rene Vandendries Xiaolun Sun Consultant, IEGCC Consultant, IEGCC Senior Evaluation Officer, IEGCC For Official Use Only CASCR Review 2 Independent Evaluation Group 3. Assessment of WBG Strategy Overview of CAS Relevance: Country Context: 1. Following the political change towards democracy in 1989, Benin enjoyed two decades of good economic performance, with real GDP growth averaging 5% in the 1990s and 4.5% in 2000-09. During the CAS period, however, growth slowed to 3.2% per annum, barely in pace with the expansion of the population. Despite modest progress in per capita income growth, poverty remains widespread. The economy is undiversified and relies on agriculture, especially cotton, and on re-export and transit trade, mainly with Nigeria but also landlocked Burkina Faso and Niger. Given its high dependence on imports, often of basic goods, Benin runs a structural trade deficit, although accurate data is scarce as a large portion of Benin’s imports are diverted to Nigeria where much of its petroleum products are smuggled in at the same time, making the country also vulnerable to policy changes in Nigeria. Economic reforms have focused on fiscal consolidation, which has kept fiscal deficits at manageable levels and contributed to low public debt. On the other hand, structural reforms have been slow due to a difficult political environment, although the results of the 2011 presidential and legislative elections improved the prospects for further reforms. In June 2010, the IMF approved a 3 year Extended Credit Facility Arrangement, whose reviews have been successful thus far. 2. The Government’s long-term vision was presented in Alafia Benin 2025, which articulated the goal of making Benin an emerging economy by 2025. The Strategic Development Orientations (SDO) defined the development policy framework for 2006-2011 to put Benin on a path to becoming an emerging economy. The SDO had two key objectives: stimulating growth through improved competitiveness, and reducing poverty while improving the quality of life of the population. The Government’s second poverty reduction strategy paper – the Growth Strategy for Poverty Reduction (SCRP) - provided the specifics for implementing the SDO over 2007-2009. It was built around five pillars: accelerating growth, developing infrastructure, developing human capital, improving governance, and promoting balanced and sustainable development. Objectives of the WBG Strategy: 3. The broad objective of the Bank’s assistance to Benin was to selectively support implementation of the SCRP. The CAS was organized under three pillars: (i) strengthening competitiveness and accelerating private sector-led growth through supporting macroeconomic stability and public financial management, improving the investment climate and revitalizing the private sector, enhancing the contribution of agriculture to growth, promoting telecommunications and energy services, and increasing regional integration and reducing trade costs; (ii) improving access to basic services by improving environment and urban sanitation, improving access to safe drinking water, improving quality education, health and nutrition services, as well as treatment for HIV/AIDS and malaria; and (iii) promoting better governance and strengthening institutional capacities via support to improve public administration, transparency and anti-corruption, to strengthen budget accounting, implementation and control, and to support the decentralization process. Relevance of the WBG Strategy: 4. Congruence with country context and country program. In view of the many challenges facing Benin, it is undeniable that the CAS objectives were relevant - they recognized and responded to the country’s key development challenges, including its changing needs brought about by external shocks. By firmly anchoring the Bank’s assistance in supporting implementation of the SCRP, the CAS program was also well aligned with the Government’s development program. However, while the SCRP covered only 2007-2009, the CAS was for the period FY09-FY12. There was no indication in For Official Use Only CASCR Review 3 Independent Evaluation Group the CAS of what the country’s program was expected to be after the SCRP; and there was no CAS Progress Report (CASPR) to provide an update. Consequently, it is unclear whether the CAS remained consistent with the country’s own development agenda throughout the CAS period. 5. Relevance of Design. Although the strategy aimed to be selective and the focus areas were chosen based on a client survey and consultations on IDA’s comparative advantages, the design of the CAS was far too ambitious - in one way or another, it attempted to cover almost every area in need of reform. The program was diffuse, making it nearly impossible to achieve truly significant progress in any particular area. Nevertheless, the combination of budget support for institutional reforms and investment lending to expand the basic facilities was appropriate, and there was also adequate attention to donor coordination. 6. Strength of the results framework. The results matrix was consistent with the main text of the strategy and clearly articulated the results chain linking Bank activities to CAS objectives to higher- level country goals. The CAS objectives were set at the appropriate level and reflected the combined contribution of the CAS program, rather than individual CAS projects. However, as recognized in the CASCR, it was deficient in some ways. For example, there was no clear link between proposed CAS activities and the ultimate goal of increased cotton production. A variety of issues also existed with the outcome indicators: some were poorly defined (e.g., rationalization of business development infrastructure), some lacked baseline data (e.g., producers receiving extension services), some were not monitored (e.g., access gap to basic social services) or not available (e.g., productivity increase at national level), while others were absent (e.g., education quality). 7. Risk identification and mitigation. The CAS identified three main risks: weak commitment or lack of consensus for reforms, weak absorptive capacity, and external shocks and risks to the macroeconomic framework. All of these risks materialized to some extent. The CASCR notes that the depth of the political divisions and the difficulties in building reform coalitions were not fully recognized in the CAS as the proposed mitigation measures, such as new dialogue with parliamentarians, were inadequate to maintain reform momentum. The CASCR also indicates that despite considerable donors’ technical support, weak absorptive capacity continued to pose a constraint to the full implementation of the PFM action plan. Finally, although no specific measures were proposed in the CAS to mitigate the risks of food crisis and flood, when they hit, IDA responded quickly and successfully. Overview of CAS Implementation: Lending: 8. With a few deviations and delays, some in response to emergencies, IDA’s program was largely delivered as planned. In all, 17 operations for a total of $398 million were approved over the CAS period, of which six were non-planned and four were regional operations. This exceeded the planned total of $312 million in 14 operations. Close to one third of IDA’s financial assistance ($112 million) was for policy-based lending (PRSCs 5-7). There were also nine projects totaling $328 million on-going at the start of the CAS period, and 17 operations financed by trust funds (TFs) for a total of $141 million active during the CAS period. In response to the food crisis in FY09-10, two TF-financed food security projects and one nutrition project for $20 million were delivered; following major floods in FY11, IDA increased its allocation for an Urban Environment project from $30 to $50 million and approved supplemental financing for PRSC6 of $22 million. 9. IEG reviewed the completion reports of two projects that were closed during the CAS period and rated their development outcomes as satisfactory for one and moderately unsatisfactory for the other. This is too small of a sample to be compared with the average satisfactory rates of African region (63.5%) and the Bank (71.8%). For Official Use Only CASCR Review 4 Independent Evaluation Group Analytic and Advisory Activities and Services 10. The CAS outlined the planned AAA program – 11 studies - with little articulation of the rationale behind the choice of the topics. With some delays and modifications, the planned program was largely delivered. In addition, four non-planned reports and three non-planned technical assistance tasks were completed. The CASCR does not explain the reasons for their addition, and does not provide any information on the dissemination and the use of the AAA work, even though the CAS promised that “the Bank will ensure that sufficient resources are devoted to the dissemination of programmed ESW and that key stakeholders are engaged during all phases.” Partnerships and Development Partner Coordination 11. The CAS identified a large number of multilateral (e.g., the European Commission, the African Development Bank and the UN) and bilateral (e.g., France, Denmark, Germany, the Netherland and the US) development partners that were active in Benin. It reported on the Bank’s progress in implementing Paris Declaration, but noted that greater efforts would be needed in areas such as coordination of technical cooperation and joint missions. The relevant discussion in the CASCR suggests that donor activities were well coordinated in several Bank lending (e.g., health) and non- lending (e.g., public finance, health, education) projects, although the program-based approach was not used to the extent planned due to insufficient institutional framework and fiduciary controls in some ministries. Safeguards and Fiduciary Issues 12. The CASCR does not report on these issues. During the CAS period, there were no safeguards complaints brought before the Inspection Panel; but INT recorded more than 6 allegations of fraud and corruption, and found sufficient basis to open 2 cases. One of these was substantiated, leading to a sanction process. Overview of Achievement by Objective: Pillar I: Strengthening competitiveness and accelerating private sector-led growth 13. Under this pillar, IDA sought to support Benin in a variety of areas, including the stabilization of the macroeconomic framework, strengthening competitiveness and revitalization of the private sector, diversification of the economy, development of ICT, energy and regional integration. 14. Support a stable macroeconomic framework and improve public financial management. Amid negative shocks and economic slowing-down, the Government maintained the fiscal discipline that had been gradually established since the mid 2000’s under the guidance of, among others, a PRSC process. A three year Extended Credit Facility Arrangement was agreed with the IMF in June 2010 and program performance has remained broadly satisfactory. To keep expenditures in line with revenues, the Government imposed strict expenditure controls with the result that two main CAS indicators in this area – an increase in the overall budget execution rate and an increase in investment spending execution – were not met. Also, targets on social spending in the IMF program were not met (although the CASCR reports that execution of priority social expenditure exceeded 100% in 2012), while the number of Public Expenditure and Financial Accountability “B” score indicators increased from 4 to 7 (against the CAS target of 8). Structural reform also took place, albeit at a slow pace: progress was made in customs administration, while public financial management was strengthened with the submission of a draft Organic Budget Law to the Supreme Court and the preparation of the 2010 budget execution accounts, among others. IDA support in the area came primarily from the three PRSCs and supplemental financing (FY09, FY10, FY11 and FY12) for a total of US$112 million, as well as a Public Expenditure Review (PER, FY11). For Official Use Only CASCR Review 5 Independent Evaluation Group 15. Improve the investment climate and revitalize the private sector. Some private sector reform took place over the CAS period, including the concession award of the container terminal at the port of Cotonou, the sale of the cotton ginning, cement and wood companies to private investors, changes in the tax system to make it more business friendly, and the elimination of the company registration fee. However, the CASCR notes that cotton sector reforms were reversed in early 2012 when the State, following nearly two decades of progressive government disengagement, took control over cotton production, ginning and marketing activities. Also the major legislative reforms to improve the Doing Business (DB) rankings (several CAS indicators) were not submitted to parliament and, despite some improvement in select DB indicators, Benin’s overall DB ranking deteriorated from 151 out of 178 countries in 2008 to 175 out of 185 countries in 2013. Private investment stagnated over the period, while Benin’s Global Competitiveness Index ranking dropped from the 104th to the 119th place between 2011/12 and 2012/13. IDA support in this area came through the PRSC series, which had very disappointing results in the private sector development component, and a Competitiveness and Integrated Growth Opportunity project (CIGOP, FY08) that encountered significant implementation delay with limited results. Meanwhile, IFC provided advisory services to implement Doing Business reforms and OHADA’s Uniform Acts. 16. Enhance the contribution of agriculture to growth. Data is not available on the contribution of agriculture to GDP growth, although the CASCR reports a higher than expected increase in non- cotton agricultural exports, a CAS indicator. Due to the combined effects of long-standing obstacles to agricultural growth (e.g., constraints in input procurement, low productivity) and adverse weather conditions, cotton production declined instead of increasing by 30% as expected in the CAS (although the CASCR reports exceptional harvest in 2012). Measures for some outcome indicators, such as the percentage of producers receiving extension services or productivity increases for food crops, were not available. The planned new system for input distribution (for cotton and food crops) was not developed, but a study led to an action plan for delivery of inputs for food crop farmers, which would be piloted under the Agricultural Productivity and Diversification project (FY11). The one bright spot was the impact of the TF-financed Emergency Food Security Support (FY09) and the Emergency Support to Enhance Food Security projects (FY10), which succeeded in providing access to extension services for 70% of the beneficiaries (rice and maize producers) and in increasing the provision of fertilizers in project areas. In addition, IDA supported the sector through the PRSCs and a study on options for agricultural diversification (FY08). 17. Promote growth-inducing infrastructure: telecommunications and energy. There was progress in this area, although some CAS targets were not met. Teledensity increased significantly from 13 to 81% during 2007-2010 largely as a result of expansion in mobile phones. On the other hand, privatization of the Benin Telecom SA did not proceed as planned because the Government deemed the offer to be too low, which meant that the fiscal contribution target was not met. There was also progress in the energy sector. The CASCR reports that access to electricity increased from 26 to 30% of the population in 2011 (no baseline year provided); reliability of supply has improved; the capacity is up; northern Benin is now connected to the national grid; and the financial health of the distribution utility has improved but remains fragile. A regulatory agency was created in 2009. However, energy efficiency has not improved and losses remain substantial. IDA support in this area included an Electricity Services Delivery project with supplemental financing (FY05 and FY08), the CIGOP mentioned above, which included a PPP component to support the Government in the privatization of Benin Telecom SA, and an eBenin project (FY10) to improve ICT services and to enable the development of e-applications. 18. Increase competitiveness through greater regional integration and reduced trade costs. As the CASCR reports, achievements in this area included the creation of a one–stop shop for port transactions, streamlining of import/export procedures, and subcontracting of some port operations to the private sector. IDA supported Benin’s regional integration agenda through the PRSCs, the Abidjan – Lagos Trade and Transport Facilitation (FY10), which focused on the corridor’s road infrastructure For Official Use Only CASCR Review 6 Independent Evaluation Group but had a trade facilitation component, including customs and port reforms. On the other hand, IDA had a limited role in the third outcome above as the Millennium Challenge Corporation led the support for reforms in the port sector, with IFC facilitating in identifying the private operator. Nevertheless, cargo dwell time in the port (a CAS indicator) has not reduced even though the DB’s Trading Across Border indicator shows reduced time to import and export. In addition, the CASCR reports increasing participation of Benin in the regional energy pool, which should bring down costs and increase reliability. IDA’s main instrument was the West Africa Power Pool APL - 2nd Phase Coastal Transmission Backbone project (FY06), which was rated as moderately unsatisfactory by the project team for slow pace of implementation of the Benin components. 19. IEG rates the outcome of IDA assistance under Pillar I as moderately unsatisfactory. There has been slow progress overall toward achieving the five objectives. While reforms in public financial management were encouraging, maintaining good PFM remains a major challenge; infrastructure services (telecommunication and energy) improved, but important structural reforms did not proceed as planned and energy efficiency remained low; some progress was achieved in simplifying the procedures for port transactions and in improving port operations, although this has not led to speedier port clearance as cargo dwell time increased. Moreover, there was limited progress towards agricultural growth and in the overall investment climate despite some signs of improvement towards the end of the CAS period. Pillar 2: Improving access to basic services 20. Under this pillar, IDA sought to improve environmental and urban sanitation, improve rural and urban water supply, improve development-oriented education and improve accessibility and quality of health and nutrition services. 21. Improve environmental quality and urban sanitation. The main objective was to improve sanitary conditions in some neighborhoods of major cities and at the same time provide the residents with better access to social and economic services. The CAS outcome targets of increasing the number of people with access to paved roads and of improving management procedures and budget allocations for priority expenditures in pilot cities were met, but other indicators, including a reduced gap in access to basic social services between the poorest and average communities and increased use of waste water management systems, were not monitored or no data were available. IDA supported this objective through the PRSCs, additional financing for a Second Decentralized City Management project (FY08) that financed road and drainage work in the major cities, and an Emergency Urban Environment project (FY11) to improve drainage, municipal waste management and flood preparedness 22. Improving access to safe and sustainable drinking water and sanitation. The goal of the Bank was to continue to support, in collaboration with other partners, the sector-wide approach for the development of the rural water supply system, leading to improved service delivery and access, as well as transferring of responsibility from the central administration to local governments, private operators and consumer associations. The latest data available (2010) suggest that the CAS targets of increased access to safe water for the rural population and increased percentage of water systems functioning are on track to be achieved. IDA support was provided primarily through the PRSCs. 23. Improve quality education services to better respond to development needs. Little progress appears to have been made in this area. Although access to primary education increased with enrolment rising from 98.5 to 110.6% for boys and from 92 to 106% for girls during 2007-2010, completion rates (CAS target) have not improved. The CASCR notes the continued high repetition and drop-out rates and little or no improvement in education quality (not tracked) as key reasons for the disappointing results. IDA support was mainly through a trust-funded Education for all-Fast Track Initiative (FY08). The CAS also aimed to improve higher education and vocational training through For Official Use Only CASCR Review 7 Independent Evaluation Group better information, financing and university management, as well as new regulatory framework for private education. However, few results have been achieved and the key support instrument – a study on Higher Education and Skills Development proposed for FY10 - was postponed to FY13. 24. Increase access to health and nutrition services and treatment for HIV/AIDS and Malaria. The CAS envisioned a health SWAp to achieve the expected improvements in the sector. However, IDA interventions during the CAS period focused on specific health issues, including coverage of maternal and children’s health services, and HIV/AIDS and malaria control. Good progress was made in all CAS outcome areas: birth medical assistance increased from 78% in 2006 to 84% in 2011 (CAS target: 90% in 2012), the percentage of children with diarrhea receiving oral rehydration therapy rose from 23% in 2006 to 50% in 2011 (above CAS target of 36% in 2012), preventive measures for malaria control expanded, although the share of children with fever being treated promptly reached less than half of CAS target, and the percentage of people with advanced HIV infection receiving treatment far exceeded the CAS targets. However, the CASCR notes that limited progress was made in improving the overall performance of the health sector. IDA’s support in the area, apart from the PRSCs, included a Malaria Control Booster program (FY06), a Second Multisectoral HIV/AIDS Control project (FY07), a Health System Performance project and additional financing (FY10 and FY12) focusing on maternal and neonatal services and the institutional capacity of the Ministry of Health, and a TF-financed Benin Community Nutrition project (FY11). The Bank’s Health Country Status Report (FY09) underpinned the Government’s and the donor’s programs. 25. IEG rates the outcome of IDA assistance under Pillar II as moderately satisfactory. There is evidence of improved access to health services, to urban roads, water and sanitation services, and to safe water in rural areas. There is also indication that municipal budget allocation for social expenditures has increased, although significant management and service delivery gaps remain. In the education sector, however, little progress has been achieved. Pillar 3: Promoting better governance and strengthening institutional capacities 26. Under this pillar, IDA sought to help Benin improve public administration and fight corruption, to strengthen budget accounting, implementation and control, and to support decentralization through community development. 27. Improve public administration, transparency and anti-corruption. The CAS intended to support, along with other partners, the Government’s implementation of its Results-Oriented Budget Management (GBAR) and its Public Financial Management (PFM) action plan through the PRSCs. The CASCR reports that these goals were partially achieved: detailed PFM action plan was completed in 2009 with results-based budgeting applied at ministry level; a revised Organic Law of Finance that was consistent with West Africa Economic and Monetary Union directives was approved by the National Assembly; a Public Sector Code of Ethics was adopted in 2009; and a Law on Corruption and other Economic and Financial Crimes was approved by the National Assembly in 2011. However, budgets are not yet consolidated at the national level, and the auditors are not yet authorized to audit ministries and other central government departments. The Worldwide Governance Indicators show little change (from -0.49 to -0.46) between 2008 and 2011 in term of Government Effectiveness, while the Control of Corruption indices show deterioration (from -0.53 to -0.67). In addition to the PRSCs, IDA delivered a Public Expenditures Review (PER, FY11), and TF-financed institutional capacity building projects. 28. Strengthen budget accounting, implementation and control. The main result in this area was that a procurement code was adopted in 2009, with the regulatory framework almost in place (six of the seven implementing decrees approved). IDA support included an Accounting and Auditing Report on the Observance of Standards and Codes (ROSC, FY09), the PER (FY11) and training of auditors under an IDF grant. For Official Use Only CASCR Review 8 Independent Evaluation Group 29. Support decentralization through community development. This is an area where tangible progress was made. By 2009, more than the targeted number of communities had received grassroots management training (1518 communities out of a total of 3,500 nation-wide), in 2010 the mechanism for transferring funds to communities was expanded, and by 2011 some 20% of public capital spending on basic services was carried out by communities. Projects included construction or rehabilitation of classrooms, health centers and community water points. IDA support included a successful Community Driven Development project (FY05) that received additional financing in FY11. 30. IEG rates the outcome of IDA assistance under Pillar III as moderately satisfactory. Good progress was made in the area of community development. Important reforms in public administration and budget accounting took place, but their impact remains to be seen. International governance indicators show little improvement in public administration between 2008 and 2011, while corruption was perceived to have worsened. Objectives CASCR Rating IEG Rating Pillar I: Strengthening Competitiveness and Not Rated Moderately Unsatisfactory Accelerating Private Sector-led Growth Pillar II: Improving Access to Basic Not Rated Moderately Satisfactory Services Pillar III: Promoting better governance and Not Rated Moderately Satisfactory strengthening institutional capacities 4. Overall IEG Assessment CASCR Rating IEG Rating Overall Outcome: Moderately Satisfactory Moderately Satisfactory IDA Performance: Satisfactory Moderately Satisfactory Overall outcome: 31. IEG rates the overall outcome of IDA assistance as moderately satisfactory, concurring with the CASCR. There was progress in strengthening public financial management and fiscal discipline; the provision of communication, energy, urban sanitation, safe drinking water and health services were improved; a procurement code was adopted; and the community development efforts were successful. However, in many of these areas, the progress was slow and partial. Moreover, there was a lack of tangible results from the efforts to improve the investment climate, to promote agricultural growth, and to ensure quality education, while indicators of governance show little or no improvement. IDA Performance: 32. IEG rates IDA performance as moderately satisfactory, below the CASCR rating of satisfactory. The CAS responded to the key development challenges facing Benin. It was well aligned with the Government’s poverty reduction strategy. With some deviations and delays, the program was largely delivered as planned. IDA was also flexible when a food crisis and floods arose and adjusted its program to respond to these emergencies. However, the design of the program was too ambitious in attempting to address an excessively large number of challenges, which made it very difficult to achieve significant results in any particular area. A monitoring framework was not set up due to staffing issues. Despite the intentions, a CASPR was not prepared to take stock of the lessons learned during the first phase of CAS implementation and to introduce program adjustments in the context of changing external conditions. For Official Use Only CASCR Review 9 Independent Evaluation Group 5. Assessment of CAS Completion Report 33. The CASCR is easy to read, albeit repetitive at times. It follows the results matrix closely and provides a candid assessment of the achievements and failures of the IDA program. While it correctly points to the shortcomings of the program design, it is nevertheless too positive in rating the Bank’s performance. It could have elaborated on whether Benin needs assistance in developing its data base to make program monitoring more effective. Some more specificity on the relative roles among the donors would have been useful. It is pointed out, for example, that the European Union was conducting a PER for 2011, the year in which IDA’s PER was delivered, without reporting on how the workload may have been divided between the two institutions. 6. Findings and Lessons 34. The CASCR contains several useful lessons: broad-based political support for successful CAS implementation; an understanding of the political economy and dynamics of consensus-building and internal decision-making in formulating institutional reforms; the mix of policy-based and investment operations in country programming; concentration of IDA assistance; the need for technical support in policy reforms; donor coordination; longer CAS period and flexibility; and adequate indicators. Among these, two seem especially relevant. First, reform progress in Benin has been very slow and partial. Given the many challenges facing the country and IDA’s limited resources, a more focused assistance in fewer areas will be more likely to have stronger impact. Second, lack of good information is a common issue and Benin is no exception. A result-based CAS needs concrete, measurable and monitorable indicators. It is worth spending more effort on data issues. Annexes CASCR Review 11 Independent Evaluation Group Annex Table 1: Summary of Achievements of the CAS Objectives Annex Table 2: Benin Planned and Actual Lending, FY09-FY12 Annex Table 3: Grants and Trust Fund Active in FY09-FY12 (in US$ million) Annex Table 4: Planned and Actual Analytical and Advisory Work, FY09-FY12 Annex Table 5: IEG Projects Ratings for Benin, Exit FY09-FY12 Annex Table 6: IEG Project Ratings for Benin and Competitors, Exit FY09-FY12 Annex Table 7: Portfolio Status for Benin and Competitors, FY09-FY12 Annex Table 8: IDA Nets Disbursements and Charges Summary Report for Benin (in $US million) Annex Table 9: Total Net Disbursements of Official Development Assistance and Official Aid, 2008-10 (in $US million) Annex Table 10: Economic and Social Indicators for Benin and Competitors, 2008-11 Annex Table 11: Benin: Millennium Development Goals Annexes CASCR Review 13 Independent Evaluation Group Annex Table 1: Summary of Achievements of the CAS Objectives. CAS 09-12: Pillar 1 Actual Results Comments Strengthening Competitiveness and (as of current month year) Accelerating Private Sector-led Growth Major 1. Support stable macroeconomic framework and improve public financial management Outcome Increase the overall budget Overall budget execution rate Source: CASCR Measures execution rate from 76.5% in decreased from 69.3% in 2006 to 90.0% in 2012. 2008 to 60.7% in 2010. Increase investment spending Execution rate for investment Source: CASCR execution from 56.3% in 2006 was 27.3% in 2010 and to 70.0% in 2012. 24.2% in 2011. Increase the number of PEFA Number of PEFA indicators, Source: CASCR indicators with a “B” score in the 2012 PEFA, rated as from 4 in 2007 to 8 in 2012. “B” was 7. Maintain spending by Spending by payment orders Source: CASCR payment orders below 6 was 4.9% of total spending in percent of total spending in 209, 4.8% in 2010 and 4.4% 2012. in 2011. 2. Improve the investment climate and revitalize the private sector Reduction in company Fees at the one stop shop Source: CASCR registration fee by 10% by have been restructured and 2011. reduced from XOF 249.200 (DB12) to XOF139.300 (DB13), The main reduction relate to the Registration with RCCM (from XOF 77,900 to XOF 12,000). Also the payment of the cost (6.000 XOF) related to the registration of the articles of incorporation with the Tax authorities is suspended. Reduce the time to create a 26 days in Doing Business Source: Doing Business. company from 31 days in 2013. 2008 to 20 days by 2011. Reduce the cost of Company registration cost Source: Doing Business. formalization from 195% of ((% of income per capita) GNI per capita in 2006 to 135 was reduced from 198.1% in 2011. (DB 2009) to 126.8% (DB 2013). Develop and Implement a - Individual Taxpayer Source: CASCR business friendly taxation Identification System system extended and implemented: companies receive tax id number at time business is registered. - Tax centers opened in regions to inform and facilitate payments by small companies. - Elimination of customs identification practices for small imports (generic code) which should reduce tax evasion. - Tax and customs systems computerized which enables tracking of payments due. - Exemption of all tax Annexes CASCR Review 14 Independent Evaluation Group CAS 09-12: Pillar 1 Actual Results Comments Strengthening Competitiveness and (as of current month year) Accelerating Private Sector-led Growth payments for new businesses registered during the first year of operation. Rationalization and No data available yet Source: CASCR strengthening of the business Activities contemplated under CIGOP project development infrastructure (Minimum Integrated Trade Expansion Infrastructure-MITEP) to be implemented. 3. Enhance the contribution of agriculture to growth By 2012, 40% of producers The value of this indicator at Source: CASCR receive extension services the national level is not In the areas covered by the Emergency Food available. Security Support Project (FY09) and the Emergency Support to Enhance Food Security Project (FY10), about 70% of the beneficiaries (rice and maize producers) have access to extension services. A new system for input A Study commissioned under Source: CASCR distribution (cotton & food the Emergency Food Security crops) developed and put in Support Project (completed place. July 2010) led to a concrete action plan under the Emergency Support to Enhance Food Security Project to support the design of innovative and market based mechanisms for the sustainable delivery of agricultural inputs (fertilizers and others) to food crop farmers. The report is available (August 2011) and the pilot phase of the implementation of the new mechanism under the Agricultural Productivity and Diversification Project has reached an advanced stage. Assets of cotton producing company, SONAPRA, transferred to new public- private cotton ginning company SODECO. SODECO continues to arrange for input distribution for cotton. By October 2009, 51% of the new company’s assets were privately owned. But in April 2012, after allegations of mismanagement by AIC, the Government annulled the Accord Cadre defining respective Government and AIC roles in cotton sector and took over management of all activities for the ongoing 2012/2013 cropping season and probably also for the forthcoming 2013/2014 season. Increase of cotton production Cotton production declined Source: CASCR by 30% during CAS period to (in ‘000 tons) from 243 in about 360,000 tons. 2008 to 174 in 2011. However big increase in 2012 (350). Annexes CASCR Review 15 Independent Evaluation Group CAS 09-12: Pillar 1 Actual Results Comments Strengthening Competitiveness and (as of current month year) Accelerating Private Sector-led Growth Increase in agricultural Agricultural exports revenues Source: INSAE Benin exports revenues (other than (other than cotton) increased cotton) by 3% per year during from around 75 (CFA F http://www.insae- the CAS period. million) in 2008 to around 140 bj.org/2012/doc/Publications/EXPORTNATIONALE. in 2010. pdf Irrigate and exploit 5,000 ha Under the Emergency Source: CASCR additional by 2012 (10,000 ha Support to Enhance Food in 2008). Security Project, 5 000 additional ha were developed under small scale irrigation schemes Productivity increases by 15% The value of this indicator at Source: CASCR for food crops by 2012. the national level is not As a result of increased access to improved seeds available. and fertilizers under the Emergency Food Security Support Project, productivity of food crops (namely maize and rice) in project areas has increased. For example the average yield for rice increased from 2.97 tons /ha to 4.22 tons/ha. For maize, the average yield increased from 1.2 tons per ha to about 2 tons per /ha. 4. Promote growth inducing infrastructure –Telecommunications Increase direct fiscal The CASCR recognize that Source: CASCR contribution to the the outcome indicator was Revenue increase expected to be derived from Government by 75% from not achieved. privatization of the Benin Telecommunications 2008 to 2012. Company. International tender brought lower offer than in neighboring countries, largely a reflection of a changed global environment. Process completed in April 2011 but Government did not accept offer. Increase global teledensity 9% in 2005 to 82% in 2010. Source: MDG (fixed & mobile subscribers) The CASCR reports 80.6% as of September 2012. from 13% in 05/07 to 45% in 12/ 12. Increase Broadband access Broadband access stood at Source: CASCR (Above 256 Kbytes) from 0.104% in 2010 and reached 0.01% in 2007 to 0.2% in 0.3% in September 2012. 2012. Reduce overall telecom Information not available Source: CASCR basket cost by 30% from 2007 to 2012. 5. Promote growth inducing infrastructure - Energy services Improve reliability of electricity Completion of North Togo– Source: CASCR provision in northern Benin to North Benin transmission reduce voltage punctuation in infrastructure has improved the major cities to within +/- reliability of electricity in 7% by 2012. Northern Benin. Voltage drop on transmission lines is within +/- 7% range. Increase effective new SBEE (power distribution Source: CASCR connections from 18,000/year utility) annual new to 25,000/ year in 2012. connections were 21,000 in 2011. Improve efficiency of Losses of 21.76% in 2011. Source: CASCR electricity sector: losses reduced below 16% from 18% IDA project supporting efficiency improvements by 2012. effective on 4/10. 6. Increase competitiveness through greater regional integration and reduced trade costs IFC finds a private operator to Private operator (Bollere- Source: CASCR manage two new quays to be SMTC) contracted in 2009 to built 54%by Millennium operate two new wharfs and Challenge Account (MCA). improved port management system. IFC work was Annexes CASCR Review 16 Independent Evaluation Group CAS 09-12: Pillar 1 Actual Results Comments Strengthening Competitiveness and (as of current month year) Accelerating Private Sector-led Growth important in bringing operator. Reduce in cargo dwell time in Most recent data on cargo Source: CASCR the port of Cotonou from 15 to dwell time is that dwell time in 12 days by 2012. the port is 19 days. Reduce transport and A one stop window to handle Source: CASCR facilitation bottlenecks. port transactions has been put in place (Guichet Unique pour le Commerce Extérieur).  Import verification program was implemented including the installation of scanners and a GPS truck tracking system, though this was reversed in early 2012  An electronic truck management system was implemented (With MCC assistance)  A single entry point for trucks was established  Port security and surveillance system was implemented  Plan to improve port management procedures including installation of computerized systems (underway). Improve access to regional Benin is increasingly Source: CASCR energy through WAPP (West participating in the regional Africa Power Pool). power pool, which should bring down costs and improve reliability. Annual imports by Compagnie Electrique du Benin from WAPP have increased by 54% from 2006 to 2010. The West African Gas Pipeline was completed in 2011 and compressed gas is available at CEB’s premises. Annexes CASCR Review 17 Independent Evaluation Group CAS 09-12: Pillar 2 Actual Results Comments Improving Access to Basic Services (as of current month year) Major 1. Improve environmental and urban sanitation improvements Outcome Increase people with access to paved 787,000 as of April 2011. Source: CASCR Measures roads in Cotonou, Porto-Novo, Parakou Abomey-Calavi, Lokossa and Kandi from 483 000 in 2006 to 755 000 in 2011. Reduce the access-gap to basic social CASCR recognizes that the Source: CASCR services between poorest and average indicator was not monitored. communities by 50% in 2011. Improve management procedures & Budget allocation for priority Source: CASCR quality expenditures of pilot cities expenditures increased in key (Cotonou, Porto-Novo, Parakou Abomey- cities (% of total): Cotonou, Calavi, Lokossa and Kandi) during the Porto Novo, Parakou, A- CAS period. Calavi, Lakoosa and Lakoosa. Increase the use of waste-water 34% as of 2008 (latest data Source: CASCR management system in urban/ peri-urban available) areas from 33% in 2004 to 50% in 2012. 2. Improve access to safe and sustainable drinking water and sanitation service Increase access to safe water for the Improved water source in Source: WDI rural population from 44% in 2006 to 60% rural areas (% of rural in 2012. population with access) WDI data differs from the data Increased from 64% in 2006 presented in the CASCR to 68 in 2010. At least 50% of piped water systems No data provided in the Source: CASCR managed by domestic private sector CASCR operations in 2012 92% of the water systems functioning by 90.4% as of 2010 Source: CASCR 2012 compared to 87% in 2007. 3. Improve quality education services to better respond to development needs Increase the completion rate of primary Estimate for 2011 are: - Source: CASCR education from 66% in 2006/07 to 80% in Completion rate of primary 2012 (for girls: from 54% in 2005/2006 to education: 66% WDI has only data until 2009. 72% in 2012). -Completion rate of primary education for girls: 59% Make operational the instruments to pilot -Delay in implementation. Source: CASCR the higher education and vocational -Information /orientation training systems: system for students exists but The recommendations of the higher Information and orientation system for is not fully operational education ESW to be completed in students; budget programming / contract- because it has not been 2013 should enable preparation of an based financing; university management implemented at the action plan to address budget, system. regional/local level. programming financing and -A document has been management issues. prepared to inform students of fields available in higher education a few weeks before the beginning of each academic year. -For other actions, significant improvement has not been achieved. New regulatory framework for private In higher education, National Source: CASCR sector investment in education in place. council (Conseil Consultatif National de l’Enseignement Supérieur) established to control the quality of private education. Decree passed to define degree requirements, but is not yet operational because regulations are not ready. 4. Increase access to health and nutrition services and treatment for HIV/MDS and Malaria Increased availability of health services Birth medical assistance Source: DHS 2006 and DHS 2011 for pregnant women: increased from 78% in DHS Annexes CASCR Review 18 Independent Evaluation Group CAS 09-12: Pillar 2 Actual Results Comments Improving Access to Basic Services (as of current month year) % of facilities with basic obstetrical and 2006 to 84% in DHS 2011. neonatal services from 23% in 2006 to 90% in 2012. Improved nutrition services: % of From 23% in DHS 2006 to Source: DHS 2006 and DHS 2011 children with diarrhea get oral re- 50% in DHS 2011 hydration therapy from 23% in 2006 to 36% in 2012 Number of people with advanced HIV For adults: From 9,765 in Source: UNGASS Report for 2010 infection receiving ARV combination 2007 to 16,450 in 2010. therapy increases from 0 in 2007 to 3,300 adults and 300 children in 2012 in the For children: From 238 in whole country. 2007 to 1,635 in 2010. By 2012, at least 60% of children < 5 26.5% in 2011. Source: DHS 2011 years with fever are treated adequately within 24 hours from onset of symptoms. By 2012, at least 60% of children under 5 Children: 71% in 2011. Malaria Indicator Survey 2010 and DHS years and pregnant women sleep under Pregnant women: 59.7% in 2011 an ITN/LLIN 2010. By 2012, at least 60% of pregnant 78.1% in 2011. Source: DHS 2011 women receive a prophylactic treatment during the pregnancy Annexes CASCR Review 19 Independent Evaluation Group CAS 09-12: Pillar 3 Actual Results Comments Promoting better governance and strengthening (as of current month year) institutional capacities Major 1. Improve public administration, transparency and anti-corruption Outcome Full implementation of results-based Program-based budgets are Source: CASCR Measures budgeting (GBAR) by 2011. prepared at the ministerial/sectoral level but these budgets are not yet consolidated at the national level. Implementation of the Government’s PFM Detailed PMF Action Plan Source: CASCR action plan prepared by the authorities to completed in 2009. Key address the weaknesses and key reforms being introduced are: challenges identified by the 2007 PEFA - Results-based budgeting diagnostic by 2012. applied at the ministry level. - Organic Law of Finance revised and consistent with WAEMU directive approved by the National Assembly. - Broad lines of budget presented mid-year and approved in 2010. (RA10) - Satellite connection between central agencies and decentralized units being established to enable reporting of fiscal (SIGFIP) and accounting (ASTER) data. - MTEF approach used by sector ministries. Developing and implementing country -Public Sector Code of Ethics Source: CASCR action plans to reduce corruption and to adopted in 2009 (RA 09). improve institutional capacity in Training in Cotonou and Porto accounting and auditing. Novo; planned for the rest of the country. -Law on Corruption and other Economic and Financial Crimes approved by National Assembly in 2011 (RA 10) -Institutional capacity in accounting. All members of the Order of Accountants were trained in public financial management practices and government audits. Auditors are auditing public enterprises but Government has not authorized audit of ministries and other central government departments. 2. Strengthen budget accounting, implementation and control Financial reports, measures to accelerate Same that the second Source: CASCR budget execution, and internal control outcome indicator in the first mechanisms under implementation objective: operational by 2010 - Results-based budgeting applied at the ministry level. - Organic Law of Finance revised and consistent with WAEMU directive approved by the National Assembly. - Broad lines of budget Annexes CASCR Review 20 Independent Evaluation Group CAS 09-12: Pillar 3 Actual Results Comments Promoting better governance and strengthening (as of current month year) institutional capacities presented mid-year and approved in 2010. (RA10) - Satellite connection between central agencies and decentralized units being established to enable reporting of fiscal (SIGFIP) and accounting (ASTER) data. - MTEF approach used by sector ministries. Procurement code adopted and Procurement code adopted in Source: CASCR operational by 2010. 2009. Six of the seven implementing decrees have been approved. Approved decrees include those determining responsibilities of the agencies charged with procurement; establishing contracting thresholds and the code of ethics in public procurement. Remaining decree, setting maximum times for government approvals, expected to be passed before the end of 2011 is still delayed to 2013. 3. Support decentralization through community development By 2012, the CDD approach is part of a By 2011 some 20% of public Source: CASCR decentralization process supported by a capital expenditures on basic The new Decentralized Community SWAP. services implemented by Driven Services Project will use the communities. SWAP approach. By 2012, the flow of funds to local Process of transfer begun. In Source: CASCR governments & communes uses the 2010 FCFA 4.5 billion were country financial system. transferred to communes FADeC for health primary education, water and energy (RD 10). Proposed project will transition to use FADeC once modern accounting and auditing systems can be put in place for FADec. By 2012, 80% of communities have By 2009 all 1518 Source: CASCR received grassroots management training communities had received (GMT). GMT training (of a total of some 3500 communities nation-wide. Annexes CASCR Review 21 Independent Evaluation Group Annex Table 2: Benin Planned and Actual Lending, FY09-FY12 Project Proposed Approval Proposed Approved Outcome Project name ID FY FY Amount Amount rating Programmed projects P107498 Fifth Poverty Reduction Support Grant-PRSC 5 2009 2009 30 30 LIR: MS P110075 Increased Access to Modern Energy 2009 2009 45 70 LIR: S P108583 Regional: 3A W/C Africa Air Transport Phase II-B 2009 2009 3 3* LIR: MS P117287 BJ- Poverty Reduction Support Grant - PRSC 6 2010 2010 20 30 LIR: MS P115886 Agricultural Productivity and Diversification 2010 2011 20 31 LIR: MS P113370 eBenin Project 2010 2010 10 15 LIR: MS P113202 Health System Performance 2010 2010 15 22.8 LIR: S Regional: Abidjan-Lagos Trade and Transport Facilitation P096407 Project (ALTTFP) 2010 2010 9 14* LIR: MS P122803 BJ- Poverty Reduction Support Grant - PRSG 7 2011 2012 20 30 LIR: S P113145 Benin Emergency Urban Env. Project 2011 2011 30 50 LIR: S P121104 Benin Community Development Project Additional Financing 2011 2011 30 12 LIR: S BJ-PRSC 8-Eighth Poverty Reduction Support Credit 2012 Pipeline 20 Energy Services 2012 Dropped 40 Regional Operations 2012 Dropped 20 Total Programmed projects CAS FY09-FY12 312.0 307.8 Non-programmed projects P117764 Decentralized Community Driven Services Project 2012 46 LIR: S P122419 Support to Protected Areas Management 2011 5 LIR: S Regional: West Africa Agricultural Productivity Program APL P122065 (WAAPP-1C) 2011 5* LIR: S Benin - Health System Performance Project - Additional P129024 Financing 2012 10 LIR: S P125114 BJ-PRSC 6 Supplemental Credit 2011 22 LIR: MS P112456 Regional: Regional Trade Facilitation II 2011 2.5* LIR: S Total non-programmed projects 90.5 Total projects FY09-FY12 398.3 Project Approval Closing Approved Project name ID FY FY Amount Ongoing projects Competitiveness and Integrated Growth Opportunity Project P104881 (CIGOP) 2008 Active 25 LIR: MS P096056 Second Multisectoral HIV/AIDS Control Project 2007 2012 35 LIR: S P082725 Second Decentralized City Management 2006 2012 35 LIR: S P094917 WAPP APL 1 (2nd Phase - Coastal Transmission Backbone) 2006 Active 60 LIR: MU P081484 BN-National Community Driven Development Project 2005 2012 50 LIR: S P079633 Electricity Services Delivery Project 2005 Active 45 LIR: S P096482 Malaria Control Booster Program 2006 2011 31 IEG: S Additional Financing for the Benin Energy Services Delivery P111019 Project 2008 Active 7 LIR: S Second Decentralized City Management Project - Additional P109209 Financing 2008 2012 40 LIR: S Total ongoing projects FY09-FY12 328.0 Source: Benin CAS and WB Business Warehouse Table 2a.1, 2a.4 and 2a.7 as of 08/06/2012 *LIR: Latest internal rating. MU: Moderately Unsatisfactory. MS: Moderately Satisfactory. S: Satisfactory. HS: Highly Satisfactory. * Amount of the regional project accorded to Benin Annexes CASCR Review 22 Independent Evaluation Group Annex Table 3: Grants and Trust Funds Active in FY09-FY12 (in US$ million) Approval Closing Approved Project ID Project name TF ID FY FY Amount Support for the Implementation of Law Against Female P096193 TF 55876 2006 2009 0.45 Genital Mutilation/Cutting Building a Results-Based M&E System for a P095882 TF 55461 2006 2009 0.45 Decentralized MAEP Administration P069896 Forests and Adjacent Lands Management Project TF 57165 2007 Active 6.00 P110576 Education For All-Fast Track Initiative Program TF 91947 2008 2012 76.10 P104473 Strengthening Capacity of the Accountancy Profession TF 90665 2008 2011 0.37 P113374 Benin: Emergency Food Security Support Project TF 93250 2009 2011 9.00 Community-Based Coastal and Marine Biodiversity P071579 TF 91739 2009 Active 4.30 Management Project P113202 Health System Performance TF 96654 2010 Active 11.00 Emergency Support to Enhance Food Security P120052 TF 96893 2010 2012 8.41 (ESEFS) P110075 Increased Access to Modern Energy TF 94664 2010 Active 1.82 P115886 Agricultural Productivity and Diversification TF 99692 2011 Active 15.00 P115963 Support to Protected Areas Management TF 99643 2011 Active 1.90 P124191 Benin Community Nutrition TF 97920 2011 Active 2.80 P119962 BEIA-Promotion of Social Biofuels in Benin TF 96657 2011 Active 0.09 P122775 Implementation of AML/CFT for Benin TF 98975 2011 Active 0.43 Institutional Strengthening of the Ministry of P124077 TF 99838 2012 Active 0.48 Development P110075 Increased Access to Modern Energy TF 99823 2012 Active 2.00 Total 140.59 Source: Benin CAS, CASPR and WB Business Warehouse Table 2a.1, 2a.4 and 2a.7 as of 08/22/2012 Annexes CASCR Review 23 Independent Evaluation Group Annex Table 4: Planned and Actual Analytical and Advisory Work, FY09-FY12 Proposed Delivered to Output AAA ID Economic and Sector Work FY Client FY Type Planned (CAS FY09-FY12) P109145 Benin Health Country Status Report (ESW) 2009 2009 Report P115822 Benin Agricultural Diversification (ESW) 2009 2011 Report P113144 Country Environmental Assessment (ESW) 2009 2010 Report P112771 BENIN Accounting and Auditing ROSC (ESW) 2009 2009 Report Higher Education and Employment/Skill Needs 2010 Postponed to FY13 P118480 BJ-Public Expenditure Review (ESW) 2010 2011 Report P118054 Poverty Assessment (ESW) 2010 2013 Report Replaced by Doing Business in Investment Climate Assessment 2011 Benin 2011 FY10 (Report ID: 58333 ) Replaced by the IDF Implementation of AML/CFT for National Governance and Anti-corruption Strategy 2011 Benin (P122775). Not yet completed. Energy Sector Review 2012 Postponed to FY13 Combined with Public Expenditure Decentralization and Local Development 2012 Review (FY11) Non-planned Stimulating the rural economy: investment climate for non- P094122 farm entreprises in Benin (ESW) 2008 Report WB/IMF Debt Sustainability Analysis (Report ID 51780) 2009 Report Benin Stepping Up Growth (Report ID 51974) 2010 Report P122059 DeMPA Assessment - Benin 2011 Report P127439 Customs Assessment Trade Toolkit Planned for FY13 Policy Note P119788 Tertiary Education Capacity and Training Assessment Planned for FY13 Report Proposed Delivered to AAA ID Technical Assistance Output Type FY Client FY Planned (CAS FY09-FY12) NA Non-planned Client PRTSR-Benin-Review of Poverty Reduction and Transport Document P111231 Strategies 2009 Review GFDRR: Benin Flood Recovery - Post-Disaster Needs "How-To" P124825 Assessment 2011 Guidance "How-To" P117626 Health Systems for Outcomes - Benin 2011 Guidance Civil Service Reform TA Undertaken under PRSC-7 Source: Benin CAS, CASPR and WB Business Warehouse Table 2a.1, 2a.4 and 2a.7 as of 08/22/2012 Annexes CASCR Review 24 Independent Evaluation Group Annex Table 5: IEG Project Ratings for Benin, Exit FY09-FY12 Total IEG Risk to Exit FY Proj ID Project name Evaluated IEG Outcome Development (US$M) Outcome* 2009 P072503 Cotton Sector Reform Project 18.0 Moderately Unsatisfactory Significant 2011 P096482 Malaria Cntrl Booster Prgm SIL (FY06) 33.1 Satisfactory Moderate Source: WB Business Warehouse Table 4a.6 as of as of 08/20/2012. * With IEG new methodology for evaluating projects, institutional development impact and sustainability are no longer rated separately. Annex Table 6. IEG Project Ratings for Benin and Comparators, Exit FY09-FY12 RDO% Total Evaluated Total Evaluated Outcome % Outcome % RDO% Moderate Region Moderate or ($M) (No) Sat ($) Sat (No) or Lower Sat (No)* Lower Sat ($)* Benin 51.1 2 64.8 50.0 64.8 50.0 Africa 7,015.2 138 74.8 63.5 36.0 36.5 World 41,871.8 543 85.4 71.8 68.2 54.7 Source: WB Business Warehouse Table 4a.5 as of as of 07/3/2012. * Risk to Development Outcome (RDO). With IEG new methodology for evaluating projects, institutional development impact and sustainability are no longer rated separately. Annexes CASCR Review 25 Independent Evaluation Group Annex Table 7. Portfolio Status for Benin and Comparators, FY09-FY12 Fiscal year 2009 2010 2011 2012 Benin # Proj 11 15 18 14 # Proj At Risk 4 5 4 2 % Proj At Risk Net Comm Amt 435.2 511.4 596.2 346.3 Comm At Risk 121.4 147.4 184.4 35.3 % Commit at Risk 27.9 28.8 30.9 10.2 Africa # Proj 440 454 470 452 # Proj At Risk 131 137 117 108 % Proj At Risk Net Comm Amt 28,177.8 34,188.5 37,466.4 38,962.9 Comm At Risk 6,950.5 9,494.2 7,949.7 6,299.8 % Commit at Risk 24.7 27.8 21.2 16.2 World # Proj 1,552 1,590 1,595 1,500 # Proj At Risk 344 366 337 333 % Proj At Risk Net Comm Amt 131,076.4 158,287.4 168,248.7 168,407.7 Comm At Risk 19,929.9 28,186.1 22,978.5 23,723.1 % Commit at Risk 15.2 17.8 13.7 14.1 Source: WB Business Warehouse Table 3a.4 as of 08/22/2012. Annex Table 8. IDA Net Disbursements and Charges Summary Report for Benin (in US$ million) FY Disb. Amt. Repay Amt. Net Amt. Charges Fees Net Transfer 2009 80.1 0.0 80.1 0.0 1.9 78.2 2010 57.4 0.2 57.2 0.0 2.1 78.2 2011 87.3 0.4 87.0 0.0 2.7 78.2 2012  92.3 0.8 91.5 0.0 3.0 78.2 Total (FY09-FY12) 317.1 1.4 315.8 0.0 9.8 78.2 Source: WB Loan Kiosk, Net Disbursement and Charges Report as of 08/20/2012 Annexes CASCR Review 26 Independent Evaluation Group Annex Table 9. Total Net Disbursements of Official Development Assistance and Official Aid, 2008- 2010 (in US$ million) Development Partners 2008 2009 2010 2008-2010 Bilaterals Australia .. 0.16 0.38 0.54  Austria 0.02 0.01 0.09 0.12  Belgium 21.92 25.58 28.97 76.47  Canada 6.97 7.04 6.37 20.38  Denmark 48.15 51.36 39.11 138.62  Finland 0.17 0.45 0.69 1.31  France 66.41 50.39 48.79 165.59  Germany 46.61 43.12 34.67 124.40  Greece 0.10 .. .. 0.10  Ireland 0.06 0.04 0.12 0.22  Italy 1.14 1.79 2.11 5.04  Japan 27.21 25.84 29.13 82.18  Korea 2.44 0.02 0.15 2.61  Luxembourg 0.86 1.16 1.96 3.98  Netherlands 35.33 41.97 31.26 108.56  Norway .. .. 0.05 0.05  Spain 2.01 3.45 1.09 6.55  Sweden 0.47 0.88 1.88 3.23  Switzerland 10.58 13.47 13.25 37.30  United Kingdom .. 0.03 .. 0.03  United States 34.56 58.90 98.93 192.39  DAC Countries, Total 305.01 325.66 339.00 969.67 Czech Republic 0.04 .. 0.02 0.06  Israel 0.05 0.05 0.04 0.14  Kuwait (KFAED) 3.26 3.20 0.95 7.41  Poland 0.01 .. .. 0.01  Turkey 0.97 .. 0.03 1.00  United Arab Emirates 0.10 0.18 0.17 0.45  Non-DAC Countries, Total 4.43 3.43 1.21 9.07 Multilaterals 0.00  AfDF 31.55 46.13 46.51 124.19  BADEA 8.03 4.36 3.52 15.91  EU Institutions 127.62 146.64 122.75 397.01  GAVI 4.47 4.16 5.15 13.78  GEF 5.62 5.19 2.90 13.71  Global Fund 13.10 10.58 43.54 67.22  IAEA 0.27 0.30 0.29 0.86  IDA 93.39 90.34 85.31 269.04  IFAD 0.69 1.57 1.65 3.91  IMF (Concessional Trust Funds) 18.85 15.73 16.20 50.78  Isl.Dev Bank 5.51 8.90 6.02 20.43  Nordic Dev.Fund 5.51 1.44 -0.14 6.81  OFID -0.59 1.56 -0.30 0.67  UNAIDS 0.47 0.49 0.47 1.43  UNDP 5.84 5.85 5.00 16.69  UNFPA 2.69 2.08 2.00 6.77  UNHCR 0.74 0.61 0.37 1.72  UNICEF 5.41 4.92 6.39 16.72  UNTA 0.84 .. .. 0.84  WFP 2.03 2.12 1.27 5.42  Multilateral, Total 332.04 352.97 348.90 1033.91 All Development Partners Total 641.48 682.06 689.11 2012.65 Source: OECD DAC Online database, Table 2a. Destination of Official Development Assistance and Official Aid - Disbursements, as of 08/20/2012. Annexes CASCR Review 27 Independent Evaluation Group Annex Table 10. Economic and Social Indicators for Benin and Comparators, 2008- 2011 Benin Benin Sub-Saharan Africa World Series Name 2008 2009 2010 2011 Average 2008-2011 Growth and Inflation GDP growth (annual %) 5.1 3.8 3.0 3.1 4.0 4.1 1.5 GDP per capita growth (annual %) 2.0 0.8 0.1 0.3 1.0 1.5 0.4 GNI per capita, PPP (current international $) 1,531.4 1,560.6 1,580.3 1,627.8 1,557.4 2,238.8 10,980.8 GNI, Atlas method (millions current US$) 6,063.3 6,729.4 6,918.4 7,119.6 6,570.4 993,936.3 61,583,625.0 Inflation, consumer prices (annual %) 7.9 2.2 2.3 2.7 4.1 .. .. Composition of GDP (%) Agriculture, value added (% of GDP) .. .. .. .. .. 12.6 2.8 Industry, value added (% of GDP) .. .. .. .. .. 30.7 26.2 Services, etc., value added (% of GDP) .. .. .. .. .. 56.7 71.0 Gross fixed capital formation (% of GDP) 20.7 25.3 26.1 27.4 24.9 21.5 20.1 Gross domestic savings (% of GDP) 7.1 10.8 12.3 14.1 11.1 16.1 20.1 External Accounts Exports of goods and services (% of GDP) 15.2 14.0 14.3 14.9 14.6 32.3 27.6 Imports of goods and services (% of GDP) 28.8 28.5 28.0 28.2 28.4 35.5 27.9 Current account balance (% of GDP) -8.0 -9.9 .. .. -8.9 .. .. External debt, total (% of GNI) 13.7 16.2 18.4 .. 16.1 .. .. Total debt service (% of GNI) 0.9 0.6 0.6 .. 0.7 1.4 Total reserves in months of imports 6.2 6.4 .. 6.3 6.0 13.4 Fiscal Accounts /1 Revenue and Grants (% of GDP) 21.2 21.5 .. .. .. .. .. Total Expenditure (and net lending, % of GDP) 21.4 25.3 .. .. .. .. .. Overall Balance (% of GDP) -1.7 -4.1 .. .. .. .. .. Public Sector Gross Debt (% of GDP) 24.5 26.2 .. .. .. .. .. Social Indicators Health Life expectancy at birth, total (years) 54.8 55.2 55.6 .. 55.2 53.7 69.4 Immunization, DPT (% of children ages 12-23 months) 78.0 83.0 83.0 .. 81.3 74.5 84.4 Improved sanitation facilities (% of population with access) 12.0 13.0 13.0 .. 12.7 30.4 62.0 Improved water source (% of population with access) 73.0 74.0 75.0 .. 74.0 60.7 87.9 Mortality rate, infant (per 1,000 live births) 76.2 74.7 73.2 .. 74.7 78.3 42.0 Population Population, total (in million) 8.4 8.6 8.8 9.1 8.7 843.9 6,855.3 Population growth (annual %) 3.0 2.9 2.8 2.8 2.9 2.5 1.2 Urban population (% of total) .. .. 42.0 .. 42.0 36.9 50.3 Education School enrollment, preprimary (% gross) 13.3 14.1 18.2 .. 15.2 17.3 46.8 School enrollment, primary (% gross) 118.4 123.9 125.9 .. 122.7 99.4 106.2 School enrollment, secondary (% gross) .. .. .. .. .. 37.8 69.3 Source: WB World Development Indicators (08/20/2012) for all indicators excluding those noted. 1/ IMF Article IV Annexes CASCR Review 28 Independent Evaluation Group Annex Table 11: Millennium Development Goals 1990 1995 2000 2005 2010 Goal 1: Eradicate extreme poverty and hunger Employment to population ratio, 15+, total (%) 72 72 72 72 72 Employment to population ratio, ages 15-24, total (%) 66 64 60 57 57 GDP per person employed (constant 1990 PPP $) .. .. .. .. .. Income share held by lowest 20% .. .. .. 7 .. Malnutrition prevalence, weight for age (% of children under 5) .. 27 22 20 .. Poverty gap at $1.25 a day (PPP) (%) .. .. .. 16 .. Poverty headcount ratio at $1.25 a day (PPP) (% of population) .. .. .. 47 .. Vulnerable employment, total (% of total employment) .. .. .. 90 .. Goal 2: Achieve universal primary education Literacy rate, youth female (% of females ages 15-24) 27 .. 33 .. 43 Literacy rate, youth male (% of males ages 15-24) 55 .. 59 .. 65 Persistence to last grade of primary, total (% of cohort) .. .. 76 64 .. Primary completion rate, total (% of relevant age group) 19 31 40 54 63 Total enrollment, primary (% net) 41 60 .. 88 94 Goal 3: Promote gender equality and empower women Proportion of seats held by women in national parliaments (%) 3 7 6 7 11 Ratio of female to male primary enrollment (%) 52 57 66 76 87 Ratio of female to male secondary enrollment (%) .. .. 44 54 .. Ratio of female to male tertiary enrollment (%) 15 22 24 .. 38 Share of women employed in the nonagricultural sector (% of total nonagricultural 20. 24. .. .. .. employment) 7 3 Goal 4: Reduce child mortality Immunization, measles (% of children ages 12-23 months) 79 65 70 61 69 10 Mortality rate, infant (per 1,000 live births) 98 89 81 73 7 17 Mortality rate, under-5 (per 1,000 live births) 160 143 129 115 8 Goal 5: Improve maternal health Adolescent fertility rate (births per 1,000 women ages 15-19) .. 123 120 114 103 Births attended by skilled health staff (% of total) .. 60 66 75 .. Contraceptive prevalence (% of women ages 15-49) .. 16 19 17 .. 77 Maternal mortality ratio (modeled estimate, per 100,000 live births) 660 530 430 350 0 Pregnant women receiving prenatal care (%) .. 80 81 84 .. Unmet need for contraception (% of married women ages 15-49) .. 26 27 30 .. Goal 6: Combat HIV/AIDS, malaria, and other diseases Children with fever receiving antimalarial drugs (% of children under age 5 with fever) .. .. 60 54 .. Condom use, population ages 15-24, female (% of females ages 15-24) .. 9 9 10 .. Condom use, population ages 15-24, male (% of males ages 15-24) .. .. 32 39 .. Incidence of tuberculosis (per 100,000 people) 77 80 85 89 94 Prevalence of HIV, female (% ages 15-24) .. .. .. .. 0.7 Prevalence of HIV, male (% ages 15-24) .. .. .. .. 0.3 Prevalence of HIV, total (% of population ages 15-49) 0.2 1.1 1.4 1.3 1.2 Tuberculosis case detection rate (%, all forms) 57 53 49 48 45 Goal 7: Ensure environmental sustainability CO2 emissions (kg per PPP $ of GDP) .. .. .. .. .. CO2 emissions (metric tons per capita) .. .. .. .. .. 52. 45. Forest area (% of land area) .. 43.5 41.2 1 8 Improved sanitation facilities (% of population with access) 5 7 9 11 13 Improved water source (% of population with access) 57 62 66 70 75 Marine protected areas (% of territorial waters) .. .. .. .. .. Net ODA received per capita (current US$) 56 50 37 45 78 Goal 8: Develop a global partnership for development Debt service (PPG and IMF only, % of exports, excluding workers' remittances) 9 7 14 7 4 Internet users (per 100 people) 0.0 0.0 0.2 1.3 3.1 Mobile cellular subscriptions (per 100 people) 0 0 1 8 80 Telephone lines (per 100 people) 0 0 1 1 2 Fertility rate, total (births per woman) 7 6 6 6 5 Other 36 GNI per capita, Atlas method (current US$) 340 370 570 780 0 Annexes CASCR Review 29 Independent Evaluation Group GNI, Atlas method (current US$) (billions) 1.7 1.9 2.4 4.3 6.9 14. 18. Gross capital formation (% of GDP) 19.6 19.6 26.1 2 9 Life expectancy at birth, total (years) 49 51 53 54 56 Literacy rate, adult total (% of people ages 15 and above) 27 .. 35 .. 42 Population, total (millions) 4.7 5.7 6.5 7.6 8.8 40. 43. Trade (% of GDP) 53.2 39.6 42.3 6 3 Source: World Development Indicators database as of 08/20/2012