Document of The World Bank FOR OFFICIAL USE ONLY Report No. 59674-CF THE INTERNATIONAL DEVELOPMENT ASSOCIATION THE INTERNATIONAL FINANCE CORPORATION AND THE MULTILATERAL INVESTMENT GUARANTEE AGENCY COUNTRY PARTNERSHIP STRATEGY PROGRESS REPORT FOR THE CENTRAL AFRICAN REPUBLIC MAY 26TH, 2011 Central Africa Department - Country Management Unit (AFCC1) Africa Region The International Finance Corporation Africa Department The Multilateral Investment Guarantee Agency 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. DATE OF CURRENT COUNTRY PARTNERSHIP STRATEGY JULY 31, 2009 CURRENCY EQUIVALENTS (Exchange Rate Effective February 16, 2011) Currency Unit = CFA Franc US$1.00 = 487.34 GOVERNMENT FISCAL YEAR January 1–December 31 ABBREVIATIONS AND ACRONYMS AAA Analytical and Advisory Activities ADF African Development Fund AFD French Agency for Development (Agence Française de Développement) AfDB African Development Bank AICD African Infrastructure Country Diagnostics BEAC Bank of Central African States (Banque des Etats d’Afrique Centrale) CAADP Comprehensive African Agriculture Development Program CAB Central African Backbone project CAR Central African Republic CASA Conflict-Affected States in Africa CASPR CAS Progress Report CEMAC Monetary and Economic Community of Central Africa (Communauté Economique et Monétaire des Etats d’Afrique Centrale) CFA African Financial Community (Communauté Financière Africaine) CPJP Convention des patriotes pour la justice et la paix CPS Country Partnership Strategy CRN Country Re-Engagement Note CRW IDA’s Crisis Response Window DDR Disarmament, Demobilization and Reintegration Program DPO Development Policy Operation ECF Extended Credit Facility EFA/FTI Education for All/Fast Track Initiative EITI Extractive Industries Transparency Initiative EMGRG Economic Management and Governance Reform Grant ENERCA National Electric Utility EU European Union FCFA CFA Franc FLEGT Forest Law Enforcement and Governance Trade support process GDP` Gross Domestic Product GoCAR Government of CAR GFRP Global Food Crisis Response Program GSM Global System for Mobile Communications (Groupe Spécial Mobile) HIPC Highly Indebted Poor Countries Initiative IDF Institutional Development Fund IFC International Finance Corporation IMF International Monetary Fund ITBN Insecticide-Treated Bed Nets JISN Joint Interim Strategy Note JSDF Japan Social Development Fund LICUS Low Income Countries Under Stress initiative MDG Millennium Development Goals MDRI Multi-lateral Debt Relief Initiative MDTF Multi-Donor Trust Fund MIGA Multilateral Guarantee Agency NGO Non-Governmental Organization ODA Official Development Assistance PARCPE Economic Planning Capacities Rehabilitation Support Project PBC United Nations Peace Building Commission PCDAGV Community Project for the Development and Support of Vulnerable Groups PEFA Public Expenditure Financial Assessment PFM Public Financial Management PPP Public Private Partnership PRGF Poverty Reduction and Growth Facility PRSP Poverty Reduction Strategy Paper SME Small and Medium Enterprises SPF State and Peace-building Fund TDRP Transitional Demobilization and Reintegration Program TTL Task Team Leader UA Unit of Account UN United Nations VCT Voluntary Counseling and Testing VPA Voluntary Partnership Agreement WB World Bank WBG World Bank Group WFP World Food Program IDA IFC MIGA Vice President Obiageli Katryn Ezekwesili Thierry Tanoh Izumi Kobayashi Country Director Gregor Binkert - Country Manager Midou Ibrahima Justin K. Kouakou Task Team Leader Louise Davidson - Conor Healy   COUNTRY PARTNERSHIP STRATEGY PROGRESS REPORT FOR THE CENTRAL AFRICAN REPUBLIC 1  OVERVIEW ......................................................................................................................................... 1  2  COUNTRY CONTEXT........................................................................................................................ 2  3  PROGRESS TOWARD CAS OUTCOMES ........................................................................................ 3  A.  Strategic Theme 1: Consolidation of Economic Governance and Institutional Capacity ................. 3  B.  Strategic Theme 2: Rehabilitation and Development of Basic Socio-Economic Infrastructure ....... 5  4  CPS RELEVANCE, IMPLEMENTATION AND ADJUSTMENTS .................................................. 7  A.  CPS relevance ................................................................................................................................... 7  B.  Implementation and adjustments ...................................................................................................... 8  5  RISKS ................................................................................................................................................. 10  TABLES Table 1: Strategic Theme 1 - Deliverables Summary ................................................................................... 4  Table 2: Strategic Theme 2 - Deliverables Summary ................................................................................... 6  Table 3: FY11 and FY12 Lending and AAA plan ........................................................................................ 9  FIGURES Figure 1: Portfolio Composition as of December 31, 2010 .......................................................................... 2  ANNEXES Annex 1: Results Matrix for CAR CPS (FY09-FY12) ............................................................................... 12  Annex 2: Updated and Revised CAS Outcome Indicators ......................................................................... 23  Annex 3: IDA Operations Portfolio (Excluding Regional Portfolio) ......................................................... 24  Annex 4: Analytical and Advisory Activities ............................................................................................. 25  Annex 5: Selected Indicators of Portfolio Performance and Management ................................................. 26  Annex 6: IFC Program ................................................................................................................................ 27  Annex 7: Country at a Glance Central African Republic ........................................................................... 28  Map IBRD: 33384   COUNTRY PARTNERSHIP STRATEGY PROGRESS REPORT FOR THE CENTRAL AFRICAN REPUBLIC 1 OVERVIEW 1. This Country Partnership Strategy Progress Report (CASPR) assesses the implementation of the World Bank’s FY09-12 Country Partnership Strategy (CPS) for the Central African Republic (CAR). The CPS was prepared jointly by the World Bank Group (WBG) and the African Development Bank (AfDB) and discussed by the Board on September 3rd, 2009 (Report No. 49583-CF). The CPS builds upon the Country Re-Engagement Note of mid-2004 which marked the re- establishment of the WBG’s relationship with CAR, following a period of suspension due to CAR’s extended instability and accumulation of arrears, and the subsequent Joint AfDB/WBG Interim Strategy (JISN). 1 Given its emphasis on conflict, security and development, the current CPS also represents many of the key elements that are emerging from the Bank’s new corporate framework for Fragile States, including focusing on partnerships and responding flexibly to emerging needs while also helping to develop institutional capacity to ensure sustainability. 2. In line with the new Africa Regional Strategy, the CPS has emphasized partnerships to help meet huge unmet needs regarding reconstruction and development. While the total volume of aid has increased since 2006, CAR still remains a donor orphan (its ODA per capita is US$41 compared to US$91 for Sierra Leone, US$104 for Cameroon and US$186 for Liberia). Significant collaborative efforts have been undertaken with partners such as the AfDB, the European Union (EU), the United Nations (UN) and the French Development Agency (AFD) to advance support at all levels. Examples include (i) the preparation of the CPS with the AfDB, (ii) the establishment of a Memorandum of Understanding (MOU) between the Government, the Bank, the EU and the AfDB to provide budget support, and (iii) donor coordination at the sector level to facilitate implementation including in transport, energy, community development, and urban development. The new IFC presence in the Country Office has resulted in an effective joint Bank/IFC collaboration with respect to improving the investment climate. Finally, a high level side event of the MDG summit in September 2010 also enabled the Government of CAR, the United Nations, the European Union, and the World Bank to focus international attention towards the peace building and development needs in CAR. This meeting laid the foundation for a donor Roundtable that is planned for June 2011. 3. Frontloading resources in the early years of the CPS and leveraging the relatively small IDA 15 allocations to access alternative funding sources have spurred portfolio growth. As reflected within the World Development Report 2011 (WDR), the CPS balances the short-term need for results with longer-term investments to help institutions emerge. As a consequence, the World Bank’s commitments to CAR have grown rapidly from re-engagement in 2006 at around US$17 million to US$230 million in 2010 (see Figure 1 below). This amount is significantly higher than what was forecast in the CPS, and is all the more striking given CAR’s total IDA 15 allocation was $33 million. To respond quickly and flexibly to CAR’s emerging challenges, varied funding sources were tapped, including regional IDA, various World Bank-administered trust and vertical funds, and from exceptional IDA including the Crisis Response Window (CRW). This strategy has allowed for the initiation of almost all of the planned lending operations and knowledge activities, with the exception of one health project scheduled for FY12. All IDA financed operations were processed under OP 8.0 (Rapid response to Crises and Emergencies) in order to quickly support the Government’s response to the food, fuel and financial crises. 1 Joint Interim Strategy Note (JISN) for FY2007-2008 (Report No.37974-CF). 1 Figure 1: Portfolio Composition as of December 31, 2010 2 COUNTRY CONTEXT 4. The CAR authorities continue to focus on efforts to strengthen political stability and consolidate the peace process throughout the country. An Inclusive Political Dialogue (IPD) organized in December 2008 in Bangui resulted in the adoption of a road map for full reconciliation. Its main recommendations included: (i) formation of a coalition government, including members of the opposition; (ii) implementation of a Disarmament, Demobilization and Rehabilitation (DDR) program; and (iii) setting up of an independent electoral commission to organize general elections in 2010. After three postponements, the presidential and legislative elections were held on January 23rd 2011 and results were certified by the Constitutional Court on February 12th, with the incumbent president declared the victor with 64 percent of the vote. A second round of legislative elections took place on March 27th 2011. Success going forward will depend upon effective internal political dialogue and an inclusive Government that represents the citizens’ interests. 5. The security situation outside the capital remains tenuous. The Government faces continued insecurity outside of its capital, reflecting weak control over their territory and disagreements with rebel factions. The main areas of concern are the extreme north-east, where the CAR rebel group, Convention des patriotes pour la justice et la paix (CPJP), continues to attack the army, and the extreme south-east, where the Ugandan rebel group, the Lord's Resistance Army (LRA), continues to terrorize local communities. The withdrawal of the UN mission in Chad and the CAR, MINURCAT, effective since mid-November 2010, has further weakened the presence of security forces in remote areas of the country. The DDR process has also been slower than expected, further undermining the consolidation of peace. 6. Since the end of conflict in 2003, economic growth has remained at an average of 2.5 percent per annum, and poverty remains pervasive. CAR still has one of the highest poverty rates in Sub-Saharan Africa2, and is unlikely to meet any of the MDG targets3. In addition to the security 2 The 2009 UNDP Human Development Report ranks CAR near the bottom of its Human Development Index (179th out of 182 countries). The overall poverty headcount ratio is 62 percent, with large socioeconomic and regional variations. 3 The proportion of Central Africans living on $1 a day has decreased slightly to 62% but it needs to be half of that in order to reach the 2015 goal, and the prevalence of underweight children under-five has increased since 2003 to nearly 30 percent, a rate nearly three times the MDG target. 2 situation, low public investment in physical and social infrastructure and an unfriendly business climate remain major impediments to sustained growth. In 2008, CAR was also hit by a series of shocks, including the breakdown of the major hydro-power plant, followed by the worldwide price hike for food and fuel, and the global financial crisis. These events led to an overall reduction of real GDP of 1.5 percentage points compared to the period 2006-2008. Nevertheless, preliminary estimates show a recovery in 2010 with real GDP growth of 3.3 percent and an inflation rate at 1.8 percent (down from the 9.3 percent observed in 2008). 7. Despite this difficult context, CAR has remained committed to implementing its reform program and has made good progress in stabilizing the economy and establishing a consistent record of satisfactory macroeconomic performance. In June 2009 CAR reached the completion point under the enhanced Highly Indebted Poor Countries Initiative (HIPC) which, together with the Multilateral Debt Relief Initiative (MDRI), provided significant debt relief (59 percent of GDP)4. Achievement of the HIPC completion point in June 2009 was based on consistent and sustained governance efforts: CAR was the first country to move from decision point to completion point in less than two years, meeting twenty-one completion point triggers across eight sectors. The Bank’s Development Policy loans and technical assistance projects played an important role by: (i) providing space in the government budget for priority sector spending; (ii) strengthening overall public financial management and effectiveness of public spending; (iii) supporting transparency and accountability; and (iv) promoting institutional development, including enabling mechanisms for improving government efficiency. In 2006 CAR also embarked upon a three year program with the IMF. This was completed in September 2010 with all the reviews concluded – a first in its history with the Fund. 3 PROGRESS TOWARD CAS OUTCOMES 8. The CPS is showing results. A November 2010 Country Program and Portfolio Review assessed that four out of the eight CPS outcomes are on track, and are expected to be met by the end of the CPS period. The following section provides a broad account of progress to date, focused on results derived from the roll-out of the planned activities in each of the CPS’ strategic themes. A. Strategic Theme 1: Consolidation of Economic Governance and Institutional Capacity 9. Considerable strides have been made in terms of improving Public Finance Management (PFM) (Outcome 1). As a result of efforts undertaken through the Bank’s Economic Management and Reform Grant (EMGRG III), the fourth in a series of Development Policy Operations (DPOs) as well as the AfDB’s Economic Reform Support Program, recent reforms include the review by the Court of Accounts of the use of the 2008 budget; the establishment of a single treasury account (down from 73 accounts); and the publication on the Government website of all tax exemptions, which has led to an increase in tax revenues (from 8 percent of GDP to 8.7 percent). Civil servant salaries are now paid regularly and domestic revenues are collected through commercial banks and transferred to the central bank (BEAC). The Government has also started to apply the new procurement code, but efforts are still needed to strengthen the deployment of the investment budget using competitive bidding. These efforts have also been supported by technical assistance provided from the Bank-administered LICUS Trust Fund and the Institutional Development Fund (IDF), which have focused on strengthening capacity in PFM and public procurement (See Table 1). 4 Total debt reduction granted to CAR amounted to around Central African CFA 560 billion (US$1 billion equivalent) in nominal terms. 3 Table 1: Strategic Theme 1 - Deliverables Summary WBG Lending /Grants Planned Actual Source Business Climate Improvement and the Development of SMEs 2009 TBD IFC LICUS (EGEMAS)- Economic Management and Improved Accountability 2009 Ongoing LICUS TF - US$2 m Economic Management and Governance Reform Grant (DPO III) 2009 Delivered IDA 15 - US$5 m 2009 Economic Management and Governance Reform Grant (DPO IV) 2011 1st Tranche IDA CRW - US$8.8 m * disbursed Financial Sector – CEMAC Regional Institutions Support - US$5m 2009 Ongoing Regional IDA WBG Non-Lending Support Planned Actual Source PRSP (2008-2010) Technical Assistance 2008 Delivered BB 2008 Mining Sector Assessment 2009 Delivered LICUS TF 2009 Diamond Sector Assessment 2010 2011 BB Improving National Procurement Systems 2009 2009 IDF EITI Implementation Support 2010 Ongoing MDTF Public Expenditure Review 2010 2012 BB Understanding Access to Justice and Local Dispute Resolution at the Additional Ongoing BNPP Community level in the CAR and Chad TA on “ CAR Towards Sustainable Urban Management” Additional Ongoing Cities Alliance *Note: The Economic Management and Governance Reform Grant (DPO IV) was not envisaged within the CPS. The Bank was able to extend its support as a result of funds received through IDA’s Crisis Response Window. 10. Good progress is noted with respect to transparency and accountability in natural resource management (Outcome 2). Technical assistance from the World Bank helped CAR become ‘EITI Compliant’ in March 2011, a tremendous accomplishment for a country still emerging from crisis. Bank-financed budget support has also focused on strengthening the regulatory framework in the mining, forestry, and petroleum sectors in order to boost growth and employment. A new Mining Code was adopted by the Parliament in April 2009, and a revised forestry code has been formulated that calls for the return of a percentage of revenues to forest communities. Finally, the GoCAR recently signed a Voluntary Partnership Agreement (VPA) with the EU as part of the Forest Law Enforcement and Governance Trade support process (FLEGT) in December 2010. 11. Establishing the institutional framework necessary to strengthen administrative planning and management capacity at central and local level is advancing, but from a very low base (Outcome 3). For rural areas, the Community Development Project Targeting Vulnerable Groups (US$20 million) represents the Bank’s efforts to strengthen support beyond Bangui. After some initial delays, emergency funds have begun to be deployed to 102 communes to rehabilitate basic social infrastructure. In urban areas, the Emergency Urban Infrastructure Rehabilitation and Maintenance Project has focused capacity development efforts on strengthening the institutions responsible for the delivery of urban services including monitoring and evaluation, procurement, financial management, and community participation. These efforts have also been complemented by additional technical assistance, including ‘CAR towards Sustainable Urban Management’, funded by the Cities Alliance Trust Fund. Relevant technical assistance and training has also been provided through the AfDB’s Economic Planning Capacities Rehabilitation Support Project (PARCPE). 12. Initial efforts to improve the investment climate are showing results, but significant challenges remain (Outcome 4). CAR’s private sector is small, hampered by insecurity, low capacity of SMEs, a weak business environment and poor infrastructure including unstable electricity. In addition, CAR was ranked 182nd out of 183 countries in the 2010 Doing Business Report. To address CAR’s 4 serious investment climate challenges, IFC helped establish the Joint Committee for the Improvement of the Business Environment, presided by the Prime Minister, and mandated to implement priority Investment Climate reforms. The Bank and the IFC also collaborated to include some private sector development related triggers within the latest DPO (EMGRG III). To date these efforts have resulted in reforms designed to reduce the cost of creating businesses (e.g., a reduction by more than half of the current business registration tax; from 150.000 to 70.000 CFA, (US$300 to US$140 equivalent) as well as in the cost of transferring properties (reduction by 50% of the transfer tax; from 15% to 7.50 %). The provision of political insurance through the issuance of MIGA’s guarantee to S.A. Orange in 2008 also contributed to helping the company to develop a global system for mobile communications (GSM) network and to provide internet services. B. Strategic Theme 2: Rehabilitation and Development of Basic Socio-Economic Infrastructure 13. Good progress is being made with respect to improving infrastructure for regional economic integration from a very low base, though challenges remain on energy (Outcome 5). In transport, the Bank provided additional financing (US$67 million) to the ongoing CEMAC Transport and Transit Facilitation Project5 to fund the Boua/Garoua-boulaï road paving works on the border with Cameroon, which is the main component of the project in CAR; as well as to strengthen the road maintenance component. Despite delays, this outcome is largely on track; the proportion of road in good condition on the Douala - Bangui corridor increased from 50 percent in 2007 to 57 percent in 2010. In telecommunications, the Bank recently supported the launch of the US$215 million Central African Backbone project (CAB) to increase the geographical reach and usage of regional broadband network services and to reduce prices to all CEMAC countries. Work is now underway to prepare the second phase of the program that will support infrastructure investments to connect the CAB network to Chad, Cameroon and CAR. The energy sector presents significant challenges. Through the Emergency Power Response Project (US$8.0 million), the Bank, in partnership with the French Development Agency, has been working to support the national electric utility company (Enerca) to partially restore the electricity supply to its essential customers, by focusing on the rehabilitation of the Boali 1 and 2 hydropower facilities and to improve its financial and operational performance. Project efforts are advancing but the infrastructure remains in a critical state, the current generation capacity of 15 MW is insufficient to meet demand and electricity supply outside of the capital is minimal. 14. Satisfactory progress has been made in relation to improving access to basic urban and community infrastructure (Outcome 6). In urban areas, an IDA exceptional allocation and Crisis Response Window (CRW) resources of US$24 million towards the Bank’s Emergency Urban Infrastructure Project helped to protect 46,600 people against periodic flooding, to provide access to year- round passable roads to 290,000 people, and provide access to an operational solid waste management system to 112,000 people. In the aftermath of the floods, the Bank led an assessment that proposed a medium-term flood reduction and mitigation program. IDA is helping to implement this through an exceptional allocation of US$5 million aimed at natural disasters. In rural zones, efforts will be supported through the Bank’s Community Development Project Targeting Vulnerable Groups (see paragraph 9) as well as the planned Community Reintegration Project (FY11). The latter is designed to strengthen community capacity in northern CAR, with particular focus on those areas with a high concentration of returning ex-combatants. 5 This is an ongoing project financed by the AfDB, the French Development Agency and the EU. 5 Table 2: Strategic Theme 2 - Deliverables Summary WBG Lending /Grants Planned Actual Source Emergency Energy project - US$8 m 2009 Ongoing IDA 15 Safe and Reliable Public Electricity - US$2.5 m 2009 Ongoing SPF Regional fiber optic infrastructure project - US$7.3 m 2010 Ongoing Regional IDA Additional Financing for Regional Trade & Transport - US$67 m 2010 Ongoing Regional IDA Community development support for vulnerable groups - S$8m 2009 Ongoing IDA15 Community Recovery Project, Northern CAR - $8.5 m 2011 Ongoing TDRP and JSDF Urban Infrastructure Project – Additional Financing - US$24 m 2010 Ongoing IDA 15/CRW Food Response Project - US$ 6.7 m 2009 Ongoing GFRP Emergency Agro-Pastoral Recovery Project - US$24 m 2012 2011 IDA 15 Education Project - US$38 m 2009 Ongoing EFA/FTI Health Project - US$15 m 2012 FY12 IDA 16 WBG Non-Lending Support Planned Actual Source Power Utility Reform Study 2009 dropped - Strengthening capacity in the Telecommunications and IT sector 2008 Ongoing IDF Country Environmental Assessment FY11 Delivered BB Health Sector Status Review FY11 Pipeline BB Floods Assessment Additional Delivered GFDRR TA on CAR Flood Recovery and Resiliency Program Additional Delivered GFDDR TA on “ CAR Towards Sustainable Urban Management” Additional Ongoing Cities Alliance TA on solid waste management in Bangui Additional Ongoing PPIAF South-South Experience Exchange on Social Water connections Additional Ongoing SEETF between Burkina Faso and CAR Public Expenditure Review of Water and Sanitation Sector Additional Ongoing WPP Study on reconnecting isolated vulnerable rural populations in CAR Additional Ongoing TFESSD into socio-economic structures 15. Emergency assistance responded to the food crisis in 2008; efforts are under preparation to improve agriculture and livestock productivity (Outcome 7). The World Bank and the AfDB responded to the 2008 food crisis with emergency support of US$7 million and UA3.0 million respectively to support a school feeding program implemented by the World Food Program (WFP) and to prepare for further investments in sustainable food security. All food rations have now been distributed by WFP; 120,000 students in 397 primary schools and pre-schools benefited from two meals daily in 2008 and 2009. Work has recently commenced to advance the second and third components of the grant, namely to support activities to increase agricultural production and productivity in targeted zones through two field-based NGOs, and to undertake key agricultural studies that will monitor food security, nutrition and vulnerability, develop a livestock census methodology, and identify environmentally and socially friendly agricultural practices. These studies will inform the new Emergency Agro-Pastoral Recovery Project, which is under accelerated preparation in FY11 thanks to the granting of an exceptional IDA 15 allocation of US$20 million. 16. Good progress has been made in improving the access and quality of education and health services but capacity-related challenges remain (Outcome 8). The Education For All-Fast Track Initiative Catalytic Fund (US$37.8 million) has supported the Government to finance the first phase of its National Education Strategy and to meet its respective MDG goals by 2020. Gross primary enrollment 6 now stands at 84 percent, surpassing the target of 77.4 percent. The number of textbooks to be distributed has doubled and the pupil to textbook ratio of 1 to 1 is expected to be met by 2011. In health, the HIV/AIDS project has recently been extended in order to allow for the distribution of equipment to clinics and the distribution of the 250,000 bed nets. To date 100,000 have been distributed (from a zero baseline). A Health Sector Status Review (FY11) is being launched to provide the appropriate analytical underpinnings for the forthcoming IDA funded intervention in FY12. 17. Concerted efforts have been undertaken to support the CPS’ four cross cutting themes.  State and Peacebuilding: The World Bank and the AfDB are also supporting the consolidation of peace through development efforts at the community level. These include the IDA-funded Support to Vulnerable Groups Community Development Project and TDRP- financed Community Recovery Project in the north of the country. The Bank is closely collaborating with the United Nations system, which is supporting the Inclusive Political Dialogue and security sector reform.  Environment and climate change: Work to date includes: (i) a Country Environmental Assessment, (ii) a medium-term flood reduction and mitigation program and (iii) a Readiness Preparation Proposal, including a national REDD (Reducing Emissions from Deforestation and forest Degradation) strategy that will enable CAR to participate in the GEF-supported REDD Project for the Congo Basin.  Capacity development: Support has been provided to strengthen the implementation of lending operations. Examples include analytical work aimed at improving national procurement systems, implementing EITI, strengthening flood recovery and improving sustainable urban management.  Gender: Several studies are underway to support the Government to update its national gender strategy; including a gender profile, supported by the AfDB, and a UNDP- supported national strategy to promote female entrepreneurs. The thematic analysis that is being undertaken as part of the PRSP 2 process will guide the Bank’s support to future interventions on gender equity and economic empowerment. 4 CPS RELEVANCE, IMPLEMENTATION AND ADJUSTMENTS A. CPS relevance 18. The country’s reform agenda that is supported by the CPS program remains relevant, and will contribute to the country’s development goals. The baseline PRSP (PRSP 1), on which the CPS was prepared, is built upon four pillars: (1) security, peace and conflict prevention; (2) good governance and the rule of law; (3) economic reconstruction and diversification; and (4) human development. While the reform agenda remains unchanged, PRSP 2 is expected to be directed towards more growth - enhancing structural reforms to address the new challenges emerging from the global slowdown. The four pillars are likely to be consolidated into two principal themes that also reflect the foundation and pillars of the Africa Strategy, namely: (i) consolidation of peace and security, governance, rule of law and human rights (ii) and inclusive growth and human development. Rural development is at the core of the PRSP 2 strategy. The Government plans to focus on alleviating extreme poverty, including food security, by identifying solutions with rapid results and that will translate into more sustainable growth within the agricultural communities. The monitoring and evaluation process, including the management information system, will also be improved, based upon a more participatory approach and with greater focus on the MDG targets and indicators. 19. The overall objectives as set out in the CPS remain valid and relevant. The CPS’ two strategic themes remain priority areas for the Government of CAR: (i) to consolidate economic governance and institutional capacity to ensure an effective management of the country’s resources and create an enabling environment for private sector development; and (ii) to rehabilitate and develop infrastructure to sustain economic growth and improve basic service delivery and the living conditions of the population. In keeping with the Africa Strategy’s primary instrument of partnership, selectivity led the 7 World Bank and the AfDB to commit to sustain and deepen their support to areas where the Banks had comparative advantage, including public finance management, transparency and accountability in natural resource management, strengthened economic infrastructure, and human resource development. 20. CAR is still seeking support in the priority areas as set out in the CPS. The Government continues to signal its full agreement with the areas of support provided by the World Bank and it is expected that PRSP 2 will reconfirm the relevance of the existing priority areas of Bank intervention. Consolidation of efforts around the government’s reform agenda will be critical for CAR’s economic and social development. This agenda includes plans to increase priority spending in MDG-related sectors including health, education, water and sanitation, agriculture and rural development, social protection, and infrastructure. Emphasis will be placed on priority investment projects, removing key bottlenecks on the budget execution chain, enhancing government capacity to implement investments, and improving spending efficiency by strengthening the public financial management system and improving governance. 21. The CPS’ lending and knowledge instruments have proven to be appropriate given the need to respond quickly to CAR’s emerging development challenges. The CPS chose a blend of instruments that focus on achieving tangible results from rapidly disbursing interventions, complemented by robust knowledge products to strengthen public policy dialogue and to build capacity. As previously indicated, 100 percent of the IDA-funded priority sector investment loans were processed as emergency operations in order to provide just-in-time support to emerging needs. DPOs have been critical in allowing the GoCAR to sustain critical public expenditures during the global crisis. The IDA and CRW- financed operations have helped to provide the fiscal space to maintain the public expenditure program. Knowledge products have been important to strengthen public policy dialogue and to build capacity, and efforts are underway to consolidate the sector based analytical and advisory studies. For example, a PER is being prepared to advise the authorities on how to improve the growth and poverty impact of government expenditures. Its recommendations will draw upon analytical work recently undertaken including the draft Water Supply and Sanitation Sector PER report, analysis of public financial management carried out by the IMF, and the forthcoming Health Sector Assessment. 22. Thanks to creative leveraging of the national IDA allocation, regional IDA, trust funds, and exceptional IDA allocations--another theme of the Africa Strategy--the financial envelope available to CPS implementation has been adequate to date. Resources available to CAR may stagnate for the remainder of the CPS period, as significant alternative sources of financing beyond the country’s IDA 16 allocation are not evident at this time. The team will, however, continue to selectively seek out trust fund resources that complement ongoing or planned activities, including SPF funding to maintain the Bank’s critical support to public finance management, and TFESSD to complement the new community recovery program in the north of the country. B. Implementation and adjustments 23. CPS delivery is on track, and in many cases is progressing quicker than anticipated. As Tables 1 and 2 demonstrate, program delivery has largely proceeded as planned, with new lending deliverables totaling US$210 million during the CPS period. Planned Analytic and Advisory Activities are advancing well, with all activities having either been delivered or under preparation. As described above, these activities are beginning to yield tangible results both in the policy sphere and on the ground. 24. Portfolio performance is strong. Despite capacity constraints within the public administration, the Bank’s engagement with the government has been robust. There is a strong commitment to development. This translates into an impressive degree of political will to move the reform agenda forward at the policy level, and to ensure progress that yields tangible results at the project level. It is therefore not surprising that CAR’s average annual disbursement rate has stood at over 30 percent during 8 the CPS period. While there are three projects that are at risk, there are none in problem status. In general, the government’s teams responsible for project implementation have been proactive in both identifying implementation bottlenecks and solving them in a timely manner. 25. Going forward, the CPS will maintain its overall objectives, but will continue to respond flexibly to CAR’s emerging needs. The overall objectives as set out in the CPS remain valid and relevant. The Government also continues to signal its full agreement with the areas of support provided by the World Bank. Nevertheless, as the PRSP 2 is finalized, the CPS will continue to maintain a flexible approach with respect to its strategic direction, including, as specified in the second pillar of the Africa Strategy (“vulnerability and resilience”), the ability to respond to shocks. The Bank’s focus during the remainder of the CPS will be on: i) the selective roll out of new lending in agriculture and health, ii) implementation and quality of portfolio performance, iii) and expanding support beyond Bangui to more remote areas of the country. 26. The Fiscal Year 2011 work program deliverables are broadly on track, though there have been some slippages into FY12. Preparation of the proposed US$24.0 million Emergency Agro-Pastoral Recovery Project was advanced to FY11 thanks to a US$20 million exceptional IDA allocation. The project will increase production and marketing of selected food crops and livestock products. It represents an important shift in project design in CAR, wherein the proposed project offers a medium- to long-term framework for strengthening food production and marketing on a sustainable basis, as opposed to providing just-in-time emergency support. Phase 1 (B) of the Central Africa Backbone Project is under preparation and will likely be delivered in FY11.The Health Sector Assessment has slipped to FY12 in order to allow for the completion of the Multiple Cluster Survey (MICS-4) report in May 2011. The review will document key dimensions of the sector, focusing on service delivery, finance and impact on the health status of the nation, in order to identify challenges and opportunities for policy dialogue and the new lending in FY12. The PER, the flagship AAA, has also been pushed to FY12 in order to allow additional time for the task team to undertake analysis that will underpin the report. Table 3: FY11 and FY12 Lending and AAA plan Planned Actual/Revised Source FY11 Planned Actual/Revised Source Emergency Agro-Pastoral Recovery Project –US$24m 2012 2011 IDA 15 & Exceptional IDA Central Africa Backbone – 1B –US$9.9m N/A 2011/12 IDA – Regional Technical Assistance for Public Finance Management and N/A 2011 SPF Governance – US$2m Health Sector Status Review 2011 2012 BB FY12 Health Project -US$10m forecast – front load to US$15m 2012 2012 IDA-16 Public Expenditure Review 2011 2012 BB 27. Fiscal Year 2012 will focus on the delivery of an important new health project, which will support the implementation of the Government’s National Health Plan (2010-2014). The operation will aim at increasing utilization and improving the quality of basic health services with a particular focus on child and maternal health. The project will support the Ministry of Health to implement a performance based financing system to deliver health services to under-served areas. This operation will be in the 9 range of US$15 to US$20 million, depending on the final IDA 16 allocation to CAR, and the extent of frontloading desired by the Government that will be based on the menu of proposed activities. 28. The IFC will be scaling up its SME development operations and other Advisory Services activities, funded mainly through IFC’s Conflict Affected States in Africa (CASA) Program (US$ 25 million for the four CASA countries). In addition, IFC’s SME Ventures Program will be providing risk capital finance to SMEs (US$ 2.5 million) and strengthening SME management skills (Business Edge training Program). In November 2009, IFC also received government support to issue a medium-to-long term CFA Franc bond in the CEMAC countries. The proceeds from the bond issuance will be invested in projects in the CEMAC region. IFC's objective is to establish its credit in the market through this issuance of the bond and follow this up with Structured Finance Transactions that will allow it to efficiently mobilize local currency financing for the private sector in collaboration with local financial institutions (i.e., ECOBANK in CAR). MIGA also remains open in CAR, offering its political risk product for investors who are keen to invest in the country, but who remain apprehensive because of political risks or governance issues. 29. Where possible, the CPS will try to grow support beyond Bangui. Poverty incidence in CAR varies substantially across regions, with the lowest concentration in Bangui, and the highest incidences in the most remote, rural areas of the country. Bank support is evolving, and is shifting its emphasis to these underserved, albeit difficult to access, areas. The ongoing Support to Vulnerable Groups Community Development Project, the recently launched Community Recovery Project and planned new investments in agriculture and health signal this geographic reorientation of Bank-supported activities in the field. While responding to the country’s most chronic needs related to development, this transition also presents challenges to implementation and related Bank support. 30. The portfolio quality will be important to monitor during the remainder of the CPS period. As explained earlier, the current portfolio is performing well. On the client side, strong leadership and a commitment to development at all levels have led to impressive results under challenging circumstances. Bank task teams have been proactive in supporting the government to identify and overcome implementation obstacles, including capacity constraints, limited data availability, and unexpected cost overruns due to a lack of competition. This joint effort to ensuring development results will be critical to sustain for the remainder of the CPS period, particularly given the large increase in commitments over the past two fiscal years. 31. The revised CPS results framework (Annex 1) reflects minor changes to reflect adjustments in the lending and analytical work programs. Changes to the outcome indicators, as summarized in Annex 2, reflect revised project targets in relation to the Emergency Power Response Project (Outcome 5), and updated indicators in relation to the water and sanitation components of the Emergency Urban Infrastructure Project (Outcome 6). 5 RISKS 32. The risks highlighted in the FY2009-2012 CPS remain valid. The following section updates certain key risks (political, security, macroeconomic), and identifies two new risks (food security and portfolio management) that relate to the remainder of the CPS period. 33. Political risk. After three postponements, presidential elections were conducted on January 23rd 2011. Following the successful re-election of the incumbent president, a new government was formed and officially recognized on April 22nd 2011. The new Government will be tasked with addressing the 10 challenges associated with peace and security that are essential for political stability and to build upon that which has been developed during the first years following the transition. While support to the political process and associated transition are outside of the mandate of the World Bank, collaboration is underway with the Peace Building Commission to ensure that peace building reforms and investments are sufficiently addressed in the PRSP 2 and the upcoming Round Table. 34. Security risk. As outlined in paragraph 5, the Government continues to face insecurity in outlying areas, with ongoing rebel attacks in the North-East and South-East. While the election outcome may lead to a reduction in security risks on Bangui, the slow implementation of the DDR process continues to undermine the consolidation of peace. The President is currently overseeing a second campaign to advance the process, including the setting-up of local DDR committees and the distribution of food allowances, financed through the national budget. While the DDR program is implemented by the government and UNDP, the Bank and AfDB will continue to focus their efforts on community recovery in the north to help foster peace building at the local level and mitigate some of the security risk. 35. Macroeconomic risk. CAR continues to remain vulnerable to shocks. While preliminary estimates show a recovery in 2010 with real GDP growth of 3.3 percent, a prolonged impact of the global economic crisis on exports could lead to slower growth, lower revenue, and deterioration in debt indicators. Critical resources available to CAR may also stagnate from donors for the remainder of the CPS period, due to concerns relating to the uncertain political situation. Moreover, inadequate progress relating to domestic revenue mobilization could cause delays in private sector investment projects that are needed to boost CAR’s economy and create jobs. Mitigating factors are CAR’s recent track record in macroeconomic management, which has been strong in response to exogenous shocks. The Government’s focus on growth enhancing structural reforms as part of its poverty reduction strategy, and support provided by the Bank and other donors on this, should help build macroeconomic resilience in the face of any new exogenous shocks. 36. Food Security risk. About 30 percent of the population of CAR is currently food insecure, and even small internal and external shocks can cause many more to face hunger. Productivity gains for small-holder farmers will become critical to any mitigation strategy for this. These productivity gains are within reach for the majority of Central African farmers, but strategic investments are needed to make this happen. The new Emergency Agro-Pastoral Recovery Project and the associated Emergency Food Response Project will provide critical mitigation support through focused efforts to sustainably increase production. 37. Portfolio management risk. Supervision of a relatively young and significantly larger portfolio (currently at US$230 million in commitments) presents significant challenges. As the portfolio expands its geographic scope, supervision remains costly and difficult given the insecurity. Most TTLs are not based in the country office, and there are limited flights into the country (there is only one flight per week from Europe). Further efforts will be made to decentralize key staff to the country office, including TTLs, fiduciary and safeguards staff, and additional resources will be made for implementation support. The new Fragile States hub in Nairobi is also expected to provide a complement of expert support to the country team and office. 11 Annex 1: Results Matrix for CAR CPS (FY09-FY12)6 Selected Progress to Date World Bank CAR PRSP CPS Outcome CPS Key Issues (in relation to CPS Group/AfDB objectives & & Indicators Milestones Instruments indicators7 Outcomes) Axis 1: Consolidation of Economic Governance and Institutional Capacity (Aligned with PRSP Pillar 2: Promote Good Governance and Rule of Law) Stabilization of public  Tax level, while 1. Improved public Public finance Completed Projects: finances increasing is still very low finance management management 1.1 Achieved: In 2009, the  DPO III - Economic  Improving the security (around 10%) and revenue All non-donor Government closed all but Management and of tax revenue collection  Inadequate mandated accounts in three of the 70 accounts Governance Reform Grant mobilization systems. enforcement of rules and commercial banks are that were necessary to carry II (EMGRG II) $5m  Reinforcing budgetary procedures within state closed by end 2010 out Treasury activities with (FY09) (WB) Public finance management control. financial bodies (WB) the commercial banks. 1.1 A single treasury  Absence of Reconciliations between  Economic Reforms account is in place by end regulatory framework for The Procurement fiscal and cash accounts Support Program (ERSP) Indicator: Tax burden 9.5% 2010 (WB and AfDB) procurement Regulatory Agency have improved substantially phase II for UA 9.5m FY08 in 2006 (no target) 1.2 Percentage of  Poor financial and Directorate are and are now undertaken (AfDB) investment budget using management and planning fully operational by daily. competitive procedures capacity end 2010 (WB) On-going Projects: (Baseline: <20% by end  Absence of 1.2 Partly achieved: of the  LICUS III Project – $2.0 2008, Target: >70% from automation and Comprehensive budget 31 contracts issued in 2009, m for Ec. Management and 2010 on-wards) (WB and computerization of execution reports about 29% followed the Improved Accountability AfDB) procedures in state using harmonized new procurement (FY09) (WB) financial bodies nomenclatures procedures using  CEMAC Regional Revenue mobilization prepared and reviewed competitive bidding, of Financial Institutions 1.3 Exemption by external oversight these about 10% were Project $5.0 m(FY09) conventions management bodies by end 2010 based on single source (WB) reviewed by Inter-ministerial (WB and AfDB) procurement approved by  DPO IV - $8.8 m Committee in charge of Tax the Procurement ((FY11) (WB) and Customs Duty Networking of the Directorate. Pipeline: Exemptions and made public Budget Directorate  Economic Reforms (Baseline: 0 in 2008, target: and the Treasury 1.3 Largely achieved. The Support Program (ERSP) 100% from 2010 on-wards) completed by end CICEFD reviews the tax phase III (PARE III) for (WB and AfDB) 2010 (WB and AfDB) and customs exemption UA 10m in 2011 (AfDB) requests submitted to it by MTEF used for key the Minister of Finance. AAA: sectors (health, The CICEFD's quarterly  Public Expenditure education, and annual reports on Review FY12 ($0.25m) 6 For each result measurement, the name of the accountable agency is noted. In some instances, both WBG and AfDB have selected the same results measurement. 7 This is a subset of the CAR PRSP Objectives taken directly from the final PRSP document. 12 Selected Progress to Date World Bank CAR PRSP CPS Outcome CPS Key Issues (in relation to CPS Group/AfDB objectives & & Indicators Milestones Instruments indicators7 Outcomes) infrastructure and approved and rejected (WB) agriculture) for exemptions are posted on budgeting by end 2010 government website. TA: (WB and AfDB) However, discretionary  TA for PRSP exemptions continue.  Implementation (CMU Revenue mobilization request to Fragile State A revised National Initiative) FY10 (WB) Investment Chart  TA on Strategic regulating exemptions Communication for is operational by end Development FY11(WB) 2010 (WB)  Partners: AFD, EU Network installed between CICEFD unit and customs systems (ASYCUDA) and tax directorate database (SYSTEMIF) by end 2011 (WB) Stabilization of public 2. Improved finances  Weak institutional transparency and Mining 2.1Partly achieved. Closed Projects:  Fighting corruption. framework and poor accountability in natural New standard Mining Parliament adopted the new  DPO III - Economic implementation of Agreement is adopted Standard Mining Management and resource management regulatory provisions by end 2009 (WB) Agreement in April 2009. Governance Reform Grant Exploit Natural  Weak capacity of the However, at least one II (EMGRG II) for $5m Resources Mining sector’s public institutions Publication of the Mining License has been (FY09) (WB)  Actively involve the 2.1 Investment permits due to staff and equipment 2007-9 EITI revenue issued in 2010 under the On-going Projects: public in sustainable in compliance with the new shortages accounts by end 2011 old Mining Code.  LICUS III Project – $2.0 forestry management and Mining Legislation  Lack of involvement (WB) m for Ec. Management and maximize the benefits of (Baseline: 0 in 2008, Target: of local people in the 2.2 Completed. CAR was Improved Accountability forestry for poor people 100% from 2011 onwards) management of mining EITI work plan certified as EITI compliant (FY09) (WB)  Improve where needed (WB) resources. executed by end 2010 on March 22 1011. This  DPO IV - $8.8m (FY11) the institutional and fiscal (WBG) was based upon its EITI (WB) framework surrounding 2.2 CAR fulfils all reports for 2007, 2008, and Pipeline Projects: mining activities criteria and submits its Forestry 2009 covering revenues  Economic Reforms  Strengthen the official request for The remaining three from the production of Support Program (ERSP) capacity of regulatory Compliant Status to for forest concessions are diamonds, gold and phase III for UA 10m bodies in the mining sector consideration by the EITI awarded in compliance uranium, which involves all FY11 (AfDB) and increase civil society Secretariat Board (WB) with the revised stakeholders. The report is involvement 13 Selected Progress to Date World Bank CAR PRSP CPS Outcome CPS Key Issues (in relation to CPS Group/AfDB objectives & & Indicators Milestones Instruments indicators7 Outcomes) Forestry Code by end expected to be disseminated TA: Indicators: Share of Forestry 2010 (WB) worldwide.  TA on Strategic earnings from wood in tax 2.3 Forest revenues   Communication for revenue (%) (baseline, transferred to local CAR’s AFLEG action 2.3 Achieved. 30 percent of Development FY11 (WB) target: not available) communities plan is implemented stumpage fees and 25  TA for PRSP Share of earnings from (Baseline: not recorded, by end 2011 (WB) percent of reforestation tax Implementation (CMU mining in tax revenue (%) Target: 35% of Stumpage were allocated to request to Fragile State (Baseline: 3% in 2006,4% fees and 25% of forest communities in line with Initiative) (WB) – ($0.30m) by end 2011) regenerating taxes by end the revenue distribution  EITI support (FY10) 2010) (WB) mechanism (WB) 2.4 CAR becomes an   AAA: AFLEG member by end 2. 4. Achieved. CAR is  Mining Sector 2011(WB) expected to adopt by end Assessment ($0.03m) FY09 2010 a framework (WB) document for a national  Country Environmental tracking system and for a Assessment ($0.05m) FY10 system of verification of the (WB) legality of timber  Diamond Sector production in the context of Assessment (FY10) (WB) the FLEGT process.  REDD Project (Reducing Emissions and Forest Degradation (WBG- GEF grant) Partners: AFD, EU, UNDP Improvement of the  Inefficient public 3. Strengthened 30% of targeted 3.1 Partly Achieved. Since On-going Projects: quality of public administration system administrative planning villages have received August 2009, all sectoral  Economic planning services  Dilapidated public and management capacity building committees have used a capacities rehabilitation office infrastructure support by end 2010 standard format to report support project (PARCPE) capacity at central and  Weak human and (WB) their poverty activities, for Euro 1,963m (AfDB) Decentralization and technical capacity local levels which facilitates evaluation FY06 reorganization of 20% of targeted of progress and any  LICUS III Project – $2.0 public administration 3.1 Observable communes have problems. However, several m for Ec. Management and improvement in the functioning and committees are facing Improved Accountability implementation and Improvement of representative capacity constraints to (FY09) (WB) monitoring of PRSP in Line community coordination bodies report on progress.  Community Ministries (WBG and AfDB) participation with regular meetings Development Project 14 Selected Progress to Date World Bank CAR PRSP CPS Outcome CPS Key Issues (in relation to CPS Group/AfDB objectives & & Indicators Milestones Instruments indicators7 Outcomes) 3.2 40% of targeted (WB) 3.2 Not yet achieved. targeting vulnerable groups Indicators: Satisfaction communes have Local for $8m (WB) FY09 index of public services Development Plans 350 (40% of women) users developed through a experts of key Pipeline Projects: participatory process by end ministries involved in  Multi-sector institutional 2011 (WB) the implementation of support program for UA the PRSP trained by 2.5m in 2010 (AfDB) FY10 end 2012, including  Secondment program (AfDB-PCDAGV) (technical assistance) (AfDB) FY09  TA for PRSP Implementation (CMU request to Fragile State Initiative) (WB)  TA on Strategic Communication for Development FY09-10 (WB)  Water and sanitation sector institutional support project (AfDB)  Community Development Project targeting vulnerable groups for UA 8m (AfDB) FY09  State and Peacebuilding Fund support to Local Governance ($3.5 m) (WB)  Fragile States Facility ($2 m) (AfDB) AAA:  Growth diagnostic study (AfDB) FY09-10 Partners: EU, AFD, UNDP 15 Selected Progress to Date World Bank CAR PRSP CPS Outcome CPS Key Issues (in relation to CPS Group/AfDB objectives & & Indicators Milestones Instruments indicators7 Outcomes) Private sector and  Low capacity of 4. Improved investment Support to reforms to 4.1 Partial progress; The On-going Projects: business environment SMEs climate and more facilitate business chamber of office is on its  IFC Conflict Affected  Establish a legal and  Weak business business opportunities registration (IFC) way to becoming fully States in Africa (CASA) institutional framework and environment (CAR is Venture capital functional and active. Program for local SMEs incentive structure ranked 180th out of 181 in provided to more than  IFC Ventures Program conducive to private the 2009 Doing Business 50 enterprises by end 4.2 Achieved. Car has  MIGA guarantee FY08 – 4.1 Chamber of enterprise Report) 2010 (IFC) reduced its current business telecomm. Project commerce fully functional  Build the capacity of  High internal debt of registration tax from and active (IFC) institutions servicing the the Government vis-à-vis Financial 150.000 CFA to 70.000 Pipeline Projects: 4.2 Time to register a private sector and develop private companies intermediaries CFA (US$300 to US$140  Trade Financing business reduced (IFC) business support services supported to develop equivalent) Initiative and the  Strengthen products adapted to Emergency Liquidity partnerships between the SMEs (IFC) Facility (AfDB) public and private sectors  IFC Support to improvement of business (No Indicators) climate and to the development of SMEs (FY09) AAA: Growth Diagnostic Study (AfDB) (FY10) Axis 2: Rehabilitation and Development of Basic Socio-Economic Infrastructure (Aligned with PRSP Pillar 3 Rebuild and Diversify the Economy and Pillar 4 Develop Human Capital) Promote the energy  Dilapidated 5. Improved Energy 5.1 Not on track. For 2010, On-going Projects: sector infrastructure Infrastructure for An additional firm the target is 6 hours per day  Emergency Energy  Continue with the  Frequent power Regional Economic generation capacity of (not achieved). The current Response Project (US$8m) restructuring of the sector outages about 3 MW is added number of hours is 10. FY09 (WB) Integration  Diversify energy  High transmission to the system by end  Safe and Reliable Public sources and distribution losses 2011 (WB) 5.2 Not on track. Estimates Electricity Project Energy  Improve hydrocarbon  Weak financial of sales (recovered) are (US$2.5m – SPF grant) 5.1 Number of hours of management capacity performance of the power About 10,000 currently estimated at 5.6bn FY09 (WB) load shedding decreases utility due in part to low consumers use  Boali 2 and 3 project from 8 hours per day Indicator: Proportion of bill collection efficient lamps by end With respect to milestones, (UA 23m) (AfDB) currently to 3 hours per day population with access to 2010 (Baseline: 0) Enerca limited generation by end 2012 (WB and electricity (Baseline: 5% in (WB) capacity was temporarily AAA: AfDB) 2006, no target) reduced by almost 2 MW,  PPIAF Power Utility 5.2 ENERCA generates Bill collection out of about 18 MW. Reform Study ($0.5m) enough cash for operations improves from 65% in Actions for replacement (WB) and maintenance of its 2008 to 80% by end and reinforcement are  RIAS II (WB) FY09 system in Bangui from 4.5bn 2010 (WB) underway.  ECCAS Reg. Integration CFA to 2.7bn CFA by end 16 Selected Progress to Date World Bank CAR PRSP CPS Outcome CPS Key Issues (in relation to CPS Group/AfDB objectives & & Indicators Milestones Instruments indicators7 Outcomes) 2012 (WBG). Strategy (AfDB) FY09  National Electrification Overall electricity Master Plan study and losses are reduced institutional support from 50% in 2008 to (AfDB) 40% by end 2011 (WB) Partners: AFD Develop  Weak legal, Telecommunications Telecommunications 5.3 Not yet achieved – On-going Projects: telecommunications regulatory and 5.3 Coverage of mobile Three operators and project under preparation  MIGA guarantee FY08  Promotion of institutional framework; network increase from service providers and data not yet available – telecommunication competition  Dilapidated basic 19.3% in 2008 to 40% by buying capacity from project  Strengthen the legal infrastructure end 2011 (WB) the Regional  Technical study for the framework  Lack of a dynamic, Infrastructure by end Central Africa backbone  Full coverage of the competitive climate 2011 (WB) (WB-PPIAF) population conducive to the  Improve internet development of ICT sector Secondary legislation Pipeline Projects: utilization  Poor coverage of ICT related to broadband  Central African services developed by end Backbone / Regional Fiber Indicators: Proportion of 2010 (WB) Optic Cable project FY10 mobile phone subscribers (Total IDA $17m – but among the urban Frequency spectrum only $2.5m CAR country population (11 in 2006, no management allocation (WB) target) regulatory tools  Regional Fiber Optic designed by end 2010 Cable project FY11 (AfDB) (WB)  RIAS II (WB) FY09  ECCAS Reg. Integration Deploy the Central Strategy (AfDB) FY09 African Backbone infrastructure in CAR AAA: to link Bangui to the  Feasibility study national neighboring countries fiber optic infrastructure by end 2011 (WB) (AfDB)  Technical study for the Central African Backbone (WB – PPIAF) Partners: CEMAC, CEEAC, African Union Commission and 17 Selected Progress to Date World Bank CAR PRSP CPS Outcome CPS Key Issues (in relation to CPS Group/AfDB objectives & & Indicators Milestones Instruments indicators7 Outcomes) International Telecommunications Union Develop transport  Access to the Transport Transport 5.4: On track; the On-going Projects: infrastructure international market 5.4 Proportion of road in Construction of 78 km proportion of roads in good  CEMAC - Regional  Secure the through Douala good condition on the of road by end 2012 condition on the Douala- project Transport Transit international access to the  Poor maintenance of Douala – Bangui corridor on the Douala-Bangui Bangui corridor has Facilitation sea road network increases from 50% in 2007 corridor (WB and increased from 53% to (CMR/CHD/CAR) (FY07)  Strengthen the  Few roads that are to 70% by end 2012 (WB AFDB) 57%. (WB) institutional framework passable during the rainy and AfDB)  Mobilize existing season 5.5 Average transit time in 1200 kms of roads  Regional Project on departmental resources days for imports from arrival maintained by end Transport-Transit  Seek finance for the in port of Douala to Bangui 2010 (government as a Facilitation 2008-2010 period decreases by 20% by end commitment) (CMR/CHD/CAR)  Repair transport 2012 (from 10 days in 2008) Additional financing for infrastructure (WB and AfDB) 800 kms of earth roads $55 m in CAR– FY10 rehabilitated by end (WB) Indicator: Mileage of roads 2012 (WB and AfDB) Pipeline Projects: and tracks that have been  Ouesso (Congo), Bangui- repaired or maintained Budget of the road Ndjamena Transport project (km) (Baseline: 700 in fund increases to 4 (FY12) (AfDB) 2006, no target available) billion CFA by end 2012 (from 2 billion AAA: CFA in 2006)  RIAS II (WB) FY09  ECCAS Reg. Integration Unpaved network Strategy (AfDB) FY09 under routine  Feasibility study for maintenance exceed Ouesso (Congo), Bangui- 1,200 km by end 2012 Ndjamena corridor FY09 (from 700) (UA4m) (AfDB)  Feasibility study for Obangui-Congo-Sangha river Transport project FY09-10 (UA 4m) (AfDB) Partners: AFD, US, EU 18 Selected Progress to Date World Bank CAR PRSP CPS Outcome CPS Key Issues (in relation to CPS Group/AfDB objectives & & Indicators Milestones Instruments indicators7 Outcomes) Water treatment and  Urban infrastructure 6. Improved Access to Water 6.1 Not achieved. However, On-going Projects: sanitation is destroyed and in Basic Urban and 10 boreholes Ten boreholes have been  Water and Sanitation  Establish an disarray Community constructed by end drilled, awaiting water Project (UA 7m) (AfDB) appropriate institutional and  Financial and 2011 (WB) towers and kiosks to be  Emergency Urban Infrastructure (Urban, regulatory framework institutional weakness of Replaced by: built in the coming months Infrastructure FY07 for Water Supply, Sanitation,  Nation-wide capacity service providers Improved community to provide access to water US$ 18 m. (WB) Drainage and Roads) building for the sector in  Poor city planning water points supply.  Additional financing for relation to management and constructed or Emergency Urban Water planning rehabilitated under the 6.2 Not yet achieved. The Infrastructure (FY10) (WB) 6.1 Number of people  Construct and renovate project project has just started  Water and sanitation in urban areas provided with supply works and adequate disbursements (AfDB) sector Institutional Support access to improved water treatment plants Price of cubic meter of Project for Euro1.96m sources under the project is  Finance the sector water in public water 6.3. (AfDB) 38,000 in 2014 (WB) from diverse sources which point decrease from 112,000 additional people are stable and reliable FCFA 1,250 FCFA to got access to an operational TA: 6.2 Access to potable FCFA 500 in 3 ‘Chefs- solid waste management  Secondment water in 3 “Chefs Lieux de Indicators: Households lieux de Préfectures’ system (compared to Program/Technical Prefectures” increase from with access to drinking (AfDB) incremental end of project Assistance for $2m (AfDB) 32% to 100% (AfDB) water (Baseline: 28.2% in target of 227,000). 2006, no target) Sanitation / Solid Waste AAA Sanitation / Solid 6.4.  Urbanization Master /Drainage Waste / Drainage 46,600 additional people Plan study for Bangui are protected against (AfDB) 6.3 Number of people Solid waste collected periodic flooding in urban areas provided with as a percentage of (compared to incremental Partners: EU, AFD, access to a regular solid solid waste produced end of project target of UNDP waste collection under the in Bangui increase 52,000); project increases to 390,000 by 2014. from 6% in 2007 to 40% by end 2010 6.5. 290,000 additional (WB). (Milestone to be people got access to year- 6.4 People with access dropped) round passable roads to improved drainage in (compared to incremental areas served by the project Seven kilometres of end of project target of increases from 6000 in 2007 primary drainage 420,000); to 70,000 in 2014. (WB) constructed by end 2011 (WB) 43 kilometers of urban 6.5 Number of people roads were rehabilitated, in urban areas provided witih 66 kilometers of urban although some of the roads access to all-season roads roads rehabilitated in were damaged during the within a 500 meter range Bangui by end 2011 2009 floods. under the project is 420,000 in 2014 (WB) (WB). 19 Selected Progress to Date World Bank CAR PRSP CPS Outcome CPS Key Issues (in relation to CPS Group/AfDB objectives & & Indicators Milestones Instruments indicators7 Outcomes) Improving Community  Low physical Community Development Community Not yet achieved. Baseline On-going Projects: Participation security for the population and Services Development and studies undertaken by the  LICUS grant for  Weak capacity of 6.6 40% of financed Services Central African Institute for Community-Driven (No indicators) state institutions village level projects achieve 30% of targeted Statistics and Socio- Development and Social  Profound social and their targets in terms of villages have received Economic Sciences Sector Project (US$2.7 economic divisions increased access to social capacity building (ICASEES) have recently million) (WB)  Limited access to and infrastructure services support by end 2010 completed. Consultant  Community basic social and economic by end 2012 (WB) (WB) support is now being Development Project services in rural areas provided during the initial (FY09) (WB) 6.7 Average distance 20% of targeted phase of the data entry  Japanese Social in targeted villages from a communes have process. Development Fund (JSDF) health center or a water point functioning and Grant for $1.8m (WB) decrease by 2/3 by end 2013 representative (AfDB) coordination bodies with regular meetings Pipeline Projects: (WB)  Community Development Project 40% of targeted targeting vulnerable groups communes have Local (UA8m) (AfDB) Development Plans  Community Recovery – developed through a Northern CAR Project (SPF participatory process grant) $3.5 m in FY10 by end 2011 (WB) (WB)  Transitional Rehabilitate and build Demobilization & 200 (AfDB) + 80 Reintegration Program (WB) basic (TDRP) 09 (AfDB/WB) infrastructure/micro- projects by end 2012 Partners: UNDP, France, European Union, Japan Promote and  Low agricultural 7. Improved 50,000 agricultural 7.1 Partially achieved. 1800 On-going Projects: modernize agriculture productivity Agriculture and producers receive beneficiaries have received  Emergency Food  Support rural people  Lack of access to Livestock Productivity improved inputs (seeds improved seeds, or cuttings; Response ($7.0 million)  Build the capacity of certain insecure areas and tools) by end 2010 1500 have received tools FY09 (WB) institutions  Lack of producer (WB) and 1100 have received  Emergency Food 7.1 70% of targeted  Intensify and diversify access to inputs and tools training. Response for UA3.0m farmers adopt at least one agriculture 2000 agricultural FY08 (AfDB) improved technology by end producers receive . 2010 (WB) Indicators: training by end 2010 Pipeline Projects: - Food production in tons (AfDB)  Rural infrastructure 7.2 Additional 12,000 20 Selected Progress to Date World Bank CAR PRSP CPS Outcome CPS Key Issues (in relation to CPS Group/AfDB objectives & & Indicators Milestones Instruments indicators7 Outcomes) (Baseline: 3017 in 2006, no tons of food products, 1,000 rehabilitation Project (UA4 target) tons of cotton and 1,000 tons 250km of rural roads m) FY09 (AfDB) - Production of cash crops of meat commercialized by rehabilitated by  Agriculture / rural (cotton, coffee) in tons end 2012 (AfDB) end2012 (AfDB- development project for (Baseline: 5500 in 2006, PARIR) US$10 m in FY12 (WB) no target) - Number of heads of 2 abattoirs, 2 livestock AAA livestock (Baseline: 13841 markets, 2 provincial  Food Security study in 2006, no target) markets, and 1 rural FY09 (AfDB) market built by end 2012(AfDB-PARIR) Partners: FAO, EU 2 training centers, 2 laboratories and livestock food factory rehabilitated and equipped by end 2012 (AfDB-PARIR) 300 (70% of women) agents of the Ministry of Agriculture, 50 groups (1000 members) trained by end 2015 (AfDB- PARIR) Education Education 8. Improved access and Education Achieved On-going Projects:  Increase the range of  One child out of four quality of education and 284 primary 8.1 Targets for gross  Multi-sectoral education on offer have never attended health services classrooms enrollment in primary HIV/AIDs, Health,  Increase the proportion school constructed by end education have been Education ($17.0 million) of pupils completing  The conditions of 2010 (WB) surpassed to 84%. project FY02 (WB) Education primary school instruction are extremely  EFA/FTI Catalytic Fund 8.1 Gross enrolment in  Increase retention rates poor with degraded and 480 000 French and 8.2. The Pupil teacher ratio ($38m) (WB) primary education increase  Raise awareness and inadequate number of mathematics textbooks is now at 81. from 73.7% in 2007 to mobilize all partners classrooms and delivered to targeted Pipeline Project: 81.7% by end 2011 (WB) Indicators: insufficient textbooks. schools by end 2010 8.3. The number of  Health sector project 8.2 Pupil – teacher - Registration in primary  Lack of trained (WB) textbooks to be distributed (FY12) (WB) ratio decrease from 90.5 in education, basic level teachers. has doubled; 670,000 2007 to 80 by end 2011 1(Baseline: 60% in 2006, 300 teachers embark textbooks are currently AAA: (WB) Target: 73% in 2010) Health and HIV/Aids on 1st year of initial under distribution which  Health Sector Finance 8.3 Pupil-reading - Rate of completion of  Health service training at ENI and will allow the ratio of 1:1 to Assessment (FY11) (WB) textbook ratio decreases 21 Selected Progress to Date World Bank CAR PRSP CPS Outcome CPS Key Issues (in relation to CPS Group/AfDB objectives & & Indicators Milestones Instruments indicators7 Outcomes) primary education, basic provision is very poor from 7 in 2007 to 2 by end 450 teachers at the 8 be met in relation to pupil- level 1 (Baseline: 30% in  Under-funded and 2011 CPRs by end reading textbook ratio by 2006, Target: 53% in 2015) short-staffed public health 8.4 Pupil-math 2010(WB) 2010-2011. Partners: The Global - Ratio of literacy among institutions constrain textbook ratio decreases Fund, German cooperation, 10 to 24 year olds service delivery from 6 in 2007 to 2 by end More than 1500 Other milestones are also France, UNESCO, China (Baseline: 57.3% in 2003,  Public health staff 2011 teachers contracted by on track, in particular the and USAID No Target) concentration in Bangui is end 2010 (WB) construction of primary excessive, leaving health Health and HIV/Aids classrooms, and number of Health and HIV/Aids posts and hospitals in the 8.5 200,000 men and Health and HIV/Aids teachers trained.  Regenerate and rest of the country under- women accepted VCT and 20,000 blood strengthen the health care staffed received test results in transfusion pockets 8.5Health- partially system  HIV/Aids infection targeted health centers by tested for HIV and achieved. 90,241 men and  Finance scaled rates are thought to be on end 2010 compared to 0 in other blood borne women have accepted VCT implementation of priority the increase 2007 (WB) infections in targeted and received test results in child and maternal  UNAIDS estimates health centers by end targeted health centers by healthcare programs HIV prevalence in CAR at 8.6 300,000 additional 2010 (WB) end 2011 (compared to 0 in  Combat HIV/Aids, about 6.3 percent among households using ITBNs by 2007). tuberculosis and malaria persons aged between 15 end 2011 (WB) 5,000 pregnant women Indicators: and 49 years, which is reached by PMTCT 8.6. To date 100,000 have - Deliveries assisted by a above the 3 to 5 percent during the last 12 received Insecticide- medical worker (Baseline: rates in neighbouring months in targeted Treated Bed Nets (ITBNs). 44% in 2006, no target) countries health centers by end - Rate of use of condoms 2010(WB) among 15-24 year olds (Baseline: 41% in 2006, no target) 22 Annex 2: Updated and Revised CAS Outcome Indicators Original CAS Indicators Updated and Revised Indicators CAS Outcome 5. Improved infrastructure for Regional Economic Integration Energy: ENERCA increased its cash generation and Updated: Energy: ENERCA generates enough cash for expenditure on operations and maintenance from 2 operations and maintenance of its system in Bangui billion CFA in 2008 to 2.7 billion CFA by end 2012. from 4.5bn CFA to 2.7bn CFA by end 2012 (WBG) (WBG) CAS Outcome 6. Improved access to Basic Urban and Community Infrastructure Water Updated: Number of people with access to potable water People with access to improved drainage in areas served increase from 10,000 in 2007 to 110,000 by end 2011 by the project increases from 6000 in 2007 to 70,000 in (WB) 2014. Sanitation / Solid Waste /Drainage Number of people in urban areas provided with access Number of people with access to a sustainable solid to improved water sources under the project is 38,800 in waste management system in Bangui increase from 2014 30,000 in 2007 to 257,000 by end 2011 (WB) Number of people in urban areas provided with access Number of people in Bangui protected against to all-season roads within a 500 meter range under the periodic flooding increases from 6,000 to 58,000 by project is 420,000 in 2014 end 2011 (WB) Number of people in urban areas provided with access Number of people in Bangui with access to year round to regular solid waste collection under the project passable roads increases from 50,000 in 2007 to increases to 390,000 by 2014. 470,000 by end 2011 (WB) 23 Annex 3: IDA Operations Portfolio (Excluding Regional Portfolio) As of Date 1/27/2011 Closed Projects 29 IBRD/IDA * Total Disbursed (Active) 38.05 of which has been repaid 0.00 Total Disbursed (Closed) 96.26 of which has been repaid 76.91 Total Disbursed (Active + Closed) 134.31 of which has been repaid 76.91 Total Undisbursed (Active) 50.37 Total Undisbursed (Closed) 0.00 Total Undisbursed (Active + 50.37 Closed) Difference Active Projects Between Expected and Last PSR Actual Original Amount in US$ Disbursements Supervision Rating a/ Millions Development Implementation Fiscal Frm Project ID Project Name IDA GRANT Cancel. Undisb. Orig. Objectives Progress Year Rev'd P114111 CF-Emergency Power Response Project MS MS 2009 8 6.9 3.8 P120534 CF-EMGRG III DPO IV (FY11) S S 2011 8.8 4.5 P113221 CF-Food Response Project MS MS 2009 7 0.3 2.4 2.8 0.6 P104595 CF-Emergency Urban Infrastruct ERL (F07) S S 2007 41.9 25.3 -1.9 0.6 P073525 CF-HIV/AIDS (FY02) S S 2002 17 6.5 3.1 -2.2 P111679 CF-Supp to Vulnerable Grps Community Dev MS MS 2009 8 7.2 2.4 Overall Result 83.7 7 0.3 52.8 5.7 -1.0 24 Annex 4: Analytical and Advisory Activities Fiscal Analytic and Advisory Activities Planned Actual Source Year in CPS 2008 PRSP TA Planned Delivered BB 2008 2008 Strengthening capacity in the Additional Ongoing IDF Telecommunications Sector 2009 Mining Sector Assessment Planned Delivered LICUS TF 2009 2009 Improving National Procurement Planned Ongoing IDF Systems 2010 Public Expenditure Review Planned 2012 BB 2010 Diamond Sector Assessment Planned 2010 BB 2010 EITI Support Planned Ongoing MDTF 2010 Country Environmental Assessment Planned Delivered BB 2011 2010 Power Utility Reform Study Planned Dropped 2011 Understanding Access to Justice and Additional ongoing BNPP Local Dispute Resolution at the Community level in the CAR and Chad 2010 Floods Assessment ( “Recurrent Urban Additional Delivered GFDDR Flooding in Bangui, - Assessment of the 2010 current situation and measures to reduce future frequency of floods and mitigate floods impacts”) 2011 TA on CAR Flood Recovery and Additional Delivered GFDDR Resiliency Program 2011 2013 TA on “ CAR Towards Sustainable Additional Ongoing Cities Alliance Urban Management: Improving Bangui City Performance through Capacity Building and Planning Tools Development 2012 TA on solid waste management in Additional Ongoing PPIAF Bangui 2012 South-South Experience Exchange on Additional Ongoing SEETF Social Water connections between Burkina Faso and CAR 2011 Public Expenditure Review of Water and Additional Ongoing WPP Sanitation Sector 2012 Study on reconnecting isolated Additional Ongoing TFESSD vulnerable rural population in CAR into socio-economic structures 2011 Communications for Development Planned Dropped BB 2011 PRPS Technical Assistance Planned Dropped BB 2011 Health Sector Status Review Planned 2012 BB 25 Annex 5: Selected Indicators of Portfolio Performance and Management As of Date 1/27/2011 Indicator 2008 2009 2010 2011 Portfolio Assessment Number of Projects Under Implementation a 3 5 5 6 Average Implementation Period (years) b 2.6 2.2 3.2 3.2 Percent of Problem Projects by Number a, c 0.0 20.0 0.0 0.0 Percent of Problem Projects by Amount a, c 0.0 12.1 0.0 0.0 Percent of Projects at Risk by Number a, d 66.7 80.0 60.0 16.7 Percent of Projects at Risk by Amount a, d 81.6 86.2 39.3 8.9 Disbursement Ratio (%) e 15.4 48.8 30.6 13.7 Portfolio Management CPPR during the year (yes/no) Supervision Resources (total US$) Average Supervision (US$/project) Since FY Last Five Memorandum Item 80 FYs Proj Eval by OED by Number 26 2 Proj Eval by OED by Amt (US$ millions) 498.4 83.3 % of OED Projects Rated U or HU by Number 61.5 0.0 % of OED Projects Rated U or HU by Amt 66.9 0.0 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. 26 Annex 6: IFC Program 2008 2009 2010 2011* Commitments (US$m) Gross 2.84 Net** 2.84 Net Commitments by Sector (%) LOAN 100 Total 0 0 100 0 Net Commitments by Investment Instrument (%) Loan 100 Total 0 0 100 0 * As of March 31, 2011 ** IFC's Own Account only Committed and Disbursed Outstanding Investment Portfolio As of 12/31/2010 (In USD Millions) Committed Disbursed Outstanding **Quas Equit i *GT/R Partic **Quasi Partici FY Approval Company Loan y Equity M i pant Loan Equity Equity *GT/RM pant 2010 Ecobank-car 3.06 0 0 0 0 0 0 0 0 0 Total Portfolio: 3.06 0 0 0 0 0 0 0 0 0 * Denotes Guarantee and Risk Management Products. ** Quasi Equity includes both loan and equity types. 27 Annex 7: Country at a Glance Central African Republic 2/25/10 Central Sub- Key Development Indicators African Saharan Low Republic Africa income Age distribution, 2008 (2008) Male Female Population, mid-year (millions) 4.4 818 973 75-79 Surface area (thousand sq. km) 623 24,242 19,310 60-64 Population growth (%) 1.8 2.5 2.1 Urban population (% of total population) 39 36 29 45-49 30-34 GNI (Atlas method, US$ billions) 1.8 885 510 15-19 GNI per capita (Atlas method, US$) 410 1,082 524 GNI per capita (PPP, international $) 730 1,991 1,407 0-4 10 5 0 5 10 GDP growth (%) 2.2 5.0 6.4 percent of total population GDP per capita growth (%) 0.4 2.5 4.2 (most recent estimate, 2003–2008) Poverty headcount ratio at $1.25 a day (PPP, %) 62 51 .. Under-5 mortality rate (per 1,000) Poverty headcount ratio at $2.00 a day (PPP, %) 82 73 .. Life expectancy at birth (years) 45 52 59 250 Infant mortality (per 1,000 live births) 113 89 78 Child malnutrition (% of children under 5) .. 27 28 200 Adult literacy, male (% of ages 15 and older) .. 71 72 150 Adult literacy, female (% of ages 15 and older) .. 54 55 100 Gross primary enrollment, male (% of age group) 86 103 102 Gross primary enrollment, female (% of age group) 61 93 95 50 0 Access to an improved water source (% of population) 66 58 67 Access to improved sanitation facilities (% of population) 31 31 38 1990 1995 2000 2007 Central African Republic Sub -Saharan Africa a Net Aid Flows 1980 1990 2000 2008 (US$ millions) Net ODA and official aid 110 249 75 176 Growth of GDP and GDP per capita (%) Top 3 donors (in 2007): France 69 71 19 54 10 European Commission 11 33 6 30 United States 1 3 1 18 5 0 Aid (% of GNI) 13.8 17.0 8.0 10.4 Aid per capita (US$) 47 83 19 41 -5 Long-Term Economic Trends -10 95 05 Consumer prices (annual % change) 14.7 -0.2 3.2 2.6 GDP implicit deflator (annual % change) 18.3 2.3 3.2 6.2 GDP GDP per capita Exchange rate (annual average, local per US$) 211.3 272.3 712.0 447.8 Terms of trade index (2000 = 100) .. 110 100 92 1980–90 1990–2000 2000–08 (average annual growth %) Population, mid-year (millions) 2.3 3.0 3.9 4.4 2.6 2.5 1.7 GDP (US$ millions) 797 1,488 959 1,988 1.4 2.0 0.5 (% of GDP) Agriculture 40.0 47.6 53.1 52.9 1.6 3.8 0.3 Industry 20.1 19.7 15.8 14.2 1.4 0.7 -0.4 Manufacturing 7.2 11.3 7.0 7.6 5.0 -0.2 -0.1 Services 39.9 32.7 31.0 32.9 1.1 0.2 -2.5 Household final consumption expenditure 93.7 85.7 80.8 94.4 .. .. -0.9 General gov't final consumption expenditure 15.1 14.9 14.0 6.6 .. .. -1.3 Gross capital formation 7.0 12.3 9.5 11.6 .. .. -0.1 Exports of goods and services 25.2 14.8 19.8 10.8 .. .. -3.6 Imports of goods and services 41.1 27.6 24.1 23.4 .. .. -3.9 Gross savings 1.6 -0.4 8.2 1.4 Note: Figures in italics are for years other than those specified. 2008 data are preliminary. .. indicates data are not available. a. Aid data are for 2007. Development Economics, Development Data Group (DECDG). 28 Central African Republic B a la nc e o f P a ym e nt s a nd T ra de 2000 2008 Governance indicators, 2000 and 2008 (US$ millio ns) To tal merchandise expo rts (fo b) 159 147 To tal merchandise impo rts (cif) 162 239 Voice and accountability Net trade in go o ds and services -42 -250 Political stability Current acco unt balance -12 -196 as a % o f GDP -1.3 -9.9 Regulatory quality Rule of law Wo rkers' remittances and co mpensatio n o f emplo yees (receipts) .. .. Control of corruption Reserves, including go ld .. .. 0 25 50 75 100 2008 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 ) Current revenue (including grants) 13.7 15.1 Source: Kaufmann-Kraay-Mastruzzi, World Bank Tax revenue 7.8 7.9 Current expenditure 9.2 1 1 .0 T e c hno lo gy a nd Inf ra s t ruc t ure 2000 2008 Overall surplus/deficit -1.8 -0.4 P aved ro ads (% o f to tal) 2.7 .. Highest marginal tax rate (%) Fixed line and mo bile pho ne Individual .. .. 00 subscribers (per 1 peo ple) 0 3 Co rpo rate .. .. High techno lo gy expo rts (% o f manufactured expo rts) 0.1 0.0 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 858 949 A gricultural land (% o f land area) 8 8 To tal debt service 14 35 Fo rest area (% o f land area) 36.8 36.5 Debt relief (HIP C, M DRI) 61 1 .. Natio nally pro tected areas (% o f land area) .. 15.2 To tal debt (% o f GDP ) 89.4 47.8 Freshwater reso urces per capita (cu. meters) 35,273 32,463 To tal debt service (% o f expo rts) 7.3 1 1 .7 Freshwater withdrawal (billio n cubic meters) 0.0 .. Fo reign direct investment (net inflo ws) 1 121 CO2 emissio ns per capita (mt) 0.07 0.06 P o rtfo lio equity (net inflo ws) 0 0 GDP per unit o f energy use (2005 P P P $ per kg o f o il equivalent) .. .. Composition of total external debt, 2008 Energy use per capita (kg o f o il equivalent) .. .. Short-term, 71 IBRD, 0 Private, 31 Wo rld B a nk G ro up po rt f o lio 2000 2008 Bilateral, 207 (US$ millio ns) IDA, 390 IB RD To tal debt o utstanding and disbursed 0 0 Disbursements 0 0 P rincipal repayments 0 0 Other multi- lateral, 187 IMF, 63 Interest payments 0 0 US$ millions IDA To tal debt o utstanding and disbursed 391 390 Disbursements 13 2 P riv a t e S e c t o r D e v e lo pm e nt 2000 2008 To tal debt service 9 16 Time required to start a business (days) – 22 IFC (fiscal year) Co st to start a business (% o f GNI per capita) – 237.6 To tal disbursed and o utstanding po rtfo lio – – Time required to register pro perty (days) – 75 o f which IFC o wn acco unt – – Disbursements fo r IFC o wn acco unt – – Ranked as a majo r co nstraint to business 2000 2008 P o rtfo lio sales, prepayments and (% o f managers surveyed who agreed) repayments fo r IFC o wn acco unt – – n.a. .. .. n.a. .. .. M IGA Gro ss expo sure – 34 Sto ck market capitalizatio n (% o f GDP ) .. .. New guarantees – 38 B ank capital to asset ratio (%) .. .. No te: Figures in italics are fo r years o ther than tho se specified. 2008 data are preliminary. 2/25/10 .. 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). 29 Millennium Development Goals Central African Republic With selected targets to achieve b etween 1990 and 2015 (estimate clo sest to date sho wn, +/- 2 years) C e nt ra l A f ric a n R e public G o a l 1: ha lv e t he ra t e s f o r e xt re m e po v e rt y a nd m a lnut rit io n 19 9 0 19 9 5 2000 2008 .25 P o verty headco unt ratio at $ 1 a day (P P P , % o f po pulatio n) .. 82.8 .. 62.4 P o verty headco unt ratio at natio nal po verty line (% o f po pulatio n) .. .. .. .. Share o f inco me o r co nsumptio n to the po o rest qunitile (%) .. 2.0 .. 5.2 P revalence o f malnutritio n (% o f children under 5) .. 23.3 21.8 .. G o a l 2 : e ns ure t ha t c hildre n a re a ble t o c o m ple t e prim a ry s c ho o ling P rimary scho o l enro llment (net, %) 52 .. .. 56 P rimary co mpletio n rate (% o f relevant age gro up) 29 .. .. 30 Seco ndary scho o l enro llment (gro ss, %) 11 .. 12 .. Yo uth literacy rate (% o f peo ple ages 15-24) 48 .. 59 .. G o a l 3 : e lim ina t e ge nde r dis pa rit y in e duc a t io n a nd e m po we r wo m e n Ratio o f girls to bo ys in primary and seco ndary educatio n (%) 60 .. .. .. Wo men emplo yed in the no nagricultural secto r (% o f no nagricultural emplo yment) .. .. .. 47 P ro po rtio n o f seats held by wo men in natio nal parliament (%) 4 4 7 1 1 G o a l 4 : re duc e unde r- 5 m o rt a lit y by t wo - t hirds Under-5 mo rtality rate (per 1 ,000) 171 193 186 172 Infant mo rtality rate (per 1,000 live births) 1 13 123 120 131 M easles immunizatio n (pro po rtio n o f o ne-year o lds immunized, %) 82 46 36 62 G o a l 5 : re duc e m a t e rna l m o rt a lit y by t hre e - f o urt hs M aternal mo rtality ratio (mo deled estimate, per 1 00,000 live births) .. .. .. 980 B irths attended by skilled health staff (% o f to tal) .. 46 44 53 Co ntraceptive prevalence (% o f wo men ages 1 5-49) .. 15 28 19 G o a l 6 : ha lt a nd be gin t o re v e rs e t he s pre a d o f H IV / A ID S a nd o t he r m a jo r dis e a s e s P revalence o f HIV (% o f po pulatio n ages 1 5-49) 1.8 4.9 6.4 6.3 Incidence o f tuberculo sis (per 100,000 peo ple) 145 209 302 345 Tuberculo sis cases detected under DOTS (%) .. 62 8 71 G o a l 7 : ha lv e t he pro po rt io n o f pe o ple wit ho ut s us t a ina ble a c c e s s t o ba s ic ne e ds A ccess to an impro ved water so urce (% o f po pulatio n) 58 59 63 66 A ccess to impro ved sanitatio n facilities (% o f po pulatio n) 11 15 22 31 Fo rest area (% o f to tal land area) 37.2 37.0 36.8 36.5 Natio nally pro tected areas (% o f to tal land area) .. .. .. 15.2 CO2 emissio ns (metric to ns per capita) 0.1 0.1 0.1 0.1 GDP per unit o f energy use (co nstant 2005 P P P $ per kg o f o il equivalent) .. .. .. .. G o a l 8 : de v e lo p a glo ba l pa rt ne rs hip f o r de v e lo pm e nt 00 Telepho ne mainlines (per 1 peo ple) 0.2 0.2 0.2 0.3 00 M o bile pho ne subscribers (per 1 peo ple) 0.0 0.0 0.1 3.5 00 Internet users (per 1 peo ple) 0.0 0.0 0.1 0.4 00 P erso nal co mputers (per 1 peo ple) .. .. 0.2 0.3 Education indicators (%) Measles immunization (% of 1-year ICT indicators (per 100 people) olds) 75 100 4 50 75 3 50 2 25 25 1 0 2000 2002 2004 2006 2008 0 0 1990 1995 2000 2007 2000 2002 2004 2006 2008 Primary net enrollment ratio Fixed + mobile subscribers Ratio of girls to boys in primary & secondary Central African Republic Sub-Saharan Africa education (..) Internet users 30 No te: Figures in italics are fo r years o ther than tho se specified. .. indicates data are no t available. 2/25/10 Develo pment Eco no mics, Develo pment Data Gro up (DECDG). 16E 18E 20E 22E 24E This map was produced by the Map Design Unit of The World Bank. The boundaries, colors, denominations and any other information é shown on this map do not imply, on the part of The World Bank Aoukal Group, any judgment on the legal status of any territory, or any endorsement or acceptance of such boundaries. To Nyala CHAD To Birao Am Timan CENTRAL 10N 10N AFRICAN ulo u h rO VA K A G A REPUBLIC Ba Bahr A ouk To Ouanda Kafia Kingi Djallé To BAMINGUI-BANGORAN os Bong Sarh des Maïkouma an Ndélé Ch aîne B go ra n 8N To Ouadda Kaouadja 8N Gribingui Doba Pata To Baïbokoum Markounda Ba m HAUTE-KOTTO UD AN S UDAN gu in Batangafo NANA- i ns Paoua GRÉBIZI OUHAM- i OUHAM ta Kaga Yangalia t to Bocaranga Ko un Bandoro PENDÉ Mo am h Mt. Ngaoui Ou Bria Yalinga H A U T- To OUAKA ka (1,420 m) Bouca rre MBOMOU Oua Melganga Bozoum Bossangoa Dékoa Ka Ippy Djéma 6N Bouar KÉMO 6N To MBOMOU O uarr a Baoro Bambari Bétaré Oya NANA- Sibut Grimari Bakouma M MAMBÉRÉ ’p o Obo ri ink o ba Bossembélé Ch ko Lo To M Mb M m b omo a bé Zémio Naandi ré OMBELLA- i Mingala u ay Rafaï ngu Kouango BASSE- e Carnot M’POKO Damara ba Bangassou KOTTO u O MAMBÉRÉ-KADÉÏ BANGUI To CENTRAL AFRICAN Mb Boda Mobaye Monga Berbérati aé Ouango To Bimbo L O B AY E ré Batouri Gamboula REPUBLIC 4N Lo To ba Mbaïki Kad ye Libenge éï Mongoumba To Yokadouma Nola SANGHA- Tomori MBAÉRÉ DEM. REP. SELECTED CITIES AND TOWNS Salo CONGO O F CO NGO 0 40 80 120 160 200 Kilometers PREFECTURE CAPITALS AM E ON C A ME RO O N NATIONAL CAPITAL a Sangh 0 40 80 120 Miles RIVERS ONG O C ONGO MAIN ROADS IBRD 33384R 2N RAILROADS AUGUST 2010 o ng PRFECTURE BOUNDARIES Co INTERNATIONAL BOUNDARIES 16E 18E 20E 22E