The World Bank Report No: ISR9176 Implementation Status & Results Togo Togo - Financial Sector and Governance Project (P111064) Public Disclosure Copy Operation Name: Togo - Financial Sector and Governance Project (P111064) Project Stage: Implementation Seq.No: 7 Status: ARCHIVED Archive Date: 01-Jan-2013 Country: Togo Approval FY: 2009 Product Line: IBRD/IDA Region: AFRICA Lending Instrument: Specific Investment Loan Implementing Agency(ies): Key Dates Board Approval Date 31-Mar-2009 Original Closing Date 31-Dec-2014 Planned Mid Term Review Date 01-Mar-2012 Last Archived ISR Date 10-Jul-2012 Effectiveness Date 11-Aug-2009 Revised Closing Date 31-Dec-2014 Actual Mid Term Review Date 29-May-2012 Project Development Objectives Project Development Objective (from Project Appraisal Document) The project development objective is to improve financial sector stability by supporting the Government financial sector reform program. Financial sector restructuring will lead to more efficient resource allocation towards poverty reducing and growth inducing sectors. The project will provide technical assistance to various stakeholders to support the financial sector reform program of the Government of Togo. Has the Project Development Objective been changed since Board Approval of the Project? Yes No Component(s) Component Name Component Cost Banking sector restructuring 4.40 Microfinance sector strengthening 3.20 Reforming the pension sector 1.00 Support to the implementation of reforms in financial and private sectors 1.00 Project implementation 0.85 Public Disclosure Copy PPA 0.95 Overall Ratings Previous Rating Current Rating Progress towards achievement of PDO Moderately Satisfactory Moderately Satisfactory Overall Implementation Progress (IP) Moderately Satisfactory Moderately Satisfactory Overall Risk Rating Implementation Status Overview Page 1 of 5 The World Bank Report No: ISR9176 Progress towards meeting the PDO is Moderately Satisfactory. With regards to the privatization of four public banks, a provisional adjudicator has been selected for one bank (the new investor's licensing is pending monetary authorities’ approval). One bank's process has been declared unsuccessful by the Privatization Commission due to the fact that the sole last bidder did not respect the bidding procedures. This process will likely be re-launched after the second lot has been dealt with. For the second lot, three offers have been submitted for one bank in end November 2012 and are scheduled to be evaluated by end- December 2012. The authorities have decided to postpone to that same date the Public Disclosure Copy submission of the final offers for the other bank. With regards to the microfinance sector component, implementation has slightly improved but still needs to be followed up carefully. In the pension sector reform component, new parameters have been adopted by decree for the private sector social security institution and the law spelling out the parameters should be modified by end Q1-2013. Locations Country First Administrative Division Location Planned Actual Togo Not Entered Togolese Republic Togo Region Maritime Lome Results Project Development Objective Indicators Indicator Name Core Unit of Measure Baseline Current End Target After the recapitalization of Togolese Text Value Not applicable True commercial banks (BTCI, UTB and BIA), the Date 01-Dec-2008 31-Dec-2011 31-Dec-2014 Government will no longer contribute to the Comments absorption of losses, recapitalization and liquidity of commercial banks. BTCI, UTB and BIA meet key prudential norms Text Value Do not meet 3/3 (solvency and liquidity) by 2009 and every year Date 01-Dec-2008 31-Dec-2011 31-Dec-2014 until the end of the project Comments liquidity ratios which remains a challenge for all 3 banks (49.08%,62.64%,63.73%) All large MFIs (with outstanding loans over 1 Text Value No prudential ratios yet 100% billion CFAF) meet key prudential ratios by end defined by BCEAO Public Disclosure Copy of project Date 01-Dec-2008 31-Dec-2010 31-Dec-2014 Comments 8 prudential ratios were defined by BCEAO Intermediate Results Indicators Page 2 of 5 The World Bank Report No: ISR9176 Indicator Name Core Unit of Measure Baseline Current End Target BTCI, UTB and BIA have new gross NPLs Text Value Not applicable (securitization Below 5 percent below 5 percent of total loans each year not completed) Public Disclosure Copy (starting in 2009) Date 01-Dec-2008 31-Dec-2011 31-Dec-2014 Comments Two out of the three targeted banks (BTCI, Text Value None 3 UTB and BIA) have entered into partnerships Date 01-Dec-2008 25-May-2012 31-Dec-2014 with strategic banking investors by June 2010, Comments the third bank, by 2012 The agency in charge of loan recovery and of Text Value Not created Operationnal creating a secondary market for government Date 01-Dec-2008 25-May-2012 31-Dec-2014 securities is created by end 2009 and Comments operational from 2010 All MFIs with outstanding loans over 1 billion Text Value 67% 100% CFAF have gross a Portfolio at Risk over 90 Date 01-Dec-2008 25-May-2012 31-Dec-2014 days (PAR>90) below 5 percent by the endof Comments the project All MFIs with outstanding loans over 1 billion Text Value Not applicable 100% CFAF) have their financial statements audited Date 01-Dec-2008 31-Dec-2011 31-Dec-2014 and certified yearly by BCEAO registered Comments auditors All MFIs with outstanding loans over 1 billion Text Value 3 out 6 100% CFAF) have undergone at least one rating Date 01-Dec-2008 25-May-2012 31-Dec-2014 between 2009 and 2013. Comments All MFIs with outstanding loans over 1 billion Text Value 5 out 6 100% CFAF report their financial information on the Date 01-Dec-2008 25-May-2012 31-Dec-2014 Mix Market (www.mixmarket.org) starting in Comments 2009 The legal frameworks for CRT and CNSS is Text Value Not modified Modified Public Disclosure Copy modified according to established best Date 01-Dec-2008 25-May-2012 31-Dec-2014 practices by 2011 (in particular, parameters for Comments contribution and payments are established through decrees) The parameters for CRT and CNSS have been Text Value Not adjusted Adjusted adjusted through decrees according to the Date 01-Dec-2008 31-Dec-2011 31-Dec-2014 findings of the actuarial studies by 2011 Comments Page 3 of 5 The World Bank Report No: ISR9176 The income statement of the pension branch of Text Value Not balanced Balanced CRT and CNSS is balanced by the end of the Date 01-Dec-2008 25-May-2012 31-Dec-2014 project Comments Public Disclosure Copy Reform Secretariat is operational and Text Value Established, not fully Fully operational demonstrates the ability to identify and steer operational key reforms in the financial and private sectors Date 01-Dec-2008 25-May-2012 31-Dec-2014 Comments The public private sector dialogue platform is Text Value Platform inactive 1 round table per year active and contributes effectively to the shaping Date 01-Dec-2008 25-May-2012 31-Dec-2014 of policies on the private and financial sectors Comments indicator will be dropped Volume of Bank Support: Institutional Amount(USD) Value 0.00 422778.20 3200000.00 Development - Microfinance Date 30-Jun-2009 31-Dec-2010 31-Dec-2014 Comments 2011 data not yet available Data on Financial Performance (as of 13-Dec-2012) Financial Agreement(s) Key Dates Project Ln/Cr/Tf Status Approval Date Signing Date Effectiveness Date Original Closing Date Revised Closing Date P111064 IDA-H4540 Effective 31-Mar-2009 23-Apr-2009 11-Aug-2009 31-Dec-2014 31-Dec-2014 Disbursements (in Millions) Project Ln/Cr/Tf Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P111064 IDA-H4540 Effective XDR 8.00 8.00 0.00 4.75 3.25 59.00 Disbursement Graph Public Disclosure Copy Page 4 of 5 The World Bank Report No: ISR9176 Public Disclosure Copy Key Decisions Regarding Implementation The World Bank team is working closely with the PIU and Togolese authorities to move forward with the implementation of the project including reforms in the banking, microfinance and pension sectors. Restructuring History There has been no restructuring to date. Related Projects There are no related projects. Public Disclosure Copy Page 5 of 5