international development association … · 2015. 5. 12. · document of the world bank for...

Document of The World Bank

FOR OFFICIAL USE ONLY

Report No: 93146-SN

INTERNATIONAL DEVELOPMENT ASSOCIATION

INTERNATIONAL FINANCE CORPORATION

AND

MULTILATERAL INVESTMENT GUARANTEE AGENCY

PERFORMANCE AND LEARNING REVIEW OF THE COUNTRY PARTNERSHIP STRATEGY

FOR

THE REPUBLIC OF SENEGAL

FOR THE PERIOD FY13-FY17

April 28, 2015

Country Management Unit AFCF1 Africa Region International Development Association The International Finance Corporation Africa Region 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 Group authorization.

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The date of the last Country Partnership Strategy: February 19, 2013

FISCAL YEAR January 1 – December 31

CURRENCY EQUIVALENTS

(As of February 04, 2015)

Currency Unit = CFA Francs (CFAF) CFAF 1000 = US$1.75

US$1.00 = CFAF 572.48 SDR 1.00 = US$1.42

ABBREVIATIONS AND ACRONYMS

AAA Analytical and Advisory Activities KOICA Korea International Cooperation Agency

ACAB Arrangement Cadre relatif aux Appuis Budgétaires (Framework Agreement on Budget Support)

M&E Monitoring and Evaluation

AfDB African Development Bank MDGs Millennium Development Goals

AfDF African Development Fund MDRI Multilateral Debt Relief Initiative

APIX Investment Promotion Agency MEF Ministry of Economy and Finance

APL Adaptable Program Loan MIGA Multilateral Investment Guarantee Agency

AGIR Alliance Global pour l’Initiative Résilience (Global Alliance for Resilience Initiative)

MHI Mutual Health Insurance

APR Annual Progress Report MHO Mutual Health Organization AfDF African Development Fund MTDS

Medium-Term Debt Management Strategies

AGS Accelerated Growth Strategy MS Moderately Satisfactory AMS Artisanal and Small-scale Mining MSMEs Micro, Small and Medium Enterprises

ARMP Autorité de Régulation des Marchés Publics (Public Procurement Regulatory Authority)

NCB National Competitive Bidding

ASTER Application des Services du Trésor en Réseaux (Treasury Service Database)

NHDP National Health Development Program

BCEAO Banque Centrale des Etats de l’Afrique de l’Ouest (Central Bank of West African States)

NPL Non-performing Loan

BOAD Banque Ouest Africaine de Développement (West African Development Bank)

NSBD National Standard Bidding Document

CAADP Comprehensive African Agriculture Development Program

NSDS National Strategy for the Development of Statistics

CFAA Country Financial Assessment NSS National Statistical System CAPSU Caisse Autonome pour la Protection Sociale

Universelle (Social Protection Fund) OECD/DAC Organization for Economic Co-operation and

Development/Development Assistance Committee

CAS Country Assistance Strategy OFNAC Office National de Lutte contre la Fraude et la Corruption (National Office for the Fight Against Fraud and Corruption)

CILSS

Comité Permanent Inter-Etats de Lutte Contre la Sécheresse dans le Sahel (Permanent Inter-state Committee for Drought Control in the Sahel)

ONAS Office National de l’Assainissement du Sénégal National Office for Sanitation

CMU Couverture Maladie Universelle (Universal Health Coverage Strategy)

OPCS Operations Policy and Country Services

CPAR Country Procurement Assessment Review OMVS Organisation pour la Mise en Valeur du Fleuve Sénégal (Senegal River Basin Organization)

CPI Corruption Perception Index IFC International Finance Corporation

CPPR Country Portfolio Performance Review IIAG Ibrahim Index on African Governance CPF Country Partnership Framework IMF International Monetary Fund CPS Country Partnership Strategy PASEC Program on the Analysis of the Educational

System CPSPR Country Partnership Strategy Progress Report PCB Private Credit Bureau CY Calendar Year PDO Project Development Objective DB Doing Business PFM Public Finance Management DCMP Direction Centrale des Marchés Publics

(National Procurement Department) PIU Project Implementation Unit

DGPSN Délégation Générale à la Protection Sociale et à la Solidarité Nationale (General Delegation for Social Welfare and National Solidarity)

PLR Performance Learning Review

DPC Development Policy Credit PPA Project Preparation Advance DPL Development Policy Lending PPFR Programmatic Public Finance Review DPO Development Policy Operation PRSC Poverty Reduction Support Credit DRM Disaster Risk Management PRSP Poverty Reduction Strategy Paper DSA Debt Sustainability Analysis PS Parti Socialiste du Sénégal (Socialist Party of

Senegal) EC European Community PSE Plan Senegal Emergent (Senegal Emergence

Plan) ECOWAS Economic Community of West African States PNBSF Programme National de Bourses de Sicuriti

Familiale (National Conditional Cash Transfer) EFA-FTI Education for All-Fast Track Initiative PPP Public Private Partnership EITI Extractive Industries Transparency Initiative PSI Policy Support Instrument ESW Economic and Sector Work RBF Results Based Financing EVD Ebola Virus Disease SCD Systematic Country Diagnostic FCFA Franc CFA SDI Service Delivery Indicators FDI Foreign Direct Investment

SENELEC Société Nationale d’Electricité (National Power

Utility of Senegal) FOB

Free on Board

SIGFIP

Système Intégré de Gestion des Finances Publiques (Integrated Public Finance Management System)

FIRST Financial Sector Reform and Strengthening Initiative

SNDES Stratégie Nationale de Développement Economique et Social (National Social and Economic Development Strategy)

FY Fiscal Year SNEEG Stratégie Nationale pour L'égalité et L'équité du Genre (National Strategy for Gender Equity and Equality)

GCC Government Contractors Certificate SME Small and Medium Enterprises GDP Gross Domestic Product SSA Sub-Saharan Africa GER Gross Enrollment Rate SYSCOA Système de Comptabilité Ouest-Africaine

(West African Accounting System) GFRP Global Food Crisis Response Program

TA Technical Assistance

GGSC Governance and Growth Support Credit UNDP United Nations Development Program GPOBA Global Partnership on Output-Based Aid UNFPA United Nations Population Fund GoS Government of Senegal USAID United States Agency for International

Development HDI Human Development Index VCS Value Chains Solutions HIPC Heavily Indebted Poor Countries WAAPP West Africa Agricultural Productivity ProgramIDA International Development Association WAEMU West African Economic and Monetary Union EVD Ebola Virus Disease VCS Value Chains Solutions ICA Investment Climate Assessment WBG World Bank Group IDB Islamic Development Bank

IDA IFC MIGA

Vice President: Makhtar Diop Jean Philippe Prosper Keiko Honda

Country Director Vera Songwe Saran Kebet-Koulibaly Ravi Vish

Task Team Leader Vera Songwe Jerome Cretegny Conor Healy

TABLE OF CONTENTS

I. INTRODUCTION..............................................................................................................1

II. MAIN CHANGES IN COUNTRY CONTEXT ..............................................................1 2.1 Changes to Poverty Reduction Programs and Shared Prosperity Agenda .................1 2.2 Changes in Key Macroeconomic and Debt Developments .......................................2 2.3 Emerging Country/Development Issues ....................................................................3

III. SUMMARY OF PROGRAM IMPLEMENTATION ....................................................4 3.1 Portfolio Performance Issues .....................................................................................4 3.2 Evolution of Partnerships and Leveraging .................................................................5 3.3 Overview of Progress Toward Achieving CPS Objectives by Main Focus Area ......6

IV. EMERGING LESSONS ....................................................................................................7 4.1 Main Lessons from Portfolio and Program Implementation and Performance .........7 4.2 Lessons from Experience in Other Countries/Regions Applicable to Senegal ..........8

V. ADJUSTMENTS TO THE COUNTRY PARTNERSHIP STRATEGY ......................8

VI. RISKS TO CPS PROGRAM ..........................................................................................12 6.1 Revised Systematic Operations Risk-Rating Tool ...................................................12

List of Tables

Table 1: Revised CPS Lending and AAA Program for FY13-17 ................................................. 13

List of Annexes Annex 1-Updated CPF Results Matrix ......................................................................................... 14 Annex 2- Matrix of change to original CFP Result Matrix .......................................................... 23 Annex 3-Matrix summarizing progress toward CPF Objectives .................................................. 26

ACKNOWLEDGEMENTS

The following World Bank Group staff contributed to the preparation of the Performance Learning Review: Philip English, Demetrios Papathanasiou, Eric Brintet, Jean Michel N. Marchat, Raja Bentaouet Kattan, Djibril Ndoye, Roy Katayama, Andrew Dabalen, Matthias Cinyabuguma, Pablo Fajnzylber, Marie-Chantal Uwanyiligira, Upulee Iresha Dasanayake, Ndeye Magatte Fatim Seck, Evelyn Awittor, Anta Loum Lo, Ramatulay Heloysa Barbosa, Ndeye Aissatou Diagne Diouf, Mademba Ndiaye; colleagues from IFC: Jerome P. Cretegny, David Ivanovic, and Conor Healy from MIGA. The team worked under the overall guidance of Vera Songwe, the Country Director.

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SENEGAL

PERFORMANCE AND LEARNING REVIEW OF THE COUNTRY PARTNERSHIP STRATEGY (FY13-17)

I. INTRODUCTION

1. In response to Senegal’s sluggish economic growth over the last decade compared to most countries in the region, the Bank has been focused on supporting Government policies to accelerate inclusive growth and poverty reduction. In January 2013, the Board of Executive Directors of the World Bank Group (WBG) discussed the Country Partnership Strategy (CPS) for FY13-17 for Senegal (Report No. 73478-SN). The CPS is focused on accelerating inclusive growth and creating employment (Pillar 1); improving service delivery (Pillar 2); and strengthening the governance framework and building resilience (the foundation pillar).

2. This Performance and Learning Review (PLR) highlights adjustments to the CPS in response to new developments since it was discussed, based on implementation performance and lessons learned.

3. The main findings of this PLR are as follows:

(a) The CPS objectives remain relevant at mid-term, and are in line with the Government’s comprehensive new development strategy, the “Plan Senegal Emergent (PSE).”

(b) Implementation performance under all three CPS pillars has been satisfactory or exceeded expectations. Some milestones have been modified to reflect the Government’s accelerated implementation agenda. Specifically, under Pillar 1-accelerating inclusive growth and creating employment implementation was accelerated; under Pillar 2 - improving service delivery implementation has been satisfactory, and under the foundation pillar strengthening the governance framework and building resilience implementation has been slower but on track.

(c) Early collaboration between IDA and IFC has strengthened the program, a joint IDA-IFC business plan was developed during CPS preparation and implementation is progressing.

(d) A few implementation lags remain. More effort is needed to improve performance at entry and accelerate procurement processes, by both the Bank and the Government.

II. MAIN CHANGES IN COUNTRY CONTEXT

2.1 CHANGES TO POVERTY REDUCTION PROGRAMS AND SHARED PROSPERITY AGENDA

4. Recent improvements in the overall economic performance point to progress in poverty reduction. During the period under review, economic performance made modest progress with an annual growth of GDP per capita of 1.3 percent, implying a decline in poverty of around 2 percent, to about 45.6 percent.1 This indicates that poverty reduction accelerated in the reporting period (-1.2 percent per year) compared to the 2006-2011 period (-0.7 percent per year). Unfortunately, crop

1 This assumes a growth elasticity of poverty of -0.6 for the period 2006 to 2011, and assumes that the relationship between income growth and poverty reduction works the same way for the period up to 2014.

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production declined in 2013 due to erratic rains, which were again seriously delayed in 2014, so the well-being of the bottom 40 percent may not have improved, despite the implementation of a number of emergency programs.

5. In 2014, the Government through the PSE increased its focus on accelerating poverty reduction and boosting shared prosperity. In the agriculture sector, increasing access to credit is an important part of the poverty reduction program. Senegalese producers, processors and traders face a number of challenges when trying to obtain financing, including substantial production seasonality, weather and policy risks, quality and storage issues, and the inability to offer collateral. The government is working with the WBG to introduce a full-fledged warehouse receipt system backed by a proper legal and regulatory framework, in addition to supporting the warehousing industry. 6. The Government launched a cash transfer program in 2013 and has provided transfers to over 100,000 poor households so far with an objective of reaching over 300,000 households by 2017. The Bank has launched a new project to support this initiative. A second project supports the health sector, including the introduction of a universal health insurance scheme and strengthening of the nutrition program.

2.2 CHANGES IN KEY MACROECONOMIC AND DEBT DEVELOPMENTS

7. The Senegalese economy remains vulnerable to external and domestic shocks. A challenging international context coupled with climate shocks, oil price volatility, the outbreak of the Ebola Virus Disease (EVD) in the sub-region, combined with slower than expected policy implementation in the energy and agriculture sectors continue to depress growth. In 2013, the economy fell short of initial projections, with a real GDP growth rate of 3.5 percent. Erratic rainfall once again led to a disappointing harvest, with cereal production falling by 12 percent. The secondary sector also suffered a decline in output of 1.5 percent, while services continued to drive the economy, expanding by 6.4 percent. For 2014, the real GDP growth rate is estimated at 4.5 percent, a slight but encouraging acceleration in spite of the negative effects of Ebola and another poor harvest.

8. The authorities have increased their medium-term growth target for 2015-2018 from 5 percent of GDP to 7-8 percent in the PSE, which is higher than the CPS growth target. Growth has been less broad-based than expected, with services playing an especially large role, while the agriculture and industrial sectors have lagged. Achieving the ambitious PSE target depends on the implementation of an upgraded reform agenda for improving investment climate and the launch of a large-scale and well-designed public investment program. The authorities have recently recognized that it will take a little longer to accelerate economic growth, due to the gestation period for new projects and the effect of Ebola. Therefore, the GDP growth projection for 2015 has been lowered from 6.7 to 5.4 percent.

9. There has been progress on the fiscal consolidation front. The fiscal deficit as a percentage of GDP was reduced from 6.7 percent in 2011 to 5.9 percent in 2012 and to 5.5 percent in 2013, in spite of lower than expected tax revenues. Revenue collection improved in 2014; the authorities estimated the deficit at 5.1 percent, in line with the IMF-supported program. The authorities are committed to maintaining fiscal discipline to preserve long-term debt sustainability; the deficit is projected to fall to 4.6 percent in 2015. At the request of the IMF, the authorities have delayed investment projects totaling 0.6 percent of GDP; they will be launched once satisfactory feasibility studies have been completed. Several of these projects involve transport infrastructure, for which the Bank will provide advice.

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10. Debt dynamics remain unchanged. Public debt has risen modestly and is projected to have peaked at 53 percent of GDP in 2014. This ratio is expected to start declining in 2015 as the GDP growth rate exceeds the fiscal deficit as a share of GDP for the first time in many years. Last year the Government successfully launched a US$500 million Eurobond at a 6.5 percent interest rate—which was oversubscribed—as well as an innovative Islamic bond, or Sukuk. Based on the Debt Sustainability Analysis (DSA) for Senegal, the risk of debt distress remains low. However, there is a risk that debt will rise if the ambitious GDP growth targets are not achieved. The authorities are therefore being encouraged to commit to specific debt-to-GDP ratios, which will lead to fiscal adjustments in the event of such shortfalls.

2.3 EMERGING COUNTRY/DEVELOPMENT ISSUES

11. Senegal has maintained political stability and key development priorities remain unchanged. Since the 2012 presidential elections, there have been two other elections and opposition parties gained some ground in the July 2014 municipal elections. The political cycles have slowed the implementation of reforms, but development priorities have been preserved. The Government’s main mandate is to implement the new PSE launched in 2014, which is more comprehensive than the previous development plan in terms of: (a) concrete investment plans; (b) the clearly delineated role of the private sector in Senegal’s development; (c) improved focus on specific areas of policy reform, including land investment climate and energy; and (d) a clear monitoring framework. The PSE’s priorities remain consistent with those of the CPS (Figure 1), reflecting the coherence of analysis of Senegal’s key development constraints.

Figure 1: Alignment between Plan Senegal Emergent (PSE) 2014-2018 and CPS 2013-2017

Plan Senegal Emergent – PSE (2014‐2018) Country Program Strategy – CPS (2013‐2017)

Pillar 1 Stable macro-economic

framework

Economic Growth program

Pillar 2

Pillar 3

Social Protection

Access to Social Services

Public Institutions Reforms

National Governance Program

Local Development, Security and Peace building, Decentralization, Territorialisation of Public Policies, Regional Integration

Pillar 1 Accelerating Inclusive Growth and Creating Employment

Pillar 2 Improving Service Delivery

Foundation: Strengthening the Governance

Framework and Building Resilience

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12. The most pressing new issue for Senegal since the launch of the CPS is Ebola. Although the disease has left Senegal virtually unscathed—a single case was reported in August 2014 and was successfully treated—the total cost of curtailing its spread was about US$6 million (US$1 million for treatment and contact tracing, US$2 million invested by Senegal and partners in laboratory and facility strengthening, and US$3 million for surveillance, community outreach and coordination). This modest cost contrasts with the potential economic impact of Ebola, estimated at over 0.3 percent of GDP in 2015, mostly affecting the tourism sector value chain. Most hotels have recently been at around 30-40 percent occupancy rate, and more than 7000 tourist cancellations have been recorded as of the end of 2014. Ebola also impacts the health system, and the Government is working to isolate the regular health systems from Ebola treatment facilities.

13. The decrease in oil prices is expected to have a net positive impact on Government revenue. Tariff compensation to SENELEC (Société Nationale d’Electricité) —the energy utility—is likely to decrease, while tax revenues from imported crude oil and other petroleum products are also expected to decrease by a small amount. In the medium term, fiscal pressures are likely to increase with the doubling of investment, particularly in transport infrastructure, under the PSE. Key priorities for the Government in this area will be to establish a sound financing plan consistent with budget constraints and macroeconomic stability; conduct technical and financial feasibility studies for these projects;2 and isolate these projects from political pressures to the maximum extent possible.

III. SUMMARY OF PROGRAM IMPLEMENTATION

3.1 PORTFOLIO PERFORMANCE ISSUES

14. The current active WB portfolio for Senegal is performing well, and is aligned with the key CPS and PSE priorities. The portfolio has zero problem projects, zero commitments at risk and a disbursement rate on track to reach the 25 percent annual disbursement target for FY15. The size of the portfolio has increased from 20 projects (14 national and 6 regional) at the beginning of FY13 to 23 projects at the end of FY14 (16 national and 7 regional). Total IDA commitment increased from US$160 million in FY13 to US$424 million in FY14, thanks to four regional projects that added US$213.5 million in regional IDA and IDA guarantees. The current active portfolio amounts to US$1.1 billion (US$790.4 million in national IDA plus US$288.5 million in regional IDA and IDA guarantees).

15. The IFC portfolio as of end of February 2015 was US$143 million, including US$95 million in infrastructure. This represents a 57 percent increase from the end of FY12. The portfolio recorded US$99 million in new commitments during this period (this figure excludes amounts under the Global Trade Finance Program). There is no non-performing loan (NPL) since FY12 and only US$6 million (5 percent) are currently undisbursed for more than 1 year. MIGA commitments stood at US$132 million at end January, 2015. The Bank is proposing an amount of US$554.7 million of new commitments for Senegal for FY15-17, including IFC and MIGA.

16. Portfolio implementation challenges have been tackled through innovative approaches, with some encouraging results. Currently, the portfolio includes five projects rated moderately satisfactory (MS), with the ratings affecting the Project Development Objectives (PDOs) and Implementation Progress. The team is working closely with the Government and the Development

2 The IDA Public Financial Management TA project financed the preparation of guidelines for the economic analysis of projects but capacity to apply the guidelines remains weak.

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Effectiveness Group to review PDOs during project preparation and implementation. The Bank team is also encouraging early restructurings to reflect changes in Government priorities as reflected in the PSE. In relation to Implementation Progress, effectiveness conditions for new projects have been eliminated; and there is an increase in the use of Project Preparation Advances (PPA); these two factors have substantially improved portfolio performance in 2014. It is also important to note that the Government aims to mainstream all new projects into the administration, thereby eliminating Project Implementation Units (PIUs).

17. There is a need to accelerate the pace of project implementation. As lending increased, disbursement rates decreased from 26.1 percent in FY13 to 22 percent in FY14, mostly due to procurement issues. To accelerate disbursements, the Government, with support from the Bank over a two-year period, approved a new Procurement Code in September 2014; this included an increase of the thresholds for contract approvals. Monthly project procurement updates are now shared with the Ministry of Economy, Finance and Planning, the Service Delivery Unit in the Office of the President, and relevant sector ministries. As a result, procurement delays have been reduced from months to less than three weeks. However, the integrity of the new Code may be affected by the provision allowing for unsolicited bids. The Bank has proposed that all contracts arising from unsolicited bids be audited at the end of every fiscal year.

18. The creation of the Service Delivery Unit at the President’s Office to monitor the progress of priority PSE projects has strengthened program monitoring and implementation. The unit provides quarterly reports on priority projects directly to the President, who personally oversees their implementation and chairs quarterly meetings with the relevant ministries to focus attention on results and facilitate collaboration across sectors. The CPS has also benefited from this presidential coordination process, which has helped to launch CPS supported reforms in the energy, education, agriculture, health, social protection and flood management sectors. To help support and mainstream the coordination process, the Bank has added a component to the Public Financial Management Strengthening technical assistance project.

19. The Bank’s knowledge services portfolio in Senegal is helping to inform the implementation of the PSE and the CPS. The portfolio includes two new important pieces of analytical work, on decentralization and on peanut sector reform, which will help inform the dialogue on agriculture policy and subsidies, on decentralization, and on regional development. A land governance study and an Agriculture Public Expenditure Review, both completed, have informed the innovative agriculture project under CPS Pillar 1. A Skills for Job Creation and Creativity study, informed projects in the education sector under Pillar 2 and the Audit of Resources and Expenditure of Universities study has led to an acceleration of education reforms under Pillar 2. In addition, CPS implementation has been supported by technical assistance for coastal adaptation, safety net assessment, ICT for transformation, governance policy planning and a review of the SENELEC business model.

3.2 EVOLUTION OF PARTNERSHIPS AND LEVERAGING

20. To accelerate CPS implementation, the Bank is deepening existing CPS partnerships, and is developing new partnerships with the Korean Development Agency (KOICA) in the agriculture sector and with USAID’s Power Africa in the energy sector. On the regional front, two new Sahel projects not included in the original CPS—the Regional Sahel Pastoralism Support Project (US$250 million, of which US$30 million is for Senegal) and the Sahel Irrigation Initiative Program—are being prepared, in close collaboration with Comité Permanent Inter-Etats de Lutte

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Contre la Sécheresse dans le Sahel (CILSS) and Alliance Global pour l’Initiative Résilience (AGIR). In addition, as part of the Sahel Adaptive Social Protection regional program supported by DFID, a new project is being prepared to complement the national conditional cash transfer (PNBSF) with adaptive and productive activities for the poorest. IFC has recently launched the Warehouse Receipt System project in Senegal, a three-year intervention aiming at unlocking the value of agricultural commodities funded by the Government of Japan, the Global Agriculture and Food Security Program and the WB Financial Sector Reform and Strengthening (FIRST) initiative.

3.3 OVERVIEW OF PROGRESS TOWARD ACHIEVING CPS OBJECTIVES BY MAIN FOCUS AREA

21. Progress toward achieving CPS objectives is well on track in most areas, but some objectives need revisiting, especially in the private sector area to improve alignment with the government program. The Results Framework in Annex 3 records evidence of progress against the objectives and indicators established in 2013. Of the 15 outcome indicators, 7 have been strengthened by adding new activities. The Bank program has also been modified, accelerated and changed to respond to the priority projects and reforms in the PSE. The main modifications to each building block of the strategy are discussed in Section V.

Foundation: Strengthening Governance Framework and Building Resilience

22. Progress in project implementation is on track toward achieving the objectives. All projects underpinning the foundation are being satisfactorily implemented but the government needs to pick up the pace: including improved public sector accountability, sustainable land and water management, improved drainage and flood prevention in selected urban areas, and reduced vulnerability of the population in the Casamance region.

23. Implementation of reforms to the overall governance environment has yielded mixed results. Access to budgetary information has improved, with monthly publication of budget execution tables and the availability of information on procurement practices. Senegal has joined the Stolen Asset Recovery Initiative and has adopted a Law on Illicit Enrichment. Government ownership of the resilience agenda has facilitated implementation of flood and urban management projects. Nevertheless, despite improving its ranking on the Ibrahim Index on African Governance (IIAG) from 15th in 2011 to 9th in 2014, some governance weaknesses persist. The asset declaration by all top government officials has not been completed, governance reform of the flood management agencies is still pending and the recent adoption of a provision for sole sourcing in the Procurement Law needs close monitoring during implementation.

Pillar 1: Accelerating Growth and Employment

24. Progress has been faster than expected in some areas and expected results have been adjusted for consistency with the PSE. The programs in this pillar correspond to more than 75 percent of the PSE activities and amount to 45 percent of the CPS activities by lending volume. Overall, all seven objectives in this pillar are on track. Since the PSE was established, three objectives and results under this pillar have been modified to reconcile them with the new emerging priorities in the PSE (see Section V).

25. Senegal has significantly improved its business environment exceeding planned targets by being among the top five reformers in the Doing Business (DB) 2015 report. Senegal implemented regulatory reforms in six of 10 areas measured by Doing Business. Senegal’s ranking improved from 171st in DB2014 to 161st in DB2015. In the energy sector, the quantity, quality and access have improved somewhat after many years of decline, but more remains to be done.

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Agricultural productivity is improving and the Government aims to meet its rice self-sufficiency target of 1.6 million MT of paddy by 2017.

26. IFC is on track to achieve its objectives set in the CPS to support Pillar 1, including (i) increasing access to finance through its support to two microfinance institutions and the ongoing implementation of the new regional private credit bureau (PCB) with BCEAO which is a major milestone between the WBG and the BCEAO; (ii) supporting the private provision of infrastructure in power and transportation with one new IPP committed and another one in progress, and successful completion of the Dakar – Diamniadio toll road (on time and budget) with a new commitment for the extension from Diamniadio to the new airport, (iii) supporting the agribusiness value chain with one new direct investment and one guarantee to develop commodities warehouse financing with a commercial bank under its Global Warehousing Finance Program; and (iv) supporting together with the Bank the Government to improve investment climate with a notable improvement in Doing Business ranking. The objective of providing capacity building to SMEs is expected to be achieved under a newly approved SME and Value Chains Solutions (VCS) program which replaces the recently completed SMS Africa Program.

27. In the energy sector, the quantity, quality and access have improved somewhat after many years of decline, but more remains to be done to accelerate the transition to a more diversified energy mix. Developing conventional IPPs has been the priority in order to address the immediate needs for additional capacity. But in the medium term there is an opportunity to support the development of the renewable sector, including gas and solar. The Government would like to competitively tender the development of solar IPPs within 18-24 months, with a commercial operations date before end 2016.

Pillar 2: Improving Service Delivery

28. Activities continue to support progress toward the achievement of MDGs, although it is clear that most MDGs will not be achieved by 2015. For instance, the recent Demographic and Health Survey (2011) revealed that Senegal has significantly reduced under-five-year child mortality and is on its way to reaching that MDG. But the country will likely miss the maternal mortality MDG. Furthermore, halving the poverty rate, the first MDG, will not be possible. Also, based on the recent census, the primary Gross Enrollment Rate (GER) is only about 80 percent at the national level, and the MDG on primary school completion is unlikely to be reached due to high dropout rates.

IV. EMERGING LESSONS

4.1 MAIN LESSONS FROM PORTFOLIO AND PROGRAM IMPLEMENTATION AND PERFORMANCE

29. Adequate consultation during the preparation of the CPS including joint IFC-WB collaboration is critical. The effective and adequate identification of key Government priorities based on an extensive consultative process helped to minimize changes to the CPS even after the new Government program, the PSE, was developed. In fact, the CPS informed and influenced the PSE, and as a result, very few changes to the CPS were needed.

30. Project effectiveness issues and implementation delays require more focused and timely corrective actions. In a few instances, task teams and Government moved slowly on project effectiveness after approval by the Board. As a corrective action, fewer conditions of effectiveness may be needed, along with making them Board conditions in the future. In the same vein, teams are

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encouraged to use project preparation funds to speed up project implementation after Board approval, in close collaboration with the authorities.

31. Regional projects need to be better leveraged. A number of regional projects are being prepared and implemented under this CPS, resulting from the substantial increase of Senegal’s IDA allocation. These regional projects have proved to be important vehicles for policy dialogue on a number of sub-regional issues; however, they have been more difficult to supervise.

32. Results monitoring needs to be strengthened. Monitoring the implementation of policy reforms has proved difficult due to the cross-cutting nature of these reforms, for which strong leadership is essential. This was the case for the DPO implementation. A culture of monitoring and evaluation still needs to be entrenched in Government practices, and with the PSE and new delivery unit established in the Office of the President this may improve.

33. From the Bank’s perspective, an emerging issue will be to identify, in the Systematic Country Diagnostic, the poverty and shared prosperity linkages of Senegal’s ambitious public expenditure and investment program, in order to inform the next Country Partnership Framework (CPF).

4.2 LESSONS FROM EXPERIENCE IN OTHER COUNTRIES/REGIONS APPLICABLE TO SENEGAL

34. The Government, the World Bank and other development partners have supported numerous South-South exchange events. For example, prior to the launch of the Government’s Safety Nets project, a team traveled to Brazil to learn from Brazil’s experience in implementing social safety nets programs. Under the regional Higher Education and Centers of Excellence project, Government teams traveled to South Korea and India to visit universities and regulatory bodies. For the West Africa Agricultural Productivity Project, Government teams traveled to China, India and Brazil to learn from their improving agriculture productivity initiatives. As part of the Land Governance Assessment Framework, exercise teams from Senegal visited The Gambia and Mauritania to learn and exchange experiences. In tourism, the Bank is facilitating exchanges between Cabo Verde, Gambia and Senegal in order to assist Senegal in the development of its tourism sector; a MOU has been signed by the three countries to foster collaboration. With the onset of the Ebola epidemic, the World Bank organized several video conferences with the health ministers of Senegal, Cote d’Ivoire, Mauritania, Guinea, Gambia, Guinea-Bissau and Mali to share their experiences dealing with the consequences of the outbreak and preventing the spread of the disease.

V. ADJUSTMENTS TO THE COUNTRY PARTNERSHIP STRATEGY

35. Objectives of the CPS program remain valid at mid-term. As detailed below, progress towards achieving the CPS objectives is on track overall, with some minor adjustments to few outcomes and milestones. On the Foundation pillar - Strengthening the Governance Framework and Building Resilience- progress is on track with all outcomes heading in the right direction and some milestones already achieved. On pillar one - Accelerating Inclusive Growth and Creating Employment - overall progress has been faster than expected with all but one outcome making significant progress towards achievement of their milestones. On pillar two - Improving Service Delivery - all outcomes are making satisfactory progress . Annex 3 records evidence of progress against the objectives and milestones established in 2013.

36. A new Country Partnership Framework (CPF) will be prepared in FY17 after key analytical work and the Systematic Country Diagnostic (SCD) are completed. As a result, this PLR does not propose to extend the CPS. In preparation for the SCD, work is underway to finalize a

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new and comprehensive poverty diagnostic, an investment climate survey, and an updated Public Expenditure Review for priority PSE sectors.

37. Adjustments to the current CPS are discussed in detail below.

Foundation: Strengthening the Governance Framework and Building Resilience:

38. The adjustments under this pillar include:

(a) Adoption and implementation of the Asset Declaration Law. The governance framework has been improved by the creation of the National Office for the Fight Against Fraud and Corruption (OFNAC - Office national de Lutte contre la Fraude et la Corruption), in charge of the management of asset declarations. While the Law and implementation decrees on asset declarations have been adopted—a first in West Africa—implementation is lagging. There is debate on the scope and coverage of the Law, and some ministers have not yet submitted their asset declarations. However, all are expected to comply in the near future. The Bank program has been modified to provide some technical assistance to the new agency, through the Economic Governance project.

(b) Increased focused on Casamance region. The Government is focusing on improving connectivity and increasing agriculture productivity in conflict-affected areas. The Bank’s Casamance Development Pole project has been adjusted to focus on improving road infrastructure. Twenty five kilometers of road situated in the epicenter of the conflict region will be constructed and 175 kilometers of rural roads and 350 kilometers of local roads connecting farms to markets will be rehabilitated. In terms of rice production, 5000 hectares of land will be irrigated, and improved seeds will be provided to communities in the region to help improve productivity, food security and incomes. These new interventions in the poorest regions of Senegal, where more than 70 percent of the population lives below the poverty line, are expected to directly impact poverty reduction and improve the resilience of those communities.

(c) Acceleration of the decentralization policy. Senegal has been engaged in the third major reform of its decentralization policy, called "The Third Decentralization Act," since March 2013. The Law simplifies the local government administrative architecture by transferring responsibilities directly to the lowest levels of service delivery, the local communities, and empowering local leaders by increasing their fiscal reach. The Bank is supporting this effort with a number of advisory, analytical, and technical assistance activities.

Pillar 1: Accelerating Growth and Employment

39. The adjustments under this pillar are:

(d) Improving the legal environment for business. The Government is accelerating and deepening reforms in this area and the CPS has been adjusted accordingly. The Economic Governance Project has been restructured to focus on important binding constraints for the private sector, such as contract enforcement, investor protection and mediation. The project also supports improvements in the overall efficiency of the commercial justice system, which should reduce delays in deciding cases and in issuing construction permits. One outcome (5 - Delay in treatment of cases at the Tribunal Regional de 1ere Instance de Dakar reduced from 185 days in 2012 to 140 days by 2017) under this pillar was dropped and replaced with “Increase in the number of decisions taken per year at the Tribunal Régional Hors Classe de Dakar on Commercial Cases. Overall, the CPS has increased resources to the component

10

supporting doing business reforms, including through increased technical advisory services from the IFC.

(e) Focus on increasing employment. An important new addition to this pillar is the preparation of a Growth and Competitiveness Project (US$50 million) which will support the PSE’s focus on the tourism sector. Project preparation is being accelerated to help mitigate the impact of Ebola on the sector. The project will improve access to export markets, support tourism and notably, finance a beach renovation program for the main beach resort of Saly to further improve the business environment. Support to tourism is important from an economic development perspective. In 2013, tourism and related activities generated 16 percent of export earnings, 6 percent of GDP, and close to 10.2 percent of all employment, including jobs for the unskilled and for women.

(f) Changing the energy mix and improving operational efficiency. The energy sector remains an important binding constraint to Senegal’s growth. To improve the energy mix and reduce the costs of operating a business, the Government intends to increase its renewable energy capacity. The CPS has been modified to include a new 50MW solar energy project, to be developed together with IFC. The Joint Independent Power Producer (IPP) energy implementation plan with IFC is proceeding smoothly.

(g) Improving mobility in urban areas and enhancing job creation. As part of the PSE, the Government has requested additional labor-intensive investment in road infrastructure. In response, the CPS has been amended to provide additional financing to the Urban Mobility project. The project will support construction of 20 km of paved urban roads and 75 km of rural roads.

(h) Dialogue on institutional framework for rural electrification. The targets under the CPS for rural access to electricity have been met; however, the 60 percent rural electrification target of the PSE cannot be met without considerable adjustments to the institutional framework. Through the Sustainable Energy for All Project, the Bank is working with IFC and other donors to strengthen the institutional framework for rural electrification. The CPS has been modified and an activity added to undertake a technical study of the institutional setting and provide recommendations to the Government. With more than 70 percent of the rural population without access to electricity, increased access would help improve livelihoods.

(i) Improving agricultural productivity. Lack of transparency in the distribution of input subsidies continues to undermine sector performance and costs the Government more than one percent of GDP. To address this issue, a new result indicator—the use of the e-subsidy scheme—has been added to trace inputs provided to one million farmers by the end of the CPS period. If successful, this scheme could substantially reduce leakage and provide an agriculture productivity registry, which would in turn provide smallholder farmers with improved access to finance.

(j) Improving access to finance in the agricultural sector. Access to credit is one of the key strategic priorities highlighted in CPS, Agricultural actors complain about the high cost of credit, the high collateral requirements, and the fact that banks are reluctant to take risks. The Warehouse Receipt System (WRS) project (P600203) was launched in June 2014 and will address the issue by supporting the establishment of a legal and regulatory framework, the provision of technical expertise and assistance to the WRS regulatory unit during start-up

11

phase, sensitization and training of relevant stakeholders, assistance to the warehouse industry and stakeholder engagement for a warehouse receipts trading platform. IFC has also committed a new investment in agribusiness with Kirene and in providing advice/support in implementing a backward vertical integration project to source and process mango pulp locally as raw materials for its juice production (in lieu of importing juice concentrates as is done currently). IFC is also reviewing a new investment proposal to support Kirene’s regional expansion in West Africa.

Pillar 2: Improving Service Delivery

40. Important changes under this pillar are the roll-out of the Government’s Universal Health Coverage strategy—the Couverture Maladie Universelle (CMU) —the response to the Ebola outbreak and the Adaptive Social Protection Program (under preparation).

a. Universal health coverage. Launched in 2012, the universal health program aims to make key health services more affordable for the entire population through the creation of mutual funds, which are heavily subsidized (50 percent of premium costs) by the Government. So far, progress on the creation of these community-based health insurance schemes has been very slow. Only 170,000 persons are currently covered (compared to targets of 2.4 million in 2014 and 8.6 million in 2017). To radically speed up implementation, the Government has recently decided to subcontract the creation of these schemes to NGOs. The Health and Social Financing Project is funding this process in four regions. In conjunction with the CMU’s Equity Fund, which will ensure that the households identified as poorest will pay neither a premium nor copayments, the program is expected to improve access to key health services, especially among the poor, and ensure that they no longer face catastrophic health expenditures.

b. Ebola outbreak. The one Ebola case in Senegal in August 2014 highlighted the need for the health system to rapidly develop a health information system with the capacity for epidemiological surveillance and contact tracking. To support these efforts, the Bank has reallocated US$1.2 million from the recently approved Health and Social Financing Project. Bank support targets high-risk regions as well as the central level. Specific activities include skills building, community monitoring, epidemiological monitoring, strengthening of health inspection, border management, communication and advocacy, follow up/evaluation, coordination, and support and supervision at the central level. In addition, the Economic Governance Project is also funding a TV information Spot (US$50, 000), to help the tourism sector mitigate the economic impacts of Ebola, which could hinder economic growth and progress in poverty reduction. Furthermore, under the Growth and Export Development Project, under preparation, US$400,000 will be allocated to finance a continuation communication campaign to offset tourism impacts, and a study to estimate the economic impacts of Ebola on tourism and the Senegalese economy as a whole, and recommend corrective actions.

c. Adaptive Social Protection Program (ASP): Adaptive social protection programs are flexible programs that can protect poor households from climate and other shocks before they occur and by scaling up to respond to extreme events when they hit. As part of the Sahel Adaptive Social Protection regional program supported by DFID, US$11 million are available and a project is being designed to complement the National Conditional Cash Transfer (Programme National de Bourses de Sicuriti Familiale- PNBSF). The exact design of the project will be developed with Senegalese counterparts in the coming months. In general, the activities will support adaptation of early warning systems, defining a national strategy for social protection response

12

to crises, setting up a national registry of vulnerable households to promote rapid response to crises and emergencies, supporting the design and implementation of adaptive safety net programs, and supervision, among other activities.

41. The revised CPS FY13-17 lending and AAA program (including IFC investments and knowledge products) is indicated in Table 1.

VI. RISKS TO CPS PROGRAM

6.1 REVISED SYSTEMATIC OPERATIONS RISK-RATING TOOL

Risk Categories Rating (H, S, M or L) 1. Political and governance M 2. Macroeconomic M 3. Sector strategies and policies M 4. Technical design of project or program M 5. Institutional capacity for implementation and

sustainability M 6. Fiduciary M 7. Environment and social L 8. Stakeholders L 9. Other Overall M

42. Overall, the risks to the program identified in the original CPS are still valid. However, due to the Ebola outbreak in the sub-region and the Government’s ambitious investment program, the macroeconomic risk though moderate needs to be watched. The preliminary estimate of the impact of Ebola in 2014 is a downward revision of GDP growth by 0.2 percentage points, and 0.3 percentage points in 2015, reflecting the fact that the majority of the 2014/15 tourism season falls in 2015. The portfolio also includes three projects which require careful supervision and cross-sectoral expertise: the Programme de Développement Inclusif et Durable de l’Agribusiness au Sénégal (PDIDAS) project, which is testing a new land tenure approach and requires careful management; the Growth and Export Development project, which will work on beach renovation to promote tourism; and the Casamance project, which is in a conflict-affected zone.

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Table 1: Revised CPS Lending and AAA Program for FY13-173

3 Using the exchange rate as of 03/12/2015. The actual exchange rate for each operation depends on the applicable prevailing rate at the time of approval. The amounts shown in outer years are indicative only. Actual allocations will depend on: (i) the total IDA resources available; (ii) the country’s performance rating, per capita GNI, and population; (iii) the terms of IDA assistance (grants/credits); (iv) the allocation deductions associated with MDRI annual debt service foregone as applicable; (v) the performance, other allocation parameters, and IDA assistance terms for other IDA borrowers; and (vi) the number of IDA-eligible countries

World Bank Financing IDARegional

IDA/OtherIFC Investments World Bank Key knowledge products

FY Project US$M US$M US$M

Quality Basic Education 20 GTFP (Trade Finance) 15.7 Safety Net Assessment TA

Electricity Sector Support Project 85 MCS (Microfinance) 0.4 ICT for Transforming Senegal (TA -TF funded)

GGSC-1 DPO 55 InfraVentures Tobene IPP 1 Nutrition Policy and Partnership TA

2013 Study on agency rationalization (Reciepient Executed)

Value Chain analysis of public producrement

FY13 Subtotal 160

FY13 Total FY13 IFC Total 17.1

GGSC-2 DPO 30 GTFP (Trade Finance) 18.2Programmatic Public Sector AAA: Asset Declaration

Casamance Development Pole Project 40 Kirene 6.8 Public Sector Performance AAA

Sustainable and Inclusive Agribusiness Project

80GWFP BICIS (Warehouse Financing)

20Sustainable Energy for All AAA (TF)

Senegal Health & Social Financing 20 20 TA to begin setting up the CAPSU

Senegal Safety Nets Operation 40.5Barriers to intraregional trade and Senegalese Exports (regional study)

Senegal Banda Gas to Power Guarantee 99Index-Based Agricultural Insurance TA-TF funded

Senegal River Basin Multi-Purpose Water Resources Development Project 2

58.5Private Sector Water and Sanitation TA- TF funded

Senegal Taiba Ndiaye Independent Power Producer Project

40Senegal growth and spatial development strategy

Africa higher education centers of Excellence

16WB/IFC investment climate

LGAF Assessment

FY14 Subtotal 210.5 213.5 Regional transport interconnectivity piece

FY14 Total FY14 IFC Total 45

SN:Public Res.Mgt Strengthening -Add'l Financing

30 SENAC (Extension of Tollroad) 33.3Statistical Capacity TA

Skills Development TVET 35 Tobene IPP 38.1 Access to Finance for SMEs ESW

SN-Stormwater Mgt & Climate Change-Add'l Financing

35 GTFP (Trade Finance) 1.8 Poverty and Gender Policy Notes

Water and Sanitation (AF) 70ICA with a focus on employment, agroindustry, tourism and competitiveness

Transport and Urban mobility - additional financing

50 PER Education

GGSC-3 DPO 60 Education Service Delivery Indicators

Regional Pastoralism Project 13 26 Financing revenue for the city of Dakar TA

Regional OMVG 15 30 Programmatic TA on PSE M&E

FY15 Subtotal 308 56 Peanut sector reform

FY15 Total FY15 IFC Total 73.2

GGSC-4 DPO 30 Cap de Biches IPP TBC Trade Policy Note

Growth and Exports Development Project 50 GTFP TBCSustainable Energy for All study focusing on improving Renewable Energy institutional

Solar Energy Project 15Urbanization Review and Spatial Development Study

Regional Dakar-Bamako Railway 40 80 Financial Sector Dev. ESW

Regional OMVS 16.7 33.4 Jobs and Youth AAA

Decentralization and Local Governance ESW

FY16 Subtotal 151.7 113.4

FY16 Total

GGSC-5 DPO 30 GTPF TBC Mining Diagnostic

Financial Sector and Justice 30

Decentalization or Urban Project TBD

Human Development project TBD

FY17 Subtotal 60

FY17 Total

projects in Italics are regional projects

2017 (proposed)

2014

2016 (proposed)

160

424

364

265.1

60

2015

IFC Knowledge Products

Fides (Microfinance TA)

SMS Africa (SME Capacity Building)

PPP Workshop

PlaNet Guarantee (Weather Insurance)

SMS Africa (SME Capacity Building)

UEMOA Credit Bureau

OHADA Reforms

PlaNet Guarantee (Weather Insurance)

OHADA Reforms

Fides

IC Reforms

Health in Africa

Warehouse Receipt System

CIDR/PIMAS (micro health insurance)

Microcred (Rural Microfinance)

Patisen TA (Resource Efficiency)

SSA Credit Bureau (WAEMU region)

Health in Africa

Warehouse Receipt System

SVC Africa (SME Capacity Building)

PPP Desalination Project

Microcred (Rural Microfinance)

SSA Credit Bureau (WAEMU region)

SVC Africa (SME Capacity Building)

PPP Desalination Project

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Annex 1-Updated CPS Results Matrix

Country Strategic Objectives (SNDES 2013)

Issues and Obstacles CPS Outcomes Milestones Program instruments

Foundation: Strengthening the Governance Framework and Building ResilienceImprove efficiency and effectiveness of public finance management Fight corruption and non-transparency in public sector administration Strengthen monitoring and evaluation and statistic systems Building Local Institutions and implementing a Sustained and Effective Decentralization

Improving Access to Basic Services and improving Urban Management and Competitiveness

Weak performance framework in public sector for accountability for results Weak process of planning, evaluating, and accountability for results in public sector development programs Weak link between strategic policies and priorities, and the budget Difficulty in the interfacing between the various financial management information systems

1. Improved public sector accountability - Delay in the publication

of the Audit Court annual report reduced from 34 months in 2012 to 12 months by 2017.

- Percentage of holders of public office (Ministers) that make a declaration of assets increased from zero to 100 % by 2017

- Time for the adoption and

public disclosure of budget review act (lois de reglement) after the end of fiscal year reduced from 18 months in 2012 to 6 months by 2017

- All ministers and senior level Government officials declare their assets to OFNAC from zero in 2012 to 100% by 2017

Percent agencies with performance contract increased from 0% in 2012 to 50% in 2017

Five new hospitals have performance agreement signed by 2017

Computerized PFM information system reviewed (completed)

M&E Framework is operational in sector institutions and at center of government and supporting decision making process by 2017

Operational results-based M&E making framework established at national and key sectors by 2017 Performance-based budgeting framework adopted by 2017

Senegal achieving EITI compliance status in calendar year 2015 Annual Performance audits (including technical audits) done by the authority(ies) in charge, for at least 5

On-going Financing Local Authorities Development

Program (FY07) Public Resources Management

Strengthening TA and AF (FY11)

Senegal Review of Urban and Spatial development

Planned Financing GGSC DPO Series (FY15-17)

Indicative AAA Programmatic Public Sector

AAA: Asset declaration PFM Strengthening TA (FY14) Poverty and Gender Report Spatial Development Study Urban review and Statistical

Capacity Development Public Sector Impact on

Education Service Delivery Value chain analysis of public

procurement (FY13) Decentralization and Local

Governance Support ESW (FY16)

On-going Financing Stormwater Management and

Climate Change Adaptation (FY12) & AF (FY15)

Sustainable Land Management (FY10)

Financing revenue for the city of Dakar TA

15



Prevent and reduce the risk of major disasters Flood prevention, Disaster Risk and Sustainable Land Management, and Climate Change Adaptation Reduce the impact of climate change on ecosystems

Lack of coordination and capacity in disaster risk management Development/Urban planning which does not integrate Disaster Risk Management and Climate dimension Weak capacity to manage and maintain urban drainage systems. High vulnerability of youth ( women and men) in Casamance

2. Sustainable land and Water Management - Additional area with

SLWM practice in targeted areas of intervention: 7,000 ha by 2017

3. Improved drainage and

flood prevention in selected urban areas - Additional area protected

against recurrent flooding in Dakar by 2017: 460 ha by 2017

4. Reduced vulnerability of population and improved infrastructure in Casamance region

- Additional people provided with income generation opportunities in Casamance reaching 200,000 by 2017

Contracting Authorities by 2017 Climate resilient and integrated coastal zone management plan developed (to be coordinated with EU) (Completed) Urban plans integrating flood risks in Peri-urban Dakar developed (Completed) 150,000 Number of young women and men trained for jobs in Casamance region by 2017 150km roads rehabilitated by 2017

Agricultural Markets and

Agribusiness Development Project

Sustainable and Inclusive Agribusiness Project (FY14)

WA Senegal River Basin Water Resource management project (FY14)

Casamance Development Pole Project (FY14)

Indicative AAA Climate Change ESW LGAF Assessment 3a- Coastal zone vulnerability

to climate change study ESW

16



I. Accelerating Inclusive Growth and Creating Employment

Improve investment climate and access to financial and non-financial services for SME

Weak business environment (Senegal ranked 154th of 183 countries )

5. Improved investment climate for private sector

‐ Increase in the number of decisions taken per year at the “Tribunal Régional Hors Classe de Dakar on Commercial Case

‐ The target value of 1020 has been surpassed to 1397. Baseline was 947 in 2012.

‐ Reduced number of days required to obtain a construction permit reduced from 210 days in 2012 to 170 days by 2017

Systems for construction permit, registering property, and paying taxes processes (IC) implemented (Completed) OHADA uniform acts on company law and insolvency law reformed by 2016 New decree on mediation adopted and implemented (Completed)

On-going Financing Economic Governance Project

(FY10)

IFC – OHADA UA 2

IFC SMS Africa / IFC SVC Africa IFC - GTFP Ecobank Senegal

(27515) IFC – Senegal TA IFC - MC Senegal & MC Senegal

TA

Planned Financing GGSC DPO Series (FY15-17) IFC Investment climate project

(FY13-16) IFC - SSA Credit Bureau Program

(577627) Growth and export development

project (increased financing for tourism specific component) (FY16)

Indicative AAA : Mining Sector Diagnostic & CD Access to Finance for SMEs ESW Financial Sector Dev. ESW ICT for Transforming Senegal TA Investment Climate Assessment

Difficult access to finance for MSME Low levels of private investment in productive sectors Ebola epidemic in West Africa Affecting tourism

6. Improved access to finance for Micro, Small and Medium Enterprises

- Increased number of MSMEs getting credit to reach at least 30,000 by 2017

- Growth and job creation in tourism

WAEMU-wide regional Credit Bureau created by 2017 Capacity-building training provided to at least 300 targeted SMEs (SMS /SVC Africa) by 2017

17



Increase agricultural production and productivity Develop markets for horticultural and agricultural products

Limited access to labor-saving technologies and equipment Limited access to financial (credit and insurance) and output markets Weak production infrastructures (storage, road, irrigation) High dependence on rain-feed agriculture High risk of land degradation from salinization and wind erosion Capacity to implement improved technologies is weak and inefficient

7. Increased agricultural productivity and marketing - Average yield of main cereals

increased from 1.5 tons/ha in 2012 to 3 tons/ha in 2017 for Millet and Sorghum, and from 2 tons/ha to 4 tons/ha for Maize.

- Horticultural (fruits & vegetable) exports increased from 24,000 tons in 2012 to 40,000 tons by 2017

- Number of beneficiaries of improved technologies of which 40% female o Baseline (2013): 80, 000 o Target (2017): 700, 000

- An e-subsidy platform designed and used for transparency and efficiency in the distribution of agricultural inputs: o Baseline: 20 000 producers registered in 2012 o Target: 1 million producers registered in 2017 and platform used

Area under new technologies increased from 40,000 ha in 2013 to 500,000 ha in 2017 Regional Agriculture research center of excellence established by 2017 Index-based insurance for natural disasters and weather risks provided to 66,000 farmers (GIIF) by 2017 Increased access to market to 1,000 SMEs/farmers (Patisen) by 2017 Rehabilitation of 7,400 ha of irrigated perimeters in the Senegal River Valley and 465 ha in the Anambe Basin by 2015

On-going Financing • Agricultural Markets and Agribusiness Development Project (FY06) • West Africa Agricultural Productivity (FY12) • WA Senegal River Basin Multi-purpose Water Resources Dev. I ( FY06) & 2 (FY14) Sustainable and Inclusive Agribusiness

project (FY14) • IFC - Global Index Insurance Facility Program/PlaNet Guarantee • IFC – Patisen • IFC – Kirene • IFC - Warehouse Receipt System Planned Financing • GGSC DPO Series (FY15-17) • IFC - Global Warehousing Finance Program (GWFP) BICIS (32394) Indicative AAA : • Index-Based Agricultural Insurance TA (FY14) • WA Trade & Agriculture ESW ICA with Focus on Employment, Agro industry, Tourism, and Investment

Sustainable management of fishery resources

The uncertainty over the sustainability of fish supply as a result of open access is the fundamental obstacle to increased investment in the

8. Improved sustainable management of fishery resources

- % of registered small-scale fishing vessels originating from within the coastal region

Freezing of the artisanal and industrial fishing fleets effective by the end of 2013 (completed) Private Associations of users in 12 sites along the

On-going Financing West Africa Regional Fisheries

Program APL-A1 ( FY10) IFC - Global Index Insurance Facility

Program/PlaNet Guarantee

Planned Financing

18



sector and greater value added along value chain

allocated with secure rights in the form of long-term and transferable permits.

Baseline (2010): 0 % Target (2017): 70%

coast supported to manage defined fisheries/fishing areas by 2017

IFC - Global Warehousing Finance Program (GWFP) BICIS

West Africa Regional Fisheries Program APL-A2

Indicative AAA : Index-Based Agricultural Insurance

TA (FY14) WA Trade & Agriculture ESW ICA

with Focus on Employment, Agro industry, Tourism, and Investment

Facilitate access to energy services

Poor reliability of electric services Weak energy production capacity and low level of access to electricity High cost of electricity is high, requiring unsustainable subsidies that crowd out fiscal space

9. A. Improved access to affordable electricity

- Cost of power generation reduced from CFCA 88/kWh in 2011 to CFCA 75/kWh by 2017

Liquefied natural gas feasibility study completed by 2015 123 MW of additional energy produced ( Tobene and GTi2 PPP) by 2016 80 MW Power generation imported from Mauritania by 2017 Action plan for renewable energy developed by 2015 50MW of Solar energy installed by 2017

On-going Financing PROGEDE II Energy Management

(FY10) WA Power Pool OMVS Felou

Hydroelectric Project (FY06) Electricity Sector Support ( FY13) Lighting Africa Program Taiba Ndiaye Independent Power

Producer Project (FY14) Banda Gas to Power (FY14)

Planned Financing Solar Energy Project (FY16) IFC - GTi2 Independent Power

Producer Project (FY16)

Increase access to electricity in rural areas

Access to electricity is very low for rural households (27 % in 2012)

9 B. Improved access to electricity in rural areas

- Additional people with access to electricity in selected areas of intervention reached 250,000 by 2017

Expected target by end 2015 by contract with the concessionaires for the current project including contribution from other donors reached 146,000 people)

On-going Financing PROGEDE II Energy Management

(P120629, FY10) WA Power Pool OMVS Felou

Hydroelectric P. (P094916, FY06) Electricity Sector Support (P125565,

FY13) IDA/IFC - Tobene IPP/PRG (FY14)

AAA

19



Sustainable Energy for All study focusing on improving Renewable Energy institutional framework

Develop road, railway, air, and port infrastructure in economic production zones

Reduced national transport infrastructure networks Unbalanced spatial distribution of roads between districts Limited Urban mobility conditions in the Greater Dakar

10. Improved mobility in targeted urban and inter-urban areas

- Transport time reduced on selected routes:

(i) Grandes Niayes Area from 3.5 hrs in 2012 to 2.5 hrs by 2017 and (ii) Between Dakar and Diamnidio from 1.5 hrs in 2012 to ½ hr by 2017

60 Kms of new urban/inter-urban roads constructed by 2017 Functioning institutional arrangement in place to manage the Dakar- Bamako railway by 2017 20 km of paved urban roads 75 km of urban roads re-habilitated by 2017

On-going Financing Dakar Diamniadio Toll Highway

(FY09) & IFC - SENAC Transport & Urban Mobility

(FY10) Local Authorities Development

Program (FY06) WA Air Transport II (FY09)

• Support to the Decentralization Reform in Senegal

Planned Financing Rehabilitation of Dakar-Bamako

Railway (FY16) Additional Financing to Urban

Mobility Project FY15 IFC - Extension of Dakar

Diamniadio Toll Highway to new airport (FY15 & FY16)

Indicative AAA Intraregional trade and Senegalese

Exports Policy support

Urbanization Review and Spatial Development Study

Expand access to professional training with close links to job market

Significant share of enterprises report skill shortages as an impediment to their business Of the population aged 15-59, only 15.5

11. Improved skills of labor force

- Enrollment in professional and technical training increased from 17% in 2012 to 30% by 2017 (at least 40% female)

6000 Number of intermediate level workers trained by 2017

On-going Financing Education For All FTI Catalytic Fund

(P116783, FY10) Tertiary Education for Results

(P123673, FY11) Quality Basic Education (FY13, IDA

& GPE) GPE Improving Learning Outcomes

(FY14)

20



percent had received technical or vocational training Recent trends in university enrolment and employment opportunities suggest a widening of the gap between skills with high demand and the education provided by public universities.

10,000 Number of beneficiaries of TVET in selected sectors by 2017 5 Number of TVET schools with PPP funding by 2017

Ministry of Education Capacity building TF (FY13)

Skills Development for Job Creation (FY15)

Planned Financing GGSC DPO Series (FY15-17)

Indicative AAA Multi-sector Labor Markets and

Human Capital Study (incl. Casamance Youth employment)

Education PER Update

Subregional Network for Results-based Education Sector Governance

II. Improving Service Delivery

Improve quality of education and learning outcomes Completion rate of primary school increased from 75% in 2012 to 90% in 2017

Low primary completion rate Low university internal efficiency: an average of 5 years to complete a 3-year degree Low quality in terms of leaning outcomes. Education system largely dominated by literature/arts discipline against scientific disciplines Lack of accountability on outcomes

12. Enhanced equity and quality of education

- Promotion rate at grade one for selected universities increased from 50% in 2012 to 70 % by 2017 (at least 50% female)

- Percent grade 2 students passing standardized learning test in math and reading increased from 54% in 2012 to 65% by 2017(at least 50% female).

Performance contracts signed with at least 5 universities (completed) Performance contract signed with all education districts by 2017 Shift from arts disciplines to math and sciences starting at junior secondary level by 2017 Implementation of a reformed secondary education curriculum (Completed)

On-going Financing GGSC DPO Series (FY13-15) Tertiary Education for Results

(P123673, FY11) Quality Basic Education (FY13, IDA

& GPE) Ministry of education Institutional

Capacity building TF (FY13)

Indicative AAA Public Sector Impact on Education

Service Delivery Education PER Update WA

subregional Network for Results-based Education Sector Governance

Improving the delivery of health services

Ebola epidemic in West Africa

13. Improved health delivery services

The number of health facilities with an operational Result-Based Financing

On-going Financing Nutrition Enhancement Program II

(FY07) and AF (FY12)

21



Improve maternal and child health services Expand social protection services to informal sector and vulnerable groups

Poor access to health care – only 30% of poorest women benefit from assisted deliveries

Malnutrition contributes to 1/3 of all deaths of children and low birth rate lowered IQ by 5 points.

The safety nets system is weak and does not address the needs of the poor, reaching less 25% of poor.

Subsidies to protect the poor and help them cope with shocks are costly and poorly untargeted

Safety net programs are spread across various ministries with different targeting methodologies and systems for identifying beneficiaries.

- Deliveries attended by skilled birth providers increased from 65% in 2012 to 75% in 2017

- Children 0-11 months with complete immunization increased from 63% in 2012 to 79% by 2017

- Number of children receiving a minimum of micronutrients sachets in targeted areas increased to 1 million by 2017

14. Improved access to safety nets

- Number of household beneficiaries of targeted cash transfers increased from 0 in 2012 to 20,000 by 2017 (at least 75% female)

contract increases from 0 in 2012 to 250 in 2017.

The number of people covered by private micro health insurance reaches 108,000 by 2017. Epidemiological surveillance and contact-tracking capacity in place by 2015

Universal Health Insurance – CMU: Creation of 100 health insurance Mutual in 4 Regions with 100,000 affiliated members in 2017. Institutional framework for functional « Caisse autonome pour la protection social ” is in place by 2017 Program tools and processes are developed and tested: These include procedures for identification registration, payment of beneficiaries; and monitoring and evaluation system) by 2017

Health & social Financing (FY14) IFC – CIDR/PMAS micro health

insurance project Indicative AAA Health-Seeking behavior in Women

TA Nutrition policy and partnership TA

Ongoing Financing Social Safety Nets Operation (FY14)

Indicative AAA Safety Nets Assessment TA (FY13) TA to set-up CUPSU (FY13/FY14)

Improve access to potable water and sanitations services in urban and rural areas

The global access rate to potable water of 79% is higher than in most SSA countries but still insufficient and access rates vary

15. Increased access to water and sanitation service in selected rural and urban areas - Additional people with access

to piped water in selected areas of intervention: 320,000

A new institutional framework that maintains the PP option for the urban

On-going Financing Water and Sanitation Millennium

Project (P109986, FY10) IFC-IDA advisory and financing

support to the development of a

22



substantially among Regions.

Almost 25 percent of rural households have no “reasonable” access to safe water

The global access rate to sanitation is estimated at 64 percent in urban areas and only 28 percent rural areas (improved latrines)

people in rural areas and 690,000 people in urban areas by 2017

- Additional people with access to sanitation services in selected areas of intervention: 275,000 people in rural areas and 690,000 people in urban areas by 2017

water subsector is defined by 2016 At least 100 associations of water users established in selected areas of intervention (completed) Dakar Master Plan of Drainage developed (Completed)

desalination facility under a PPP scheme (FY15, FY16)

Planned Financing Water and Sanitation AF Project

(FY15) Indicative AAA Private Sector in Water and

Sanitation TA (FY14)

23

Annex 2- Matrix of Changes to Original CPS Results Matrix



Foundation: Strengthening the Governance Framework and Building Resilience New Country Objectives added:

Building Local Institutions and implementing a Sustained and Effective Decentralization


1. Improved public sector accountability

New outcome added: All ministers and senior level Government officials declare their assets to OFNAC

Outcome modified Delay in the publication of the Audit Court annual report reduced from 34 months in 2012 to 12 months by 2017.

4. Reduced vulnerability of population and improved infrastructure in Casamance region

New Milestone

150 km of roads rehabilitated

On-going Financing Financing revenue for the

City of Dakar TA (P149766)


Planned AAA Decentralization and Local

Governance Support (FY16)

I. Accelerating Inclusive Growth and Creating Employment 5. Improved investment climate for

private sector This outcome has been replaced with a new one “Increase in the number of decisions taken per year at the “Tribunal Régional Hors Classe de Dakar on Commercial Case” following a restructuring of the project underlying the former indicator.

- The target value of 1020 has been surpassed to 1397.

24



Baseline was 947 in 2012.

Planned Financing Growth and Exports Development Project (increased financing for tourism specific component)


- Growth in job creation in tourism

7. Increased agricultural productivity and marketing

- An e-subsidy platform

designed and used for transparency and efficiency in the distribution of agricultural inputs:

o Baseline: 20 000 producers registered in 2012

o Target: 1 million producers registered in 2017 and platform used


New Milestone 50 MW of solar energy installed

Ongoing financing Taiba Ndiaye Independent Power Producer Project (FY14) Banda Gas to Power (FY14) Planned Financing Solar Energy Project (FY16)

25




Updated Baseline: The access rate in 2012 was 24% instead of the 27% stated in the CPS.


AAA

Sustainable Energy for All study focusing on improving Renewable Energy institutional framework


714 KM of rails roads rehabilitated Progress: It is proposed to replace the above milestone with “functioning institutional arrangement in place to manage the Dakar- Bamako railway”

New Milestones 20 km of paved urban roads

75 km of urban roads re-habilitated

Ongoing Financing

Support to the Decentralization Reform in Senegal

Indicative AAA


Planned Financing Additional Financing to Urban Mobility Project FY15


New Issue: Ebola epidemic in West Africa


New milestone Epidemiological surveillance and contact-tracking capacity in place by 2015

Universal Health Insurance – CMU: Creation of 100 health insurance mutuals in 4 Regions with 100,000 affiliated members in 2017.

On-going financing

Health and Social Financing (FY14)

26

Annex 3-Matrix Summarizing Progress toward CPS Objectives



Foundation: Strengthening the Governance Framework and Building Resilience Improve efficiency and effectiveness of public finance management

Fight corruption and non-transparency in public sector administration

Strengthen monitoring and evaluation and statistic systems

Building Local Institutions and implementing a Sustained and Effective Decentralization


Weak performance framework in public sector for accountability for results

Weak process of planning, evaluating, and accountability for results in public sector development programs

Weak link between strategic policies and priorities, and the budget

Difficulty in the interfacing between the various financial management information systems

1. Improved public sector accountability - Time for the publication of

the Audit Court annual report after submission to the president reduced from 360 in 2012 to 8 days by 2017 Progress – This outcome has been modified to “Delay in the publication of the Audit Court annual report reduced from 34 months in 2012 to 12 months by 2017.” Delay has reduced from 34 months in 2012 to 20 months in 2014

- Percentage of holders of

public office (Ministers) that make a declaration of assets increased from zero to 100 % by 2017 Progress – to be completed by end February, 2015

- Time for the adoption and

public disclosure of budget review act (lois de reglement) after the end of fiscal year reduced from 18 months in 2012 to 10 months by 2017 Progress: Still at 18 months in 2014

Percent agencies with performance contract increased from 0% in 2012 to 50% in 2017

Progress: 6 out of 50 agencies had performance contracts by end 2014 which equals 12%. The number of agencies should be reduced to 30 by 2017. Five new hospitals have performance agreement signed by 2017

Progress: 10 new hospitals had performance agreements signed by end 2014. Computerized PFM information system reviewed

Progress: Completed

M&E Framework is operational in sector institutions and at center of government and supporting decision making process

Progress: Program budgeting, supported by the original project, is a full-fledged system to increase, monitor and evaluate the performance of Central

On-going Financing Local Authorities

Development Program (P084022, FY07)

Public Resources Management Strengthening TA (P122476, FY11)

Financing revenue for the City of Dakar TA (P149766)


Planned Financing GGSC DPO Series (FY13-

15) Public Sector Performance

SWAP or PforR (FY14/15) (now a FY16 ESW -Decentralization and Local Governance Support )

Indicative AAA

Housing Sector Review and Action Plan (FY15)

Decentralization Support TA (FY16)

Innovation in Urban Development and Urban Finance (FY15)

Housing Sector Solution TA (FY16)

Programmatic Public Sector AAA: Asset declaration

27



Government’s expenditures. It should be operational in 2017. Operational results-based M&E framework established at national and key sectors

Progress: TORs are ready for the recruitment of a coordinator and an international consultant to make the Service Delivery Unit (USRP) fully operational under the PFM TA AF. Performance-based budgeting framework adopted

Progress: Law on this was adopted but implementation is planned for 2017. Senegal achieving EITI compliance status in calendar year 2015"

Progress: Senegal is on track to produce its first EITI Report before October 18, 2015 and then becoming compliant a year later in 2016. Annual Performance audits (including technical audits) done by the authority(ies) in charge, for at least 5 Contracting Authorities by 2017

PFM Strengthening TA (FY14)

Governance Policy Planning Support

Policy Notes Poverty and Gender Report Spatial Development Study Programmatic Public

Sector AAA: Strategic Planning & M&E, and HRM

Statistical Capacity Development

Public Sector Impact on Education Service Delivery

Value chain analysis of public procurement (FY13)

Decentralization and Local Governance Support ESW (FY16)

On-going Financing Stormwater Management and

Climate Change Adaptation (P122841, FY12)

Sustainable Land Management (P108184, FY10)

Senegal Sustainable and Inclusive Agribusiness Development Project – SSIAP (P124018

WA Senegal River Basin Water Resource

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Prevent and reduce the risk of major disasters

Flood prevention, Disaster Risk and Sustainable Land Management, and Climate Change Adaptation

Reduce the impact of climate change on ecosystems

Lack of coordination and capacity in disaster risk management

Development/Urban planning which does not integrate Disaster Risk Management and Climate dimension

Weak capacity to manage and maintain urban drainage systems.

High vulnerability of youth (women and men) in Casamance

2. Sustainable land and Water Management

- Additional area with SLWM

practice in targeted areas of intervention: 7,000 ha by 2017 Progress: The SSIA project will support development of 2,000 ha by early 2016 and additional 5,000 ha by end 2017 and project farmers will adopt new and improved SLWM practices.

3. Improved drainage and flood prevention in selected urban areas - Additional area protected

against recurrent flooding in Dakar by 2017: 460 ha by 2017 Progress: 148 ha completed as at October 2014.

4. Reduced vulnerability of population in Casamance region - Additional people provided

with income generation opportunities in Casamance reaching 200,000 by 2017

Progress: An agreement for the development of 5000 ha of rice is being finalized with SODAGRI .A study for the rehabilitation and development of selected rice

Climate resilient and integrated coastal zone management plan developed (to be coordinated with EU)

Progress: Complete

Urban plans integrating flood risks in Peri-urban Dakar developed

Progress: Study is ongoing to be finalized in 2015. 150,000 Number of young women and men trained for jobs in Casamance region

Progress: About 600 youth (73% men and 27% women) have been trained under the peace building fund. The rest to make up the target will be trained under the Casamance Development Pole Project by 2017.

Planned Financing

Casamance Pole (FY13) Indicative AAA

Climate Change ESW LGAF Assessment 3a- Coastal zone

vulnerability to climate change study ESW

Planned Financing

Casamance Pole (FY13)

Indicative AAA

Climate Change ESW LGAF Assessment 3a- Coastal zone

vulnerability to climate change study ESW

29



valleys and horticulture perimeters, and provision of small scale post-harvest infrastructure has started

Activities started in May 2014. The 150,000 target will be exceeded by the end of the CPS period (2017) with the training in rural roads maintenance and horticulture etc…)

I. Accelerating Inclusive Growth and Creating Employment

Improve investment climate and access to financial and non-financial services for SME

Weak business environment (Senegal ranked 154th of 183 countries )

5. Improved investment climate for private sector

‐ Delay in treatment of cases at the Tribunal Regional de 1ere Instance de Dakar reduced from 185 days in 2012 to 140 days by 2017

Progress: This outcome has been replaced with a new one “Increase in the number of decisions taken per year at the “Tribunal Régional Hors Classe de Dakar on Commercial Case” following a restructuring of the project underlying the former indicator. The target value of 1020 has been surpassed to 1397

Baseline was 947 in 2012.

‐ Reduced number of days required to obtain a construction permit reduced from 210 days in 2012 to 170 days by 2017

Progress: The number of days has been reduced to 200 in 2014.

Systems for construction permit, registering property, and paying taxes processes (IC) implemented

Progress: Achieved with the systems established and operational OHADA uniform acts on company law and insolvency law reformed

Progress: Company law adopted in January 2014 and insolvency law to be adopted in June 2015.

New decree on Mediation adopted and implemented. Decree on mediation was adopted by the Council of Ministers on Dec. 3, 2014.

On-going Financing

Economic Governance Project (FY10)

IFC - OHADA UA 2 IFC - SMS Africa IFC - GTFP Ecobank Senegal

(27515) IFC – St Louis Finances &

Fides Senegal TA IFC - MC Senegal & MC

Senegal TA

Planned Financing

GGSC DPO Series (FY13-15) IFC - SSA Credit Bureau

Program Growth and export development

project (FY16) IFC warehouse receipts project

Indicative AAA :

Mining Sector Diagnostic & CD Access to finance for SMEs

ESW Financial Sector Dev. ESW ICT for Transforming Senegal

TA

30



Difficult access to finance for MSME

Low levels of private investment in productive sectors


- Increased number of MSMEs

getting credit to reach at least 30,000 by 2017

Target updated at 30,000 based on experience Progress: currently at 15,000. Projects FIDES and MC Senegal. The policy environment changed as BCEAO lowered the interest rate cap to 24% for microfinance institutions making it more difficult for them to provide small loans resulting in the switch to larger loans in urban areas.

WAEMU-wide regional Credit Bureau created

Progress: The private credit bureau is 70% complete and is expected to be operational by June 2015. Warehouse Receipt System operational. Progress: work started in June 2014. Legal and regulatory framework being worked on as of now.

Barriers to intraregional trade and Senegalese Exports (Dropped)

Investment Climate Assessment

Increase agricultural production and productivity

Develop markets for horticultural and agricultural products

Limited access to labor-saving technologies and equipment

Limited access to financial (credit and insurance) and output markets

Weak production infrastructures (storage, road, irrigation)

7. Increased agricultural productivity and marketing

- Average yield of main cereals increased from 0.5-1 tons/ha in 2012 to 1-2.5 tons/ha in 2017 for Millet and Sorghum, and from 1-1,5 tons/ha to 2-3tons/ha4 tons/ha for Maize; from 0.5-1 ton/ha to 1-2 tons/ha for groundnuts; from0.5-1 ton/ha to 2-3 tons/ha for rain fed rice. Progress: The beneficiaries of improved high-yielding and drought resistant varieties of

Area under new technologies increased from 40,000 ha in 2013 to 500,000 ha in 2017

Progress: 205 000 ha under new technologies in 2014 of which 164,422 ha under improved certified seeds and 40,672 ha under other agricultural improved technologies generated and diffused under WAAPP.

On-going Financing

• Agricultural Markets and Agribusiness Development Project (FY06)

• West Africa Agricultural Productivity (FY12)

• WA Senegal River Basin Multi-purpose Water Resources Dev. I ( FY06)

• IFC - Global Index Insurance Facility Program/PlaNet Guarantee

• IFC - Patisen

• Senegal Agribusiness Project (FY13)

31



High dependence on rain-feed agriculture

High risk of land degradation from salinization and wind erosion

Capacity to implement improved technologies is weak and inefficient

certified seeds get in 2014 despite a deficient and irregular rainfall: 1-1.5 tons/ha for Millet against 0.5 ton/ha with local uncertified seeds, 1.5-2 tons/ha for Sorghum against 0.5-1 ton/ha; 2-3 tons/ha for Maize against 0.5-1 ton/ha; 1-2 tons/ha for Groundnut against 0.5 ton/ha; 2-3 tons/ha for Rainfed-Rice against 0.5-1 ton/ha;Groundnut certified seeds produced increased from 700 tons in 2012 to 40 000 tons in 2017 under WAAP Progress: 10 000 tons of groundnut certified seeds produced under WAAPP in 2013 and about 20 000 tons expected in 2014

- Horticultural (fruits &

vegetable) exports increased from 24,000 tons in 2012 to 40,000 tons by 2017

Progress: With PDMAS, horticultural exports by project beneficiaries have reached 11,994 tons in the project areas in 2013, equivalent to 14% of the PSE target of 88,200 tons in 2014. The SSIAP will increase horticultural exports in project areas by 30,000 tons by 2017. Equivalent to 20% of the PSE target of 150,000 tons by 2017.

Regional Agriculture research center of excellence established

Progress: - Upgrading national center of research facilities - With CIRAD partnership, implementation of an action plan for ISO certification of national center of research (CNS) laboratories (CERAAS/ISRA and ITA) - Fellowship program to reinforce and renew agricultural research institutes human capacity: 98 fellows in African and International universities of which 53 PhD, 43 Msc and 2 Engineers.

index-based insurance for natural disasters and weather risks provided to 66,000 farmers (GIIF) by 2017

Progress: 7,500 farmers insured in 2014 of which 6,000 are agricultural producers and 1,500 animal breeders

Increased access to market to 1,000 SMEs/farmers (Patisen) by 2017

Progress:1776 SMEs/farmers have

Planned Financing

• GGSC DPO Series (FY13-15)

• IFC - Global Warehousing Finance Program (GWFP) BICIS (32394)

Indicative AAA :

• Index-Based Agricultural Insurance TA (FY14)

• WA Trade & Agriculture ESW ICA with Focus on Employment, Agro industry, Tourism, and Investment

32



- Number of beneficiaries of improved technologies of which 40% female o Baseline (2013): 80, 000 o Target (2017): 700, 000 Progress: 294, 000 beneficiaries of improved technologies diffused under WAAPP-2A in 2014 of which 31% women. - An e-subsidy platform

designed and used for transparency and efficiency in the distribution of agricultural inputs:

o Baseline: 20 000 producers registered in 2012

o Target: 1 million producers registered in 2017 and platform used

Progress: 700,000 producers registered in 2014.294

increased access to markets as of end 2013

Rehabilitation of 7,400 ha of irrigated perimeters in the Senegal River Valley and 465 ha in the Anambe Basin

Progress: Rehabilitation work started in May 2014 and the target will be achieved by June, 2015. This represents 24% of the PSE target of 31, 000 rehabilitated irrigated hectares in 2015. Local rice production is expected to increase by 52,000 tons by end of project. As a result of the prior rehabilitation of 7,000 ha in the Senegal river valley through the PDMAS Progress: additional financing for Food Security, local rice production has already increased by 46,975 tons as of June 30, 2014.

Sustainable management of fishery resources

The uncertainty over the sustainability of fish supply as a result of open access is the fundamental obstacle to increased investment in the sector and greater

8. Improved sustainable management of fishery resources

- % of registered small-scale fishing vessels originating from within the coastal region allocated with secure rights in the form of long-term and transferable permits.

Freezing of the artisanal and industrial fishing fleets effective by the end of 2013

Progress: Regulation on freezing of new boats has been passed and enforcement will begin in January 2015

On-going Financing

West Africa Regional Fisheries Program APL-A1 ( FY10)

IFC - Global Index Insurance Facility Program/PlaNet Guarantee

Planned Financing

IFC - Global Warehousing Finance Program (GWFP) BICIS

33



value added along value chain

Baseline (2010): 0 %

Target (2017): 70%

Progress: 86% achieved as at September 2014.

after 100% registration of these boats.

Private Associations of users in 12 sites along the coast supported to manage defined fisheries/fishing areas by 2017

Progress: 12 private associations have been legally constituted with 8 (Ouakam, Soumbedioune, Bargny, Yenne, Ngaparou, Fimela, Foundiougne and Betenty) managing zones and defined fishing areas.

West Africa Regional Fisheries Program APL-A2

Indicative AAA :

Index-Based Agricultural Insurance TA (FY14)

WA Trade & Agriculture ESW ICA with Focus on Employment, Agro industry, Tourism, and Investment

Facilitate access to energy services

Poor reliability of electric services

Weak energy production capacity and low level of access to electricity

High cost of electricity is high, requiring unsustainable subsidies that crowd out fiscal space


- Cost of power generation reduced from CFCA 88/kWh in 2011 to CFCA 75/kWh by 2017 Progress: 2013 – 83.18 CFCA

Liquefied natural gas feasibility study completed

Progress: The study is underway 85 MW of additional energy produced (WAAP & Tobene PPP)

Legal agreements for the Project to be finalized in Q1 2015 and project to come online in 2016. 80 MW Power generation imported from Mauritania

Progress: 80 MW HFO to be imported by summer 2015 and switch to 125 MW total from gas by 2017 Action plan for renewable energy developed

On-going Financing

PROGEDE II Energy Management (FY10)

WA Power Pool OMVS Felou Hydroelectric Project (FY06)

Electricity Sector Support ( FY13)

Lighting Africa Program

Planned Financing

WA Senegal-Mauritania Electricity Operation (FY14)

IDA/IFC - Tobene IPP/PRG (FY14)

34



Progress: consultancy that will assist the authorities with the renewable energy development is underway.

Increase access to electricity in rural areas


The access rate in 2012 was 24% instead of the 27% stated here.


- Additional people with access to electricity in selected areas of intervention reached 250,000 by 2017

Progress: Based on the access rate of 24% in 2012 the achievement in 2013 was 26%

Expected end target by 2015 by contract with the concessionaires for the current project including contribution from other donors reached 146,000 people

Progress: 202,000 rural households had access in 2013

On-going Financing

PROGEDE II Energy Management (P120629, FY10)

WA Power Pool OMVS Felou Hydroelectric P. (P094916, FY06)

Electricity Sector Support (P125565, FY13)

Sustainable energy for all initiative

Planned Financing

WA Senegal-Mauritania Electricity Operation (FY14)

IDA/IFC - Tobene IPP/PRG (FY14)

Develop road, railway, air, and port infrastructure in economic production zones

Reduced national transport infrastructure networks

Unbalanced spatial distribution of roads between districts

Limited Urban mobility conditions in the Greater Dakar


- Transport time reduced on selected routes: (i) Grandes Niayes Area from 3.5 hrs in 2012 to 2.5 hrs by 2017 and (ii) Between Dakar and Diamnidio from 1.5 hrs in 2012 to ½ hr by 2017 Progress: Achieved as of October 2014: from 320 minutes to 249 minutes

60 Kms of new urban/inter-urban roads constructed

Progress: 20 km were built for the Toll Road between Pikine and Dianmiadio

80 Kms of urban/inter-urban roads rehabilitated

Progress: Achieved as of October 2014: - 42 km rehabilitated - 20 Km of paved urban

roads constructed through HIMO

On-going Financing

Dakar Diamniadio Toll Highway (FY09) & IFC - SENAC

Transport & Urban Mobility (FY10)

Local Authorities Development Program (FY06)

WA Air Transport II (FY09) Support to the

Decentralization Reform in Senegal

Planned Financing

35



- 75 Km of rural roads rehabilitated - 714Kms of rail roads rehabilitated

Progress: It is proposed to replace the above milestone with “functioning institutional arrangement in place to manage the Dakar- Bamako railway”

Rehabilitation of Dakar-Bamako Railway (FY14)

Indicative AAA

Intraregional trade and Senegalese Exports Policy support


Expand access to professional training

with close links to job market

Significant share of enterprises report skill shortages as an impediment to their business

Of the population aged 15-59, only 15.5 percent had received technical or vocational training

Recent trends in university enrolment and employment opportunities suggest a widening of the gap between skills with high demand and the education provided by public universities.

11. Improved skills of labor force

- Enrollment in professional and technical training increased from 17% in 2012 to 30% by 2017 (at least 40% female) Progress : will be measured based on the achievement of projects that have just started being implemented notably the ISEP and the TVET projects

6000 Number of intermediate level workers trained

Progress: On track to achieve the milestone: (i) ISEP has started enrolling and will likely enroll 4000 by 2017; (ii) the TVET project approved on December 8, 2014 will train 2740 for CAP, BT and BTS in poultry, horticulture, and tourism; (iii) under their performance-based contracts, universities are diversifying training offered to be more professional. 10,000 Number of beneficiaries of TVET in selected sectors

Progress: On track to achieve the milestones. The TVET project is planned to enroll 10,000 youth in short term skills development training program.

On-going Financing

Education For All FTI Catalytic Fund (P116783, FY10)

Tertiary Education for Results (P123673, FY11)

Quality for Basic Education (FY13, IDA & GPE

Ministry of Education Institutional Capacity Building (TF, FY15)

Planned Financing

GGSC DPO Series (FY13-15) Quality Basic Education (FY13,

IDA & GPE) Skills for Job and

Competitiveness (FY14) GPE Improving Learning

Outcomes (FY14) Ministry of Education

Institutional Capacity building TF (FY13)

Indicative AAA

Multi-sector Labor Markets and Human Capital Study (incl. Casamance Youth employment)

Education PER Update

36



5 Number of TVET schools with PPP funding

Progress: On track to achieve the milestone: 3 clusters of training centers (more than 6 centers) will sign PBC that will be implemented using PPP.

Subregional Network for Results-based Education Sector Governance


Improve quality of education and learning outcomes

Completion rate of primary school increased from 75% in 2012 to 90% in 2017

Low primary completion rate

Low university internal efficiency: an average of 5 years to complete a 3-year degree

Low quality in terms of leaning outcomes.

Education system largely dominated by literature/arts discipline against scientific disciplines

Lack of accountability on outcomes

12. Enhanced equity and quality of education

- Promotion rate at grade one for selected universities increased from 50% in 2012 to 70 % by 2017 (at least 50% female)

- UGB: 70 - Thies : 70 - Ziguinchor: 57

To :

- UGB: 87,9 - Thies: 93,6 - Ziguinchor: 70,1 - Percent grade 2 students passing

standardized learning test in math and reading increased from 54% in 2012 to 65% by 2017(at least 50% female). Progress: Data is being collected currently

Performance contracts signed with at least 5 universities

Progress: All universities have already signed a performance contract that is implementing for the second year. Performance contract signed with all education districts

Progress: Capacity of school management committee reinforced in order to manage and oversee the funds (3500 FCFA per student per School) transferred to Schools. Shift from arts disciplines to math and sciences starting at junior secondary level

Progress: 4 decrees for the reform of secondary education have been signed. By 2015 each school will have their strategic plan for teaching science and mathematics.

On-going Financing

GGSC DPO Series (FY13-15) Tertiary Education for Results

(P123673, FY11)

Planned Financing

Quality Basic Education (FY13, IDA & GPE)

Ministry of education Institutional Capacity building TF (FY13)

Indicative AAA

Public Sector Impact on Education Service Delivery

Education PER Update WA subregional Network for Results-based Education Sector Governance

37



Implementation of a reformed secondary education curriculum

Progress: The new decree on secondary education curriculum has been signed and is being implemented beginning the 2014/2015 academic year

Improving the delivery of health services

Improve maternal and child health services

Expand social protection services to informal sector and vulnerable groups

Poor access to health care – only 30% of poorest women benefit from assisted deliveries Malnutrition contributes to 1/3 of all deaths of children and low birth rate lowered IQ by 5 points.

The safety nets system is weak and does not address the needs of the poor, reaching less 25% of poor.

Subsidies to protect the poor and help them cope with shocks are costly and poorly untargeted


- Deliveries attended by skilled birth providers increased from 65% in 2012 to 75% in 2017

- Children 0-11 months with complete immunization increased from 63% in 2012 to 79% by 2017

- Number of children receiving a minimum of micronutrients sachets in targeted areas increased to 1 million by 2017 14. Improved access to safety nets

- Number of household beneficiaries of targeted cash transfers increased from 0 in 2012 to 20,000 by 2017 (at least 40% female)

Progress: Project is beginning implementation, and aims at paying transfers starting in 2015. In 2013 and 2014, the Unique Registry enrolled around 150 000 household, 100 000 of which became

The number of health facilities with an operational Result-Based Financing contract increases from 0 in 2012 to 250 in 2017.

Progress: 250 health facilities will sign RBF contracts in 2015.

Program tools and processes are developed and tested: These include procedures for identification registration, payment of beneficiaries; and monitoring and evaluation system)

Progress: A process evaluation and an institutional assessment were undertaken in spring 2014,

On-going Financing

Nutrition Enhancement Program II (FY07) and AF (FY12)

Planned Financing

Health RBF (FY14)

Indicative AAA

Health-Seeking behavior in Women TA

Planned Financing

Social Safety Nets Operation (FY14)

Adaptive Social Protection (ASP) Programme (FY15)

Indicative AAA

Safety Nets Assessment TA (FY13)

38



Safety net programs are spread across various ministries with different targeting methodologies and systems for identifying beneficiaries.

beneficiaries of the PNBSF. So far, 95 000 households have received at least one transfer in 2014. All of the 150 000 identified households are in the database to serve as the basis for the Unique Registry.

highlighting areas for strengthening. As a result: - A market analysis exploring options for improved payment mechanisms was completed - The field work for testing the targeting methodology was completed, and results are expected by early 2015. - The DGPSN has restructured to reflect its roles in implementing the registry and CCT program, and Directors have been nominated. - the option to revise the amount of transfer is considered, we suggest to do so by broadening the target group to include families with children 0-5. - setting up the mechanisms to verify conditionality, and more generally the definition of collaboration agreements between the DGPSN and sectoral agencies, remain an uncompleted priority

Institutional framework for functional « Caise autonome pour la protection social ” is in place

TA to set-up CUPSU (FY13/FY14)

39



Progress: Government has started the design of the CAPSU, convening workshops to explore options. Focus is currently mostly on the financing for health insurance. Universal Health Insurance – CMU: Creation of 4 Mutuals in 4 Regions with 100,000 affiliated members in 2017.

Improve access to potable water and sanitations services in urban and rural areas

The global access rate to potable water of 79% is higher than in most SSA countries but still insufficient and access rates vary substantially among Regions.

Almost 25 percent of rural households have no “reasonable”

access to safe water

The global access rate to sanitation is estimated at 64 percent in urban areas and only 28 percent rural areas (improved latrines)

15. Increased access to water and sanitation service in selected rural and urban areas

- Additional people with access to piped water in selected areas of intervention: 320,000 people in rural areas and 690,000 people in urban areas by 2017 Progress: 206,160 people in rural areas have access to potable water 87,981 people in urban areas have access to potable water.

- Additional people with access to sanitation services in selected areas of intervention: 275,000 people in rural areas and 690,000 people in urban areas by 2017 Progress: 166,570 people in rural areas have access to sanitation service 65,980 people in urban areas have access to sanitation services in urban areas.

A new institutional framework that maintains the PP option for the urban water subsector is defined

Progress: TOR completed and study to be completed in June 2016

At least 100 associations of water users established in selected areas of intervention

Progress: Done with 100 association of water users established

Dakar Master Plan of Drainage developed –

Progress: Completed

On-going Financing Water and Sanitation

Millennium Project (P109986, FY10)

Planned Financing Water and Sanitation Project

(FY15) Indicative AAA

Private Sector in Water and Sanitation TA (FY14)

40

Annex 4: Senegal Strategy: ‘Plan Senegal Emergent’ (2014-2018) – World Bank Country Program Strategy – CPS (2013-2017): Programs and Projects

Plan Senegal Emergent – PSE (2014‐2018) Country Program Strategy – CPS (2013‐2017)

Sector 1: Agriculture, Fisheries and Agro-industry: 1. 100-150 HVA and Livestock projects 2. Development of 3 cereals corridors 3. 150-200 micro projects for familial agriculture

support 4. Restructuration of groundnuts 5. Accelerated Development of Aquaculture

Sector 2: Social Housing and Ecosystem 6. Accelerated program for Social Housing 7. Creation of 20 centers for crafts development

Agriculture, Fisheries, Agro-Industries ‐ Agriculture Market and Agribusiness development ‐ Agribusiness development Project ‐ PEGIRE ‐ West Africa Agriculture Project (WAAPP) ‐ Food Security and livestock Support ‐ Sustainable Land Management project ‐ IFC Investment

6 Prior Sectors with priority projects (27) and 17

Sector 3: gradual modernization of the Social Economy

8. Pilot Sector Plan : Crafts art 9. Micro-Tourism development plan 10. Development of Commercial Infrastructure

Sector 4: Mining and Fertilizers 11. Development of phosphates and Fertilizers Chain 12. Re-launch of the Iron integrated project – Faleme 13. Accelerated exploitation of the Gold Sector –

Kedougou 14. Accelerated exploitation of Zircon 15. Regional Mining Hub

CPS Projects and Knowledge products

FISHERIES ‐ West Africa Fisheries Program ‐ IFC-Global Index Insurance Facility

Program PlaNet Guarantee

Improve Investment Climate for Private Sector ‐ Growth and Export Development project ‐ Economic Governance ‐ IFC PPP ‐ IFC OHADA UA 2 ‐ IFC – SMS Africa ‐ IFC-GTT Ecobank Senegal ‐ IFC – St Louis Finance ‐ IFC-Credit Bureau ‐ DPO (FY13-15)

Pillar 1: Stable Macro-economic framework and Economic Growth Program

Pillar 1: Accelerating Inclusive Growth and Creating Employment

Mining ‐ EITI Initiatives

41

Sector 5: Regional Industry and Logistic Hub 16. Integrated Industrial platforms 17. Integrated Industries 18. Integrated Logistic Hub

Sector 6: Regional Hub for Multiservice and Tourism 19. Numeric Economy : Experts services Zones 20. Business Park 21. Dakar Medical City 22. Dakar regional Campus 23. 3-6 integrated Tourist zones 24. Re-launch of the regional Air Transport Hub

Infrastructure ‐ Dakar Diamniadio Toll Road ‐ Water and Sanitation ‐ Transport and Urban Mobility ‐ Local Authorities Dev program ‐ Rehabilitation Dakar – Bamako railway ‐ Intraregional Trade and Senegalese Exports Policy

support (AAA) ‐ IFC PPP ‐ OMVG

Private Sector Development ‐ Growth and Export Development project

(Tourism)

‐ Economic Governance ‐ IFC/ADVISORY

Reforms: Business Environment and Regulations ‐ R1: Senegal Emergent Funds ‐ R2 : Attractively classification review ‐ R3: Optimization of Enterprises and Government

participation ‐ R4 : Special Economic Zones and Investors Packages ‐ R5 : Accelerated Access to lands ‐ R6 : Incentive framework for Real State promotion ‐ R7 : Mining Sector Maximization ‐ R8 : Access of Informal Economy to Social Protection ‐ R9 : Regulatory Framework for Road Sector

Infrastructure reforms ‐ R10 : Integrated National Plan for Infrastructure

Development

Reforms: Human Capital ‐ R11 : Alignment of Higher Education to Economic Needs ‐ R12 : Accelerated Development of Technical and

Professionals training ‐ R13 : Structuration and Promotion of Continuing

Education

Education ‐ Tertiary Education for Results ‐ Skills for jobs and competiveness project ‐ IFC PPP ‐ TVET ‐ DPO (FY13-15)

Doing Business - Economic Governance - Agric Business Dev Project - PATMUR

42

Energy Sector Recovery Strategy 25. Integrated re-launch Plan for Electricity 26. Oil Supply Strategy 27. Energy Universal service

Energy ‐ Projet d’ Appui au Secteur de l’ Energy ‐ Second Sust & Part Energy Management ‐ Sustainable Energy for All ‐ Solar Project ‐ BANDA Gas to Power ‐ IFC/IPP ‐ OMVS/Felou ‐ Rural Electrification- ASER

Pillar 2: Social Protection and Access to Social Services Pillar 2: Improving Service delivery

Social Protection Program: ‐ ‘Programme National pour la Protection Sociale et

la Solidarité Nationale ‘

Social Protection ‐ Safety Nets project ‐ TA to set up CAPSU (FY13/14)

Reforms in Numeric Economy ‐ R14 : TIC diffusion in the Economy ( Numeric

Economy Council)

Economy Financing Reforms ‐ R15 : SMEs access to Finance ‐ R16: Real State Credit Development ‐ R17 : Bank access for Low incomes

Access to Finance

‐ IFC-GTT Ecobank Senegal ‐ IFC – St Louis Finance ‐ IFC-Credit Bureau

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Health ‐ Universal health Insurance (CMU)

Education ‐ Quality and Equity of Basic Education Program

Health ‐ Health and Social Financing project ‐ Nutrition Program Phase II ‐ Health-Seeking behavior in Women TA

Education ‐ Quality and Equity of Basic Education Program ‐ Quality Education for All program Education

For All FTI (TF)

Pillar 3: Public Institution Reforms, National Governance Program, Local Development, Security and Peace building Decentralization, Territorialisation of Public Policies, Regional Integration

Foundation: Strengthening the Governance framework and Building Resilience

‐ Casamance Développent Pole ‐ Local Authorities Dev Program ‐ Disaster Risk Management Project ‐ DPO (FY13-15) ‐ Storm Water Management and Climate

Change Adaptation ‐ Public Resources Management Strengthening

TA ‐ Programmatic Public Sector AAA ‐ Public Sector Performance SWAP or PforR

(FY14-15) ‐ Statistical Capacity Development ‐ Value Chain Analysis of Public Procurement

(FY13) ‐ Senegal Inclusive Agribusiness Dev Project ‐ OMVS ‐ 3A- Coastal Zone vulnerability to climate

change study - ESW

international development association … · 2015. 5. 12. · document of the world bank for...

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