Download 2013-2017 - Sierra Leone Country Strategy Paper

AFRICAN DEVELOPMENT BANK GROUP
SIERRA LEONE
COUNTRY STRATEGY PAPER 2013-2017
Preparation Team
Mr. F. PERRAULT
Mr. Y. BALDEH
Mr. J. WAHOME
Mr. J. ZAYID
Director, ORWB
Resident Representative , SLFO
Officer-in-Charge, OSFU
Principal Country Economist, ORWB
ORWB/SLFO/OSFU/DEPARTMENT
August 2013
ACRONYMS AND ABBREVIATIONS
CURRENCY EQUIVALENTS, WTS/MEASURES AND FY
EXECUTIVE SUMMARY
I
INTRODUCTION
II
COUNTRY CONTEXT AND PROSPECTS
2.1
Political, Economic and Social Context
2.1.1
Political Context
2.1.2
Economic Context
2.1.3
Social Context
2.2
Environment and Climate Change
2.3
Strategic Options
2.3.1
Country Strategic Framework
2.3.2
Strengths and Opportunities
2.3.3
Weaknesses and Challenges
2.4
Aid Coordination and Bank Group Positioning in Sierra Leone
2.4.1
Aid Coordination: Harmonization and Alignment of DPs
2.4.2
Bank Group Positioning in Sierra Leone
2.5
Lessons Learned from the Implementation of the Previous CSP (JAS)
III
BANK GROUP STRATEGY FOR SIERRA LEONE
3.1
Rationale for Bank Group Intervention
3.2
Deliverables and Targets
3.3
Monitoring and Evaluation
3.4
Country Dialogue Issues
3.5
Potential Risks and Mitigation Measures
IV
CONCLUSION AND RECOMMENDATION
4.1
Conclusion
4.2
Recommendation
List of Graphs
Graph 1
Political Context (2011)
Graph 2
Real GDP Growth (%)
Graph 3
GDP by Sector (%), 2011
Graph 4
Consumer Price Index, Inflation (Average %)
List of Boxes
Box 1
Transitioning Towards Green Growth
Box 2
Evolution of Role of SLFO
Box 3
Guiding Principles for Selectivity and Prioritization in the CSP
List of Tables
Table 1
Doing Business Indicators
Table 2
Potential Risks and Mitigation Measures
ANNEXES
Annex 1
Selected Macro Indicators: Charts and Figures
Annex 2
Comparative Development Indicators
Annex 3
Progress towards achieving the MDGs
Annex 4
Summary of 2012 Fragility Assessment
Annex 5
2013 Fiduciary Risk Assessment
Annex 6
Portfolio Status (as of end-May 2013)
Annex 7
2013 Country Portfolio Improvement Plan
Annex 8
Indicative Donor Division of Labor in support of Agenda for Prosperity
(2013 – 2018)
Annex 9
CSP Results Framework (2013 – 2017)
Annex 10 Indicative Resource Allocation (2013 – 2017)
Annex 11 Indicative Non-Lending Program (2013 – 2017)
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ACRONYMS AND ABBREVIATIONS
A4P
AAA
ACC
ADF
AfC
AfDB
AWF
CCVI
CEDAW
CLSG
CPI
CPIA
CPIP
CPPR
CSO
CSP
DACO
DFID
DP
DSA
ECOWAS
EIB
EITI
EPA
ESW
ESW
EU
FDI
FHI
FSF
FY
GDP
GG
GIZ
GST
GTF
HDI
HIPC
IDA
IFC
IFMIS
IIAG
IMF
JAS
KfW
MAF
MCC
MDAs
MDBS
MDG
Agenda For Prosperity (2013 – 2017)
Accra Agenda for Action
Anti-corruption Commission
African Development Fund
Agenda for Change (2008 – 2012)
African Development Bank
Africa Water Facility
Climate Change Vulnerability index
Convention on the Elimination of all forms of Discrimination Against Women
Ivory Coast –Liberia - Sierra Leone – Guinea
Corruption Perception Index
Country Policy Institutional Assessment
Country Portfolio Improvement Plan
Country Portfolio Performance Review
Civil Society Organisation
Country Strategy Paper
Development Assistance Coordination Office
Department for International Development
Development Partners
Debt Sustainability Analysis
Economic Community of West African States
European Investment Bank
Extractive Industry Transparency International
Environmental Protection Agency
Economic Sector Work
Economic Sector Work
European Union
Foreign Direct Investment
Free Health Care Initiative
Fragile State Facility
Financial Year
Gross Domestic Product
Green Growth
German International Cooperation
Goods and Services Tax
Governance Trust Fund
Human Development Index
Heavily Indebted poor Countries Initiatives
International Development Association
International Finance Cooperation
Integrated Financial Management Information systems
Mo Ibrahim Index of African Governance
International Monetary Fund
Joint Assistance Strategy
Kreditanstalt für Wiederaufbau (German Development Bank)
Mutual Accountability Framework
Millennium Challenge Corporation
Ministries, Departments and Agencies
Multi Donor Budget Support
Millennium Development Goals
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MIC
MRU
MW
NRS
OECD
PAD
PAF
PBA
PEFA
PFM
PIP
PPP
PRSP
PSG
RISP
RMC
RWSSI
SL
SLFO
SLIHS
SME
SSA
TA
TDF
TI
UA
UN
UNIPSIL
USAID
WAPP
WB
Middle Income Country
Mano River Union
Mega Watts
National Recovery Strategy
Organization of Economic Cooperation and Development
Project Appraisal Document
Performance Assessment Framework
Performance Based Allocation
Public Expenditure and Fiduciary Assessment
Public Financial Management
Public Investment Program
Public Private Partnerships
Poverty Reduction strategy Paper
Peace-and State-Building Goal
Regional Integrated Strategy Paper
Regional Member Country
Rural Water Supply and Sanitation Initiative
Sierra Leone
Sierra Leone Field Office
Sierra Leone Integrated Household Survey
Small and Medium Enterprises
Sub-Saharan Africa
Technical Assistance
Transformation Development Fund
Transparency International
Units of Accounts
United Nations
United Nations Integrated Peace – Sierra Leone
United States Agency for International Development
West Africa Power Pool
World Bank
CURRENCY EQUIVALENTS
(As at end May 2013)
Currency Unit Leone (SLL)
1 UA
= 1 SDR
1 UA
= 6481.82 SLL
1 UA
= 1.49877 USD
1 USD = 4324.8 SLL
WEIGHTS AND MEASURES
Metric System
1metric ton
1 kilogram (kg)
1 meter (m)
1 millimeter (mm)
1 kilometer (km)
1 hectare (ha)
=
=
=
=
=
=
2204 pounds (lbs)
2.200 lbs
3.28 feet (ft)
0.03937 inch
0.62 mile
2.471 acres
GOVERNMENT FISCAL YEAR
January 1 - December 31
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EXECUTIVE SUMMARY
1.
This Country Strategy Paper (CSP) outlines the African Development Bank Group’s (AfDB)
programmatic support in pursuance of Sierra Leone’s (SL) development efforts over the 2013 – 2017
Period. The strategy was formulated in a participatory manner, guided by selectivity, and alignment
with Government’s Agenda for Prosperity (A4P) for the period 2013 – 2018 and key policies and
strategies of the Bank Group, as well as the evolving New Deal for Engagement in Fragile States for
which SL is a pilot country. In this context, the CSP reflects on the Bank’s mandate and comparative
advantage, and potential to leverage regional operations, co-financing and public private partnerships.
2.
Since the end of the internal conflict in 2002, Sierra Leone has made significant progress in
consolidating peace and security country-wide and in rebuilding its economy that was nearly destroyed
by the decade long conflict. The country has successfully implemented two medium term development
strategies that invested in peace and state-building mainly through consolidation and infrastructure
enhancement and strengthening macroeconomic foundations by qualifying for debt relief under Highly
Indebt Poor Countries Initiative. The country is now classified as one of the world’s top ten business
reformers and is a net recipient of millions of dollars in foreign direct investment. Sierra Leone has
exhibited high robust economic growth rates, ranging from 6% to 15% annually per year. However, the
growth is significantly driven by the extractive industry and is largely non-inclusive and undiversified.
As a result, poverty rates are still high despite reducing between 2003 (66%) and 2011 (53%).
3.
Despite this notable progress, the underlying drivers of fragility continue to pose significant
downside risks for the country’s development. High rates of youth unemployment, at 70%, gender
inequality, high levels of perceived and real corruption, weak human and institutional capacities and
poor economic governance systems, especially public financial management (PFM) and revenue
management systems, constrain the Government’s capacity to implement its development agenda.
Limited physical infrastructure, especially in energy, water supply and roads, inhibit inclusive and
sustainable growth and limits the country’s ability to implement its transformation agenda.
4.
In responding to these critical challenges, the Bank proposes a CSP that supports key elements
of the A4P, based on broad consultations and selectivity principles. For these reasons, the proposed
strategy will focus on two pillars that are designed to deepen Sierra Leone’s transformation and
transitioning towards a more resilient development path. Pillar 1: Enhancing Economic Governance
and Transparent Management of Natural Resources Revenue will build on existing public
financial management (PFM) reforms and promote the transparent management of natural resource
revenues; and Pillar 2: Supporting Transformational and Sustainable Infrastructure Development
in energy, roads and water will facilitate inclusive green growth, foster regional integration and
enhance private sector development and competitiveness. Support to these critical areas would also
seek to diversify the economy into areas that are employment driven and inclusive in nature across
demographic, gender and geographic groupings. The regional dimension of fragility is also considered
in the formulation of the strategy as this would contribute to addressing the spillover effects of conflict.
5.
The CSP places special emphasis on the following strategic themes: (1) private sector
development; (2) public sector capacity development; (3) gender equality and women’s empowerment;
(4) sensitivity to regional and social fragility through inclusion of vulnerable groups, especially youth;
(5) green growth and enhanced resilience to climate change; and (6) regional integration and trade. The
role of SLFO in policy dialogue and advisory support, portfolio management and resource
mobilization will be critical for the successful implementation of this strategy.
6.
The Boards of Directors are invited to consider and approve the proposed CSP for Sierra
Leone covering 2013 – 2017.
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I.
INTRODUCTION:
1.
Following the decade long civil conflict which destroyed the social and physical fabric of the
country, Sierra Leone is making remarkable progress in recovery and transitioning into a stable
democratic and resilient state. The country however continues to experience some challenges stemming
from the root causes of fragility over the decade-long conflict that need to be persistently addressed
over the long-term. Some of these challenges are well captured in the Government’s medium term
development plan – “The Agenda for Prosperity, 2013-2018” (A4P) that builds on the achievements
of the Agenda for Change (AfC), and supports the country’s long-term vision of becoming a middleincome country by 2035. The proposed new Country Strategy Paper (CSP) for Sierra Leone covers the
period 2013-2017 and selectively supports the country’s A4P objectives. The CSP is fully aligned with
the Bank Group’s Strategy (2013-2022) and the Regional Integration Strategy Paper (RISP) for West
Africa.1 The CSP is also underpinned by the relevant results of extensive economic and sector work
(ESW) carried out by the Government, Bank and other DPs2, while taking a participatory approach in
seeking inputs from diverse stakeholders.
II.
COUNTRY CONTEXT AND PROSPECTS
2.1
Political, Economic, and Social Context
2.1.1
Political Context
Since the cessation of hostilities in
2002, Sierra Leone has registered
remarkable progress in its peace- and
state-building process, with an enduring
peace, shared political power and
constitutional rule manifested by three
national
peaceful
elections
and
democratic transitions.3 This relatively
smooth transition continues to deliver peace dividends to citizens in the form of economic growth,
restoration of the rule of law, improved service delivery, and citizen participation in governance
through enhanced voice and accountability (see Graph 1). Sierra Leone has made good progress in
consolidating peace and strengthening security country-wide. The country once hosted the largest
peacekeeping mission in the world4 (18,000 UN troops), and is now a net contributor of security
personnel (Police and Armed Forces) to UN peacekeeping missions in other conflict-affected countries.
However, critical challenges in the security sector remain. These include very slow response time, the
perceived increase in crime rates and porous borders that facilitate transnational crime. Additional
challenges in the judicial system include limited access to representation and weak support to
vulnerable victims. Support for justice and security sector reforms is therefore critical.
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2
3
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For example, the CSP aims to: promote the twin objectives of inclusive and green growth; greater emphasis on selectivity; enhanced
innovative approaches to getting results, supported by a strengthened operational results framework; highlighting the regional
dimension of fragility and promoting regional integration.
Some of the key studies underpinning the CSP include:: (i) AfDB: Sierra Leone Infrastructure and Growth Flagship report; Green
Growth Stocktaking report; Gender Profile; (ii) DFID: Growth Diagnostics study; Fragility Assessment; (iii) WB: TA support to
Sierra Leone Integrated Household Survey; Growth Poles Diagnostics study.
This includes three successful presidential elections meeting international credibility standards with relatively peaceful post-election
transitions. The recently concluded 2012 elections were multitier – Presidential, Parliamentary and Local Councils.
Year 2000-2001
1
3.
Fragility Status and Evolution: Sierra Leone continues to be classified as a ‘fragile state’
based on several assessments, including the Multilateral Development Bank’s framework for assessing
fragility as well as the country-led fragility assessment (see Annex 4) undertaken in 2012 as part of
implementing the New Deal for Engagement in Fragile States that was endorsed by partner countries
and donors at the Fourth High Level Forum on Aid Effectiveness held in Busan in 2011. Sierra Leone
has also been active in the International Dialogue for Peace and State-building, is one of the g7+
countries, and a signatory to the New Deal. As a pilot country for the New Deal, Sierra Leone was one
of the first countries to conduct a fragility assessment, which confirmed that the country has made
considerable progress in moving out of fragility though critical challenges remain going forward. The
country is also developing country systems and procedures and strengthening skills to enable the
structures to function. Two key indicators that point to the country’s positive transition from fragility
are: i) the expected winding down of UNIPSIL in March 2014, and ii) the steady rise in Country Policy
Institutional Assessment (CPIA) scores over the last few years. Given this context, there is emerging
consensus among the international development community that Sierra Leone has turned the corner and
is now in a positive trajectory towards transforming into a resilient stable country. However, there is
also evidence showing the persistence of some of the underlying drivers of fragility, suggesting the
need to carefully assess and manage Sierra Leone’s transition in order to comprehensively address the
root causes of fragility. For example, one of the fundamental socio-economic challenges is ensuring
that the country’s growth dividend is inclusive and spreads across different segments of society,
irrespective of age, sex or region. The Gini coefficient is still high 5 with 50% of income attributable to
the top 20% of the population. Rapid economic growth has had limited impact on poverty reduction
and employment generation, creating resentment and limited trust in the Government.
2.1.2
Economic Context
4.
Structure of the Economy and Growth Drivers: The economy is driven by primary
commodities, mainly agriculture and mineral production. The economy is presently undergoing a shift
in the size of its major components as informed by movements in the sizes of their contributions to
gross domestic product (GDP) – see Graphs 2 and 3. The mining sector contribution to GDP is projected
to substantially increase from 4% in 2011 to 22% in 2013 and is anticipated to reach 30% in 2017 due
largely to the expansion in existing large scale iron ore operations. Agriculture including forestry and
fisheries still accounts for the largest GDP share but that share is declining - reducing from 52% in
2011 to an estimated 42% in 2013. Despite this declining trend, the agriculture sector is still the largest
employer, and accounts for over 70% of the current labor force. The mining sector, the current driver of
growth in the economy, accounts for less than 3% of total formal labor force, due mainly to the capitalintensive and enclave nature of mining operations and reliance on highly skilled labor. The service
sector, which is led by banking, retail, transport and tourism, has a 28% share of GDP in 2013, having
slipped downwards from 35% in 2011. The manufacturing sector, mainly driven by cement and light
scale consumer products is still relatively incipient and weak, and accounts for only 2% of GDP due to
limitations in energy supply, weak infrastructure and poorly developed markets. Off shore oil and gas
exploration is ongoing with additional block concessions contracted to renowned oil companies in
October 2012. While the prospects of oil discoveries are imminent, commercial viability is expected to
be achieved after 2017.
5
The Gini coefficient was at .37 in 2003.
2
5.
Macroeconomic Performance: Sierra Leone’s economic growth performance has been robust
during the past ten years, with growth rates consistently higher than the Sub-Saharan Africa (SSA)
average. After successful post conflict economic recovery with growth rates averaging 6% between
2002 and 2007, the post 2008 financial crises saw growth rates slumping to 3.2% in 2009 and
rebounding to 5.5% in 2010/2011. In 2012 however, there was a one-off phenomenal growth rate of
16.7 %, driven mainly by first-time iron ore exports6 from two large-scale operations. The non-iron ore
growth driven by agriculture, construction and
services was around 6%. Implementation of the
International Monetary Fund’s (IMF) program with
the Government7 (ECF 2010-2013) came to an end
during the fourth and final review in May 2013.
Program implementation was challenging but
satisfactory as the Government met most of the
program’s critical structural benchmarks and
quantitative performance criteria. Assessment of the
current macro-economic framework pointed to
improved stability with some risks that need to be
consistently addressed. A successor program is
currently being developed for the next three-year
cycle and will be presented to the IMF Board in
September 2013.
6.
Fiscal policy has been largely restrictive
during the past two years preceded by post recovery
expansionary fiscal policy. Expenditure tightening was supported with tax policy reforms to enhance
revenue performance. One key structural tax reform was to broaden the tax base by introducing the
Goods and Services Tax (GST) in early 2009. This was partly responsible for the increased revenue-toGDP ratio moving from 10% to 13% of GDP between 2009 and 2011. However, despite these modest
gains form ongoing tax policy reforms there is significant backlog of tax reforms required to improve
revenue performance, which is currently assessed as sub-optimal and far below its actual potential. The
revenue-to-GDP ratio is below the SSA average and even below fragile state comparator countries.
Expenditure performance on the other hand has been pro-cyclical during the past ten years, expanding
from US$ 133 million in 2002 to US$ 530 million in 2012. The rate of expenditure expansion in the
past two years has declined due to fiscal consolidation measures. However, capital expenditure has
been on the increase due to the Government’s extensive roads rehabilitation and reconstruction
programs. Total expenditure, including lending, has gradually declined, moving from 21% (of GDP) in
2011 to 19.4 % in 2012. The estimate for 2013 indicates a further modest decline to 18.8%. The
restrictive fiscal policy has improved the fiscal deficit position, moving from 4.6% percent of GDP in
2011 to 1.2% of GDP in 2012.
7.
Debt: The joint WB-IMF staff debt sustainability analysis (DSA) for low-income countries
indicates that the risk of debt distress continues to be moderate with an external debt to GDP ratio of
29% in 2012 having declined from 142% in 2005 just before achieving HIPC status in October 2006.
Domestic debt to GDP ratio declined from 18.4% in 2007 to 11.1% in 2012 due mainly to reforms in
capping domestic debt and declining domestic interest rates. The structural initiatives to consolidate
6
7
African Minerals Ltd and London Mining Ltd commenced industrial production and Exports
Extended Credit Facility 2010 -2013
3
and sustain long term debt include passing a comprehensive national debt law, capping Central Bank
borrowing to 5% of previous year’s revenue, adopting a procedures manual in 2010, and a debt
reduction program for external commercial creditors. Based on the DSA, the country is at a low risk of
future debt distress but remains vulnerable to adverse external shocks. This is important for achieving
sustainable debt consistent with macro-economic growth and stability. Government, in collaboration
with the WB and the IMF, will develop a medium term debt strategy that will help guide Government
borrowing and overall debt management.
8.
Monetary policy has been focused on a clear objective of targeting single digit inflation which
is achieved by mopping up excess liquidity and maintaining price stability that is consistent with the
country’s macro-economic fundamentals. Inflation reached a peak of 18.4% in 2010 due largely to food
and fuel price hikes during the 2008 financial crises, one-off GST effects and pro-cyclical fiscal
policies. The Government targeted end-year inflation rate of 11% in pursuit of the single digit inflation
objective (13.7% year-on-year) for 2012 was largely achieved. The exchange rate has also been very
stable during the past three years supported strongly by
sizable capital inflows into mining and agriculture.
9.
The current account deficit including grants
increased in 2011 to 52.3% of GDP due to importation
of machinery for mining and construction, and
declined to 44.0% in 2012 due to the commencement
of iron ore exports. The current account deficit is
projected to shrink to 11.6% in 2013 as mining firms
transition from mobilization to production thereby
reducing imports and increasing exports (exports
creased by 110% in 2012 over 2011).
10.
Medium Term Economic Outlook: Economic prospects for the period of 2014-2016 remain
promising, with growth rate forecast at 12% to 14%, doubling the average growth rates for SSA,
mainly driven by mining production8, with non-mining growth (driven by agriculture and construction)
remaining buoyant at around 6%. Downside risks to the outlook are expected to be exogenous shocks
on iron-ore prices and demand and to a lesser extent diamonds. The period is also expected to witness
investments in large-scale agriculture that would maintain the sector’s status as the main employer and
a key driver of economic activity.
11.
Governance: In the past decade, the country has made significant progress in Good
Governance. According to the Mo Ibrahim Index of African Governance, Sierra Leone improved in
ranking from 48th (2011) to 30th (2012) out of 52 countries. The 2011 Worldwide Governance
Indicators also reflect Sierra Leone performing well on the six dimensions of governance. While it has
maintained performance in terms of voice and accountability and political stability in recent years,
major challenges continue in the areas of government effectiveness (9.95 on a scale of 0 to 100), rule of
law (22.54), and control of corruption (26.54).
On the PFM front, based on the 2010 Public Expenditure and Financial Accountability
(PEFA) assessment and the CSP team’s 2013 field review, most of the PFM indicators recorded a
positive trajectory (see Annex 5 for detailed Fiduciary Risk Assessment). The major improvements
were recorded in external scrutiny, and aspects of financial reporting. Financial reporting has especially
12.
8
Iron-Ore production and exports is expected to increase from 5,500 mt to 12,500 mt between 2012 and 2015.
4
benefitted from the implementation of the Integrated Financial
Management Information System (IFMIS) which currently
covers about 60% of the budget, with ongoing roll out to
ensure eventual full accounting through IFMIS. The Auditor
General’s Office (Audit Services Sierra Leone) has been
strengthened and has been able to complete the statutory audit
within the stipulated time.
13.
While the country has made some progress in
structural and regulatory governance reform, there continues
to be significant gaps between PFM policies, and procedures
and their actual implementation in practice in MDAs and at
local level. Sierra Leone’s temporary suspension from the Extractive Industry Transparency International
(EITI) Board in February 2013 due to failure in meeting 4 of the 21 EITI benchmarks manifests
systemic governance challenges in managing revenues from the extractives sector. Moreover,
corruption continues to be a serious challenge for country’s public and private sectors. In 2012, Sierra
Leone scored 31 on a scale of 0 (highly corrupt) to 100 (highly clean) in the Corruption Perception
Index, ranking 123 out of 176 countries. Anti-corruption institutions lack adequate resources, staff and
expertise to effectively combat corruption despite the extension of power for the Anti-Corruption
Commission to prosecute cases.9 The fight against corruption will remain critical in the medium term,
especially in the wake of anticipated revenues from its minerals sector and weak PFM capacities at
central and local council levels.
14.
Business Environment: Sierra Leone’s formal business sector is relatively small and gradually
evolving but the country is rated as one of the world’s top ten business reformers, moving from
176/185 countries to 140/185 within a five-year period. Notable business reforms include starting a
business (ranking 76/185); it takes 12 days (improved from 300 days) to start a business. The country
has witnessed significant private sector inflows as foreign direct investment (FDI) has increased threefold during the past five (5) years. However, despite these gains, the MCC growth diagnostics study
concludes that the most binding constraints for Sierra Leone’s growth are linked to the critical
infrastructure gaps in energy and roads transport, which if not addressed adequately, will severely limit
private sector growth. This assessment was supported by the Bank’s flagship Infrastructure study on
Sierra Leone (2011) and is consistent with its position in the Africa Infrastructure Index, where the
country remains constant at 49/52 countries (between 2006 and 2009). Even though substantial
infrastructure investments have occurred between 2009 and now, the gaps are still huge. .
15.
Financial Sector: The financial sector has seen significant expansion during the past five years
with strong growth in the number of banking and financial institutions in response to the significant
increases in FDI. There has also been a corresponding increase in the number financial services and
products. The depth of the financial sector is also quite shallow with the absence of a viable stock
market and the lack of a sovereign credit rating. Much progress has been made in bringing prudential
guidelines in line with the Banking Act of 2011, with supervision and oversight by the Bank of Sierra
Leone. Access to credit is low, especially for the rural poor including small holder farmers and SMEs
due to high interest rates. Commercial banks have a limited capacity to assess credit risk. Property
rights are weak with few legal means to enforce debt repayment, and there is limited collateral
information on creditors. Interest rates for commercial loans have however been steadily declining
from 22% in 2010 to 15% in 2013 as a result of Government’s recent policy to limit borrowing in the
9
Out of 273 cases investigated in 2012, only 22 led to convictions.
5
financial market. The limitations on long term financing are severe and this sets barriers to domestic
business growth and regional FDI.
16.
Regional Integration and Trade: Sierra Leone is an active member of the Economic
Community of West African States (ECOWAS). The Government’s regional integration objective is to
increase trade volumes across borders with neighboring countries especially the Mano River Union
(MRU) and ECOWAS region. Intra-regional trade is weak across the MRU region and accounts for
less than 1% of total trade volumes. Regional integration would be enhanced by connecting borders and
towns across neighboring countries within the MRU region and creating free economic zones and trade
hubs in strategic border towns. Such support is expected to enhance intra-Africa trade and provide
gainful and productive employment opportunities to the youth and women. Strengthening regional
integration would pay off in terms of reducing the risks of spillover of conflict and improving crossborder trade.
2.1.3
Social Context
17.
Poverty and Inequality: Sierra Leone has made substantial progress in its socio-economic
indicators since the end of the war, moving 10 places upwards from the unenviable human
development position it held a few years ago. Despite these improvements, there are significant
challenges in socio-economic development characterized by its continued fragile status. Results from
the 2011 Sierra Leone Integrated Household Survey (SLIHS) indicate a decrease in the poverty rates,
from 66% in 2003 to 52.9% in 2011, with the decline being more in urban relative to rural areas.
Underlying this poverty reduction was an annualized 1.6% per capita increase in real household
expenditure from 2003 to 2011. Urban poverty declined from 46.9% in 2003 to 31.2% in 2011. District
level poverty analysis showed that by 2011 most districts had converged to poverty levels between 50
and 60%, with the exceptions being Freetown at 20.7%; and 64% percent of households in the top two
quintiles were found in the western urban areas.
18.
Progress on MDGs and Other Social Indicators: On a comparative basis, Sierra Leone ranks
below most African countries for many social well-being indicators. As is the case with other fragile
states, progress towards meeting the MDGs remains a critical challenge (see Annex 3). The country
has, however, improved its position in the Human Development Index (HDI), moving from 0.252 in
2000 (ranking 187/187 countries, reflecting the war torn status) to 0.359 in 2012 (ranking 177 out of
187 countries). Despite the achievement of moving 30% upward in the index during the twelve-year
period, the country lags behind the Sub-Saharan Africa HDI average of 0.475. The country ranks
poorly with its neighbors, even at the MRU level: only 40% of the rural population has access to an
improved water source; Guinea has 59% of its rural population accessing water; while in Ivory Coast
the figure is 66%. For sanitation, Sierra Leone has only 13% of its population having access to
improved sanitation compared to Guinea, which has 19%, Liberia 32%, and Ivory Coast 24%. The Sub
Saharan Africa’s average for sanitation access is 39%. The figures are similar for urban water supply.
19.
Youth Challenges: Sierra Leone has a youthful population, with 63% of the population below
the age of 25 years. Due to the civil war, a large proportion of this population has limited education or
vocational skill levels, thereby adding further challenges to their absorption into the small formal labor
market in Sierra Leone. With youth unemployment projected to reach over 70%, during the next five
years there is a need to create over 300,000 jobs to engage different categories of unskilled and skilled
youths. Creating such jobs shall certainly require a more robust economic growth rates than the current
rate that is sustained over the long-time. The A4P outlines multi-sectoral strategies for generating the
required employment opportunities, with a strong youth orientation, and driven by inclusive private
sector development.
6
20.
Gender Equality: The Government of Sierra Leone has enacted various laws to ensure the
protection and promotion of the rights of women and children. The National Policy on the
Advancement of Women and the National Policy on Gender Mainstreaming – were adopted in 2009 to
guide the government’s gender-equality aspirations.
21.
In spite of the efforts made to close the gender gaps, considerable disparities still exist. Sierra
Leone ranked 139 out of 148 countries in the 2013 Human Development Report’s gender inequality
index. In Sierra Leone, only 9.5% of adult women have reached a secondary or higher level of
education compared to 20.4% of their male counterparts. For every 100,000 live births, 890 women die
from pregnancy related causes; and the infant mortality rate is 104.2 per 1000 live births. Women
continue to suffer from significant inequalities in terms of literacy rates, access to land, and legal
protection. According to a CEDAW survey in 2009, 63% of women in urban areas and 84% in rural
areas are engaged in the informal sector, hampered from reaching their potential by poor and unequal
access to land (based on customary practices), skills training, appropriate technology, functional
literacy and information on markets and finance. Female participation in the labor market is 66.3%
compared to 69.1% for males. Women have made strides to attain gender equality in key decisionmaking positions; they currently occupy 12.9% of parliamentary seats. An affirmative action bill
allocating 30% of leadership positions to women is pending a constitutional review. The Government
(through Bank support) has prioritized gender issues in its A4P, by having a dedicated pillar for gender
and women’s empowerment, as well as mainstreaming these themes in the other pillars.
2.2
Environment and Climate Change
22.
Sierra
Leone
has
serious
environmental
challenges.
The
2010
Environmental Performance Index ranks
Sierra Leone at the bottom (163rd out of 163
countries), and registers some significant
regressions since the end of the civil war.
Therefore, managing natural resources more
sustainably is critical in Sierra Leone, both
from
environmental
and
economic
perspectives, since key development sectors
(mining and agriculture) rely on sound
natural resources management. Sierra
Leone’s environmental challenges will be
compounded with the effects of climate
change. Recent projections indicate that the
mean annual temperature may increase by 1.0
to 2.6°C by the 2060s. Considering its low
level of development and capacity to cope
with extreme events, the country is
considered as very vulnerable to the adverse
effects of climate variability.
Box 1: Transitioning Towards Green Growth
As part of its broader effort to support RMCs in transitioning
towards a greener economy in line with the Bank’s Strategy
2013 – 2022, the Bank provided technical assistance to the
Government of Sierra Leone to mainstream Green Growth in
the A4P. In the A4P, Sierra Leone has articulated a pathway
for inclusive green growth and has taken a leadership role
among African countries in its commitment to this pathway.
The work done in Sierra Leone has been showcased in global
and regional fora on Green Growth organized by OECD and
the Bank.
The Government of Sierra Leone and the Bank share the belief
that green growth can bring high-quality growth to all Sierra
Leoneans, with more jobs, greater resilience and better
infrastructure. Sierra Leone recognizes that natural resources
are the foundation of growth and economic diversification for
the country. As the revenues generated by extractive industries
are expected to increase substantially, it becomes critical to
further improve governance, revenue management and
equitable sharing of the benefits for all Sierra Leoneans. A4P
also emphasizes that improved infrastructure - transport and
energy are especially vital to inclusive green growth and
enhanced competiveness.
This is essential for Sierra Leone as it transitions from fragility
to a more resilient and stable development track.
23.
The Government has realized that
strong economic growth will require that
environmental and sustainable management of natural resources policies be effectively formulated and
implemented to avoid the risk of irreversible damage. The Government, with support from the Bank, is
7
committed to pursuing a Green Growth path, as already reflected in its A4P (see Box 1). The
establishment of the Environmental Protection Agency has strengthened the national capability to
monitor and reinforce policies for addressing environmental issues appropriately.
2.3
Strategic Options
2.3.1
Country Strategic Framework
24.
Government’s Development Strategy: The Government has built on the relevant lessons from
10
the AfC to finalize the A4P. Its goal is to reduce poverty through promoting sustainable inclusive
green growth to achieve middle-income country (MIC) status by 2035. This ambitious long-term vision
requires a sustained average economic growth rate of 7% annually and a structural transformation from
dependency on primary products to a value addition (agriculture and mining) oriented economy that is
economically diversified and sustainable. This also requires Sierra Leone consolidating its peace- and
state-building gains and effectively managing its transition towards a resilient stable country.
25.
The A4P has eight complementary pillars, comprised of 33 strategic sectors and themes, key
outcomes and targets, and prioritized interventions. These are intended to reflect the aspirations and
priorities arising from extensive multi-stakeholder consultations in all regions of the country. The
pillars are: 1) Economic Diversification; 2) Managing Natural Resources; 3) Human Development; 4)
International Competitiveness; 5) Employment and Labor; 6) Social Protection; 7) Governance and
Public Sector Capacity; and 8) Gender and Women’s Empowerment.
2.3.2
Strengths and Opportunities
26.
Peaceful and Stable Political and Economic Environment: Sierra Leone has made good
progress in consolidating peace and enhancing security country-wide. This positive trend, coupled with
sound management has enabled macro-economic performance to be sound and robust, creating a solid
foundation for resilience as it transitions out of fragility.
27.
Extensive Natural Resource Endowment: Sierra Leone is well endowed with both renewable
and non-renewable resources. These include: i) for renewables: marine resources, forestry, fertile land
and water resources; and ii) for non-renewables: rutile, diamond, bauxite, iron ore, gold, and potentials
in oil and gas. Managing these resources sustainably and transparently will not only generate
significant revenues for the country but could also potentially stimulate rapid expansion of a diversified
economy creating more jobs, especially for the youth. This would be critical in addressing the drivers
of fragility and maintaining inclusive green growth during the A4P period and beyond.
10
The A4P highlights and takes into account the following key lessons from the AfC: (i) the urgent need to strengthen effective interministerial collaboration and coordination; (ii) importance of managing effectively external shocks; (iii) need for flexibility to enable
new strategic and unforeseen initiatives; (iv) importance of strengthening monitoring and implementation arrangements and
functionality; (v) importance of predictability and timely disbursement of funds; and (vi) greater attention to effective capacity
building.
8
28.
Strong Reform Environment and Momentum: Over the years, Sierra Leone has pursued a
strong reform agenda whose emerging outcomes are enabling the country to transition progressively
out of fragility, to a sustainable development and resilient state. Continued strong leadership will be
critical to consolidate and deepen the compendium of governance related reforms.
2.3.3
Weaknesses and Challenges
29.
Weak Human and Institutional Public Sector Capacity and Governance: One of Sierra
Leone’s binding constraints to rapid and sustainable development is the weak human capacity (as
reflected by low education indicators) and limited public sector institutional capacity, at all levels and
regions. The public sector is facing major effectiveness and efficiency challenges, especially in PFM,
human resources, strategic institutional coordination, management of natural resource contracts, and
monitoring and evaluation systems. Despite improvements in CPIA scores, relatively good PEFA
assessments, and other governance indices, the challenges in economic governance and achieving
adequate levels of transparency and accountability remain high. For example, the failure to meet EITI
compliance status after two successive attempts reflects the depth of these public sector challenges.
30.
Limited Physical Infrastructure: Recent diagnostic studies demonstrate that Sierra Leone’s
poor infrastructure, especially of roads, water supply, and energy11, pose serious development
challenges and are the key binding constraints to the productive sector (e.g. agricultural value chain
development, fisheries, tourism, small scale manufacturing, etc.) for growth and employment. During
the period of the Bank’s CSP, there is need to ensure that the implementation of the A4P addresses
adequately the most relevant policy, institutional, regulatory and investment constraints, including
public private partnership (PPP) opportunities to close the significant infrastructure financing gap.
31.
High Youth Unemployment: Youth unemployment (over 70%), coupled with limited levels of
education and vocational skills, poses serious challenges. This key driver of fragility has the potential
to undermine stability and reverse peace gains. Despite the adoption of a Local Content Policy and an
appropriate strategy in the A4P, there are challenges, including limited access to finance, which need to
be addressed effectively in order to stimulate small and medium-sized enterprises (SMEs) development
that could potentially bolster economic growth and diversification, thereby creating much needed
employment opportunities. Also, appropriate vocational/skill training opportunities need to target
young men and women.
32.
Low Domestic Resource Mobilization Efforts: There has been significant improvement in
domestic revenue collection during the past 10 years, however, domestic revenue to GDP ratio is still
far below its potential and still low compared to the SSA average and even for post conflict countries.
For instance, Liberia’s Revenue to GDP ratio is 18% compared to Sierra Leone’s 12.6%. This has
resulted in budget overruns financed largely from borrowing in domestic banking system which tend to
crowd out the domestic private sector as a result of high interest rates. Effective collection and
efficient management of domestic revenues generated by the extractives sector would increase
domestic revenues to SSA levels and limit financing of the budget from domestic debt.
33.
Weak Regional Integration: The MRU is endowed with resources that stretch across borders
but its member countries continue to be fragile and face challenges of integration and trade, particularly
in the areas of hard infrastructure (road transport, ports, energy) as well as soft infrastructure (financial
11
For example, (i) only 9% of the country’s population has access to grid-based power supply; (ii) only 8% of the total road network is
paved and only 21% of the rural population resides within 2km of all-weather road; and (iii) only 57% has access to improved water
supply, and only 13% has access to non-shared sanitation.
9
markets, investment and business regulation and procedures, border management, and policy
harmonization). Given the region’s history of conflict spillovers across borders, this regional fragility
continues to pose security threats to all 4 member countries including Sierra Leone. To this effect, it is
imperative to adopt a regional perspective in addressing the drivers of fragility and the binding
constraints of the respective MRU member states. The Bank’s proposed Mano River Union
Initiative12 seeks to achieve this.
34.
Commodity Price Shocks: As the undiversified and non-competitive economy is largely
driven by mining revenues, at least in the medium term, its fundamentals would be exposed to global
commodity price fluctuations and possible shocks. Accordingly, the economy and Government’s
purchasing power and potential revenues for funding its A4P would be vulnerable to volatile
movements of mineral prices. This scenario could adversely affect economic stability and
Government’s ability to fund A4P priority interventions. The proposed setting up of a Transformation
Development Fund (TDF)13 will help in mitigating the effects of these shocks to some extent.
2.4
Aid Coordination and Bank Group Positioning in Sierra Leone
2.4.1
Aid Coordination: Harmonization and
Alignment of Development Partners
Box 2: Evolving Role of SLFO
The opening of the Sierra Leone office in 2007 and its
progressive technical staffing (both international and national
staff), has enabled deepened and continuous country dialogue
on substantive issues, improved monitoring and portfolio
management and resulting better performance, provision of
timely implementation assistance to Bank supported project
teams, and more effective coordination with DPs.
35.
Aid Coordination: Sierra Leone has a
high dependency on donor assistance (ODA
received/disbursed as a percentage of GNI
amounted to 14.6%, 2011). Major Development
Partners (DPs) include: DFID, the EU, WB, the
The Bank is an active member of the Development Partners
UN family, and the Bank. DFID is the major Group (DPG), Multi Donor Budget Support (MDBS) Group,
bilateral donor and Germany, USAID, China, and the United Nations Country Team. The Bank, through
Japan and Ireland also have a strong presence. SLFO, will continue to play leadership roles in the thematic
areas of Gender and Green Growth. With the recent transfer of
Within the context of the Busan New Deal, an international water sector specialist from Tunis to SLFO,
Government and DPs have made a firm the Bank is expected to play a lead role in the Water Sector
commitment
to
establish
a
Mutual Working Group. The Bank will also assume joint leadership
of the Roads Working Group, together with the EU.
Accountability Framework (MAF) between the
Government and the donor community. The
The Bank through SLFO has also proactively used Trust
Funds and the Bank’s Fragile State Facility Pillar III to
proposed MAF is expected to set the terms of
respond to urgent TA requests from the Government (e.g.
the partnership required for the successful MCC Compact Development and setting up the PPP unit)
implementation of the A4P, including steps
towards enhanced alignment and harmonization,
and increased use of country systems, which will
be strengthened with support from the Bank and other DPs. Indicators for the MAF will be composite,
and derived from existing frameworks such as the New Deal Peace- and State-Building Goals, CPIA,
PAF, MCC Compact, and aligned with the Results Framework of the A4P. The Government has
several instruments to manage aid coordination, including a Development Partners Group, which meets
quarterly. The Government through its Development Assistance Coordination Office (DACO) oversees
12
13
This initiative proposes a major effort to address the region’s infrastructure gap in road transportation and energy, which would
connect people within and between these countries, promote trade and private sector development, with a view to assisting the region
transition out of fragility and instability.
The A4P proposes the establishment of a Transformation Development Fund, through which receipts from natural resources would
initially be placed and earmarked for transformative public investments. The Fund would also be used for stabilization purposes to
help cushion the effects of volatility of global market prices and slow-down on demand.
10
donor coordination and promotes a division of labor amongst DPs which reflects comparative
advantages and which guides the closing of strategic funding gaps. See Annex 8 for a preliminary
indicative division of labor, which appears to be emerging to support the A4P funding requirements.
Box 2 highlights ways by which SLFO has enabled the Bank to play a more active role in supporting
Government’s leadership role in strengthening donor coordination and effectiveness, while also
enabling the Bank to forge stronger partnerships with a wider range of DPs.
2.4.2
Bank Group Positioning in Sierra Leone
36.
Bank Group Portfolio and Assessment: As of 31 May 2013, the Bank Group’s active portfolio
for Sierra Leone comprised ten (10) on-going operations at different stages of implementation; with a
total commitment of UA 116.1 million (see Annex 6 for details). The Bank Group’s assistance spans
across different sectors. Infrastructure, private and Governance sectors are among the Bank’s priority
sectors and constitute 88.5% of the Bank’s total commitments. The other sectors in the Bank’s portfolio
include agriculture, social and financial sectors. The Bank’s portfolio also includes two multinational
operations - the West Africa Monetary Zone Payments System Project and the Capacity Building and
Technical Assistance to the Mano River Union Secretariat. The average portfolio age is 2.2 years,
including one ageing project which is closing at the end of 2013.
37.
Portfolio Performance: The overall performance of the Bank’s portfolio is satisfactory, with a
rating of 2.4 (scale of 0 - 3). The projects at risk (PAR) has declined from 50% in 2011 to 14.3% in
2012 and has been maintained at that level in 2013, while the commitment-at-risk increased from 8.4%
to 18% between 2012 and 2013 due to the current rating of the Addax Bioenergy Project (which
accounts for 18.7% of the portfolio) as a problematic project (PP). However, the cost overrun issue
which threatened the project’s implementation in recent months has been addressed and the project is
now on course. Typical portfolio challenges include delays experienced in project start-up activities, in
fulfilling loan/grant conditions for disbursement effectiveness and capacity constraints of contractors
and consultants/supervising engineers to complete projects in a timely manner. Bank’s training in
contract management planned for implementation units, is aimed at addressing these challenges going
forward. The cumulative disbursement amounted to UA 46 million, representing a cumulative
disbursement rate of 40%. The disbursement rate is projected to significantly increase as some projects
within the portfolio are expected to start disbursing by September 2013.
38.
Country Portfolio Improvement Plan and Continued Key Challenges: The CSP preparation
mission included a full day Country Portfolio Performance Review (CPPR) workshop to review
implementation progress and update the action plan of the Country Portfolio Improvement Plan (CPIP)
developed in 2012 (see Annex 7). The CPIP highlights challenges in three broad areas: (i) Project
Design/Appraisal (including M&E aspects), (ii) Civil Works (including contract management); and (iii)
Fiduciary Issues (Procurement, Disbursement, Financial Management and Audits). Overall progress in
addressing the specific issues has been positive. Special attention was paid to updating key actions
which will address: delays in execution of civil works that generally result in cost overruns; ways to
continue strengthening and adopting country systems especially for procurement and financial
management and the need to enhance the operational functionality of the M&E systems and results
frameworks for each of the projects/operations. The steady improvement of the portfolio is partially
attributed to the proactive role of the SLFO team in working closely with the Government and
providing timely support to the project teams.
11
2.5
Lessons Learned from the implementation of the Previous CSP (JAS)
39.
The design of the new CSP is informed by lessons drawn from the implementation of the JAS
(2008-2012), as reflected by the JAS Completion Report (2012). These lessons include: i) although the
JAS provided the WB and the Bank an opportunity to work together in a more coordinated manner, for
the benefits of such collaboration to be optimized, there is a strong need for Government to take the
lead role in donor coordination activities especially at the sector levels; ii) maintaining selectivity has
helped the Bank to be more focused in its interventions during the JAS period and also increased the
average size of the operations leading to increased efficiency in project implementation; iii) as a fragile
state, Bank support to Sierra Leone would require a combination of instruments geared towards project
financing, technical assistance and advisory services through focused knowledge products; iv) fiduciary
risks both in terms of procurement and financial management continue to be an area of concern in the
portfolio; and v) maintaining a pro-active approach to portfolio management both on the side of the
Bank and the Government would yield positive results on portfolio performance. These lessons have
informed the preparation of the proposed CSP by ensuring the use of “fragility lens” in the analysis and
design of the strategy, maintaining selectivity in the prioritization of focus areas, putting emphasis on
capacity development and donor coordination, especially at the delivery levels. The Bank and WB are
preparing separate CSPs in close collaboration and with a renewed focus and emphasis on joint
programming at the sector/delivery level.
III.
BANK GROUP STRATEGY FOR SIERRA LEONE
3.1
Rationale for Bank Group Intervention
40.
Sierra Leone has registered remarkable progress in its peace-and state-building, with an
enduring peace, shared political power and constitutional rule manifested by peaceful elections and
democratic transitions. The country’s emerging and relatively strengthened institutional environment is
beginning to deliver peace dividends to its citizens in the form of economic growth, improved services
and citizen participation in governance. Significant inflows of FDI have improved confidence of
private sector participation in the economy, especially in the mining and agricultural sectors.
41.
Nonetheless, the 2012 Fragility Assessment,
recent growth diagnostics studies and consultations
during the CSP mission, revealed important information
and evidence that Sierra Leone’s underlying drivers of
fragility have not been fully eradicated and efforts
should be intensified in the coming CSP period to
support the Government in comprehensively addressing
the root causes of fragility so that the gains achieved are
adequately consolidated and deepened.
Box 3: Guiding Principles for Selectivity and
Prioritization in the CSP

Alignment with the A4P (2013 – 2018)

Alignment with the Bank Group’s Strategy (2013
– 2022)

Regional Integration Strategy Paper (RISP) for
West Africa

Bank Group Framework for Engagement in
Fragile States Lessons from the Bank’s past and
on-going strategies and portfolio performance;

Relevant findings from key Economic and Sector
Work;

Bank’s comparative advantages and scope for
leveraging regional operations and co-financing,
and synergies;

Division of labor between DPs, coordinated/led
by GoSL;

Multi-stakeholder/client feedback and
consultative dialogues.
42.
The New Deal proposes five key Peace- and
Sate-Building Goals (PSGs) which seek to identify
where countries are within the fragility continuum as
they transition out of fragility. These are: i) Legitimate
Politics; ii) Security; iii) Justice; iv) Economic
Foundations; and v) Revenue and Services. The
Government has led in the country’s fragility
assessment, which concluded that SL is at the
‘Transition’ stage in all the five PSGs (see Annex 4) and identified the main development gaps. Taking
12
into account the Bank’s comparative advantages, Bank interventions will focus on PSGs 4 and 5 –
Economic Foundations; and Revenue and Services, respectively and these interventions are tightly
linked to the development gaps identified in the country-led fragility assessment (see Table 2 of Annex
4). Furthermore, in recognition of the regional implications of fragility, and the history of conflict
spillovers in the MRU, Bank support will adopt a regional dimension, where appropriate, in addressing
the drivers of fragility. The Bank and the Government will work with the DPs to ensure that the other
PSGs (Legitimate Politics, Security, and Justice) are addressed by the relevant partners whose mandate
and expertise match the required interventions (see Annex 8: Indicative Donor Division of Labor in
Support of A4P).
43.
Consequently, the proposed CSP seeks to promote and emphasize a private-sector led
inclusive and green growth; enhanced economic diversification; expanded regional integration; and
stronger economic governance, especially with regards to building robust and resilient institutional and
PFM systems, focusing on transparent and efficient management of revenue from natural resources.
The Bank strategy (2013-2017), which is more selective than the previous JAS, is guided by the
principles of selectivity and prioritization outlined under Box 3, and extensive consultations14 held
during the CSP preparation mission. Accordingly, the CSP is focused on two core pillars.
44.
Pillar 1: Enhancing Economic Governance and Transparent Management of Natural
Resources Revenue: The pillar will enhance economic governance by supporting targeted capacity
building and institutional development. It will deepen on-going Bank support to accelerate PFM
reforms for transparency, accountability, and efficiency in managing the country’s abundant natural
resources and revenues. This in turn will enable the economy to generate the resources needed for
expanded public expenditures toward inclusive growth while minimizing aid-dependency, especially
with the likelihood of Sierra Leone being phased out of FSF support after ADF 13. The Bank will also
promote broad-based private sector development by improving the business environment through
structural and regulatory reforms, and SME development, which will be the engine for generating
sustainable jobs, thereby addressing some of the drivers of fragility.
45.
Pillar 2: Supporting Transformational and Sustainable Infrastructure Development: This
pillar is aligned with the overarching objective of the A4P on promoting an inclusive, diversified and
competitive economic growth by helping to remove the most binding development constraints of Sierra
Leone involving key infrastructure – energy, roads and water – to which the vast majority of the
population, especially the poor, irrespective of age, gender and geographic location lacks access. Bank
support to such strategic socio-economic infrastructure will therefore generate widespread benefits with
a strong poverty focus. Emphasis will be on inclusive employment creating opportunities, increasing
regional and national integration, promoting cross-border trade, and ensuring green growth and climate
resilience in all of the Bank’s interventions.
46.
The two pillars are complementary and mutually reinforcing. In this regard, Pillar 1
(Economic Governance) will help ensure efficient, transparent and accountable expenditures for the
proposed Pillar 2 interventions. There will be special focus on building capacity to strengthen the
institutional and regulatory environment for enhanced infrastructure services in energy, roads and
water, which is critical in ensuring sustainable and cost-effective delivery of core services benefiting all
population groups. In addition, special emphasis will be placed on the following strategic themes, in
14
There were three stakeholder consultative events: with all ongoing project implementing teams to update the CPIP; diverse
stakeholders including government, private sector and civil society based in Freetown and the provinces/regions. In addition, there
were separate consultations with each of the major DPs, which were very helpful in gauging comparative niches and possible areas of
collaboration.
13
both pillars: 1) private sector development; 2) capacity development; 3) gender and women’s
empowerment; 4) sensitivity to social fragility through inclusion of vulnerable groups, especially
youth; 5) climate change, green and sustainable growth; and 6) regional integration and trade
(especially within the MRU).
47.
Accordingly, the proposed CSP strategic pillars selectively support the following core A4P
pillars: Pillar 1: Economic Diversification; Pillar 2: Managing Natural Resources; Pillar 4: International
Competiveness; Pillar 5: Employment and Labor; Pillar 7: Governance and Public Sector Reform; and
Pillar 8 – Gender and Women’s Empowerment.
3.2
Deliverables and Targets
48.
The prioritized interventions and envisaged results for the two focus pillars are described
below. Annex 9 shows the CSP Results Framework which underpins the results chain; and Annexes 10
and 11 highlight the proposed lending and non-lending activities to achieve the envisaged results.
Pillar 1: Enhancing Economic Governance and Transparent Management of Natural Resources
Revenue
49.
Pillar 1: Sub-Pillar 1: Public Financial Management & Transparency: The objective is to
increase efficiency, transparency and accountability of public institutions by strengthening capacity
systems and processes in order to ensure that public budgets, revenues, expenditures and government
resources are effectively and efficiently managed. Bank Group priority interventions would contribute
to the following three expected key outcomes: (i) increased transparency and predictability in the
budgeting, revenues, and expenditure outturns, through enhanced financial reporting; (ii) enhanced
legislative scrutiny and follow up on audit reports; and (iii) improved value for money in procurement
through compliance with procurement procedures. Priority Bank interventions would include: (i)
continued multi-sectoral budget support program (in partnership with other key DPs); (ii) capacity
building projects to enhance budget support reforms; and (iii) enhanced technical advisory support and
dialogue on PFM issues through SLFO in close coordination with other DPs who are also active in
supporting PFM reforms.
50.
Pillar 1: Sub-Pillar 2: Natural Resource Governance: The objective is to enhance natural
resource governance, and thereby contribute to sustainable resource development and increased public
revenues. Bank Group priority interventions would contribute to the following expected key outcomes:
i) enhanced domestic revenue mobilization in the mining and non-mining sectors; and ii) strengthened
participation of civil society in policy dialogue and monitoring of Government revenues . Potential
priority Bank interventions would include: i) a targeted capacity building support to the NRA in
collaboration with other DPs; ii) coordinated support with other DPs to the newly established National
Minerals Agency to effectively carry out its mandate in monitoring compliance of mining contracts and
optimizing Government’s share of mining revenue; iii) supporting the setting up of the governance
framework for the TDF; and iv) providing support to the EITI process.
51.
Pillar 1: Sub-Pillar 3: Improving Business Enabling Environment: The objective is to
improve business enabling environment for inclusive and green private-sector development. Bank
Group priority interventions would contribute to the following expected key outcomes: i) improved
business environment; and ii) increased number of viable and diversified enterprises, especially SMEs.
The priority interventions include the completion of the ongoing PFM and Business Enabling Support
Project (which will run through to 2014) and which will seek to develop an SME policy for the
Government and provide targeted capacity building support to selected SMEs and private sector
14
support agencies such as the Chamber of Commerce, Sierra Leone Investment Promotion Agency and
the Sierra Leone Business Forum. The multi-sector budget support will also seek to promote sustained
business reforms.
Pillar 2: Supporting Transformational and Sustainable Infrastructure Development
52.
Pillar 2: Sub-Pillar 1: Expanded and Lower Cost Energy Supply and Access: Investments in
energy would seek to address critical energy challenges that limit barriers to private sector investments
and inclusive growth. High and uncompetitive tariff rates (32c Kw/h) coupled with weak transmission
and distribution capacity (40% electricity losses due to poor network) make energy provision a priority
in the A4P. The country has one of the lowest per capita electricity consumption of 30.5 Kw/h, far
below the ECOWAS benchmark of 88 Kw/h. Priority interventions would seek to contribute to the
following outcomes: i) increased reliability of energy supply (reduced time of power outage); ii)
increased electricity access rate (by households and enterprises – including on grid and off grid); iii)
increased supply of electricity, with at least 10% sourced from renewable sources; iv) reduced
production cost of electricity; and v) improved capacity of the Ministry for negotiating contracts, and
building a pipeline of investments.
53.
The West Africa Power Pool (WAPP) project, co-financed with the World Bank, EIB, and
KfW, will lay foundation for energy trade across the MRU region and develop the energy transmission
mechanism that enhances the sub-region’s future energy supply. This project would promote the
regional energy market, and increase energy access in rural areas (through the integrated rural
electrification component) for local economic development and improved delivery of social services
reliant on access to energy (e.g. health facilities; ICT in schools).
54.
The Bank would further fund feasibility studies for other hydro potentials with national and
regional benefits. These are expected to be designed and implemented in line with the Bank’s Green
Growth agenda, including opportunities in defining the optimal and sustainable energy mix for the
country. The focus would be on producing clean energy with more hydro, bio-mass energy and solar
and less of thermal production. For example, the Bank will provide a Partial Risk Guarantee facility to
the Government for ADDAX Bioenergy Ltd to supply 15 MW of its excess biomass energy to the
National grid line. The Bank, through the private sector window, will also seek to invest in the panned
Bumbuna Hydro Phase II project that would more than triple the country’s present generation capacity.
55.
Pillar 2: Sub-Pillar 2: Expanded Transport/ Roads Infrastructure and Enhanced O&M: The
objective is to support improved road accessibility and connectivity that will contribute to inclusive
green growth, promote national and regional integration and trade facilitation. Inclusive growth will be
harnessed through project designs that ensure that improvements in transport infrastructure incorporate
i) rehabilitation/construction of other social infrastructure, for example, selected markets in the project
area of influence to benefit farmers and traders (predominantly women); and ii) enhanced accessibility
with the main corridor improvements, augmented with improvement of connecting feeder roads. Bank
interventions would contribute to the following key outcomes: i) improved core road network
conditions (primary and secondary class roads); ii) increased share of paved road network; and iii)
enhanced national and regional integration and interconnectivity between Sierra Leone, Guinea and
Liberia for increased trade.
56.
Priority interventions would include completion of the ongoing Matotoka–Yiye Road and
Lungi–Port Loko Road projects. Proposed interventions include upgrading of the Bandajuma-Zimmi
Road project in collaboration with the EU, which will link Freetown to Monrovia. The proposed
Medium Case Scenario, assuming increased funding levels, would create financing space for an
15
additional road project (Kenema–Zimmi) to be undertaken with similar regional integration
opportunities with its link to the Trans-West African Coastal Highway. All road transport projects
would ensure sustainability from a Green Growth perspective (looking at maintenance and road safety
aspects) and designed to be climate resilient.
57.
Pillar 2: Sub-Pillar 3: Expanded Access to and Sustainability of Water Supply and Sanitation
Infrastructure and Services: The objective is to support sustainable and equitable access to water
supply and sanitation for all uses. Bank Group priority interventions would contribute to two expected
core outcomes: i) improved access to sustainable water supply and sanitation services (with targets for
rural and urban areas); and ii) reduced incidence of water borne diseases (e.g. cholera and diarrhea).
58.
Priority interventions would include completion of the Three Towns Water
Sanitation Project (Bo, Makeni and Kenema cities) and the proposed Rural Water
Sanitation Project to be funded by ADF-12 (PBA and FSF) resources with co-financing
GEF and RWSSI. Both projects will also contribute towards improved governance of the
with embedded targeted technical assistance and capacity building support.
Supply and
Supply and
from DFID,
water sector
59.
Non-Lending Interventions: will develop the knowledge base to strategically support
operations and provide an input to Government policy making. For example, the ongoing flagship
Skills Gap Analysis will inform decision making and policy direction in the area of TVET and labor
and employment and also guide both Government and private sector actors on the role each should play
to promote skills development for employment. This analytical work will also complement and inform
other donors with direct skills development investments in the country. Similarly, the Green Growth
(GG) study has already informed the mainstreaming of GG in the A4P and is expected to also guide the
Government in pursuing its Green Growth path during the implementation of the A4P. A regional study
on Minerals Fiscal and Licensing Regime Harmonization for MRU countries is also planned with a
view to increasing the mining contracts negotiating powers of member countries and also decreasing
the incentives for smuggling across borders. Other studies proposed include: i) Domestic Resource
Mobilization study to inform Government of better revenue mobilization, especially in the Mining, Oil
& Gas sectors; and ii) a Port Master Plan study with a view to improving port operations and
performance in the country. Other areas of study will be determined during the MTR of the CSP in
2015. Annex 11 provides an indicative list of the envisaged ESWs under the CSP period.
60.
Strategy Implementation Instruments: The Bank Group will use the most appropriate
instruments to support the proposed strategy, including budget and institutional support, project loans
and grants, trust funds, economic and sector work and policy/country dialogue. These instruments will
be used in a complementary manner to maximize synergies and in close partnership with other
development partners, also encouraging the active engagement of the private sector and civil society.
The proposed multi-sectoral programmatic budget support will enable the Bank to i) support a
comprehensive approach to broad-based policy dialogue on strategic macro and sectoral issues
involving both pillars, while supporting the country’s transition from a state of fragility to a more
resilient development path; and ii) provide predictable medium term financing, while working with
other DPs (especially IMF, WB, DFID and the EU) to strengthen enhanced tools such as the medium
term expenditure framework and the Public Investment Program (PIP). Given the country’s low
Sustainable Lending Limit and high risk status, indirect investments through equity funds and/or
regional initiatives such as the Africa Guarantee Fund and Africa SME Program could be used as
channels for private sector investment. In addition, Partial Risk Guarantees in priority sectors such as
energy will be supported to facilitate public-private partnerships.
16
61.
Resource Mobilization Strategy: Given the huge financing needs of the country and the
relatively small size of its ADF allocation and variability of PBA and FSF funds, the Bank’s financing
strategy will be to use its available resources in a catalytic manner to leverage and prioritize regional
funding, co-financing, and public-private partnerships. Emphasis will also be on supporting the
country’s broader domestic resource mobilization efforts, coupled with enhanced economic
governance, especially from its huge mineral endowment and oil and gas potentials. The Bank will also
support Sierra Leone in accessing some of the climate change funds, AWF, and RWSSI resources that
would be available to co-finance targeted investments, in addition to tapping the private sector window.
Efforts would be made to access Trust Funds and the Africa Legal Support Facility which could
support strategic TA and non-lending interventions, in support of the proposed priority activities.
62.
Bank’s Indicative Resources and Work Program: The CSP period will cover three ADF
cycles: the final year of ADF-12 (2013), the full ADF-13 cycle covering 2014-2016, and the first year
of ADF-14 (2017). This strategy will complete remaining tasks in ADF-12 and provide a roadmap for
ADF-13. The Mid-Term Review to assess progress would be conducted in 2015 where the ADF-13
pipeline would be firmed up and to prepare the ground work for ADF-14. A significant level of
funding was leveraged from the FSF supplemental support window (Pillar I) during the ADF11(UA42.8 million) and to some extent ADF-12 (UA28.7 million) funding cycles and this financing
window potentially could be available for ADF-13 but phased out in ADF-14.
63.
Due to the level of funding available in the midst of many competing priority needs, ADF-13
projects will be identified and prioritized in close consultation with Government and stakeholders.
Given the uncertainty on the level of funds to be available under ADF-13 and 14 (first year), three
different scenarios are proposed for Bank Group support:
(1)
Base-Case Scenario assumes that Sierra Leone receives UA36 million from ADF-13
PBA and First Year of ADF-14 with no FSF allocation in ADF-13.
(2)
Medium-Case Scenario assumes that Sierra Leone will receive an ADF-13 FSF
allocation of UA15 million in addition to the UA36 million PBA allocation. This would
provide an additional financing space for another critical road project, the Kenema –
Zimmi road.
(3)
High-Case Scenario assumes that Sierra Leone will receive a significant ADF-13 FSF
allocation of UA30 million (almost the same as the FSF allocation they received under
ADF-12) in addition to the UA36 million PBA allocation. This scenario would allow
increasing the amount allocated towards the Kenema – Zimmi Road Project, especially
if the regional envelope resources or co-financing are not secured.
64.
The Bank will hold consultations with the Government of Sierra Leone and prepare an
addendum to this CSP after the resource envelope for the country in ADF 13 is determined and
approved by the Boards of Directors in early 2014.
3.3
Monitoring and Evaluation
65.
The Bank, in collaboration with the Government, will conduct monitoring and evaluation of
the CSP results framework (see Annex 9), which is aligned with the results framework for the A4P.
The Bank will endeavor to carry out the M&E in the context of Government’s proposed enhanced
national M&E system expected to track activities and results of the A4P. A CSP Mid-Term Review
will be conducted in 2015 to assess the progress made and the emerging outputs and outcomes, using
the RF as the main tool for assessment. In addition, SLFO will carry out annual portfolio performance
17
reviews geared towards strengthening alignment with the A4P outcome indicators. SLFO would also
take an active role in participating with other DPs and civil society in joint monitoring of the Bank’s
contribution towards the objectives of the A4P.
3.4
Country Dialogue Issues
66.
The Bank, especially through SLFO, will focus its country dialogue on the following strategic
issues which would enhance the effectiveness of implementing the CSP for 2013 – 2017, while being
responsive to other key issues which may arise: i) portfolio quality and performance; ii) natural
resource governance, especially in pursuing EITI Compliant status and the adoption of international
best practice in natural resource management; iii) gender equality, especially with regards to access to
finance and property rights for women; iv) ongoing institutional and regulatory reforms under the
energy, transport, water supply sectors; and v) regional integration and private sector development
issues, particularly to ensure that required supporting policies and complementary investments are in
place, including the proposed MRU Initiative and public-private partnerships.
3.5
Potential Risks and Mitigation Measures
67.
Table 2 below shows the mitigating measures for each of the risks envisaged under the
implementation of the proposed CSP.
Table 2
Potential Risks and Mitigating Measures
Continued Drivers of Fragility
Probability of Risk: Moderate
Mitigation Measures and Impact: Moderate
While SL is making good progress in its transition from its war and Increased and coordinated dialogue will help ensure emerging
fragility, there is evidence that the underlying drivers of fragility security needs are managed and an UNIPSIL withdrawal is not
persist (e.g. economic exclusion, delays in meeting the MDGs, disorderly. The proposed Mutual Accountability Framework will
limited trust of Government, high unemployment, especially of promote a results-driven dialogue with Government on all
youth, high perceived and real corruption levels). A prolonged dimensions critical for its transition to a resilient state. Addressing
delay in reversing and stabilizing these drivers can jeopardize physical infrastructure constraints and increased emphasis on
achieving the development objectives of A4P.
strengthening the role of an inclusive private sector, especially
SMEs, to diversify the economy and generate increased jobs will
be critical.
Public Sector Capacity and Coordination and Implementation Risks
Probability of Risk: Moderate to High
Mitigation Measures and Impact: Moderate
Public institutional capacity, coordination and design and Capacity building will be an integral part of Bank-funded projects.
implementation weaknesses at central and local council levels, and FSF-Pillar III resources will also be instrumental in providing
hence risks, are relatively high.
The limited human and targeted technical and capacity building support. Pro-active
institutional capacity of implementing agencies, the inadequate management of the portfolio will be adopted (regular portfolio
coordination effectiveness of central entities will be stretched
reviews and tracking of the CPIP; sector dialogue, joint
programming and action with other DPs, etc.).
Economic Governance in the light of Substantial Extractive Industry Resource Revenues
Probability of Risk: Moderate
Mitigation Measures and Impact: Moderate
PFM systems and processes are in the early stages of being There will be systematic and well-targeted measures to further
strengthened, at both central and local council levels. Expected strengthen the PFM systems and processes at both central and local
substantial inflows of revenues from mineral and other resources, council levels. Civil society engagement in the monitoring of
and weak CSOs for third party monitoring, will add challenges to increased revenues from the extractive industry will foster
ensuring adequate PFM transparency and accountability, and to transparency and accountability. These efforts will be closely
minimize perceived and/or actual corruption levels.
coordinated with other DPs.
Vulnerability to Shocks: International and Natural Disaster/Climate Change
Probability of Risk: Moderate
Mitigation Measures and Impact: Moderate
International shocks, including lower commodity demand and There will be strengthened: capacities and systems for better
prices, could affect the implementation and funding of A4P, monitoring of relevant macro-economic variables to better forecast
especially with the economy largely undiversified. In addition, external price and market fluctuations which could impact the SL
climate change could affect the implementation of the A4P and economy; regular dialogue on possible scenarios which can impact
increase the vulnerability of the infrastructure and other aspects of public revenues and expenditures, to ensure timely adjustments.
the economy.
Setting up of the TDF will be helpful. Projects will be designed to
be climate resilient.
18
IV.
CONCLUSION AND RECOMMENDATION
4.1
Conclusion
68.
Since the end of its conflict, Sierra Leone has exhibited robust economic growth. However,
the economy will need to be diversified and growth made more inclusive and sustainable. The
Government has prepared its A4P to address considerable socioeconomic challenges for the period
2013 to 2018. Accordingly, the Bank proposes a selective CSP strategy to support key elements of the
A4P, based on an explicit selection and prioritization criteria. This strategy and supporting
interventions would focus on helping Sierra Leone transition to a more resilient and inclusive
sustainable development path. The strategy also highlights the role of SLFO in policy dialogue and
advisory support, portfolio management, donor coordination and resource mobilization.
4.2
Recommendation
69.
The Boards of Directors are invited to consider and endorse the proposed Results-Based
Country Strategy Paper for Sierra Leone for the period of 2013-2017.
19
ANNEX 1
SELECTED MACRO INDICATORS: CHARTS AND FIGURES
Growth, Inflation and Revenue Performance
25
20
15
Growth
10
Inflation
Rev/GDP
5
0
FY 2009
FY 2010
FY 2011
FY 2012
FY 2013
FY 2014
SL - Growth and Inflation 09-14
25
20
15
Growth
10
Inflation
5
0
FY 2009
25
20
15
10
5
0
FY 2010
FY 2011
FY 2012
FY 2013
SL
Growth
Rates
The mining-led growth is gradually changing the
structure of the economy as the sector’s share to GDP is
gradually increasing, moving from 4% in 2011 to an
estimated 22% in 2013, while agricultural GDP share is
declining moving from 52% in 2011 to a projected 42%
in 2013. There is great scope for improving productivity,
reducing losses and enhancing value chains in
agriculture.
Growth Rates (%)
Sub
Saharan
Afr
Source: IMF, ADB and GOSL
I
FY 2014
ANNEX 2
COMPARATIVE DEVELOPMENT INDICATORS
Develo- Developing
ped
Countries Countries
2011
2012
2011
Life Expectancy at Birth
(years)
71
61
51
41
31
21
11
1
2011
2012
2011
2012
106.6
102.8
101.5
101.4
80.0
98.3
98.7
97.9
5.2
2010
103.1
105.1
66.3
65.0
58.6
80.8
86.4
75.5
3.9
Africa
2010
101.9
98.4
42.3
38.5
43.2
67.0
75.8
58.4
5.3
2010
124.7
120.1
27.6
22.5
25.1
42.1
53.6
31.4
3.6
2010-2012
2010-2012
2001-2012
2001-2012
2011
2010
2010
2010
2008-2011
2009
Education Indicators
Gross Enrolment Ratio (%)
Primary School
- Total
Primary School
- Female
Secondary School - Total
Secondary School - Female
Primary School Female Teaching Staff (% of Total)
Adult literacy Rate - Total (%)
Adult literacy Rate - Male (%)
Adult literacy Rate - Female (%)
Percentage of GDP Spent on Education
Sierr a Leone
2009
276.2
730.7
...
99.5
100.0
99.9
0.4
14.0
95.4
93.0
1.7
3 285
8.2
5.0
4.5
4.0
3.5
3.0
2.5
2.0
1.5
1.0
0.5
0.0
2009
112.2
187.6
65.4
86.4
80.0
56.2
0.9
146.0
83.9
83.7
17.4
2 675
2.9
2008
49.2
134.7
53.7
67.3
65.2
39.8
4.6
234.6
81.6
76.5
19.8
2 481
5.9
Population Growth Rate (%)
2008
1.6
16.8
42.4
55.0
38.0
13.0
1.6
723.0
96.0
80.0
21.3
2 162
13.1
Africa
2008
Health & Nutrition Indicators
Phy sicians (per 100,000 people)
2004-2010
Nurses (per 100,000 people)*
2004-2009
Births attended by Trained Health Personnel (%)
2008-2010
Access to Safe Water (% of Population)
2010
Access to Health Serv ices (% of Population)
2000
Access to Sanitation (% of Population)
2010
Percent. of Adults (aged 15-49) Liv ing w ith HIV/AIDS
2011
Incidence of Tuberculosis (per 100,000)
2011
Child Immunization Against Tuberculosis (%)
2011
Child Immunization Against Measles (%)
2011
Underw eight Children (% of children under 5 y ears) 2008-2011
Daily Calorie Supply per Capita
2009
Public Ex penditure on Health (as % of GDP)
2010
2007
0.3
0.7
16.6
16.5
49.3
94.7
45.5
77.9
81.2
11.4
10.1
6.0
7.8
1.7
13.7
71.4
2007
1.3
2.3
28.5
6.0
52.5
103.4
53.2
67.3
69.2
20.9
7.8
46.4
66.7
2.6
230.0
62.4
2007
2.3
3.4
40.0
3.6
77.3
100.0
49.8
58.1
59.1
33.3
10.9
71.4
111.3
4.2
417.8
31.6
2006
2.1
3.1
42.8
1.9
80.8
95.7
24.8
48.1
48.8
37.0
15.0
104.0
157.9
4.8
890.0
21.5
2006
2012
2012
2012
2012
2012
2012
2012
2012
2012
2012
2012
2012
2012
2012
2010
2012
Sierra Leone
2006
Dem ographic Indicators
Population Grow th Rate - Total (%)
Population Grow th Rate - Urban (%)
Population < 15 y ears (%)
Population >= 65 y ears (%)
Dependency Ratio (%)
Sex Ratio (per 100 female)
Female Population 15-49 y ears (% of total population)
Life Ex pectancy at Birth - Total (y ears)
Life Ex pectancy at Birth - Female (y ears)
Crude Birth Rate (per 1,000)
Crude Death Rate (per 1,000)
Infant Mortality Rate (per 1,000)
Child Mortality Rate (per 1,000)
Total Fertility Rate (per w oman)
Maternal Mortality Rate (per 100,000)
Women Using Contraception (%)
GNI Per Capita US $
1800
1600
1400
1200
1000
800
600
400
200
0
2005
35,811
1,244.6
75.7
23.4
38 657
71.7
43.9
0.911
...
...
2005
98,458
5,807.6
46.0
70.0
3 304
68.7
39.1
0.694
...
22.4
2004
30,323
1,070.1
40.8
34.5
1 609
37.8
42.5
0.502
...
40.0
2005
72
6.1
39.1
83.6
340
38.0
50.9
0.354
177
53.4
2004
Basic Indicators
Area ( '000 Km²)
2011
Total Population (millions)
2012
Urban Population (% of Total)
2012
Population Density (per Km²)
2012
GNI per Capita (US $)
2011
Labor Force Participation - Total (%)
2012
Labor Force Participation - Female (%)
2012
Gender -Related Dev elopment Index Value
2007-2011
Human Dev elop. Index (Rank among 186 countries)
2012
Popul. Liv ing Below $ 1.25 a Day (% of Population) 2003-2011
2004
Africa
2003
Sierra
Leone
Year
Sierra Leone
Africa
Infant Mortality Rate
( Per 1000 )
140
120
100
80
60
40
20
0
last update :
2010
II
Sierra Leone
2009
Sources : AfDB Statistics Department Databases; World Bank: World Development Indicators;
UNAIDS; UNSD; WHO, UNICEF, WRI, UNDP; Country Reports.
Note : n.a. : Not Applicable ; … : Data Not Available.
10.8
-0.2
40.4
11.4
2008
10.7
0.4
28.7
3.1
2007
7.6
0.6
23.0
1.2
2006
15.4
2.9
37.8
0.2
2005
2011
2000-2009
2011
2009
2004
Environm ental Indicators
Land Use (Arable Land as % of Total Land Area)
Annual Rate of Deforestation (%)
Forest (As % of Land Area)
Per Capita CO2 Emissions (metric tons)
Africa
May 2013
ANNEX 3
PROGRESS TOWARDS ACHIEVING THE MDGS
19901
Goal 1: Eradicate extreme poverty and hunger
20002 20123
Employment to population ratio, 15+, total (%)
63.5
64.7
65.3
Malnutrition prevalence, weight for age (% of children under 5)
Poverty headcount ratio at $1,25 a day (PPP) (% of population)
25.4
62.8
24.7
53.4
21.3
...
Prevalence of undernourishment (% of population)
36.2
37.3
28.8
Goal 2: Achieve universal primary education
Literacy rate, youth female (% of females ages 15-24)
Literacy rate, adult total (% of people ages 15 and above)
...
...
37.4
34.8
50.1
42.1
Primary completion rate, total (% of relevant age group)
Total enrollment, primary (% net)
...
...
...
...
74.4
...
...
14.5
12.9
67.2
54.3
67.5
68.2
92.8
...
76.0
80.0
Goal 3: Promote gender equality and empower women
Proportion of seats held by women in national parliaments (%)
Ratio of female to male primary enrollment
Ratio of female to male secondary enrollment
Goal 4: Reduce child mortality
Immunization, measles (% of children ages 12-23 months)
...
Mortality rate, infant (per 1,000 live births)
Mortality rate, under-5 (per 1,000)
163.9
279.8
Goal 5: Improve maternal health
Births attended by skilled health staff (% of total)
...
Contraceptive prevalence (% of women ages 15-49)
Maternal mortality ratio (modeled estimate, per 100,000 live births)
126.7 104.0
200.7 157.9
41.7
42.4
6.5
12.3 21.5
1300.0 1300.0 890.0
Goal 6: Combat HIV/AIDS, malaria, and other diseases
Incidence of tuberculosis (per 100,000 people)
279.0
Prevalence of HIV, female (% ages 15-24)
Prevalence of HIV, male (% ages 15-24)
479.0 723.0
...
...
...
...
1.3
0.5
0.2
1.4
1.6
Goal 7: Ensure environmental sustainability
CO2 emissions (kg per PPP $ of GDP)
Improved sanitation facilities (% of population with access)
0.6
11.0
0.8
12.0
0.7
13.0
Improved water source (% of population with access)
42.0
50.0
55.0
Goal 8: Develop a global partnership for development
Net total ODA/OA per capita (current US$)
Internet users (per 1000 people)
54.5
...
76.0
2.0
71.5
2.6
Prevalence of HIV, total (% of population ages 15-49)
Mobile cellular subscriptions (per 1000 people)
Telephone lines (per 1000 people)
...
4.3
22.9 340.9
5.4
2.4
Sources : ADB Statistics Department Databases; World Bank: World Development Indicators;
UNAIDS; UNSD; WHO, UNICEF, WRI, UNDP; Country Reports,
Note : n,a, : Not Applicable ; … : Data Not Available,
1
Latest year available in the period 1990-1995; 2 Latest year available in the period 2000-2004;
2005-2012
III
last update : May , 2013
3
Latest year available in the period
ANNEX 4
Page IV/5
SUMMARY OF 2012 FRAGILITY ASSESSMENT
Fragility Assessment Framework – The Sierra Leone Case
Background and Objectives
The New Deal is an enhanced development framework for engaging with fragile states and forms part of the fourth high
level forum on Aid Effectiveness held in Busan in November 2011.The New Deal created global awareness on the need for
new ways of working in fragile states and established consensus on a core set of priorities and governance reforms. The
New Deal focuses on a set of Peace and State Building Goals (PSGs) that identify where countries are within the fragility
continuum as they transition out of fragility. As a founding member of the g7+ Group of Fragile States, Sierra Leone was
chosen as one of seven countries to pilot the New Deal by conducting a comprehensive country led fragility assessment
based on the five PSGs. The PSGs focus on areas were simple reforms can greatly improve development outcomes. The
fragility assessment identifies drivers of fragility and priority actions for overcoming the fragility sources. The five PSGs
assessed were: (i) Legitimate Politics; (ii) Security; (iii) Justice; (iv) Economic Foundations; and (v) Revenue and Services.
The objectives of this fragility assessment were:
1.
2.
Develop a clear understanding of how Sierra Leoneans view fragility and resilience; and
Generate consensus regarding Sierra Leone’s fragility trajectory and for its citizens to identify country led
milestones for transitioning out of fragility.
Table 1: Summary of 2012 Fragility Assessment Results Matrix
Rebuild and
Goal/Dimension
Crises
Transition
Transformation
Reform
PSG 1: Legitimate Politics


X
Political Settlement
Political Processes and
Institutions
X
 Societal Relations
PSG 2: Security
X

Security Conditions

Security Sector Capacity
X
 Security Sector Performance
PSG 3: Justice
X

Justice conditions
X

Justice sector capacity
X
 Justice sector performance
PSG 4: Economic Foundation
X


Economic conditions
Jobs, Livelihoods and Private
Sector
 Exploitation of Natural
Resources
PSG 5: Revenue and Services
X

Revenue Generation
X

Public Administration
X
X
X
X
IV
Resilience
ANNEX 4
Page V/5

Service Delivery
Table 1: Summary of 2012 Fragility Assessment Results Matrix
X
Outcome of Fragility Assessment
Sierra Leone’s current position in the fragility spectrum indicates that the country has made considerable progress from its
lowest point of crisis toward greater resilience. Even though the country is well situated in the ‘transition’ trajectory there
are still challenges in some socio-economic fragility indicators. Since the crisis, key achievements have been made in
relation to institutional reform, and the appropriate structures, laws, policies and processes to enable development results.
Sierra Leonean’s feel that the necessary foundation for transformation and resilience has now been built. However, the
critical challenge going forward is for the development of critical infrastructure, systems and skills to enable these
structures to function effectively. There is need to enhance the implementation and coordination of policies, enforcement
of laws and compliance with processes to ensure that the structures that have been built are effective. The table above
provides a summary of the assessment results for each of the dimensions under each PSG.
Highlights of Assessment Results for each PSG
1.
Legitimate Politics
A stable and resilient Sierra Leone requires the development of legitimate political systems for resolving and managing
conflict, inclusive political settlements, and a committed and able leadership. The country has made substantial progress in
managing political stability which includes: leaders democratically elected and accountable to the electorate; multi-party
state and political pluralism established with constructive dialogue between political parties and precedence of peaceful
transfer of power. However, despite these accomplishments, the assessment identified critical socio-political challenges that
would affect the country’s successful transition out of fragility. These include regional and ethic polarization of political
appointments, failure to pass constitutional amendment to address gender imbalances, weak parliamentary oversight
capacity, perceptions of high level of corruption, delays in reconciliation and dispute resolution.
2.
Security
Human and physical security is critical to the transition away from fragility, and the assessment manifest that significant
progress has been made since the cessation of hostilities in 2002. The challenge for Sierra Leone is to build on the
achievements made so far and improve the behavior, effectiveness and accountability of a broad range of security actors.
The accomplishments range from well-disciplined armed forces (that participate in peace keeping missions) to greater
control of arms trafficking. The key challenges include slow response time, porous borders, poor accountability apparatus
for the security sector and relatively weak performance of sector institutions.
3.
Justice
Justice is fundamental for peace building and state building. Grievances mechanisms and addressing injustice is essential to
building resilient societies and nations. Formal justice mechanisms should be accessible, affordable and seen to be fair by
citizens. While progress made during the peace consolidation period has been satisfactory, there are fundamental challenges
to ensure a smooth transition out of fragility. Highlights of progress made include: passing of the Local Court Act (2011)
which made access to informal justice more timely and affordable; efforts made to decentralize formal system with circuit
court sittings and increased accessibility to paralegals and increasing confidence in formal and informal justice systems
with rights of individuals being increasingly protected. Challenges include very limited access to representation, especially
for vulnerable groups such as women.
V
ANNEX 4
Page VI/5
4.
Economic Foundation
In the assessment, economic foundation is defined as a function of investments that create economic opportunities that
increase well-being, confidence in government, and can help reduce violence and conflict in the future. Strong economic
foundations require economic diversification, an educated workforce and strong regulatory frameworks. The fragility
assessment indicates that progress has been made in several areas including: key institutions have been rebuilt to enable
good economic management and steady growth; transparency and accountability systems are in place and are operational
albeit with some weaknesses; and passing of several Acts to better regulate the extractive industry. Critical challenges
include: poor distribution of natural resource benefits; basic infrastructure modestly available in urban areas and absent in
the rural areas; limited economic diversification; low value addition; porous borders (high incidence of illegal smuggling);
high unemployment particularly among the youth and lack of appropriate skills; and weak property rights for women.
5.
Revenue and Services:
This goal assesses the extent to which the Government is successfully managing revenue and building capacity for effective
and efficient service delivery. Increasingly, the Government of Sierra Leone is managing its revenue base despite teething
challenges and using it to deliver services to the population. For instance, the Government’s investment in road
infrastructure is largely driven by increased domestic revenue inflows. On the expenditure side, a sound public financial
management system is essential in instilling confidence in citizens to pay taxes, donors to contribute aid, and businesses to
invest. The assessment identified the following as key accomplishments under this PSG: National Revenue Authority
established and working to diversify and consolidate domestic revenue generation; improved tax administration,
enforcement, accountability and audit capacity; Goods and Services Tax introduced; and increased tax awareness among
the population. However despite these accomplishments, there are deep seated challenges that serve as threats to the gains
made. These include: narrow tax base and large informal sector; too many concessional duty waivers and tax exemptions
for mining companies; limited enforcement of border taxes that facilitate smuggling; low capacity of tax workers and high
corruption rates. On the expenditure side, challenges include weak procurement challenges that are complex and inefficient;
significant inequality and regional imbalances in core service delivery. As could be deduced from the matrix, the Service
Delivery dimension remains a big challenge and is still at a recovery stage.
Bank’s CSP response to Downside Risks/Challenges identified in the Fragility Assessment
Table 2 below shows how the Bank’s CSP seeks to address some of the downside risks/challenges identified in the fragility
assessment:
Table 2: Core areas of the Bank’s CSP linked to addressing the remaining downside risks stemming from the root causes
of fragility as identified in Sierra Leone’s country-led fragility assessment
Peace &
StateBuilding
Goal (PSG)
PSG 4:
Economic
Foundations
Dimension
Economic
conditions
Proposed Bank Group interventions during
the CSP period, 2013-2017
Downside risks stemming from
the root causes of fragility
a)
Limited economic
diversification
b) Low value addition
c) Porous borders (high
incidence of illegal
smuggling)
d) Weak property rights for
women
e) Basic infrastructure modestly
VI
a)
Enhanced economic diversification, e.g., SME
policy for the Government, support to selected
SMEs and private sector support agencies such
as Chamber of Commerce, Investment
Promotion Agency and the Business Forum;
b) Infrastructure (e.g. roads) geared towards
facilitating market linkages and trade. SME
capacity building.
c) Regional study on Minerals Fiscal and
ANNEX 4
Page VII/5
Table 2: Core areas of the Bank’s CSP linked to addressing the remaining downside risks stemming from the root causes
of fragility as identified in Sierra Leone’s country-led fragility assessment
Peace &
StateBuilding
Goal (PSG)
Dimension
Proposed Bank Group interventions during
the CSP period, 2013-2017
Downside risks stemming from
the root causes of fragility
available in urban areas and
absent in the rural areas
d)
e)
PSG 5:
Revenue
and
Services
Jobs,
Livelihoods
and Private
Sector
a)
Exploitation of
Natural
Resources
a)
Revenue
Generation
High unemployment
particularly among the youth
b) Lack of appropriate skills
a)
b)
Poor distribution of natural
resource benefits
a)
b)
a) Narrow tax base;
b) Large informal sector;
c) Too many concessional duty
waivers and tax exemptions for
mining companies;
d) Limited enforcement of border
taxes that facilitate smuggling
a)
b)
c)
d)
VII
Licensing Regime Harmonization for MRU
countries with a view to decreasing incentives
for smuggling across borders
Gender & women’s empowerment
mainstreamed in the investments and also part
of the dialogue issues with Government.
Key infrastructure – energy, roads and water –
of which the vast majority of the population
lacks access. E.G., Pillar 2, sub-pillar 1:
Investments in energy to address energy
challenges that limit barriers to private sector
investments & inclusive growth – rural
electrification component included
Creating enabling business environment,
structural & regulatory reforms, SME
development as engine for generating
sustainable jobs
Flagship Skills Gap Analysis to inform
decision making and policy direction on
TVET, labor and employment; guide
Government & private sector roles in skills
development
Transparent, efficient management of revenue
from the natural resources, e.g., support to
National Mineral Agency, EITI, etc.
Pragmatic inclusive green growth investments
in both pillars
Enhanced domestic revenue mobilization in
the mining & non-mining sectors; Domestic
Resource Mobilization study to inform
Government of better revenue mobilization,
especially in the Mining, Oil & Gas sectors
(Non-lending ac; and a Port Master Plan
study with a view to improving port
operations and performance in the country
Rural electrification component of WAPP
and the capacity building of SMEs
Support to the National Minerals Agency and
setting up of a Mining Tax Unit under the
NRA
Regional study on Minerals Fiscal and
Licensing Regime Harmonization for MRU
countries with a view to decreasing
incentives for smuggling across borders
ANNEX 4
Page VIII/5
Table 2: Core areas of the Bank’s CSP linked to addressing the remaining downside risks stemming from the root causes
of fragility as identified in Sierra Leone’s country-led fragility assessment
Peace &
StateBuilding
Goal (PSG)
Dimension
Proposed Bank Group interventions during
the CSP period, 2013-2017
Downside risks stemming from
the root causes of fragility
a) Low capacity of tax workers
a)
Public
and high corruption rates
Administration
b) Weak procurement challenges
that are complex and inefficient
Stronger economic governance, especially
building robust & resilient institutional &
PFM systems. Also strengthened participation
of civil society in policy dialogue and
monitoring of Government revenues)
b) Efficient, transparent & accountable
expenditures
Strengthen institutional & regulatory
environment for enhanced infrastructure
services in energy, roads and water, critical for
sustainable & cost-effective delivery of core
services benefiting all population groups
across all regions
Rural water supply project and rural
electrification project seek to address regional
imbalances in service delivery in these sectors
Note: The Bank and the Government of Sierra Leone will work with the other development partners to address the other PSGs
(Legitimate Politics, Security and Justice) based on their core expertise and mandate.
Service
Delivery
a)
Service Delivery (which areas?) a)
remains a big challenge and is
still at a recovery stage
b) Significant inequality and
regional imbalances in core
service delivery
b)
VIII
ANNEX 5
Page IX/5
2013 FIDUCIARY RISK ASSESSMENT
1.
Executive Summary
1.1.
A fiduciary risk assessment for Sierra Leone was carried out as part of the Country Strategy Paper (2013-17)
preparations. The assessment was a combination of a review of documents (the 2010 central level PEFA), interviews with
key public financial management (PFM) officials in the country, discussions with development partners and other field
work as deemed appropriate by Bank staff. The objective is to provide a coherent assessment of the key potential risks
associated with the country PFM system, and recommend suitable mitigating measures to minimize the impact of any risks
identified. The consultations also served to update the status of the PFM reform process subsequent to the 2010 PEFA. In
general, most indicators showed a positive trajectory, with major improvements recorded in external scrutiny and aspects of
financial reporting as a result of the implementation the new IFMIS. The assessment concluded that the fiduciary risk of
Sierra Leone is still substantial, but in light of the positive trajectory relating to the overall PFM performance, and the
series of mitigation measures proposed herein, the assessment rated the residual fiduciary risk as “moderate”, and the
country could thus be a candidate for budget support if required.
2.
Overall level of risk
Table 1 below summarizes the overall risk in The Sierra Leone.
Table 1. - Summary of Overall Risk
Elements
Average
Development
Capacity Rating
(based on 2010
PEFA Indicators)
Average
Development
Capacity
Rating (based
on 2013 Field
Review)
Risk
Assessment
Trajectory
1.1 The Budget sub-system capacity is adequate to plan
1.5
1.5
2.0
1.8
Moderate
Moderate
↑
↑
1.5
1.0
1.8
1.0
Moderate
Substantial
↑
-
1.5
1.8
Moderate
↑
2.3
0.0
2.5
0.0
Moderate
High
↑
-
1.5
1.2
1.8
1.5
Moderate
Substantial
↑
↑
0.8
1.2
Substantial
↑
1.3
1.5
Substantial
↑
0.6
0.9
Substantial
↑
1.
1.2
2.
2.1
2.2
3.
3.1
3.2
3.3
3.4
3.5
4.
4.1
4.2
Budget
(formulate) budgets for the programs and projects
The Budget sub-system capacity is adequate to execute
budgetary control of programs or projects
Treasury
The Treasury sub-system capacity is adequate to manage
the inflow of resources and disbursements of aid funds.
The Single Account is an appropriate and reliable way to
administer aid funds
Accounting Recording and Reporting
The Financial Accounting sub-system is sound and
capacity is adequate to record programme and/or project
transactions and account for their progress and financial
status.
Financial Management information systems have
flexibility to accommodate specific reporting requirements
of programmes and projects and have procedures in place
to ensure timeliness and quality of information produced.
The Financial Accounting sub-system has an integrated
Fixed Assets module for the proper recording and control
of assets purchased with programme / project funds.
The Accounting sub-system maintains up to date records
of the country’s borrowings.
The Accounting systems are secure against deliberate
manipulation of data and/or accidental loss of or
corruption of data.
Internal Control
The Internal Control sub-system capacity is adequate to
control the financial operations of programs and projects.
Competition, value for money and controls in procurement
are adequate
IX
ANNEX 5
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4.3 The Internal Audit function capacity is adequate
5.
External Scrutiny and Audit
5.1 The SAI has the level of “independence” needed to enable
it to effectively fulfill its functions.
5.2 The SAI has the capacity to meet its audit mandate
Risk assessment key:
Below 0.75 = High Risk, Between 0.76-1.50 = Substantial Risk,
Substantial Risk
1.0
1.5
Substantial
↑
1.0
2.0
Moderate
↑
Between 1.51-2.50 = Moderate Risk,
3.
Performance of PFM Systems and Risk Rating
3.1.
Budgeting Sub-System: Fiduciary Risk Rating: Moderate
Between 0.76-1.50 =
3.1.1. Budgeting is governed by the Sierra Leone’s Government Budgeting and Accountability Act (GBAA) of 2005
(under review). The Act strengthened the institutional and legislative framework for budgeting at central government level,
as well as specifying practices for planning, execution and in-year monitoring and control. The budget classifications are
the same as expenditure codes, which facilitates easy tracking of government expenditure against budget. There have been
significant improvements to the budget classification/chart of accounts over the years, and the current 27 digit chart of
accounts used for financial reporting has 8 segments which are aligned to the IMF’s Government Financial Statistics (GFS)
2001 standards.
3.1.2. Current Risk – The main risk relates to the non-inclusion of donor funded projects in IFMIS reporting as well as
the supplementary budget processing not ratified by parliament. The non-inclusion of donor financing in IFMIS is not in
line with the dictates of the Paris Declaration. Failure to submit supplementary budgets for legislative scrutiny and approval
means that parliament’s carefully determined appropriations can be subverted using the supplementary allocation system,
which affects the integrity of the whole process.
3.1.3. Mitigation – The GBAA 2005 is currently being revised to address areas of weaknesses in PFM and budget
executions. The guidelines of MTEF budgeting have been revised to improve the robustness of the budgeting process, and
ensure all government resources, including donor financing, will be captured in the budget and onto IFMIS. Efforts will
also be made to tighten and follow the legislative supplementary budgeting process. Although more still needs to done in
this area, the proposed revision of the GBAA is expected to address the key existing PFM weaknesses identified. The
assessment in May 2013 rated the sub-system risk as Moderate.
3.2.
The Treasury Sub-System : Fiduciary Risk Rating: Substantial
3.2.1. The GBAA 2005 also governs the treasury sub-component. Majority of MDAs and Sub-vented Institutions (SIs)
maintain their bank accounts with the Central Bank of Sierra Leone (CBSL). However, they are also allowed to operate
accounts, including project accounts with the Commercial Banks approved by the minister, MoFED and Accountant
General. The Debt Management Department of MoFED manages both domestic and external debts and reconciles with
Debt Services Department of the CBSL on daily and weekly basis.
3.2.2. Current Risk – The main risk currently relates to non-inclusion of a large number of bank accounts (including
donor financing) from the CRF. This poses inherent challenges to overall treasury management, as well as the timeliness of
cash/bank reconciliations.
3.2.3. Mitigation – The Bank funded WAMZ payment systems project is at an advance stage and will facilitate
additional banks linkages and connectivity between SL banks and with CBSL. The CBSL and commercial banks in Sierra
Leone are expected to go live with real time banking by July 2013. There is also a program for the eventual deployment of
IFIMIS to all MDAs and SIs to improve the efficiency and accuracy in financial reporting. MoFED has taken stock of all
bank accounts being operated by MDAs and SIs (outside the CRF), including donor funded projects, for periodic
monitoring with a view to the establishment of a functional STA in the future. The mitigating strategies are expected to
bring about significant improvements to both treasury management and control, including in the near term. However, the
overall risk associated with the treasury sub-system as assessed in May 2013 continues to be Substantial.
X
ANNEX 5
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3.3.
Accounting Sub-System: Fiduciary Risk Rating: Moderate
3.3.1. The GBAA 2005 Act forms the basis of all government accounting. According to Section 10(1) & (2) the
Accountant-General is responsible for keeping, rendering and publishing statements of the public accounts. The
government has indicated its intentions to adopt IPSAS, and AG’s accounting policies and procedures manual will be
revised in line with the IPSAS and take into account the newly installed IFMIS facility. However, the Auditor General’s
report on the financial statements notes that IPSAS accrual was not consistently complied within the preparation of the
latest financial statements.
3.3.2. Current Risk – The current main risk relates to approximately 40% of the government budget that is still accounted
for manually (outside IFMIS). This leads to issues of data integrity that are associated with such transitions to a
computerized environment. In addition, both the internal and external audit functions are not connected to IFMIS, which
has implications on their ability to audit IFMIS generated data effectively and in a timely manner.
3.3.3. Mitigation Measures – The reform unit and AG are committed to extending the deployment of IFMIS to the bigger
spending MDAs which constitute about 90% of government expenditure within the shortest possible time, although this is
currently on hold due to suspension of the vendor (Freebalance). The financial reporting requirements of the smaller units
constituting the remaining 10% will be handled directly by the AG’s department to ensure all expenditure goes through the
IFMIS. In addition, an Internal Audit Act is in the process of being enacted to guide and strengthen the operations of the
IA. The IA will be connected to IFMIS and adequately resourced to help strengthen the internal control environment. Due
to the fact that 60% of the budget is already accounted for using a safe a reliable IFMIS, with positive steps for bringing the
remaining 40% online in the shortest possible time, the residual risk associated with the accounting sub-system was rated
Moderate as at May 2013.
3.4.
Internal Control Sub-System: Fiduciary Risk Rating: Substantial
3.4.1. The introduction of the IFMIS has enhanced the accuracy and timelines of financial reporting and some key
aspects of the internal control system, including the automation of bank reconciliation statements where possible, and more
timely public debt reconciliation and verification. However, as noted earlier, a number of MDAs accounting systems are
still manual; the internal audit function is inadequately resourced, not backed by a substantive Act, and lacks the required
independence.
3.4.2. Current Risk – The Internal Audit unit is not regulated by an Act as dictated by good practice, is under staffed and
lacks qualified and experienced. The unit is not autonomous and lacks appropriate independence.
3.4.3. Mitigation measure – A draft IA act has been prepared for consideration and to be passed into an Act to govern its
operations and also give it the necessary independence to operate. The unit through the support of GoSL is in the process of
developing an Internal Audit Charter, which will further govern its operations and provides professional development
support for staff. However, both the IA Act and Charter are still too far from completion to positively impact the risk rating
for the sub-system. Consequently, the assessment concluded that the sub-system risk is still Substantial at May 2013.
3.5.
The External Scrutiny Sub-System: Fiduciary Risk Rating: Moderate
3.5.1. The establishment of the office and functions of the Auditor General (AuG) are governed by section 119 of the
constitution, GBAA 2005 and the Audit Service Act 1998. The President appoints and removes the Auditor General.
Section 119 (6), states that the autonomy of the AuG in the exercise of duties and shall not be subject to the direction or
control of any person or authority. However, in terms of good practice, the provision relating to the unconditional powers of
the President to terminate the Auditor General’s appointment is generally considered as a limitation of the independence
and powers of the AuG. Financially, both the constitution and the Audit Service Act give adequate autonomy to the AuG’s
Office. In practice however the budget allocations of the Audit Service are usually constrained by limited government
resources and the AuG’s office is thus subject to strict budget ceilings of MoFED, which again acts against the unit’s
independence. AuG’s audit reports and recommendations submitted to Parliament are now given the attention they deserve.
The reports are given wide press coverage and include discussions involving civil society, Ant-Corruption Commission and
other interest groups.
3.5.2. Current Risk- the key risk relates to impediments to the AuG’s independence occasioned by MoFED’s control of
the budget, as well as the risk of arbitrary termination of office.
3.5.3. Mitigation measure - This will require some modifications to the enabling legislation as part of the on-going PFM
reforms so that the AuG’s independence can be expressed in terms of both the law and the practice. As a result, the current
residual risk for the sub-system has been rated Moderate as at May 2013.
XI
ANNEX 5
Page XII/5
4.
Procurement: Fiduciary Risk Rating: Substantial
4.1.
The public procurement system in Sierra Leone comprises of a 2004 Public Procurement Act, the Regulation,
Manual and Standard Bidding Documents for goods, works and services all adopted in 2006 and developed in line with
internationally recognized best practices. In 2005, the Act allowed for the creation of the National Public Procurement
Authority, Procurement Committees, Procurement Units, Bid Evaluation Committees and the Independent Procurement
Review Panel. The 2010 PFM performance assessment report, the 2012 country procurement performance review report
and the Bank’s 2011 assessment of the national competitive bidding procedures report noted some inconsistencies,
contradictions and ambiguities in language, procurement methods and thresholds amongst the PPA, its Regulations,
procurement manual and standard bidding documents. The NPPA is currently addressing these shortcomings.
4.2.
Current Risk – There is inadequate capacity at both NPPA and MDAs and this impedes the efficient and effective
functioning of the procurement system. The low capacity of procurement practitioners and weak functioning of the
procurement structures across the board results in a residual risk of the procurement sub-system of Substantial as at May
2013.
4.3.
Risk Mitigation - The procurement Act is being revised which will take into account the inconsistencies,
contradictions and ambiguities identified by various fiduciary assessment reports amongst procurement instruments.
Furthermore, once the revised Act is approved, World Bank has expressed willingness to support the recruitment of a
consultant to revise the regulation, manual and standard bidding documents. As part of the measures to also mitigate the
inadequate human and logistical capacity of NPPA, MDA and procurement practitioners, the World Bank in support of
government’s efforts has a pipeline project aimed at improving the procurement system significantly
5.
Governance: Fiduciary Risk Rating: High
5.1.
In the past decade, the country has made the third largest improvement in governance of any African country.
According to the Mo Ibrahim Index of African Governance Sierra Leone has increased in ranking from 48 th (2011) to 30th
(2012) out of 52 countries. In 2010, the DBI ranked Sierra Leone in the top 25 in the world for overall improvement in
ease of doing business over the last five years, and was praised for its investor protection reforms and administrative tax
compliance reforms. In 2013 improvements were made in the areas of registering property and getting credit. Since 2007,
there are some indications of political will to more effectively tackle corruption. This is reflected in the 2011 Global
Corruption Barometer, with an increase of respondents assessing the government’s actions in the fight against corruption as
effective, from 63% in 2009 to 73% in 2011. While anti-corruption institutions lack resources, staff and expertise to
effectively prevent and combat corruption, recent reforms of the Anti-Corruption Commission have extended its powers
and contributed to significantly improve its capacity to investigate and prosecute corruption cases. Emerging civil society
activism, an outspoken media and the support of the international community to the government’s anti-corruption efforts
are promising factors accompanying this positive trend.
5.2.
However, corruption permeates almost every sector of Sierra Leone’s public life. In 2012, Sierra Leone scored 31
on a scale of 0 (highly corrupt) to 100 (highly clean) in Transparency International’s (TI) Corruption Perceptions Index,
ranking 123 out of 176 countries. The 2011 Worldwide Governance Indicators also reflects Sierra Leone performing well
below average on the six dimensions of governance. While it has maintained performances in terms of voice and
accountability and political stability in recent years, major challenges continue in the areas of government effectiveness
(9.95 on a scale of 0 to 100), rule of law (22.54), and control of corruption (26.54).
5.3.
More needs to be done to improve and consolidate these achievements as the country now faces significant new
PFM opportunities and challenges, particularly those arising from expected streams of revenue from natural resource assets,
which has not yet translated into sustainable, inclusive economic growth, and governments renewed determination to close
its infrastructure deficit. More generally, there is a significant gap between PFM policies, rules and procedures and their
actual implementation in practice in MDAs and at local level. The Government recognizes the need to address corruption
issues and promote good governance as part of its current development strategy which identifies governance and
management of natural resources as two key pillars in its strategy. The A4P supports the country’s long-term vision of
becoming an inclusive and green middle-income country by 2035. This will require effective governance with set
guidelines and rules supported and executed by responsible institutions.
XII
ANNEX 5
Page XIII/5
6.
Bank’s Fiduciary Strategy during the CSP period
6.1.
Financial Management
Efforts to include aid on budget will continue in sync with the progress of the IFMIS roll out. All MDAs and ISs that are
connected to the IFMIS will hence forth use the IFMIS for accounting and reporting for all new projects coming on stream.
On-going projects that are able to migrate without causing undue disruption will be encouraged to do so, otherwise they
will see out their remaining project lives using existing arrangements. Subject to a satisfactory Supreme Audit Institution
(SAI) Assessment, the audit of Bank financed projects will be moved from the present private audit firms to the ASSL
during the CSP period. Special Accounts, where required, will be opened through the CBSL.
6.2.
Procurement
The Bank should complement the existing capacity building initiatives in the country and an updated FRA should be
undertaken during the appraisal of the budget support operation to determine whether the Bank could gradually adopt
country procurement systems in the management of projects. As an interim measure, the Bank should use the country’s
NCB procedures with exceptions on the gaps identified until the revised PPA is approved by parliament
XIII
ANNEX 6
Page XIV/1
PORTFOLIO STATUS (AS AT MAY 31, 2013)
No. Project Name
Project ID
1
PORT LOKO LUNGI ROAD
P-SL-D00-004
2
MATOTOKA SEFADU ROAD
REHABILITATION PROJECT
P-SL-DB0-005
3
THREE TOWNS WATER SUPPLY AND
SANITATION
P-SL-EA0-001
4
Net
Loan/Grant
Financing
(UA)
Disb.Ratio Source Sector Name
Approval
Date
1st Disb.
Effective
Completion
Date
17.06.2009
05.04.2012
05.05.2012
05.06.2012
26.10.2010
26.10.2010
26.10.2010
26.10.2010
03.03.2011
26,260,000
3,180,000
6,820,000
12,000,000
6,100,000
14,700,000
6,500,000
1,200,000
62.06
16.17
7.54
FSF
ADF
ADF
FSF
ADF
ADF
FSF
FSF
Transport
23.11.2011
23.11.2011
23.11.2011
08.09.2012
31.12.2013
30.06.2016
30.06.2016
30.06.2016
31.12.2015
31.12.2015
31.12.2015
31.12.2015
08.04.2011
02.02.2005
02.02.2005
05.03.2012
21.02.2006
09.11.2006
31.12.2023
31.12.2013
31.12.2013
21,694,421
10,000,000
2,000,000
85.15
56.14
68.30
27.03.2013
Age (yrs)
Implementation
Status
IP**
DO**
3.88
1.9
2.7
NON PP/NON PPP
Transport
1.07
2.2
3.0
NON PP/NON PPP
Water Supply
& Sanitation
2.52
2.3
2.3
NON PP/NON PPP
ADB
ADF
ADF
Private
2.07
1.5
1.8
PP
Agriculture
8.25
2.2
2.5
NON PP/NON PPP
ADDAX BIOENERGY PROJECT
AGRICULTURE SECTOR
REHABILITATION
PFM AND BUSINESS ENABLING
SUPPORT PROJECT
P-SL-AAG-002
P-SL-K00-006
30.09.2011
31.01.2012
31.12.2014
4,000,000
25.57
FSF
Multi-Sector
1.59
3.0
3.0
NON PP/NON PPP
CENTRAL BANK OF SIERRA LEONE
EMERGENCY ASSISTANCE CHOLERA
TECH ASSISTANCE FOR MCC CA
9 DEVELOPMENT
SUPPORT TO THE PPP UNIT - OFFICE
10 OF PRESIDENT (SL)
P-SL-HA0-004
P-SL-IBE-001
30.11.2011
11.10.2012
12.09.2012
21.11.2012
31.12.2013
31.10.2013
807,018
496,939
28.64
100.00
FSF
ADF
Finance
Social
1.42
0.56
2.6
-
3.0
-
NON PP/NON PPP
NO SUPERVISION
P-SL-KF0-006
31.03.2013
08.05.2013
31.12.2013
137,467
-
FSF
Multi-Sector
0.09
-
-
NO SUPERVISION
G-SL-KF0-SUP-001
07.09.2012
24.10.2012
31.12.2013
213,447
116,109,292
40%
TF
Multi-Sector
0.65
2.2
-
-
NO SUPERVISION
5
6
7
8
P-SL-AA0-007
** 3--> Highly Satisfactory; 2--> Satisfactory; 1--> Unsatisfactory; (-) -->No supervision
XIV
2.4
ANNEX 6
Page XV/1
Sectorial Distribution
Type of Instrument
3,7% 0,7%
10,3%
0,4%
18,7%
66,1%
Infrastructure
Private
Agriculture
Multi-sector
Financial
Social
National
Investm.
Projects
and Inst.
Support
19%
81%
Private
Annual Disbursement
2012
Year
2011
2010
2009
2008
2007
0
20
40
60
Amount Disbursed (UA million)
XV
ANNEX 7
Page XVI/1
2013 COUNTRY PORTFOLIO IMPROVEMENT PLAN (CPIP)
Major Issues
(1.1) Ill-defined roles of PIU staff
Action Required
(1) Project Design/Appraisal
(1.1) Develop and agree on a set of policy measures to clearly define the responsibilities and appropriate
future role of PIUs and sustainability arrangements (including transitional roles of current PIUs).
Responsibility
Timeline
MoFED/PIUs
Immediate
(1.2) Inadequate design and implementation
readiness
(1.2) Simplify loan conditions whilst ensuring project readiness through sound preparation work
GoSL/AfDB
On-going
(1.3) Lack of funding for M&E training
(1.3) Involve M&E Experts in project design and provide them with training during the early stages of
project implementation
GoSL/PIUs/AfD
B
Immediate
(1.4) Non-operational M&E systems making it
impossible to generate requisite project data
(1.4) Estimate cost of M&E systems during appraisal and provide for corresponding budget
PIUs/AfDB
On-going
(2) Civil Works
(2.1) Ensure the accuracy of project cost estimates at appraisal realistic, while ensuring inclusion of
contingencies.
GoSL/
AfDB/PIUs
On-going
(2.2) Explore alternative funding options for maintenance of civil works.
GoSL
Immediate
(2.3) Provide training for local service providers, especially civil works contractors
GoSL/AfDB
December
15,2013
(2.4) Reduce the number of signatories required on payment certificates
GoSL
Immediate
(2.5) Foster policy on commercial loan acquisition for national contractors.
GosL
On-going
(3.1.1) Provide continuous capacity building on procurement for all levels
AfDB
December
15,2013
(3.1.2) Provide training in contract management. Include the participation of commercial banks and
contractors
AfDB/MoFED
March
31,2014
(3.2.1) Reduce disbursement timeline by allowing the use of special accounts for works contracts rather
than direct payments
AfDB
On-going
(3.2.2) Align payment terms with funding requirement
PIUs/AfDB
On-going
(3.3.1) Reduce the bureaucracies in recruiting auditors.
AfDB
On-going
(3.3.2) Capacitate Internal audit to oversee the implementation of external auditors recommendations
PIUs/GoSL
Immediate
(3.3.3) Maintain computerized accounting systems at PIUs and train Project Accountants accordingly
PIUs
On-going
(2.1) Lack of budget allocation to cater for cost
overruns
(2.2) Lack of adequate funds to maintain
completed civil works facilities
(2.3) Local private sector contractors often too
young and inexperienced
(2.4) Bureaucracy (delays in approvals at various
levels of Government)
(2.5) Low capacity and performance of national
civil works contractors
(3) Fiduciary
(3.1) Procurement
(3.1.1) Inadequate funds allocated by PIUs for
procurement t training.
(3.1.2) Poor contract management leading to
delays in project implementation.
(3.2) Disbursement
(3.2.1) Long timeframe at each disbursement
authorizing/processing stage
(3.2.2) Loss to contractors due to exchange rate
volatility
(3.3) Financial Management and Audit
(3.3.1) Bureaucracies in recruitment of auditors
(3.3.2) Inadequate follow-up on project audit
recommendations
(3.3.3) Lack of computerized accounting systems
in PIUs
XVI
ANNEX 8
Page XVII/1
INDICATIVE DONOR DIVISION OF LABOR IN SUPPORT OF AGENDA FOR PROSPERITY
XVII
ANNEX 9
Page XVIII/5
ANNEX 9:
Pillar and
Sub-Pillar
Goals
Key
Constraints/Issues
Impeding
Achievement of
Goals
CSP RESULTS FRAMEWORK
Final Outcomes
(expected by end of
CSP, 2017)
Final Outputs
(expected by end of
CSP, 2017)
Mid-Term
Outcomes
(expected by 2015)
Mid-Term Outputs
(expected by 2015)
ADB
Interventions
Expected During
CSP c/
PILLAR 1: ENHANCING ECONOMIC GOVERNANCE AND TRANSPARENT MANAGEMENT OF NATURAL RESOURCES
REVENUE
Sub-pillar 1:
Public Financial
Management &
Transparency:
Goal: Strengthen
capacity systems
and processes to
increase efficiency,
transparency and
accountability of
public institutions to
ensure that public
resources are
effectively and
efficiently
managed,
monitored, and
accounted, free from
corruption.
- Weak capacities of
public entities (at central
and local council levels) to
accurately plan, manage
and monitor government
budgets, ensuring
transparency and
accountability for
government revenues,
expenditures and other
resources;
- Weak PFM systems,
processes, policies &
procedures and
procurement practices, at
all levels, combined with
ineffective implementation
of policies for control of
corruption.
- Increased
transparency and
predictability in the
budgeting, revenues,
and expenditure
outturns, through
enhanced financial
reporting
PEFA PI 1
Baseline (2010): B
Target (2017): B+
PEFA PI 24
Baseline (2010): B+
Target (2017): A
PEFA PI 25
Baseline (2010): C+
Target (2017): B+
- Enhanced legislative
scrutiny and follow up
on audit reports
Baseline (2010):
PEFA PI 27-C+ and
PI-28-D+ ;
Target: (2017) of at B
for both PI- 27 and
28.
- Improved
competition, value for
money and controls in
procurement through
compliance of
procurement
procedures
- End-year budget
executions, with
detailed fiscal outturns
produced quarterly and
published outturns and
budget reports on the
MOFED website and
outreach areas.
- In-year Budget
execution reports and
year-end financial
statements posted to
MoFED on a timely
basis increasing
transparency
- In-year budget
executions, with
detailed fiscal outturns
produced quarterly and
year-end financial
statements produced
(no more than 14days
after the quarter and not
more than 3 months
after year end)
Ongoing:
EGRP II 2011-2012
PFMBESP 20122014
New:
FSF Support via
Budget Support
2014-2017
ISP 2014/2015-2017
Partners: WB, EU,
IMF, DFID
- Timely public
hearing of external
audit reports involving
TV and radio coverage
by inviting ministers of
state, heads of MDAs
and other officers
linked to audit findings
as per legislation.
- % of MDAs
compliant with
procurement
procedures
Baseline: 67%
Target: 100%
XVIII
- Increased legislative
scrutiny in the budget
process, enforcement of
audit recommendation
and improved control
environment through
effective internal audit
function.
- Audit implementation
plan prepared outlining
recommendations and
follow-up action by
GoSL.
- Internal audit Act
enacted and operative to
make IA effective.
- Increased use of the
country procurement
system by external
stakeholders
- NPPA fully
established in the
regions to increase
coverage, Procurement
directorate created and
operational
ANNEX 9
Page XIX/5
Sub-pillar 2:
Natural Resource
Governance
Goal: To enhance
natural resource
governance, and
thereby contribute to
sustainable resource
development and
increased public
revenues
Sub-pillar 3:
Improved business
enabling
environment
Goal: To improve
business enabling
environment and
drivers for
promoting inclusive
and green private
sector development
- Weak revenue
transparency and
accountability, especially
in the mining and energy
sectors; and challenges to
optimize revenue
generation and collection
resulting from large scale
mineral investment
- Weak capacity of public
and CSO stakeholders in
terms of understanding the
value chain of extractive
industries
Challenges, include: (i)
poor infrastructure (i.e.
electricity, roads, & ICT);
(ii) lack of access to
finance especially among
women; (iii) administrative
barriers (legal and
regulatory) such as absence
of an SME policy and
other regulatory
frameworks for business;
(iv) Weak SME linkages;
(v) significant lack of
entrepreneurial and
vocational skills; and (vi)
weak private sector
capacity to forge effective
business associations for
enhanced advocacy of
Baseline (2010):
PEFA PI 20-C+
Target (2017): B+
- Enhanced domestic
revenue mobilization
in the mining and
non-mining sectors.
Baseline: 12.6%
(2012)
Target: 23%
- Strengthened
participation of civil
society in policy
dialogue and
monitoring of
Government revenues
- Improved business
environment
Baseline (2013): 140
Target (2017): 110
(Based on Doing
Business Rankings)
- Increased # of
viable and diversified
enterprises
(disaggregated to
highlight green
businesses like
renewable energy or
eco-tourism)
- NRA capacity
enhanced (e.g.
Minerals tax unit
within NRA
established; taxation of
large tax payers
enhanced e.g.
telecommunication
companies; NRA able
to report annually on
mining revenues in a
transparent way).
- Number of policy
reforms/recommendati
ons from Civil Society
approved by
Government
- Improved
administration of taxes
in the extractive sector
- Strengthened
participation of civil
society in policy
dialogue and
monitoring of
Government revenues
- Development of
accountability forums
in the councils and
chiefdoms
- Implementation of
Doing Business
reforms (at least 3 per
year)
- Improved Access to
Finance for the private
sector
- Increased number of
regulatory frameworks
formulated and
functional
Ongoing:
- Support to policy
framework for the
development of SMEs
- Increased number of
small and mediumscale enterprises.
- Increased number of
female owned SMEs
- A gender responsive
SME Policy approved
and implemented
Partners: DFID, EU,
IFC, WB
XIX
- Minerals tax unit
established
New Lending:
ISP
Budget Support
New Non-Lending:
- Domestic Revenue
Mobilization Study
- Minerals Fiscal
Regime
Harmonization Study
(MRU)
- Mapping of Natural
Assets
Partners: DFID,
UNDP, GIZ, IMF
PFM and Business
Enabling Support
Project
ANNEX 9
Page XX/5
business environment.
PILLAR 2: SUPPORTING TRANSFORMATIONAL AND SUSTAINABLE INFRASTRUCTURE DEVELOPMENT
Result 1: Energy
Goal: To increase
access to sustainable
energy services and
affordable/reliable
power for
communities and
economic prosperity
- Electricity access is
weak.
- Access rate has
improved from 2%
currently to 6%
- Power generation
capacity is inadequate to
meet demand
- 26 additional
communities
connected to the
electricity network
- Access rate has
improved from 2%
currently to 4%
Capacity of the
Ministry of Energy
built
- Generation capacity
increases from 90 MW
currently to 105 MW
- Inadequate transmission
and distribution capacity
- Improved capacity
of the Ministry of
Energy for negotiating
contracts and building
a pipeline of
investments : 2 PPA
contracts concluded; 4
feasibility studies
completed
Result 2:
Transport/ Roads
Sub-sector
Goal: To improve
road accessibility
and connectivity,
which will
contribute to
inclusive and green
growth, promote
national and
regional integration,
improved urban
transport, and the
- Poor road condition
resulting in hindered
accessibility and
connectivity nationally
and regionally.
Suppressed economic
diversification and trade
opportunities due to
inadequate transport
infrastructure and services
- Lack of axle load
control regulatory
framework, inadequate
provisions for road
- Improved core road
network
(CRN=primary &
secondary class roads)
conditions in at least
“good” condition.
Baseline: 36.9 % of
CRN (2011)
Target: 50 % of CRN
(2017)
- Increased share of
paved road network
Baseline: 8.9% (1031
km) (2012)
- 70 km of road
rehabilitated (between
Matotoka and Yiye)
- 65 km of road
upgraded (between
Bandajuma and
Zimmi), with climate
change resilience
integrated
- 88 km of road
upgraded between
Kenema and
Zimmi.[Medium
Scenario]
XX
Partial Risk
Guarantee to secure
the 15 MW off-take
from the Addax
Biofuel Energy
CLSG Project:
Interconnection and
electrification of 26
communities along
the CLSG line
(additional
560GWh/year
available for the grid
by 2016)
- Construction of 550
km 225 kV
transmission line and 5
substations
- Weak institutional
capacity of the Ministry of
Energy.
New Lending:
Partners: WB, JICA,
DFID, KfW, EIB
- Reduced travel time
and enhanced road
safety in completed
sections.
- Improved road
condition and
sustainability in the
completed road
sections
- Reduced VOC in the
completed road
sections
- Enhanced access to
markets and trading
- Road upgrading
contracts awarded, and
related services
contracts.
- 20% of the expected
Employment generation
(at least 30% for
women).
- Axle load control
Enforcement Strategy
completed.
- Completed Ports
Lending
Ongoing:
- Matotoka – Sefadu
Road, Section I:
Matotoka – Yiye (70
km)
- Lungi – Port Loko
Road (62 km)
New:
- Bandajuma - Zimmi
road (61 km);
Kenema – Zimmi
road (88 km)
Non-Lending
ANNEX 9
Page XXI/5
socio-economic
development of
Sierra Leone
maintenance; and poor
road safety.
- Institutional capacity for
effective coordination of
the sector
Target: 10.2% (1184
km) (2017)
- Enhanced national
and regional
integration
interconnectivity along
specific trade routes
Baseline (2012): VOC:
0.75 USD/km – light
trucks; Travel Time :
Bandajuma – Zimmi:
5.25 hrs; Kenema –
Zimmi: 3.75 hrs
Target: VOC: 0.50
USD/km – 30%
reduction (light
truck);Travel Time:
Bandajuma – Zimmi:
1 hr ;Kenema –
Zimmi: 1.5 hrs
- Employment
generated during
construction [100,000
person-days]. (at least
30% of jobs created
for women)
- Axle load control
measures instituted
and enforced
- Gender Responsive
Ports Development
Master Plan
opportunities within
and between Sierra
Leone and neighboring
countries.
- All legal and
statutory requirements
for implementation of
network wide axle
load control
completed.
- Axle load control
measures rolled-out in
at least 50 % of paved
Core Road Network
(2015); at least 95%
compliance level
established in rolled
out areas.
Development Gender
Responsive Master
Plan
- Development of
Ports Master Plan
Partners: EU, China,
WB, OFID, IsDB
- Reduced road
maintenance needs
through
implementation of
network wide axle
load control.
Baseline: No axle load
control (Aug 2013)
Target: Axle load
control measures fully
rolled-out in paved
Core Road Network
(2017); at least 95%
compliance level
established.
Result 3: Water
Supply and
- Inconsistent water and
sanitation sector policies
- Limited Capacity to
- Increased Water
- National Sector
Supply Coverage from Agencies restructured
57 - 70% & Sanitation and 100% staffed with
XXI
- Increased Water
- National Rural water
Supply Coverage from Supply and Sanitation
57 - 62% & Sanitation Program developed by
On-going
-Three towns Water
Supply and
ANNEX 9
Page XXII/5
trained and equipped
personnel, 30% female
- Local Council
Goal:
- Reduced NonSector Specific staff
Improve sustainable Revenue Water in
positions are filled
and equitable access - Limited stakeholder
Urban areas for
with appropriately
to water supply and
coordination among
SALWACO from 95 trained and equipped
sanitation for all
national stakeholders
25%.
personnel
uses including the
- Improved Water
- Annual Sector
sustainable
- Limited Coverage and
Point Functionality
Monitoring Reports
management of
low functionality rate of
from 65 – 85%
published and Joint
water resources to
existing water supply
Govt/Donor Sector
ensure prosperity.
and sanitation systems,
- Reduced Water
Reviews held annually
exacerbating water borne
Borne Disease
- Flagship studies
disease prevalence,
prevalence: Cholera
carried and at least one
including frequent
from 4 – 2% &
Best Practices Report
cholera epidemics
Diarrhea from 14-7%
produced &
- Weak sector monitoring
- Structured and regular disseminated every
system
CSO & CBO activity in year
the sector.
(5) - Increase in sector
financing from 0.35%
GDP to 1% GDP
Sanitation
deliver water and
sanitation services
Coverage from 13 45%.
XXII
Coverage from 13 25%.
- Reduced Non-
2015
- National Groundwater
Map produced by 2014
Revenue Water in
- 75% of the required
Urban areas for
Sector agencies staff at
SALWACO from 95 - national and local levels
50%.
are trained and in post
- Improved Water Point - Financing for sector
Functionality from 65 – increased to 0.7% of
75%
GDP
- Structured and regular 3rd Annual Sector
CSO & CBO activity in Monitoring Report
produced and 3rd joint
the sector.
Sector Review held
Sanitation Project
(Bo, Makeni and
Kenema cities)
ADF 12 Lending
(New)
Rural Water Supply
and Sanitation
Project
Partners: DFID,
JICA, WB, UNICEF,
WFP, WHO
ANNEX 10
Page XXIII/1
INDICATIVE RESOURCE ALLOCATION (2013 – 2017)
Project
Approval
Year
ADF &
FSF UA
million
Other
UA
million
Total
Allocation
ADF &
FSF UA
million
Low Scenario
Rural Water and Sanitation
Project
WAPP Interconnection
Project (multinational)
FSF Pillar III Targeted
Technical Assistance
Trans-boundary Water
Resources Management of
the Manor River Basin
Other
UA
million
Total
Allocation
ADF &
FSF UA
million
Medium Scenario
Other
UA
million
Total
Allocation
Sources of Funding
High Scenario
2013
20.4**
4.6
25.0
20.4**
4.6
25.0
20.4**
4.6
25.0
2013
9.2
18.5
27.7
9.2
18.5
27.7
9.2
18.5
27.7
ADF 12 - UA 9.065 m
(Loan), UA 2.854 m
(Grant); FSF UA 8.468 m;
RWSSI-TF UA 4.61m
ADF 12 UA 9.2 ; Regional
12 UA ml; NTF USD 10
m (UA 6.5m)
2013
1.8
1.8
1.8
1.8
1.8
1.8
FSF UA 1.8 m
1.0
AWF - UA 1.0 m
2013
1.0
1.0
1.0
1.0
1.0
Budget Support Program
2014 - 16
15.0
15.0
15.0
15.0
15.0
15.0
ADF 13 - UA 15.0 m
Institutional Support Project
Upgrading of Zimmi –
Bandajuma Road
ADDAX Bioenergy Partial
Risk Guarantee
Bumbuna Hydroelectric
Power Project II
Upgrading of the Kenema Zimmi Road - 88 km linking
up to Trans-West African
Coastal Highway)
2014 - 17
5.0
5.0
5.0
5.0
5.0
5.0
2014 - 16
13.0
39.0
13.0
41.0
13.0
41.0
ADF 13 -UA 5.0 m
ADF 13 – UA 13.0m;
Regional - UA 26- 28 m
2014 - 16
3.0
3.0
3.0
3.0
3.0
3.0
ADF 13- (15 MW to NPA)
2015 - 17
26.0
100.0
100.0
2015 - 17
28.0
100.0
100.0
15.0
28.0
43.0
28.0
100.0
100.0
Private Sector
30.0
58.0
88.0
ADF 13 – UA 15 - 30 m;
Regional - UA 28-58 m
31.4
24.1
55.5
31.4
24.1
55.5
31.4
24.1
55.5
36.0
126.0
162.0
51.0
156.0
207.0
66.0
186.0
252.0
TOTAL
67.4
150.1
217.5
82.4
** Includes DFID’s co-financing of UA6.03 million to be channeled through FSF
180.1
262.5
97.4
210.1
307.5
Total ADF-12 Period (2013)
Total ADF-13 Period + 1st
year of ADF 14 (2014-2017)
XXIII
ANNEX 11
Page XXIV/1
INDICATIVE NON- LENDING PROGRAM FOR 2013-2017
2013
o Stock Taking Report on Green Growth
o African Economic Outlook: Sierra Leone Chapter
o Skills Gap Analysis for Private Sector Development
2014
o
o
o
o
o
2015 –
2017
o African Economic Outlook: Sierra Leone Chapter
o PEFA/ PFM Review
o Other ESWs TBD during the CSP period
African Economic Outlook: Sierra Leone Chapter
Domestic Resource Mobilization Study
Country Portfolio Performance Review
Minerals Fiscal and Licensing Regimes Harmonization Study (at MRU level)
Port Master Plan Study
XXIV