AFRICAN DEVELOPMENT FUND
DRC/PMMU/2002/02Language: EnglishOriginal: French
APPRAISAL REPORT
MULTISECTORAL INSTITUTIONAL SUPPORT PROJECT
DEMOCRATIC REPUBLIC OF CONGO
COUNTRY OPERATIONS DEPARTMENT OCCCCENTRAL REGION October 2002
TABLE OF CONTENTS
Pages
PROJECT INFORMATION SHEET, CURRENCY EQUIVALENTS, WEIGHTS ANDMEASURES, LIST OF TABLES, LIST OF ANNEXES, LIST OF ABBREVIATIONS,BASIC DATA, LOGICAL FRAMEWORK, EXECUTIVE SUMMARY i - ix
I PROJECT ORIGIN AND BACKGROUND 1
II THE SECTOR 22.1 Public Administration 22.2 Private Sector Development 32.3 Operations by Major Donors 3
III THE SUB-SECTOR 43.1 Ministry of the Plan and Reconstruction (MPR) 43.2 Ministry of the Economy, Finance and the Budget 63.3 Studies and Planning Departments (DEP) in the Sectoral Ministries 73.4 Support Structures for the Emergency Multisectoral Socio-economic
Infrastructure Rehabilitation Project (PMURIS) 83.5 Support Structures for Private Sector Development 9
IV THE PROJECT 104.1 Project Design and Rationale 104.2 Project Areas and Beneficiary Structures 104.3 Strategic Context 114.4 Project Goal and Objectives 114.5 Project Description 114.6 Project Cost 174.7 Sources of Finance and Expenditure Schedule 184.8 Environmental Impact 194.9 Social Impact 19
V PROJECT IMPLEMENTATION 195.1 Executing Agency 195.2 Institutional Arrangements 205.3 Implementation Schedule 205.4 Procurement Arrangements 215.5 Disbursement Arrangements 235.6 Monitoring and Evaluation 235.7 Financial and Audit Reports 245.8 Coordination of Donors 24
VI PROJECT SUSTAINABILITY AND RISKS 246.1 Recurrent Costs and Expenses 256.2 Project Sustainability 256.3 Major Risks and Mitigating Measures 25
TABLE OF CONTENTS (cont’d)
VII PROJECT BENEFITS 267.1 Economic and Social Benefits 267.2 Impact of Project on Cross-cutting Issues 26
VIII CONCLUSIONS AND RECOMMENDATIONS 278.1 Conclusions 278.2 Recommendations and Grant Effectiveness Conditions 27
This report was prepared following an appraisal mission to the DRC from 17 July to 3 August 2002 by Mr. N. SAFIR,Division Manager, OCSD.3 (Mission Leader), Mrs. A. DIARRA-THIOUNE, Economist, OCCC, Messrs. S. DIAKITÉ,Hydraulic Engineer, OCIN.1, M. BAH, Public Utilities Economist, OCIN.1, O. SOMALI, Consultant/Economist, OCCC, BKWINDJA, Consultant/ Education Expert, OCSD.3 and C. DIOP Consultant/Financial Analyst, OCIN.1. Any inquiryrelating to this project should be referred to Mr. M. E.C. ANUSIONWU, Country Operations Manager, OCCC, p. 4182, I.KOUSSOUBE, Country Operations Manager, Ext. 4351 or L.B.S. CHAKROUN, Director OCCC, Ext. 4008
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AFRICAN DEVELOPMENT FUND
01 B.P. 1387 ABIDJAN 01Tel.: 20-20-44-44: Fax: 20-20-40-99
PROJECT INFORMATION SHEET
Date: September 2002
The information given hereunder is intended to provide some guidance to prospective suppliers,contractors, consultants and all persons interested in the procurement of goods, works and services forprojects approved by the Board of Directors of the Bank Group. Further information may be obtainedfrom the Executing Agency of the Grant Beneficiary.
1. COUNTRY : Democratic Republic of Congo
2. PROJECT NAME : Multisectoral Institutional Support Project
3. LOCATION : Kinshasa
4. BENEFICIARY : Democratic Republic of Congo
5. EXECUTING AGENCY : Bureau Central de Coordination (BCECO)Boul. du 30 juin, Immeuble Alhadef, 4ème étageKinshasa, RDCTel : (243) 8930323 Fax: (243) 8801586E-mail: [email protected]
6. PROJECT DESCRIPTION : The main project components are:
(i) Support to macroeconomic management and programming of public investments;
(ii) Support to the emergency multisectoral economic infrastructure rehabilitationprogramme;
(iii) Support to private sector development structures;
(iv) Project management
7 PROJECT COST : UA 3.40 million
i) foreign exchange cost : UA 1.95 million
ii) local currency cost : UA 1.45 million
8. ADF GRANT
TAF : UA 3.23 million
9. OTHER SOURCES
Government : UA 0.17 million
10. GRANT APPROVAL DATE : November 2002
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11. ESTIMATED PROJECT START-UP DATE : March 2003AND DURATION and 24 months
12. PROCUREMENT OF GOODS AND SERVICES
Goods
Computer and office automation equipment (computers, printers, software, andphotocopiers) will be procured through international competitive bidding for about UA 0.83million, in one single package. Local shopping procedures will be followed in theprocurement of equipment (UA 0.09 million), office furniture (UA 0.14 million), vehicles(UA 0.05 million), and sundry supplies (UA 0.15 million), all amounting to UA 0.43 million.
Consultancy Services
A consulting firm will be recruited on the basis of a short list to provide two qualifiedexperts in the following specialties: (i)) an expert in public project management, who willwork with the Secretary-General of the Plan in coordinating and controlling the quality ofproject activities, as well as preparing a 21-month training programme, and (ii) an expert inpublic investments programming, who will provide technical assistance to the Department ofProgramming and Budgeting in the Ministry of the Plan and Reconstruction, as well as tosectoral ministries for a period of 18 months. The cost estimates for the contract stand at UA0.40 million.
Four individual consultants will be recruited locally on the basis of a short list, asfollows: (i) two consultants, for 21 months each, who will assist the TechnicalAssistant/Project Coordinator; one will be specialized in human resource development andwill, in particular, prepare a training programme for the entire project, and the other will bespecialized in information technology, and (ii) two consultants, for 18 months each, who willwork with the Technical Assistant assigned to the Department of Planning and Budgeting(DPB); one will be a macroeconomist specialized in the monitoring and evaluation of publicinvestments, and the other will be a computer analyst/programmer specialized in databasemanagement.
Four other consultants will be recruited locally on the basis of a short list, for periodsnot exceeding six months, for the following services: preparation of project information sheetsin priority sectors, identification of industrial enterprises, translation into English, andcreation of a Website. The total budgetary amount for the locally recruited consultants forservices other than training is UA 0.25 million.
A Studies Fund, for an amount equivalent to UA 0.3 million, will also be establishedwithin the Pre-investment Division of DPB. The fund will be used in conducting well-targetted studies, not exceeding three months and to be used in project preparation in prioritysectors, and in identifying specific support activities for administrative services engaged in therehabilitation and management of socio-economic infrastructure. The consulting firms orindividual consultants to be responsible for conducting the studies will be selected on the basis ofa short list. The terms of reference of the studies and consultants will be submitted to the Bankfor prior approval.
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Training
5.4.2 Training (for an amount equivalent to UA 0.85 million) will be provided by trainingcentres abroad or in the country, or by consultants responsible for conducting local workshopsand seminars. The training centres and consultants will be selected on the basis of short lists.
Operating Costs
Office supplies and consumables will be procured in accordance with well-establishedcommercial practices in the country deemed acceptable to the Bank. The other operating costitems consist of per diem, travel costs, and overheads.
Audit
Project audit services (UA 0.05 million) will be provided by audit firms selectedon the basis of a short list, with the lowest bid for comparable services being the methodof selection.
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CURRENCY EQUIVALENTS
(September 2002)
Currency Unit = Congolese Franc (FC)UA 1 = US$ 1.32751UA 1 = FC 458US$ 1 = FC 345
WEIGHTS AND MEASURES
Metric System
FISCAL YEAR
1 January – 31 December
LISTOF TABLES
Tables Pages
4.1 Cost Estimates by Component 184.2 Cost Estimates by Expenditure Category 194.3 Sources of Finance 194.4 Expenditure Schedule by Component 204.5 Expenditure Schedule by Source of Finance 205.1 Estimated Project Implementation Schedule 225.2 Procurement Arrangements 23
LIST OF ANNEXES
Annexes Number of pages
Annex 1 Administrative Map of DRC 1
Annex 2 BCECO Organization Chart 1
Annex 3 Terms of Reference of the Technical Assistant to the Department
of Planning and Budgeting 2
Annex 4 Terms of Reference of Project Coordinator 2
Annex 5 Terms of Reference of Project Audit 1
Annex 6 Detailed Project Cost 4
Annex 7 List of Goods 3
Annex 8 List of Training Courses 3
Annex 9 Presentation of the Project Executing Agency (BCECO) 2
Annex 10 Presentation of DT, BCC & OGEDEP 1
Annex 11 Detailed Project Implementation Schedule 3
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LIST OF ACRONYMS AND ABBREVIATIONSACBF = Fondation pour le renforcement des capacités en AfriqueADF = African Development FundANAPI = Agence nationale de promotion des investissementsBCC = Banque Centrale du CongoBCECO = Central Coordination OfficeBD = Bidding DocumentCDEF = Cellule de développement de l’entreprenariat fémininCEPI = Studies and Industrial Planning UnitCFE = Women Contractors BoardCIDA = Canadian International Development AgencyCOSEP = Studies and Planning Structures Coordination UnitCSNEP = NEPAD Monitoring CommitteeCT-SRP = Comité technique de suivi de la stratégie de réduction de la pauvretéDCS = Department of Inspection and MonitoringDEP = Department of Studies and PlanningDEPFI = Department of Financial Studies and PlanningDI = Department of InfrastructureDIN = Department of IndustryDPB = Department of Programming and BudgetingDRC = Democratic Republic of CongoEIP = Enhanced Interim ProgrammeEMRRP = Emergency Multisector Rehabilitation and Reconstruction ProgrammeGDP = Gross Domestic ProductHIMO = Labour IntensiveHIPC = Heavily Indebted Poor Countries InitiativeICB = International Competitive BiddingICSP = Interim Country Strategy PaperIDEF = Initiatives de développement de l’entreprenariat fémininIMF = International Monetary FundINS = National Statistics InstituteLC = Local CurrencyMEFB = Ministry of the Economy, Finance and the BudgetMICP = Ministry of Industry, Trade and SMEMPR = Ministry of the Plan and ReconstructionNEPAD = New Partnership for Africa’s DevelopmentOGEDEP = Public Debt Management AuthorityOVD = Office des voiries et drainagesPCU = EMRRP Coordination UnitPNA = National Sanitation ProgrammeENCBP = Emergency National Capacity Building ProgrammePRSP = Poverty Reduction Strategy PaperPSC = Project Steering CommitteePTMA = Programme triennal minimum actualiséSENAREC = National Capacity Building SecretariatSMEH = Small and Medium-scale Enterprises and HandicraftTAF = Technical Assistance FundTPAT-UH = Ministry of Public Works, Territorial Development, Town Planning and
HousingUA = Unit of AccountUNCTAD = United Nations Conference on Trade and DevelopmentUNDP = United Nations Development ProgrammeUNIDO = United Nations Industrial Development OrganizationUS = United States
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DRC: MATRIX OF THE MULTISECTORAL INSTITUTIONAL SUPPORT PROJECT
Country : DEMOCRATIC REPUBLIC OF CONGO (DRC)Project Name : Multisectoral Institutional Support ProjectEffectiveness Date : September 2002Design Team : Mrs. A. DIARRA-THIOUNE, Economist, OCCC, and Mr. O. SOMALI, Consultant
HIERARCHY OF OBJECTIVES(HO)
OBJECTIVELY VERIFIABLE INDICATORS(OVI)
MEANS OF VERIFICATION(MOV)
ASSUMPTIONS/RISKS
OVERALL OBJECTIVE OR GOAL
1 To strengthen development management capacitiesso as to contribute to poverty reduction
1.1 Macro-economic framework stabilized and the Congoleseeconomy resumes growth in 2003;
1.2 Enhanced coherence between macro-economic and sectoralpolicies;
1.3 Poverty reduction plan of action prepared and implemented in2004;
1.4 National poverty monitoring system operational in 2004.
1.1. National accounts, economic report,and BCC statistics bulletins
1.2. Half-yearly review report on theGovernment’s economic programmeby the Bretton Woods Institutions
1.3. Report on PRSP monitoring
1.1 Maintenance of the country’s socio-political stability, and improvement of theeconomic situation.
1.2 Risks relating to mobility of the trainedmanagerial staff.
SPECIFIC OBJECTIVES OF THEPROJECT
1. To strengthen macro-economic management andpublic investment programming capacities;
2. To strengthen PMURIS sectoral support structures
3 To promote the private sector.
1.1 Better implementation and monitoring of macro-economicpolicies;
1.2 Quality and time for producing macro-economic and sectoralpolicies and strategies documents improved;
1.3 Poverty profile updated in 2004;1.4 Budgeting-programming procedures for public investments
established by end of 2003;1.5 Training of managerial staff of the Ministry of the Plan and
technical Ministries through thematic seminars
2.1 Structures involved in the rehabilitation of infrastructurestrengthened;
2.2 Implementation of the PMURIS project within the specified timelimits and sustainability of its impacts.
3.1. Key structures involved in the supervision and promotion ofprivate investments (Economy, Trade and Industry) arestrengthened;
3.2. The National Private Investment Promotion Agency (ANAPI) isstrengthened, and it has developed its activities for national andforeign private investors in 2004;
3.3. Business regulatory framework has more incentives as from
1.1 Public investments programming documents1.2 Project status report1.3 PIP implementation reports1.4 BCECO reports
2.1. Project status reports
3.1 Final PRSP
1.1. Government commitment to the capacitybuilding programme;
2.1 Close collaboration between the Ministries;2.2 Donor support to the programme;3.1 Motivation of civil servants and adaptation
of managerial staff to the use of modernmanagement tools;
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HIERARCHY OF OBJECTIVES(HO)
OBJECTIVELY VERIFIABLE INDICATORS(OVI)
MEANS OF VERIFICATION(MOV)
ASSUMPTIONS/RISKS
2003.
PROJECT OUTPUTS
1 Macro-economic management is satisfactory,and there is coherence between macro-economic and sectoral policies;
2 The programming of investments is satisfactory,as well as the monitoring of theirimplementation; and there is effectivecoordination between the MPR and the DEPs ofthe technical Ministries;
3 The PMURIS project support structures arestrengthened;
4 The private sector is developed.
1.1 The quality of economic analysis and summary documents isimproved as from 2003;
1.2 Managerial staff responsible for macro-economic managementtrained;
1.3 All the Departments involved in the implementation of macro-economic and sectoral policies equipped and strengthened withtechnical assistance as from 2004;
1.4 The national poverty survey conducted in 2003.
2.1. The PIP implementation rate and quality are improved as from2003;
2.2. Managerial staff trained in the programming and monitoring ofthe implementation of public investments;
2.3. Sectoral DEPs equipped (computers, furniture) and connected tothe provinces and central planning services (Internet);
2.4. Absorptive capacity of external funding increased3.1. PMURIS project is implemented normally;3.2. Resources are mobilized for the rehabilitation of infrastructure;4.1. Increase in private investment rate from 4% in 2000 to 10% in
2005;4.2. Increase in the number of private enterprises operating in DRC;4.3. Investment Code established and operational in 2004;
1.1 Annual project audit reports1.2 Statistics of the Ministry of the Plan, and
quarterly project implementation reports1.3 MEFB statistics and quarterly
implementation reports by the PIU;3.1. Statistics of the MEFB, MPR, and sectoral
ministries, and activity reports of COSEP,BCECO, OGEDEP and BCC; Final PRSP.
2.1. Activity reports by the technical assistantsand the Project Coordination Unit;
2.2. PIP implementation reports
3.2. Publications and reports of the BCECOSteering Committee;
3.3. Official Gazette, Government and UNDPreport;
4.1. BCC statistics4.2. ANAPI annual reports4.3. FEC reports
KEY ACTIVITIES
1 Transfer of skills by the technical assistants tothe nationals, and transfer of technology
2 Training of 208 managerial staff responsible formacro-economic management;
3 Purchase of computer equipment (155 workstations) and office equipment.
4 Pilot poverty survey conducted;
5 An inventory of women’s enterprises prepared,and 106 female contractors trained.
1.1 The services of two international experts, and of 4 nationalexperts made available to the structures.
2.1 Capacities of 709 national managerial staff strengthened in theprogramming of investments, project monitoring andinformation technology;
2.2 Field trips and short training courses for 18 managerial staffabroad;
FINANCING
TAF UA 3.23 millionGOVERNMENT UA 0.17 million
1.1 Contracts for technical assistance andnational experts
2.1 Training course report and projectimplementation reports
2.2 Contracts for supplies, office equipment,rolling stock and computer equipmentsigned.
1.1 Efficient technical assistants.1.2 Efficient control of implementation of
technical assistance contracts.
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EXECUTIVE SUMMARY
1. Donor : Democratic Republic of Congo
2. Executing Agency : Bureau Central de Coordination
(BCECO)
3. Sector : Multisectoral
4. Project Background
The DRC is facing a long economic recession caused by socio-political instabilityagainst a background of military conflict, degradation and looting of socio-economicinfrastructure as well as the lack of coherent economic and social policies. This long recessionhas led to significant deterioration of institutional capacities and human resources. However, thesuccess of the reconstruction, stabilization and economic recovery programme depends largelyon the rebuilding and strengthening of the country’s institutional capacities. It is thereforeurgent to support the Government in its efforts, in view of the immense needs which have beenworsened by the long isolation the country has experienced. The Bank and other developmentpartners have, since 2001, been assisting in building capacities that are indispensable for themanagement of development. Since the approval of a mechanism for clearing DRC’s arrears byits Board of Directors in June 2002, the Bank intends to resume, in a prudent manner, itslending operations to DRC so as to support the national reconstruction efforts. It has identifiedthis multisectoral institutional support project, which seeks to build capacities in the preparationand implementation of reconstruction and rehabilitation strategies and programmes at themacro-economic level and in the main economic sectors.
5. Purpose of the Grant
The TAF contribution, amounting to UA 3.23 million, will be used in financing theentire foreign exchange costs, which amount to UA 1.95 million, and 88.2% of the localcurrency costs, amounting to UA 1.45 million, or 95% of the total project cost, exclusive ofcustoms duties and taxes.
6. Specific Purpose and Objectives of the Project
The purpose of the project is to contribute to the building of development managementcapacities with a view to poverty reduction. The specific objectives of the project are: (i) tobuild capacities in the formulation, implementation and monitoring of macro-economic andsectoral policies; (ii) to build capacities in the elaboration and monitoring of theimplementation of the public investment programme, as well as in the implementation of theEmergency Multisectoral Rehabilitation and Reconstruction Programme (EMRRP); and (iii)to improve the institutional and regulatory environment for private sector development.
7. Project Description
The components of the project are as follows:
i) Support for macro-economic management and programming of publicinvestments;
ii) Support to private sector promotion structures;
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iii) Strengthening of support structures for the Emergency Multisectoral Socio-economic Infrastructure Rehabilitation and Reconstruction Project (PMURIS); and
iv) Project management.
8. Project Cost
The project cost, exclusive of tax and customs duties, is estimated at UA 3.4 million,comprising UA 2.01 million in foreign exchange (59.1%) and UA 1.39 million (40.9%) inlocal currency.
9. Sources of Finance
The project will be financed by the TAF for UA 3.23 million, or 95% of the totalproject cost, exclusive of tax and customs duties. The rest of the financing will be provided bythe Congolese Government, which will contribute 5% of the total project cost.
10. Project Implementation
Project activities will cover a period of 24 months, following effectiveness of the grantscheduled for March 2003. The administrative and financial executing agency of the projectwill be the Central Coordination Office (BCECO). The technical implementation of thecomponents will be carried out by the technical units, under the coordination of the Secretary-General of the Plan who will exercise technical supervisory authority over the project.
11. Conclusions and Recommendations
11.1 Conclusions
For several years, the DRC has faced a severe economic and social crisis, worsened bythe resumption of war in August 1998. Like the economic situation, the country’s institutionalcapacities have eroded with time, mainly because of the disorganized administrative services,demotivation of State employees, old and obsolete working tools, and lack of continuoustraining. The Government is making efforts to normalize relations with the internationalcommunity and put the economy back on the path to sustainable growth so as to reduce povertyin DRC. This strategy is supported by the EMRRP, to which the Bank intends to contribute incoordination with other development partners, including the World Bank. Such is the contextof this multisectoral institutional support project which seeks to strengthen capacities informulating and implementing medium and long-term strategies at the macro-economic leveland in priority sectors.
11.2 Recommendation
It is recommended that a grant not exceeding UA 3.23 million should be extended to theDRC Government to finance the project.
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I. PROJECT ORIGIN AND BACKGROUND
1.1 The Democratic Republic of Congo (DRC) has, for several years, been experiencing along economic recession caused by socio-political instability against a background of militaryconflict, degradation and looting of socio-economic infrastructure, as well as the lack ofcoherent economic and social policies. This situation has led to steady deterioration ofdevelopment management capacities at the macro-economic and sectoral levels. The essentialfunctions of analyzing development problems and their solutions were not fulfilled, andinstitutions could not carry out their public service missions.
1.2 At the institutional level, the recession of the 1990s led to significant deterioration of thequality of public services and human resource capacity. Institutions that are responsible forformulating macro-economic and sectoral policies, as well as implementing, monitoring andevaluating them do not have coherent reference strategic frameworks and appropriatemanagement instruments. In particular, for four consecutive years as from 1997, the DRC couldnot prepare, approve and implement a budget in accordance with the usual procedures. Sectoralplanning structures do not have the human and material resources required for carrying out thefunctions assigned to them. In view of the urgency to restore the required capacities, theGovernment has defined priorities taking into account the guidelines contained in the EMRRP.
1.3 In 1999, the Government, with the assistance of UNDP, designed the EmergencyNational Capacity Building Programme (ENCBP). The UNDP, the Bank and the AfricanCapacity Building Foundation (FARC) provide support for the implementation of theprogramme. The Bank’s support comes through an institutional support project of UA 1.97million approved in June 2001, which became effective in October 2001. The support mainlyseeks to facilitate the emergence of minimum institutional capacities in managing andmonitoring the Government’s economic programme, as well as managing the external debt andpreparing the Poverty Reduction Strategy Paper (PRSP). Implementation of the project hasenabled national human resources to gradually become familiar again with the Bank’s rules ofprocedure after ten years of suspension of Bank operations in the country. The experienceacquired will be used in future Bank projects in the DRC. The project should be completed inJanuary 2004, but it can already be noted, at the current stage of its implementation, that thepilot nature of the project has been well understood by the Government, which has endeavouredto fulfil the effectiveness conditions within a short time.
1.4 Furthermore, during the critical stabilization phase in RDC, marked by theimplementation of the Enhanced Interim Programme (EIP) between June 2001 and March 2002,the institutional support project served as the medium for dialogue on policies, as evident in theassistance for strengthening the coordination of macro-economic and sectoral policies, debtmanagement and PRSP preparation process. These needs are still genuine, and pursuance of thisproject will contribute to the establishment of reference frameworks, including the PRSP, so asto build national capacities development planning and coordination of assistance from theinternational community. The IMF and the World Bank, two strategic partners of the Bank, arecontinuing to provide support to the DRC to consolidate their outputs in this area.
1.5 To eliminate distortions and restore macro-economic balance, the Governmentimplemented, with the support of the Bretton Woods Institutions, the EIP the results of whichwere generally satisfactory. In support of its medium term strategy for the 2002-2005 perioddescribed in the Interim Poverty Reduction Strategy Paper (IPRSP), the Government isimplementing (i) an Economic Programme supported by the IMF through the Poverty
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Reduction and Growth Facility (PRGF) and the World Bank through the Emergency EconomicRehabilitation and Recovery Credit (EERRC); and (ii) a Multisectoral Rehabilitation andReconstruction Programme (EMRRP) supported by the World Bank and which has acomponent on capacity building that the Bank also intends to support through this project.
1.6 The Bank has initiated this project in order to consolidate the impact of its ongoingassistance, as well as extend it to reinforcement of coherence between macro-economic andsectoral policies and support to operational programmes underlying the policies. The projectcomes after sustained dialogue with donors and in coordination with the Bretton WoodsInstitutions, which ended on 26 June 2002 with the approval of the mechanism for clearingDRC’s arrears by the Boards of Directors of the Bank, which put an end to a long decade ofsanctions against the country, and allowed for resumption of Bank operations. During adialogue mission to the DRC in March 2002, the Bank identified this multisectoral institutionalsupport project, which seeks to strengthen capacities in the formulation and implementation ofmedium and long-term strategies and programmes, at the macroeconomic level and in the mainsectors (agriculture and rural development, environment, energy, water, education, health, andsocial welfare). Following the Government’s request, the Bank undertook an appraisal missionto the DRC from 17 July to 3 August 2002, after which this appraisal report was prepared.
II THE SECTOR
2.1 Public Administration
2.1.1 The critical economic situation and degradation of socio-economic infrastructure inthe DRC indicate the amount of capacity building required in almost all the institutionsresponsible for managing the different sectors of the national economy. All the publicinstitutions function with very limited qualified staff. Consequently, the administration’scapacity to provide high quality public services has been greatly eroded, in view of the braindrain to the private sector which pays higher salaries. The administration has a staff of about600,000 civil servants, whose salaries are very low and are paid irregularly. The staff is inflatedby a high number of civil servants who are supposed to have gone on retirement. A completereform of the public service, which had been announced a long time ago and for which somestudies have been initiated with the support of the UNDP and the Belgian cooperation, has notyet been fully implemented.
2.1.2 Budgetary problems, the break-off of economic and financial cooperation withdevelopment partners, and the almost total isolation of the country for more than one decademade it impossible for most managerial staff to attend refresher courses and increase theirexperience. The public administration is therefore not able to fulfil its public service missions,including promotion of the private sector. Civil servants are demotivated, their skills are eroded,and they work in premises that are quite old and are often without the most basic workingequipment.
2.1.3 In fact, the office automation equipment is obsolete, or even non-existent, while the useof the computer is still undeveloped. Data processing for macro-economic management,budgeting or programming of financial operations of the State is still done using outdated andunreliable manual procedures. The budgetary procedures suffer from the lack of full or timelydata, as well as poor appraisal of the efficiency of public finance. These weaknesses have greatlyundermined the productivity of the administration and its technical capacities in managing andformulating economic and social policies and programmes.
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2.2 Private Sector Development
2.2.1 In 1997, the Government reaffirmed the country’s liberal option, and considered theprivate sector as the main pillar for sustained growth of the Congolese economy. However,the atmosphere of war and institutional stability for more than one decade has created anenvironment that is not conducive to private investment which dropped from 17.6% of GDPin 1997 to 5% of GDP in 2001. A diagnosis shows that the sector has suffered for a long timefrom the lack of a reliable development policy and strategies based on incentive measures andrelevant and coherent promotion activities. Although showing some dynamism, given thecourage and fertile imagination of thousands of contractors, of whom a large proportion arewomen, the private sector has not been able to fully play its role because of many constraints,in particular: (i) the bankruptcy of the banking system which led to financialdisintermediation; (ii) the lack of an adequate regulatory and legal framework; (iii) thedeterioration of basic economic and social infrastructure; and (iv) the low quality of services,as well as the high costs of factors of production, in particular transport, water and electricity.These factors, coupled with the decline of the economy and the diminishing purchasing powerof the population, have led to the development of the informal sector.
2.2.2 To remedy these constraints, the Government has, since June 2001 under the EIP andwith the support of the Bretton Woods Institutions, been implementing significant structuralreforms, which have gradually contributed to improving the business environment. Thesereforms concern the liberalization of the foreign exchange system and prices, the reform ofthe banking system, the adoption of a new Investment Code, a Mining Code and the ongoingrevision of the Forestry Code, as well as the Labour Code. The objective is to createconditions that would boost the private sector, and revitalize the production of goods andservices, which crumbled during the last decade. As part of the reform of public enterprises, aregulatory framework will also be established for the telecommunications sector, commercialcourts established, and the Commercial Code revised.
2.2.3 Furthermore, the Government in June 2002 established a consultation frameworkbetween the private sector, the civil society and the State. Lastly, the National InvestmentPromotion Agency (ANAPI) was set up in June 2002 to promote private investment andCongolese exports as part of the globalization of the economy. Like the ministries concernedwith the economy, the structures responsible for private sector promotion suffer frominstitutional weaknesses, including the lack of a strategic framework for private sectordevelopment and under-equipment.
2.3 Operations by Major Donors
2.3.1 The ENCBP, prepared in 1999, has so far been the major framework for operations bydonors. The UNDP (US$ 3.8 million), the Bank (US$ 2.3 million) and ACBF (US$ 1.7million) have supported several components of this programme. It is coordinated by theNational Capacity Building Secretariat (SENAREC) attached to the Ministry of the Plan andReconstruction. Belgium has also contributed US$ 750,000 to the implementation of theENCBP, through the strengthening of public finance, support to the functioning of the Studiesand Planning Departments of some ministries, as well as the study on the reform of the PublicService. Furthermore, the Central Coordination Office (BCECO) was set up by theGovernment in September 2001 with the main responsibility of implementing projects thatreceive external assistance. In particular, the BCECO manages the emergency fund (US$ 5
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million) and the emergency rehabilitation credit of the World Bank, which includes aninstitutional support component of US$ 12 million.
2.3.2 The IMF, in addition to its financial support through the FRPC, provides technicalassistance of 4 international experts to revenue offices, public accounting and the CentralBank of Congo (BCC). The European Union, under its Indicative National Programme (INP)with the DRC for the 2002-2005 period, allocates part of its financing to the strengthening ofeconomic and financial management capacities. CIDA cofinances, with the Bank, thecomputerization of the BCC.
III THE SUB-SECTOR
3.1 Ministry of the Plan and Reconstruction (MPR)
3.1.1 The MPR is responsible for coordinating and implementing the Government’seconomic and social development policy. It is mainly responsible for: (i) defining theorganization, methods and procedures of planning; (ii) directing the Government’s investmentpolicy, preparing programmes, and monitoring the implementation of public investmentprojects; (iii) assessing the economic impacts of development projects; (iv) monitoring theimplementation and updating the country’s development plan; (v) preparing anddisseminating economic briefing notes and socio-economic performance charts; and (vi)managing international cooperation.
3.1.2 The MPR structures concerned with the project are the Programming and BudgetingDepartment (DPB), the Control and Monitoring Department (DCS), the InfrastructureDepartment (DI), the EMRRP Coordination Unit (PCU), the NEPAD Monitoring Committee(CSNEP) and the PRSP (ST-PRS) Monitoring Committee. These structures are groupedtogether in the General Secretariat of the Plan which has a staff of 470 employees includingabout 128 women. University-level officers account for 64% of the staff. Two of the largestructures in this Ministry are the Macro-economic Studies Department (DEME) and theNational Statistics Institute (INS), which are already receiving support from the UNDP tostrengthen procedures for preparing national accounts, and assist in establishing a forecast andmacro-economic framework. However, like most Government services, the GeneralSecretariat of the Plan is facing enormous problems in carrying out its duties. It lacksadministrative premises, furniture, and modern working tools (computers and photocopiers).
3.1.3 The Programming and Budgeting Department (DPB) is responsible for preparing,monitoring and implementing the investment budget. The DPB also has a computer unit,which centralizes all the data on the Public Investment Programme (PIP) and preparesstatistics for project monitoring. This unit badly needs computer equipment, since all the 7computer experts in the service share two low-capacity computers. Furthermore, weaknesses inproject identification and preparation, the lack of satisfactory feasibility studies, the poorselection of projects and their financing, and non-compliance with the order of priorities of thepublic investment programme have paralyzed the programming and implementation of publicinvestments, which accounted for less than 1.9% of GDP in 2001. Furthermore, the DPB doesnot have the capacities required for budgeting the PIP generally and for assisting the otherministries in preparing sectoral projects. This situation stems from a combination of manyinstitutional and operational problems, including the lack of training for most of the seniorstaff in the project cycle. These weaknesses have also seriously undermined the technicalcapacity and negotiating power of the Congolese administration.
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3.1.4 Another important constraint faced by the central planning services and sectoraldepartments is the lack of resources to translate the ideas of the EMRRP projects into viableprojects. It is necessary to establish a Studies Fund in the Pre-investment Division of the DPB tobuild up a reserve for well-prepared projects that can be submitted to the Bank and other partnersfor financing.
3.1.5 The Control and Monitoring Department (DCS) is responsible for regularly monitoringand controlling the progress of development projects and periodically assessing the trend ofperformance indicators previously defined using adequate tools. This Department plays animportant role in the implementation of public investments. The DCS works in closecollaboration with the sectoral departments of the MPR, DPB and the Studies and PlanningDepartments of the other ministries in the preparation and constant updating of projectinformation sheets, the supervision of the physical and financial implementation, and analysis ofthe performance indicators of ongoing projects. It has a staff of 27 employees, including 23managerial staff who have only two computers and have not undergone any training for severalyears. Furthermore, the furniture of the DCS is old, inadequate and non-functional.
3.1.6 The Infrastructure Department (DI) is responsible for contributing, in conjunctionwith the technical ministries, to the formulation and implementation of development strategiesfor socio-economic infrastructure. To carry out these responsibilities, the DI has a staff of 21employees, including 16 managerial staff. It plays an important role in the currentrehabilitation and reconstruction phase. Like other MPR structures, this department suffersfrom under-equipment and inadequate training of human resources.
3.1.7 The EMRRP Coordination Unit (PCU) is mainly responsible for providing secretarialservices to the Steering Committee, which is the monitoring and orientation organ of theprogramme. In particular, the PCU ensures compliance with eligibility criteria of projects for theprogramme, sees to their monitoring and evaluation and produces periodic reports on theimplementation status of the programme. The PCU is already receiving technical assistance fromFrance (an expert) and logistic support (one vehicle, computers) placed at its disposal by theWorld Bank. However, there are still some needs that have not yet been covered as regardstraining and computer equipment for the 7 national managerial staff seconded to the PCU.Furthermore, given its position in the sub-region and the major challenge of the development ofits infrastructure at the sub-continental level, the DRC intends to play an active role in regionalcooperation. In this light, the country is greatly involved in activities relating to the NewPartnership for Africa’s Development (NEPAD), which is a preeminent instrument forintegrating its economy with those of the 9 neighbouring countries. A NEPAD MonitoringCommittee (CSNEP) was set up in April 2002. In June 2002, it organized a workshop todisseminate information on the African initiative, and undertook to create a reserve of integratingprojects which the DRC intends to promote as part of its involvement in NEPAD. The CSNEPrequires technical assistance to conduct dialogue on policies under NEPAD, as well asappropriate instruments to sustain the dialogue.
3.1.8 PRSP Monitoring Committee: The Technical Monitoring Committee of the PovertyReduction Strategy (ST-PRS) carries out activities in consultation with the differentdevelopment partners to mobilize the resources required for the various activities relating tothe finalization of the PRSP, including the National Poverty Survey (ENAP) which is anessential stage in the preparation of the final PRSP. As regards human resource development,poverty indicators in the DRC are a cause for concern. According to Government sources,
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more than 80% of the population live on less than one dollar per day, life expectancy is 51years, and about 60% of adults are illiterate. In order to meet the challenges of sustainablepro-poor development, the Government has adopted a medium-term strategy in its InterimPRSP. The constraints on the preparation of the final PRSP include the lack of reliable andrelevant statistics on the standard of living and poverty. This constraint has made itimpossible to prepare a poverty profile that reflects the current status of poverty, its mainfeatures and causes. The high cost of such a survey and its complexity haved forced the DRCto request the support of the international community for its implementation.
3.2 Ministry of the Economy, Finance and the Budget (MEFB)
3.2.1 The MEFB is responsible for formulating, implementing and monitoring theGovernment’s economic and financial policy. The ministry has three General Secretariats,namely: National Economy Administration, Finance Administration, and BudgetAdministration. The General Secretariat of Finance is responsible for managing the financialresources of the Congolese State and ensuring their mobilization and utilization in accordancewith the financial and budgetary laws as well as with the general regulations governing publicaccounting. Its responsibilities mainly concern (i) the monitoring and processing of economicand financial information, involving knowledge and monitoring of the main economic andfinancial aggregates; (ii) the preparation of short-term estimates using macro-economicmodels, and the production and dissemination of documents relating to the economicsituation; (iii) the programming and financial management of the State treasury involving themedium-term programming of loans and other resources; (iv) the preparation andimplementation of short-term treasury plans; (v) supervision and budgetary disbursement inconjunction with the Central Bank of Congo; and (vi) control of the regularity of operationscarried out by revenue accounting offices, as well as expenditure and management of publicdebt servicing. The General Secretariat of Finance has a staff of 1,648 employees, including647 university-level officers.
3.2.2 The MEFB structures which will benefit from this project are the TreasuryDepartment and the Studies and Planning Department. The project will also support theCentral Bank of Congo (BCC) and the Public Debt Management Authority (OGEDEP),which are public structures that enjoy financial autonomy and are placed under thesupervisory authority of the MEFB. This project will support its structures so as toconsolidate and extend the ongoing assistance on debt management and computerization ofthe Studies Department in the BCC.
3.2.3 The Department of Studies and Planning of the MEFB (DEPFI) is a transformation ofthe former Studies Department following the Government’s decision in September 2001 tostandardize and harmonize all the studies and planning structures. In addition to theresponsibilities of the sectoral DEPs (see paragraph 3.3.1), the DEPFI acts as consulting firmfor the MEFB. To that end, it is responsible for: (i) conducting studies on public finance andmonitoring the financial legislation; (ii) analyzing the trend of macro-economic indicators andmaking recommendations on stabilization measures that would promote sustainabledevelopment; and (iii) participating in the negotiation of financial agreements and monitoringfiles relating to international economic and financial cooperation. To accomplish its missions,the DEPFI has a staff of 80 employees, including 20 university-level officers.
3.2.4 As regards departments in the MEFB concerned with the project, the officeautomation equipment is obsolete, or even non-existent, while the use of computers is still
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limited. Extensive processing such as the calculation of the salaries of civil servants, and thebudgeting or programming of financial operations of the State, is in most cases still carriedout using archaic and unreliable manual procedures. Budgetary procedures suffer from thelack of full or timely data, as well as poor appraisal of the efficiency of public finance. Asregards human resources, the staff do not undergo continuous training, and work under poorconditions. Lastly, the inadequacy, or even lack of modern means of communication makes itdifficult to maintain contact between the provincial revenue collection structures and theheadquarters.
3.3 Studies and Planning Departments (DEP) in the Sectoral Ministries
3.3.1 The planning system in the DRC is organized in each sectoral ministry into a Studiesand Planning Department (DEP) under the authority of the General Secretariat, and is headedby a Coordinator with the rank of Director, assisted by a Deputy Coordinator. Each DEP issubdivided into three units: (i) Studies and Sectoral Analysis; (ii) Strategic Planning andStatistics; and (iii) Analysis and Evaluation. As an interface between the MPR and thetechnical ministries, the DEPs are mainly responsible for: (i) creating a statistics databank; (ii)preparing sectoral and provincial studies; (iii) defining policies, objectives and macro-economic sectoral and provincial strategies; (iv) programming and budgeting sectoral andprovincial projects; and (v) monitoring and assessing sectoral policies and programmes.
3.3.2 By establishing 45 DEPs in ministries and State bodies, the Government wanted toprovide the country with institutions that can play a decisive technical role in formulatingsectoral policies and ensuring their coherence with the programming of public investments, aswell as monitoring and evaluating them. The interface of DEP activities as well as thecoherence of its sectoral strategies with the overall strategy is normally ensured through theCentral Departments of the Plan involved in the formulation and implementation of macro-economic policies, as well as the programming and monitoring of PIP implementation(DEME, DPB, DCS). The Government is making efforts to introduce more coherence insectoral investment functions, especially with the establishment in September 2001 of theStudies and Planning Structures Coordination Unit (COSEP) based in the Plan.
3.3.3 The first phase in rehabilitating DEP functions will consist in redefining theprocedures for PIP preparation, in particular the respective roles of the sectoral ministries andstructures responsible for economic management (MPR, MEFB, BCC, OGEDEP), and thedifferent phases of the PIP preparation, as well as its macro-economic framework. However,to date, the DEPs have not been able to fully play their role because of constraints relatingmainly to the old age or lack of logistic means as well as the lack or inadequacy of trainingprogrammes for experts responsible for managing the structures. In view of the urgency of therequirements and the need to create conditions for optimal implementation of the EMRRP, theGovernment selected a number of DEPs which should be strengthened in priority (agriculture,infrastructure and social sectors). This project will support the DEPs of these sectors.
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3.4 Support Structures for the Emergency Multisectoral Socio-economicInfrastructure Rehabilitation Project (PMURIS)
3.4.1 With respect to resumption of its operations in the DRC, the Bank intends to financethe PMURIS, which was appraised at the same time as the present project. The specificobjectives of the project are the rehabilitation of socio-economic infrastructure and therestoration of human and institutional capacities. In order to increase and strengthen thecapacities of the structures which will be responsible for implementing and managing thesocio-economic infrastructure to be rehabilitated under the project, the following institutionswill receive support.
3.4.2 The Technical Control Office (BTC): set up in 1987 and placed under the supervisoryauthority of the Ministry responsible for public works (TPAT-UH). The BTC is responsiblefor conducting the technical and financial control of the implementation of publicinvestments. To fulfil these responsibilities, the BTC has a staff of 40 employees including 32managerial staff. From 1991 to 1999, the institution faced serious difficulties due mainly tothe freeze on Treasury subsidies, and to the fact that control is not systematic. However,thanks to efforts made since 1999 by the TPAT-UH, the BTC has been revitalized so as toboost public investments. Within this context, the BCT needs to be strengthened by trainingits supervisory staff and improving its logistic capacities.
3.4.3 The Urban Roads and Drainage Authority (OVD) was set up under the supervisoryauthority of the Ministry of TPAT-UH; it is mainly responsible for carrying out maintenanceand rehabilitation works on urban roads and drainage structures in major built-up areas in thecountry. The OVD is also responsible for erosion control works. The urban road network ofthe DRC covers 874 km of paved roads, including 548 km in Kinshasa. With about 70 heavymachines, the OVD is currently engaged only in the rehabilitation of the primary urban roadsof Kinshasa estimated at 174 km. To fulfil these responsibilities, the OVD needs to bestrengthened, especially by procuring computer equipment and training its managerial staff.
3.4.4 The Road Surveyors Training Centre (CFAV) is a ministerial school set up in 1970with the support the German Cooperation. The Centre trains road surveyors and technicalsenior staff of the Ministry of TPAT-UH. It currently has 170 students, including 16 femalestudents who account for 9% of the student population. Since 1972, the CFAV has trained358 engineers and 916 technicians. The Centre is currently going through a difficult perioddue mainly to the lack of funds for the procurement of teaching aids and the replacement offurniture.
3.4.5 The National Sanitation Programme (PNA) assists structures responsible for providingspecialized services in urban sanitation. Placed under the supervisory authority of theMinistry responsible for the environment, the PNA is responsible for ensuring theimprovement of the quality of water harnessed by the “Régie des Eaux du Congo”(RGIDESO) and distributed to the public. The PNA is also responsible for protecting theenvironment of the population along the River N’Djili against pollution from solid wastes.The PNA organizes the collection of household refuse, as well as erosive sand and otherdebris used to control flooding in other quarters in Kinshasa. The PNA carries out itsactivities through NGOs and using the “labour intensive” strategy (HIMO), therebycontributing to poverty reduction and improving the hygiene and sanitation conditions of theurban population. The major constraints on the PNA are the inadequate premises, the lack of
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training of the NGOs which it supervises, and the under-equipment of the programme asregards office automation and laboratory equipment.
3.5 Support Structures for Private Sector Development
Public Structures
3.5.1 The project will provide assistance to Government structures concerned with privatesector development, namely: the Department of Industry, the Economic Studies and IndustrialPlanning Unit (CEPI), the Congolese Private Sector Support Programme (PASP) and theFemale Contractors Development Unit (CDEF) which are attached to the Ministry ofIndustry, Trade and SMEs (MICP) as well as ANAPI.
3.5.2 The Department of Industry (DIN) has a staff of 70 managers and is responsible forformulating and implementing the industrial policy and supervising the activities of industrialenterprises operating in the DRC. The Economic Studies and Industrial Planning Unit (CEPI)has 35 experts and assists the ministry in specific technical tasks relating to industrial sectorpromotion activities. The Congolese Private Sector Support Programme (PASP) is a newinstrument of the ministry to initiate and manage activities aimed at promoting, consolidatingand mobilizing the Congolese private sector so as to increase the contributive capacity of thesector to national production. In order to supervise and promote the development ofenterprises belonging to women, the Ministry also set up the Female ContractorsDevelopment Unit (CDEF), which is responsible for assisting professional organizations andNGOs, which operate in the sector. All these MICP structures are marked by their weakcapacities. In fact, these structures lack the most basic material resources (furniture, computerequipment) and have untrained staff who have not had opportunities to attend refreshercourses for more than one decade. The project will focus its support on strengtheningassistance and advisory services to enterprises through training, the creation of databases onthe private sector, and the procurement of logistics.
3.5.3 The National Investment Promotion Agency (ANAPI), was established in February2002 by a law instituting the new Investment Code. As the single window for investments inthe DRC, ANAPI is responsible for boosting productive investments by promoting thecreation, extension or modernization of industrial or other enterprises in the country. To thatend, it is mainly responsible for: (i) disseminating of information on tax incentives forinvestment; (ii) seeing to the elimination of administrative bottlenecks and harassments,which slow down private investment; (iii) reviewing requests for approval of projects eligiblefor the benefits of the Investment Code; (iv) promoting national and foreign privateinvestment; and (v) creating a databank for investment opportunities in the DRC. The decreeto define the organization and functioning of the agency was published in June 2002, and theGovernment allocated a building and assigned seven managerial staff for the start of itsactivities. However, it is necessary to ensure adequate training of its managerial staff in theanalysis of investment projects and negotiation techniques under the public enterprisesprivatization programme, as well as provide appropriate logistic resources. The managementof the agency should also draw on the experience of other promotion structures in Africa toattract foreign private investment into the DRC. Under the promotion policy envisaged, theagency will need modern and suitable tools (translated code, Website, videos, etc.).
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Private Sector Associations and NGOs
3.5.4 The Fédération des Entreprises du Congo (FEC), with its 1500 member enterprises,acts as a chamber of commerce and industry, and operates on the basis of contributions by itsmembers. The FEC conducts dialogue with the Government under the consultation structureestablished in 2001 between the private sector, the State, and the civil society. The Federationhas, as one of its special national organs, a Women Contractors Board (CFE) with nation-wide representation, responsible for designing better policies and appropriate measures to bestpromote and supervise the economic activities of enterprises belonging to member womencontractors. Women’s entrepreneurship is developing significantly in the DRC. The CFE hasabout 500 enterprises belonging to Congolese women. The CFE and other organizations suchas the NGO “Initiatives pour le Développement de l’Entreprenariat Féminin à la base”(IDEF), most often suffer from institutional weakness due to the lack of training of itsmembers. These organizations have sometimes received specific support (UNDP, Israël),which has however remained inadequate in comparison to the expressed needs.
IV. THE PROJECT
4.1 Project Design and Rationale
This project, identified and prepared by the Bank, arises from the need to support theGovernment in modernizing the Congolese administration and strengthening the capacities ofsome ministries and institutions that play a key role in the formulation and implementation ofmacro-economic reforms, overall and sectoral strategies, as well as the implementation of theEMRRP. The project is based on a diagnosis of the needs expressed by the structuresconcerned, discussions with the other development partners, and a review of their respectivecontributions in solving problems relating to institutional capacities in the DRC. The projectrationale also arises from the need for the Bank and other donors to help the country infinalizing its poverty reduction strategy and creating conditions conducive to harmoniousdevelopment of the private sector.
4.2 Project Areas and Beneficiary Structures
4.2.1 The project areas envisaged by the Bank were selected on the basis of their relevanceto the Government’s programme. They take into account the urgent need to strengthencapacities and modernize development management instruments as expressed by someministries and institutions whose action will have a decisive impact on the implementation ofthe poverty reduction strategy. The Project, as defined, meets the Bank’s desire to providetargeted institutional support so as to restore capacities in planning and managing theeconomy. At this critical stage for resumption of development activities, such capacity willnot only help to ensure synergy for resumption of administrative service, the economy, andeconomic cooperation, but also foster efficient implementation of the rehabilitationprogramme and finalization of the PRSP.
4.2.2 The project beneficiaries are: (i) the departments in the Ministries of the Plan andFinance involved in the definition and implementation of macro-economic policies and debtmanagement (DT, DEP), the BCC and OGEDEP; (ii) the departments for programming,planning and monitoring of investments at the central level (DPB, DCS) and the sectoral level(DI, DEP); (iii) the capacity building structures for the rehabilitation, management andmaintenance of socio-economic infrastructure (BTC, OVD, CFAV, PNA) ; (iv) agencies of
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departments of the Ministry of Industry operating in private sector development (ANAPI,DIN, CEPI, PASP, FEC) ; and (v) the ministerial committees monitoring and coordinatingpoverty reduction programmes and strategies (PCU, CSNEP, ST-PRS).
4.3 Strategic Context
4.3.1 The project falls within the strategic context of the Interim PRSP which seeks toenhance growth and sustainable development through good governance at the economic, localand private sector development levels. The Government’s strategy aims at poverty reductionin order to improve the well-being of the population. Within this context, the Bank’soperation is consistent with the major strategic objectives of the EMRRP, particularly thoserelating to efficient macro-economic and sectoral management and the need to foster privatesector development, the potential engine of economic growth. Furthermore, the envisagedproject is fully in line with the structural reforms already initiated under the EMRRP andsupported by the donors, in particular, those relating to the strengthening of the institutionalcapacities of the administration and development of human resources.
4.3.2 The project is fully in line with the Bank’s operating strategy in the DRC, as definedin the Interim CSP for the 2002-2003 period which focuses on the following two areas: (i)support for institutional capacity building, and; (ii) support for the rehabilitation anddevelopment of social and economic infrastructure. As reiterated in paragraph 1.3, the projectis complementary to the capacity building activities in the support project for the nationalcapacity building programme approved in June 2001. Lastly, the project is consistent with theBank’s good governance policy.
4.4 Project Goal and Objectives
The purpose of the project is to sustain capacity building in development managementso as to reduce poverty. The specific objectives of the project are: (i) to strengthen capacitiesin formulating, implementing and monitoring socio-economic and sectoral policies; (ii) tostrengthen capacities in preparing and monitoring the implementation of the publicinvestment programme and in implementing the EMRRP; and (iii) to improve the institutionaland regulatory environment of private sector development.
4.5 Project Description
4.5.1 The project will consist of the following four (4) components:
i) Support for macro-economic management and programming of publicinvestments;
ii) Support to private sector promotion structures;
iii) Strengthening of sectoral PMURIS support structures;
iv) Project management.
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A Description of Project Outputs
4.5.2 The following outputs are expected from the project:
208 officers responsible for macro-economic management trained; Departments responsible for macro-economic and sectoral policies strengthened; PIP implementation rate increased; 158 central managerial staff trained in the programming, appraisal and monitoring
of public investment; 379 managerial staff of sectoral ministries (DEP) trained in the project cycle, the
planning of investments, and specific themes; 154 managerial staff of the economic ministries have received computer training; 188 managerial staff of the sectoral ministries have received computer training; Sectoral planning departments provided with logistic equipment; Economic departments connected to the Internet to ensure better exchange of data
with the provinces and central planning services; Absorptive capacity of external financing increased; Increase in private investment rate from 4% in 2000 to 10% in 2005; 73 managerial staff of ANAPI and MICP trained in private sector development; 106 women contractors and female enterprise workers trained; and 150 managerial staff of sectoral structures for support to PMURIS trained.
B Detailed Description of Project Components and Activities
4.5.3 Component I: Support for Macro-economic Management and Programming ofPublic Investments
Sub-component 1: Support for Macro-economic Management
4.5.3.1 This sub-component comprises: (i) technical assistance to the MPR to coordinate andcontrol the quality of project activities, as well as prepare the training programme; (ii) supportto the Treasury Department and the Studies and Planning Department in the Ministry of theEconomy, Finance and the Budget; (iii) support to the Public Debt Management Authority(OGEDEP) and the Central Bank of Congo (BCC); and (iii) support to the PRSP PreparationTechnical Committee to enable it to initiate the national poverty survey. In the BCC, theStudies Department will receive support from the project to pursue and extend itscomputerization programme. As regards the OGEDEP, its computer equipment will becompleted, as well as the training programme on the SYGADE debt management software.This software, developed by UNCTAD, will be procured by the OGEDEP under the firstBank project. The capacity building of these different structures will be in the form of trainingand supply of sundry equipment, in particular, computer equipment. Thirty-three (33) workstations and sundry equipment and furniture to equip the Treasury and Studies and PlanningDepartments, the OGEDEP and the BCC, including network equipment for the last twoinstitutions. The lists of equipment and training activities are given in Annexes 7 and 8.
4.5.3.2 Technical Assistance: An international technical assistant/public project managementexpert will be recruited; he/she will work with the Secretary-General of the Plan to coordinateand control the quality of projects as well as prepare the training programme, for a period of
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21 months. The technical assistant/project coordinator will be responsible for systematicallyassessing the proper technical implementation of project activities in the different projectcomponents, as well as providing expert and consultancy services to the project. He/she willin particular: provide secretarial services for the Project Steering Committee (PSC) and will,in that capacity (i) prepare the programme and annual work schedule; (ii) convene meetingsand prepare the reports; (iii) centralize and manage the technical documents of the project;and (iv) assess the implementation of the work programme. The detailed terms of reference ofthe project coordinator are given in Annex 4. The technical assistant will be assisted by twoconsultants, recruited locally for a period of 21 months each; one will be a specialist in humanresource development and will, in particular, prepare a training programme for the entireproject, and the other will be a specialist in information technology.
4.5.3.3 Poverty Survey: It is accepted that the concept of poverty covers a multidimensionalreality, which requires a wide range of statistical information, as well as monitoring andevaluation indicators for it to be understood and eradicated. In this light, the Governmentintends to conduct a national poverty survey (ENAP) which will provide the DRC with areference database on which the poverty reduction strategy formulation and assessmentprocess will be based. The ENAP, estimated to cost US$ 6.5 million, will be conducted over aperiod of 18 months in three phases as follows: (i) preparation and pilot survey; (ii) collectionof data; and (iii) processing, analysis and publication of the results. This project will supportthe first phase of ENAP. The main activities of the preparation and pilot survey phase are: (i)preparation of the technical documents of the survey; (ii) recruitment and training of expertsand staff for the survey; (iii) organization and conduct of the pilot survey; (iv) analysis of theresults of the survey and finalization of the questionnaire; and (v) preparations for the majorsurvey.
Sub-component 2: Support for the programming of public investments
Support to the Central Planning Structures
4.5.3.4 The first part of this sub-component concerns the following departments andstructures in the General Secretariat of the Plan: the Programming and Budgeting Department(DPB), the Control and Monitoring Department (DCS), the Infrastructure Department, theCoordination Unit of EMRRP (PCU), the NEPAD Monitoring Committee (CSNEP) and theStudies and Planning Structures Coordination Unit (COSEP). The support to these centralplanning structures comprises technical assistance, training and procurement of officeequipment and furniture.
4.5.3.5 Training: The project comprises computer training activities and thematic seminars, aswell as field trips and participation in short training sessions abroad. The training activitieswill concern: (i) capacity building in the project cycle through seminars on related themes(planning, programming, monitoring-evaluation, feasibility) for managerial staff; (ii)assistance in defining a coherent framework and preparing the overall and sectoral publicinvestment programme in the DPB; (iii) strengthening services through the establishment of acomputer network in the Treasury Department and the BCC as well as training of managerialstaff in office automation applications so as so upgrade their knowledge and performance; and(iv) connecting the supported structures to the Internet to increase their capacity in collecting,processing and exchanging economic and statistical data so as to improve the planning andmonitoring of PIP implementation, as well as the timely production and publication of
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different summary documents and macroeconomic management indicators. The trainingprogramme in this component is given in Annex 8.
4.5.3.6 Consultants: The Project will recruit a high-level international Consultant for a periodof 18 months to strengthen the technical capacities of the Programming and BudgetingDepartment of the Ministry of the Plan and Reconstruction, as well as the planning structureswhich will be supported by the project. The expert should be a macro-economist withknowledge in the appraisal, programming and budgeting of public investments. He/she willcontribute to the establishment of a mechanism for significantly improving coordinationbetween the DPB and the DEPs in the sectoral Ministries. He/she will also be responsible forensuring that project planning and monitoring methods are coherent. The consultant will havethe following essential tasks: (i) assist the Computer Unit of the DPB in installing aninvestment programming software and creating a project database. The managerial staff of theDPB should be initiated into using it; (ii) propose new policies, methods, and procedures ofbudgeting investments; and (iii) participate in the formulation and implementation of trainingprogrammes within his competence. The terms of reference of the Consultant are given inAnnex 3. The international consultant will be assisted by two local consultants, in planningand information technology respectively, who will be recruited for 18 months.
4.5.3.7 Studies Fund: The project will also establish within the Pre-investment Division in theDPB, a studies and technical assistance fund with each study not exceeding three months. Thefund will be used in conducting well-targeted studies to be used in project preparation in prioritysectors, and also in identifying specific support to administrative services involved in therehabilitation and management of socio-economic infrastructure. The composition of themanagement committee of this studies fund chaired by the Secretary-General of the Plan, theannual plan for utilizing these resources, as well as the terms of reference of the studies andconsultants should be submitted to the Bank.
4.5.3.8 Equipment, furniture, supplies and miscellaneous: The list and allocation for eachstructure receiving the computer equipment, office equipment, furniture as well as suppliesand other consumables are given in Annex 7.
Support to Studies and Planning Departments
4.5.3.9 The second part of this sub-component concerns support to DEPs in the followingGeneral Secretariats: agriculture, rural development, energy, environment, education, socialaffairs, the family, health and TPAT-UH. The support aims at strengthening the capacities ofthe ministries of the infrastructure, education and health sectors so as to increase theirefficiency in planning and implementing rehabilitation projects in the EMRRP. The DEPs areresponsible for identifying, implementing activities which help to develop the sectorconcerned, ensuring coherent planning of investment projects, their proper implementationand assessing the socio-economic impact. In this light, the role of DEPs was reinforced byOrder No. CAB/MIN/FP/039/2001 of 5 September 2001. The support to the above-mentionedDEPs comprises training and the procurement of furniture and sundry equipment, especiallycomputer equipment.
4.5.3.10 Training: In this sub-component, the selected DEPs will receive computertraining and participate in thematic seminars as well as short training courses abroad. Thesupport will consist in organizing 19 seminars on different themes, including: (i) capacitybuilding in the project cycle (planning, programming, monitoring-evaluation, feasibility); (ii)
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collection, processing and publication of sectoral statistics; (iii) mechanisms for mobilizingexternal financing; (iv) updating of major indicators of the socio-economic infrastructuresector; (v) the strengthening of services through the training of managerial staff in officeautomation applications so as to upgrade their knowledge and performance; and (vi)connection of the supported structures to the Internet to increase their capacity for collecting,processing and exchanging economic and statistical data to ensure better planning and moreefficient monitoring of the PIP implementation as well as the timely production andpublication of different summary documents and sectoral management indicators.
4.5.3.11 Equipment, furniture, supplies and miscellaneous: The list and allocation foreach structure receiving the computer equipment, office equipment, furniture as well assupplies and other consumables are given in Annex 7. It indicates that this sub-componentwill procure 37 office computers.
4.5.4 Component II: Support to Private Sector Promotion Structures
Sub-component 1: Support to the Department of Industry, CEPI and PASP
4.5.4.1 Private sector development is one of the major strategic components of theGovernment’s economic policy. The main institutional framework for the formulation andimplementation of this policy is the Ministry of Industry, Trade and SMEs. To that end, theDepartment of Industry and the Industrial Studies and Planning Unit are structures in thisMinistry which play an important role in creating an enabling environment for thedevelopment of business in DRC. This sub-component of the project intends to strengthen thestructures, as well as the Private Sector Support Programme (PASP). Computer equipment,furniture and office supplies will be procured. Furthermore, some managerial staff of itsstructures will participate in seminars to be organized by the project as well as in shorttraining courses abroad. The refresher courses for PSP civil servants aims at strengtheningtheir capacity in advisory assistance which will provide to private enterprises.
4.5.4.2 Consultants: Local consultants will also be recruited for short periods (one to threemonths) to assist the Department of Industry in: (i) updating data on the major industrialsectors; (ii) preparing project information sheets in sectors considered to be of priority; and(iii) identifying the industries operating in the DRC. The results of the work will be used laterfor preparing an update of the country’s Industrial Development Master Plan (SDI), whichwill start up in 2004, with UNIDO support.
Sub-component 2: Support for the development of female enterprise
4.5.4.3 This sub-component concerns the supply of logistics (computers, furniture, and sundryequipment) to the Female Enterprise Development Unit (CDEF) to enable it to bettersupervise women’s SMEs. The CDEF will, in particular, create a database of enterprisescontrolled and managed by women so as to better target its advisory assistance to the firms.Furthermore, the project will help to strengthen the capacities of the CDEF, as well as theWomen Contractors Board (CFE) and the NGO IDEF through seminars. The training, to beattended by 45 women, will focus on themes related to the project cycle, businessmanagement methods, mastery of the computer and management of female enterprisepromotion organizations. Details on the training are given in Annex 8.
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Sub-component 3: Support to ANAPI
4.5.4.4 The project’s support seeks to provide ANAPI with furniture, office equipment andcomputer equipment, and to train managerial staff in (i) the use of the computer; (ii) theanalysis, as well as monitoring and evaluation of projects; (iii) business management; and (iv)English language practice. Through this support, ANAPI should be able to create a databaseof business opportunities including its integration into the national computer network. Theproject will also finance field trips in Africa for ANAPI to draw on the experience of otherinvestment promotion agencies in Africa. ANAPI will also participate in international andregional events (fairs, forums, symposiums) on the promotion of private investments. Lastly,this sub-component includes the use of the grant in carrying out the following promotionalactivities: (i) production of brochures, prospectus and banners; (ii) translation and publishingof the Investment Code in English to facilitate broader dissemination to potential investors;(iii) production of CD-Rom and video films on investments; (iv) establishment of adocumentary fund; and (v) creation of a Website.
4.5.5 Component III: Support to PMURIS
4.5.5.1 Support to PMURIS concerns building the capacities of sectoral partners of theproject. In this component, efforts will be made to create a synergy between these twooperations, which will be mutually beneficial to their implementation.
4.5.5.2 Support to the Central Works Office (BCT) seeks to upgrade its public contractscontrol capacities, particularly through the training of its staff mostly made up of university-level officers and through the procurement of computer and office equipment. The capacity ofthe Office des Voiries et Drainages (OVD) will also be strengthened under the project toenable it to more effectively carry out the maintenance and repairs of the main urban roadsand operate with better trained staff in the erosive areas of Kinshasa. The Road SurveyorsTraining Centre (CFAV) will also be provided with specific scientific equipment and teachingaids. The human resources for the maintenance of infrastructure will be reinforced throughsupport to be provided by the project to the training programme for employees specialized inthe maintenance of roads, bridges and structures. This support will consist in financing thetraining courses for employees and the training of trainers.
4.5.5.3 The National Sanitation Programme (PNA) will work closely with NGOs and the civilsociety in maintaining a healthy environment for the well being of the population in the urbanareas, more particularly in the Kinshasa region. To enable this body to better play its role inpublic health, its logistic resources and the capacity of its workers will be reinforced. Thesupport will consist in the procurement of office automation equipment and training ofmanagerial staff locally and abroad. The details of equipment for the structures of this sub-component, as well as details on training, are given in Annexes 7 and 8.
4.5.6 Component IV: Project Management
The administrative and financial management of the project will be ensured by theBCECO. This agency will also manage the PMURIS to be financed by the Bank. Part of thePMURIS resources will be allocated to the strengthening of BCECO staff (procurementexpert) and office automation equipment to facilitate efficient implementation of ADBprojects in the DRC. The technical implementation of the project will be carried out in thecomponents under the coordination of an international expert, working with the Secretary-
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General of the Plan and assisted by two national counterparts. This component also comprisesthe operating costs of the Steering Committee, including travel expenses and other expensesincurred during sessions of these project management and steering structures.
4.6 Project Cost
4.6.1 The cost, exclusive of tax and customs duty, is estimated at UA 3.40 million,comprising UA 1.95 million in foreign exchange (57.5%) and UA 1.45 million (42.5%) inlocal currency. The cost of the components is based on data prepared by the Government andlocal shopping with suppliers and service providers. The cost includes a 5% provision forphysical contingencies on the equipment and a 5% provision for inflation per year on the basecost, denominated in US dollars in view of the relative instability of the Congolese franc. Thecosts are summarized in the two tables below:
Table 4.1Cost Estimates by Components
US$ Thousand UA ThousandComponent
F.E. L.C. Total F.E. L.C. Total
% ofTotal
A. Macroeconomic management andprogramming of investments 1960.5 1258.1 3218.6 1476.8 947.7 2424.5 71.3%
B. Support for private sector promotionstructures 127.1 182.9 309.9 95.7 137.8 233.5 6.9%
C. Support for PMURIS 341.1 97.7 438.8 257.0 73.6 330.5 9.7%
D. Project management 60.0 225.7 285.7 45.2 170.0 215.2 6.3%
Base Cost 2488.7 1764.3 4253.0 1874.7 1329.0 3203.7 94.2%
Physical contingencies (5%) 70.5 8.5 79.0 53.1 6.4 59.5 1.8%
Provisions for inflation (5%) 114.5 67.0 181.5 86.2 50.5 136.7 4.0%
Total Project Cost 2673.7 1839.8 4513.5 2014.1 1385.9 3400.0 100.0%
Table 4.2Cost Estimates by Expenditure Category
US$ Thousand UA ThousandExpenditure Category
F.E. L.C. Total F.E. L.C. Total
% oftotal
A Consultants 386.4 470.1 856.6 291.1 354.1 645.2 19.0%
B Training 397.7 730.6 1128.3 299.6 550.3 849.9 25.0%
C Equipment 1288.7 181.8 1470.5 970.8 137.0 1107.7 32.6%
D Study Fund 199.1 199.1 398.3 150.0 150.0 300.0 8.8%
E Operating Costs 540.9 32.5 573.4 407.5 24.5 431.9 12.7%
F Audit 60.0 0.0 60.0 45.2 0.0 45.2 1.3%
G Govt’s CounterpartContribution 0.0 0.0 225.7 0.0 0.0 170.0 5.0%
Total Project Cost 2673.7 1839.8 4513.5 2014.1 1385.9 3400.0 100.0%
4.7 Sources of Finance and Expenditure Schedule
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4.7.1 The project will be financed jointly by the TAF and the Congolese Government. TheTAF will contribute UA 3.00 million in the form of a grant, or 95% of the total cost. The TAFgrant will cover the entire foreign exchange costs and 88.2% of the local currency expenses,excluding all customs duties and taxes. The financing concerns all the expenditure categories.The Government will bear the balance of the local currency costs, or UA 0.17 million, whichrepresents 5% of the total project cost and 11.8% of the local currency costs. TheGovernment’s counterpart contribution will be in the form of contribution in kind and willconsist of the rental value of the premises provided by the State for the project activities, aswell as salaries to be paid from the State budget to the national counterparts involved in theprovide.
Table 4.3Sources of Finance
Millions UC % ofSources Foreign Exchange Local Currency Total Total
TAF 2.01 1.22 3.23 95%
Government 0.00 0.17 0.17 5%
TOTAL 2.01 1.39 3.40 100.00
4.7.2 TAF contribution to the local currency expenses (35.8% of the total cost) is justified bythe importance of the costs of training, procurement of furniture and goods and serviceswhich are most often available locally. In fact, the project will lay emphasis on capacitybuilding and training to support the economic reforms. The DRC is generally well endowedwith qualified human resources that can meet some of the project requirements, particularly inthe training and macro-economic management sub-components in which the Congolesescholars have developed marked skills that some donors have used in their capacity buildingprojects. The public sector in DRC completely lacks capacities and skills, which justifies therelative importance of the computer equipment sub-component, so as to restore minimumcapacities for the formulation, implementation, monitoring and evaluation of developmentpolicies. However, the cost of the computer equipment accounts for only 21.2% of the totalproject cost.
Table 4.4Expenditure Schedule by Component
USD Thousand UA ThousandComponents
2003 2004 Total 2003 2004 Total
A. Support to macro-economic management &programming of public investments 2640.7 577.9 3218.6 1989.2 435.3 2424.5
B. Support to private sector promotion agencies 438.8 0.0 438.8 330.5 0.0 330.5
C. Support to PMURIS 290.7 148.1 438.8 219.0 111.6 330.5
D. Project Management 60.0 225.7 285.7 45.2 170.0 215.2
Base Cost 3370.2 882.8 4253.0 2538.7 665.0 3203.7
Physical Contingencies (5%) 79.0 0.0 79.0 59.5 0.0 59.5
Provision for Inflation (5%) 160.3 21.2 181.5 120.8 15.9 136.7
Total Project Cost 3370.2 1143.3 4513.5 2538.7 861.2 3400.0
Table 4.5
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Expenditure Schedule by Source of Finance
UA Million % oftotal
Sources 2003 2004 Total Total
TAF 2.46 0.77 3.23 95%
Government 0.08 0.09 0.17 5%
TOTAL 2.54 0.86 3.40 100.0
4.8 Environmental Impact
By nature, the present project has a very limited adverse effect on the environment. Ithas thus been classified in Category III in accordance with Bank criteria. Moreover, with DEPof the Ministry of the Environment strengthened, the project will contribute to enabling itbetter play its role and apply the regulations governing the areas covered by rehabilitation andreconstruction projects. In addition, the support to be given to Office des voiries et drainage(OVD) and the national sanitation programme will enable them better play their role inmaintaining more healthy living conditions with limited hazards. Synchronization of all themacro-economic and sector strategies and policies should further enable the project tostimulate protection efforts and take into account and increase awareness of environmentalaspects in the formulation of development projects.
4.9 Social Impact
Capacity building has a positive impact on poverty reduction. Indeed, the State’smacro-economic management capacities determine the effectiveness and pertinence of theGovernment economic and financial programmes aimed at the substantial and sustainedgrowth benefiting the least privileged segments of the population. The Government’sdevelopment strategy is defined in the interim DSRP supported by the PMURR. Moreover,the aims of the present project include meeting the conditions for conduct of the nationalpoverty survey (ENAP), the essential stage in the finalization of the complete DSRP. In thiscontext, the project should make for improved implementation of the GovernmentProgramme, in order to increase the allocation of State financial resources to social sectors. Itthus contributes to poverty reduction.
V PROJECT IMPLEMENTATION
5.1 Executing Agency
The agency entrusted with the administrative and financial implementation of the projectis Bureau Central de Coordination (BCECO). BCECO (see annex 9) is a public organizationwith administrative and financial autonomy, established by decree 039/2001 of 8 August 2001and placed under the supervision of MEFB. MPR will be responsible for the technicalcoordination of the project. In that regard, an international expert will be recruited and attachedto the Secretary General of MPR to coordinate project activities in close collaboration withBCECO. The duties of the project coordinator will include coordinating training activities aswell as project consultants’ services. The detailed description of this person’s tasks is providedin Annex 4. The project coordinator will assist the project beneficiary agencies with the technicalexecution of the project. The technical execution for each component will be in close
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collaboration with BCECO. The agencies will notably be required to prepare tender documentsas well as training programmes with the assistance of the project coordinator. Prior to anytraining, the relevant training programme will be submitted for the Bank’s approval. Suchtraining programmes will clearly lay down the terms of reference of each of the training sessionsenvisaged, as well as the profiles of the consultants to lead the workshops and seminars that willbe organized locally.
5.2 institutional Arrangements
5.2.1 Institutional Framework: The project includes setting up a committee that will be theproject steering organ (CPP). CPP will be chaired by the Minister of Planning andReconstruction and will comprise a representative of MEFB, the Managing Director ofBCECO, the Director of DPB, the Director of Studies of BCC, the UCP Coordinator and theCoordinator of the DSRP Technical Committee. CPP will meet at least once per quarter andset forth the project objectives, work programme and implementation schedule for the quarter.It will be supported by BCECO and the Project Coordinator who will be responsible forimplementation of project activities in the various beneficiary agencies. The projectcoordinator will notably be running the permanent secretariat of the Steering Committee,coordinating the drafting of periodical progress reports and monitoring projectimplementation through the technical units set up within the sub-components.
5.2.2 Organization and Management: The project will be managed by the ProjectImplementation Unit (PIU) set up within BCECO to manage ADF operations in DRC. Thisunit will also be managing the multi-sector emergency project for rehabilitation of socio-economic infrastructure (PMURIS) financed by ADF, and material and human means will bemobilized to that end. Using PMURIS funds, the Bank will finance the recruitment of anexpert in procurement and financial management of projects, who has good experience withthe Bank rules and procedures relating to management, contract award and disbursement.BCECO will further be strengthened by experts of the works inspection and supervision firmrecruited from a short list, on Bank financing. Logistics and computer facilities will beacquired as part of the infrastructure rehabilitation project, to enable BCECO to implementthe two projects optimally. Besides these resources that will be made available under theinfrastructure rehabilitation project, BCECO will benefit from the technical support of theproject coordinator as well as from the national consultants in charge of the training and DEPsupport component, respectively. The organization chart and the detailed presentation ofBCECO are in Annex 2 and Annex 9, respectively.
5.3 Implementation Schedule
The entry into force of the grant is scheduled for March 2003, and the estimated durationof the project is twenty-four (24) months, thus up to end March 2005. The project activitieswill begin with the installation of the support staff for the coordination bureau andprocurement of equipment. The provision by the Ministry of Planning of functional premisesfor the activities is one of the conditions for grant effectiveness. All the components will beactive as soon as the project takes effect.
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Table 5.1Tentative Project Implementation Schedule
Activities Agencyresponsible
Date/period
1.Board Presentation ADF November 2002
2. Signature of grant protocol ADF/Gvt. January 2002
3. Entry into force of grant ADF/Gvt. March 2003
4. Tender invitations SNRC May 2003
5. Delivery of goods and start-up of services SNRC August 2003
6. Quarterly audit of accounts External Audit October 2003 April2004 October 2004
7. Final Audit of accounts External Audit April 2005
5.4 procurement Arrangements
5.4.1 The arrangements for procurement of goods and services are summed up in table 5.2.All procurement of Bank-financed goods, works and services will be in conformity with theBank Rules and procedures for procurement or, as the case may be, the Bank Rules ofProcedure for utilization of consultants’ services, and using the Bank standard tenderdocuments.
Table 5.2Procurement Arrangements
In UA Million1
Expenditure CategoriesICB NCB Other2 Short List3
Financingother than by
TAFTotal
1. Goods 0.69 (0.69) 0.41 (0.41) 0.15 (0.15) 1.26 (1.26)
1.1 computer and office equipment 0.69 (0.69) 0.22 (0.22) 0.92 (0.92)
1.2 furniture 0.14 (0.14) 0.14 (0.14)
1.3 Vehicles 0.05 (0.05) 0.05 (0.05)
1.4 Supplies, consumer items and others 0.15 (0.15) 0.15 (0.15)
2. Consulting services 1.84 (1.84) 1.84 (1.84)
2.1 Studies 0.30 (0.30) 0.30 (0.30)
2.2 International Technical Assistance 0.40 (0.40) 0.40 (0.40)
2.3 Locally recruited Consultants 0.25 (0.25) 0.25 (0.25)
2.4 Training 0.85 (0.85) 0.85 (0.85)
2.5 Audit 0.05 (0.05) 0.05 (0.05)
3. Others 0.13 (0.13) 0.17 0.30 (0.30)
3.1 miscellaneous local services 0.13 (0.13) 0.13 (0.13)
3.2 operation (Government) 0.17 0.17
Total 0.69 (0.69) 0.41 (0.41) 0.28 (0.28) 1.84 (1.84) 0.17 3.40 (3.23)
1 The figures in parentheses concern the amounts financed by ADF2 " Other" refers to RCB, international or national shopping, direct negotiations or supervised works.3 The shortlist applies solely to utilization of consultants
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Goods
5.4.2 Procurement of computer and office equipment (computers, printers, software,photocopiers…) will be by international competitive bidding for approximately UA 0.83million in a single lot. Other equipment (UA 0.09 million), the office furniture (UA 0.14million) and the vehicles (UA 0.05 million) and various supplies (UA 0.15 million) will beprocured by local shopping for a total amount of UA 0.43 million.
Consultants
5.4.3 A top-level consulting firm will be recruited on the basis of a short list to provide twoexperts qualified in the following specializations: (i) an expert in public project managementwill to be seconded to the General Secretariat for Planning to coordinate quality control of theproject activities, as well as formulation of the training programme, for a period of 21 months,and (ii) an expert in public investment programming, who will provide technical assistance tothe Programming and Budget Department (Direction de la Programmation et Budgétisation)of the Ministry of Planning and Reconstruction and the ministries concerned with the sector,for a period of 18 months. The estimated contract cost is UA 0.40 million.
5.4.4 Four individual consultants will be recruited locally on the basis of short lists: (i) Twoconsultants, for 21 months each, whose contribution will consist in backing up the technicalassistant/Project coordinator; one specializing in human resource development, who should inparticular prepare the training programme for the entire project, and the other, in computerprocessing; and (ii) two consultants, for periods of 18 months each, to be attached to thetechnical assistant assigned to the Planning and Budget Department (DPB); one a macro-economist specializing in monitoring/evaluation of public investments and the other acomputer analyst-programmer specializing in database management.
5.4.5 Four other consultants will be recruited locally from shortlists, for periods notexceeding six months, to provide the following services: preparing project briefs for thepriority areas, conducting a census of the industrial enterprises, English translation servicesand web site creation. The total budget for consultants recruited locally for services other thantraining is 0.25 Million.
5.4.6 A study fund for an amount of UA 0.3 million will also be constituted, within the Pre-investment Division of DPB. This fund will be used for clearly- targeted studies notexceeding three months and serving to prepare priority sector projects, but also to identifydelimited support to the administrative units involved in the rehabilitation and management ofsocio-economic infrastructure. The consulting firms or individual consultants to conduct thesestudies will be selected on the basis of short lists. The terms of reference for the studies andthe consultants will be submitted in advance to the Bank.
Training
5.4.7 The training services (for an amount of UA 0.85 million) will be provided by trainingcenters abroad or in the country, or by consultants leading the local workshops andseminars. The training centers and Consultants will be selected on the basis of shortlists.
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Operation
5.4.8 The office supplies and consumer items will be purchased in accordance with theCountry’s clearly laid down commercial practices that are acceptable to the Bank. The otheroperating expenditure items relate to per diem, transport expenses and overheads.
Audit
5.4.9 The project audit (UA 0.05 million) will be conducted by audit firms selected from ashortlist. The selection will be based on the lowest price for comparable services.
General announcement of procurement and examination procedure
5.4.10 The text of the general announcement of procurement of goods and services will bedetermined in agreement with the executing agency and published in “DevelopmentBusiness”, following adoption of the grant proposal by the Board. The following documentswill be submitted for the consideration and approval of the Bank before being published: (i)short-list and invitation to bid; (ii) tender documents; (iii) bid evaluation reports andrecommendations for contract award; and (iv) contract drafts in the event of modification ofthe terms and conditions incorporated in the tender documents (TD).
5.5 Disbursement Arrangements
Expenditure involving under UA 20 000 will be from the special account to be opened atBCC to hold the TAF resources earmarked for the project. The special account will bereplenished in accordance with terms and conditions approved by ADF. This expenditurefrom the special account will be with prior ADF approval. Requests for replenishment of thespecial account will be submitted with a programme of activities that is acceptable to ADFand a summary statement of justification of the utilization of previous amounts released.Disbursements based on contracts (for equipment, supplies, etc.) will be by direct payment tosuppliers. The grant beneficiary agencies will verify the conformity of the services of thevarious project suppliers and service providers with the respective specifications and preparedisbursement requests, which they will submit to BCECO, prior to their transmission to theBank.
5.6 Monitoring and Evaluation
BCECO will be responsible for monitoring and evaluation of the project. Thebeneficiary and the Fund will be kept informed through regular submission of quarterlyactivity reports drafted by BCECO, using a format agreed with the Bank. These will cover,for the quarter concerned, aspects of project implementation, including the status ofimplementation, expenditure, work programming, analysis of any shortcomings recorded, aswell as any problems encountered and solutions proposed. They will also provide anoverview of activities for the following quarter. In addition, BCECO will prepare acompletion report within six months following the end of the project. Bank follow-up will bethrough site supervision missions at least twice a year. The Bank will further conduct a mid-term project review.
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5.7 Financial and audit reports
The project accounts will be kept by BCECO in accordance with the accounting planand principles generally accepted for private management. In that regard, it will keepaccounting registers showing the expenditure by component, by category of expenditure andby source of financing, as well as separate accounts for all the Bank operations. The projectaccounts will be verified twice yearly by an external audit firm whose services will befinanced from TAF resources, and reports presented without delay to the Bank. The first ofthese audits will be in July 2003.
5.8 Coordination of Donors
5.8.1 On the Government side, external aid coordination is under the responsibility of theMinistry of Economy, Finance and the Budget, in conjunction with the Ministry of ForeignAffairs. The Government lays particular emphasis on aid coordination to reinforce thecoherence and synergy of the contributions of the various partners involved in increasingDRC capacities. To guarantee effective coordination of capacity building activities in DRC,the Government in May 1999 set up the National Capacity Building Secretariat (SecretariatNational pour le Renforcement des Capacités -SENAREC) under the supervision of the Ministryof Planning and Reconstruction. SENAREC is responsible for coordinating PNURC, whichreceives the support of several development partners, particularly UNDP, the Bank and FARC.
5.8.2 BCECO is also involved in the implementation and coordination of capacity- buildingprojects. It is currently managing two grant lines, namely the Canadian and Belgian trustfund, for an initial amount of 5 million that has been raised to 10 Million USD, and the USD50 million grant provided by the World Bank to finance PMURR. In this context, theGovernment benefits from the support of the World Bank for PMURR preparation, resourcemobilization and implementation. The World Bank is supporting the organization of ameeting of the Consultative Group of Donors at end 2002, to mobilize resources to supportthe PMURR. Several donors, including the Bank are involved in financing capacity buildingin DRC, and their support is summed up in Paragraph 2.3 The present project has beendesigned to supplement the measures applied under the Bank’s reinforcement project which isunderway, and to create synergy with the support activities of other donors. The fact that theBank’s intervention involves the programme coordination organizations (SENAREC,BCECO, UCP) will facilitate coordination with other donors and make it possible to avoidoverlap.
VI PROJECT SUSTAINABILITY AND RISKS
6.1 Recurrent costs and Expenses
Project implementation will entail recurrent expenditure (consumer items, supplies,training costs, etc…), which will be partly covered by the grant for the life of the project. Theonly new recruitments concern external technical assistance and national consultants. Giventhe satisfactory initial results of the PIR, especially the restoring of a minimum capacity forresource mobilization and steering of the macro-economic and sector management, theGovernment should now, with the assistance of the donors, be in a position to generate theresources required to meet the recurrent expenses at the end of this project, starting from2005.
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6.2 Project Sustainability
6.2.1. Under the project, over 600 senior staff will receive appropriate training that will havea lasting effect on the capacity of the public agencies in implementing the PMURR activities.As a result of computerization starting from a level near zero in most of the agencies, theproject will achieve significant and sustainable productivity gains in the public departmentsconcerned, particularly in investment programming and rehabilitation of socio-economicinfrastructure, where the impact of the Bank’s poverty reduction action will be clearlyperceptible. In order to increase the sustainability of the training activities projected under theproject and to ensure consistency with the Government’s human resource developmentobjectives, the training programme will be designed taking into account the first conclusionsof the study on reform of the public service currently being co-financed by UNDP and theBelgian cooperation agencies (see paragraph 2.3.1.)
6.2.2. The bulk of the training under the project will be through well-targeted workshops andseminars on topics that are directly linked with the principle objectives of the Governmentprogrammes in very operational areas of administrative work organization. In addition, thecomputer facilities will help raise the productivity of managers in the agencies supported.With the training component, the project will help strengthen the human capital, which willthus contribute more effectively to maintaining human development in the country. Lastly,the synergy developed with the activities of the other donors with regard to capacity building,especially in trainer training, will help reinforce the project’s sustainability, by increasing thenumbers of beneficiaries and the continuous updating of the skills of Government employees.
6.3 Major risks and mitigative measures
6.3.1 The major project risks can be summed up as follows: (i) Political instability in theevent of continued warfare; (ii) weakening of the Congolese administration’s politicalcommitment in respect of economic governance aspect; and (iii) the lack of motivation ofsenior staff of the administration, given the low public service salaries, which could causesubstantial movement of the staff trained.
6.3.2 The risk of instability is largely hedged by the Pretoria Agreement signed withRwanda on 30 July 2002 and by the advances in intra-congolese policy dialogue, which couldeventuate in the forming of a transition Government. As for the risk of inadequate politicalcommitment on the part of the Government, it is attenuated by the first positive resultsobserved in the implementation of the PIR. Indeed, the authorities have hitherto shown greatdetermination in implementing the reforms undertaken by the country under the economicprogrammes launched in agreement with e donors, including the Bank. The third riskconcerning the limited motivation of the senior staff of the administration will be graduallycovered by the authorities under the projected public service reform, which should ultimatelyreduce the staff strengths, with progressive increase of staff salaries as the public incomeobjectives are attained. With regard to motivation, it should be mentioned that the projectwould provide not only modern work equipment, but also high-level technical assistance andseveral training activities that will have medium-term benefits.
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VII. PROJECT BENEFITS
7.1 Social and Economic Benefits
7.1.1 The project will provide DRC higher increased capacity and management tools forformulation and implementation of macro-economic and sector policies. It should thus bringabout lasting improvement in the quality of the State’s economic and financial management,particularly with the timely production of summary and Programme monitoring documentsand improved debt management. By its efforts to improve the PIP planning andprogramming, the project will make for enhanced implementation of the PMURR, which willlead to rehabilitation of socio-economic infrastructure and increased supply of essential socialservices with the attendant beneficial effects for lasting economic development and povertyreduction. By helping to refine the concepts of the PMURR projects, this project will allowfor improved mobilization of external resources to support the Programme. Given the trainingof senior staff of the ministries concerned with economic affairs and the particular sectorconcerned, for better management of the project cycle, and project appraisal and monitoring,the Bank’s support will have a real impact to improve resource mobilization, and beyond that,substantially increase the rate of absorption of external financing.
7.1.2 Lastly, by strengthening the agencies involved in promoting the activities ofenterprises and households (FEC, DIN, CEPI, ANAPI, etc.), the project should help create theconditions for real development of the private sector and aid the establishment of a climate tofavour growth of private investments in DRC. The project also has a significant social facet,since it will indirectly create new jobs in the services sector (computer, training, etc.) andabove all, anchor the existing jobs through its significant training component, but alsobecause it will upgrade administrative work by increasing motivation and exchange ofinformation between the ministries involved in the project.
7.2 Impact on Crosscutting Issues
7.2.1 Impact on Governance: The project will directly support three fundamental aspectsof governance: (i) greater control of the country’s macro-economic environment andimproved management of public finances; (ii) improving the public investment planning andmanagement capacities; and (iii) building the administration’s capacity to rehabilitate andmanage the socio-economic infrastructure, with emphasis on the participatory approach, toafford the population greater access to essential services (education, health).
7.2.2 Impact on development of the private sector: the project, in creating the conditionsfor improved economic steering will make it possible to establish more stable macro-economic frameworks, in favor of private investment. Similarly, by strengthening theagencies involved in rehabilitation of transport, water, sanitation and electricity infrastructure,the project will help improve the quality and competitiveness of factors of production ofenterprises operating in DRC. Lastly, the ANAPI promotion measures coupled with theconsolidation of peace and political stability, should have a positive impact on the flow ofdirect foreign investments in DRC.
7.2.3 Impact on women: women represent 51% of the population of DRC and play animportant role in subsistence economy and stabilization of the social fabric, especially in therural areas where over 70% of the population of the Congolese population is found. Womenshould thus be at the center of any policy on lasting development and poverty reduction. By
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helping build up the capacities of the agencies whose mission is to formulate and implementthis policy, this project will aid effective consideration of the concerns arising from genderissues. Furthermore, the training conducted as part of the project for the benefit of civilservants will also benefit women. The Bank will, under its training programmes, ensure thata substantial portion of women employees receive training. In addition, the component for«support to development of women’s entrepreneurship» will help strengthen and providebetter supervision for women’s organizations operating in the productive sectors. With thestrengthening of the unit for development of women’s entrepreneurship and the training of 45women entrepreneurs, the project will have an appreciable impact on management andcompetitiveness of enterprises belonging to women, which will enable them to effectivelycontribute to poverty reduction.
VIII. CONCLUSIONS AND RECOMMENDATIONS
8.1 Conclusions
DRC has for several years faced a severe economic and social crisis that has been worsenedwith the resumption of the war in August 1998. In addition, the country’s institutional capacitieshave been eroded over time, mainly owing to the disorganization of administrative services, thede-motivation of State employees, old and obsolete work tools and the lack of continuoustraining at all levels. The Government will make efforts to normalize its relations with theinternational community and put the economy back on the path to sustainable growth so as toensure poverty reduction in DRC. This strategy is supported by the PMURR, which the Bankintends to support in conjunction with other development partners including the World Bank.This is thus the context of multi-sector institutional support project that seeks to increasecapacities for formulating and implementing medium and long-term strategies at the macro-economic level and in priority sectors.
8.2 Recommendations and conditions of entry into force of the grant
Il is recommended that the Government of DRC be given a grant out of TAF resourcesnot exceeding 3.23 million Units of Account to finance the project.
Conditions of entry into force:
The entry into force of the grant will be subject to fulfillment by the Borrower of thefollowing conditions:
(i) Furnish proof of the opening, at BCC, of a special account in the project’sname and into which will be paid the TAF resources for the revolving fund(see paragraph 5.5);
(ii) Furnish the Fund with proof that the project has been provided with thefunctional premises to house the project activities (see paragraph 5.3); and
(iii) Furnish the Fund with proof that the project implementation unit set up withinBCECO to manage ADF-financed projects has been designated as theImplementation Unit for this particular project (see paragraph 5.2.2).
ANNEX 1
DEMOCRATIC REPUBLIC OF CONGOADMINISTRATIVE MAP OF DRC
This map was provided by the African Development Bank Group exclusively for the use of the readers of the report to which it is attached.The names used and the borders shown do not imply on the part of the Bank and its members any judgement concerning the legal status of aterritory nor any approval or acceptance of these borders.
Zongo GbadoliteMobayi-
Mbongo
Gemena
LisalaBumba
EQUATEUR
MbandakaBoende
Ikela
Bondo
Aketi
Buta
Titule
Isiro
Aba
Mungbere
Bunia
Mambasa
Ubundu
KisanganiBeni
Rutshuru
Goma
NORD-
KIVULubutu
Kalima
Kindu
MANIEMA
ORIENTALE
Bukavu
Shabunda
Uvira
Fizi
SUD-KIVU
Lusambo
Mbuji-Mayi
KASAI ORIENTAL
Ilebo
Kananga
KASAI OCCIDENTAL
Tshikapa
Bandundu
Kikwit
BANDUNDUKinshasa
KINSHASA
Tshela
BomaMatadi
Mbanza-
Ngungu
BAS-
CONGO
KabaloKalemie
Kamina
DiloloKolwezi Likasi
Lubumbashi
KATANGA
ZAMBIE
ANGOLA
TANZANIE
BURUNDI
RWANDA
OUGANDA
SOUDAN
REPUBLIQUE CENTRAFRICAINE
CONGO
ZAMBIA
TANZANIA
UGANDA
SUDANCENTRAL AFRICAN REP.
Annex 2
BCECO RGANIZATION CHART
Managing Director
Assistant ManagingDirector
MD’s Assistant
Private Secretary
Technical Director Director of Procurement Administrative & Financial Director
DTA/Consultant
5 Project Officers
ProcurementConsultant
2 Specialists
FinancialManagement Adviser
Finance and Accounting Administration
Managerial Staff
Middle-Level
Support Staff
Financial Analyst
Cash Office
ManagementController
Annex 3 Page 1 of 2
Terms of Reference of the Technical Assistant for the Planning and BudgetingDepartment
Objectives:
The expert’s mission is to strengthen the Planning and Programming Department(DPB) in its public investments programming and monitoring functions and in ensuring theconsistency of the sector planning strategies applied by the technical ministries with theoverall development strategy.Duties
(i) Analyze the investment programming system overall, with particular attention to thefollowing aspects:
- The operational capacities for identification, selection, execution andmonitoring/evaluation of projects;
- The functional links between the DPB, DCS and the DEP of the sectorministries at the stage of formulation of public investment programmes;
- The administrative stages for budgeting and financing public investmentfinancing;
(ii) Prepare a precise diagnosis on the above aspects and propose measures toadministratively and technically increase the efficiency of the system in PIPimplementation and application of available resources;
(iii) Propose a mechanism for consultation between MAED and the technicaldepartments in defining the sector strategies and programming of investments;
(iv) Propose a method to improve project implementation and external aid coordinationthrough effective control of disbursements;
(v) Formulate recommendations concerning improvements to be made in theinformation management system for physical and financial execution of projects;
(vi) Contribute to setting up and managing computer databases in computers andcomputer application s for public investment programming and follow-up;
(vii) Formulate a method for appraisal, budget programming and physical and financialfollow-up of projects and for analysis of the impact on the national economy(outside direct financial impacts);
(viii) Formulate a training programme on project management and monitor itsimplementation;
(ix) Develop reporting models and notes for project monitoring/evaluation;
Annex 3 Page 2 of 2
(x) Verify and evaluate consistency between PIP, the projects selected and theirimpact on the sector policies;
(xi) Participate in the design and implementation of a training programme for seniorstaff of DPB, DCS, UCP and DEP supported by the project;
(xii) Provide classes for senior staff of the project beneficiary agencies on the projectcycles and monitoring and evaluation techniques;
(xiii) Carry out the transfer of skills needed to reinforce the competencies of DPB seniorstaff;
(xiv) Assist the Project Steering Committee in implementing its tasks, in particular,coordinating the formulation of training programmes with BCECO andparticipating in the recruitment of national consultants.
Competencies required
The candidates for this position should have a university qualification in developmenteconomics (troisième cycle), and sound experience in management of public projects inAfrica. This person should have a good knowledge of French as the working language of thecountry.
Contract duration: Eighteen months (18) months.
Duty Station: Ministry of Planning and Reconstruction, Kinshasa (RDC)
Annex 4 Page 1 of 2
Terms of Reference of the Macro-Economist/Project Coordinator
Objectives:
A Macro-economist will be recruited to be attached to the General Secretariat forPlanning to support the Ministry of Planning and Reconstruction in its role of technicalsupervision and coordination of the project. The coordinator’s mission will be tosystematically evaluate the proper technical execution of the project activities under thedifferent components and the services of experts and project consultants.
Duties
The Project Coordinator will:
i) Ensure smooth implementation of the project as a whole, with particularattention to the following aspects:
- Setting up and smooth functioning of the technical units that will becarrying out the technical execution of the project under the sub-components;
- The functional links between BCECO, the beneficiary agencies, thetechnical units and the steering committee, at the time of formulationof the project activity programmes;
- The administrative stages for preparation of tender documents andtheir transmission to BCECO and issuing of invitations and bidopening by the latter, in line with the relevant Bank rules ofprocedure;
ii) Establish a clear diagnosis on the above aspects from the standpoint of humanresources development and draw up a training plan based on the tentativeprogramme contained in the present report;
iii) Propose a mechanism for consultation between MPR and the technicaldepartments and the definition of selection criteria for the project trainingprogramme participants;
iv) Coordinate the project activities with those of other capacity- building projectsunderway in DRC, and notably maintain close relations with SENAREC, ATP,the APNURC project and BCECO;
v) Run the CPP secretariat and thus (a) prepare the programme and annual workschedule; (b) convene meetings and draft the records; (c) centralize andmanage the technical documentation of the project and; (d) conduct anevaluation of the implementation of the work programme
Annex 4 Page 2 of 2
vi) Formulate recommendations concerning improvements to the informationmanagement system for physical and financial monitoring of the execution ofthe projects;
vii) Co-ordinate the installation and management of databases in the individualcomputers and the computer applications that will be acquired for the project;
viii) Co-ordinate the selection and setting up of equipment, particularly thecomputer material and ensure that computer training is programmed in linewith the delivery of equipment;
ix) Co-ordinate preparation of quarterly progress reports and ensure their timelytransmission;
x) Prepare the Bank supervision missions and coordinate the Bank experts’ workprogramme and activities for these missions;
xi) Carry out the skill transfer required to reinforce the competency of the DPBsenior staff;
xii) Assist the Project Steering Committee in implementing its duties, in particular,coordinating with BCECO the formulation of training programmes andparticipating in the recruitment of national consultants.
Competencies required
The candidate for this position should have university training in developmenteconomics (masters level) and substantial experience in public project management in Africa.This person should have a good knowledge of French, which is the working language of thecountry concerned.
Contract duration: Twenty-one (21 months).
Duty Station: Ministry of Planning and Reconstruction, Kinshasa (RDC)
Annex 5
Terms of Reference for audit
External Auditor
The audit will be conducted by a local firm with a good reputation and using French asits working language.
Objective:
i) Set up the project accounting system, provide additional training for the projectaccountant and provide the accountant assistance at the start-up;
ii) Audit the accounts of the project at the end of each financial year.
Mission:
(a) Training and setting up: The project accounts will be the public type. At start-up,the accountant will be prepared for the project accounting so as to have theprocedural bases and the records that are indispensable to determine the up-to-dateand accurate financial position. This preparation will come at the start ofimplementation. The task will consist in: i) accounting initiation concerningspecific project entries; ii) design of the principle financial documents and financialstatements; iii) design of financial information circulation mechanism, to ensurecentralization, registration and proper storage of data. This accounting system willinvolve complete registers presenting expenditure by component, category ofexpenditure, and source of financing and separate accounting for all operationsfinanced by the Bank. The main statements will concern: the fixed assets inventory,project expenses, the daily income and expenditure record, the bank book, the cashledger and vouchers, local and foreign exchange operations.
(b) Annual Audit of Accounts: This is conducted each year in accordance with theBank control procedures and the findings should be submitted at the latest sixmonths following the end of the financial year. The audit covers the followingaspects:
Accounts are kept in accordance with the existing standards and updated; The accounts are accurate and genuine; The recording and entry of funds/expenses is correct; The income and expenditure book is kept on a day-to-day basis; The bank reconciliation’s are carried out; The cash accounts are suitably kept and documented; The inventory of project property is complete and up–to-date; Verify the that the procedures are adequate and applied; Make recommendations to the project Make recommendations to the Bank.
Contract duration : Total of (30) days
Location : Kinshasa (DRC)
Annex 6 Page 1 of 4
DRC
MULTISECTOR INSTITUTIONAL SUPPORT PROJECT
DETAILED PROJECT COST
US$ Thousand UA Thousand
2003 2004 Financt 2003 2004 FinancingCOMPONENTS AND CATEGORY OF
EXPENDITUREUnit Qty
UP
F.E. L.C. F.E. L.C.
Total
TAF Gvt. F.E. L.C. F.E. L.C.
Total
TAF Gvt.
COMPONENT I : MACRO-ECONOMIC MANAGEMENT, PROGRAMMING AND BUDGETING OF INVESTMENTS
A. Support to Macro-Economic Policies
A1. Project Coordination 124.5 63.6 96.0 98.0 382.1 382.1 0.0 93.8 47.9 72.3 73.8 287.8 287.8 0.0
International Experts’ Fees S/F 21 8.0 72.0 0.0 96.0 0.0 168.0 168.0 0.0 54.2 0.0 72.3 0.0 126.6 126.6 0.0
Air Fare A/R 2 1.8 3.6 0.0 0.0 0.0 3.6 3.6 0.0 2.7 0.0 0.0 0.0 2.7 2.7 0.0
Accommodation Month 21 4.5 0.0 31.5 0.0 63.0 94.5 94.5 0.0 0.0 23.7 0.0 47.5 71.2 71.2 0.0
Sation-Wagon 4X4 Vehicle Nb 1 32.0 32.0 0.0 0.0 0.0 32.0 32.0 0.0 24.1 0.0 0.0 0.0 24.1 24.1 0.0
Vehicle maintenance (ins., fuel, etc.) Yr 1.75 6.0 0.0 3.5 0.0 7.0 10.5 10.5 0.0 0.0 2.6 0.0 5.3 7.9 7.9 0.0
Training Coordinator (local) S/M 21 1.2 0.0 8.4 0.0 16.8 25.2 25.2 0.0 0.0 6.3 0.0 12.7 19.0 19.0 0.0
Computer Coordinator (local) S/M 21 0.8 0.0 5.6 0.0 11.2 16.8 16.8 0.0 0.0 4.2 0.0 8.4 12.7 12.7 0.0
Equipment & various supplies Lot 1 31.5 16.9 14.6 0.0 0.0 31.5 31.5 0.0 12.7 11.0 0.0 0.0 23.7 23.7 0.0
A2 Support to Treasury, DEPFI, BCC, OGEDEP
2 Training Part 263 1.0 149.7 105.6 0.0 0.0 255.3 255.3 0.0 112.7 79.6 0.0 0.0 192.3 192.3 0.0
3 Equipment, supplies, etc.. Lot 1 481 446.8 34.6 0.0 0.0 481.4 481.4 0.0 336.5 26.1 0.0 0.0 362.6 362.6 0.0
S/Total A.2 596.4 140.2 0.0 0.0 736.6 736.6 0.0 449.3 105.6 0.0 0.0 554.9 554.9 0.0
A.3 DPSR pilot survey on poverty
Fees of international experts S/M 3 6.0 18.0 0.0 0.0 0.0 18.0 18.0 0.0 13.6 0.0 0.0 0.0 13.6 13.6 0.0
Air fare A/R 5 0.6 0.0 2.8 0.0 0.0 2.8 2.8 0.0 2.1 2.1 0.0 0.0 2.1 2.1 0.0
Accommodation Months 3 1.2 0.0 3.6 0.0 0.0 3.6 3.6 0.0 0.0 2.7 0.0 0.0 2.7 2.7 0.0
National consultants S/M 10 1.5 0.0 15.0 0.0 0.0 15.0 15.0 0.0 0.0 11.3 0.0 0.0 11.3 11.3 0.0
Local transport lsum 1 2.1 0.0 2.1 0.0 0.0 2.1 2.1 0.0 0.0 1.6 0.0 0.0 1.6 1.6 0.0
Local perdiem lsum 1 78.6 0.0 78.6 0.0 0.0 78.6 78.6 0.0 0.0 59.2 0.0 0.0 59.2 59.2 0.0
Allowances for surveys, superv., verific., &team leaders S/M 11 1.7 0.0 18.5 0.0 0.0 18.5 18.5 0.0 0.0 13.9 0.0 0.0 13.9 13.9 0.0
Training local staff lsum 1 8.3 0.0 8.3 0.0 0.0 8.3 8.3 0.0 0.0 6.3 0.0 0.0 6.3 6.3 0.0
Operating Lot 1 29.3 29.3 0.0 0.0 0.0 29.3 29.3 0.0 22.1 0.0 0.0 0.0 22.1 22.1 0.0
Annex 6 Page 2 of 4
US$ Thousand UA Thousand
2003 2004 Financt 2003 2004 FinancingCOMPONENTS AND CATEGORY OF
EXPENDITUREUnit Qty
UP
F.E. L.C. F.E. L.C.
Total
TAF Gvt. F.E. L.C. F.E. L.C.
Total
TAF Gvt.
Operating Forf 1 1.1 0.0 1.1 0.0 0.0 1.1 1.1 0.0 0.0 0.8 0.0 0.0 0.8 0.8 0.0
Total A.3 47.3 129.9 0.0 0.0 177.2 177.2 0.0 37.7 97.9 0.0 0.0 133.5 133.5 0.0
TOTAL SUB-COMPONENT A 768.2 333.7 96.0 98.0 1295.9 1295.9 0.0 487.0 203.5 0.0 0.0 688.4 688.4 0.0
B. Reinforcement of investment Planning and ProgrammingCapacities
B.1 Support to DBP, DCS, COSEP, UCP and CSNEP
1 Consultants, PI Programming & SectorStrategy 84.0 44.4 96.0 88.8 313.2 313.2 0.0 63.3 33.4 72.3 66.9 235.9 235.9 0.0
International Experts’ Fees H/M 18 8.0 48.0 0.0 96.0 0.0 144.0 144.0 0.0 36.2 0.0 72.3 0.0 108.5 108.5 0.0
Air Fare A/R 2 2.0 4.0 0.0 0.0 0.0 4.0 4.0 0.0 3.0 0.0 0.0 0.0 3.0 3.0 0.0
Accommodation Mois 18 4.5 0.0 27.0 0.0 54.0 81.0 81.0 0.0 0.0 20.3 0.0 40.7 61.0 61.0 0.0
Sation-Wagon 4X4 Vehicle Nb 1 32.0 32.0 0.0 0.0 0.0 32.0 32.0 0.0 24.1 0.0 0.0 0.0 24.1 24.1 0.0
Vehicle maintenance (ins., fuel, etc.) An 1.5 6.0 0.0 3.0 0.0 6.0 9.0 9.0 0.0 0.0 2.3 0.0 4.5 6.8 6.8 0.0
PIP national consultants H/M 18 1.2 0.0 7.2 0.0 14.4 21.6 21.6 0.0 0.0 5.4 0.0 10.8 16.3 16.3 0.0
National computer consultant H/M 18 1.2 0.0 7.2 0.0 14.4 21.6 21.6 0.0 0.0 5.4 0.0 10.8 16.3 16.3 0.0
2 Pre-investment study funds Forf 1 398 99.6 99.6 99.6 99.6 398.3 398.3 0.0 75.0 75.0 75.0 75.0 300.0 300.0 0.0
3 Training Part 159 1.1 95.2 87.3 0.0 0.0 182.5 182.5 0.0 71.7 65.7 0.0 0.0 137.5 137.5 0.0
4 Equipment, supplies & miscellaneous Lot 1 89 78.9 10.1 0.0 0.0 89.0 89.0 0.0 59.4 7.6 0.0 0.0 67.0 67.0 0.0
Total B.1 357.7 241.3 195.6 188.4 982.9 982.9 0.0 269.4 181.8 147.3 141.9 740.4 740.4 0.0
B.2 Support to the Direction d'études etplanification
1 Training Part 613 0.7 93.8 337.1 0.0 0.0 430.8 430.8 0.0 70.6 253.9 0.0 0.0 324.5 324.5 0.0
2 Equipment, supplies & miscellaneous Lot 1 509 449.4 59.6 0.0 0.0 509.0 509.0 0.0 338.5 44.9 0.0 0.0 383.4 383.4 0.0
Total B.2 543.1 396.7 0.0 0.0 939.8 939.8 0.0 409.1 298.8 0.0 0.0 707.9 707.9 0.0
TOTAL SUB-COMPONENT B 900.8 638.0 195.6 188.4 1922.7 1922.7 0.0 678.5 480.6 147.3 141.9 1448.3 1448.3 0.0
TOTAL COMPONENT I 1669.0 971.7 291.6 286.4 3218.6 3218.6 0.0 1165.5 684.1 147.3 141.9 2136.7 2136.7 0.0
COMPONENT II : SUPPORT TO PRIVATE SECTOR PROMOTION AGENCIES
A. Reinforcement of enterprise support services
1 Project briefs & industrial record (DIN) 0.00 29.80 0.00 0.00 29.80 29.80 0.00 0.0 22.4 0.0 0.0 22.4 22.4 0.0
Annex 6 Page 3 of 4
US$ Thousand UA Thousand
2003 2004 Financt 2003 2004 FinancingCOMPONENTS AND CATEGORY OF
EXPENDITUREUnit Qty
UP
F.E. L.C. F.E. L.C.
Total
TAF Gvt. F.E. L.C. F.E. L.C.
Total
TAF Gvt.
Consultant: Preparation of project briefs forpriority sectors S/M 6 1.2 0.0 7.2 0.0 0.0 7.2 7.2 0.0 0.0 5.4 0.0 0.0 5.4 5.4 0.0
Count of industrial enterprises S/M 6 1.2 0.0 7.2 0.0 0.0 7.2 7.2 0.0 0.0 5.4 0.0 0.0 5.4 5.4 0.0
Local transport, communication, miscellaneous For 1 6.0 0.0 6.0 0.0 0.0 6.0 6.0 0.0 0.0 4.5 0.0 0.0 4.5 4.5 0.0
Drafting and printing of records & briefs For 1 9.4 0.0 9.4 0.0 0.0 9.4 9.4 0.0 0.0 7.1 0.0 0.0 7.1 7.1 0.0
2. Training Part 211 0.4 0.0 92.1 0.0 0.0 92.1 92.1 0.0 0.0 69.4 0.0 0.0 69.4 69.4 0.0
3 Equipment, Supplies & Miscellaneous Lot 1 10 10.0 0.0 0.0 0.0 10.0 10.0 0.0 7.5 0.0 0.0 0.0 7.5 7.5 0.0
S/Total A. 10.0 121.9 0.0 0.0 131.9 131.9 0.0 7.5 91.8 0.0 0.0 99.3 99.3 0.0
B. Support to ANAPI
2 Investment Promotion 17.6 33.8 14.4 4.8 70.6 70.6 0.0 35.1 25.5 10.8 3.6 53.2 53.2 0.0
Fairs and fora, air fare Nb 8 1.2 0.0 4.8 0.0 4.8 9.6 9.6 0.0 0.0 3.6 0.0 3.6 7.2 7.2 0.0
Perdiem and subsistence Nbj 64 0.2 4.8 0.0 4.8 0.0 9.6 9.6 0.0 3.6 0.0 3.6 0.0 7.2 7.2 0.0
Stands and rep. Fees Nbj 8 1.8 4.8 0.0 9.6 0.0 14.4 14.4 0.0 3.6 0.0 7.2 0.0 10.8 10.8 0.0
Brochures, prospectus, streamers Forf 1 8.0 0.0 8.0 0.0 0.0 8.0 8.0 0.0 6.0 6.0 0.0 0.0 6.0 6.0 0.0
Video & CD-Rom on investments Forf 1 5.0 0.0 5.0 0.0 0.0 5.0 5.0 0.0 3.8 3.8 0.0 0.0 3.8 3.8 0.0
Translation & preparation of code in English Forf 1 8.0 0.0 8.0 0.0 0.0 8.0 8.0 0.0 6.0 6.0 0.0 0.0 6.0 6.0 0.0
Documentation Forf 1 8.0 8.0 0.0 0.0 0.0 8.0 8.0 0.0 6.0 0.0 0.0 0.0 6.0 6.0 0.0
Creation of WEB Site Forf 1 8.0 0.0 8.0 0.0 0.0 8.0 8.0 0.0 6.0 6.0 0.0 0.0 6.0 6.0 0.0
3. Training Part 33 0.9 18.9 11.8 0.0 0.0 30.7 30.7 0.0 14.2 8.9 0.0 0.0 23.1 23.1 0.0
4 Equipment, Supplies and Miscellaneous Lot 1 77 66.2 10.6 0.0 0.0 76.8 76.8 0.0 49.8 49.8 0.0 0.0 57.8 57.8 0.0
S/Total B. 102.7 56.2 14.4 4.8 178.0 178.0 0.0 99.2 84.2 10.8 3.6 134.1 134.1 0.0
0.0 0.0 0.0 0.0 0.0 0.0 0.0
TOTAL COMPONENT II 112.7 178.1 14.4 4.8 309.9 309.9 0.0 106.7 176.0 10.8 3.6 233.5 233.5 0.0
COMPONENT III : SUPPORT TO PMURIS
A SUPPORT TO BTC
1 Training 7.3 18.4 0.0 0.0 25.6 25.6 0.0 5.5 13.8 0.0 0.0 19.3 19.3 0.0
- local Part 26 0.7 0.0 18.4 0.0 0.0 18.4 18.4 0.0 0.0 13.8 0.0 0.0 13.8 13.8 0.0
- abroad and study tours Part 2 3.6 7.3 0.0 0.0 0.0 7.3 7.3 0.0 5.5 0.0 0.0 0.0 5.5 5.5 0.0
2 Equipment supplies & miscellaneous Lot 1 67.8 55.6 12.2 0.0 0.0 67.8 67.8 0.0 41.9 9.2 0.0 0.0 51.0 51.0 0.0
S/Total Sub-Component B 62.9 30.5 0.0 0.0 93.4 93.4 0.0 47.3 23.0 0.0 0.0 70.3 70.3 0.0
Annex 6 Page 4 of 4
US$ Thousand UA Thousand
2003 2004 Financt 2003 2004 FinancingCOMPONENTS AND CATEGORY OF
EXPENDITUREUnit Qty
UP
F.E. L.C. F.E. L.C.
Total
TAF Gvt. F.E. L.C. F.E. L.C.
Total
TAF Gvt.
B SUPPORT TO OVD
1 Training 3.0 8.8 0.0 0.0 11.8 11.8 0.0 2.3 6.6 0.0 0.0 8.9 8.9 0.0
- local Part 21 0.4 0.0 8.8 0.0 0.0 8.8 8.8 0.0 0.0 6.6 0.0 0.0 6.6 6.6 0.0
- abroad and study tours Part 1 3.0 3.0 0.0 0.0 0.0 3.0 3.0 0.0 2.3 0.0 0.0 0.0 2.3 2.3 0.0
2 Equipment, supplies & miscellaneous Lot 1 73.9 63.8 10.1 0.0 0.0 73.9 73.9 0.0 48.1 7.6 0.0 0.0 55.6 55.6 0.0
S/Total sub/component C 66.8 18.9 0.0 0.0 85.7 85.7 0.0 50.3 14.2 0.0 0.0 64.5 64.5 0.0
C SUPPORT TO CFAV
1 Training - local Part 120 0.2 0.0 29.4 0.0 0.0 29.4 29.4 0.0 0.0 22.2 0.0 0.0 22.2 22.2 0.0
2 Equipment, supplies & miscellaneous Lot 1 84.2 75.4 8.8 0.0 0.0 84.2 84.2 0.0 56.8 6.6 0.0 0.0 63.4 63.4 0.0
S/Total sub-component D 75.4 38.2 0.0 0.0 113.6 113.6 0.0 56.8 28.8 0.0 0.0 85.6 85.6 0.0
D SUPPORT TO PNA
1 Training - local Part 24 0.5 12.6 0.0 0.0 0.0 12.6 12.6 0.0 9.5 0.0 0.0 0.0 9.5 9.5 0.0
- abroad and study tours Part 3 12.4 37.3 0.0 0.0 0.0 37.3 37.3 0.0 28.1 0.0 0.0 0.0 28.1 28.1 0.0
2 Equipment, supplies & miscellaneous Lot 1 96.3 86.3 10.1 0.0 0.0 96.3 96.3 0.0 65.0 7.6 0.0 0.0 72.6 72.6 0.0
S/Total Sub-Component E 136.1 10.1 0.0 0.0 146.2 146.2 0.0 102.5 7.6 0.0 0.0 110.1 110.1 0.0
TOTAL COMPONENT III 341.1 97.7 0.0 0.0 438.8 438.8 0.0 257.0 73.6 0.0 0.0 330.5 330.5 0.0
COMPONENT IV : COORDINATION & PROJECT MANAGEMENT
2. Operation 0.0 117.8 0.0 107.8 225.7 0.0 225.7 0.0 88.8 0.0 81.2 170.0 0.0 170.0
Operation (Government) Forf 1 226 0.0 112.8 0.0 112.8 225.7 0.0 225.7 0.0 85.0 0.0 85.0 170.0 0.0 170.0
3. Project Audit An 2 30.0 30.0 0.0 30.0 0.0 60.0 60.0 0.0 22.6 0.0 22.6 0.0 45.2 45.2 0.0
TOTAL COMPONENT IV 30.0 117.8 30.0 107.8 285.7 60.0 225.7 23 89 23 81 215 45 170
TOTAL BASE COST 2152.8 1365.3 336.0 399.0 4253.0 4027.3 225.7 1622 1028 253 301 3204 3034 170
Contingencies (5% equipment) 70.5 8.5 0.0 0.0 79.0 79.0 0.0 53.1 6.4 0.0 0.0 59.5 59.5 0.0
Inflation rate (5% base cost) 102.7 57.6 11.8 9.3 181.5 181.5 0.0 77.3 43.4 8.9 7.0 136.7 136.7 0.0
TOTAL COST 2325.9 1431.4 347.8 408.3 4513.5 4287.8 225.7 1752 1078.3 262.0 307.6 3400.0 3230.0 170.0
Annex 7 Page 1 of 3
DRC
MULTISECTOR INSTITUTIONAL SUPPORT PROJECT
LIST OF GOODS
Minist of Econ., Fin. & Budget Ministry of Planning and Reconstruction Minist. of Indust., Trade & SMAEItem Unit Total
Treas. DEPFI OGEDEP BCC DPB DI DCS COSEP ANAPI PUC CSNEP CCP DIN CEPI PASP CDFE
Computer Equipment
Office computers Nb 94 5 8 10 10 12 4 6 1 10 4 3 4 10 5 3 3
Laser printers Nb 43 3 5 4 4 5 2 3 1 4 2 1 2 3 2 2 2
Matrix printers Nb 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Inkjet printers Nb 51 2 3 6 6 7 2 3 0 6 2 2 2 7 3 1 1
Inverters Nb 87 5 8 10 10 5 4 6 1 10 4 3 4 10 5 3 3
Scanner Nb 18 1 1 0 5 1 1 1 1 1 1 1 1 1 1 1 1
CD-ROM burner Nb 13 1 0 0 1 1 1 1 1 1 1 1 1 1 1 1 1
Server (P3 1GHZ,1Go, 6-Disk) Nb 6 1 0 2 2 1 0 0 0 0 0 0 0 0 0 0 0
Switcher 24 ports 10/100 Nb 6 1 0 2 2 1 0 0 0 0 0 0 0 0 0 0 0
Mixing Unit Nb 6 1 0 2 2 1 0 0 0 0 0 0 0 0 0 0 0
UTP cabling 5 Hm 60 10 0 20 20 10 0 0 0 0 0 0 0 0 0 0 0
Configuration and Installation Forf 6 1 0 2 2 1 0 0 0 0 0 0 0 0 0 0 0
Internet connection 24 m.onths Forf 14 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1
Network Nb 2 1 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0
Software Nb 1 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0
Office Equipment
Heavy duty photocopiers Nb 8 1 1 1 0 1 0 1 0 1 0 0 1 1 0 0
Smaller photocopiers Nb 14 1 1 1 0 1 1 0 1 2 1 1 1 1 1 1 1
Fax Nb 13 1 1 1 0 1 1 0 1 1 1 1 1 1 1 1 1
Calculators Nb 83 5 10 10 0 10 5 0 2 10 2 4 2 10 5 5 5
Typewriters Nb 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Binder Nb 16 1 1 2 0 1 1 1 1 2 1 1 1 1 1 1 1
Window airconditioner Nb 37 3 5 5 0 3 3 3 1 0 1 2 1 5 2 2 2
Split airconditioners Nb 10 0 2 2 0 2 1 1 0 0 0 0 2 0 0 0
Annex 7 Page 2 of 3
Minist of Econ., Fin. & Budget Ministry of Planning and Reconstruction Minist. of Indust., Trade & SMAEItem Unit Total
Treas. DEPFI OGEDEP BCC DPB DI DCS COSEP ANAPI PUC CSNEP CCP DIN CEPI PASP CDFE
Office Fourniture
Desks Nb 85 4 4 10 0 6 4 4 0 10 10 3 10 15 7 4 4
Conference Table Nb 17 1 1 2 0 1 1 1 0 2 2 1 2 2 1 1 1
Seats Nb 376 20 20 60 0 24 16 16 0 40 40 16 40 60 30 16 18
Cupboards Nb 99 4 4 24 0 6 4 4 0 4 12 4 12 17 8 4 4
Vehicles Nb 2 0 0 0 0 1 0 0 0 0 0 0 1 0 0 0 0
Fournitures
Computer supplies Lot 29 2 2 3 3 1.5 2 1 3 2 2 2 3 2 1.5 1
Photocopier supplies Lot 29 2 2 3 3 1.5 2 1 3 2 2 2 3 2 1.5 1
Paper reams Lot 29 2 2 3 3 1.5 2 1 3 2 2 2 3 2 1.5 1
Others Lot 29 2 2 3 3 1.5 2 1 3 2 2 2 3 2 1.5 1
Annex 7 Page 3 of 3
DRC
MULTISECTOR INSTITUTIONAL SUPPORT PROJECT
LIST OF GOODS (Cont’d)
Studies and Planning Directorate (DEP) Other Sector AgenciesList of Goods UnitQty
Agriculture Rural Dvpt Energy Environ. Education Social Affairs Family Health TPAT-UH BTC OVD CFAV PNA
Computer Equipment
Office computers Nb 76 7 8 8 5 5 4 4 6 5 6 7 4 7
Laser printers Nb 32 3 3 3 2 2 2 2 3 2 2 3 2 3
Ink-jet printers Nb 44 4 5 5 3 3 2 2 3 3 4 4 2 4
Inverters Nb 76 7 8 8 5 5 4 4 6 5 6 7 4 7
Scanner Nb 15 1 1 1 2 1 1 1 1 1 1 1 1 2
CD-ROM Burner Nb 12 1 1 1 1 1 1 1 1 1 1 1 1
Digitizing table Nb 1 1
Plotter Nb 1 1
Internet connection Forf 13 1 1 1 1 1 1 1 1 1 1 1 1 1
Software Forf 1 1
Office Equipment
Heavyduty photocopiers Nb 13 1 1 1 1 1 1 1 1 1 1 1 1 1
Small photocopiers Nb 11 1 1 1 1 1 1 1 1 1 0 2
Fax Nb 11 1 1 1 1 1 1 1 1 1 1 1 0 0
Calculators Nb 135 5 5 5 0 10 10 10 10 10 10 10 20 30
Typewriters Nb 26 0 16 0 0 0 0 0 0 0 0 0 10
Binders Nb 17 1 1 1 1 1 1 1 1 1 2 2 0 4
Window airconditioners Nb 39 3 4 0 2 2 3 5 3 6 5 0 6
Split airconditioners Nb 13 1 1 1 0 1 1 1 1 2 2 0 2
Teaching & scientif. equipment Lot 6.3 0 0 0 0 0 0 0 0 0 0 0 5.3 1
Office Furniture
Desks Nb 76 4 4 3 5 5 4 4 10 5 7 10 0 15
Conference table Nb 15 1 1 1 1 1 1 1 2 1 1 2 0 2
Seat Nb 294 20 20 12 20 20 16 16 38 20 30 42 0 40
Cupboards Nb 81 4 4 3 5 5 4 4 10 5 8 12 0 17
Supplies & Consumables Lot 30 2 2 2 2 2 2 2 3 2 3 3 2 3
Annex 8 Page1 of 3
DRC
MULTISECTOR INSTITUTIONAL SUPPORT PROJECT
LIST OF TRAINING COURSES
Session Total Min. Econ. Fin & Budg Ministry of Planning & Reconstruction Minist of Indust, Trade & SMAETRAINING (MACROECONOMY AND PRIVATE SECTOR)Nb Dur Part Treas. Dep Oged BCC DPB DI DCS Cosep UCP Csmep Anapi Din Cepi Pasp Cdef Cfe Idef
Local Workshops and Seminars 673 55 57 83 47 60 43 36 10 27 17 27 47 33 25 23 42 41
Functions of treasury and production of ETOFE 1 5 27 18 4 0 5 0 0 0 0 0 0 0 0 0 0 0 0 0Macro-economic analysis and management of public finance 1 5 20 6 4 4 4 2 0 0 0 0 0 0 0 0 0 0 0 0
Negotiation Techniques (convention, contract, accords..) 1 5 20 4 4 4 4 1 0 0 1 1 1 0 0 0 0 0 0 0
Workshop on HIPC mechanism 1 3 30 2 2 21 5 0 0 0 0 0 0 0 0 0 0 0 0 0
Seminar on new approach to debt 1 5 26 0 4 10 12 0 0 0 0 0 0 0 0 0 0 0 0 0Training of SYGADE management software 1 15 30 0 2 25 3 0 0 0 0 0 0 0 0 0 0 0 0 0
Tools for public investment programmes 1 5 19 0 0 0 0 8 2 4 1 3 1 0 0 0 0 0 0 0
Prospective analysis and strategic planning 1 5 18 0 1 0 1 8 2 2 1 2 1 0 0 0 0 0 0 0Planning and management of project cycle 2 5 41 0 1 1 2 4 6 4 1 3 3 4 4 3 2 1 1 1
Budget of projects and preparation of PIP 1 5 20 2 2 0 2 6 2 4 1 1 0 0 0 0 0 0 0 0
Preparation of feasibility studies 2 5 36 2 4 2 2 4 3 2 1 2 1 4 2 2 2 1 1 1
Preparation of TOR and Financing Request 2 5 45 1 2 2 2 4 2 2 1 3 2 4 3 4 2 4 3 4Appraisal, monitoring and control of projects 1 10 30 1 2 1 1 2 4 2 1 2 2 2 2 2 2 2 1 1
Mechanisms for mobilization of external financing 1 10 20 2 2 1 1 2 3 2 1 1 1 1 1 1 1 0 0 0
Workshops to update principal indicators of the socio-economicinfrastructures sector 1 5 17 0 1 0 1 2 9 2 1 1 0 0 0 0 0 0 0 0Project management and contract award 1 5 20 0 0 0 0 0 0 0 0 0 0 0 2 3 2 3 6 4
Techniques for savings mobilization and management of micro-financeactivities 1 10 21 0 0 0 0 0 0 0 0 0 0 2 3 2 2 6 6
Notions of accounting, marketing and management of SMAE 1 10 23 0 0 0 0 0 0 0 0 0 0 2 4 4 3 2 4 4
Knowledge of the regulatory environment of national enterprises 1 5 20 0 0 0 0 0 0 0 0 0 0 0 4 2 2 4 4 4
Management of organizations for promotion of women’sentrepreneurship 1 5 20 0 0 0 0 0 0 0 0 0 0 0 2 2 2 2 6 6
Training in computer processing (Windows & MS Office, Internet) 2 30 154 16 20 10 0 16 10 12 0 7 4 7 20 6 4 2 10 10Deepening the language skills (English) 1 80 16 1 2 2 2 1 0 0 0 1 1 3 1 1 1 0 0 0
Short Courses Outside DRC 20 0 5 5 2 2 3 1 0 1 1 0 0 0 0 0 0 0
Regional seminar on negotiation and debt management 1 15 2 0 1 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Regional seminar on macro-economic management 1 15 4 0 1 0 0 0 0 1 0 1 1 0 0 0 0 0 0 0
Regional seminar on public finance management 1 21 4 0 2 2 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Annex 8 Page2 of 3
Session Total Min. Econ. Fin & Budg Ministry of Planning & Reconstruction Minist of Indust, Trade & SMAETRAINING (MACROECONOMY AND PRIVATE SECTOR)Nb Dur Part Treas. Dep Oged BCC DPB DI DCS Cosep UCP Csmep Anapi Din Cepi Pasp Cdef Cfe Idef
Reg. training in computer science applied to planning 1 21 4 0 1 0 0 1 2 0 0 0 0 0 0 0 0 0 0 0
Training in Europe on specialized computer applications 1 21 4 0 0 2 2 0 0 0 0 0 0 0 0 0 0 0 0 0
Training in Europe on infrastructure planning & management 1 15 2 0 0 0 0 1 1 0 0 0 0 0 0 0 0 0 0 0
Study Tours 21 1 5 3 0 3 1 1 0 0 1 6 0 0 0 0 0 0
Debt management, Africa 1 15 4 0 2 2 0 0 0 0 0 0 0 0 0 0 0 0 0 0Macroeconomic management, Africa 1 10 4 1 1 0 0 1 0 0 0 0 1 0 0 0 0 0 0 0
Planning and programming of PI, Africa 1 10 5 0 1 0 0 2 1 1 0 0 0 0 0 0 0 0 0 0
Mobilization of external resources, Africa 2 8 2 0 1 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Promotion of private investments, Europe 2 8 3 0 0 0 0 0 0 0 0 0 0 3 0 0 0 0 0 0Export promotion, Europe 2 8 3 0 0 0 0 0 0 0 0 0 0 3 0 0 0 0 0 0
Grand Total 714 56 67 91 49 65 47 38 10 28 19 33 47 33 25 23 42 41
Annex 8 Page3 of 3
DRCMULTISECTOR INSTITUTIONAL SUPPORT PROJECT
LIST OF TRAINING (Contd.)
Session Total Studies and Planning Directorate Other Sector AgenciesTRAINING
Nb Dur PartS/TDEP
Agri-cult.
Dvptrural
Ener-gie
Enviro-nmt
EducationAff.
Soci.Famil. Santé
TPAT-UH
BTC OVD CFAV PNA
Local workshops and seminars 25 168 758 557 46 35 67 31 146 32 27 99 74 36 21 120 24
Identification and formulation of public projects 2 5 46 46 4 4 4 4 8 4 2 8 8 0 0 0 0
Sector planning and consistency with national budget andmacroeconomic framework
1 5 26 26 3 3 3 2 3 3 3 3 3 0 0 0 0
Collection, processing and publication of sector statistics 2 5 40 40 5 2 6 2 2 4 3 8 8 0 0 0 0
Methods of microeconomic analysis of project 1 10 23 23 4 2 4 0 2 2 2 3 4 0 0 0 0
Preparation of feasibility studies 1 3 24 24 4 2 6 1 1 1 1 4 4 0 0 0 0
Preparation of TOR and financing requests 2 5 48 40 4 3 8 2 8 2 2 7 4 2 2 2 2
Appraisal, monitoring and control of projects 1 5 25 25 3 2 4 1 4 2 1 4 4 0 0 0 0
Mechanisms for mobilization of external financing 1 5 21 21 2 2 3 2 3 2 2 3 2 0 0 0 0
Workshops to update principal indicators of the socio-economic infrastructures sector
1 5 21 21 1 0 6 0 2 0 0 4 8 0 0 0 0
Project management and contract award 1 10 34 24 2 2 6 1 4 2 1 3 3 6 2 0 2
Workshop to review health map 1 10 27 27 0 0 0 0 0 0 0 27 0 0 0 0 0
Planning of education and management the school map 1 10 25 25 0 0 0 0 25 0 0 0 0 0 0 0 0
Collection and control of schools statistics 1 5 40 40 0 0 0 0 40 0 0 0 0 0 0 0 0
Management of organizations and operational procedures 2 10 45 28 2 2 3 2 4 2 2 4 7 8 3 3 3
Evaluation of environmental impacts 1 15 16 13 2 1 2 4 0 0 0 1 3 0 0 0 3
Training of des Agents Voyers "Contonnage" 1 100 0 0 0 0 0 0 0 0 0 0 0 0 100 0
Training of trainers for roads (Ponts et Chaussées) 1 7 0 0 0 0 0 0 0 0 0 0 0 0 7 0
Computer training (Windows & MS Office, Internet) 2 30 150 102 10 10 12 10 20 8 8 20 4 12 14 8 14
Setting up and management of database system 2 30 40 32 0 0 0 0 20 0 0 0 12 8 0 0 0
Training abroad, study tours 30 23 2 1 5 4 2 1 0 3 5 3 1 0 3
Environmental development and protection of ecosystems 1 30 2 2 0 0 0 2 0 0 0 0 0 0 0 0 0
Training of sanitation technicians, Europe 1 30 2 0 0 0 0 0 0 0 0 0 0 0 0 0 2
Training in Europe on infrastructure planning and management1 15 4 4 0 0 2 0 0 0 0 0 2 0 0 0 0
Study tours in Africa 1 15 15 12 1 1 2 1 2 1 0 2 2 2 1 0 0
Study tours in Europe 1 15 7 5 1 0 1 1 0 0 0 1 1 1 0 0 1
Annex 9 Page 1 of 2
RDCMULTI-SECTOR INSTITUTIONAL SUPPORT PROJECT
PRESENTATION OF THE PROJECT EXECUTING AGENCY: BUREAU CENTRAL DECOORDINATION (BCECO)
1. Legal and intuitional framework
1.1 At the Government’s request and following the evaluation by the Fund, Bureau Centralde Coordination des projects (BCECO) is to be designated as project executing agency.BCECO is a public organization with administrative and financial autonomy, established bydecree 039/2001 of 8 August 2001 and placed under the supervision of the Ministry of theEconomy, Finance and the Budget. It is responsible for managing projects financed by variousdonors under the PIR. Since its inception, BCECO has been financial executing agency forprojects and acquisitions and manages two grant lines, namely a Canadian and Belgian trustfund for an initial amount of 5 million that has been increased to 10 million USD, to financethe Stabilization and Economic Revival (PSRE), and an IDA grant of 50 millions USD tofinance the Emergency Rapid Rehabilitation Project (PURR). It handled the PMURRpreparatory documents. BCECO is supervised by the Steering Committee made up of adelegate of the Ministry of Finance, a delegate of the ministry of Planning and two delegatesfrom the Office of the President of the Republic. It is the administrative and supervisory organthat oversees the implementation and management of projects entrusted to BCECO.
1.2 The PMURR activities, including those under the Multi-sector Emergency Project forRehabilitation of Socio-economic Infrastructure (PMURIS) and the Multi-sector Institutionalsupport Project are coordinated by a Steering Committee made up of the ministries linked withPMURR. It is responsible for coordination and monitoring as well as setting up donorcoordination mechanisms (Donor coordination committee). It is chaired by the Minister ofPlanning and Reconstruction (MPR), with the Minister of Finance as Vice- Chairman. The CPis assisted by the Programme Coordination Unit (UCP), set up within the MPR, in theInfrastructure Department. UCP is headed by a national Project manager appointed by theGovernment. This person runs the CP secretariat and coordinates the technical aspects of thesector agencies involved in PMURR through a Technical Coordination Committee (CTC),made up of heads of the various ministries concerned and the enterprises and organizationsinvolved in the programme, such as BCECO. This Committee (CTC) is chaired by the ProjectHead. Within PMURR, BCECO serves as a financial executing agency and procurement agent(See Annex 6). For these purposes it liaises with the technical ministries, which coordinate thedevelopment programmes set up by or para-statal enterprises and organizations that identifyand prepare investment projects in their sector of activity.
1.3 For the implementation of the project, the management enterprises and institutionsprepare the technical documents and TD and transmit them to BCECO (UEP) which, followinganalysis, invites tenders and analyzes bids in collaboration with the study firms, enterprises andinstitutions responsible for implementing the projects.
1.4 Organization and Management of BCECO: The BCECO organization chart ispresented in Annex 3. A Deputy and three departments back up the Managing Director. Thedepartments are: Technical; Procurement; Administrative and Financial, and a ManagementControl Unit. The accounts are well kept and the reports prepared on schedule. BCECO has ateam of professionals, which, for the PMURR implementation, will be backed up through
Annex 9 Page 2 of 2
recruitment on IDA financing, of high-level specialists in management and contract award. Itwill be strengthened with Fund financing, so as to play its role in the present project.
1.5 BCECO Procedurse: BCECO has procedure manuals for: (i) organization andmanagement, (ii) accounting and financial management (iii) and contract award. It operates inline with World Bank guidelines though fully capable to work in accordance with the specificprocedures of any other donor. As part of the present project, the procedure manuals will berevised to adapt them to the Fund requirements.
1.6 BCECO Resources and Logistics: BCECO derives its resources from funds madeavailable to it under grants and loan agreements with the donors. The Government contributesby supplying premises and granting tax and duty exemptions for works, goods and servicecontracts. The Government is providing the remuneration of the four members of the Steeringcommittee. BCECO has good computer equipment. The resources required for BCECOactivities under this project will be financed by the Fund.
1.7 Performance of BCECO: BCECO currently manages two grant lines and thus processedthe documents concerning PURR financed by IDA and the Stabilization and EconomicRehabilitation Project (PSRE) financed by Belgium and Canada. It is also prepared PMURRand will manage some of its components such as agriculture. The documents hitherto processedconcerned recruitment of consultants and sub-projects such as the Kinshasa-Matadi RoadRehabilitation in association with a foreign study firm. In addition, it participated in thecommunity development component by developing the PATU and WIKONG pilot sites andfinancing the rehabilitation of the KIYIMBI Bridge. Lastly, it handled many documentsconcerning procurement for the sector ministries. In preparing PMURR, it worked with thesector Ministries as well as the public and administrative entities involved, such asREGIDESO, OVD, Office des routes etc.
2 Institutional Arrangements
Within the Executing agency, the distinct units making up the Project implementationunit will manage the ADF-finance project. The PIU will conduct administrative, financial andtechnical management and report on its activities to the Managing Director of BCECO. ThePIU will be made up of: an engineer, who will head the Unit, a procurement Specialist, andAccountant and support staff. This staff will be recruited using the consultant’s contracts.Office equipment will also be procured. Most of these expenses are included in the cost of theBCECO contribution. The Procurement Specialist and the Accountant are required to evidencesound experience with Bank rules of procedure for procurement and financial management.The PIU will further be strengthened with experts from a works inspection and supervisionfirm who will be recruited on the basis of a short list. In order to ensure effective technologytransfer, each consultant’s position will be backed with a position for a Congolese consultingtrainer. The curriculum vitae of each consultant to be recruited will be submitted for the Fund’sprior clearance. The PIU will be provided adequate logistics and computer facilities to conductits activities. The sector enterprises and organizations concerned with the project will beresponsible for preparing the detailed technical studies and tender documents that willsubsequently be transmitted to the BCECO, which will organize the tender invitations. Theabove entities participate in bid analysis and monitoring through the BCECO SteeringCommittee.
Annex 10 Page1 of 2
RDCMULTI-SECTOR INSTITUTIONAL SUPPORT PROJECT
PRESENTATION OF DT, BCC AND OGEDEP
Direction du Trésor (DT)
The DT, by virtue of its organization and the financial regulations governing it, covers twoareas, namely: (i) application of the State Budget; and (ii) maintaining public finance balance throughTreasury operations. Concretely, the principal role of Treasury is to manage (authorize payment) ofpublic expenditure and produce statistics (Cash flow plan and budget implementation reports). Thevarious duties of the Treasury are carried out by four divisions and study units: the Division in chargeof Resources, financial flows and relations with national and financial Institutions, the Division incharge of transmission between the Management, the Minister’s Office and the Central Bank, the PublicDebt Division and the payment order Division.
The Treasury Department has a total of about 128 staff whose tasks include (i) control offiduciary circulation; (ii) verification of accounting of organizations that receive State subsidies; (iii)monitoring through OGEDEP, of external debt management (amounts, payments,); (iv) orders to pay allState expenditure and; (v) formulation of cash flow plan and production of statistics on operationsconducted by the Central Bank.
Office de gestion de la dette publique (OGEDEP)
OGEDEP is a public enterprise set up in 1976 to meet the requirements of the multilateralfinance institutions, owing to the gap left by the Caisse Autonome d’Amortissement (sinking fund) thatexisted in the colonial period, and to end the multiplicity of decision, pay and public debt managementcenters. In accordance with the legal and regulatory texts governing public debt and OGEDEP’s scopeof action, it has a triple role: advising the Government on debt, managing the public debt andregulating recourse to public debt. More specifically, OGEDEP is required to: (i) examine requests forState guarantees submitted by borrowers, as well as requests for authorization of external borrowing;(ii) formulation and negotiation of on lending agreements; (iii) examination of the necessary projectsand financing agreements (project evaluation, participation in negotiations of loan agreements,monitoring of projects financed); (iv) renegotiation of debt (rescheduling, refinancing); (v) debtmanagement (negotiation, disbursement, schedules, payment of debt service, preparation of debtforecast); (vi) formulation of public debt statistics and their periodical updating; (vii) management ofdebt amortization funds; (viii) recovery of debts from enterprises in respect of guaranteed and/or on-lent loans; and (ix) regular monitoring of financing agreements in force.
To fulfill its mission, lOGEDEP, with a staff strength of 199 (66 directing staff and 56 assistingmanagerial staff, giving a total of 122 management staff, which is 61% of the staff) has five majordepartments: The General Directorate (23 persons), the Public Debt Department (21), StudiesDepartment (21), Administrative Department (109) and Financial Department (25). In carrying out itstasks, OGEDEP has a number of institutional, human and material problems. On the institutional plane,it faces the unsuitability of the texts governing it, and also its financial autonomy has been impededsince its accounts were leveled down in 1984, depriving it of means to carry out its activities.
Moreover, given the suspension of cooperation with the International Financial community,since 1990, and the attendant loss of recourse to external borrowing, its activities have declinedconsiderably and are now limited to management of old loan agreements. This is all worsened by theeconomic situation in the country, which has adversely affected the agency’s performance, since theState has suspended payment of the debt service. The enterprises that have benefited from on-lendinghave also stopped repayments and it has become impossible to monitor or inspect the projects financedon foreign funding, since a large part of the national territory has been occupied by the rebels. With allthese developments, OGEDEP has reduced its departments to two by merging the four other initial ones
Annex 10 Page2 of 2
two by two. The two new departments are the Technical Department and an Administrative andFinancial Department. These two are divided into sub-departments, which are in turn divided intounits. This restructuring should be followed up with a staff reduction bring the staff down from 199 to90 persons.
Banque Centrale du Congo (BCC)
BCC’s mission is primarily to maintain currency stability through a policy of credit andexchange that favors balanced development of DRC. Its activities fall in line with the Governmenteconomic policy. It carries out all the functions of a Central Bank and has all the prerogatives that aregenerally attached to that institution. In particular, it has full powers to: issue currency; (ii) control thebanking system and credit distribution by financial, banking and non-banking institutions; and (iii)manage the country’s gold and foreign exchange reserves. In that capacity, it accepts and makespayment on behalf of the State and designates the banks or financial institutions that are authorized toact on its behalf in the areas where it has no branches.
BCC has since 21 January 1999, had a Board of Directors and a Management committee. TheBoard is the supreme organ of this Bank. It lays down the policy and controls management. It has totallatitude to carry out any administrative act relating to the role and make-up of the bank. The BCCrestructuring is one of its priority tasks. It is made up of five members of Government, five members ofthe Management Committee and five independent experts. The five members of the managementCommittee are in charge of day-to-day management, in accordance with the guidelines of the Board ofDirectors. The Management Committee is chaired by the Governor of BCC.
In its current structure, BCC has 20 central departments, 8 regional departments, a mint, ahospital that is not yet operational and a representation office at Brussels. The departments aresubdivided into two sections; the former are bureaus and the latter are sections. It currently has staffstrength of 2598, and this staff is almost entirely managed manually by a Personnel Department thatencounters all manner of difficulties in handling the duties entrusted to it. The same applies to most ofthe departments, for example the Exchange Operations Monitoring Department has only threecomputers for six units that are required to prepare the following tables, for a country the size of DRC:Petroleum product imports, production and import of crude petroleum, level of petroleum productstocks, distribution and consumption of petroleum products by province, export income in the miningsector, monthly rough diamond exports, status of accounts opened abroad by public and mixedenterprises. The Central Bank of Congo has further undertaken a restructuring plan that will lead toreduction, not only of staff, whose numbers will fall from 2,598 at end December 1999 to 1860 in 2002,but also of the number of central departments, which will decrease from 20 to 17 and regionaldepartments, which will go from 8 to 4. The Government plans to adopt the regulatory texts for thisrestructuring in the very near future and communicate them to the Bank.
Annex 11
DETAILED PROJECT IMPLEMENTATION SCHEDULE2002 2003 2004 2005
N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A
Board presentationSignature of grant protocolGrant effectivenessLocal training in applied macroeconomic managementMacro-economic study tours and trainingDEP & sector seminars & workshopsDEP & sector courses & study toursMPR & MEFB computer trainingDEP & sector computer trainingLocal MIPME & private sector trainingANAPI promotion missionsConsultants
DPB technical assistantProject coordinatorLocal consultantsComputer expertStudy fundDSRP pilot studyPreparation of industrial projectsPrivate sector enterprise countTranslation of Investment CodeCreation of ANAPI Web site
Equipment: Tender invitationsDelivery of goods & start-upAnnual project auditFinal audit of accountsOperation
