DEMOCRATIC REPUBLIC OF CONGO POST-CONFLICT SOCIO … · Services: Consultancy services concerning: (i) the development of the strategy of assistance to women and girls associated

AFRICAN DEVELOPMENT FUND

Language : English Original : French

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DEMOCRATIC REPUBLIC OF CONGO

POST-CONFLICT SOCIO-ECONOMIC REINTEGRATION SUPPORT PROJECT (PARSEC)

APRAISAL REPORT

HUMAN DEVELOPMENT DEPARTMENT OSHD.1

JUNE 2007

TABLE OF CONTENTS

Pages

PROJECT INFORMATION SHEET, CURRENCY EQUIVALENTS, LIST OF TABLES, LIST OF ANNEXES, ACRONYMS AND ABBREVIATIONS, COMPARATIVE SOCIO-ECONOMIC INDICATORS, PROJECT MATRIX, EXECUTIVE SUMMARY i - x 1. PROJECT ORIGIN AND HISTORY ........................................................................................ 1

2. POST-CONFLICT REINTEGRATION IN CONGO................................................................. 2 2.1 General Context ……………………………………………………………………… …. .... 2 2.2 National Reintegration Policy .................................................................................................... 2 2.3 The Reintegration System .......................................................................................................... 3 2.4 Institutional Framework ............................................................................................................. 4 2.5 Financing of Reintegration Activities ........................................................................................ 5 2.6 Problems and Constraints of Post-Conflict Reintegration in DRC ............................................ 5

3. AREAS OF INTERVENTION OF THE PROJECT.................................................................. 6 3.1 Sensitization and Information..................................................................................................... 7 3.2 Better Knowledge of the Situation of Women Ex-Combatants or those Affiliated to Armed Forces and Groups ................................................………………7 3.3 Vocational Training and Promotion of Self-Employment ......................................................... 8

4. THE PROJECT…………………………………………………………….….......................... 8 4.1 Project Design and Rationale ..................................................................................................... 8 4.2 Project Area and Beneficiaries ................................................................................................... 9 4.3 Strategic Context of the Project................................................................................................ 10 4.4 Project Objective ...................................................................................................................... 11 4.5 Project Description ................................................................................................................... 11 4.6 Production, Market and Prices…………. ................................................................................ 15 4.7 Environmental Impact .............................................................................................................. 15 4.8 Project Costs ......................................................................................................... 16 4.9 Financing Sources and Expenditure Category.......................................................................... 16

5. PROJECT IMPLEMENTATION ............................................................................................ 18 5.1 Executing Agency .................................................................................................................... 18 5.2 Institutional Arrangements ....................................................................................................... 19 5.3 Implementation and Supervision Schedules ............................................................................. 21 5.4 Procurement Arrangements for Goods and Services................................................................ 21 5.5 Disbursement Arrangements .................................................................................................... 25 5.6 Monitoring and Evaluation....................................................................................................... 25 5.7 Financial Reporting and Auditing ............................................................................................ 26 5.8 Coordination of Assistance....................................................................................................... 26

6. PROJECT SUSTAINABILITY AND RISKS ......................................................................... 27 6.1 Recurrent Costs ....................................................................................................................... 27 6.2 Project Sustainability................................................................................................................ 27 6.3 Key Risks and Mitigating Measures ........................................................................................ 28

7. PROJECT BENEFITS ............................................................................................................. 29 7.1 Economic Impact Analysis....................................................................................................... 29 7.2 Social Impact Analysis ............................................................................................................. 29 7.3 Impact on Women .................................................................................................................... 30 8. CONCLUSIONS AND RECOMMENDATIONS................................................................... 30 8.1 Conclusions………………………. ..…………………………………………………………30 8.2 Recommendations and Grant Conditions ................................................................................ 30 This appraisal report has been prepared by Mr. A. EYEGHE, Socio-Economist OSHD.1 (Project Officer), Ms G. NZAU-MUTETA, Socio-economist OSHD.1, and G. GEISLER, Gender Expert OSHD.0, and Mr. A. MAGASSOUBA, Procurement Specialist, OSHD.0, following an appraisal mission to the Democratic Republic of Congo from 31 March to 17 April 2007. All questions should be referred to the authors or to Mr. E. J. PORGO, Acting Division Manager OSHD.1 (Ext. 2173) and Mr. T. HURLEY, Director OSHD (Ext.2046).

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AFRICAN DEVELOPMENT FUND

HEADQUARTERS: TEMPORARY RELOCATION AGENCY 01 B.P. 1387 Abidjan 01 B.P. 323, 1002 Tunis-Belvédère Côte d’Ivoire Tunisie Tel. : (225) 20 20 44 44 Tel : (216) 71 33 35 11 Fax: (225) 20 20 40 99 Fax: (216) 71 35 19 33

PROJECT INFORMATION SHEET

Date : April 2007 The information given below is intended to provide some guidance to prospective suppliers, contractors and consultants and all persons interested in the procurement of goods and services for projects approved by the Board of Directors of the Bank Group. More detailed information should be obtained from the Executing Agency of the Donee. 1. COUNTRY : Democratic Republic of Congo 2. PROJECT NAME : Post-conflict Socio-economic Reintegration

Support Project 3. LOCATION : Provinces of Katanga, Maniema, North

Kivu, Orientale, and South Kivu. 4. BENEFICIARY : Government of the Democratic Republic of

Congo 5. EXECUTING AGENCY : Cellule d’exécution du programme (CEP)

Ministère de la Défense nationale, de la Démobilisation et des Anciens combattants Kinshasa - Ngaliema

Tel, : 243 816 858 101 Fax : 1 (775) 667 30 44 6. PROJECT DESCRIPTION :

The sector goal of the project is to contribute to peace-building and to promote sustainable development in DRC. The specific objective of the project is to foster the redeployment of ex-combatants through vocational training and self-employment in agricultural activities. The project comprises the following two components: (i) strengthening of sensitization and redeployment opportunities; and (ii) support to the management of the project.

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7. TOTAL PROJECT COST : Total cost : UA16.66 million 8. FINANCING SOURCES AND AMOUNTS OF THE PROJECT ADF Grant : UA 15.00 million Government : UA 1.66 million 9. DATE OF APPROVAL : July 2007 10. ESTIMATED START-UP DATE /DURATION : September 2007/18 months 11. PROCUREMENT OF WORKS, GOODS AND SERVICES : ADF-financed goods and services will be procured in accordance with the rules of procedure of the Bank Group as follows: Goods: The computer and office automation equipment of the PIU, of the Ministry of Agriculture, and the Ministry of the Environment and the Ministry of Women's Affairs will be procured through local shopping. This procedure is chosen on account of the low amount envisaged and the existence on the national market of a sufficient number of suppliers to ensure competition. Services: Consultancy services concerning: (i) the development of the strategy of assistance to women and girls associated with armed forces and groups; and (ii) the preparation of the completion report will be procured on the basis of a short-list using the method based on the technical evaluation of bids with price consideration. Consultancy services for the auditing of project accounts and temporary staff for the sensitization of the population will be procured on the basis of a short-list using the procedure of comparability of technical bids and determination of the lowest evaluated cost bid. The services of local radio stations and the national television for broadcasting sensitization and information messages as well as those concerning the use of community leaders or the publication of posters, banners or flyers will be procured on the basis of direct negotiation. The services of executing partners for the training of ex-combatants, already identified during the project appraisal mission will be also be procured on the basis of direct negotiation. Operation: The purchase of office supplies, fuel and the maintenance costs of vehicles as well as field monitoring of project activities will be procured through local shopping, Miscellaneous: This expenditure category concerns payment of the safety net to ex-combatants. The service provider is already under contract with the program. The budgeted amount represents that of the safety net to be paid and the remuneration of the service provider.

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CURRENCY EQUIVALENTS (April 2007)

Currency unit = Congo Franc (CDF) UA 1 = CDF 665.214 UA 1 = USD 1.49088 USD1 = CDF 446.189

WEIGHTS AND MEASURES Metric system

FISCAL YEAR 1 January to 31 December

LIST OF TABLES Number Title Page • Table 2.1 : Financing sources of the PNDDR reintegration activities 5 • Table 4.1 : Breakdown by province of ex-combatants to be reintegrated 10 • Table 4.2 : Project cost by component 16 • Table 4.3 : Project cost by expenditure category 16 • Table 4.4 : Project cost by financing source 17 • Table 4.5 : Project cost by component and by financing source 17 • Table 4.6.a : Project cost by expenditure category and by financing source 17 • Table 4.6.b : Project cost by component, by expenditure category and

by financing source 17 • Table 4.7 : Expenditure schedule by component 18 • Table 4.8 : Expenditure schedule by expenditure category 18 • Table 4.9 : Expenditure schedule by financing source 18 • Table 5.1 : Schedule of activities 21 • Table 5.2 : Project supervision schedule 21 • Table 5.3 : Summary of procurement arrangements 22 • Table 5.4 : Other procurement methods 22

LIST OF ANNEXES Number Title Number of pages • Annex 1 : Administrative map of Congo and project area 1 • Annex 2 : Organization chart of the programme implementation unit 1 • Annex 3 : Project preparation stages 1 • Annex 4 : Table of contents of the PNDDR operations Manual 1 • Annex 5 : Implementation schedule of activities 1 • Annex 6 : Provisional list of goods and services 1 • Annex 7 : Summary of Environmental and Social Management Plan 2 • Annex 8 : List of Active Operations of the Bank Group in DRC 2 • Annex 9 : Summary of Project Costs 2

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ACRONYMS AND ABBREVIATIONS ADB : African Development Bank ADF : African Development Fund BCECO : Bureau central de coordination (Central coordination bureau) CAPR : Comité d’approbation des projets de réinsertion (Reintegration projects approval

Committee) CC : Counselling Centre CDF : Congo Franc CDFO : Regional office of the Bank in DRC CIDDR : Inter-ministerial disarmament, demobilization and reintegration Committee CONADER : National disarmament, demobilization and reintegration Commission DDR : Disarmament, demobilization and reintegration DRC : Democratic Republic of Congo EAFGA : Children associated with armed forces and groups ESMP : Environmental and social management Plan EU : European Union FAO : United Nations Food and Agriculture Organization FA-RDC : Armed Forces of the DRC GNP : Gross National Product GPRSP : Growth and Poverty Reduction Strategy Paper GTZ : German technical cooperation Agency HDI : Human Development Index HDW : Human Dignity in the World HIV/AIDS : Human Immunodeficiency Virus/Acquired Immunodeficiency Syndrome IDA : International Development Agency IFESH : International Foundation for Education and Self Help ILO : International Labour Office MDG : Millennium Development Goals MDRP : Multi-country Demobilization and Reintegration Programme MONUC : United Nations Observer Mission in Congo NGO : Non-Governmental Organisation ONEM : Office national de l’emploi (National Employment Board) PIU : Programme Implementation Unit PNDDR : National disarmament, demobilization and reintegration Programme SMI : Structure militaire d’intégration (Military integration structure) UA : Unit of Account UNDP : United Nations Development Programme UNICEF : United Nations International Children’s Emergency Fund UNIFEM : United Nations Development Fund for Women USD : American Dollar WB : World Bank

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DEMOCRATIC REPUBLIC OF CONGO: POST-CONFLICT SOCIO-ECONOMIC REINTEGRATION SUPPORT PROJECT

PROJECT MATRIX

HIERARCHY OF OBJECTIVES EXPECTED OUTCOMES SCOPE (Beneficiaries)

PERFORMANCE INDICATORS

(Sources and methods)

OBJECTIVE INDICATORS AND TARGET DATES

ASSUMPTIONS / RISKS

Sector goal Long- term outcomes (2015 horizon) Peace building and promotion of sustainable development in DRC.

Demobilized ex-combatants practice farming activities and no longer constitute an at- risk group.

Congolese population

• Number of ex-combatants reintegrated and maintained in civilian life

• Number of armed groups signatory to the peace agreements that have been dismantled.

100% ex-combatants demobilized in 2007/08 maintained in civilian life in 2015. 100% armed groups signatory to the peace agreements have been dissolved in 2015.

Assumptions: (i) development partners pursue their support to the PNDDR; and (ii) the climate of security is maintained in DRC to enable the implementation of activities on the ground.

Project objective Medium- term outcomes (2009 horizon) Foster the redeployment of ex-combatants through vocational training and self-employment in agricultural activities.

1.1 The demobilized ex-combatants practise farming activities in the project area and live on incomes generated from such activities.

The Congolese population, in particular, the demobilized ex-combatants and the women associated with armed forces and groups.

1.1.1 Number of demobilized ex-combatants reintegrated in farming, fishing and livestock activities. 1.1.2 Production of holdings of reintegrated ex-combatants.

1.1.1.1 At 31/12/08, 28500 ex-combatants (of which at least 1000 women) practise farming, fishing and livestock activities in the project area. 1.1.2.1 At 31/12/08, the 28500 ex-combatants : (i) have at least 30 000 ha of land under cultivation per year, (ii) produce at least 5000000 litres of palm oil per year and 7000 t of fish and (iii) have an animal population of approximately 700 000 head of poultry and cattle.

Risk: Land disputes may arise between reintegrated ex-combatants and host populations. Mitigating measure: Sensitization campaigns with the participation of community leaders will mitigate this risk.

Risk: The country’s stability may be threatened by other armed groups. This situation may hinder the implementation of the project. Mitigating measure: This risk is mitigated by the training of mixed brigades and their deploy-ment throughout the territory, the presence of MONUC and the signature of the stability and security Pact by countries of the Great Lakes sub-region.

Project activities Short- term outcomes (2007/2008 horizon) 1. Organization of sensitization and information campaigns on the PNDDR and on violence against women and war traumas.

1,1 The inhabitants are sensitized to the PNDDR and better understand issues related to gender, violence against women, HIV/AIDS, environmental protection.

1,2 Activities concerning the reintegration of women ex-combatants are more diversified.

• The Congolese population, more particularly the population of the project area.

• Demobilized ex-combatants, in particular the 1000 women.

1.1.1 Number of sensitization and information campaigns organized 1.1.2 Number of persons sensitized and informed

1.2.1 Number of reintegration activities chosen by women compared to the overall number of activities envisaged in the PNDDR.

1.1.1.1 80 talks organized, 78 radio and TV messages broadcast to foster harmony between the ex-combatants and the host communities and to improve he behaviour of the populations, 1.1.2.1Approximately 5 million persons are sensitized of which at least 51% women.

1.2.1.1 The 1000 women who are direct project beneficiaries are represented in all the activities, as against half at present.

2, Payment of the safety net (outgoing and cross-over bonuses) to demobilized ex-combatants.

2,1 Demobilized ex-combatants have means of subsistence

• Demobilized ex-combatants • Families of demobilized ex-

combatants

2.1.1 Actual payment of allowances

2.1.1.1 At 31/12/08, the UA 4,9 million envisaged has been received by the 17 000 beneficiaries and has contributed to the improvement of their living conditions.

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HIERARCHY OF OBJECTIVES EXPECTED OUTCOMES SCOPE (Beneficiaries)

PERFORMANCE INDICATORS

(Sources and methods)

OBJECTIVE INDICATORS AND TARGET DATES

ASSUMPTIONS / RISKS

3, Organization of vocational training sessions.

3 Demobilized ex-combatants have acquired the knowledge required to carry out an agricultural activity

• The 28500 ex-combatants (including 1000 women)

3.1.1 Number of ex-combatants having completed training

3.1.1.1 At 31/12/2008, 28500 ex-combatants (including 1000 women) have completed training and are using the knowledge acquired in food crop cultivation and in farming, fishing and livestock activities.

4, Grant of tool kits.

4,1 The tool kits enable the ex-combatants to carry out agricultural activities.

• The 28500 ex-combatants (including 1000 women)

4.1.1 Number of kits provided.

4.1.1.1 At 31/12/2008, the 28500 kits provided to ex-combatants are actually used for agricultural production activities in the project area.

5, Development of a strategy of assistance to the women and girls associated with armed forces and groups.

5,1 The status and number of women associated with armed forces and groups are known and a strategy of assistance to these women is defined.

• All the women associated with armed forces and group.

5.1.1 Existence of the strategy of assistance to the women associated with armed forces and groups (FAFGA).

5.1.1.1 In March 2008, implementation strategy by the Government and donors.

6, Management of the project.

7,1 Project activities are managed in a transparent effective and efficient manner.

• Ministry of Defence • PIU

7.1.1 Number of quarterly status reports transmitted to the Bank on schedule. 7.1.2 Number of annual audit reports transmitted to the Bank on schedule.

7.1.1.1 At the close of the project, 100% of the 6 reports envisaged have been received and have enabled monitoring of the project. 7.1.2.1 At the close of the project, 2 reports have been received and the opinion of the auditors is positive.

Financial resources : GVT : UA 1.66 million ADF : UA 15.00 million TOTAL : UA 16.66 million

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EXECUTIVE SUMMARY 1. Project Origin and History 1.1 Over the past few years, the Democratic Republic of Congo (DRC) has experienced a long period of national and regional conflicts, resulting in the destruction of the country’s economic fabric, the degradation of its public finances, and the massive recruitment of children into armed forces and groups. Despite its immense mining and energy resources and vast arable lands, the country is today among the poorest in the world with more than 70% of the population living below the poverty line and a human development index (HDI) of 0.391 placing it in 2004 in the 167th position among174 countries. 1.2 Cease-fire and peace agreements were signed between the belligerents in 1999 in Lusaka (Zambia), in 2002 at Sun City (South Africa) and in 2003 in Dar Es Salâam, and in 2006 and 2007 the country organized general elections, which ushered in greater stability, after a long political transition period. Following the signature of the various cease-fire and peace agreements, the country in 2004 implemented a national disarmament, demobilization and reintegration Program (PNDDR), with the support of the multi-country demobilization and rehabilitation Program (MDRP). The PNDDR is targeting 300 000 combatants of the armed forces and groups signatories to the peace agreements (including approximately 3% women), among which 150 000 must be integrated in the restructured national army and 150 000 (including 30 000 children) must be demobilized and reintegrated into civilian life. It also aims to pacify the country and to guarantee its stability, for a sustainable revival of economic activities. This project exclusively targets the ex-combatants to be demobilized and reintegrated into civilian life. 1.3 The initial budget mobilized by the country for the reintegration activities of the PNDDR, whose completion date was initially fixed at 31 December 2006, was USD 200 million, from an IDA/ World Bank grant of an amount of USD100 million and a contribution of an equivalent amount from the regional trust fund of the MDRP. At 31 December 2006, approximately 180 000 combatants had gone through the process, among whom 110 000 (including 2500 women) chose demobilization. The program also enabled the return to their families of 30 000 child-soldiers (including 4650 girls) who are being supervised by child welfare agencies and resumed their schooling. 1.4 The budget available is insufficient to complete the program and to achieve its goals. The Government thus postponed to 31 December 2008, the date of completion of the program and contacted the development partners of which the Bank Group, for the mobilization of the additional financial resources for the PNDDR reintegration activities. The mobilized amount stands at USD 74.5 million and will come from additional financing by the World Bank (USD 50 million), an ADF grant (UA 15 million or USD 22 million) and from the Government (UA1.66 million or USD 2.5 million representing the national counterpart funds of the ADF grant). 1.5 The post-conflict socio-economic reintegration support project represents the contribution of the Bank Group to the PNDDR. It will contribute to the pacification of the country, stabilization in the Great Lakes and the return of displaced persons. The project is in conformity with the priorities of the growth and poverty reduction strategy paper (GPRSP 2006-2008) of the Government, and with those of the Bank Group’s assistance strategy paper for DRC (2005-2007 RBCSP). It is also in conformity with the Bank Group’s intervention

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principles as regards post-conflict assistance and with the Bank Group’s strategy of assistance to fragile States. Lastly, the project will contribute to the improvement of the country’s social indicators within the framework of the Millennium Development Goals (MDG), in particular with regard to gender, the environment and HIV/AIDS. 2. Purpose of the Grant The ADF grant of an amount of UA15 million, represents 90% of the total project cost. It will cover 100% of the foreign exchange cost of the project and 43.35 % of the cost in local currency. 3. Project Objective The sector goal of the project is to contribute to peace-building and to promote sustainable development in DRC. Its specific objective is to support the redeployment of ex-combatants through vocational training and self-employment in agricultural activities in the Provinces of Katanga, Maniema, North Kivu, Orientale, and South Kivu. 4. Project Description The project comprises the following two components: (i) strengthening of sensitization and redeployment opportunities; and (ii) support to the management of the project. 5. Project Cost The total cost of the project, net of taxes and customs duties is estimated at UA 16.66 million, comprising UA13.72 million in foreign exchange and UA 2.94 million in local currency. 6. Financing Sources The project will be financed jointly by the ADF (grant) and the Congolese Government. The ADF contribution (UA15 million) represents 90% of the total project cost of which 100% of the cost in foreign currency and 43.35 % of the cost in local currency in all the expenditure categories except goods. The contribution of the Government (UA 1.66 million) representing 10% of the total project cost, will be used to cover local currency expenditure and concerns the following expenditure categories: Goods, Services, and Operation. 7. Project Implementation The project will be implemented over a period of 18 months by a Program Implementation Unit (PIU) placed under the supervision of the Ministry of National Defence, Demobilization and Ex-servicemen. This PIU is also charged with the management of the interventions of the other partners concerning PNDDR reintegration activities. The PIU head office is in Kinshasa and there are field offices in the hinterland. The project implementation period takes into account the schedule of PNDDR reintegration activities envisaged to end in December 2008.

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8. Conclusion and Recommendation Conclusion: The project will contribute to the pacification and stability of DRC, thanks to the redeployment of 28 500 ex-combatants including 1000 women as economic actors in the fields of food and market-gardening, agriculture, artisanal fishing and stock breeding. It will also contribute to the reduction of the state of fragility of the country as well as to the improvement of the level of its socio-economic indicators. The project is in conformity with the priorities of the GPRSP 2006-2008 of the Government and with the Bank’s assistance strategy paper for DRC for the period 2005-2007. Recommendation: It is recommended that a grant of an amount not exceeding UA 15 million be awarded to the DRC to enable it to finance and implement the post-conflict socio-economic reintegration support project (PARSEC) as described in this appraisal report.

1. PROJECT ORIGIN AND HISTORY 1.1 The Democratic Republic of Congo (DRC) has over the past ten years witnessed a series of crises and wars, which have claimed approximately three million lives and had devastating effects on the economy’s production capacities and the living conditions of the population. The peace agreements which put an end to the fighting were signed by the belligerents successively in 1999, 2002 and 2003. The strengths of the armed forces and groups that were signatories to these peace agreements stood at 300 000 combatants and the Government in 2004 prepared a national disarmament, demobilization and reintegration Program (PNDDR) targeting these 300 000 people. The program aims at the reorganization of the army and the national police force, peace-building and the stability of the country, and the reallocation of the public resources to the priority sectors of development. The number of women in the armed forces and groups that were signatories to the peace agreements is estimated at approximately 3% and that of children, 10%. 1.2 The program envisages the integration of 150 000 combatants of the armed forces and groups signatories to the peace agreements into the armed forces of the DRC (FA-RDC) and the demobilization of 150 000 other combatants, for their reintegration into civilian life. The reintegration activities of the PNDDR are implemented by the Programme Implementation Unit (PIU) created for this purpose by the Government and supported by the Multi-country demobilization and rehabilitation Program (MDRP). The operation of the Bank exclusively concerns the reintegration activities of the PNDDR. 1.3 The initial budget mobilized in 2004 for the reintegration activities of the PNDDR was USD 200 million, from an IDA/World Bank grant of an amount of USD 100 million a contribution of an equivalent amount from the regional trust fund of the MDRP. This budget is insufficient to complete the program and to achieve the set goals. Additional financial resources are thus required to avoid an interruption of the activities. Accordingly, the Government postponed to 31 December 2008, the date of completion of the program which was initially fixed at 31 December 2006, and contacted the development partners of which the Bank Group for the mobilization of additional financial resources for the reintegration activities of the PNDDR. The mobilized amount stands at USD74.5 and will come from additional financing of the World Bank (USD 50 million), an ADF grant (UA15 million or USD 22 million), the subject of this project, and the Government (UA1.66 million or USD 2.5 million representing the national counterpart of the ADF grant). 1.4 This project represents the Bank Group’s contribution to the PNDDR. It supplements the interventions of the World Bank and other partners. The identification/preparation mission was conducted in December 2006 and the appraisal mission in April 2007. The project is in conformity with the priorities of the growth and poverty reduction strategy paper (GPRSP 2006-2008) of the Government, and with those of the Bank Group’s assistance strategy paper for DRC (CSP 2005-2007). It is also in conformity with the action principles of the Group of the Bank as regards post-conflict assistance. Moreover, the report takes into account the guiding principles and priority fields indicated in the Bank Group strategy of assistance to fragile States, in particular: (i) partnership based on collaboration and coordination between partners; (ii) adaptability and speed which are determining factors to avoid compromising the peace-building effort; and (iii) selective approach by providing vocational training to ex-combatants.

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2. POST-CONFLICT REINTEGRATION IN CONGO 2.1 General Context 2.1.1 The Democratic Republic of Congo is located at the centre of Africa and is bounded by 9 countries: the Central African Republic and Sudan on the North, Uganda, Rwanda, Burundi and Tanzania on the East, Zambia and Angola on the South, the Republic of Congo on the West. The DRC's recent history has been marked by long years of bad governance and conflicts, which have generated particularly high levels of unemployment and poverty in the country. The country is in a socio-economic situation not commensurate with its mining, energy and agricultural potentialities. The socio-economic indicators are among the lowest in the world. 2.1.2 The human development index level (HDI) was 0.391 in 2004, ranking the DRC as the 167th country among 174 in terms of HDI level. The poverty incidence in the country was 71.34% in 2005. The life expectancy at birth was 44.4 years in 2006 against an average of 51.4 years in Africa. The adult literacy rate stood at 67.2% in 2006 (of which only 54.1% for women) and the gross primary school enrolment ratio at 62 % in 2003 (of which only 54% for girls). In the health domain, the maternal mortality rate is among the highest in the world with 1289 deaths for 100 000 live births in 2001, and the infant mortality rate was 199.9 deaths for 1000 live births in 2006. The prevalence rate of HIV/AIDS was 4.2 % in 2003 for the 15 to 24 age bracket, and malaria causes between 200 000 and 500 000 deaths each year. Regarding food, national production does not meet the country's needs and the food importation capacity is limited by the inadequacy of resources. These statistics show that the Millennium Development Goals (MDGs) will not be achieved in DRC by 2015 unless greater efforts are made. 2.1.3 The situation revealed by the level of the socio-economic indicators is more pronounced among women and children, who are regarded as vulnerable groups, and it was exacerbated during the period of conflicts. For instance, the budget allocated to the Ministry for Women's Advancement represented only 0.8% of the national budget during the said period, considerably slowing down the country's efforts in this domain. Over the same period, the school system deteriorated significantly and was abandoned by pupils and teachers. The incursions of armed groups into villages led to countless cases of rape and forcible conscription of many women and children into the armed groups. According to available information, at the height of the fighting, the number of child-soldiers identified among the armed forces and groups was approximately 30 000 (including at least 15% girls), thus representing the highest concentration of child-soldiers in the world. In the rural areas where women are generally very active, the conflicts destroyed farms and herds were decimated, thus increasing the vulnerability of small farmers and notably women. 2.2 The National Reintegration Policy 2.2.1 The reintegration policy applied in DRC is a component of the national disarmament, demobilization and reintegration program (PNDDR). The general objective of the program is peace-building and national reconciliation, organization of the country's reconstruction, and ensuring the political stability of the country and the sub-region. The criteria for eligibility to the program are: (a) be of Congolese nationality; (b) belong to an armed group recognized by the Government and show evidence of membership of this group; (c) have served in the wars in DRC in an armed force or group between October 1998 and May 2003, and show evidence of membership of the armed force or group; and (d) not be

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prosecuted for genocide, war crimes or crimes against humanity. The major phases of the program are sensitization, the regrouping of the members of the armed forces and groups and the reintegration of demobilized ex-combatants. 2.2.2 Sensitization precedes and prepares all the other phases of the program, and continues throughout the duration of the latter. The sensitization campaigns target the members armed forces and groups and the civilian population. They provide information on the objectives and criteria of eligibility to the program. They also cover various themes (gender, environment, human rights, HIV/AIDS and malaria, children associated with the armed forces and groups (EAFGA), conflict prevention and management). 2.2.3 Regrouping is carried out in counselling centres (CC), where the combatants are taken after having been disarmed beforehand. In the CC, the identification of members of the armed forces and groups, the verification of their combatant status, as well as voluntary screening for HIV/AIDS are carried out. The information collected is entered in a data base and disseminated throughout the CC network. The identification is based on the iris of the eye, which guarantees a high degree of safety, and the system set up does not allow multiple recordings. The EAFGA and invalids are withdrawn from the process at this stage, and are catered for under specific projects and programs. Before leaving the CC, the members of the armed forces and groups make a choice between a military career and return to civilian life. Up to this phase, the process is conducted under the supervision of the United Nations Observer Mission in DRC (MONUC). 2.2.4 The reintegration phase consists in offering former stakeholders in conflicts alternative livelihoods to the use of violence and weapons. It thus aims at redeploying the ex-combatants as development agents. To that end, the program provides them a safety net and vocational training. The safety net is aid of a reasonable amount provided to the ex-combatant for a limited period. Its purpose is to meet his/her essential needs, pending gainful employment. The vocational training is designed to improve the occupational skills of ex-combatants. It includes the supply of a tool kit and is intended for self-employment. The areas of training chosen by the Government for the reintegration of ex-combatants are: agriculture, fishing, stock breeding, retail trade, artisanal breadmaking, artisanal soap production, joinery, iron working/welding, dressmaking/tailoring, and driving/auto mechanics. For the implementation of this phase, the PNDDR is supported by the MDRP, an international structure financed by the World Bank, which also acts as secretary, and other donors (Germany, Belgium, Canada, Denmark, Finland, France, Ireland, Italy, Norway, Netherlands, United Kingdom, Sweden, and European Union). 2.3 The Reintegration System 2.3.1 The peace agreements were signed by all the armed groups which fought in DRC between 1996 and 2003, and the reintegration activities are countrywide. At 31 December 2006, approximately 180 000 combatants out of the 300 000 targeted by the PNDDR had already gone through the process. Among these 180 000 combatants, 110 000 were demobilized (including approximately 2.27% women). The program also organized the return to their families of about 30 000 children associated with the armed forces and groups of which 15.5% girls. These demobilized child-soldiers are catered for by child welfare associations and organizations under specific projects including psychosocial support and resumption of schooling.

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2.3.2 For the 110 000 adult ex-combatants already demobilized, funding for vocational training and the acquisition of tool kits are available for only 65 000 of them. Approximately 62% of the 110 000 ex-combatants already demobilized, chose to be reintegrated in the agricultural sector. Available data on the ex-combatants' choices of reintegration activities show that the majority of young people are interested in services such as driving and auto mechanics, trade, or dressmaking/tailoring, whereas the older persons prefer agricultural activities (market gardening, food crops, small livestock breeding, artisanal fishing) and agree more easily to enter into partnerships. The data also show that the women’s choices seem stereotyped. In fact, women are present in less than half of the activities adopted by the program for the reintegration of ex-combatants. The large majority of women choose dressmaking/tailoring or retail trade. As regards education, the data available indicate that the level of the ex-combatants is highly varied. Indeed, 56% of demobilized persons have a primary school level of education or below, 34% have attained the secondary school level or undergone vocational training, and only 10% have a high school level or above. In terms of age, approximately 62% of the ex-combatants are aged 30 or below, 31% are between 31 and 50 years and 7% are over 50 years old. 2.3.3 The number of combatants who are yet to go through the process is estimated at 120 000. Approximately 80 000 of them will be demobilized. The total number of people who will be demobilized by the end of the process fixed at 31 December 2008, will thus stand at 190 000, including approximately 3% women. The violence which occurred in Kinshasa in March 2007 and the presence of armed men who perpetuate a climate of insecurity in the eastern part of the country show that there is an urgent need to implement the PNDDR. 2.4 The Institutional Framework 2.4.1 The institutional framework envisaged for post-conflict reintegration in DRC was defined in 2003 and takes into account the multi-sector nature of the DDR process. It involves several ministries, which justified the establishment of an inter-ministerial disarmament, demobilization and reintegration Committee (CIDDR). The role of the CIDDR is: (i) to formulate and direct Government policy on disarmament, demobilization and reintegration; (ii) coordinate the actions of the various Ministries and public bodies intervening in the PNDDR; and (iii) assess the Government's actions within the framework of the PNDDR and propose remedial measures. 2.4.2 The CIDDR is placed under the supervision of the President of the Republic, and is chaired by the Minister for national defence, demobilization and ex-servicemen. The other members are the Minister for social affairs and national solidarity, the Minister for humanitarian affairs, the Minister for human rights, the Minister of Labour, the Minister of Interior and security, the Minister of Foreign Affairs, the Minister for Women's Affairs, the Minister of Information, the Minister for the Budget, the Minister of Finance and the Minister of Youth and Sports. 2.4.3 Apart from the CIDDR, specific actions within the framework of the implementation of reintegration activities of the PNDDR are organized by various ministries, namely the Ministry for national Defence, demobilization and ex-servicemen, as concerns the disarmament and demobilization of ex-combatants as well as monitoring of the supervision of all reintegration activities, and the Ministry for the social affairs and national solidarity, for the psychological management of people in the counselling centres and the supply of food and upkeep items. The Ministry for women's Affairs also intervenes in the program on gender-related aspects.

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2.5 Financing of Reintegration Activities 2.5.1 The implementation of reintegration activities under the DDR program requires the continuous availability of financial resources, for the credibility of the process among the target group. In the DRC, the DDR program is intervening in a national context marked by the weakness of own resources of the State due to a thin economic fabric and insufficient tax collection. The reintegration activities are thus financed mainly by the partners, either through the PNDDR, or outside the PNDDR under specific projects or programs. Financing of reintegration activities through the PNDDR 2.5.2 The amount of the financing mobilized for the reintegration activities of the PNDDR at 31/12/2006 stood at USD 200 million which came in equal amounts from an IDA/World Bank grant and a contribution from the regional trust fund of the MDRP. The amount of the additional financing mobilized is USD 74.5 million. Table 2.1 below shows the situation of the financing mobilized for the reintegration activities of the PNDDR.

Table 2.1 Financing Sources of Reintegration Activities of the PNDDR

Financing source Amount (in USD million)

Period

Areas of intervention

IDA/World Bank 100 2004 – 2006 Countrywide MDRP (Regional trust fund) 100 2004 – 2006 Countrywide

1st Phase

Total 200 IDA/ World Bank 50 2007-2008 Countrywide ADB 22 2007-2008 5 provinces in the

East Government 2.5 2007-2008 5 provinces in the

East

2nd Phase

Total 74.5 Financing of reintegration activities outside the PNDDR 2.5.3 The reintegration activities undertaken outside the PNDDR are financed under specific projects or programs by NGOs or agencies of the United Nations system, with bilateral or multilateral financing and concern primarily child soldiers, invalid ex-combatants or those deemed unfit for military service, community development, or the financing of micro-projects. The total amount of the projects is estimated at USD 40 million. The activities are carried out mainly by UNDP, UNICEF, UNIFEM, the NGO Save the Children, and the Red Cross. 2.6 Problems and Constraints of Post-Conflict Reintegration in DRC 2.6.1 Post-conflict reintegration in DRC is faced with numerous problems and constraints which could hinder the proper implementation of the activities. These concern notably (i) non-consideration of ex-combatants' dependents; (ii) insufficient psychological and psychiatric follow-up of the ex-combatants; (iii) insufficient gender mainstreaming; and (iv) the expanse of the national territory.

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2.6.2 Non-consideration of ex-combatants' dependents: The PNDDR did not envisage a budget for the ex-combatants' dependents. This situation is a source of tension between certain ex-combatants who are reluctant to move to the places that they chose for their reintegration, and program officials. The financial resources of the program are insufficient to cover the transportation of ex-combatants’ dependents. An allocation was envisaged in the supplemental financing from the World Bank for the reintegration activities of the PNDDR, to contribute the resolution of this problem, the said allocation will not fill the bill. 2.6.3 Insufficient psychological and psychiatric follow-up of ex-combatants: The use of drugs and narcotics is very widespread within the armed groups, especially during periods of conflict. The prolonged use of these substances influences the behaviours of individuals. And, the demobilized ex-combatants do not benefit from any psychological and psychiatric follow-up. Some psychologists are posted to the counselling centres, but the program does not have a psychiatrist. The financial resources of the program are insufficient to cover the psychological and psychiatric follow-up of ex-combatants, and the program duration is insufficient for such follow-up. 2.6.4 Insufficient gender-mainstreaming: While the program document acknowledges that men and women were affected differently during the conflicts, the implementation of the program on the ground overlooks this differentiation. The program lacks the required means to determine the level of participation of women and girls in the conflicts, how they were affected by the conflicts, their exact number, their specific location and their assistance requirements. Generally, the estimated proportion of adult women and girls in the overall strength of the armed forces and groups is approximately 3% and this seems to be underestimated. Women suffered particularly on account of the fact that the leaders of armed groups, in declaring the strengths of their respective groups, gave preference to arms-bearing members. The weak number of women in the program partially explains the fact that they are not regarded as a distinct group therein.

2.6.5 Expanse of the national territory: DR Congo is a vast country of 2 344 932 km 2 all 11 provinces of which are concerned by post-conflict reintegration. In this regard, the expanse of the territory constitutes a major constraint, which is exacerbated by the disastrous state of the communication routes. This situation is likely to limit the frequency of monitoring missions to the field. The decentralization of the program and recourse to executing partners already present in the zones where reintegration activities are carried out or envisaged will help mitigate the negative effects of this situation. 3. AREAS OF INTERVENTION OF THE PROJECT The activities chosen for the reintegration of ex-combatants are: agriculture, fishing, stock breeding, retail trade, artisanal breadmaking, and artisanal production of soap, joinery, iron working/welding, dressmaking /tailoring and driving /auto mechanics. Taking into account the provisions of the CSP 2005-2007 of the Bank for the DRC and the interventions of the other partners, the areas of intervention of the project will consequently concern: (i) sensitization and information; (ii) better knowledge of the status of the ex-combatant women or those associated the armed groups; and (iii) vocational training and the promotion of self-employment in the agricultural sector (agriculture, livestock, fishing, processing of agricultural produce).

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3.1 Sensitization and Information 3.1.1 Sensitization is a key activity in a DDR-type program, of which it constitutes the backbone. It must be conducted throughout the program and must concern ex-combatants, the host communities and the civilian population. The success of the program will depend mainly on the quality of the sensitization and information activities. The main themes chosen within the framework of the PNDDR concern the objectives and criteria of eligibility to the program, gender- related aspects, the environment, human rights, HIV/AIDS, malaria, the children associated with armed forces and groups, conflict management, tolerance, humanitarian issues, healing of traumas, and responsible citizenship. 3.1.2 To ensure proper communication and reception of the messages, appropriate materials and equipment, sufficient and qualified personnel, and sufficient financial resources are required. The program uses talks, workshops, posters, on radio and television to convey messages to the target groups and to foster a harmonious integration of ex-combatants in the communities. The messages are welcomed by the target groups and contribute to the improvement of their social behaviour. However, the organization of sensitization and information campaigns of the program is slowed down by the insufficiency of the budget earmarked for this purpose. An increase in this budget will help revitalize the sensitization and information activities, and improve the effectiveness of the program. 3.2 Better Knowledge of the Situation of Women Ex-combatants or those

Associated with the Armed Forces and Groups 3.2.1 The women have not been very visible in the program since the beginning of its implementation, whereas their presence in the armed forces and groups was significant during the conflicts. Certain women joined the armed forces and groups willingly; others were abducted and conscripted into the forces. During the conflicts, some took an active part in the engagements, but others were useful as spies, messengers, nurses, ammunition and food porters, cooks, or soldiers’ partners. During the demobilization, whereas they met the criteria set by the program, not all were declared by their group leaders, who gave preference to arms-bearing members. Many women who did not carry weapons self-demobilized, and received no reintegration support. Some others who had carried weapons, and were recognized as combatants by their group leaders also preferred to self-demobilize and forfeit the benefits to which they were entitled on account of the stigma on the women having taken part in the engagements. Hence, a large number of women ex-combatants or those associated with the armed forces and groups do not enjoy the benefits provided by the program, and have without any assistance reintegrated into civilian life. Their location, their exact number, and their physiological and psychological requirements are not known. 3.2.2 The program attempted correcting this situation by initiating a study on the status of women and girl ex-combatants or those associated with the armed forces and groups. The study was not finalized owing to insufficiency of the budget allocated, and the program lacks adequate resources to complete it. The allocation of financial resources to the program will enable the finalization of the study and better knowledge of the situation of the women and girls associated with the armed forces and groups. The results of the study will be used as a basis for the development of an assistance strategy accompanied by an action plan for women and girls associated with the forces and armed groups. The implementation of this strategy will enable the Government and development partners to appropriately respond to the specific assistance requirements of the women and girls who were affected by the conflicts.

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3.3 Vocational Training and Promotion of Self-Employment 3.3.1 The program adopted the approach of reintegration through self-employment. The choice of this approach is justified by the insufficient capacities for absorption of ex-combatants by the public and private sectors of the country, but also by the weak level of the occupational skills of ex-combatants. 3.3.2 Training is provided for a maximum duration of six months by executing partners such as FAO, GTZ, ILO, CARITAS, US AID, and Human Dignity in the World (HDW) or International Foundation for Education and Self Help (IFESH). It enables the demobilized ex-combatants to learn a trade. The contents of the training take into account the fact that those to be trained are ex-combatants, whose mean level of education is low. It thus gives precedence to practical demonstrations. 3.3.3 As the transitional period during which the demobilized ex-combatants receive the safety net is limited to twelve months, the training must cover this period of time. However, certain ex-combatants complete their transitional period without having started their training, owing to the unavailability or lack of the resources required to finance the training and acquisition of kits. This situation affects the credibility of the program and certain ex-combatants may subsequently use the pretext of the lack of resources to justify their irregularity or their absence from the training venue. The availability of financial resources will enable better planning of training and acceleration of program implementation. 4. THE PROJECT 4.1 Project Design and Rationale 4.1.1 The project falls within the framework of national reconciliation and peace-building in DRC, and supplements the interventions of the other partners, including the World Bank, in this field. Accordingly, the project is in conformity with the growth and poverty reduction strategy paper prepared by the Government for the period 2006 to 2008. This strategy notably aims to consolidate peace, reduce vulnerability, and promote Community dynamics. Taking into account the weakness of the country's socio-economic indicator, the project will contribute to the efforts of the Government and other partners toward attaining the Millennium development goals. It will indeed enable the Government, thanks to the pacification of the country, to decrease military spending while increasing the budgets allocated to economic and social infrastructures, and positively impact the living conditions of the poor.

4.1.2 The project is in conformity with the Country Strategy Paper of the Bank for the DRC (2005-2007), which envisages contributing to the improvement of the socio-economic conditions of the poor through the revitalization of the agricultural and rural sector which occupies a majority of the Congolese population. It is also in conformity with the action principles of the Bank Group as regards post-conflict assistance and Bank Group areas of assistance to fragile States, which notably recommend: (i) the satisfaction of the needs of countries through a coordinated approach with the other partners, and (ii) ownership of the assistance programmes by beneficiary countries. The project is in conformity with these policy documents as the PNDDR was prepared by the Government and really has national ownership and the Bank intervention in the program was prepared in close coordination with the partners who are already present in the country. Within this framework, the project will enable the strengthening of security and stability in DRC and in the sub-region, by providing alternative livelihoods to the ex-combatants.

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4.1.3 The project was designed using a participatory approach. During the identification/preparation and appraisal missions, it was the subject of consultations with the Congolese authorities at the national and local levels, as well as with the ex-combatants, the host communities, civil society and the executing partners. It also was the subject of consultations with the PNDDR donors and representatives of the MDRP donors (World Bank, European Union, Belgium, France and Holland). The consultations made it possible to ensure that the activities chosen meet the target group's needs, that the project is complementary to the interventions of the other partners and that it is consistent with the objectives of the PNDDR. This participatory approach will be maintained throughout the implementation of the project. Lessons Learnt from Previous Interventions 4.1.4 The design of the project benefited from lessons learnt from previous Bank Group operations in DRC. Despite the recent creation within the Central coordination Office (BCECO) of a Project Implementation Unit of the Bank, the performance of the Bank's portfolio in DRC remains weak. The implementation of projects is marked by: (i) late start-up of activities, due to slowness in fulfilling effectiveness conditions; (ii) lengthy periods of preparation of procurement documents due to weak institutional capacities; and (iii) a weak disbursement rate. To avoid these difficulties, the grant conditions have been streamlined in this project, and the executing partners were identified during the appraisal mission. In addition, the PIU is supported by the same management and audit consulting firm used by the World Bank for its financing of the PNDDR. The Office of the Bank in DRC will also provide assistance to the project, notably in the preparation and follow-up of disbursement request files. 4.1.5 However, the project is intervening in a field where the Bank has limited experience. Over the past few years, the Bank has approved reintegration projects in Angola, the Republic of Congo and Burundi. These projects are in the launch phase and on account of their implementation time-frames not much can be learnt. However, one may note for all these projects: (i) a low skills level among beneficiaries, thus justifying the inclusion of vocational training in the projects; (ii) lack or weakness of the intervention capacities of State structures due to the post-conflict status of the countries, hence the use of NGOs; and (iii) weak local capacities in project implementation, also due to the post-conflict situation of the countries, requiring the use of technical assistance. In addition to these lessons, the current operation of the Bank, which forms part of a governmental program already in progress with other partners, including the World Bank, will benefit from the experience of this institution as regards DDR in Africa. Since 1992, the World Bank has indeed supported DDR programs in 17 African countries. It has financed activities for a total amount of approximately USD 500 million and has mobilized USD 400 million from the other partners. 4.2 Project Area and Beneficiaries Project Area 4.2.1 The project will intervene in the following five Provinces, located in the eastern part of the country: Orientale, North Kivu, South Kivu, Maniema, and Katanga. These provinces were chosen by mutual agreement with the national authorities and the other program donors. It is justified by the number of ex-combatants to be reintegrated and by the existence of the reintegration opportunities in the areas of intervention adopted for the project. The choice of

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these provinces also takes into account the level of the resources available for the project and the presence of the other program partners. The project area has a population estimated at 26.13 million inhabitants, that is, 45.4 % of the total population of the country. It was hard hit by the conflicts and currently shows poverty levels that are among the highest in DRC. Project Beneficiaries 4.2.2 The project beneficiaries are the adult ex-combatants (men, women and young people aged over 18 years) having chosen to reintegrate in agricultural activities, as child-soldiers are being catered for under specific projects. The total number of beneficiaries to be reintegrated by the project is estimated at 28500 persons including approximately 1000 women representing the remaining number of women to reintegrate in agricultural activities in the project area. This number includes (i) 11500 already demobilized ex-combatants. They chose the agricultural sector and have already received their safety nets. The program is on standby pending financing to start their training; and (ii) 17000 ex-combatants who will be demobilized thanks to the additional resources expected by the PNDDR. 4.2.3 Table 4.1 below shows the breakdown of the ex-combatants to be reintegrated, by province. They are more numerous in the province of North Kivu, followed by the provinces of Katanga, South Kivu, Orientale, and Maniema. The provinces of North Kivu and the South Kivu show the highest number of women.

Table 4.1 Breakdown of the Ex-Combatants to be Reintegrated by Province under the Project

No, ex-combatants to be reintegrated under the project Provinces Men Women Total

Katanga 7000 150 7150 Maniema 1200 100 1300 Nord Kivu 7500 300 7800 Orientale 5500 200 5700 Sud Kivu 6300 250 6550

Total 27500 1000 28500 4.3 Strategic Context of the Project 4.3.1 The choice of the agricultural sector is justified by the RBCSP 2005-2007 for the DRC of which pillar 1 envisages contribution to the improvement of the socio-economic conditions of the rural and semi-urban poor through the development of the agricultural sector and the rural sector. The targeting of the agricultural sector is also reinforced by the available data of the program. In fact, of the 65 000 already reintegrated ex-combatants 40 000 i.e. 62% have chosen the agricultural sector. 4.3.2 The project is coming within a favourable context both at the sub-regional level and at the national level. At the sub-regional level, it follows the signature in December 2006 in Nairobi of the Pact of stability, security and development of the countries of the Great Lakes sub-region. This Pact stipulates that each signatory country undertakes not to support any armed group in another signatory country. It is an advantage for the project given that the DRC has common borders with nine countries and the effective implementation of the Pact will reduce the risks of tension along the borders. The Pact was signed by the following countries: Angola, Burundi, Kenya, Uganda, Tanzania, Rwanda, Central African Republic, Angola, Sudan, and Namibia.

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4.3.3 At the national level, the project follows the adoption by the Government in July 2006 of the growth and poverty reduction strategy paper (DSCRP). It falls within the framework of this national strategy whose five pillars are: (i)promoting good governance and peace building by strengthening the institutions;(ii)consolidating macroeconomic stability and growth;(iii) improving access to social services and reducing vulnerability; (iv) control of HIV/AIDS and (v) support to community dynamics. The project will contribute notably to the implementation of pillars 1, 3, 4 and 5. It also fits into the context of the attainment of the Millennium Development Goals. 4.3.4 Moreover, the project is also in conformity with the Bank's assistance strategy paper for the DRC for 2005-2007. This strategy is based on the following two pillars: (i) improvement of the economic and social conditions of the rural and semi-urban poor, and (ii) promotion of good financial and economic governance in the public sector. The project falls within the framework of the first pillar which aims to develop the agricultural and rural sector in order to improve food safety, increase rural incomes and reduce extreme poverty. It is in conformity with the action principles of the Bank Group as regards post-conflict assistance as well as the Bank Group's strategy of assistance to fragile States. It is also in conformity with the sectoral policies of the Bank on education and the control of communicable diseases. The project supports the Government's efforts within the framework of the achievement of the Millennium development goals, as it will contribute to the improvement of the levels of the country's indicators concerning education and training, HIV/AIDS, the environment and gender. 4.4 Project Objective The sector goal of the project is to contribute to peace-building and promote sustainable development in DRC. Its specific objective is to support the redeployment of ex-combatants through vocational training and self-employment in agricultural activities in the provinces of Katanga, Maniema, North Kivu, Orientale, and South Kivu. 4.5 Project Description 4.5.1 The project comprises the following two components: (i) strengthening of sensitization and redeployment opportunities; and (ii) support to the management of the project. It will finance activities whose implementation will span 18 months and will fall under the following expenditure categories: A. Goods, B. Services, C. Operation, and D. Miscellaneous. The detailed activities of the project, by component, are described below. Component I: Strengthening sensitization and redeployment opportunities 4.5.2 This component aims to support and supplement the Government’s efforts as regards social and economic rehabilitation of demobilized ex-combatants. Within this framework, the project will contribute to: (i) the organization of information and sensitization campaigns, (ii) development of a strategy of assistance to the women associated with armed forces and groups, and (iii) provide means of subsistence and training to the ex-combatants.

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Sensitization and Information 4.5.3 The project will organize, with the support of the part-time staff, information and sensitization campaigns and will finance the expenses related to this activity in the intervention zone of the ADF operation. To that end, it will finance the services of the part-time staff at the rate of 300 staff/months, for the benefit of approximately 5 million people including at least 51% women. The campaigns will span the 18 months of project implementation and will be organized in the 19 cities and districts of the project area in the form of talks, workshops, posters, and radio and television messages. The project will finance the organization of 80 talks and workshops, which will be organized with the active participation of local community leaders. It will also finance the production of 10 000 posters, leaflets, flyers and streamers on the themes developed during the information and sensitization campaigns. Furthermore, it will finance the broadcast of the messages on radio and television, at the rate of one broadcast per week throughout the project, that is, approximately 78 broadcasts. 4.5.4 The campaigns will be on the following topics adopted in the PNDDR: benefits of the PNDDR, criteria of eligibility to the program, hosting and settlement of demobilized persons, violence against women, the issue of child-soldiers, prevention of HIV/AIDS and malaria, environmental protection, conflict prevention and resolution, community life, and the culture of peace. They will also emphasize messages intended to help the women ex-combatants to diversify their choices of reintegration activities, by popularizing and promoting the cases of women ex-combatants who have reintegrated successfully in activities traditionally exercised by men. 4.5.5 In addition, sketches and stage performances to convey messages against violence, including that perpetrated against women and children, the adverse effects of the plundering of public and private property, non-respect for civilian authority, and all other unpatriotic or unlawful behaviours will be organized. Indeed, during their stay among the armed forces and groups, the ex-combatants developed violent behaviours and were accustomed to obtaining everything through the use of force, under threat of weapons. These behaviours have persisted after their demobilization, and are manifested through acts of violence against women and children, and the rejection of civilian authority. The healing of these war traumas is not taken into account in the PNDDR, the duration of which is too short and the resources insufficient. The improvement of the civic behaviour of the ex-combatants will facilitate their return to civilian life. The activity will be carried out in the project area by theatre groups, which constitute an effective communication tool to convey messages on subjects deemed taboo or difficult for a speaker to mention before a crowd. Lastly, 10 theatre groups will perform approximately 80 sketches and stage performances throughout the project. Development of a strategy of assistance to women associated with the armed forces and groups 4.5.6 The project will finance the finalization of a national study on ex-combatant women and girls or those associated with the armed forces and groups. The study started in 2006 and was conducted by CONADER, the Ministry of Women's Affairs and UNIFEM, with financing from the European Union. Its purpose is to carry out an exhaustive identification of the women and girls that were engaged in or were victims of the conflicts which took place in DRC, in order to enable them to better benefit from the ongoing reintegration activities under the PNDDR and to access other assistance programs. The resources available enabled

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coverage of only five of the country's eleven provinces. The project will be able to extend the study to the remaining six provinces (North Kivu, South Kivu, Katanga, Kasaï Oriental, Kasaï Occidental, and Bandundu). It will be carried out by the Program Implementation Unit, the Ministry of Women's Affairs and UNIFEM for a duration of approximately 3 months and for an amount of UA 604 000. The consolidated results of the study will be used as a basis for the development of a national strategy of assistance to ex-combatant women and girls or those associated with armed forces and groups. The strategy will be accompanied by an action plan, and will help provide appropriate answers to the assistance needs of the women and girls who were affected by the conflicts, within the framework of future development projects. 4.5.7 The project will finance the expenses as follows: (i) services of two consultants for a total duration of 48 staff/days; and (ii) the organization in Kinshasa of a national workshop of 4 working days. The project will cover the travelling expenses and per diem of three participants per province of which the Head of the provincial service of Women's Affairs, one representative of a local NGO working in the field of protection of women's rights, and one representative of the women ex-combatants or those associated with armed forces and groups. The project will also finance, with the national counterpart fund resources, the expenses of hiring the hall, the various services (ushers, banners, coffee, and reproduction of documents) as well as the expenses of printing and distribution of the strategy document. The strategy will be implemented under the projects and programs to be financed by the Government and development partners. Provision of means of subsistence and vocational training 4.5.8 The project will pay to ex-combatants a safety net comprising: (i) immediate assistance of a total amount of USD 140 paid as a lump sum as they leave the counselling centres and composed of USD 30 dollars for essentials and USD 110 (outgoing bonus) for transportation to and settlement of the ex-combatant in the community of his choice; and (ii) a monthly allowance (cross-over bonus) of USD 25 paid for a 12- month non-renewable period, that is, USD 300. These amounts are the same as those which are applied to the PNDDR and were adopted for the project for purposes of harmonization. They were applied to the 110 000 ex-combatants already demobilized since the beginning of the program. The sums will be paid to the beneficiaries through CELPAY RDC, the company which signed with the PNDDR a contract covering the entire duration of the program. 4.5.9 The project will thus finance 28 500 ex-combatants. Among these 28500 beneficiaries, 11500 are already demobilized and have already received their full safety net. They are awaiting their economic reintegration (vocational training, kit and self-employment in an agricultural activity). The remaining 17 000 ex-combatants will be drawn from the members of the armed forces and groups which will be demobilized thanks to the supplemental financial resources expected by the PNDDR. The project will finance the safety net of these 17000 recipients for a 12- month period. 4.5.10 The project will also provide to the 28500 ex-combatants, vocational training of a maximum duration of six (6) months and a tool kit which will enable them, at the end of the training period, to carry out an agricultural activity. The principal agricultural activities adopted for the project are the pig farming, poultry layer farming, goat or sheep farming, the breeding of local hens or ducks, rabbit breeding, fish farming, bee-keeping, river fishing, lake fishing with the catamaran, food crops, market gardening, palm oil extraction with a mixer,

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artisanal manufacture of jams, and the passion fruit juice production. The vocational training will be carried out by executing partners (FAO, CARITAS, IFESH, and HDW), identified during the project appraisal mission. The latter have the following advantages: (i) presence in the project area; (ii) experience in the implementation of the same services under the PNDDR; and (iii) capacity to continue supervising the reintegrated ex-combatants after the end of the project. They will sign with the program implementation unit (PIU) contracts on the basis of direct negotiation. The 28 500 ex-combatants are distributed among the executing partners and the provinces as follows: (i) FAO: 5000 in Katanga, 2000 in North Kivu , 3700 in Orientale and 1000 in South Kivu; (ii) CARITAS: 2150 in Katanga, 1300 in Maniema, 2000 in Orientale and 2000 in South Kivu; (iii) IFESH: 2000 in North Kivu and 3550 in South Kivu; and (iv) HDW: 3800 in North Kivu. The missions as well as the experience of the selected executing partners are presented at section 5.2. 4.5.11 The course contents are standardized by the PNDDR and the principal modules concern techniques of farming, stock breeding and fishing, as well as the organization of associations and civic education. The training cost will be USD 400 per ex-combatant, including approximately USD 190 for the purchase of the kit. This fixed amount is that applied under the PNDDR since the inception of the program. The kits will be acquired by the executing partners charged with training and handed to the 28500 ex-combatants at the end of their training. They will notably include: (i) for stockbreeding activities: male and female animals, disease prevention, food and a bicycle; (ii) for fishing: fleets of net, a dugout, paddles and various accessories; and (iii) for food crop or truck farming: preliminary works on the land to be cultivated, seeds, various accessories, and a bicycle. The project will encourage the ex-combatants to group into co-operatives or associations to ensure the sustainability of their activities and to realize economies of scale. The project will support creation by the 28500 ex-combatants of approximately 2000 production units. Component II: Support to the management of the project 4.5.12 The project will be implemented by the implementation unit (PIU), which is attached to the Office of the Minister of national defence. It is in charge of the management of all reintegration activities of the PNDDR, and uses the buildings, furniture and equipment which had been acquired for CONADER. The operating expenses of the unit, including the hiring of buildings, supplies and various utilities and staff wages and allowances, will be borne by the World Bank financing of the PNDDR. 4.5.13 The project will finance, with the ADF resources: (i) the cost of the annual audits of project accounts (3 S/M), (ii) the cost of the services of a consultant to support the PIU in the preparation of the Recipient's completion report (1 S/M), and (iii) the monitoring of field activities. The monitoring of the activities will consist of missions to be conducted in each of the 5 provinces of the project area once per quarter, that is, 40 missions including the missions for the preparation of the Recipient's completion report. The mission teams consist of five persons representing the PIU (2 persons of which the reintegration Specialist and the gender Specialist), the Ministry of agriculture (1 person), the Ministry of women's affairs (1 person) and the Ministry of the Environment (1 person). 4.5.14 The Government will contribute to the costs of office supplies, fuel and maintenance of existing vehicles. It will also supplement the computer equipment of the PIU and the ministries of agriculture, women's affairs and the environment, to facilitate the processing the data collected during the field activities monitoring missions. Within this

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framework, the project will finance the procurement of 5 laptop computers, 5 printers and 5 photocopiers at the rate of two units of each equipment for the PIU and one unit of each equipment for the ministry of agriculture, the ministry of women's affairs and the Ministry of the Environment respectively. 4.5.15 The Director of the project implementation unit will sign a performance contract with the Ministry of national Defence. 4.6 Production, Market and Prices 4.6.1 In DRC, the agricultural and rural sector targeted by the project for the reintegration of ex-combatants present major opportunities. Agriculture occupies 70% of the population and fetches nearly 60% of the GDP. Food crops occupy 5.17 million ha for a production of 20 million tonnes. The livestock sector represents approximately 7 million head of cattle and produces 70 000 tonnes of meat. The fisheries sector provides 165000 tonnes of fish per year. In the project area, production is estimated at 6.5 million tonnes of food products, 2.5 million head of cattle and poultry and 50 000 tonnes of fish. 4.6.2 The ex-combatants reintegrated by the project are expected to produce the following minimal quantities annually: 5 million litres of palm oil, 700 000 head of cattle and poultry, 600 000 tonnes of food products, and 7000 tonnes of fish. There is a market given that the country's requirements are not met. With regard to prices, the DRC applies a system of liberalization of prices and their level varies across localities in the country. The average prices applied in the province of Maniema are: FC 160 for a measurement of niébé beans; FC 240 for a measurement of corn; FC 130 for 1 kg of cassava flour; and FC 3500 for 1 kg of fresh red meat. 4.7 Environmental Impact 4.7.1 The project is classified in environmental category II, given that its environment impacts will be minor. The project does not envisage any construction work, activities related to sanitation or physical disturbances of the environment. On the contrary, the activities chosen for the project are designed to protect the environment. The sensitization and information campaigns include the environmental aspects. As they go through the counselling centres, the ex-combatants will be sensitized to environment-related issues, and the sensitization will continue throughout the program. The vocational training which will precede the reintegration of ex-combatants in agricultural activities will be carried out by qualified trainers, who will teach them agricultural techniques which are environment-friendly. Furthermore, the project will contribute to mitigate stress on the natural resources and ecosystems (poaching, cut-and-run, slash and burn, etc), by enabling the members armed forces and groups to leave the forest belts of the hinterland and settle in the urban or rural communities of their choice. 4.7.2 Although considered minor, negative impacts could result from certain activities created by the project. Indeed, the activities created by the project will use products such as sprays or fertilizers which may generate nuisances. Also, there will be clearing so as to increase farmland and an intensification of artisanal fishing activities. The environmental monitoring which will be carried out by the project implementation unit, with the participation of the services of the Ministry of the Environment, will help mitigate these effects. Representatives of the Ministry of the Environment will take part in the quarterly

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field activities monitoring missions of the project, at the rate of one representative for each mission. Their reports, including remedial measures on noted anomalies, will be annexed to the quarterly progress reports that the project will transmit to the Bank. The cost of the environmental monitoring will include sensitization, computer equipment and field missions. The environmental and social management plan (ESMP) which is summarized in Annex III will constitute the reference document for the said monitoring. The cost is included in the project expenditure. 4.8 Project Costs The project cost, net of taxes and customs duties is estimated at UA 16.66 million of which UA 13.72 million in foreign exchange and UA 2.94 million in local currency. A provision for physical contingencies and price contingency has been included in the project costs. The detailed costs were estimated during the project appraisal mission on the basis of information obtained from the PNDDR, development partners, executing partners of the program and the technical services of the ministries involved in the implementation of the program. Tables 4.2 and 4.3 below summarize the breakdown of project costs by component and by expenditure category.

Table 4.2 Project Cost by Component

USD Million UA Million % %

FE LC Total FE LC Total Tot. cost FE 1. Strengthening of sensitization and redeployment opportunities 19.51 2.69 22.20 13.09 1.80 14.89 89.31 95.37

2. Support to management 0.04 1.28 1.32 0.03 0.86 0.89 5.32 0.20

Total baseline cost 19.55 3.97 23.52 13.11 2.66 15.77 94.63 95.57

Physical contingencies 0.60 0.07 0.67 0.41 0.05 0.45 2.70 2.95

Price contingency 0.30 0.36 0.66 0.20 0.24 0.43 2.67 1.48

Total 20.46 4.40 24.85 13.72 2.94 16.66 100.00 100.00

Table 4.3

Project Cost by Expenditure Category

USD Million UA Million % % FE LC Total FE LC Total Tot. cost FE

A. Goods 0.00 0.10 0.10 0.00 0.07 0.07 0.40 0.00

B. Services 11.44 2.69 14.13 7.67 1.80 9.48 56.85 55.93

C. Operation 0.00 1.18 1.18 0.00 0.79 0.79 4.75 0.00

D. Miscellaneous 8.11 0.00 8.11 5.44 0.00 5.44 32.63 39.64

Total baseline cost 19.55 3.97 23.52 13.11 2.66 15.77 94.63 95.57 Physical contingencies 0.60 0.07 0.67 0.41 0.05 0.45 2.70 2.95

Price contingency 0.30 0.36 0.66 0.20 0.24 0.43 2.67 1.48

Total 20.46 4.40 24.85 13.72 2.94 16.66 100.00 100.00

4.9 Financing Sources and Expenditure Categories 4.9.1 The project will be financed by an ADF grant and a contribution from the Government, according to a financing plan shown in the following table:

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Table 4.4 Project Cost by Financing Source (in UA million)

Financing sources FE LC Total %

ADF 13.72 1.28 15.00 90

Government 0.00 1.66 1.66 10

Total 13.72 2.94 16.66 100

Percentage (%) 82.31 17.69 100.000

4.9.2 The contribution of the ADF (UA15 million) will cover 90% of total project cost including 100% of the foreign exchange costs and 43.35% of the costs in local currency in all expenditure categories, except goods. The contribution of the Government (UA1.66 million) representing 10% of total project cost, will be used to cover local currency expenditure and concerns the following expenditure categories: Goods, Services and Operation. The breakdown of financing sources of the project by component and by expenditure is summarized in the following three tables:

Table 4.5 Project cost by Component and by Financing Source (in UA million)

ADF Gvt Total % Components FE LC Total LC FE LC Total Compo 1. Strengthening of sensitization and redeployment opportunities 13.69

0.82

14.51

1.18

13.69

2.00

15.69

94.18

2. Support to management 0.03 0.46 0.49 0.48 0.03 0.94 0.97 5.82

Total 13.72 1.28 15.00 1.66 13.72 2.94 16.66 100.00

Table 4.6.a Project cost by expenditure category and by financing source (in UA million)

Expenditure categories ADF Gvt Total %

FE LC Total LC FE LC Total Category

A. Goods 0.00 0.00 0.00 0.07 0.00 0.07 0.07 0.40 B. Services 8.28 0.82 9.10 1.18 8.28 2.00 10.28 61.71 C. Operation 0.00 0.46 0.46 0.42 0.00 0.87 0.87 5.24 D.Miscellaneous 5.44 0.00 5.44 0.00 5.44 0.00 5.44 32.64

Total 13.72 1.28 15.00 1.66 13.72 2.94 16.66 100.00

Table 4.6.b

Project Cost by Component, by Expenditure Category and by Financing Source (in UA million)

Component I Component II Total %

ADF GVT Total ADF GVT Total Categ

A. Goods 0.00 0.00 0.00 0.00 0.07 0.07 0.07 0.40

B. Services 9.08 1.18 10.26 0.03 0.00 0.03 10.28 61.71

C. Operation 0.00 0.00 0.00 0.46 0.42 0.87 0.87 5.24

D. Miscellaneous 5.44 0.00 5.44 0.00 0.00 0.00 5.44 32.64

Total 14.51 1.18 15.69 0.49 0.48 0.97 16.66 100.00

4.9.3 Expenditure shall be effected in accordance with the list of goods and services featuring in Annex IV and the expenditure schedules shown in the tables below:

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Table 4.7 Expenditure Schedule by Component (in UA million)

Components 2007 2008 Total

1. Strengthening of sensitization and redeployment opportunities

5.76

9.93

15.69

2. Support to management 0.54 0.43 0.96

Total 6.30 10.36 16.66

Table 4.8 Expenditure Schedule by Expenditure Category (in UA million)

Expenditure category 2007 2008 Total

A. Goods 0.03 0.04 0.07

B. Services 3.63 6.65 10.28

C. Operation 0.20 0.67 0.87

D. Miscellaneous 2.44 3.00 5.44

Total 6.30 10.36 16.66

Table 4.9 Expenditure Schedule by Financing Source (in UA million)

Financing sources 2007 2008 Total

ADF 5.44 9.56 15.00

Government 0.86 0.80 1.66

Total 6.30 10.36 16.66

5. PROJECT IMPLEMENTATION 5.1 Executing Agency 5.1.1 The project will be under the supervision of the Ministry of national defence, demobilization and ex-servicemen. This ministry is in charge of demobilization activities within the Government, and it bas been coordinating the implementation of the DDR process since the beginning of its implementation. The management of the project will be entrusted to the program implementation unit (PIU), which is attached to the Office of the Minister in charge of demobilization. It also manages the interventions of the other partners of which IDA/World Bank as regards the reintegration activities under the PNDDR. The PIU replaced CONADER, which was formerly in charge of the management of the reintegration activities of the PNDDR and whose reorganization process failed for political reasons. 5.1.2 The PIU headquarters in Kinshasa comprises the following personnel: 1 Director; 1 reintegration Team Leader; 4 reintegration Specialists; 1 child-soldier Specialist ; 1 communication Specialist ; 1 gender Specialist; 2 monitoring and evaluation Specialists; 4 information systems management Specialists; 1 administrative Assistant; and support personnel. Regarding the field offices in the 11 Provinces, each will have the following personnel: 1 Office Head; 1 reintegration Assistant in charge of monitoring and evaluation; and 1 Assistant in charge of logistics and administration. The PIU is supported by consultants, including 3 international reintegration specialists at Kinshasa, and 16 information systems management Assistants in the field offices. It enjoys the autonomy required to carry through out its mission.

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5.1.3 Under the authority of a Director, the project team will perform the following tasks for the implementation of the ADF project: (i) prepare the documents enabling the Government to satisfy the grant effectiveness and first disbursement conditions; (ii) ensure the implementation and coordination of the donors' interventions concerning the PNDDR reintegration activities; (iii) prepare and implement work plans (procurements, disbursements) and budgets; (iv) produce regularly project progress reports and submit them to the ADF; (v) prepare ADF supervision missions and monitor the implementation of the recommendations; (vi) prepare the budgets of the counterpart funds and ensure their provision on schedule. 5.2 Institutional Arrangements 5.2.1 The program already has a reintegration operations implementation manual, which was examined and deemed acceptable by the Bank and which is summarized in Annex 4. The inter-Ministerial disarmament, demobilization and reintegration Committee (CIDDR) described in section 2.4 above, will supervise the management of the project, which will be carried out in accordance with the provisions of this manual. Besides these current missions, the CIDDR will consider and approve the semi-annual work programs and the budget of the PIU. It will lay down the main guidelines of the project and will ensure its coherence with the PNDDR and the objectives of the GPRSP. It will also carry out monitoring and evaluation. The CIDDR will be extended to the Ministry of agriculture, the Ministry of rural development and the ministry of the Environment. Such extension will constitute a grant condition. Executing partners 5.2.2 For the implementation of the activities in the field, the PIU will partner with UN agencies or NGOs. The PIU's role consists in coordinating and monitoring the activities of the executing partners and assessing the quality of their services. The partners chosen during the appraisal mission for the conduct of training and the settlement of ex-combatants in the agricultural sector are: FAO, CARITAS CONGO, HDW, and IFESH. They are entities existing, present and active in the project area, and which have already performed similar services under the PNDDR. They will sign with the PIU agreements on the basis of direct negotiation, and will transmit to the project detailed quarterly activity reports which will be submitted by the PIU to the Bank at the same time as the quarterly status reports. 5.2.3 FAO plays the role of supporting States as regards development and implementation of policies in the fields of agriculture, stock breeding, fishery and forestry. In DRC, the operational mechanism of FAO comprises a coordination unit at the national level, established in Kinshasa and a score of establishments countrywide. The human resources of FAO in DRC are made up of 80 persons under individual contracts and approximately 240 persons involved in the implementation of the projects through partnership contracts. FAO does not carry out the activities directly, but relies on local contractual partners. In DRC, it maintains a network of 250 local field partners, and has carried out reintegration projects under the PNDDR for approximately USD 10 million for the benefit of 20 000 ex-combatants. 5.2.4 CARITAS CONGO is a member of the CARITAS INTERNATIONALIS network covering 222 countries and territories worldwide. CARITAS CONGO covers the whole country with 47 establishments in the provinces, the cities, the districts and the local

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grassroots communities. Its missions cover emergency aid, medical aid and development projects. Its human resources comprise mainly physicians, veterinary surgeons, agricultural engineers, civil engineers, rural development technicians, economists, sociologists and psychologists. CARITAS CONGO has already carried out of reintegration projects under the PNDDR for nearly USD 3 million for the benefit of approximately 6000 ex-combatants in the agricultural field. 5.2.5 Human Dignity in the World (HDW) is a Congolese NGO created in 1996 whose key fields of intervention are human development and the humanitarian action. It is headquartered in Goma, in North Kivu province, and has offices in several other provinces and districts, notably in the east of the country. HDW has an overall staff strength of 391 including 176 technical and administrative experts. It has carried out projects under the PNDDR for approximately USD 1.2 million for the reintegration of 2000 ex-combatants and child-soldiers in North Kivu and South Kivu. 5.2.6 International Foundation for Education and Self Help (IFESH) is an American international NGO founded in 1981. It intervenes in favour of communities and targets human development in particular. IFESH works in more than 10 countries in Africa and is established in DRC since 2001 with a full-time staff of 20 persons. It has carried out a project under the PNDDR in Katanga for USD 3 million for the benefit of 6000 adult ex-combatants and child-soldiers. 5.2.7 CELPAY RDC is a company specializing in electronic financial transactions. It is a subsidiary of CELPAY HOLDING BV, belonging itself to the First Rand Bank group. CELPAY RDC is in charge of the payment of the safety net to the demobilized ex-combatants and for this purpose, signed with the program a contract covering the entire duration of the latter. CELPAY RDC intervenes nationwide and has a staff strength of about 250, including full-time and daily workers. Since the beginning of the program, the company has carried out payments of a total amount of approximately USD 17 million for the benefit of about 100 000 people. The company receives 5% on lump-sum payments (outgoing bonus and essential needs kit) and 10% on the payments made in several instalments (monthly subsistence allowance). For the implementation of the activities of the ADF project, CELPAY RDC will sign with the PIU a specific contract and will provide quarterly financial statements showing all the payments made. Sectoral ministries and other public services 5.2.8 The Ministry of national Defence oversees the project, but the activities selected also concern other ministries. Their involvement is necessary for the guidance of the ex-combatants throughout the project and especially after the project. The ministries directly concerned are the Ministry of agriculture, the Ministry of the Environment and the Ministry of Women's Affairs. They will be involved in the project at the technical level, for monitoring the implementation of field activities, and will also take part in meetings of the CIDDR for setting the strategic guidelines of the project and the assessment of outcomes. The CIDDR will be extended for that purpose. 5.2.9 The Ministry of agriculture, the Ministry of the Environment and the Ministry of Women's Affairs, all have provincial services and are thus represented in the project area. They have the technical staff required to monitor the project and to guide beneficiaries, but lack the financial resources required to carry out these tasks. The project will finance the

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field trips of the technicians of these ministries, within the framework of the quarterly activities monitoring missions. 5.2.10 Moreover, the local television and radio services will be required for broadcasting the sensitization and information campaign messages. Through these media, it will be possible to reach the greatest number of people in the project area. They have adequate equipment and personnel for this activity. 5.3 Implementation and Supervision Schedule 5.3.1 The project will be implemented over an 18-month period, from its date of approval envisaged in July 2007. This estimate is realistic taking into account the experience acquired by the PNDDR since 2004. On account of the short duration of the project, a mid-term review is not envisaged. The estimated implementation plan of the project (Annex III) is summarized below:

Table 5.1 Schedule of Activities

Activities Dates Implementors Approval of grant July 2007 ADF Board of Directors Effectiveness of grant August 2007 Min, Finance/Min Defence/ADF Launching workshop End August 2007 ADF/CDFO/Min Fin/Min Defence/PIU Award of contracts September 2007-June 2008 PIU Sensitization/Information October 2007-December 2008 Executing partners /PIU Vocational training+Kits October 2007-December 2008 Executing partners Study on women+Strategy Nov, 2007-March 2008 Executing partners /PIU Completion of project December 2008 GVT/ADF/CDFO Completion report of GVT January 2009 GVT Completion mission of ADF February 2009 ADF/CDFO 5.3.2 Once the grant is approved, the ADF will organize a project launching mission. It will also conduct supervision missions according to the following plan:

Table 5.2 Project Supervision Schedule

Periods Activities Qualification required Structure August 2007 Project launch Socioeco,/Disbursement/Procurement/Agronomist/Gender GVT/ADF/CDFO December 2007 Supervision Socio-economist/Agronomist/Gender GVT/ADF/CDFO June 2008 Supervision Socio-economist/Agronomist/Gender GVT/ADF/CDFO November 2008 Supervision Socio-economist/Agronomist/Gender GVT/ADF/CDFO February 2009 Completion Socio-economist/Agronomist/Gender GVT/ADF/CDFO 5.4 Procurement Arrangements for Goods and Services 5.4.1 The provisions relating to procurement of goods and services are summarized in table 5.3 below. Any ADF-financed goods and services will be procured in accordance with the Bank rules of procedure for the procurement goods or, as the case may be, with the Bank rules of procedure for the use of consultancy services, using the standard bidding documents of the Bank. The executing agency of the project, assisted by KPMG-RDC, will be responsible for the award of goods and services contracts. The executing partners chosen for the project are already collaborating with the program in the intervention zone of the ADF project. Their selection by the program had been made on a competitive basis.

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Table 5.3 Summary of Procurement Arrangements (in UA million)

N.B : (…) : The figures in brackets are amounts financed by the ADF grant ; ICB : International competitive bidding ; LCB : Local Competitive Bidding ; S-L : Short-List ; Others : * Direct negotiation ; ** Local shopping 5.4.2 The other procurement methods are shown in table 5.4 below:

Table 5.4 Other procurement methods (in UA)

Procedure Activities/Expenditure categories Max, per contract

Total max.

Use of the services of local radios and national television and community leaders for sensitization; Posters, flyers and banners.

20 000

800 000

Training of ex-combatants + kits 250 000 8 053 000 Conduct of the study on women and development of the strategy of assistance to women associated with armed forces and groups

8000 604 000

Direct negotiation

Payment of the safety net 460 100 5 439 000 Computer and Office automation equipment 50 000 73 000 Supplies and consumables 25 000 420 000

Local shopping

Monitoring mission trips 30 000 80 000 Goods (UA 0 .073 million): 5.4.3 The 5 laptop computers, 5 printers and 5 photocopiers for the needs for the PIU and the three sectoral ministries in charge of monitoring activities will be procured through local shopping. This procedure is chosen on account of the low amount envisaged and the existence on the national market of a sufficient number of suppliers to ensure competition. Services (UA10.28 million): 5.4.4 Services concerning: (i) the strategy of assistance to the women and girls associated with armed forces and groups (UA 0.008 million), and (ii) preparation of the completion

ICB LCB S-L Others Total

B. Goods 0.073

Computer equipment 0.073** 0.073

C. Services 10.28 (9.18)

Sensitization and Information 0.300 (0.100) 0.800* (0.271) 1.1 (0.371)

Training of ex-combattants 8.053* (8.053) 8.053 (8.053) Study on women associated with the armed forcesand groups (FAFGA) 0.604* (0.483) 0.604 (0.483)

Development of a strategy of assistance toFAFGA 0.008 (0.008) 0.485** (0.239) 0.493 (0.247)

Audit of project accounts 0.024 (0.024) 0.024 (0.024)

Consultancy services for project completion report 0.004 (0.004) 0.004 (0.004)

F. Operation 0.87 (0.456)

Office supplies 0.21** 0.21

Fuel/ Maintenance vehicles 0.21** 0.21

Monitoring of field activities 0.456** (0.456) 0.456 (0.456)

D. Miscellaneous 5.44 (5.44)

Safety net 5.44* (5.44) 5.44 (5.44)

Total 0.336 (0.136) 16.376 (14.864) 16.66 (15)

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report (UA 0.004 million) will be procured on the basis of a short-list using the method based on the technical evaluation of bids with price consideration. 5.4.5 The consultancy services for the auditing of project accounts (UA 0.024 million) and of the services of the part-time staff for the sensitization of the populations (UA 0.3 million) will be procured on the basis of a short-list using the procedure of comparability of technical bids and services, and determination of the lowest evaluated cost bid. 5.4.6 Given that the amounts of all the various service contracts presented at paragraphs 5.4.4 and 5.4.5 above are below UA 350 000, the publication of their notices for the preparation of the short-lists will be limited to national or regional newspapers. However, any eligible regional or non- regional consultant will be able to express interest in being registered on the short-lists. 5.4.7 The services relating to the training of the ex-combatants by the executing partners will be procured on the basis of direct negotiation as mentioned in paragraph 4.5.10 and section 5.2. According to the procedure in force under the PNDDR since the beginning of the program, and applied by the other program donors, the contracts of the executing partners will cover the training cost and the supply, by the executing partner, of the relevant factors of production for the training provided. The total cost of the training of the 28 500 ex-combatants is estimated at UA 8.053 million. The maximum amount per contract will be UA 250 000. 5.4.8 The services of local radios and the national television for the broadcast of the sensitization and information messages, as well as those relating to the production of posters, leaflets, banners or flyers, estimated at UA 0.1 million will be procured on the basis of direct negotiation. The same will apply to the services of the community leaders which will be used during the organization of the talks. This procedure is chosen as they are the sole providers of such services in the project area. Operation (UA 08.7 million): 5.4.9 The procurements of the project in this expenditure category, for a total value of UA 0.874 million, concern the contribution of the project to the purchase of the office supplies, the purchase of fuel and the maintenance of vehicles, as well as the monitoring of the field activities of the project. The services will be procured through national shopping. Miscellaneous (UA 5.44 million): 5.4.10 This expenditure category concerns the payment of the safety net to ex-combatants. The safety net comprises an immediate assistance paid to the ex-combatant as a lump sum upon discharge from the counselling centre and a monthly allowance paid for a 12-month period. The total amount OF the immediate assistance is UA 1.592 million, and the total amount of the monthly payments is UA 3.387 million for all 17000 beneficiaries. The service provider is already under contract with the program, for a remuneration of UA 460 100. National laws and regulations: 5.4.11 The national laws and regulations on procurements in DR Congo were reviewed. The public procurement system is governed by the Order in Council n°69-054 and Ordinance

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69-279 of 5 December 1969. The provisions of these laws concentrate most of the decision-making powers on the Bidding Authority. To remedy this situation which is likely to lead to abuses and slippages, the Government has prepared, with support from the World Bank and Canada, a new regulation on government contracts. The instruments relating to this new regulation are in the process of adoption, and their implementation is envisaged in 2008. The procedures which will be applied to the project will be those of the Bank. Executing agency: 5.4.12 The program implementation unit, under the supervision of the Ministry of national Defence, will be responsible for the award of contracts for goods and services. The Unit is supported by an international audit and management consulting firm, KPMG-RDC, a member of KPMG International network, for the procurement-related activities. The firm was selected on a competitive basis and has supported the program since 2005 within the framework of the implementation of reintegration activities. This support was necessitated by the weakness of available national capacities especially with regard to contracting. General Procurement Notice: 5.4.13 The text of a general procurement notice (GPN) adopted with the Government will be issued for publication in “Development Business”, once the grant proposal is approved by the Board of Directors. Procurement review procedures: Post-review 5.4.14 Taking into account the implementation period of the project and need for maintaining a sustained project implementation rate, contracts of a maximum amount of UA 30 000 will be approved by the project without prior approval by the ADF, in accordance with the post-review procedure of the Bank for procurements of projects financed by the Bank Group. Documents relating to these contracts, in particular bidding documents, evaluation reports, contract awards, and the signed contracts will be kept by the project at Kinshasa for periodic review by the ADF supervision missions and the annual audit of procurements by a specialized consultancy. The terms of reference of the project accounts auditor must be submitted to the ADF for comment. 5.4.15 The contracts once signed are accompanied by the bid evaluation reports, contract award proposals, and any other information which the ADF may require, and transmitted with the first direct payment request concerning these contracts or the first request for renewal of the Special account. Pre-review 5.4.16 For contracts of over UA 30 000, the following documents will be subject to the review and approval of the Bank before publication: (i) the Specific Procurement Notice on the procurement of goods and services; (ii) bidding documents, terms of reference and invitation letters to consultants; (iii) bid evaluation reports including recommendations on the award of contracts; and (iv) draft contracts if the standard contracts included in the bidding documents were modified.

25

5.5 Disbursement Arrangements 5.5.1 The disbursements of funds by the ADF will be carried out in accordance with the rules and procedures of the ADF. Two accounts will be opened in the name of the project, in a bank considered acceptable by the ADF: (i) a special account to receive the grant resources; and (ii) a special account intended to receive the resources of national counterpart funds of the project. That will constitute a grant condition. 5.5.2 The disbursements will be released according to the expenditure schedule of the project and the list of goods and services. The first disbursement will be released following grant effectiveness and the fulfillment of the conditions precedent to the first disbursement of the grant. The first revolving fund will be paid by the ADF in the special account opened for this purpose, on presentation of a work programme and a budget estimate. The following payments will be made after justification of: (i) the use from at least 50% of the preceding disbursement, and (ii) the totality of previous disbursements, where necessary. The funding by the ADF of the special account intended to receive the grant resources will aim at financing the eligible expenditure covering a six-month period of activities. The Regional office of the Bank at Kinshasa (CDFO) will assist the PIU in the preparation of disbursement requests. 5.5.3 Disbursements under contracts relating to goods and certain services (training of ex-combatants, audit of accounts) could be released, depending on their amounts, directly to the suppliers and consultants. 5.6 Monitoring and Evaluation 5.6.1 The monitoring and evaluation mechanism of the project will be based on the monitoring of the outputs on the ground. The executing partners, which themselves have monitoring and evaluation officers in their teams, will collect on-site information which they will transmit to the local field office of the PIU which also has a monitoring and evaluation officer in its staff. After processing the data, the local field office of the PIU will forward the information to its headquarters. The PIU will in turn process it and summarize it for the CIDDR and the program donors. 5.6.2 Besides analyzing the information transmitted by the executing partners, the PIU will carry out its own monitoring. To that end, it will conduct one mission per quarter to the field, with the participation of the ministries of agriculture, women's affairs and the environment. Information will be collected taking into account the indicators defined in the matrix of the logical framework, and the evaluation will be based on set targets. The project will prepare and submit to the Bank, within 15 days of the end of each quarter, quarterly activity reports according to the Bank format. The number of reports expected is 6. These reports will include the trend of indicators defined in the project matrix, the executing partners' outputs (80 talks and workshops organized for sensitization, 28500 trained ex-combatants and 2000 farms established), the progress report of the studies which will be conducted under the project, the statement of disbursements, the problems encountered and the solutions envisaged. The reports of the quarterly project activities monitoring missions, including the environmental aspects and gender- related issues, will be appended to the reports. The CDFO Office will carry out a prior review of the reports before transmission to the headquarters of the Bank.

26

5.6.3 The activities will also be monitored through the annual project accounts audit reports. The number of audit reports expected is 2. The ADF will conduct a project launch mission and three supervision missions during the implementation of the project. The local experts of CDFO Office will take part in these missions and will monitor the implementation of the recommendations. On account of the short duration of the project, there will be no mid-term review mission. At the end of the project, the PIU will prepare a project completion report according to the format defined by the ADF. This report will serve as a basis for the preparation of the ADF's completion report. 5.7 Financial Reporting and Auditing 5.7.1 The project accounts will be kept by the PIU according to accounting principles approved by the ADF, The PIU will set up a computerized financial and accounting management system which should enable project expenditure monitoring by financing source, expenditure category and component. Separate accounts will be kept for the operations financed by the Fund,

5.7.2 ADF-financed operations will be audited annually and the reports submitted to the ADF within six months of the end of the financial year concerned, in accordance with the provisions of the general conditions of the Bank, applicable to loan agreements and guarantee agreements, ADF resources will be allocated for the recruitment of the auditor, 5.8 Coordination of Assistance 5.8.1 There is no formal assistance coordination mechanism in DRC. However, the GPRSP indicates that the Ministry of Finance mobilizes the own resources of the State and external resources for the implementation of the poverty reduction strategy. This strategy constitutes the reference framework of the interventions of the Government and partners in the country. Accordingly, the Ministry of Finance works in collaboration with all the development partners. 5.8.2 Within the framework of the post-conflict socio-economic reintegration support project, which forms part of the implementation of the poverty reduction strategy, coordination will be carried out at two levels. First between the financial partners of the PNDDR which consult during annual meetings of the Consultative Committee and of the Committee of the trust fund of the Multi-country Demobilization and Reintegration Program (MDRP), and then, between the financial partners of the PNDDR and the Government during the missions to DRC. The project identification/preparation mission was prepared in close cooperation with the other partners, and the project appraisal mission was prepared and conducted jointly with the World Bank. 5.8.3 The opening of the CDFO Office will enable the Bank to maintain and strengthen coordination on the spot in DRC with the financial partners of the PNDDR represented in the country. The Bank will also attend the various annual meetings of the Consultative Committee and of the Committee of the MDRP trust fund. This coordination will continue throughout the implementation of the project, which will in addition, benefit from the assistance of the MDRP team present on the ground in DRC.

27

6. PROJECT SUSTAINABILITY AND RISKS 6.1 Recurrent Costs 6.1.1 The project design is intended to minimize recurrent costs. No rehabilitation or construction is envisaged. The recurrent costs of the project thus comprise only the operating expenses the project implementation unit, and the monitoring of reintegration activities on the ground. 6.1.2 The bulk of operating expenses of the common implementation unit of the reintegration activities of the PNDDR is borne by the financing of the World Bank. These include personnel wages and allowances, hiring and maintenance of the buildings, maintenance of equipment and sundry supplies and utilities. With the counterpart funds, the project will finance office supplies, fuels and lubricants as well as the maintenance of existing vehicles. The amount of this expenditure is estimated at UA 168 000 per year throughout the project. The hiring of the buildings will cease at the end of the PNDDR, on 31December 2008, which is also when the project ends. Expenditure related to the use of the buildings will accordingly cease on this date. With regard to the monitoring of field activities, the related expenses are estimated at UA 227 500 per year and will be borne by the project. 6.1.3 At the end of the project, the Ministry of agriculture, the Ministry of Women's Affairs, and the Ministry of the Environment will continue with the monitoring missions, at the rate of three missions per year for two years, then two missions per year for the following years. The cost of this activity, which will be borne by the respective budgets of these ministries is estimated at UA 103 050 per year during two years (that is, UA 34 350 per year for each of the three ministries), and at UA 68 700 per year during the following years (or UA 22 900 per year for each of the three ministries). The amounts envisaged represent less

than 1/10000th of the government’s 2006 operating budget and approximately 1% of the operating budget of the ministry of agriculture which stood at CDF 5.3 billion or UA 7.6 million in the same year. They are affordable to the Government. The upkeep costs of the farms, which will be borne by the beneficiaries, will be insignificant in 2007 and 2008, the years of the establishment of these farms. They are estimated on average at UA 70 per year and per farm as from 2009. These costs represent approximately 3.7% of the annual operating income from a market gardening unit. 6.2 Project Sustainability 6.2.1 The project is of the “emergency operation” type, but it incorporates the concept of sustainability. This was taken into account at several levels; first, in the choice of the executing partners of the reintegration activities. The choice was based on their experience in the implementation of similar missions notably within the framework of the PNDDR, their effective presence in the project area, and their capacity to guide the beneficiaries after the end of the project. All the partners selected during the project appraisal mission meet these criteria. 6.2.2 Then, at the level of the composition of the inter-ministerial disarmament, demobilization and reintegration Committee (CIDDR): as mentioned in paragraph 2.3.2 certain ministries overseeing the branches of activity chosen for the reintegration of ex-combatants or having to monitor the reintegration activities are not members of the CIDDR. These are the Ministry of agriculture, the Ministry of rural development and the Ministry of the Environment. The project proposes to extend the composition of the CIDDR to these

28

ministries in order to enable better consideration of the activities of the demobilized ex-combatants in the work programs of the said ministries during the project and after the end of it. This proposal is dictated by the need for sustainability. 6.2.3 The results of the sensitization campaigns and the development of a strategy of assistance to the ex-combatant women and girls or those affiliated to armed forces and groups also contribute to sustainability. The sensitization campaigns will enable a peaceful cohabitation between the ex-combatants and the receiving communities. They will also enable the ex-combatants to act as environmental guards on their farms. As regards the strategy of assistance to the women and girls associated with armed groups, it will enable the Government and development partners to find appropriate answers to the multiple but unsatisfied needs of the women and girls who were associated the armed groups. It will thus contribute to a sustainable social rehabilitation of the ex-combatant women and girls or those associated with the armed groups. 6.2.4 Lastly, the recent developments in the sub-region with the signature in December 2006 in Nairobi of the Pact of stability, security and development by the countries of the extended Great Lakes region also constitute a significant factor of sustainability of the project. Indeed, effective compliance with the clauses of the Pact will prevent a signatory country from supporting armed groups in another signatory country, and that will contribute to appease the relations between border area populations. This appeasement will favour the implementation of project activities and their sustainability. 6.3 Key Risks and Mitigating Measures 6.3.1 The project is based on the following assumptions: (i) the development partners continue to support the PNDDR; and (ii) the climate of security is maintained in the country to enable the implementation of activities in the field. The factors that may prevent the satisfaction of these assumptions will have to be eliminated to achieve the goals of the project. With regard to the identified risks, they concern: (i) the allotment of land to the ex-combatants; and (ii) threats to the stability of the country and the sub-region. 6.3.2 The demobilized ex-combatant freely chooses the place where he wishes to settle for his reintegration as well as the activity he wishes to exercise, among those selected by the program. If he chooses an agricultural activity for example, a smallholding will be allotted to him. If the ex-combatant does not hail from the locality which he has chosen for his reintegration, this allotment of the land is likely to generate land disputes with certain members of the receiving community. This risk will be attenuated by the information and sensitization campaigns of the project, which are already under way and will continue with the active participation of community leaders in the organized talks and workshops. The involvement of community leaders in the sensitization campaigns is paramount given that in DRC, the land tenure regime requires prior agreement of the Head of the proprietor Clan before ratification by the administrative Authority of the award of the land. 6.3.3 The DRC is a vast country, which shares boundaries with nine other countries of the sub-region, and whose stability remains fragile. It can be threatened by other armed groups. Indeed, despite efforts to ensure security in the country, the threats to stability are still real as shown by the fatal events which occurred in March 2007 in Kinshasa. The extortions by armed men in the eastern part of the country confirm these threats. The risk is attenuated by the progressive training of mixed brigades and their deployment nationwide, the presence of

29

MONUC and the signature of the Pact of stability, security and development by all of the countries of the extended Great Lakes region. 7. PROJECT BENEFITS 7.1 Economic Impact Analysis 7.1.1 The economic impact of the project will be considerable. Indeed, at the end of the project 17 000 beneficiaries shall have received the safety net for a total amount of UA 5.017 million. The pumping of this money, over an 18-month period and in five provinces which are among the poorest in the country, will have a multiplier effect on the local economic activity. Moreover, the tool kits which the project will provide to 28 500 ex-combatants will enable the creation of approximately 2000 livestock, artisanal fishing and food and market-gardening production units, with the grouping of the beneficiaries in co-operatives or associations. The development of these units will create jobs and will increase local agricultural production. 7.1.2 According to PNDDR estimates, at the end of one year, recipients of mixers will each be able to produce up to 30 litres of palm oil per day. A rabbit breeding unit will be able to reach a total of 100 head on average and a poultry farmer shall have acquired a unit with a bird value of approximately USD 1000. With regard to food crops, each kit recipient will be able to harvest, at the end of one year, 1 ha of corn, 0.5 ha of groundnuts and 1.5 ha of cassava, all representing a total value of approximately USD 2000. At the end of the project, all the reintegrated ex-combatants will be able to put on the market 600 000 tonnes of food products per year, produce at least 5 000 000 of litres of palm oil per year and 7000 tonnes of fish. The overall livestock population will be 700 000 head of cattle and poultry. 7.1.3 In the medium term, the country's return to peace, which the project shall have contributed to build, should enable the Government to reduce the level of the military and security spending while increasing the budgetary appropriations for economic infrastructure. 7.2 Social Impact Analysis The project will contribute to peace-building and national reconciliation, with the development of ex-combatants’ skills, and with a better knowledge of the situation of the ex-combatant women and girls or those associated with armed forces and groups. It will consequently have a considerable social impact. The 80 talks and workshops which will be organized as well as 78 broadcasts on television and radio will convey to approximately 5 million people messages designed to foster social harmony, mutual understanding and the acceptance of cultural diversity. They will prepare and facilitate the arrival of the ex-combatants in the communities where they have chosen to settle. The talks and workshops which will be organized by the project and the messages which will be broadcast will also positively impact the behaviours of the ex-combatants vis-à-vis the HIV/AIDS pandemic thanks to the popularization of the risks related to the pandemic and the means of self- protection. Thanks to the training which will be financed by the project, the occupational skills of 28500 ex-combatants will be developed and this will accordingly contribute to their human development and self-development.

30

7.3 Impact on Women 7.3.1 The project will enable the management of 1000 women ex-combatants who will be trained and reintegrated into agricultural activities. This number represents the remaining women ex-combatants to be reintegrated in the project area. The project will also help determine the precise extent of women’s participation in the armed groups which fought in DRC between 1996 and 2003. Owing to the lack of this information, few women have access to the PNDDR (less than 3% of the total number of persons declared by the armed group leaders) and those identified do not benefit from appropriate management. Thanks to the finalization of the study on the situation of women ex-combatants or those associated with armed forces and groups, and the development of an assistance strategy with project resources, these women will be better identified and properly managed. 7.3.2 Furthermore, sensitization and information campaigns which will be financed by the project will underscore violence against women, thereby contributing to raise awareness on this problem in the country. The campaigns will also enable women ex-combatants to diversify their choices of reintegration activities, by popularizing success stories of women reintegrated in activities traditionally undertaken by men. Thanks to the project, every woman ex-combatant will be able to produce palm oil, acquire a small holding or livestock or poultry farm. 8. CONCLUSIONS AND RECOMMENDATIONS 8.1 Conclusions The project responds to the Government's concern for peace-building and the redeployment of ex-combatants, following a long period of conflicts in the country. It is in conformity with the provisions of the Government's growth and poverty reduction strategy paper and with those of the Bank's assistance strategy paper for the DRC. The results obtained by the Government since the beginning of the implementation of the reintegration activities under the PNDDR in 2004 and the analyses conducted as part of the actions adopted for the project show that the latter is technically feasible and presents the significant economic and social benefits listed in Chapter 7 above. The activities chosen will contribute to the improvement of the skills and occupational capacities of 28500 ex-combatants, the revitalization of local economic activity, and the improvement of the incomes and living conditions of the target populations. Also, they will positively impact employment, poverty reduction and, generally speaking, the level of social indicators and of attainment of the MDGs. Furthermore, the project will help develop a strategy of assistance to the women and girls associated with armed forces and groups to ensure management that is tailored to their real needs. 8.2 Recommendations and Grant Conditions 8.2.1 It is recommended that a grant of an amount not exceeding UA 15 million be awarded to the Democratic Republic of Congo to enable it to finance and implement the post-conflict socio-economic reintegration support project (PARSEC) as described in this appraisal report. This grant will be subject to the special conditions set out below.

31

A. Conditions precedent to grant effectiveness 8.2.2 The entry into force of the Memorandum of Understanding of the grant will be subject to the signature of the Memorandum of Understanding. B. Conditions precedent to first disbursement 8.2.3 The first disbursement will be subject to fulfilment by the Donee of the following condition:

(a) Provide evidence of the opening of two accounts in a bank considered acceptable by the ADF: (i) one will be intended to receive the resources of the counterpart funds; and (ii) the other will be intended to receive the ADF resources (paragraph 5.5.1).

C Other conditions 8.2.4 The Donee shall moreover:

(a) Provide to the ADF, no later than four months following the signature of the Memorandum of Understanding of the grant , evidence of the extension of the composition of the CIDDR to the ministries of agriculture, rural development, and the environment (paragraph 5.2.1);

(b) Provide to the ADF, no later than four months following the signature of the

Memorandum of Understanding of the grant, evidence of the signature of a performance contract between the Director of the PIU and the Ministry of national defence (paragraph 4.5.15).

ANNEX 1

Page 1 of 1 DEMOCRATIC REPUBLIC OF CONGO:

POST-CONFLICT SOCIO ECONOMIC REINTEGRATION SUPPORT PROJECT ADMINISTRATIVE MAP CONGO AND PROJECTAREA

This map was furnished by staff of the African Development Bank Group for exclusive use by readers of this report. The names and boundaries shown on this map do not imply on the part of the ADB Group and its members, any opinion concerning the legal status of a territory or any approval or acceptance of its boundaries whatsoever.

ANNEX II Page 1 of 1

DEMOCRATIC REPUBLIC OF CONGO POST-CONFLICT SOCIO ECONOMIC REINTEGRATION SUPPORT PROJECT

ORGANIZATION CHART

Ministry of National Defence, Demobilization and Ex-servicemen

Programme Implementation Unit ( PIU)

Kasaï

Oriental Field Office

ManiemaiField

Office

Kasaï

Occidental Field Office

Nord Kivu

Field Office

Orientale Field

Office

Katanga

Field Office

Equateur

Field Office

Bas

Congo Field Office

Bandundu

Field Office

Sud Kivu Field

Office

KPMG-DRC

Office of the

Minister

ANNEX III Page 1 of 1

DEMOCRATIC REPUBLIC OFCONGO: POST-CONFLICT SOCIO-ECONOMIC REINTEGRATION SUPPORT PROJECT

PROJECT PREPARATION STAGES

Key activities Implementation dates Remarks Identification/preparation mission 14-28 December 2006 The Bank was requested to contribute to complete a program which started with other

partners, of which the World Bank. The identification mission was not carried out. The program document, the Government’s request and progress report documents and the additional financing requirements of the program were deemed satisfactory to conduct a preparation mission. The contents of the request were in conformity with pillar 1 of the CSP of the Bank which aims at the improvement of the economic and social conditions of the rural and semi-urban poor. The preparation mission met the national and local authorities, development partners contributing to the financing of the program, the executing partners and the beneficiaries. It enabled the collection of information on the program and the country’s socio-economic situation, and on the interventions of the other partners, and identification of target group needs.

Appraisal mission 31 March - 17 April 2007 The mission was carried out jointly with the World Bank, which conducted the project appraisal as concerns its additional financing of the program. It was received by the Minister of Finance and the Minister of national Defence in charge of Demobilization, and met all program stakeholders and beneficiaries. The mission looked further into the aspects examined during the preparation mission and focused on the status of women associated with armed forces and groups. It also enabled the delimitation of the project area.

Appraisal report 18 - 30 April 2007 The report was prepared according to the Bank format and on schedule. Working group meeting 7 May 2007 The main comments concerned the project context and any previous Bank experiences in

the sector, the capacity of the Unit to carry out the project within the envisaged time-frame, gender mainstreaming and recurrent costs. They were incorporated in the report.

Interdepartmental Working group meeting 31 May 2007 The key contributions were proposals aiming at improving the report. They were taken into account in the report and notably concerned the revision of grant conditions, the reformulation of risks, precise details on the contents of the kits, the description of the results already recorded by the program.

Meeting of senior management committee (SMC) 8 June 2007 The main comments concerned: justification of the Bank’s financing of an ongoing program, presentation of the results already recorded by the program, explanation of the focus on agriculture, taking into account of the regional dimension in the project context, reformulation of the title of component 1, and the need to situate the project in the new context of fragile States.

ANNEX IV Page 1 of 1

DEMOCRATIC REPUBLIC OF CONGO:

POST-CONFLICT SOCIO- ECONOMIC REINTEGRATION SUPPORT PROJECT

TABLE OF CONTENTS OF PNDDR REINTEGRATION OPERATIONS IMPLEMENTATION MANUAL

PREFACE I Strategic framework of the reintegration programme

1.1 Context 1.2 Target Groups II Institutional framework of the reintegration programme

2.1 Reintegration department 2.2 Provincial and community Bureaux 2.3 Financial management Agency III Process of identification of reintegration projects

3.1 Reintegration support system 3.2 Areas of intervention of reintegration projects 3.3 Project approval structures 3.4 Project selection process 3.5 Proposed projects analysis criteria 3.6 Ex-combatant profiles; reintegration opportunities ; information gathering and

processing IV Technical and financial monitoring of reintegration projects

4.1 Financial monitoring 4.2 Technical monitoring 4.3 Processus of payment to Executing Agencies 4.4 Agreement between the programme and the executing partner 4.5 Status of proposed projects 4.6 Project end and closure

Annexes

Assessment criteria of reintegration project proposals Standard project and budget proposal format Standard reintegration costs by sector and by beneficiary List of project performance indicators Proposed projects monitoring chart Standard agreement between the programme and the executing partner Presentation and financial management of projects

ANNEX V Page 1 of 1

DEMOCRATIC REPUBLIC OF CONGO:

POST-CONFLICT SOCIO- ECONOMIC REINTEGRATION SUPPORT PROJECT

IMPLEMENTATION SCHEDULE OF ACTIVITIES

Activities

2007

2008

2009

Jul. Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. Janv, Fév, Board Presentation Grant effectiveness and activities start-up

Award of contracts Senstization/Information on PNDDR

Training/Purchase of kits/Settlement of persons trained

Study on FAFGA + Dev’t of assistance strategy

Monitoring of field activities Accounts audit PCR and project closure

ANNEX VI Page 1 of 1

DEMOCRATIC REPUBLIC OF CONGO:

POST-CONFLICT SOCIO- ECONOMIC REINTEGRATION SUPPORT PROJECT

PROVISIONAL LIST OF GOODS AND SERVICES

ADF GVT Total FE LC Total LC FE LC Total % A. Goods BC 0.000 0 0.000 0.067 0.000 0.067 0.067 0.425 Cont. 0.000 0 0.000 0.004 0.000 0.004 0.004 P.C. 0.000 0 0.000 0.002 0.000 0.002 0.002 T C.. 0.000 0 0.000 0.073 0.000 0.073 0.073 B. Services BC 7.674 0.822 8.496 0.980 7.674 1.802 9.476 60.07 Cont. 0.405 0 0.405 0.000 0.405 0.000 0.405 P.C. 0.203 0 0.203 0.200 0.203 0.200 0.403 T. C. 8.282 0.822 9.104 1.180 8.282 2.002 10.28 C. Operation BC 0 0.457 0.4568 0.335 0 0.792 0.792 5.02 Cont. 0 0.000 0 0.042 0 0.042 0.042 P.C. 0 0.000 0 0.040 0 0.040 0.04 T. C. 0 0.457 0.4568 0.417 0 0.874 0.874 D. Miscellaneous BC 5.439 0 5.439 0 5.439 0 5.439 34.48 Cont. 0 0 0 0 0 0 0.000 P.C. 0 0 0 0 0 0 0.000 T. C. 5.439 0 5.439 0 5.439 0 5.44 Total BC 13.113 1.278 14.391 1.383 13.113 2.661 15.774 100 Cont. 0.405 0.000 0.405 0.046 0.405 0.046 0.451 P.C. 0.203 0.000 0.203 0.242 0.203 0.242 0.444 T.C. 13.72 1.28 15 1.660 13.72 2.94 16.660

ANNEX VII

Page 1 of 2

DEMOCRATIC REPUBLIC OF CONGO : POST-CONFLICT SOCIO- ECONOMIC REINTEGRATION SUPPORT PROJECT

SUMMARY OF ENVIRONMENTAL AND SOCIAL MANAGEMENT PLAN Country : D R Congo Department : OSHD Division: OSHD.1 a) Brief description of the project and of the key social and environmental components The objective of the project is to contribute to the socio-economic reintegration of demobilized ex-combatants within the framework of the national disarmament, demobilisation and reintegration programme (PNDDR). It comprises two components: Strengthening of reintegration activities ; and support to project management. The ex-combatants will be reintegrated into agricultural activities, after undergoing training and receiving tool kits. (b) Key environmental and social impacts The project is classified in category II, given the minor environmental impacts it will generate. The key impacts are described below: Positive impacts: The implementation of project activities will have the following positive impacts: (i) better knowledge of the target groups on environmental issues thanks to sensitization campaigns; (ii) learning of farming and fishing techniques which are environment-friendly; (iii) return to the communities of the ex-combatants hitherto living in the forest areas and stressing the natural resources and ecosystems. Negative impacts: (i) Risk of air and water pollution due to poor use of sprays and fertilizers; (ii) increased fish catches in the project area may lead to increased fire wood use for fish drying. (c) Improvement and mitigation Program The PNDDR envisages the conduct of an environmental impact assessment of the entire program. The study will be conducted in 2007 and will cover the project area. The project will be implemented with the participation of the Ministry of the Environment. The following measures form an integral part of the project: (i) revitalize sensitization campaigns including the Environment component; (ii) train the ex-combatants in agricultural and fishing techniques which are environment-friendly; (iii) provide tool kits meeting accepted sector standards; (iv) protect the sensitive areas of rivers, drinking water basins or parks in the choice of sites for the agricultural activities of ex-combatants; and (v) replant felled trees. (d) Program monitoring

(i) The project will have a focal point at the Ministry of the Environment. (ii) The project will provide this focal point with a laptop computer, and he will take part in the

monitoring missions which will be conducted by the project once per quarter. Its reports will be appended to the quarterly activity reports that the project will transmit to the Bank.

(iii) The Bank will monitor the implementation of the ESMP through the reports of the PIU and supervision missions.

ANNEX VII

Page 2 of 2 (e) Institutional arrangements and capacity building

(i) The Ministry of the Environment will to the implementation of the ESMP. (ii) The sensitization campaigns of the project will be organized by NGOs for the benefit of the

population, notably the ex-combatants. (iii) The ex-combatants to be reintegrated in the domain of agriculture will be trained and will acquire

environment-friendly techniques. (f) Public consultations and communication of information The reintegrated ex-combatants will be settled in communities, which will be able to benefit from new knowledge on the environment from them. The reports PIU activities monitoring missions will be accessible. (g) Cost estimates The measures listed above were incorporated in the project design. Their costs, estimated at UA 128 000, are included in the project costs. (h) Implementation schedule and report Environmental monitoring and management will be carried out on the basis of the project activities implementation schedule.

ANNEX VIII Page 1 of 2

DEMOCRATIC REPUBLIC OF CONGO : POST-CONFLICT SOCIO- ECONOMIC REINTEGRATION SUPPORT PROJECT

LIST OF ACTIVE BANK GROUP OPERATIONS IN DRC (IN UA MILLION)

Effectiveness date

N°

PROJECTS BY

SECTOR

Window

Approval

date

Signature

date

Closure date

Amount approved

Amount

disbursed

Amount cancelled

Undisbursed

balance

Net commit-

ments

Disbursement

rate %

AGRICULTURE AND RURAL DEV.

ADF 19/05/2004 25/05/2004 02/04/2005 31/03/2011 25 1.341 0 23.659 25 5.4 1 Agricultural sector rehabilitation support Project in Bas Congo and Bundundu Provinces (PARSAR)

02/02/2006 2 Agricultural sector

rehabilitation support Project in Katanga and the 2 Kasai Provinces (PRESAR)

ADF 12/12/2005 02/02/2006

31/01/2013 35 0.425 0 35 35 1.2

3 Study on agricultural sector

ADF 28/06/2006 10/11/2006 10/11/2006 31/12/2009 1.85 0 0 1.85 1.85 0

SUB-TOTAL SECTOR

61.85 1.766 58.844 61.85 2.8

TRANSPORT 4 Nsele-Lufi and

Kwango-Kenge roads rehabilitation Project

ADF 19/12/2005 29/12/2005 31/01/2010 52.45 0 0 52.45 52.45 0

SUB-TOTAL SECTOR

52.45 0 0 52.45 52.45 0

ANNEX VIII

Page 2 of 2

SOCIAL ADF 17/03/2004 25/05/2004 16/03/2005 30/09/2010 25 0.201 0 24.798 25 0.8

5 Health I Support to PPDS in Orientale Province

30/12/2004 6 Support to the

education sector ADF 17/03/2004 25/05/2004

31/12/2009 5.23 2.07 0 3.16 5.23 39.6

SUB-TOTAL SECTOR

30.23 2.271 0 27.958 30.23 7.5

MULTI SECTOR 18/10/2001 7 National capacity

building emergency programme Support Project

ADF 20/06/2001 18/07/2001

30/06/2006 1.97 1.616 0.354 0 1.616 100

02/03/2004 8 Multisectoral socio-economic rehabilitation Project « PMURIS »

ADF 20/12/2002 06/04/2003

30/04/2007 27 3.528 0 23.472 27 13

10/01/2003 9 Multisectoral institutional support Project « PAIM »

ADF 13/11/2002 06/04/2003

31/12/2007 3.23 1.209 0 2.021 3.23 37.4

ADF 12/10/2003 15/12/2003 28/07/2004 31/12/2006 47.5 45.298 0 2.202 47.5 95.4 10 Revival and reunification support Programme « PARER »

SUB-TOTAL

SECTOR 79.7 51.651 0.354 27.695 79.346 65

GRAND TOTAL 224.23 55.688 0.354 166.947 223.876 24.8

ANNEX IX Page 1 of 2

DEMOCRATIC REPUBLIC OF CONGO:

POST-CONFLICT SOCIO- ECONOMIC REINTEGRATION SUPPORT PROJECT

SUMMARY OF PROJECT COSTS

COMPONENT I : STRENGTHENING OF SENSITIZATION AND REDEPLOYMENT OPPORTUNITIES

Qty U. P. Total Total ADF GVT

Million Million x106 x106 USD USD UA UA UA

C/ SERVICES 1. Sensitization and Information 1.650 1.107 0.294 0.813 Recruitment of temporary staff 300pers/m 0.300 0.100 0.200 Organization of talks and workshops (with Community leaders) 80 0.300 0.144 0.156 Posters/Flyers broadcast of radio/television messages 0.100 0.050 0.050 Utilization of theater groups 10 0.300 0.000 0.300 2. Training of demobilized ex-combatants. including : 28500 400 11.400 7.646 7.646 Training and other services : 210 $/pers Tool kits and other inputs : 190 $/pers 3. Study on the women associated with armed forces/groups (FAFGA) Package 0.900 0.604 0.483 0.121 4. Development of a FAFGA assistance strategy Specialist consultants (x2. all incl.) 2x24 St/d 6 000 0.012 0.008 0.008 National workshop (4working days) Participants from within the country (3part x10 prov x 6d) : Travel expenses to Kinshasa 30 500 0.015 0.010 0.010 Per Diems 180 220 0.040 0.027 0.027 Hiring of hall + Provision of services (ushers. coffee. reproduction) Package 0.035 0.023 0.023 Printing and distribution of strategy document Package 0.035 0.023 0.023 Baseline cost SERVICES 14.052 9.449 8.468 0.980 Contingencies (5.3% for kits only) 0.604 0.405 0.405 0.000 Price contingency (5%) 0.703 0.472 0.202 0.200 Sub-Total SERVICES 15.358 10.326 9.075 1.180 D/ MISCELLANEOUS 1. Outgoing allowance (1x$110=$110) x 1.05 17000 110 1.964 1.317 1.317 2. Allowance for essential kit (1x$30=$30) x1.05 17000 30 0.536 0.359 0.359 3. Cross-over allowance ($25x12months = 300$) x1.10 17000 300 5.610 3.763 3.763 Baseline cost MISCELLANEOUS 8.109 5.439 5.439 Contingencies (0%) Price contingency (0%) Sub-Total MISCELLANEOUS 8.109 5.439 5.439

Baseline cost COMPONENT I 22.161 14.864 13.907 0.980 Contingencies 0.604 0.405 0.405 0.000 Price contingency 0.703 0.471 0.202 0.200

Sub-Total COMPONENT I 23.467 15.741 14.514 1.180

ANNEX IXPage 2 of 2

COMPONENT II : SUPPORT TO PROJECT MANAGEMENT

Qty U. P. Total Total ADF GVT Million Million x106 x106 USD USD UA UA UA

B/ GOODS 1. Computer equipment (5 Laptops. 5 printers 5 photocop.) 0.100 0.067 0.067 Baseline costs GOODS 0.100 0.067 0.067 Contingencies (5.3%) 0.005 0.004 0.004 Price contingency (3%) 0.003 0.002 0.002 Sob--Total GOODS 0.108 0.073 0.073

C/ SERVICES 1. Accounts audit (3 Staff/M) 3 12000 0.036 0.024 0.024 2. Preparation of completion report : Consultant (1 St/M all inclus.) 1 5 000 0.005 0.003 0.003 Baseline cost SERVICES 0.041 0.028 0.028 Contingencies (0%) 0.000 0.000 0.000 Price contingency (3%) 0.001 0.001 0.001 Sub-Total SERVICES 0.042 0.028 0.028

F/ OPERATION 1. Office supplies Package 0.250 0.168 0.168 2. Fuel/Maintenance of vehicles Package 0.250 0.168 0.168 3. Montoring of activities in the field : Travel expenses in the provinces/communes (5persx8quartsx5prov) 200 600 0.120 0.080 0.080 Per Diems (5persx8quarts.x5prov.x11d) 2200 255 0.561 0.376 0.376 Baseline cost OPERATION 1.181 0.792 0.457 0.335 Contingencies (5.3%) 0.063 0.042 0.000 0.042 Price contingency (5%) 0.059 0.040 0.000 0.040 Sub-Total OPERATION 1.303 0.874 0.457 0.417

Baseline cost COMPONENT II 1.322 0.887 0.484 0.403 Contingencies 0.068 0.046 0.000 0.046 Price contingency 0.063 0.042 0.001 0.048

Sub-Total COMPONENT II 1.453 0.975 0.485 0.496

Total baseline cost of project 23.483 15.751 14.391 1.383

Contingencies 0.672 0.451 0.405 0.046 Price contingency 0.766 0.514 0.203 0.248

TOTAL PROJECT COST 24.921 16.715 15 1.66