Document of The World Bank FOR OFFICIAL USE ONLY Report No. 69913-SL INTERNATIONAL DEVELOPMENT ASSOCIATION INTERNATIONAL FINANCE CORPORATION AND MULTILATERAL INVESTMENT GUARANTEE AGENCY COUNTRY ASSISTANCE STRATEGY PROGRESS REPORT FOR THE REPUBLIC OF SIERRA LEONE FOR THE PERIOD FY10-FY13 July 12, 2012 World Bank West Africa Department 1 IFC MIGA Sub-Saharan Africa Department This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without the World Bank‘s authorization. Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized
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Document of
The World Bank
FOR OFFICIAL USE ONLY
Report No. 69913-SL
INTERNATIONAL DEVELOPMENT ASSOCIATION
INTERNATIONAL FINANCE CORPORATION
AND
MULTILATERAL INVESTMENT GUARANTEE AGENCY
COUNTRY ASSISTANCE STRATEGY PROGRESS REPORT
FOR THE
REPUBLIC OF SIERRA LEONE
FOR THE PERIOD FY10-FY13
July 12, 2012
World Bank
West Africa Department 1
IFC
MIGA
Sub-Saharan Africa Department
This document has a restricted distribution and may be used by recipients only in the
performance of their official duties. Its contents may not otherwise be disclosed without the
World Bank‘s authorization.
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REPUBLIC OF SIERRA LEONE – FISCAL YEAR
January 1 - December 31
CURRENCY EQUIVALENTS (as of May31, 2012)
Currency Unit = Leone
US$1.00 = Le 4,340
WEIGHTS AND MEASURES
Metric System
ACRONYMS AND ABBREVIATIONS
AAA Analytical and Advisory Activities
ACC Anti-Corruption Commission
ACGF Africa Catalytic Growth Fund
AfDB African Development Bank
AML/CFT Anti-Money Laundering and Combating the Financing of Terrorism
APC All People‘s Congress
APEIE Africa Program for Education Impact Evaluation
ASREP Agriculture Sector Rehabilitation Project
BB Bank Budget
BECE Basic Education Certificate Examination
BHP Bumbuna Hydroelectric Project
BSL Bank of Sierra Leone
CAADP Comprehensive Africa Agriculture Development Program
CAP Scan Management for Development Results Capacity Scan
CAR Commitment at Risk
CAS Country Assistance Strategy
CASA Conflict-Affected States in Africa
CASPR Country Assistance Strategy Progress Report
CDTI Community-Directed Ivermectin Distribution
CET Common External Tariff
CG Consultative Group
CHYAO Child and Youth in Africa Trust Fund
CPAR Country Procurement Assessment Review
CPIA Country Policy and Institutional Assessment
CPR Country Portfolio Performance Review
CSO Civil Society Organization
CSP Country Strategy Paper
CSR Country Status Report
CWIQ Core Welfare Indicators Questionnaire
DfID Department for International Development
DFGG Demand for Good Governance
DP Development partner
DPO Development Policy Operation
DOTS Directly Observed Treatment Short Course
DTIS Diagnostic Trade Integration Study
EFA FTI Education for All Fast Track Initiative
EGRP Economic Governance Reform Program
EITI Extractive Industries Transparency Initiative
EMS Education Management System
ENCISS Enhancing Interaction and Interface between Civil Society and the State
to Improve Poor People‘s Lives
EPA Economic Partnership Agreement
ESMAP Energy Sector Management Assistance Program
ESW Economic Sector Work
EU European Union
FCS Fragile and Conflict affected Situations
FDI Foreign direct investment
FIAS Foreign Investment Advisory Services
FIRST Financial Sector Reform and Strengthening
FIU Financial intelligence unit
FM Financial management
FMCG Fast Moving Consumer Goods
FSAP Financial Sector Assessment Program
FSF Fragile States Facility
FY Fiscal Year
GDP Gross domestic product
GEF Global Environment Facility
GER Gross Enrollment Ratio
GoSL Government of Sierra Leone
GRGC Governance Reform and Growth Credit
GRGG Governance Reform and Growth Grant
GVWC Guma Valley Water Company
HIPC Heavily Indebted Poor Countries
HRMO Human Resources Management Office
IBRD International Bank for Reconstruction and Development
ICA Investment Climate Assessment
ICAO International Civil Aviation Organization
IDA International Development Association
IDP Infrastructure Development Project
IDF Institutional Development Fund
IFC International Finance Corporation
IFMIS Integrated Financial Management Information System
IMF International Monetary Fund
IPFMRP Integrated Public Financial Management Reform Project
IRCBP Institutional Reform and Capacity Building Project
JAS Joint Assistance Strategy
JICA Japan International Cooperation Agency
JSANS Joint Staff Advisory Notes
JSS Junior Secondary School
JSDF Japan Social Development Fund
KFW Kreditanstalt fur Wiederaufbau
LC Local Council
LG Local Government
LGA Local Government Act
MDAs Ministries, departments and agencies
MDBS Multi-donor Budget Support
MDG Millennium Development Goal
MDRI Multilateral Debt Relief Initiative
MDTF Multi-Donor Trust Fund
MICS Multiple Indicator Cluster Survey
MIGA Multilateral Investment Guarantee Agency
MMMR Ministry of Mines and Mineral Resources (MMR)
MMR Ministry of Mineral Resources
MOA Memorandum of Agreement
MoFED Ministry of Finance and Economic Development
MOU Memorandum of Understanding
MT Metric ton
MTEF Medium-Term Expenditure Framework
NaCSA National Commission for Social Action
NASSIT National Social Security and Insurance Trust
NCP National Commission for Privatization
NER Net Enrollment Ratio
NERICA New Rice for Africa
NPA National Power Authority
NPPA National Public Procurement Authority
NPSE National Primary School Examination
NSA Non State Actor
NPV Net present value
NSAP National Social Action Project
O&M Operation and maintenance
PAD Project Appraisal Document
PAF Progress Assessment Framework
PAR Portfolio at Risk
PCR Primary Completion Rate
PEFA Public Expenditure and Financial Accountability
RABI Removing Administrative Barriers to Investment Project
RCHP Reproductive and Child Health Project
RIMsys Results integration and management system
ROSC Report on the Observance of Standards and Codes
SA Social Accountability
SHARP Sierra Leone HIV/AIDS Response Project
SIL Specific Investment Loan
SL Sierra Leone
SLIEPA Sierra Leone Investment and Export Promotion Agency
SLIHS Sierra Leone Integrated Household Survey
SLPRSP Sierra Leone Poverty Reduction Strategy Paper
SLRA Sierra Leone Roads Authority
SMC School Management Committee
SSA Sub Saharan Africa
SWAp Sector-wide approach
TA Technical assistance
TB Tuberculosis bacillus
TEU Twenty-foot Equivalent Unit
TURFS Territorial Use Rights Fisheries
UNMIL United Nations Mission in Liberia
WAPP West African Power Pool
UK United Kingdom
UN United Nations
UNDP United Nations Development Programme
UNFPA United Nations Population Fund
UNHCR United Nations High Commission for Refugees
UNICEF United Nations Children‘s Fund
UNIPSIL United Nations Integrated Peacebuilding Office in Sierra Leone
USAID United States Agency for International Development
VSAT Very Small Aperture Terminal
WAPP West Africa Power Pool
WBG World Bank Group
WBI World Bank Institute
WFP World Food Program
WHO World Health Organization
WORLD BANK
Vice President: Makhtar Diop
Country Director: Yusupha Crookes
Country Manager: Vijay Pillai
Task Team Leader (s): Vijay Pillai and Renée Desclaux
Task Team Members Sergiy Kulyk, Cyrus Talati, Anders Jensen, Thomas Losse-Mueller,
Mamadou Barry, Christopher Gabelle, Mohamed Sidie Sheriff,
Margaux Hall
INTERNATIONAL FINANCE CORPORATION
Vice President: Thierry Tanoh
Country Director: Yolande Duhem
Resident Representative : Mary Agboli
Strategy Unit: Frank Douamba
Core CAS Team: Mary Agboli
MULTILATERAL INVESTMENT GUARANTEE AGENCY
Vice President and Chief Operation Officer Michel Wormser
Finance and Risk Management: Conor Healy, Moritz Zander
ACKNOWLEDGEMENTS
The World Bank Group greatly appreciates the close and fruitful collaboration with the Government of
Sierra Leone in the preparation of this Country Assistance Strategy, Progress Report (CASPR). This
CASPR was prepared by members of the World Bank Group‘s Sierra Leone Country Team, including
Vijay Pillai, Sergiy Kulyk, Renée Desclaux, Cyrus Talati, Roberto Panzardi, Susan Hirshberg, John Van
Dyck, Vivek Srivastava, Chris Gabelle, Jens Kristensen, Serdar Yilmaz, Qaiser Khan, Waqar Haider,
Yusuf Foday, Evelyn Awittor, Margaux Hall, Sidie Sheriff, Nikolay Nikolov, Gibril Jalloh, Chris Atim,
Christophe Lemière, Alan Moody, Hardwick Tchale, Bidemi Abioseh Carrol, Charles Annor-Frempong,
John Virdin, Thomas Losse-Mueller, Cari Votava, Michael Jarvis, Moritz Zader, Frank Armand
Douamba, Mary Agboli, Maria Miller, Anders Jensen, Conor Healy under the overall leadership of
Yusupha Crookes.
COUNTRY ASSISTANCE STRATEGY PROGRESS REPORT
TABLE OF CONTENTS
I. Introduction…………………………………………………………………………………………...1
II. Country Context and Recent Developments………………………………………………..............2
III. Progress towards CAS Outcomes and Portfolio Performance ……………. ……….……7
A. Progress against CAS Pillars: Human Development and Inclusive Growth………..………….7
B. Portfolio Performance ……………………………………………………………………….... 9
C. Lessons Learned……………………………………………………………………………….11
IV. Adjustments to the CAS moving forward…………………………………… ……………………11
V. Key Constraints and Risks……………………………………………………….…………….........15
Annex1a : CAS Results Matrix – FY09-12 Progress to date
Annex1b: CAS Results Matrix – FY12-13
Annex 2 : Managing the Extractives Boom
Annex 3 : Promoting Social Accountability for Development Impact
Annex 4: Progress on Millennium Development Goals Annex 5: CAS (FY10-FY13): Main Funding Sources
Annex 6: Changes in the Indicative Lending Program for the FY10-13 CAS
Annex 7: Status of Non-Lending Activities
Annex 8: Selected Indicators of Bank Portfolio Performance and Management Annex 9: IDA Base Case lending Program
Annex 10: Sierra Leone‘s Key Economic and Program Indicators
Annex 11: IFC Investment Operations for Sierra Leone
Annex 12: IFC‘s Committed and Outstanding Portfolio
Annex 13: IDA Operations Portfolio and Grants
Annex 14: Donor Partnership
Annex 15: Sierra Leone at-a-glance
MAP of Sierra Leone No. 33478
1
I. INTRODUCTION
1. This Progress Report assesses the implementation to date and the adjustments to the Joint
Country Assistance Strategy (CAS) of the World Bank Group (WBG) and the African
Development Bank (AfDB) for FY 2010-2013. 1 The CAS discussed by the Bank‘s Board on April 6,
2010 was based on the priorities identified in the second Poverty Reduction Strategy, Agenda for Change,
and focused on two pillars: (i) human development; and (ii) promoting inclusive growth. At midterm,
satisfactory progress has been achieved towards meeting the original CAS outcomes and milestones, and
this report proposes adjustments to the CAS in order to align WBG support with significant changes to
the country context.
2. Two Annual Progress Reports of the Poverty Reduction Strategy (PRS) were prepared by
the Government of Sierra Leone (GoSL) in 2010 and 2011. These Progress Reports were prepared
following a joint government/CSO/development partner consultative process, and both reports conclude
that satisfactory progress is being made in addressing priorities under the Agenda for Change. These and
other recent reports have informed this CAS Progress Report. The 2011 Integrated Household Survey
data analysis is currently underway, and the results are expected to be available over the coming months.
The latest available data indicates that during the CAS implementation period progress has been made,
albeit at different levels, on most indicators of growth, poverty, MDGs, fragility, investment climate, and
governance. However, there remain significant challenges and Sierra Leone is still one of the poorest
countries in the world with some of the worst human development indicators.
3. This CAS Progress Report is being prepared at a significant stage in the country‟s
development. Sierra Leone has enjoyed remarkable peace and stability since the end of the brutal civil
war, ten years ago. The country is now preparing for the third national elections to be held in late 2012,
and if it goes smoothly, Sierra Leone would have achieved the distinction of having run three successful
elections since the end of the conflict. This would be an important milestone in Sierra Leone‘s recovery
from ‗post-conflict‘ status. National stakeholders appreciate the importance of smooth and peaceful
elections, thus ensuring that no reversals take place in the progress that has been made during the past
decade. Another sign of the country‘s recovery is the steady improvement in the CPIA scores – in 2011
with a score of 3.3, Sierra Leone has moved beyond the threshold of Fragile and Conflict Affected States
(FCS)2. At the same time, the country is undergoing a major economic transformation underpinned by
the extractives sector – perhaps the most significant transformation the country is likely to see in a
generation. According to the latest projections, Sierra Leone is likely to record a 36 percent GDP growth
in 20123 – a one-time shift on account of the initiation of iron-ore exports. The extractives-driven boom
comes with its sets of opportunities and challenges, and making the transformation as smooth as possible
will be a priority for the country.
4. The Progress Report has been prepared as a good segway into the next CAS, which is likely
to be ready by FY14. Sierra Leone is currently initiating the preparation of its third PRS: the ―Agenda
for Prosperity‖, which is expected to be finalized in early 2013. The initial concept note prepared by the
Government of Sierra Leone (GoSL) and circulated as a basis for consultations has informed this Progress
Report. The next CAS will be developed once the third PRS has been completed and will follow the Joint
Staff Assessment Note (JSAN).
1 Due to slightly different timeframes of the WBG and AfDB for the CAS, this report is only for the WBG. AfDB is
doing a CAS Completion Report as its CAS is valid only until September 2012. However, the two teams have carried out joint assessments and have shared the drafts of each other’s reports. 2 Due to the presence of a UN political mission, it is still in the FCS list. The CPIA scores were 3.1 (2008), 3.2 (2009)
and 3.3 (2010). 3 Regional Economic Outlook, Sub-Saharan Africa, IMF, April 2012
2
II. COUNTRY CONTEXT AND RECENT DEVELOPMENTS
5. At the start of the CAS period, Sierra Leone was recovering from the impact of the global
financial crisis, and has since had mixed macroeconomic performance. Real GDP expanded by 5
percent in 2010 and 6 percent in 2011. The rebound in growth since 2010 has been broad-based, and was
led by the manufacturing, mining, construction and agriculture sectors. The increase in global fuel prices
in 2011 led to an increase in gas prices at the pump, which along with heavy government borrowing from
the Central Bank resulted in inflation, which peaked at 20 percent in early-2011 and then, declined
slightly to 17 percent in late 2011. Fiscal performance has been uneven in 2010 and 2011, and both years
ended with higher than anticipated deficits, borrowing and arrears. The first quarter of 2012 has seen a
clearance of 2011 arrears. While revenue performance has been better than projected, expenditures
mainly driven by capital spending on infrastructure have outstripped revenue collections. Fiscal
consolidation is likely to remain a challenge, not least with looming national elections. The Government
continues to maintain a flexible exchange rate policy to facilitate the adjustment of the economy to
external shocks. Despite the widening trade deficit in 2011, the Leone remained relatively stable,
depreciating by 4.8 percent against the US dollar. The reason was that the higher imports were largely
financed by capital inflows from mining and construction companies. The spurt in imports of machinery
and equipment by the mining companies resulted in a spike in the overall level of imports and an increase
in the current account deficit to 48 percent of GDP in 2011, as compared to 19 percent in 2010.
6. Mineral exports and prospective discovery of oil and gas are likely to transform the
economic landscape in the short to medium-term although they carry significant downside risks. Sierra Leone signed two significant mining concession agreements during the CAS period – with London
Mining Plc and African Minerals Limited, and both have started iron-ore exports. The production and
export plans under these concessions show rapid growth between now and 2015-16. Some estimates
indicate that Sierra Leone‘s iron-ore reserves measured at current prices are likely to be worth 40 times its
GDP in 2011. Based on available production plans of mining projects, the acceleration in mineral
depletion is likely to be quite pronounced, rising from 0.6 percent of GDP in 2011 to 14 percent in 2012
and possibly 21 percent in 2015. The uncertainty surrounding these prospective numbers is undoubtedly
high, as it depends on the highly volatile global commodity prices, which impact rents and the volume of
operations. In the oil and gas sector, recent public announcements of discoveries at the Mercury and
Jupiter off-shore wells continue to raise expectations, although the extent of commercial viability still
needs to be confirmed by further testing. The government is also currently evaluating bids received on
the nine new exploration blocks offered in a recent round of bids. These developments in the extractives
sector are very significant, and potentially transformative, and it is important to note that at the time of
preparation of the PRS2 and CAS, the full extent and potential of the extractive reserves were neither
fully realized, nor understood (as a result the CAS has little mention of the extractives sector) and the
sheer rapidity of these developments is noteworthy. These developments also come with significant
downside risks, which are examined later on in the report. Sierra Leone‘s candidacy under the Extractive
Industry Transparency Initiative (EITI) has been extended until December 2012. Toward achieving this
goal, the government has completed the staffing and housing of the EITI Secretariat, drafted an EITI Bill,
begun the reconciliation process to produce the Second Report that will cover 2008, 2009, and 2010, and
is in the process of recruiting a validator. A new online Mining Cadastre is expected to improve
transparency regarding mining licences.
7. Economic diversification takes on added significance in light of the likely extractives boom.
The agriculture sector has shown potential for being the driver of an ‗inclusive growth‘ strategy, with the
government‘s Smallholder Commercialization Program now being implemented across the country. The
prospects of increasing agriculture productivity starting from the current low base e.g. rice average yields
are low at 1 ton/ha, are enormous. Studies show that post-harvest losses in the sector amount to about 40
percent, due to lack of value addition and transportation. The ongoing risks associated with uncertain
3
land tenure systems, always a source of potential conflict, have been recently highlighted in connection
with recent large-scale private investments. This needs to be addressed in order to ensure that the
agriculture sector grows and benefits a large number of the population. The fisheries sector could be
another driver of growth, and the government has started to address the huge challenges of governance
and illegal fishing. During the CAS period, work on the policy, regulatory and institutional environment
in the fisheries sector has been taken forward. With strong government facilitation, other drivers of
growth may emerge, which could also benefit as a result of the extractives boom, if funds are not spent on
the recurrent side. The diversification of economic activities will be key in creating jobs and improving
livelihoods, as mining is unlikely to generate sustainable large-scale employment.
8. Progress is being made on most Millenium Development Goals (MDGs), but Sierra Leone is
unlikely to meet most of the MDGs by the target date of 2015. The ongoing analysis of the 2011
Integrated Household Survey data will provide the latest poverty data. While it is expected to show a
decline in poverty levels, it is unlikely that the country will meet the MDG target of 40 percent of the
population living below the poverty line by 2015. The latest comparable data is for 2003, i.e. soon after
the conflict, which showed poverty rates of 67 percent. Likewise, as per the latest available data, the
education and health MDGs are unlikely to be achieved. The country appears to be on-track for meeting
the gender equality MDG for primary education and the HIV prevalence rate. Considerable progress is
being made with other MDGs, but as noted earlier, the civil conflict through the 1990s has had a
significant impact on Sierra Leone. Making faster progress towards the MDGs takes on added
importance in order for the extractives boom to result in broad-based growth.
9. Nonetheless, Sierra Leone has made concerted efforts to address off-track MDGs, especially
on mortality. Further strengthening of delivery systems and citizen accountability will be crucial in
making rapid progress. Strikingly, the country‘s mortality numbers have only recently declined to the
levels, which existed before the onset of the civil war. The maternal mortality rates in 2010 are about the
same as in 1990, as they had spiked by 2000 due to the civil war. Sierra Leone has in fact lost two
decades in making improvements in maternal mortality, as a result of the conflict. Since the start of the
CAS, the country introduced the Free Health Care Initiative (FHCI) for pregnant and lactating mothers
and children under five. While the initial period of FHCI proved to be a ‗shock‘ to the health system, its
implementation seems to have stabilized but is facing capacity and implementation challenges. The
financial sustainability of FHCI, beyond the current support by development partners, needs to be
urgently examined. More recent efforts by GoSL to engage citizens and give them greater authority to
hold health service providers accountable is promising, and could well be critical in achieving significant
progress towards reducing maternal and infant mortality rates in the country. Existing partnerships are
underway on assisting governments to better harness the private sector in order to improve the quality of
health care for the poor.
10. Decentralized service delivery continues to be a key element in improving basic services in
education, health and water and sanitation, and the time may be ripe for further deepening of the
decentralization process. In many ways, Sierra Leone‘s progress on decentralization could hold useful
lessons for other post-conflict countries, especially in terms of deconcentrating powers by devolving
responsibilities to local authorities, improving service delivery, and strengthening accountability. A
majority of the functions envisaged for devolution under the 2004 Local Government Act (LGA) have
been devolved to Local Councils. The third round of elections of Local Councils, since the LGA are
planned for late-2012, as part of the national elections. Satisfaction levels with quality services provided
by elected councilors are likely to be a key determinant in voter preferences. Recent discussions amongst
stakeholders have highlighted that the aftermath of elections could be a good time to revisit the LGA and
reflect upon lessons from experience, in order to deepen the devolution process. Such a review should
look at devolving authority over line agency staff to Local Councils, and further refine the inter-
governmental fiscal transfer arrangements on the basis of a full understanding of local revenue collection
4
and management. The opportunities provided through the decentralization process to actively engage
with citizens and promote social accountability are being taken forward and are expected to continue.
11. There is a strong recognition in the country of the need to address the challenges of jobs,
especially for youth. According to demographic data, about one-third of Sierra Leone‘s population is in
the 15-35 year age group, of which an estimated 40 to 50 percent are considered unemployed and
underemployed. With prospects of rising national wealth from the extractives sector, youth expectations
are only going to rise, with a risk of social and political alienation if such expectations are not met.
However, the extractives sector is likely to employ only a few thousand people, as the iron-ore projects
currently employ only about 5,000 workers. This generation suffered from the civil war and did not have
education opportunities, so they may not possess the necessary skills needed for the job market. During
the CAS period, the government has prepared a new Employment Policy, set up a dedicated Youth
Ministry and a National Youth Commission, and taken forward targeted youth employment programs.
Nonetheless, the challenge of youth unemployment remains enormous.
12. Gender equality continues to be a challenge, as well as reducing the unacceptably high rates
of maternal mortality in the country. The FHCI is targeting the latter challenge, although there is a
continuing need for citizen engagement in order to increase accountability and service delivery around the
FHCI. During the CAS period, the government has prepared a National Gender Strategic Plan, but
implementing it requires resources and capacity. The Sexual Offenses Bill has been submitted to
Parliament to address the issue of gender-based violence. In the political sphere, an active lobby is urging
a 30 percent representation of women4 in the upcoming national elections – whether Parliament will enact
the necessary legislation in time for the elections remains uncertain. A recent assessment on the barriers
to economic inclusion of women shows that Sierra Leone compares favorably with many African
countries in ensuring that the laws do not differentiate between men and women in terms of their ability to
work and run a business5. However, customs and traditional practices do not always allow equal
opportunities for women. Further, studies to date on decentralization have found that citizens, and
women in particular, lack the confidence in engaging authorities and demanding better governance. Yet,
gender equity has progressed well with 49 percent of pupils in primary education being girls and 45
percent in secondary education, but this ratio drops at the tertiary level. There remains a critical need to
ensure that Sierra Leone‘s development progress accrues to women as well as men.
13. Private sector activity has increased significantly with continuing improvements in the
investment climate. The country‘s Doing Business scores have improved significantly during the CAS
period, and in the 2012 Doing Business report, Sierra Leone was ranked among the top ten global
reformers. These improvements would need to be sustained for at least the next five years in order for the
country to become one of the investment destinations in Africa. In recent years, besides the extractives
sector, there have been large private investments in the agriculture and hospitality sectors. Feasibility
studies are also currently underway for private investments in energy, including hydropower,
infrastructure, including a new airport for Freetown, and manufacturing projects, including a possible
steel plant. At this stage, an important priority for the country is to increase its ability to attract quality
investors, and ensure sufficient transparency and competitiveness in selecting them, as well as actively
manage and enforce contractual obligations. If regulatory reforms and infrastructure deficits are
addressed, then the private sector could be a big driver of growth, diversification and job creation.
14. The infrastructure destroyed during the civil war is currently being rebuilt, while at the
same time infrastructure needs for the likely economic transformation require urgent attention. Infrastructure remains a binding constraint for growth and transformation – simulation studies indicate
that if the country‘s infrastructure could be improved to the level of the African leader – Mauritius –
4 About 19 percent of elected local councilors are currently women (AfDB: Country Gender Profile, 2011)
22. The WBG country program has strengthened the focus on the delivery of results. The
introduction of Performance Based Financing in the health sector has enhanced incentives for service
providers, and has started showing improvements in the level and quality of services provided by clinics
(Reproductive and Child Health Project Phase 2). Addressing the value chain in the agriculture sector is
demonstrating a positive impact on the livelihoods of farmers being supported all along the value chain
(Rural & Private Sector Development Project). There is also greater attention to selectivity in the Bank‘s
program with recent exits from urban and water sectors. There has also been a strategic use of Technical
Assistance (TA) in helping with the production of vital statistical data from the household living
conditions survey, and for it to inform the preparation of the PRS3. The Bank will also help strengthen
the results focus in the PRS3, specifically through the preparation of the Results Framework for PRS3.
23. IFC, together with the Department for International Development (DfID) completed the
implementation of the “Removing Administrative Barriers to Investment” (RABI) program during
the CAS period. The three year investment climate program focused on improving the business climate
as measured by ―Doing Business‖, enhancing the image of Sierra Leone as a destination for productive
investment and developing institutions that support private sector development. Furthermore, building on
its partnership with other partners, IFC, DfID, the Soros Economic Development Fund and Germany‘s
Gesellshaft für Internationale Zusammenheit have supported the annual Business Plan Competition
(Business Bomba). In addition IFC continues to coordinate the PSD Donor Coordination Group. The
group meets regularly to ensure alignment among partners, as well as with GoSL priorities. The funding
for most of IFC‘s advisory activities in Sierra Leone is from the Conflict Affected States Initiative
(CASA) which is a multi-donor facility with funding from The Netherlands, Norway, Sweden, Ireland
and the United Kingdom. IFC and the Bank are currently coordinating efforts to address the needs of the
energy sector.
24. During the first two years of the CAS period, other parts of the World Bank Group have
contributed significantly to the CAS outcomes. MIGA issued guarantees to four projects with a total
investment volume of US$7.8 million. MIGA covered investors from Switzerland, Denmark and
Mauritius and investments were made to a mobile payment and banking services provider, a transport and
logistics firm, a vehicle importer, and a liquefied petroleum gas distributor. All guarantees were
underwritten under MIGA‘s Small Investment Program. Going forward, MIGA will continue to maintain
an active pipeline and will seek to support further and catalyze foreign investment that promotes
9
employment and growth. The World Bank Institute (WBI) has undertaken innovative work in the areas
of access to information by supporting the Access to Information Bill, which has just been resubmitted to
Parliament after it had lapsed, strengthening Parliamentary engagement, especially capacity of the Public
Accounts Committee, and supporting reforms in procurement and contract monitoring by CSOs,
especially in the roads sector. WBI will launch a Leadership for Results Program in support of the new
Pay and Performance Project.
25. The World Bank Group has deepened its partnership with other development partners, and
has become the largest donor in Sierra Leone. As per MoFED figures, during the CAS period the
World Bank has been the single largest development partner in Sierra Leone, with a share of 22 percent of
total aid disbursements (see Annex 14). The World Bank, AfDB, DFID and the European Union carry
out joint assessments for budget support and coordinate the dialogue with GoSL under the Multi-Donor
Budget Support (MDBS) framework. The Bank, as the lead partner in the energy sector, has initiated a
sector coordination group with the Ministry of Energy and Water Resources. The Bank actively
facilitated the formation of a Development Partner Governance and Accountability Working Group to
discuss strategic and technical issues in governance among partners and then, directly with GoSL
counterpart institutions. The Bank manages co-financed activities in the areas of PFM, decentralization
and extractive industries. Partnership with the UN has deepened and joint analytical work is being
considered, as well as using UN systems for implementing some elements of Bank-supported programs.
The Bank and the UN also co-chair the Development Partners Coordination Committee and quarterly
meetings are chaired by the Minister of Finance and Economic Development. The dialogue with non
state actors has been enhanced through a specific focus on the extractives sector, governance and
transparency.
B. Portfolio Performance
26. The Sierra Leone portfolio is performing well and has achieved consistently above-average
disbursement rates. During the CAS period, it has made striking progress in addressing „problem
projects‟. The Sierra Leone Portfolio is currently comprised of 17 large active investment operations
with net commitments reaching US$350 million. In addition, IDA has provided US$51 million as budget
support during FY10-12. The World Bank extends its support through various instruments ranging from
budget support, investment lending, technical assistance and knowledge products. As of the end of March
2012, the undisbursed balance under the portfolio was US$99.4 million. The portfolio is currently sound
with no overage project and low commitments at risk. Four projects including the Bumbuna Environment
and Social Sector Investment Loan, GEF Biodiversity, Wetlands Conservation and the Education Fast
Track Initiative (EFA/FTI) Projects show marginally satisfactory ratings. In terms of Development
Objectives (DO) and Implementation Performance (IP), about 76 percent of the projects are rated
satisfactory including one operation being highly satisfactory and 24 percent of the projects are currently
rated as marginally satisfactory, with only one operation rated unsatisfactory. Going into the CAS, about
50 percent of the projects in the country portfolio were ‗problem projects‘ (60 percent of the amount was
under ‗problem project‘ category), and this figure has been sharply reduced to 0 percent in FY12 (Annex
8). Sierra Leone‘s better than average performance in the Africa Region can be attributed to several
factors including sound project design and Monitoring and Evaluation /Results Frameworks, satisfactory
PMU performance, effective and efficient supervision and implementation support by task teams, and
effective working relationships with Government counterparts. The Bank‘s Country Office now includes
a team of staff covering most sectors, who can help the country program move to true ‗implementation
support‘.
27. Most of the projects in the portfolio face risks related to the Country Environment. Long
term risks have been identified under the Rural and Private Sector Development Project due to
outstanding issues in clarifying implementation arrangements. These are expected nonetheless to be
10
resolved soon. Other risks under the portfolio include effectiveness delays, as under the Extractive
Industries Technical Assistance Project and the Youth Employment Support Project. Issues related to
legal covenants are being addressed under the Bumbuna Environment and Social Sector Project, as well
as under the Financial Sector Support Technical Assistance Operation. Project management and fiduciary
issues are currently being tackled under the EFA/FTI Education Program. Finally, the Financial Sector
Support Project was declared effective on July 20, 2011 and disbursements are expected to start, soon. A
recent review of financial management arrangements under Community Driven Development type
projects did not raise any significant fiduciary concerns.
28. The Trust Fund Portfolio in Sierra Leone is relatively large with 36 active Recipient
Executed Trust Funds (TFs), 27 of which are Multi-Donor Trust Funds (TfS). Several recent TFs
have helped leverage the small IDA national allocation and promote CAS objectives. In FY11, the Bank
was able to leverage the national IDA allocation by three times through Regional IDA allocations and
Trust Funds. More recent TFs have been selected strategically to fit into country program priorities, and a
continued close scrutiny of new TFs has helped limit supply-driven initiatives. Total commitments under
the Trust Fund Portfolio currently stand at approximately US$96 million with about US$37million
disbursed to date. While a number of these Trust Funds are associated with an active IDA operation,
others have been approved as stand-alone Trust Funds in support of Technical Assistance and Institutional
Reforms, Governance, as well as development activities in the Social Sectors, including provision of
Safety Nets and Reproductive Health, the Extractive Industries, Education, Energy and Infrastructure.
29. During the CAS period major adjustments have been made to implementation
arrangements following a Country Portfolio Performance Review (CPPR) in 2011 and a mini-
CPPR in early 2012. Significant actions have been taken following the CPPR to strengthen the
effectiveness and impact of the Bank‘s program. Among the noteworthy actions already taken: (i)
Bank budget support was moved as of 2012 to the first quarter of the GoSL financial year to enhance
predictability (budget support during the past five years had been disbursed at the end of GoSL fiscal
year); (ii) the IPFMRP project implementation was mainstreamed at the Ministry of Finance and
Economic Development to limit stand alone Project Implementation Units; (iii) a sharper focus was
placed on results and accountability through initiatives such as Result-Based Financing in health and
review of social accountability in the country program; (iv) the focus on innovation was strengthened
such as through the ongoing mapping of facilities providing basic services to strengthen planning and
accountability; and (v) regular training sessions by Bank staff of procurement staff in project
implementation agencies. These actions have substantially enhanced the results-focus of the Bank‘s work
in Sierra Leone. The next CPPR is planned for early 2013, and it is expected to inform the preparation of
the next CAS.
30. IFC continues to support Sierra Leone‟s efforts to improve the business environment and
the country was named as one of the global top reformers in Doing Business 2012. IFC supported the
Credit Reference Act and the development of a private credit bureau in Sierra Leone. During the CAS
period, IFC in collaboration with the Bank of Sierra Leone (BSL) developed the leasing framework,
which enables BSL to supervise leasing companies. Business Edge (―BE‖) and the SME Toolkit were
launched on March 03, 2010 and implementation of Business Edge is in full gear. Four consulting firms
have been chosen as Business Edge franchisees and IFC supported ―Business Bomba‖, a countrywide
Business Plan Competition. In addition, IFC has provided lines of up to US$1 million each to the Sierra
Leone Commercial Bank and Rokel Commercial Bank under the Global Trade Finance Program (GTFP),
both of which are state-owned banks. Nonetheless, both banks have been repeatedly noncompliant with
IFC‘s financial covenants and the trade lines to both SLCB and RCB were frozen in November 2009.
EcoBank SL also received approval for an IFC GTFP trade line of up to US$2 million in available trade
support, which will help foster external trade. IFC is also considering a US$5 million line of credit to
Union Trust Bank to enhance support to Small and Medium Enterprises (SMEs) in Sierra Leone.
11
31. In recognition of the capital constraints of SMEs, IFC developed an initiative (IFC
Ventures) to provide risk capital and advisory services to small businesses in challenging countries.
Sierra Leone is one of the four beneficiaries of IFC ventures with an initial investment of US$13.5
million. The long-term goal of the SME Ventures Program is to help revive the private sector, which was
seriously destroyed by more than 10 years of civil war. In the manufacturing sector, IFC committed a
US$110 million equity investment in Heidelberg Cement to modernize and increase the capacity of the
company's operations in 7 countries in Sub-Saharan Africa, including Sierra Leone. IFC‘s Asset
Management Company (AMC) also supported this transaction with a US$35 million equity investment.
In 2011, IFC concluded a $2.8 million loan to Vitafoam Nigeria to expand its operations to Sierra Leone.
The Vitafoam Sierra Leone Limited project involves US$6.3 million new foam production and a related
products plant in Freetown for local sales in Sierra Leone and for exports to Liberia and Guinea.
C. Lessons Learned
32. A number of lessons have emerged from the CAS implementation, some of which may have
wider resonance for other post-conflict countries. First, during the CAS period, Sierra Leone would
be making a transition out of the FCS category – it has moved out of the category of countries receiving
exceptional allocations but still has low CPIA score. Experiences in successfully moving countries out
of the FCS group are still limited, so for the international community Sierra Leone could be an interesting
case study to focus attention and learn lessons. Second, this is the first Joint Country Assistance Strategy
for the WBG and AfDB in Sierra Leone. It has provided opportunities for the two institutions to work
together and develop synergies – but deriving optimal benefits of such joint strategies requires
governments to effectively lead donor coordination processes at the sector level, and also requires
sufficient forward planning in order to allow joint missions (the MDBS and education sectors are
undertaking joint assessments). Third, Sierra Leone will continue to require the full menu of support
instruments available to the Bank – financing quality knowledge products and convening power. In
sectors, like health, where the Bank is increasingly combining them, the nature of the dialogue with the
government has changed qualitatively. Fourth, low institutional capacity in government and fiduciary
risks are continuing concerns with portfolio management. This can often shape the full nature of our
dialogue, unless efforts are made at several ends to move the agenda forward e.g. ongoing work with the
Auditor General‘s Office and with the National Public Procurement Agency (NPPA) to address some of
the underlying systemic issues is now a key area of Bank attention, and the ACC is supported through an
IDF Capacity Building Grant to improve the quality of system and process reviews and the monitoring
and compliance responsibilities of both the ACC and the respective MDAs. Finally, the challenge of
collective action (i.e. different agencies pulling together in delivering on an agenda) both within
government and within sector teams in donor institutions does require continuing facilitation and use of
‗soft skills‘ – e.g. as WBI‘s Leadership for Results‘ efforts in order to facilitate collective action in the
area of public sector reforms could hold useful lessons. Sierra Leone will require such ‗soft‘ initiatives in
order for a smooth economic transformation.
IV. ADJUSTMENTS TO THE CAS MOVING FORWARD
33. The CAS objectives and priorities remain fully relevant, but two important adjustments are
being proposed in light of the significant changes in the country context and key lessons learned, so
far. The CAS priorities were fully aligned to the Agenda for Change (PRS2) priorities, and both pillars –
human development and promoting inclusive growth remain priority development challenges for the
country. So the Bank would continue to support these pillars during the remaining CAS period. The
Agenda for Change is for the period 2007–2012, and the government has currently initiated work on the
successor PRS3, which is expected to be finalized in early 2013. An initial concept note for PRS3
recognizes that PRS3 does not just represent an incremental change in light of the changes in the country
context, principally the new developments in the extractives sector. The outline of PRS3 places emphasis
on: managing the resource boom; economic diversification and jobs; improving competitiveness; human
12
development; social protection; and governance and transparency. In light of the changes in the country
context and as a segway into the next CAS, the Progress Report proposes to make some important
adjustments for the remainder of the CAS period.
34. The first adjustment is about adding a third pillar to the CAS on “Managing the extractives
boom”. This would align the CAS more fundamentally to the opportunities and risks of the extractives
boom and also to the early vision set out in the draft PRS3 – the Bank would thus be ‗ahead of the curve‘
in making an important contribution towards smooth transformation, and this would enhance the overall
Bank impact in Sierra Leone. Some of these changes have already started happening in the Bank
program. The growth in the extractives sector described more fully in Annex 2 provides a once-in-a-
generation opportunity for Sierra Leone to aspire to Middle Income Country status, but at the same time it
comes with significant downside risks relating to the ‗resource curse‘ given that the country‘s recent
tragic history of conflict has had some links with the minerals sector. The Progress Report proposes that
smooth economic transformation and managing the risks will require addressing five priority areas.
Figure 2 provides a framework for looking at the economic transformation. The specific activities being
supported by the Bank during the remainder of the CAS period are described below. This support would
be provided through targeted instruments: IDA and Trust Fund resources, restructuring of ongoing
projects to address emerging challenges, provision of high-impact knowledge products, and enhanced
policy engagement between stakeholders. Selectivity in the program is being strengthened by using this
framework to understand the relevance and strategic importance of existing and new Bank operations.
i. Strengthening the regulatory and institutional capacity in the extractives sector: in recognition of
changes taking place in the extractives sector, the Bank program has scaled-up its engagement with the
extractives sector. An IDA Additional Financing and a co-financing with DFID were undertaken in FY12
which are now helping GoSL to strengthen the regulatory and institutional capacity within government to
manage the sector effectively. In addition, the Bank is providing experts to strengthen the capacity in
government to negotiate mining licenses. The budget support program is also starting to focus on the
policy areas in the extractives sector. Together, these constitute important elements of the Bank support
during the remainder of the CAS period.
ii. Economic diversification through private sector development and establishment of ‗growth
poles‘: The appreciation of the real exchange rate which could result from the impending extractives
sector boom would render many tradeable sectors uncompetitive unless special efforts are made to
strengthen productivity, promote economic diversification especially in sectors less vulnerable to trade
competition and to strengthen significantly and expand the pool of skilled labor. The significant
resources which this will require could well be sourced from the windfall revenues associated with the
extractives boom. Sectors like agriculture, tourism and fisheries may offer some possibilities for
economic diversification and therefore broader based growth, but this will be critically dependent on
maintaining and deepening competitiveness and increasing productivity. During the remainder of the
CAS period, the Bank will support the government with knowledge products which could help identify
opportunities for economic diversification and making full use of ‗corridor development‘ and ‗growth
poles‘ (see Figure 3). Through updating the Diagnostic Trade Integration Study (DTIS), another
analytical product will be to look at specific issues of competitiveness in some of the potential growth
sectors. This could inform future government plans and also identify private sector opportunities.
iii. Infrastructure for the extractives sector: The growth and expansion plans of the iron-ore
companies require timely provision of reliable energy and transportation infrastructure (to get the ore to
the port and adequate port facilities to export). The practice of balkanizing infrastructure planning and
provisions may not be in the best long-term interest of the country, particularly given the potentially large
number of mining licenses and operators. Through Bank support the government has started a process of
‗Public-Private Sector Roundtables‘ to address some binding constraints for private sector development
with the first focusing on infrastructure. There would also be an opportunity to strengthen regional
13
infrastructure linkages with Guinea and Liberia for iron-ore production. The Bank will also be providing
‗just in time‘ advice to the government to look at options for having multiple-use and multiple-user
infrastructure and innovative options for financing such infrastructure. The government would need to
continue to lead the process of infrastructure development from the perspective of the broader needs of
the country.
Figure 2: What is involved in successful economic transformation
iv. Revenue management and governance: Transparency will be key for Sierra Leone to avoid the
risks of the ‗resource curse‘. The Bank will continue to support the EITI process with enhanced provision
for CSO engagement, and support through measures like disseminating the Citizens Budget, and contract
monitoring initiatives. The Bank will be providing TA on strengthening the Public Investment
Management capacity, and to help the government generate options for managing the fiscal space.
v. Effective use of revenues to deliver results: Especially in the human development sector,
14
the Bank will be providing TA and undertaking knowledge work to help the government prepare strong
credible sector plans and expenditure frameworks in anticipation of rising domestic revenues.
Specifically, this would be focused on health financing issues and opportunities for scaling-up safety nets,
including addressing youth employment from prospective revenues. In addition, knowledge work in the
education sector would help the government prepare skilled workers for the emerging job market.
.
Figure 3: A „Growth Pole‟ Development Strategy for Sierra Leone
New iron ore & bauxite projects
Oil Exploration
Diamond Mining (mostly artisanal)
Gold Mining (mostly artisanal)
New agribusiness projects
NOTES:
A ‘growth pole’ is a geographic location where productive economic activities are rapidly expanding fueled by a combination of economies of scale, economies of agglomeration, and backward/forward linkages.
Potential ‘growth poles’ could be around the north / west where the iron ore and agricultural projects are located, and in the south around commercial mining, agribusiness and potential hydrocarbon resources.
35. The second adjustment is about putting emphasis on building capacity for improved
governance and service delivery within government and within civil society – in other words
emphasizing both the „supply‟ and „demand‟ side of good governance. Ten years after the end of
conflict, it is important to address the severe deficits in public sector capacity and performance. Rising
revenues will further stretch the already limited capacity of the public sector. Following a recent request
from GoSL, the Bank has started engaging in the area of public sector reforms – an area not identified as
a priority for the Bank under the CAS. But given the pressing needs in this sector, the Bank has prepared
an innovative results-based operation, the ―Pay and Performance Project‖ (see text box). This operation
is likely to be central in helping the government deliver on its reform agenda. This project would work in
close synergy with other sector operations of the Bank so that the reforms being taken forward at the
central level start demonstrating impact at the level of individual Ministries and Agencies of the
government. At another level, a recent review of social accountability / Demand for Good Governance
(DFGG) work in the Bank‘s program in Sierra Leone has identified opportunities for the Bank to support
the government‘s growing commitment to engage citizens as partners in monitoring development. Annex
15
3 spells out these opportunities in detail, but Bank support in strengthening social accountability will now
focus on promoting accountability in the ‗policy space‘, reinforcing citizens accountability to improve
health sector outcomes, and improving coherence and knowledge-sharing on DFGG across Bank
operations. For example, in the health sector, Sierra Leone still lags behind in meeting the MDGs,
accountability gaps with the FHCI have been documented, and the government has shown a keen interest
in engaging citizens to improve service delivery. This sector may present a key opportunity for
strengthened DFGG engagement.
Box: The Pay and Performance Project: The Bank Responding Strategically and Innovatively
IDA has initiated its involvement in public service reform in Sierra Leone with the US$17 million Pay
and Performance Project. The Project supports and is fully aligned with the Government‘s flagship
program ―Improving Productivity through Management and Pay Reforms‖ and it focuses on the three
reform areas in the government‘s program: (i) Pay Reform; (ii) Recruitment and Staffing; and (iii)
Performance Management and Accountability.
The Project uses a results-based approach that rewards the achievement of an agreed set of key milestones
and results through the use of Disbursement Linked Indicators (DLIs). The objective of the pay reform
sub-component is to improve external competitiveness and internal equity to enable the public service to
attract and retain qualified professionals. The objective of the recruitment and staffing sub-component is
to increase the very low numbers in middle and senior level positions. Between 800-1000 critical
positions in the ―missing middle‖ will be filled via open, competitive and merit-based procedures. The
objective of the performance management and accountability sub-component is to improve government
productivity, increase citizens‘ trust in government and institutionalize transparency and accountability. A
flexible Technical Assistance component complements the results-based approach by financing selected
interventions (strategic communications program and social accountability measures).
This operation is an excellent example of how the Bank has strategically and innovatively responded to
government request for support. A strong public sector is key to smooth economic transformation, and
the Bank has built upon global experiences with public sector operations in preparing this project.
36. These adjustments would bring the CAS in closer alignment with the Bank‟s new Africa
Strategy. The proposed adjustments to the CAS lay emphasis on three priorities in the Africa Strategy
‗Africa‘s Future and World Bank‘s Role in It‘ – competitiveness and employment; vulnerability and
resilience; and governance and public sector capacity. The forward-looking results matrix in Annex 1A
covers FY13 and includes only indicators for the WBG, that is the World Bank and IFC. AfDB is not
included. To the results matrix, the following changes have been made: Primary Gross Enrollment Rate
(PGER) has been replaced with Primary Completion Rate (PCR) as PGER data are unreliable and with
significant overestimation of enrolment numbers. PCR is a better measure of efficiency and quality. Spot
checks for teacher attendance twice a term for each school in all districts by 2013 has been dropped as it
is not related to the WBG program. Since there is no law in place on the free health care initiative
enforcement, the related indicator has been replaced by an indicator on social accountability monitoring.
The indicator from the energy sector has been dropped due to unavailability of data and so has the
indicator for the transport sector related trunk roads in good and fair condition. In the cash-for-work
programs, targets have been increased substantially. The indicator on procurement contracts under
decentralization has been dropped given the concerns over reliability of the data and the indicators on
Local Councils and service output targets have been slightly reworded. Under decentralization, an
indicator on social accountability has been added to strengthen that aspect in the results matrix. An
indicator on public disclosure of fishing licenses and revenues has been added to fisheries, and an
indicator on collection rates to energy. Further, a third pillar has been added to the forward-looking matrix
16
regarding the new direction of the CAS to align to and support the sustainable management of natural
resources, especially in mining. Four indicators have been added in this regard.
V. KEY CONSTRAINTS AND RISKS
37. The risks identified in the CAS remain relevant, but there has been some improvement in
some of the risks and Bank-supported mitigation measures are being implemented. The six risks
included in the CAS were: (i) weak governance and accountability structures; (ii) limited capacity to
deliver services and manage public resources; (iii) youth employment and social instability; (iv) economic
shocks; (v) regional volatility, including international drug trafficking; and (vi) climate change and
disaster risks. As noted earlier, during the CAS period the renewed emphasis on social accountability and
promoting transparency would continue to be key in managing the weak governance and accountability
structures, enforcement of systems, rules and procedures. The Bank is now helping GoSL address more
frontally the capacity and effectiveness of the public sector, through strategic responses under various
projects e.g. in fisheries, decentralization, and public sector reforms. The Youth Employment Support
Project was prepared and delivered during the CAS period as a response to the challenge of youth
unemployment, and the ongoing analytical work on review of safety net systems will be informing the
government‘s plans in the PRS3. The Bank increased the size of its budget support in response to the
exogenous fuel and food price shock, and mobilized advice for government on short-term coping systems
for the country. The sub-region is now more peaceful and scope for cooperation has widened, although
recent developments in the Liberia – Cote d‘Ivoire border underscore the fragility of peace in the sub-
region. Nonetheless, these risks still remain valid for the remainder of the CAS period, and the Bank
along with other partners would be helping the government manage them.
38. An additional risk which is being identified at this stage of CAS implementation is about
avoiding the „resource curse‟ as a result of the extractives boom. This is likely to be the most
significant development challenge for the country in the foreseeable future. Economic development in
Sierra Leone could be affected by the dynamics of mineral sector growth. Political lobbying and rivalries
as well as social exclusion around extractives may also increase the risk of conflict. While infrastructure
remains a binding constraint for growth, the mineral sector is likely to divert human capital,
entrepreneurial and investment resources from other sectors and lead to spatial disparities and regional
tensions. Effective collection of all revenues due to the state and allocation and distribution of
government spending will need to be optimal across sectors to achieve economic efficiency and inclusive
growth. Before the receipt of large windfall revenues, monitoring of licenses and contracts, projects and
operations will be necessary elements of a broader governance strategy to deal with the new challenges.
The proposed adjustments to the CAS by adding a third pillar on ‗managing the extractives boom‘ should
help the country manage this risk, especially anticipatory spending and pressures on the wage bill. The
Bank and partners will undertake further ‗fragility risk‘ assessments as a result of the resources boom, and
this is expected to inform the preparation of the next CAS.
17
CAS Progress Report - Annexes
18
Annex 1(a) : CAS Progress Report Results Matrix - July, 1 2009 to May 31, 2012
JAS Objective 1: Human Development
Selected PRSP II
objectives &
indicators25
Key Issues from PRSP JAS Outcomes &
Indicators
JAS
Milestones
World Bank
Group/AfDB
Instruments 1. Increased access to
and completion of
primary schooling
especially for girls and
out of school children
Lack of sufficient and
adequate inputs at school
level; poor internal
efficiency of the system
and weak management of
information and delivery
systems.
Low human resource
capacity at all levels,
shortage of teaching and
learning material, high
pupil ratios in schools,
poor accountability, low
primary school
completion rates and high
repetition and drop-out
rates.
1. Improved capacity to
effectively and efficiently
deliver education
1.1 Primary gross enrollment
rate increased from 104 % in
2007 to 106 % in 2013. (WB)
Achieved. 1068
Governance/Gender 1.4 Enrollment for girls at JSS
increased from 40.9% in 2008
to 43.9% in 2013. (WB)
Achieved. 45%
1.5 Spot checks for teacher
attendance twice a term for
each school in all districts by
2013 (WB) No data9
Construction
of 318
classrooms in
primary and
secondary
schools by
2011. (WB)
Not achieved.
285
classrooms
under
construction.
850,000 sets of
learning
materials
distributed to
primary
schools by
2011. (WB)
Not achieved.
TLM not 100
%
distributed.
Fee free
campaigns
conducted by
all LCs by
2011. (WB)
Not achieved.
14 LCs10
Teacher
payroll and
salary
verification
exercise
completed and
maintained by
2011. (WB) Not achieved.
Verification
exercise on-
going.
On-going Projects/TFs:
FY09 EFA-FTI Catalytic
Fund. (TF) (WB)
FY02 Rehabilitation of basic
and non-formal education
and vocational training
project (education III)
(AfDB)
AAA: Public Expenditure Review
(WB)
Partners: AfDB, DfID, EU, UNDP,
UNICEF, Irish Aid
8 GER is likely to be overestimated and in the forward-looking matrix replaced by Primary Completion Rate (PCR).
9 Spot checks not part of the WB program and MoE program.
10 Indicator dropped from WB program and now funded by UNICEF.
19
2. Improve the health
status of population
and quality of health
services
Limited financial and
geographical access to
health facilities.
Inadequate access to free
health care for vulnerable
population, limited
availability of high impact
interventions and shortage
of drugs, equipment and
supplies
Shortage of critical health
professionals, inadequate
support/ supervision at all
levels and weak personnel
management
Weak coordination among
programs and donors
2. Improved access to basic
health services
2.1 Children receiving Penta-3
vaccination before 12 months
of age increased from 54.8 %
in 2008 to 85 % in 2013.
(WB) On track. 82.9%
2.2 Children under 5 who slept
the previous night under an
insecticide treated net
increased from 26% in 2008 to
80% by 2013. (WB) On
track. 73%
Governance/Gender
2.4 Deliveries conducted in
health facility increased from
42% in 2008 to 70% in 2013.
(AfDB/WB) On track. 54 %
2.5 Enforcement of law for
free access to health care for
lactating mothers and children
by 2013. (WB/AfDB) On
track.
Clinics having
all essential
drugs available
(10 drugs)
increase from
32 % to 90 %
in 2011. (WB)
Achieved.
Restocking in
Jan 2012.
Number of
health
facilities
providing
basic
emergency
obstetric care
increase from
0 to 45 in
2011. (WB)
Not achieved.
42 PHUs.
Information
campaign on
free access to
health care by
2011.
(WB/AfDB)
Achieved.
Nationwide
campaign
conducted in
April 2010.
Ongoing Projects/TFs: FY06 Strengthening District
Health Services (AfDB)
FY 08 Reproductive and
Child Health TF (IDA)
Pipeline Projects: FY 10 Phase II of
Reproductive and Child
Health TF (WB)
Support to Manu River
HIV/Aids Project (regional)
(AfDB)
AAA: Health Sector Review,
Public Expenditure Review
(WB)
Partners:
DfID, EU, Irish Aid,
UNFPA, UNICEF, USAID,
WHO
3. Developed
framework for
management and
supply of safe water
and sanitation
Lack of water policy as
well as organized legal,
regulatory & institutional
frameworks
Deficiency in both urban
and rural water supply
Limited functional water
supply infrastructure.
3. Increased household
access to safe drinking water
and sanitation
3.1 People with access to
water increased from 64,000
in 2009 to 115,000 in 2013 in
targeted areas. (AfDB/WB)
Achieved. 192,000
3.2 People with access to
improved sanitation increased
from 25,000 in 2009 to 35,000
by 2013. (AfDB/WB)
Achieved. 110,000
Governance/Gender
3.3 Commercial and technical
Volume of
water supplied
to Freetown,
increased from
95,340 m3/day
to 120,000
m3/day by
2011. (WB)
No data
630 improved
community
water points
constructed or
rehabilitated
by 2011. (WB)
Not achieved.
400
Ongoing Projects/TFs: FY07 Freetown water
supply rehab. (TF) (WB)
FY10 Water Supply and
Sanitation (AfDB)
Pipeline Projects: FY11 Rural Water Supply
and Sanitation (AfDB)
AAA: Public Expenditure Review
(WB)
Partners: China, DfID,
UNICEF
20
losses reduced from 60% in
2007 to 38% in 2013
(Freetown). (WB) On track.
50 %
House
connections
with metering
in Freetown
and Guma
Valley by
increase from
4,800 in 2007
to 11,100 in
2011. (WB)
Not achieved.
7,500 4. To reduce the
incidence and
consequences of
extreme poverty
High unemployment and
underemployment,
particularly among the
young.
Acute skill deficiency
among the ―lost
generation‖ who grew up
without education during
the war.
4. Improved capacity to
manage social risks
4.1 Cash for work programs
create 2.5 million person days
of employment in target areas
by 2013 with increased
sustainability (of which 1
million women) from 0 in
2008 (AfDB/WB) Achieved.
2,707,000 person-days
Governance/Gender
4.2 Number of women days
employment created through
cash for work program
increased from 0 in 2008 to
250,000 in 2013 in target
areas. (WB) Achieved.
645,000 women-days
NaCSA to
conduct
sensitization
program in
targeted areas
to ensure 75
percent of
households are
aware of
program by
2011.
(AfDB/WB)
Achieved. 90
%
NaCSA to
establish
program to
monitor
participation
of women in
cash for work
scheme by
2011. (WB)
Achieved.
NaCSA has a
system for
monitoring
the
participation
of women in
place.
Ongoing projects/TFs:
FY03 National Social
Action Project. (WB)
Pipeline:
Youth Employment and
Skills (with CRW)
AAA:
PER; cash for work
evaluation; gender
assessment (WB)
Partners:
UNICEF, WFP
5. Ensure sustainable
human development
through the
decentralized
provision of improved
social services.
Improve and expand
sound public financial
management
Local Councils
empowered with
responsibilities, revenue
authority and financial
support and encouraged to
become transparent,
accountable and capable
institutions demonstrating
inclusive leadership at the
local level.
Budget resources are now
concentrated in central
government agencies and
allocated to localities on
an ad-hoc basis not
reflecting relative service
5. Improve predictability,
expenditure control and
transparency in
decentralization and public
resource management
5.1 Number of councils with
integrated development plans
and budgets increased from 0
in 2009 to 19 by 2013. (WB)
Achieved. 19 LCs
5.2 Number of councils
receiving timely transfers from
crisis response facility
increased from 0 in 2009 to 19
Training to all
LC s and
relevant
MDAs in core
functions by
2011 (WB)
Not achieved.
Capacity-
development
fund under-
utilized
Domestic
revenues
transferred to
local councils
On-going Projects/TFs:
FY03 National Social
Action Project Additional
Financing (WB)
FY04 Social Action Support
Project (AfDB)
FY09 Integrated Public
Financial Management
Project. (WB, co-financed
by DfID, EC))
FY11 Economic Governance
Reform Program (EGRP I)
(AfDB)
FY07 Institutional Support
Project (AfDB)
21
needs with widespread
social exclusion at the
community level.
Resources must be
allocated consistent with
PRSP priorities, with
fiscal discipline and
probity in the use of
public resources. This
requires:
A robust
MTEF/MEFF and
better revenue
forecasting for a
credible budget;
Improved and
effective expenditure
controls;
Suitable amendment
to the legal and
regulatory
framework;
by 2013. Achieved. 19 –
from the Consolidated
Revenue Fund.
6.1 Variance in expenditure
for the 20 largest budget heads
declines from 13.5% in 2008
to <7% in 2013. (WB) Not on
track. 29.9 %
6.2 Percentage of procurement
contract in compliance with
GoSL procurement legislation
and regulations increased from
49% in 2008 to 95% in 2013.
(AfDB/WB) On track. 91.3
%
Governance/Gender 5.3 Number of councils
meeting at least 75% of the
service output targets specified
in local council policy MOUs
by 2013 (WB) On track. 7
LCs.
6.3 Process for the public
oversight of PFM to be in
place by 2013. (WB) On
track. Under
implementation.
annually
increased from
22% in 2008
to 25% in
2011.(WB)
Achieved. 41
%
Percentage of
budgeted
expenditures
executed
online through
IFMS rolled
out ministries
increased from
62% in 2008
to 80% in
2011. (WB)
Not achieved.
65 %
85% of MDAs
have dedicated
procurement
officers by
2011.
(AfDB/WB)
Achieved.
97.4 %
Decentralizatio
n Secretariat
and MDAs to
perform spot-
checks on LCs
meeting
service-output
targets for all
LC by 2011.
(WB)
Achieved. 19
LCs.
Forum for
oversight of
PFM by civil
society to be
established by
2011. (WB)
Achieved.
Joint Forum
MOFED,
NSA
All 6
documents
required under
PEFA 10
published
Pipeline Projects: FY10 Decentralized
Services Delivery I and II
(WB)
FY10, FY11 & FY12
Development policy lending
(WB)
Economic Governance
Reform Program (EGRP II)
(AfDB)
AAA: FY10 Public Expenditure
Review (WB)
FY11 Country Procurement
Assessment Review (WB)
Partners: DfID, EU, IMF, UNDP,
UNHCR
22
through the SL
Gazette and on
the MoFED
website by
2011.
(AfDB/WB)
Achieved. All
six documents
published and
on website
JAS Objective 2: Promoting Inclusive Growth
Selected PRSP
II
objectives &
indicators27
Key Issues from PRSP JAS Outcomes &
Indicators
JAS Milestones World Bank
Group/AfDB
Instruments
6. Enhanced
productivity in
agriculture and
fisheries
sufficiency in
rice from 70 % in
2007 to 90% by
2013
export sales of
cocoa, coffee and
ginger from
US$7.2.mil in
2008 to US$9.5
mil in 2013
Inadequate rural financial
services, limited irrigation
facilities, weak rural
infrastructure, weak
extension services, and heavy
reliance on rain-fed
agriculture.
6. Improved efficiency and
transparency of
agriculture and fisheries.
6.1 50% of target
beneficiaries for selected
value chains increase
production by 20%
(AfDB/WB) On track.
Cassava 10 mt/ha (2008) to
16.1 mt/ha. Rice 0.81
mt/ha (2008) to 0.88 mt/ha.
Governance/Gender 6.3 FBOs registered with
the Ministry of Agriculture
established in all districts by
2013. (WB) On track. 73
FBOs established.
10% increase cultivated
land for cassava, palm
oil, rice, cocoa & maize
value chains by 2013
(WB) No data
Development of seed,
fertilizer and pesticide
laws, and regulations by
2011. (WB) Not
achieved. Procurement
of consultants in
progress
Harmonization of
policies and regulations
governing formulation
and regularization of
farmer based groups by
2011. (WB) Not
achieved. Procurement
of consultants in
progress
On-going
Projects/TFs: FY07 Rural & Priv.
Sector Dev. Project
(WB)
FY05 Agriculture
Sector Rehabilitation
Project (AfDB)
FY05 NERICA Rice
Dissemination Project
(AfDB)
Pipeline Projects: FY10 GEF Biodiversity
Conservation Project
(IDA)
FY 12 Regional
Agriculture Project
(IDA)
AAA: Country Economic
Memorandum
Partners: EU, FAO, GTZ, IFAD,
JICA, KfW, WFP
Framework
established for
maintaining
sustainable fish
stocks.
Inadequate surveillance
system in fisheries to ensure
revenue generation and lack
of land-based fisheries
infrastructure
Fisheries:
6.5 Territorial Use Rights
Fisheries (TURFS) legally
established for coastal
fisheries increased from
none in 2008 to 4 by 2013.
(WB) On track. One
TURF established.
6.7 Meet EU phyto-sanitary
standard for fish exports by
2013 (AfDB/WB) On
track.
Small scale fishing
vessels that are
registered increase from
0% in 2009 to 50% in
2011. (WB) Not
achieved. Database
under construction.
A satellite-based fishing
vessel monitoring system
is in place and
functioning by 2011.
(WB) Achieved.
Ongoing Projects/TFs: FY01 Artisanal
Fisheries Development
Project (AfDB)
FY10 Regional
Fisheries Project
Partners:
USAID DfID EU AfDB
UNDP FAO
23
Governance
6.8 Fishing vessels observed
committing a serious
infraction reduced from
88% in 2009 to 66% by
2013. (WB) Achieved. 8%. 7. Improve
Standing of
Sierra Leone as
Investment
Destination +
job creation
High cost of bank credit,
limited rural financial
intermediation,
underdeveloped capital
market, and constraints in
investment climate
Limited capacity of private
sector to provide employment
facilities for youth, especially
in urban areas
7. Improved investment
climate
7.1 Reduction in time taken
to register a business from
26 days in 2007 to 10 days
by 2013 (IFC/WB). On
track. 12 days (Jan2011)
7.2 Reduction in time of
export transactions from 31
days in 2007 to 22 days by
2013. On track. 24 days
(Sept 2011)
7.3 Number of bank
accounts increased to
300,000 in 2013 from
160,000 in 2005 (WB)
Achieved. 513,000
accounts
7.4 Volume and market
penetration of leasing
equipment financed
increased from US$6.8 mil
in 2009 to US$35 million in
2013 (IFC). On track
(based on projections – no
data for 2011).
Governance/Gender 7.5 Achieve EITI validation
standards by 2013.
(AfDB/WB) Achieved.
First EITI report issued in
2010
7.6 AML/CFT regime
strengthened by amendment
of AML law and
establishment of FIU at BSL
by 2013. (WB) Achieved.
Establish one-stop shop
for business registration
by 2011.
(IFC/WB ) Achieved.
Established in 2009
Implement automated
system for customs data
by 2011. (IFC/WB)
Achieved. ASYCUDA
implemented in 2010
Credit Reference Bureau
Legislation presented to
Parliament by 2011.
(WB)
GoSL to develop leasing
regulation by 2011 (IFC,
WB) Achieved. Credit
Reference Bureau
Legislation was
presented to
Parliament on 7th
March 2011, and
signed by the President
on 20th
April 2011.
Government of Sierra
Leone introduces a
revised SME tax regime
based on a review of
taxation policy.
(WB/IFC) Achieved.
The Regulations were
developed and
consequently issued by
the BOSL Reconciliation
conducted & first EITI
report published by 2011
(AfDB/WB). Achieved.
Draft AML/CFT law to
be prepared by 2011.
(WB) Achieved.
On-going
Projects/TFs: FY09 Removing the
Administrative Barriers
to Investment (Phase 2)
TF (WB)
FY09 TA to identify
investor/operator for
Cape Sierra Hotel.
(IFC)
FY10 Financial Sector
TA (WB)
FY10 Youth
Employment and Skills
(WB)
FY09 Support to EITI
Implementation. (TF)
WB)
FY10 Mining Sector
TA Project. (WB)
FY12 Regional Mining
Governance (EITI++)
(WB)
FY11 Capacity building
for the Bank of Sierra
Leone on monitoring
compliance of trade
finance facility (IFC)
AAA: EITI++ scoping
Partners: GTZ DfID UNDP
UNCDF
24
8. Broaden
electricity
supply
throughout the
country
generation and
distribution
capacity from
21MW in 2008
to 56 MW in
2013
Low energy supplies
Low capacity of transmission
and distribution of electricity
infrastructure
High cost of power
generation relative to
available budgetary resources
8. Improved access to
sustainable electricity
infrastructure services Energy:
8.1 Households in Freetown
with access to electricity
increased from 20,000 in
2009 to 40,000 by 2013.
(AfDB/WB) Achieved.
40,000
8.2 Average annual
interruption frequency in
Freetown from 1,200 in
2009 to 600 in 2013. (WB)
No data
8.3 Number of towns with
reliable electricity supply
increased from 0 to 12 by
2013 (AfDB) Not on track.
Only Freetown and Bo-
Kenema.
Governance/Gender 8.4 Regulatory framework
for independent power
production established by
2013 Achieved. Electricity
Act approved by
Parliament in 2011.
Emergency Power
Generation at 10.8 GW/h
per month until
Bumbuna hydropower
comes on line by 2011.
(WB) Achieved.
Electricity collection rate
increased from 50% in
2009 to 85% by 2011.
(WB) Not achieved.
Collection rate at 76%.
Installed generating and
transmission capacity
increased by 50MW by
2010 (AfDB). Achieved.
Installed generation
capacity at 82.5 MW.
Draft laws for Public
Private Partnership and
regulators presented to
Parliament by 2011.
(WB) Achieved.
On-going
Projects/TFs: FY05 Power and Water
Project (WB)
FY05 Bumbuna
Hydroelectric Project
(WB)
FY08 Bumbuna
Hydroelectric Project
Add Fin (AfDB)
FY09 Bumbuna
Supplementary Loan
(AfDB)
FY07 Institutional
Support Project (AfDB)
Pipeline: FY10 Addax bio-
energy project (AfDB)
FY11 Infrastructure
(Energy) (WB/MDTF)
AAA: FY10 Public Private
Partnership Framework
for energy and other
sectors
FY10 Political
Economy Study with
focus on Transport and
Energy. (WB)
FY12 Country
Economic
Memorandum. (WB)
Partners:
China, DfID, EU, JICA
9. Develop the
national
transportation
network
2000km of feeder
roads by 2013
Freetown ports
and airport
Development of road
network.
Inadequate and poorly
maintained rural and feeder
roads
Inefficient port and airport
9. Maintain and extend
key transport
infrastructure
9.1 All weather trunk roads
in good and fair condition
increased from 50% in 2009
to 60 % in 2013.
(AfDB/WB) No data.
9.3 1,400km of feeder roads
rehabilitated by 2013
(AfDB/WB) On track. 712
km completed.
9.4 Port container handling
performance is improved
from 8 TEUs/hr in 2007 to
Contracts entered into by
2011 for rehabilitation of
100km (WB) + 200 km
(AfDB) of all weather
trunk roads. Achieved
WB 100 km.
900 km (WB) & 500km
(AfDB) of rural roads
rehabilitated by 2011.
Not achieved. WB 462
km
Freetown port
rehabilitated and
container stacking area
extended by 2011. (WB)
Not achieved. Late
On-going
Projects/TFs: FY06 IDP Transport
Project (WB)
FY07 Rural & Private
Sector Development
Project
Pipeline: FY12 Mototoka-Sefadu
Road (AfDB)
FY10 Lungi-Port Loko
Upgrading (AfDB)
AAA: FY10 Political
Economy Study with
focus on Transport and
25
12 TEUs/hr by 2013. (WB)
On track. 8-10 TEUs/hour.
9.5 Lungi Airport to remain
as international airport
according to ICAO safety
regulations (WB) Achieved.
Governance/Gender 9.6 Independent road fund
established by 2013. (WB)
Achieved. Road fund
established
commencement of
work.
Resurface of runway and
installation of new
navigation facilities
completed at Lungi
Airport by 2011. (WB)
Not achieved.
Activities (runway,
NAVAIDS) under way
Independent road fund
bill passed to Parliament
by 2011. (WB)
Achieved. Road fund
bill passed.
Energy. (WB)
FY10 Freetown Ring
Road Study (AfDB)
FY12 Country
Economic
Memorandum. (WB)
Partners: EU, GTZ, Islamic
Development Bank,
Kuwait Fund
26
Annex 1(b) : CAS Progress Report Results Matrix – June 1, 2012 to June 30, 2013
JAS Objective 1: Human Development
Selected PRSP II
objectives & indicators25 Key Issues from PRSP JAS Outcomes &
Indicators
World Bank Group
1. Increased access to and
completion of primary
schooling especially for girls
and out of school children
Lack of sufficient and
adequate inputs at school level;
poor internal efficiency of the
system and weak management
of information and delivery
systems.
Low human resource capacity
at all levels, shortage of
teaching and learning material,
high pupil ratios in schools,
poor accountability, low
primary school completion
rates and high repetition and
drop-out rates.
1. Improved capacity to
effectively and efficiently
deliver education
1.1 Primary Completion Rate
from 67% in 2010/2011 to
70%
Governance/Gender 1.2 Enrollment for girls at JSS
increased from 40.9% in 2008
to 43.9% in 2013. (WB)
On-going Projects/TFs:
FY09 EFA-FTI Catalytic
Fund. (TF)
FY08 Chyao-Africa-Support to
Education of war affected
children in the Northern
Province
AAA: FY12 Higher and Tertiary
Education Note
Updating the Education Sector
Plan Constraints to Service
Delivery
Partners: AfDB, DfID, EU, UNDP,
UNICEF, Irish Aid
2. Improve the health status
of population and quality of
health services
Limited financial and
geographical access to health
facilities.
Inadequate access to free
health care for vulnerable
population, limited availability
of high impact interventions
and shortage of drugs,
equipment and supplies
Shortage of critical health
professionals, inadequate
support/ supervision at all
levels and weak personnel
management
Weak coordination among
programs and donors
2. Improved access to basic
health services
2.1 Children receiving Penta-3
vaccination before 12 months
of age increased from 54.8 %
in 2008 to 85 % in 2013. (WB)
2.2 Children under 5 who slept
the previous night under an
insecticide treated net
increased from 26% in 2008 to
80% by 2013. (WB)
Governance/Gender
2.3 Deliveries conducted in
health facility increased from
42% in 2008 to 70% in 2013.
(AfDB/WB)
2.4 Framework for
community-based
accountability committees for
each public health clinic
established (WB)
Ongoing Projects/TFs:
FY 10 Reproductive and Child
Health phase II
AAA: FY11 Public Expenditure
Review
FY12 Constraints to Service
Delivery
Partners:
DfID, EU, Irish Aid, UNFPA,
UNICEF, USAID, WHO
27
3. Developed framework for
management and supply of
safe water and sanitation
Lack of water policy as well as
organized legal, regulatory &
institutional frameworks
Deficiency in both urban and
rural water supply
Limited functional water
supply infrastructure.
3. Increased household
access to safe drinking water
and sanitation
3.1 People with access to water
increased from 64,000 in 2009
to 115,000 in 2013 in targeted
areas. (AfDB/WB)
3.2 People with access to
improved sanitation increased
from 25,000 in 2009 to 35,000
by 2013. (AfDB/WB)
Governance/Gender
3.3 Commercial and technical
losses reduced from 60% in
2007 to 38% in 2013
(Freetown). (WB)
Ongoing Projects/TFs: FY12 Decentralized Service
Delivery Project phase II
FY10 GRGC-3
AAA: FY12 Public Expenditure
Review for Water and
Sanitation
FY12 Public Expenditure
Review
Partners: China, DfID,
UNICEF
4. To reduce the incidence
and consequences of extreme
poverty
High unemployment and
underemployment, particularly
among the young.
Acute skill deficiency among
the ―lost generation‖ who
grew up without education
during the war.
4. Improved capacity to
manage social risks
4.1 Cash for work programs
create 4 million person days of
employment in target areas by
2013 with increased
sustainability (of which 1
million women) from 0 in
2008 (AfDB/WB)
Governance/Gender
4.2 Number of women days
employment created through
cash for work program
increased from 0 in 2008 to 1.2
million in target areas. (WB)
Ongoing projects/TFs:
FY10Youth Employment and
Skills
FY12 Development policy
lending
FY09 Integrated Public
Financial Management Project
FY 10 Rapid Response Growth
Poles : Community-Based
Livelihood and Food Support
Program
FY10 Empowering Vulnerable
Youth for Self-Reliance in
Kono District and Western
Area
AAA:
FY12 Public Expenditure
Review
FY12 Social Protection
Assessment
Partners:
UNICEF, WFP
5. Ensure sustainable human
development through the
decentralized provision of
improved social services.
Improve and expand sound
public financial management
Local Councils empowered
with responsibilities, revenue
authority and financial support
and encouraged to become
transparent, accountable and
capable institutions
demonstrating inclusive
leadership at the local level.
Budget resources are now
concentrated in central
government agencies and
5. Improve predictability,
expenditure control and
transparency in
decentralization and public
resource management
5.1 Number of councils with
integrated development plans
and budgets increased from 0
in 2009 to 19 by 2013. (WB)
On-going Projects/TFs:
FY09 Integrated Public
Financial Management Project.
(WB)
FY10 Decentralized Services
Delivery I
FY12 Decentralized Services
Delivery phase II
FY12 Development policy
28
allocated to localities on an ad-
hoc basis not reflecting relative
service needs with widespread
social exclusion at the
community level.
Resources must be allocated
consistent with PRSP
priorities, with fiscal discipline
and probity in the use of public
resources. This requires:
A robust MTEF/MEFF
and better revenue
forecasting for a credible
budget;
Improved and effective
expenditure controls;
Suitable amendment to the
legal and regulatory
framework;
5.2 Number of councils
receiving timely transfers from
crisis response facility
increased from 0 in 2009 to 19
by 2013. (WB)
5.3 Variance in expenditure for
the 20 largest budget heads
declines from 13.5% in 2008
to <7% in 2013. (WB)
Governance/Gender 5.4 Number of councils
meeting at least 75% of the
service output targets specified
in local council policy MOUs
by 2013 (WB)
5.5 Process for the public
oversight of PFM to be in
place by 2013. (WB)
5.6 Ward Committees holding
public meetings and reporting
to Local Councils as part of
annual development planning
and execution cycle increases
to 80%
lending
FY11 Strengthening Internal
Audit at the Bank of Sierra
Leone
FY10 Institutional Capacity
Building for Combating
Corruption in Sierra Leone
AAA: FY12Public Expenditure
Review
Partners: DfID, EU, IMF, UNDP,
UNHCR
JAS Objective 2: Promoting Inclusive Growth
Selected PRSP II
objectives & indicators27 Key Issues from PRSP JAS Outcomes &
Indicators
World Bank Group
Instruments 6. Enhanced productivity in
agriculture and fisheries
in rice from 70 % in 2007 to
90% by 2013
cocoa, coffee and ginger from
US$7.2.mil in 2008 to US$9.5
mil in 2013
Inadequate rural financial
services, limited irrigation
facilities, weak rural
infrastructure, weak extension
services, and heavy reliance on
rain-fed agriculture.
6. Improved efficiency and
transparency of agriculture
and fisheries.
Agriculture:
6.1 50% of target beneficiaries
for selected value chains (list)
increase production by 20%
(AfDB/WB)
Governance/Gender 6.2 FBOs registered with the
Ministry of Agriculture
established in all districts by
2013. (WB)
On-going Projects/TFs:
FY07 Rural & Priv. Sector
Dev. Project
FY10 GEF Biodiversity
Conservation Project
FY11 GEF Wetlands
Conservation Project
FY 12 West Africa Agriculture
Productivity Project
AAA:
Partners: EU, FAO, GTZ, IFAD, JICA,
KfW, WFP
Framework established for
maintaining sustainable fish
stocks.
Inadequate surveillance system
in fisheries to ensure revenue
generation and lack of land-
Fisheries:
6.3 Territorial Use Rights
Fisheries (TURFS) legally
Ongoing Projects/TFs: FY10 West Africa Regional
Fisheries Project
29
based fisheries infrastructure established for coastal fisheries
increased from none in 2008 to
4 by 2013. (WB)
6.4 Meet EU phyto-sanitary
standard for fish exports by
2013 (AfDB/WB)
Governance
6.5 Fishing vessels observed
committing a serious infraction
reduced from 88% in 2009 to
66% by 2013. (WB)
6.6 Public disclosure of all
fishing licenses and revenues
by Ministry of Fisheries and
Marine Resources (WB)
Partners:
USAID DfID EU AfDB
UNDP FAO
7. Improve Standing of
Sierra Leone as Investment
Destination + job creation
High cost of bank credit,
limited rural financial
intermediation,
underdeveloped capital market,
and constraints in investment
climate
Limited capacity of private
sector to provide employment
facilities for youth, especially
in urban areas
7. Improved investment
climate
7.1 Reduction in time taken to
register a business from 26
days in 2007 to 10 days by
2013 (IFC/WB).
7.2 Reduction in time of export
transactions from 31 days in
2007 to 22 days by 2013.
7.3 Number of bank accounts
increased to 300,000 in 2013
from 160,000 in 2005 (WB)
7.4 Volume and market
penetration of leasing
equipment financed increased
from US$6.8 mil in 2009 to
US$35 million in 2013 (IFC).
Governance/Gender 7.5 Achieve EITI validation
standards by 2013.
(AfDB/WB)
7.6 AML/CFT regime
strengthened by amendment of
AML law and establishment of
FIU at BSL by 2013. (WB)
On-going Projects/TFs:
FY11 Financial Sector Support
Project
FY10 Youth Employment and
Skills
FY10 Mineral Sector TA
FY12 Extractive Industries
Technical Advisory Project
FY11 Capacity building for the
Bank of Sierra Leone on
monitoring compliance of
trade finance facility (IFC)
FY09 Integrated Financial
Public Financial Management
Project
FY11 West Africa Regional
Communications Infrastructure
Project
AAA: FY12 Policy Note : Revenue
AdministrationFY12 Policy
Note : Road Map to Prepare
for Petroleum
Partners: GTZ DfID UNDP UNCDF
30
8. Broaden electricity supply
throughout the country
distribution capacity from
21MW in 2008 to 56 MW in
2013
Low energy supplies
Low capacity of transmission
and distribution of electricity
infrastructure
High cost of power generation
relative to available budgetary
resources
8. Improved access to
sustainable electricity
infrastructure services Energy:
8.1 Households in Freetown
with access to electricity
increased from 20,000 in 2009
to 40,000 by 2013.
(AfDB/WB)
8.2 Average collection rates
increased from 76% to 80%
(WB)
Governance/Gender 8.3 Regulatory framework for
independent power production
established by 2013 (WB)
On-going Projects/TFs:
FY05 Bumbuna Hydroelectric
Project
FY11 Infrastructure (Energy)
AAA: FY12 Policy Note ; Revenue
Administration
FY11 Public Expenditure
Review
FY12 Country Economic
Memorandum
Partners:
China, DfID, EU, JICA
9. Develop the national
transportation network
feeder roads by 2013
and airport
Development of road network.
Inadequate and poorly
maintained rural and feeder
roads
Inefficient port and airport
9. Maintain and extend key
transport infrastructure
9.1 1,400km of feeder roads
rehabilitated by 2013
(AfDB/WB)
9.2 Port container handling
performance is improved from
8 TEUs/hr in 2007 to 12
TEUs/hr by 2013. (WB)
9.3 Lungi Airport to remain as
international airport according
to ICAO safety regulations
(WB)
Governance/Gender 9.4 Independent road fund
established by 2013. (WB)
On-going Projects/TFs:
FY06 IDP Transport Project
FY07 Rural & Private Sector
Development Project
AAA:
FY12 Pro-poor Transport
Sector Strategy
FY12 Country Economic
Memorandum.
Partners: EU, GTZ, Islamic
Development Bank, Kuwait
Fund
JAS Objective 3: Extractive Boom Selected PRSP II objectives & indicators
11
Key Issues from PRSP JAS Outcomes &
Indicators
World Bank Group
Instruments Economic Development, Trade
and Finance - macroeconomic
management
Making greater use of natural
resource potential – minerals,
agriculture, oil and gas. As a
country, Sierra Leone has a
track record of misusing
mineral resources; Anxious to
avoid the ‗curse‘ past; the rife
10.1 Key regulations related to
mining submitted to Cabinet
after extensive consultations:
E&S regulations, Precious
Minerals Trading Act,
Resettlement Regulations,
Health and Safety Regulations
(WB)
On-going Projects/TFs: FY10 Mineral Sector Technical
Assistance
FY12 Artisinal Mining
Community Development and
Sustainable Livelihoods
11
PRSP objectives and constraints are taken from October 2011 Concept Note on ‗AGENDA FOR
PROSPERITY/ENHANCED AGENDA FOR CHANGE, 2013-2017‘
31
and corruption that minerals,
oil and gas has had in other
countries. Given prospects and
volumes, Sierra Leone will be
assuming a very serious
responsibility. Wide ranging
advisory services would be
compelling on how to better
manage the different
subsectors – technical, legal,
fiscal, governance frameworks.
10.2 Establishment of
National Minerals Agency
(WB)
Governance/Gender :
10.3 Prioritized vacancies for
critical staffing requirements
identified within the Ministry
of Mines and Minerals
Resources (MMR) completed
and job descriptions and
recruitment plans approved by
HRMO/PSC and recruitment
underway (WB)
1.4 DFGG Strategy for Sierra
Leone completed, with priority
social accountability
instruments and approaches
laid out (WB)
FY12 Extractive Industries
Technical Assistance Project
FY11 Artisinal Mining
Community Development and
Sustainable Livelihoods
Project
Good Governance Partnership
Facility
AAA:
FY12 Public Expenditure
Reviews
FY12 Policy Note: Road Map
to prepare for Petroleum
FY12 Good Governance
Initiative
Partners:
32
Annex 2: Post-Conflict Meets Resource-Rich:
Strategic Priorities for Economic Management in the Era of “Iron Ore Economics”
1. A rapidly changing economic environment requires a new strategic focus for economic development in Sierra
Leone, particularly as it applies to financial and private sector development, extractive sector management and the
economic policy and institutional agenda. The impending boom in the mineral sector has far-reaching implications for the
country‘s development trajectory. Since the end of the civil war Sierra Leone has followed a gradual post-conflict
recovery with two successive peaceful election cycles and averaged GDP growth of 6 percent. Now the economy is
poised to experience a major transformation: The development of two large iron ore mining projects will lead to large
one-off surge in real GDP and a significant surge in exports in 2012 and beyond12
. Due to generous tax concessions,
government revenue will increase only moderately in 2012 but more substantially from 2013 onwards. While mining
activity alone will be a game-changer for Sierra Leone, oil reserves in commercial quantities may be verified in the course
of the year.
2. These developments in the mineral sector confront Sierra Leone with significant opportunities and risks:
On the upside, mining can become a growth motor, spur private investment and provide the government with the
resources it needs to implement its ambitious development agenda. It provides opportunities for scaling-up
public-private partnerships for infrastructure development as well as small and medium enterprise development
linked to mining operations and targeted spatial economic development strategies around new growth poles.
On the downside, Sierra Leone has to confront the ‗resource curse‘ that has challenged many resource rich
African countries. In the past, Sierra Leone has failed to address these issues and the results have been poor
development outcomes, high inequality and devastating conflict. The impact of the unprecedented growth shock
puts significant demands on the Government to maintain macro economic stability, ensure good value for money
in government expenditures, strengthen transparency and promote good governance. Beyond the significant
governance issues associated with managing resource revenues, the dynamics of mineral sector growth could
throw economic development off balance. The mineral sector is likely to divert human capital, entrepreneurial and
investment resources from other sectors and could thereby undermine development strategies in other potential
growth sectors such as agriculture, light manufacturing, tourism as well as commerce and services. Commodity
price volatility, foreign currency inflows and a changing structure of the balance-of-payments will challenge
macro economic management and financial sector capacity. Social exclusion around extractives could increase
the risk of instability, conflict and a disruption of revenue flows.
Strengthening institutions and governance
3. Institutional capacity needs to be built to ensure that benefits of the mineral sector are put to use to develop the
rest of the economy and achieve inclusive growth in line with agreed priorities. The institutional development agenda is
necessarily exhaustive and encompasses traditional public sector priorities like public financial management and
governance as well as specific institutional capacity required to manage resource revenues and increase economic
management capacity. Four key areas can be identified:
Firstly, building and improving public financial management capacity remains a key priority as does public sector reform
more broadly. Further efforts in strengthening public financial management are required to strengthen the ability to
manage public finances on a consistent basis and in-line with budgets approved by the legislature. Apart from deepening
financial discipline this requires developing the skills and systems to ensure that the allocation and distribution of
government spending is optimal across sectors, in order to achieve economic efficiency as well as effective collection of
all revenues due to the state – openness and dialogue with citizens is essential in this regard. It also requires establishing a
strong framework for public procurement to ensure value for money, and give confidence to investors and citizens alike.
The public sector reform process to strengthen public sector effectiveness and improve its ability to deliver services must
12
IMF projects a surge in GDP by 35% in 2012 and a fourfold increase in exports. Standard Chartered Bank is projecting 30% GDP growth in 2012. Estimates are driven by assumptions on iron prices and, more importantly, mining output in the initial phase of operation which is introducing some uncertainty around actual figures.
33
be broadened and deepened. A more effective public service will also mean more effective revenue collection, more
effective monitoring of operations for health, safety and other regulatory requirements. As initiatives in these areas are
already in place, Government needs to maintain the drive and pressure to develop the broad institutional agenda to ensure
a strong and consistent measure of governance is embodied in them that will serve the public interest and stand the test of
time.
Secondly, governance issues are pertinent and have proven to be even more challenging for countries to address in these
situations. Pressures to increase government spending, including public sector wages, will rise as will competition within
society for access to resources. Licensing and contract award would attract undue attention and may become politicized
due to the rent-seeking opportunities they present, and conflicts of interest would abound. Groups on whose land the
resources being exploited were discovered will demand that their rights under law be respected, the environmental and
social costs of mining be minimized and benefits shared equitably within impacted populations. All this leads to intense
political lobbying and competition and could increase the risks of conflict. Increasing conflict stresses are already evident
in combustible mining communities and will require careful management. Citizens and communities will be most
concerned about the environmental impacts and social disruption, distribution of revenues and in the outcomes through
policies, programs and local level projects/development. Drawing on the experience of other countries a strong
governance regime underpinned by a practice of accountability and transparency at all stages, an absolute avoidance of
conflicts of interest and the direct involvement of all stakeholders, especially community groups in every aspect —
especially monitoring of licenses and contracts; monitoring of the projects and operations; collection and distribution of
revenues; and the selection and implementation of projects — are necessary elements of a broader governance strategy to
deal with new challenges. The key strategic priorities in this area are:
Licensing and contract negotiations. Strengthen the process for awarding licenses and contracts by providing a
strategic framework for integrating extractive industry development projects in the context of national planning
initiatives. Establish an open and transparent process that utilizes international expertise in negotiations, which
includes respected CSOs and development partners. Ensure that the integrity of the process is beyond reproach and
that local communities have a say in it and are informed about developments that affect and change their lives.
Revenue Management and associated accountability mechanisms. Extensive public consultations with the
population at large and political parties regarding the process of revenue management and the associated
accountability mechanisms are needed to provide a robust accountability framework. This should also include
independent and regular public reporting on the accountability mechanisms and results. Progress in revenue
collection needs to be consolidated by reinforcing the monitoring function, particularly with respect to financial and
technical audit of mining operations establishing mechanisms to undertake audits of mining firms by external auditors
with respect to profit declarations and legal compensation and community development obligations. EITI validation
and passing of the Sierra Leone EITI Bill will be important steps in improving extractive industry governance.
Control Corruption. The impending extractives boom increases the risks of more corruption, since important
systems are not yet in place to prevent, detect or deter it or the related money laundering. Tools and mechanisms for
prevention and detection need to be embedded in a variety of laws, including the financial sector regulatory system.
Also, licensing procedures in existing sectors (not only natural resources) are very poor, and these create risks that
critical licenses may be conferred on those involved in criminal activities. Importantly, the impending extractives
boom requires the Anti Corruption Commission to become more effective in its work in detecting and prosecuting
instances of corruption, but firstly leading (with the Audit Service of Sierra Leone) the installation of sound
transparent processes and accountable systems. If integrity issues do not become a very high priority very soon, the
existing levels of corruption could increase at a rate commensurate with the extractives boom.
Thirdly, an institutional framework for macroeconomic management needs to be put in place ideally before receipt of
large windfall revenues in the coming years. Such a framework might include mechanisms like a sovereign wealth fund to
absorb excess mineral revenues, other hedging mechanisms to reduce revenue volatility, front-loaded borrowing to
smooth government spending, utilities reforms, and specific strategies for currency reserves management. Taken
together, the objective should be to establish a strong foundation for macro stabilization. A key strategic question for
financial sector management is how foreign currency deposits can be leveraged more to facilitate local currency funding
34
for the private sector, while balancing the risks of currency mismatches on bank balance sheets and dollarization of the
economy.
4. The timely establishment of a professionally managed sovereign wealth fund that would absorb large funding
inflows from extractive industries and could compensate for the limited absorptive capacity of the Sierra Leone economy
would be a key instrument to enhance economic management capacity. Especially, it could help mitigate some of the
potential Dutch Disease effects of extractive industry based development. This will require: (a) definition of the funding
strategy (for example, state equity returns, advance payments or excess mining revenues); (b) the investment profile and
allocation priority (taking the form, for example, of a national infrastructure development fund, future generation fund,
and stabilization fund); (c) the fiduciary arrangements, governance structure, and bylaws of the sovereign wealth fund;
and (d) the respective legal and regulatory framework. 5. In addition, the authorities should develop a robust pipeline of public investment plans and social interventions to
be financed on the basis of stable and consistent transfers of mining revenues to the budget. This will require establishing
an improved institutional framework for public investment management and revenue management in order to avoid some
of the problems which occurred in 2010 and 2011. It will also need to take account of institutional capacity and the ability
for oversight and management of public investment projects.
Fourthly, gaps in the regulatory and monitoring frameworks for the extractive sector need to be addressed. Establishing
and operationalizing the National Minerals Authority and upgrading the Petroleum Directorate's capacity to manage the
extractives sector will both assist. Work will also be required to ensure that the recently enacted Mines and Minerals Act
and its regulations are faithfully implemented and monitored to prevent these important reforms from existing only ―on
paper‖. Particular emphasis also needs to be placed on monitoring the implementation of extractive industry agreements.
Sierra Leone is making progress with respect to improving and strengthening the award of licenses and contracts,
regulation and monitoring of operations and revenue collection. Yet this progress needs to be accelerated as the pace of
mining development is guided by the vagaries of the market and the private sector.
Private and financial sector development
The emerging mining industry and its ancillary infrastructure offer the opportunity to be leveraged as ‗growth poles‘ for
private sector development. The impact of these developments is substantial and includes local economic development
opportunities in non-mining economic activities around the mine catchment areas and transport hubs, SME forward and
backward linkages with mine operations as well as the provision of infrastructure leveraging the mining developments
(see Figure 3 in main body of this report). Government should develop specific, spatially focused strategies around the
new growth poles, especially in the Bumbuna – Makeni – Freetown corridor which combines key power, mining and
agro-business assets, and perhaps in the south around the large-scale mining and hydrocarbon reserves, once confirmed. 6. In this context, public-private partnerships (PPPs) for infrastructure development will be a key policy instrument
for deepening private sector investment. A key priority will be to strengthen the institutional framework and capacity in
the Government to identify, close and manage PPP infrastructure projects. Sierra Leone has a huge infrastructure deficit
even by African standards. Recognizing the severe constraints of poorly developed infrastructure for the economy,
Government has made the issue a policy priority. An ambitious acceleration in infrastructure investments has, however,
stretched public finances considerably in recent years. There is scope for leveraging private sector investment into
infrastructure PPPs and close the funding gap. In particular, mining-related investments in infrastructure provide
significant potential to be leveraged into shared public infrastructure and improve the operating environment for other
industries. 7. While mining developments offer significant potential, current private sector development strategies need to be
developed further to actively address the need to invest in economic diversification and balance the structural pressures
from the mining industry in terms of demands on skills, entrepreneurship, infrastructure and financing. A key lesson from
countries that have experienced similar resource booms is that economic diversification strategies need to be made an
early priority. Sierra Leone has significant growth potentials in non-mining sectors, especially agriculture, fisheries,
tourism, light manufacturing, commerce and services that need to remain in the focus of policy and private sector
strategies.
35
8. Financial sector development priorities will evolve around the ability of the domestic financial sector to
intermediate capital inflows, manage the associated risks and foster private sector growth. The ability of the domestic
banking sector to meet the demand for funding from new entrepreneurs or existing businesses that seek to expand their
operations as part of the supply chain of the new mining operations will be crucial in ensuring broad based growth.
Demand for financial services will increase as domestic SMEs leverage the opportunities resulting from mining
developments and income levels of households increase. Banks need to invest in their ability to structure loan
transactions and identify viable borrowers in the new value chains. Demand for transaction and payment services will
increase and development of the national payment system is crucial.
9. The focus on strengthening the regulatory framework and building capacity for banking supervision needs to be
maintained and complemented through investments in the risk management capacity of the commercial banks and other
financial institutions. Rapid credit growth as a result of a growth shock is prone to result in a build-up of credit risks.
Furthermore, the high concentration of economic activity related to mining will introduce considerable systemic risk that
needs to be monitored as part of the financial stability oversight functions of the Bank of Sierra Leone.
10. Sierra Leone has the opportunity to learn from the mistakes of other countries that have experienced a similar
natural resource-driven boom and invest in governance, institutional development and economic diversification strategies
from the start. Sierra Leone needs to invest both in the country‘s ability to reap the opportunities as well as the capacity to
mitigate the challenges and risks.
36
ANNEX 3: PROMOTING SOCIAL ACCOUNTABILITY FOR DEVELOPMENT IMPACT
I. Introduction
1. Sierra Leone has made significant progress in consolidating peace and promoting human and economic
development in the decade since the end of its civil war. Yet according to global indicators, governance and corruption
remain notable challenges in securing lasting development.13
Traditionally, efforts to improve governance and minimize
corruption have focused primarily on the ―supply-side‖ – including supporting the modernization of the state with
capacity building programs in decentralization and public financial management. Yet, there is growing recognition that in
order to achieve lasting development in Sierra Leone, citizens must be involved in the process, forging a ―new social
contract for development.‖14
In a speech commemorating 50 years of Sierra Leone‘s independence, President Ernest Bai
Koroma challenged all Sierra Leoneans to be monitors and contributors to government‘s work under a newly envisioned
citizen-state partnership.15
This partnership places civic participation and demand for good governance (DFGG) at the
center of development and governance planning and is especially important for Sierra Leone in light of the natural
resources-fuelled growth that is expected in the coming years.
Social Accountability (SA) and Demand for Good Governance (DFGG) refer to the extent and capability of citizens to
hold the state accountable and make it responsive to their needs.16
DFGG identifies the aspirations and involvement of
citizens as paramount to the governance agenda, empowering them in order to increase accountability and improve
essential service delivery.17
II. DFGG and the Joint Country Assistance Strategy (CAS)
2. The Joint Country Assistance Strategy (CAS) identifies good governance as a cross-cutting theme in promoting
Sierra Leone‘s development, pointing to the role of poor governance in fueling the country‘s 11-year civil war.18
The
CAS frames governance broadly, but doesn‘t distinguish in detail between supply-side and demand-side approaches. The
CAS states that ―all operations will, where possible and relevant, help to build the demand for good governance by
promoting transparency, participation, and accountability and supporting capacity development of civil society and the
media.‖19
Notably, the CAS offers no conceptual framework or recommendations to guide the design and implementation
of robust demand-side measures in Sierra Leone. Since adopting the CAS, experience in Sierra Leone has highlighted the
increasing relevance of DFGG to the country‘s development agenda. This Annex provides a framework for greater
investment in DFGG in Sierra Leone and lays the ground for using experiences with DFGG to inform the preparation of
the next CAS starting in FY14. Significantly, the Annex responds to the need for a country-specific DFGG strategy to
further guide operational and analytical activities and policy engagement for the Bank in Sierra Leone.
III. DFGG in Sierra Leone: The Experience to Date
13
See WBI Worldwide Governance Indicators, Sierra Leone (2010); Mo-Ibrahim Foundation Governance Indicators,
Sierra Leone (2010). 14
See World Bank President Robert Zoellick, Peterson Institute Speech, April 2011. See also World Bank Working
Group on DFGG in Africa, Empowering Citizens to Hold their Governments Accountable: An AFR Strategy to Support
Demand for Good Governance (Final Version, April 2011) [hereinafter AFR Strategy] (outlining a regional DFGG
strategy which, together with the GAC-2 DFGG strategy, forms the foundation of this Annex). 15
See Sierra Leone Government State House, Statement by His Excellency the President, Dr Ernest Bai Koroma at the
Launch of Transparency Sierra Leone Portal (Jan. 26, 2012), available at
Overall Result 7 456.7 6.8 102.1962 5.6261567 9.195719
Annex 13
Operations Portfolio (IBRD/IDA and Grants)
As of 5/23/2012
Supervision Rating
Last PSR
Original Amount in US$ Millions Disbursements a/
Difference Between
Expected and Actual
61
Annex 13 (cont.) - Regional Projects
Project
ID Project Name TTL
Countries /
Institutions CMUs Effective Closing
Comm
Amt
Total
Disb
Total
Undisb
Bal
P122065
West Africa
Agric Prod
Progrm
(WAAPP-1C)
TOURE
Benin, Niger,
Gambia, Sierra
Leone, Togo, Liberia
AFCW1,
AFCW3,
AFCF1,
AFCF2
8/1/2011
6/30/2016
83.8
2.5
81.7
P106063
3A-West
Africa
Fisheries -
Phase 1
VIRDIN Cape Verde, Liberia,
Senegal, Sierra
Leone
AFCW1,
AFCF1
4/19/2010 12/31/2017 97.3 7.3 89.7
P108941
3A-West
Africa
Fisheries GEF
(FISH)
VIRDIN Cape Verde, Liberia,
Sierra Leone, Sub-
Regional Fisheries
Commission
AFCRI,
AFCW1,
AFCF1
4/19/2010 12/15/2014 10 0.8 9.2
P116273
31:West Africa
Reg. Comm.
Infrast. Progr
AMPAH Liberia, Sierra Leone AFCW1 4/29/2011 09/30/2015 56.6 35.4 21.6
62
Annex 14 – Donor Partnership in Sierra Leone
1. According to the latest figures from the Ministry of Finance & Economic Development
(MoFED), Sierra Leone received about $351.87 million in development partner (DP) support in
2011. About 76% percent of this came from five development partners – the World Bank, DFID,
the EC, the UN system and the United States. There do seem to be fluctuations in the aid flows
from various DPs. World Bank support represented about 22% of the total aid volume in 2011.
Budget support, project support and Technical Assistance remain the main channels of support
from DPs. There is a significant amount of aid resources flowing through off-budget channels, an
area, which will require further attention. It is difficult to estimate future aid flows into Sierra
Leone, but major increases are unlikely to happen given the current global economic context.
The nature and levels of bilateral support from the BRIC countries, especially China, have
increased in recent years. During the IDA16 period, there has been an increase in World Bank
support based on continued improvements in the CPIA scores. Nonetheless, as stated in the main
text of the report, the increase in private flows is likely to be an increasingly important source of
financing towards the growth and development needs of the country.
Development Assistance to Sierra Leone 2010-2011
Donor Agency
Disbursed (million US$)
2010 2011
African Development Bank (AfDB) 24.22
Department for International Development (DFID) 85.18 67.54
European Commission (EC) 80.40 60.16
United States
21.62
World Bank (WB) 91.73 77.31
United Nations (UN) 54.91 39.66
Aid flows (Top five Aid Agencies) 336.44 266.29
Total Aid flows (All Aid Agencies) 394.01 351.87
Source: Development Assistance Database, GoSL
2. Aid coordination efforts present a mixed picture. The Multi Donor Budget Support (MDBS)
group is working quite coherently and holds a joint and structured dialogue with the government.
The Group conducts a joint annual Performance Assessment Framework (PAF) under its
Agreement, which provides the basis for agreed fiscal, policy and institutional actions
underpinning budget support. The MDBS process is now increasingly being led by MoFED,
although there is scope for strengthening coordination within government on budget support
issues, principally between MoFED and other parts of government, which have a role to play in
meeting the PAF indicators. As stated in the CAS Progress Report, the likely economic
transformation in the country would require the MDBS and IMF programs to be increasingly
aligned to the new policy and reflect the institutional challenges faced by Sierra Leone. Beyond
budget support, the UN system is well-coordinated with a joint UN Vision supporting
government efforts. The coordination between the UN and IFIs is also a strong point of DP
coordination efforts in the country. Given the relatively small number of DPs in the country,
63
harmonization and alignment efforts have been relatively less demanding to date, in terms of
process, but there is considerable scope for strengthening DP coordination efforts in order to
strengthen the delivery of development results. Coordination efforts at the sector level present a
mixed picture, with health and education being relatively good examples of sector-level
coordination. In the health sector, a Compact was signed recently between the government and
DPs, which is the first such sector-level effort in Sierra Leone. In the education sector, there is an
ongoing dialogue between the government and DPs and an annual joint review of progress and
priorities in the sector. These practices in the health and education sectors might hold some
interesting lessons for other sectors, and going forward MoFED may wish to consider replicating
them in other sectors.
3. The Development Partners Committee (DEPAC) has held meetings on a quarterly basis,
including an annual meeting chaired by His Excellency, the President of Sierra Leone. These
meetings provide a valuable opportunity to discuss high-level development priorities and agree on
priority actions to be taken jointly by the government and donors. The DEPAC also provides a
good opportunity for non-traditional DPs to participate in wider aid coordination efforts. Going
forward, there will be scope to strengthen linkages between DEPAC and sector-level groups, so
that DEPAC provides sector groups with an opportunity to share best practices. Government and
DP efforts are currently being coordinated for the preparation of PRS3. Experiences from other
countries suggest that there may be scope for PRS3 preparation to be less demanding in terms of
process and coordination, while rebalancing efforts to focus on substantive policy choices and
options facing the country.
4. Sierra Leone is committed to the implementation of the Principles of the Paris Declaration on Aid
Effectiveness. This commitment has led to the country‘s participation in a number of OECD
DAC surveys including the 2011 joint Paris Declaration and Fragile States Principles Survey. The
2011 joint survey revealed that Government ownership of the Agenda for Change is strong and
that there is a rising level of donor confidence as Sierra Leone develops. The country is one of
only a few developing countries to have a set of coherent and well thought-out policy documents
addressing the complex inter-relationships between political, security and development
imperatives. Alignment has increased significantly especially by the MDBS partners and the UN
agencies. A more strategic and sustained approach is needed to strengthen parliament‘s capacities
to assume its constitutional role and fulfill civil society‘s desire to engage in more sustained
political dialogue with government. Harmonization is slowly improving but coordination at
decentralized levels needs to improve. Sustaining decentralization and devolution in Sierra Leone
will be important peace building and state building activities, in the years ahead. Fully
empowering the GoSL to manage its revenue and to account for it to both donors and to the
citizens of Sierra Leone is an essential step that must be taken. Aside from the formal
mechanisms, well-established informal networks have emerged which continue to facilitate
coordination and information-sharing. Management for results is slowly improving but remains
weak at project level and the gap between planning and implementation remains wide.
Procurement systems still remain a challenge and disparities created by salary top-ups and
parallel implementation units (PIUs) complicate civil service reform. Preventing conflict in Sierra
64
Leone will require dealing with traditional regional rivalries and focusing on youth
unemployment.
5. Sierra Leone is a pilot country for the G7+ Group on Fragile States and Situations. Initial
discussions are taking place between government and partners about what being a pilot country
will really involve. This presents another opportunity for Sierra Leone to strengthen its efforts on
aid coordination and aid effectiveness. One opportunity for implementing the G7+ New Deal
may be for the government and partners to consider signing a Compact, after the preparation of
PRS3 in 2013, which could form the basis for strengthening further aid effectiveness and delivery
of results. This may also be an opportunity to consider a better division of labor between DPs, as
a way of strengthening selectivity and avoiding the problem of some sectors having a large
number of DPs, while others have too few. The government may wish to consider useful lessons
that may be learned from other African countries regarding a sharper division of labor amongst
DPs.
65
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