SCCD: N.G.

AFRICAN DEVELOPMENT FUND Language: EnglishOriginal: French

CONGO

ECONOMIC MANAGEMENT SUPPORT PROJET(EMSP)

APPRAISAL REPORT

ICOUNTRY OPERATIONS DEPARTMENT OCCCCENTRE REGION JUNE 2003

TABLE OF CONTENTSPage

PROJECT BRIEF, CURRENCY EQUIVALENTS, WEIGHTS AND MEASURES, (i-ix)BUDGET YEAR, LIST OF TABLES, LIST OF ANNEXES, LIST OF ABBREVIATIONS,SOCIO-ECONOMIC INDICATORS, LOGICAL FRAMEWORK MATRIX, EXECUTIVE

SUMMARY:

I. PROJECT BACKGROUND AND ORIGIN 1

II. SECTOR 1

III. SUB-SECTOR 23.1 Sub-sector Constraints 23.2 Areas of Donor Intervention 43.3 Areas of Donor Intervention 5

IV. THE PROJECT 64.1 Project Design and Rationale4.2 Project Areas and Beneficiary Structures4.3 Strategic Context4.4 Project Objective4.5 Project Description4.6 Project Cost4.7 Sources of Finance and Expenditure Schedule

666779

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V. PROJECT IMPLEMENTATION 11

5.1 Executing Agency5.2 Institutional Arrangements5.3 Implementation Schedule5.4 Goods and Services Procurement Arrangements5.5 Disbursement Arrangements5.6 Follow-up and Evaluation5.7 Financial and Audit Reports5.8 Donor Coordination

1111121214141414

VI. PROJECT SUSTAINABILITY AND RISKS 15

6.1 Expenses and Recurrent Costs6.2 Project Sustainability6.3 Major Risks and Mitigating Measures

VII. PROJECT BENEFITS

7.1 Economic and Social Benefits7.2 Impact on Cross-cutting Issues

VIII. CONCLUSION AND RECOMMENDATIONS

8.1 Conclusion8.2 Recommendations

151515

16

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-----------------------------------------------------------------------------------This report has been prepared by Mr. A.A. BA, Economist, OCCC, following his appraisal mission toCongo, from 16 to 25 February 2003. Any further enquiries relating to this report should be referredto Messrs. L.B.S. CHAKROUN, Director, OCCC, E.C. ANUSIONWU, Manager, CountryOperations, OCCC, A. BA, Economist, OCCC.

i

AFRICAN DEVELOPMENT FUNDB.P. 323, 1002 Tunis Belvedere, Tunisia

Tel.: (216) 71 333 511, Fax: (216) 71 332 806

PROJECT BRIEFDate: July 2003

The information given hereunder is intended to provide some guidance to prospectivesuppliers, contractors, consultants and all persons interested in the procurement of goods,works and services for projects approved by the Board of Directors of the Bank Group. Moredetailed information may be obtained from the Executing Agency of the Borrower.

1. Country : Republic of Congo

2. Project Name : Economic Management Support Project

3. Location : Brazzaville

4. Donee : Republic of Congo

5. Executing Agency : Project Implementation Unit (PIU), within theMinistry of the Economy, Finance andBudget,BP 2083 BrazzavilleTel.: (242) 81 41 43; Fax: (242) 81 41 42

6. Project Description : The main project components are:

A. Debt Management Capacity Building;

B. Public Investment Planning Enhancement; and

C. Project Management and Follow-up.

7. Project Cost : UA 0.59 million

(i) Foreign Exchange Cost : UA 0.39 million

(ii) Local Currency Cost : UA 0.20 million

8. African Development Fund Grant

ADF : UA 0.50 million

9. Other Sources

Government : UA 0.09 million

10. Probable Approval Date : September 2003

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11. Project Start-up Date and Duration : December 2003 for 24 months

12. Procurement of Goods and Services

Technical Assistance

A consulting firm will be recruited on the basis of a shortlist to provide consultancy servicesand training. Two consultants will be needed, namely a debt management expert (7 months) and apublic investment planning expert (6 months).

Equipment, Supplies and Miscellaneous

Information technology equipment (computers and accessories, servers, printers,scanners, software, photocopiers) will be procured through international competition for avalue of UA 0.13 million.

Various other goods such as miscellaneous supplies, air tickets, consumables, officefurniture and equipment, sundry external services and operating expenses, will be procuredthrough local shopping because the amounts involved are relatively low and the goods areavailable locally.

Training

Training expenses stand at UA 0.15 million and cover air tickets, per diem allowances,organisation of seminars and training workshops and the payment of training centres. Thesetraining centres will be selected on the basis of shortlists.

Operating Expenses

Office supplies and consumables will be procured through local shopping. The otheroperating expenditure items are made up of information technology equipment maintenance,insurance premiums, maintenance costs, communication costs and general expenses.

Audit

The procurement of project audit services (UA 0.02 million) will be subject tocompetition based on a shortlist of audit firms.

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CURRENCY EQUIVALENTS(March 2003)

UA 1 = US$ 1.37085UA 1 = CFAF 834.380US$ 1 = CFAF 606.70

WEIGHTS AND MEASURES

Metric System

FISCAL YEAR

1st January – 31st December

LIST OF TABLES

Tables Page

4.1 Cost Estimate by Component 94.2 Cost Estimate by Expenditure Category 104.3 Sources of Finance 114.4 Expenditure Schedule by Component 114.5 Expenditure Schedule by Source of Finance 115.1 Provisional Project Implementation Schedule 125.2 Goods and Services Procurement Arrangements 13

LIST OF ANNEXES

Annexes Number of pages

Annex 1 Administrative Map of Congo 1Annex 2 Organisation Chart of the Project Implementation Structure 1Annex 3 Detailed Project Costs 2Annex 4 Detailed Project Implementation Schedule 1Annex 5 Terms of Reference of International Experts 5

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ABBREVIATIONS AND ACRONYMS

ADB : African Development BankADF : African Development FundAFD : French Development AgencyBEAC : Bank of Central African StatesCCA : Caisse congolaise d'amortissement [Equalisation Fund of Congo]CEMAC : Economic and Monetary Community of Central AfricaCFA : African Financial CommunityDGP : General Planning DirectorateEU : European UnionGDP : Gross Domestic ProductGPRF : Growth and Poverty Reduction FacilityHIPC : Heavily Indebted Poor CountriesIDA : International Development AssociationIMF : International Monetary FundMEFB : Ministry of the Economy, Finance and BudgetMPATIR : Ministry of Planning, Land Development and Regional IntegrationPIP : Public Investment ProgrammePIPC : Interim Post-conflict ProgrammePIT : Three-year Investment ProgrammePIU : Project Implementation UnitPRSP : Poverty Reduction Strategy PaperSAP : Structural Adjustment ProgrammeSCN : National Accounts SystemUA : Unit of Account of the African Development Bank GroupUNDP : United Nations Development Programme

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Year Congo Africa

Develo-

ping

Countries

Develo-

ped

Countries

Basic Indicators

Area ( '000 Km²) 342 30,061 80,976 54,658Total Population (millions) 2001 3.1 811.6 4,940.3 1,193.9Urban Population (% of Total) 2001 61.6 38.0 40.4 76.0Population Density (per Km²) 2001 9.1 27.0 61.0 21.9GNI per Capita (US $) 2001 700 671 1,250 25,890Labor Force Participation - Total (%) 2001 40.8 43.3 … …Labor Force Participation - Female (%) 2001 34.7 35.1 … …Gender -Related Development Index Value 1999 0.495 0.476 0.634 0.916Human Develop. Index (Rank among 174 countries) 2000 136 n.a. n.a. n.a.Popul. Living Below $ 1 a Day (% of Population) 1995 … 45.0 32.2 …

Demographic Indicators

Population Growth Rate - Total (%) 2001 3.0 2.4 1.5 0.2Population Growth Rate - Urban (%) 2001 4.1 4.1 2.9 0.5Population < 15 years (%) 2001 46.4 42.4 32.4 18.0Population >= 65 years (%) 2001 3.3 3.3 5.1 14.3Dependency Ratio (%) 2001 98.4 85.5 61.1 48.3Sex Ratio (per 100 female) 2001 95.2 99.4 103.3 94.7Female Population 15-49 years (% of total population) 2001 22.4 23.6 26.9 25.4Life Expectancy at Birth - Total (years) 2001 51.5 52.5 64.5 75.7Life Expectancy at Birth - Female (years) 2001 53.6 53.5 66.3 79.3Crude Birth Rate (per 1,000) 2001 44.3 37.3 23.4 10.9Crude Death Rate (per 1,000) 2001 14.1 14.0 8.4 10.3Infant Mortality Rate (per 1,000) 2001 67.2 79.6 57.6 8.9Child Mortality Rate (per 1,000) 2001 124.7 116.3 79.8 10.2Maternal Mortality Rate (per 100,000) 1998 890 641 491 13Total Fertility Rate (per woman) 2001 6.3 5.1 2.8 1.6Women Using Contraception (%) 1995 8.0 … 56.0 70.0

Health & Nutrition Indicators

Physicians (per 100,000 people) 1999 5.0 36.7 78.0 287.0Nurses (per 100,000 people) 1995 185.1 105.8 98.0 782.0Births attended by Trained Health Personnel (%) 1996 50.0 38.0 58.0 99.0Access to Safe Water (% of Population) 2000 51.0 60.4 72.0 100.0Access to Health Services (% of Population) 1999 83.0 61.7 80.0 100.0Access to Sanitation (% of Population) 1993 9.4 60.5 44.0 100.0Percent. of Adults (aged 15-49) Living with HIV/AIDS 2001 7.3 5.7 … …Incidence of Tuberculosis (per 100,000) 2000 306.1 105.4 157.0 24.0Child Immunization Against Tuberculosis (%) 2000 50.0 63.5 82.0 93.0Child Immunization Against Measles (%) 1996 34.0 58.2 79.0 90.0Underweight Children (% of children under 5 years) 1996 24.0 25.9 31.0 …Daily Calorie Supply per Capita 2000 2,223 2,408 2,663 3,380Public Expenditure on Health (as % of GDP) 1998 2.0 3.3 1.8 6.3

Education Indicators

Gross Enrolment Ratio (%)

Primary School - Total 1996 110.5 80.7 100.7 102.3Primary School - Female 1996 105.2 73.4 94.5 101.9Secondary School - Total 1996 51.5 29.3 50.9 99.5Secondary School - Female 1996 43.3 25.7 45.8 100.8

Primary School Female Teaching Staff (% of Total) 1996 36.3 40.9 51.0 82.0Adult Illiteracy Rate - Total (%) 2001 18.2 37.7 26.6 1.2Adult Illiteracy Rate - Male (%) 2001 11.8 29.7 19.0 0.8Adult Illiteracy Rate - Female (%) 2001 24.1 46.8 34.2 1.6Percentage of GDP Spent on Education 1998 4.7 3.5 3.9 5.9

Environmental Indicators

Land Use (Arable Land as % of Total Land Area) 1999 19.6 6.0 9.9 11.6Annual Rate of Deforestation (%) 1995 0.2 0.7 0.4 -0.2Annual Rate of Reforestation (%) 1990 12.0 4.0 … …Per Capita CO2 Emissions (metric tons) 1997 … 1.1 2.1 12.5

Source : Compiled by the Statistics Division from ADB databases; UNAIDS; World Bank Live Database and United Nations Population Division.

Notes: n.a. Not Applicable ; … Data Not Available.

CONGO: COMPARATIVE SOCIO-ECONOMIC INDICATORS

GNI per capita US $

0

200

400

600

800

19

95

19

96

19

97

19

98

19

99

20

00

20

01

Congo Africa

Population Growth Rate (%)

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

19

95

19

96

19

97

19

98

19

99

20

00

20

01

Congo Africa

1

11

21

31

41

51

61

71

19

95

19

96

19

97

19

98

19

99

20

00

20

01

Congo Africa

Life Expectancy at Birth (Years)

Infant Mortality Rate

( Per 1000 )

0

10

20

30

40

50

60

70

80

90

100

19

95

19

96

19

97

19

98

19

99

20

00

20

01

Congo Africa

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Country: CONGOProject Name: Economic Management Support Programme (EMSP)Last Updated: June 2003Design Team: A. BA, Economist, OCCC

Hierarchy of Objectives Objectively Verifiable Indicators Means of Verification Major Assumptions

Sectoral Objective of the Project

Help build the capacity to design andimplement economic policies.

1.1 At least a hundred officers from the MEFB, theMPATIR and sector departments trained in capitalexpenditure programming and monitoringtechniques before end 2005.

1.2 Public investment budgeting and programmingprocedures introduced and applied before end 2005.

1.3 The PIP designed in line with criteria consistentwith the Government’s macroeconomic andsectoral priorities by end 2005.

1.4 The country’s debt settlement policy adopted byend 2004.

1.5 Functional links established between the DGP andCCA as of 2004.

1.1 Project activity report.

1.2 Annual reports on the execution of the DGP’sconsolidated capital budget.

1.3 Annual reports on the execution of the DGP’sconsolidated capital budget.

1.4 Debt statistics.

1.5 Project activity reports.

Government’s political resolve topursue the reforms.

Specific Project Objective

1. Develop and consolidate skills inthe field of debt management andpublic investment planning.

1.1 At least 60 officers from the DGP trained inproject planning and management by 2005.

1.2 At least thirty officers trained in modernmanagement techniques and debt analysis byend 2005

1.3 Modern debt management software procuredand understood fully by officers by end 2005.

1.4 Database on follow-up evaluation of PIPprojects and debt, available and operational in2005.

1.1 Project activity reports.

1.2 Project activity reports.

1.3 Project activity reports.

1.4 Project activity reports.

1.1 Socio-political environmentremains stable.

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Country: CONGOProject Name: Economic Management Support Programme (EMSP)Last Updated: June 2003Design Team: A. BA, Economist, OCCC

Hierarchy of Objectives Objectively Verifiable Indicators Means of Verification Major Assumptions

Results

1.1. Public investmentmanagement satisfactory.

1.2. Working conditions setout for consistencybetween PIP and debtplanning.

1.3. Better follow-up of debtensured.

1.4. Customized trainingprogramme implementedfor the benefit of DGPand CCA officers.

1.5. Adequate informationtechnology equipmentprocured by the DGP andCCA.

1.1 PIP implementation rates progresssatisfactorily by end 2005

1.2 PIP designed to match criteria compatible withGovernment’s macroeconomic and sectoralpriorities byend 2004.

1.3 Country’s debt brought under control beforeend 2005.

1.4 Number of officers trained.

1.5 Equipment purchased.

1.1 DGP’s Annual Reports.

1.2 DGP’s Annual Reports.

1.3 CCA’s Annual Reports.

1.4 Project Activity Reports.

1.5 Project Activity Reports.

ADF resources and national counterpartfunds are put at the project’s disposal.

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Country: CONGOProject Name: Economic Management Support Programme (EMSP)Last Updated: June 2003Design Team: A. BA, Economist, OCCC

Hierarchy of Objectives Objectively Verifiable Indicators

Budget Resources (in UA million)

Means of Verification Major Assumptions and Risks

ADF

0.15

0.15

0.15

0.05

GVT

-

0.01

0.08

Total

0.15

0.15

0.16

0.13

1.1 Disbursement status and audit reports.

1.2 Quarterly project progress andsupervision reports.

1.1 ADF resources and the national counterpartfunds are put at the disposal of the project.

1.2 Technical assistants recruited within theprescribed deadlines.

Key Activities

a) Recruitment ofconsultants.

b) Organisation oftraining.

c) Procurement ofequipment.

d) Operation.

Category

A

B

C

D

0.50 0.09 0.59

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EXECUTIVE SUMMARY

1. Beneficiary : Republic of Congo

2. Executing Agency : PIU within the Ministry of the Economy, Finance and Budget

3. Sector : Multisector

4. Project Background

Over the 2000-2002 period, the Government had devised a reform programme supported byan IMF interim post-conflict programme (PIPC) programme and an IDA economic recovery loanfor 2000-2002. The programme could not be implemented as planned because of the weakinstitutional capacity, a hurdle to the conduct of structural and macroeconomic reforms. In June2001, the Government embarked on a staff-monitored programme that was revised and extended to theend of 2002. The programme’s revision in March 2003, revealed that macroeconomicachievements, albeit still inadequate, were improving significantly. To consolidate the trend, theGovernment undertook to strengthen reforms in the context of a staff-monitored programmecovering the first semester of 2003. Accordingly, it set to implement a capacity buildingprogramme aimed on the one hand, at promoting transparency and governance in the oil sector andon the other, at rehabilitating the non-oil sector. It is along those lines that in February 2003, theGovernment requested the Bank to finance a capacity-building project in favour in economic policymanagement administration. In concert with the World Bank which is backing the Government’sefforts through the transparency and governance enhancement project, the Bank will gear its actionto supporting macroeconomic management.

5. Purpose of the Grant

The ADF contribution of UA 0.50 million in the form of a grant will be used to finance92.3% of the foreign exchange cost, amounting to UA 0.39 million and 60% of the local currencycost or UA 0.20 million, that is 84.6% of total project cost, net of custom duties and taxes.

6. Project Objectives

The project’s sector goal is to contribute to capacity building in the areas of debtmanagement as well as the formulation and application of economic policies. More specifically,the project aims at consolidating and developing skills in the field of macroeconomic forecasting,public investment planning and monitoring of the country’s debt, while laying emphasis on humanresource development, enhancement of procedures and strengthening of work tools.

7. Project Description

The project components are:

A. Debt Management Capacity Building;

B. Public Investment Planning Enhancement; and

C. Project Management and Monitoring.

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8. Project Cost

Project cost, net of taxes and custom duties, is estimated at UA 0.59 million, of which 0.39million in foreign exchange and 0.20 million in local currency.

9. Sources of Finance

The project will be financed by the ADF to the tune of UA 0.50 million, i.e. or 84.76% of totalproject cost, net of custom duties and taxes. The Congolese Government will contribute UA 0.09million, i.e. or 15.24% of the project’s cost.

10. Project Implementation

Project activities will span 24 months, starting from the entry into force of the grant scheduledfor November 2003. The project executing agency will be the Project Implementation Unit (PIU) tobe set up in the Ministry of the Economy, Finance and the Budget. Under the responsibility of acoordinator, the PIU will be required to monitor project activities and step up coordination with theother donors involved in capacity building. A Steering Committee comprising the directoratesconcerned by the project will also be created. It will stimulate, direct, validate and supervise projectactivities.

11. Conclusions and Recommendation

11.1 Conclusions

For more than a decade now, the Republic of Congo has been faced with a severe economicand social crisis that worsened with the armed strife of 1997 and late 1998. The country’sinstitutional capacity was eroded with time as administrations were disrupted, civil servants losttheir motivation and working tools aged and became outdated. The situation worsened becausethere were no training and upgrading programmes for officers. Hence, to offset the combinedeffects of a worsening socio-economic situation and rundown administrative apparatus, theGovernment intends to build institutional capacity to manage economic and social policies. Thisproject has been designed accordingly and its implementation will contribute to better managementof the public investment programmes and debt. It is also a response to the Government’s efforts atpartial payments, which amounted to UA 20.94 million between December 2002 and July 2003.These payments virtually cover current 2003 maturities. The Bank’s strategy aims at finding asolution to the arrears problem so as to enable full resumption of its cooperation with Congo. Thisproject falls into that framework and is a tool for strengthening dialogue on arrears with theGovernment.

11.2 Recommendation

It is recommended that the Government of the Republic of Congo be provided with a grantof UA 0.50 million to finance this project.

I. PROJECT BACKGROUND AND ORIGIN

1.1 Over the 2000-2002 period, the Government devised a reform programme supported by theIMF’s post-conflict facility (the Interim Post-Conflict Programe - PIPC) and an IDA economicrecovery loan for 2000-2002. The overriding objectives of the programme were to: (i) address theimmediate security requirements ; (ii) rehabilitate core infrastructure (iii) rebuild and strengthen theinstitutional and administrative capacity by laying the foundation for good governance andapplying the rules of transparency; and (iv) improve the macroeconomic framework and socialclimate with a view to stimulating the economy’s supply capacity and promoting economic growth.The programme could not be implemented as scheduled because of the country’s political climateof persistent tension in some regions, as well as poor administrative capacity resulting from severalyears of armed conflict.

1.2 In June 2001, the Government undertook a staff-monitored programme that was updated andextended to late 2002. The programme’s review in March 2003 revealed that althoughmacroeconomic achievements are still insufficient they have improved greatly. The review alsosuggests that overall, the macroeconomic framework is on the mend. To consolidate the trend, theGovernment has resolved to take the reforms a step further in the context of a staff-monitoredprogramme for the first semester 2003. The Government intends to concentrate on public financemanagement, strategic planning and horizontal and vertical management of all resources especiallythose of the oil sector. To that end, it set to implement a capacity building programme that aimsnot only at promoting transparency and governance in the oil sector but also at rehabilitating thenon-oil sector.

1.3 The first component of the programme aims at backing major reforms that should beinitiated to enable the Government to exercise better control over oil resources which account forover 59% of the country’s gross domestic product. The purpose of the second component is toback the rebound of the non-oil sector which is faced with serious problems: an unbearable externaland internal debt; inadequate economic and social infrastructure; high costs of demobilisation andreinsertion of the displaced and young combattants;, and virtually no statistical information system.In addition, the State’s highly complex financial operations are managed by staff who often lack therequired qualifications thus creating a situation propitious to shadiness and fraudulent managementof public resources. Consequently, the Government requested the Bank in February 2003 tosupport capacity building of the economic-policy-management administration . In response to therequest, the Bank will focus its action on macroeconomic management. It is fitting to point out thatthe World Bank operation is also set to advance transparency in the oil sector.

1.4 This report was prepared following a mission to Congo in February 2003, when recenteconomic and financial data on the country was collected, the capacity building operations ofdevelopment partners assessed and stock taken of the project’s components.

II. SECTOR

Public Administration

2.1 The armed conflicts of 1997 and 1998 had severe consequences on Congo’s economic andsocial situation dealing a huge blow to the country’s institutional capacity. The extent of thedamage brought about a considerable loss of experienced and competent staff, equipment and thearchiving capacity. The country’s institutional memory was seriously undermined by theadministration’s almost total disorganisation. The under-equipment of ministerial departments andlack of a long-term training and upgrading system continues to take its toll on staff motivation. The

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low national capacity to formulate and manage macroeconomic and sectoral policies is a majorobstacle to creating the conditions for sustainable growth.

2.2 Congo’s central administration features a variety of defects that hinder its performance ineconomic management. The most constraining aspects however, concern the qualification of civilservants. Only 29% of the staff are of a supervisory level against 62% and 9%, for line staff andsupport staff, respectively. Poor staff qualification in the civil service restricts the performance of theadministration and raises the issue of its efficiency. Moreover, weak inter-departmental connections,work procedures and overlapping of missions assigned to the economic departments mean wastedefforts and duplication. Besides, a freeze in recruitment for more than a decade now has meant anaging of the management staff, with the attendant decrease in output stemming from the absence ofupgrading programmes.

2.3 In order to address this unbalance and better pinpoint the operational relations between thevarious administrative structures, in 2003, the Government has embarked on a new survey of civilservants in order to better determine staffing. The objectives of the census are: (i) administratively,seek to keep the staffing level under control and consolidate the career management policy; (ii)financially, rehabilitate public finance, particularly through control of the wage bill; and (iii) from thestandpoint of information technology, strengthen the database intended for the administrativemanagement of civil servants.

III. SUB-SECTOR

3.1 Sub-Sector Constraints

3.1.1 In terms of organisation, the Ministry of the Economy, Finance and the Budget (MEFB) isresponsible for macroeconomic management, external resource mobilisation and aid coordination .This function is closely linked with that of the Ministry of Planning, Land Development andRegional Integration (MPATIR), which is in charge of public investments formulation andprogramming, as well as preparing the country’s economic and social development plans. Thisministerial department is also required to produce economic and social statistics as well as promoteregional integration.

3.1.2 Poor coordination between the various departments of the MEFB and MPATIR hindersimplementation of consistent macroeconomic and sectoral policies. That problem, exacerbated bypoorly qualified manpower and a shortage of adequate material resources does not allow forstringent public resource management and a creation of a sound macroeconomic framework.Consequently, difficulties arise in public investment planning, in macroeconomic forecasting and inthe attempt to control the country’s debt.

The Main Directorates Concerned by the Project

3.1.3 The directorates concerned by the project are those under the two ministries mentionedearlier. They are the Equalisation Fund of Congo (Caisse congolaise d’amortissement - CCA) ofthe MEFB and the General Planning Directorate (DGP) of the MPATIR.

3.1.4 The Equalisation Fund of Congo (CCA) is a public financial institution endowed with astatus of body corporate and financial autonomy and which was established by Presidential Decreen°30-71 of 6 December 1971, modified on 5 February 2001 by Order-in-Council n° 6-2001.Primarily, it has been commissioned, on behalf of the State, to make medium and long termborrowings on the national and international markets, ensure payment of the public debt service,propose to the Government an official debt policy in keeping with the guidelines of economic and

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social development plans and fiscal resources, execute the State’s capital expenditure, and issuefinancial statements on loan-financed investment projects. One of the CCA’s major setbacks lies in itsstaff shortage and inadequate information technology equipment. Indeed, out of a 101 strong staff,only 30 or 30% of the total are of university level.

3.1.5 The situation is identical at the Debt Directorate (targeted by the project), which is manned by16 people of which only 3 are senior professionals with no special qualification in debt managementand analysis. Yet, the demands of a strict debt management liable to provide a lasting solution to thecountry’s debt problem implies that the Directorate should be able to boast of highly qualified staffand decent information technology equipment (computers and software). Poor debt managementcapacity and lack of adequate coordination between the CCA and DGP constrain debt monitoring.The country’s debt also results from the oil-collateralised loan practice that the Government haspreferred for a long time, and from a lack of transparency in the management of budget resources. Asa result, there has been a systematic build-up of debt payment arrears, which has thwarted financialcooperation with development partners and the resumption of private domestic and externalinvestment.

3.1.6 As at 31 December 2002, the external debt stock1 stood at US$ 6.47 billion (UA 5.01billion) representing a per capita debt of around 2,100 dollars. Outstanding debt was about 205.6%of the GDP, the debt service/budget earnings ratio was 82.6%, and that of the debt service/exportsstood at 27.6%. The stock of arrears at the same date was US$ 3.9 billion (UA 3.01 billion) or 59%of the debt stock and 139% of exports. The operations of most multilateral agencies, including theBank, ABEDA, IFAD and the OPEC Fund, have been suspended because of arrears. As at 30 June2003, the outstanding debt owed to the Bank Group stood at UA 139.9 million and the stock ofarrears at UA 100.16 million. To improve the CCA’s debt management performance, theGovernment will receive support from the Pole-Dette2 in the framework of a regional capacitybuilding programme. Primarily training-oriented, the programme aims at supporting the nationaldebt management and analysis skills.

3.1.7 The General Planning Directorate (DGP) with its one hundred officers, comprises thefollowing four directorates: Economic Planning; Investments; Economic Oversight; andAdministrative and Financial Affairs. The DGP is responsible for preparing, implementing andsupervising programmes and projects, establishing a projects file, defining the procedure forplanning projects and harmonising them with national objectives, and for monitoring andevaluating the physical and financial impacts of such projects. Most of the DGP universitygraduates are inexperienced. Therefore, there is a pronounced imbalance between available skillsand the scope of assignments, which impacts negatively on the consistency of the three-year publicinvestment programmes.

3.1.8 The absence of a standard mechanism for investment planning and execution in addition topoor technical capacity, means a mismatch between the projects selected and the macroeconomicpriorities set out by the Government, poor planning and budgeting of investment programmes, andunsatisfactory harmonisation of sectoral strategies. Insufficient consultation causes partitioning ofservices and the project design reference framework (padding of project briefs, inconsistent data,inadequate appraisal of projects that very often lack maturity, delay in transmission…), explains theinconsistent nature of the public investment programme (PIP) which is more a list of sometimescontradictory projects rather than a set of coherent actions established according to sector goals thatcomply with the national priorities.

1 A classification of Congo’s overall debt by category of creditor gives: (i) Paris Club 55%; (ii) commercial debt 20%;(iii) multilateral debt 11%; and (iv) others 14 %.2 Pole Dette is the training component of the Debt Relief International-backed programme. It is run jointly by theBIAO and BEAC and targets debt-management-and-analysis capacity building in the countries in the Franc zone.

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3.2 Sub-sector Constraints

3.2.1 An evaluation of the capacity of the various structures of the MEFB and MPATIR,concerned by the project, revealed striking shortcomings. The key problem that the differentdirectorates face arises from a shortage of staff with the required skills to carry through thefunctions that a strict management of economic and social policies demand. To that must be addedthe problems of demotivating working conditions. Generally speaking, the factors behind thishandicap are institutional, human and material.

3.2.2 Institutional problems stem from a non-compliance with set management procedures and alack of reliable statistical data on which to hinge consistent economic policies. Uncoordinatedactivities and a lack of working links between the various administrations involved in the country’seconomic management, particularly between the departments of the Ministry of the Economy,Finance and the Budget and those of the Ministry of Planning, Land Development and RegionalIntegration, make it difficult to implement articulate macroeconomic and sectoral policies.Problems of coordination hinder the application of rational criteria for project selection accordingto sector priorities. Public investment planning is still affected by the limited capacity to identify,monitor, supervise and evaluate projects. The planning units in the technical departments usuallyplay a low-key role in the technical ministries.

3.2.3 Human resource problems concern poor staff qualification and lack of continuous training.Moreover, a halt to staff mobility in the Civil Service makes staff redeployment difficult, althoughthat indispensable for the administration’s increased efficiency. This is especially so as the currentskills mix is inadequate to aptly meet the demands of a stringent management of the country’seconomy. As a result therefore, there are no instruments for economic and social policymanagement (economic budgets, “road maps”, decision-making tools, short-term trends, povertymonitoring indicators, evaluation systems and investment planning). Without such instruments theissue of steering the economy and allocating resources in the medium and long terms arises.

3.2.4 Material problems arise from an antiquated and aging working equipment. In particular,information technology equipment and software are often ill-adapted to the needs of an operationaladministration. The existing systems of information, documentation and communication areunrelated and unconnected and as such, economic and social information especially as regards thephysical and financial impact of public investment projects and programmes, is eclectic. The lackof modern means of communication explains why the data processing as well as the disseminationand consideration of such data during the review of macroeconomic and sectoral policies, is aproblem. Moreover, it is fitting to note that the war has had a damaging effect on the statisticsapparatus, and therefore the system for data collection and processing is deficient. Currently, theauthorities can only communicate a minimum amount of essential data, most of which isapproximations. The quality of the data produced could be improved and the timeframes fordistribution, particularly for data on national accounts, public finance and balance of payments,could be reduced.

3.2.5 Owing to the negative implications of all such constraints, the conditions for an effectivemanagement of the country’s economic and social policies seem particularly tricky. In such acontext, it is difficult to boost good governance, the progress of which is nonetheless indispensablefor the stability of the macroeconomic framework. Consequently, efforts must be made torehabilitate public finance and enhance transparency in the management of public spending. Ascarcity of human resources and low capacity to manage capital expenditure and monitor the debtare as many factors that inhibit public finance rehabilitation. The project must help to address thefollowing identified shortcomings:

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poor operational links between the MEFB and MPATIR cause an overlapping of activities,especially at the DGP and CCA, and bring about a dispersal of efforts and duplication;

poor coordination between the DGP and CCA makes it difficult to fully grasp the country’sdebt situation. Shortcomings in that respect imply a systematic build-up of debt paymentarrears, thereby restricting financial cooperation with development partners and theresumption of internal and external private investment.

lack of tools for economic management (database, management charts, instruments forpublic investment organization and financial planning, tools for project monitoring and debtmanagement, etc.) because data, in terms of quantity and quality, is not available and humanresources are unqualified; and

lack of mechanisms, procedures and techniques for project preparation, appraisal andselection causing inconsistency between macroeconomic policies and sectoral strategies.

3.3 Areas of Donor Intervention

3.3.1 Institutional support to the sub-sector is provided mainly by the World Bank, the FrenchTechnical Assistance and Cultural Action Agency, the “Agence française de développement” (FrenchDevelopment Agency), the European Union, UNDP and the Pole Dette3. In 2002, the World Bankapproved US$ 7.2 million for a governance, transparency and capacity building project. Withinthat framework, the World Bank intends to back: (i) transparency in the oil sector operations; (ii)good governance in the non-oil sectors; (iii) the privatisation process; (iv) preparation of nationalaccounts; and (v) the national HIV/AIDS action plan. The “Agence française de développement” issupporting efforts to rehabilitate public finance and plans to provide information technologyequipment worth CFAF 250 million with a view to improving the public spending chain. FrenchTechnical Assistance is also providing the MEFB with technical assistance for strengthening itsfinancial administrations. The UNDP is helping to prepare the PRSP by contributing funds towardsthe survey on household living conditions, which will help to determine Congo’s poverty indicatorsand provide the Government with expertise to supervise the survey. The European Union disposesof € 13.5 million for institutional support to the rule of law and also intends to provide technicalassistance to the MEFB for economic management. Lastly, Pole Dette is backing theGovernment’s efforts at debt management and analysis, through trainingto be provided under the aproject for the benefit of Congo,s Equalisation Fund.

3.3.2 This project is complementary to the programmes of Congo’s other development partners.Notwithstanding the need to consolidate the achievements of the various actions, the ADF’sintervention gives priority to capacity building for investment planning and debt monitoring andmanagment. During the appraisal mission, consultations were conducted with the World Bank andresulted in increased complementarity between the two operations. Thus, the ADF project will layemphasis on macroeconomic management, particularly public investment planning and public debtmanagement, whereas the World Bank’s intervention will focus more on enhancing transparencyespecially in the oil sector.

3 Pole Dette is the training component of the Debt Relief International-backed programme. It is run jointly by theBIAO and BEAC and targets debt-management-and-analysis capacity building in the countries in the Franc zone.

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IV THE PROJECT

4.1 Project Design and Rationale

4.1.1 The project is an answer to the need for institutional support to restore the managementcapacity required for a satisfactory implementation of Congo’s development programmes. It is theresult of a probe into the requirements aired by various structures and a review of the assistanceprovided by other donors. The Bank’s support will strengthen the assistance of the internationalcommunity to Congo and it is a reaction to the concerns expressed by the Government, which is intenton pursuing macroeconomic and structural reforms. The success of these reforms implies a restorationof the ability to formulate and manage policies. The project is all the more crucial as it falls into apost-conflict context the economic consequences of which are exacerbated by a external public debtburden that hampers the possibilities for economic recovery. Consequently, the project is a tool forgiving depth to the dialogue between the Bank and the Government on arrears. Indeed, it will providesupport for debt management and control of macroeconomic policies and will thus facilitate theconclusion of a PRGF with the IMF.

4.1.2 The project plans to provide a multifaceted support directed at institutional structures, humanresources and working methods; as such it seeks to promote in the beneficiary administrations aparticipatory and global approach to management capacity building. The philosophy behind thisapproach stems from the fact that the logic and complementarity of the project’s various courses ofaction for the reforms and training, must be given particular attention so that they can satisfy therequirements of a functional administration. It is in that light that the project focuses on actions thataddress two concerns: (i) the need to make up for the malfunctioning of the main structuresresponsible for economic management by introducing coherent work procedures; and (ii) the need todevelop the macroeconomic management capacity though a focused training policy.

4.2 Project Areas and Beneficiary Structures

The project’s areas of intervention were selected in concert with the beneficiary structureson the basis of needs expressed by the latter. The project therefore involves: (i) debt-management-and-analysis capacity building; (ii) strengthening of the institutional framework for coordinatingthe macroeconomic and sectoral management policies; and (iii) stepping up data production on theprojects listed in the PIP. These various actions mirror the concern to ensure not only greaterefficiency in macroeconomic management but also to support the reform efforts the success ofwhich will help open the door to the heavily indebted poor countries initiative.

4.3 Strategic Context

4.3.1 In November 2000, Congo benefited from IMF assistance under it’s the latter’s policy ofemergency assistance to post-conflict countries. In 2001, the Government undertook a staff-monitored programme, which was revised and extended to end 2002. The programme’s review inMarch 2003, revealed that macroeconomic achievements albeit inadequate were improvingsignificantly which meant that rehabilitation of the macroeconomic framework was taking afavourable turn. To consolidate the trend, a series of quantitative indicators and structurallandmarks were identified to track progress made under the staff-monitored programme for the firstsemester of 2003. The programme aims at: (i) pursuing rehabilitation of public finance; (ii)enhancing transparency in oil sector transactions; (iii) mobilising the resources needed for povertyreduction; and (iv) normalising relations with Congo’s creditors and reducing the Government’sdebt owed to the banking system. A satisfactory implementation of this programme should pavethe way to the start-up of negotiations for three-year programme backed by the IMF’s PRGF.

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4.3.2 This project falls within that framework and aims at contributing to build the institutionalcapacity needed by the Government take up the challenges of macroeconomic and structuralreforms. Furthermore, the project is an instrument of dialogue with the Government on arrears.Not only will it contribute to the establishment of an adequate mechanism for debt management, itwill also enable the Bank during various field supervision missions, to intensify dialogue with theauthorities on the issue of arrears and monitor more closely actions set in motion to rehabilitate themacroeconomic framework and create the conditions for settling arrears owed to the Bank Group.

4.4 Project Objective

The project’s sector goal is to contribute to capacity building in the areas of debtmanagement and public investment programming implementation. More specifically, the projectaims at consolidating and developing skills in the field of macroeconomic forecasting, publicinvestment planning and monitoring of the country’s debt, while laying emphasis on humanresource development, enhancement of procedures and strengthening of work tools.

4.5 Project Description

4.5.1 The main project components are:

A. Debt Management Capacity Building;

B. Public Investment Planning Enhancement; and

C. Project Management and Monitoring.

4.5.2 Description of Project Outputs: the expected outputs are:

(i) management of public investment planning, through the DGP’s improved capacityfollowing the training of its officers in project appraisal, public expenditure planningand monitoring, and procurement of adequate information technology equipment;

(ii) better monitoring of the external debt through support to the CCA with the trainingof about thirty officers of the department in the modern techniques of debtmanagement and analysis, and procurement of adequate information technologyequipment; and

(iii) logistic support (information technology equipment and office supplies) towards acomputerised management of investment project planning, physical and financialmonitoring of projects, and harmonisation of databases with projects.

Detailed Description of Project Components and Activities

Component A: Debt Management Capacity Building

Consultancy Services

4.5.3 In order to build the capacity of the CCA and improve debt management, the consulting firmwill recruit a debt specialist for a period of seven (7) months, to conduct a structural audit of the CCAand propose changes (staff re-assignments, work procedures, operational relations with the DGP)

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aimed at greater efficiency in debt management. The consulting firm will also be expected to installdebt analysis and management software, establish a database on debt and organise on-the-job trainingfor officers.

Training

4.5.4 Under this component, plans have been made to organise 3 training workshops on debtanalysis (including the debt management software to be procured), and 3 others on basic informationtechnology. Short training courses in sub-regional training organisations have also been planned. Thepurpose of these activities, involving all CCA departments, i.e. or about thirty officers, is allow thelatter to master the debt management system so as to enable them to formulate debt settlementstrategies within the framework of the heavily indebted poor countries initiative (HIPC), learntechniques for external debt negotiation and relief, investment expenditure processing, exhaustive andreliable financial flow recording, as well as supervision and audit.

Equipment, Supplies and Miscellaneous

4.5.5 The Debt Directorate will be provided with information technology and office equipmentcomprising computers fitted out with the appropriate software and accessories and a server forconnecting workstations, and 1 state-of-the-art debt management and analysis software.

Component B: Public Investment Planning Enhancement

4.5.6 The aim of this component is to strengthen the main directorates responsible formacroeconomic and sectoral management and public investment. To that end, funds have beenearmarked for technical assistants, training and procurement of equipment and modern workinginstruments.

Consultancy Services

4.5.7 The consulting firm will provide the DGP, for a period of 6 months, with a consultant requiredto improve the public investment planning process and step up efficiency of the project preparation,implementation and supervision cycle. He will also be expected to make a proposal for reorganisingthe DGP and to introduce operational links between the DGP, sectoral departments and CCA, as wellas to establish project selection procedures [appraisal and selection criteria], (cf. Annex 5 for the termsof reference of the consultants).

Training

4.5.8 The training component will be carried out by the consulting firm recruited accordingly, for theDGP. Provision has been made for computer training and thematic seminars. Regarding computertraining, seminars will be organised for over 80 individuals from the DGP’s sector planning units, theother departments of the MEFB (Budget Department, Inspectorate General of Finance, PublicAccounts Department, etc.). The objective being to make beneficiaries computer-literate. Concerningthe thematic seminars, training will cover fields as varied as modern instruments for investmentplanning, financial analysis and project review and management. The technical ministries concernedfirst and foremost by the poverty reduction programmes will have pride of place for participation inthe training workshops on project analysis: education, health, agriculture and infrastructure.Arrangements will also be made for external missions in the form of short courses or study tours. Inaddition, national counterparts will be assigned to the expert whose on-the-job training is anindispensable condition for the sustainability of project achievements.

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Information Technology Equipment and Software

4.5.9 Steps have been taken to allocate project funds to the DGP, for the procurement of informationtechnology equipment and software required for its use. Servers will also be procured for connectingworkstations.

Component C: Project Management and Follow-up

4.5.10 A Project Implementation Unit (PIU) will be set up in the Ministry of the Economy, Financeand the Budget through a ministerial order. It will be the operational project management structurewhose mission it will be to coordinate and ensure that all project components are implemented.Furthermore, to guarantee an efficient direction and coordination of project activities, a SteeringCommittee charged with project supervision and implementation will be set up. The PIU, entrustedwith the role of technical secretariat of the Steering Committee, will be responsible for regularpreparation of reports on project implementation, to be submitted to the Committee and ADF. Inconnection with this component, a package has been set aside for information technology equipment,office supplies and consumables.

Equipment, Supplies and Sundry

4.5.11 The information technology equipment planned for the PIU include 3 computers, 3 laserprinters and 1 photocopier. A liaison vehicle which will be paid for by the Government.

4.6 Project Cost

Total project cost, net of taxes and custom duties stands at UA 0.59 million, including 0.39million in foreign exchange and 0.20 million in local currency. The costs are detailed in Annex 4 andTables 4.1 and 4.2 summarise them briefly by component and by expenditure category. Costs includea 5% provision for physical contingencies and 4% for price escalation in foreign exchange and localcurrency.

Table 4.1Cost Estimates by Component

CFAF million UA million

COMPONENT F.E. L.C.TotalCost F.E. L.C.

TotalCost

%F.E.

B. Debt management capacity building 155.92 39.85 195.77 0.19 0.05 0.23 79.65

A. Public investment planningenhancement 116.69 38.16 154.85 0.14 0.05 0.19 75.36

C. Project management support 28.95 71.62 100.57 0.03 0.09 0.12 28.78

Total Base Cost 301.56 149.63 451.20 0.36 0.18 0.54 66.84

Physical contingencies (5%) 15.08 7.48 22.56 0.02 0.01 0.03

Sub-Total 316.64 157.11 473.76 0.38 0.19 0.57

Price escalation (4%) 12.06 5.99 18.05 0.01 0.01 0.02

Project Cost 328.70 163.10 491.80 0.39 0.20 0.59

In % of total project cost 66.84 33.16 66.84 33.16

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Table 4.2Cost Estimates by Expenditure Category

CFAF million UA millionF.E. L.C. Total F.E. L.C. Total %

Cost Cost F.E.

1. Consultancy services 117.00 117.00 0.14 0.14 100.00

2. Training 64.80 50.60 115.39 0.08 0.06 0.14 25.58

3. Equipment 119.77 0.00 119.77 0.14 0.00 0.14 100.00

4. Operating costs 99.04 99.04 0.12 0.12 0.00

Total Base Cost 301.56 149.63 451.20 0.36 0.18 0.54

Physical contingencies(5%) 15.08 7.48 22.56 0.02 0.01 0.03

Sub-Total 316.64 157.11 473.76 0.38 0.19 0.57

Price escalation (4%) 12.06 5.99 18.05 0.01 0.01 0.02Project Cost 328.70 163.10 491.80 0.39 0.20 0.59

In % of total project cost 66.84 33.16 66.84 33.16

4.7 Sources of Finance and Expenditure Schedule

The project will be financed jointly by the Congolese Government and ADF as indicated inTables 4.3 and 4.5 below. According to the Tables, the ADF grant of UA 0.5 million represents84.76% of the project’s cost and covers 97% of the foreign exchange cost, part of the local currencycost of training and a portion of the Project Implementation Unit’s operating expenses. The CongoleseGovernment will defray the balance of the local currency expenses or UA 0.08 million, and UA 0.01million of the foreign exchange, representing 15.24% of the project’s cost. The Government willdefray operating costs and pay for a liaison vehicle for the Project Implementation Unit as well as andoffice supplies.

Table 4.3Sources of Finance (UA million)

Source F.E. L.C. Total %

ADF 0.38 0.12 0.50 84.76

Government 0.01 0.08 0.09 15.24

Total 0.39 0.20 0.59 100.00

Table 4.4Expenditure Schedule by Component

CFAF million UA million

COMPONENT 2004 2005 Total 2004 2005 Total %

B. Debt management capacity building 145.24 68.15 213.39 0.17 0.08 0.26 43.39

A. Public investment planningenhancement 132.30 36.49 168.79 0.16 0.04 0.20 34.32

C. Project management support 70.59 39.04 109.63 0.08 0.05 0.13 22.29

Total 348.13 143.68 491.80 0.42 0.17 0.59 100.00

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Table 4.5Expenditure Schedule by Source of Finance

(UA million)

2004 2005 Total %

ADF 0.39 0.11 0.50 84.76

Government 0.03 0.06 0.09 15.24

TOTAL 0.42 0.17 0.59 100.00

V. PROJECT IMPLEMENTATION

5.1 Executing Agency

5.1.1 The project will be implemented by the Project Implementation Unit (PIU) created in theMinistry of the Economy, Finance and the Budget. Given the human and organisational capacity ofthe various directorates of the Ministry on the one hand, and because the project concerns severalstructures on the other, the PIU must be independent in order to ensure efficient implementation andfollow-up of project activities. A senior officer who will be required to coordinate project activitieswill be assigned to the PIU. His/her recruitment will be contingent upon prior approval of his/hercurriculum vitae by the Fund. Moreover, the incumbent will be expected to ensure closer coordinationwith other donor agencies especially the World Bank, UNDP and France, involved in institutionbuilding. The PIU will be expected to prepare and submit to the Fund, quarterly reports, trainingcurricula and any other document concerning this project. It will keep reliable accounts that willfacilitate follow-up and control of expenditure by category, and preparation of the project’s financialevaluation reports. In the daily conduct of his/her duties, the Coordinator will be assisted by anaccountant, a secretary and messenger-driver.

5.1.2 An operating budget will be allocated to the project with a view to ensuring itsimplementation. It will cover primarily the following aspects:

(i) the operating costs of the Implementation Unit and sundry office supplies; and

(ii) the benefits allocated to staff of the Project Implementation Unit.

5.2 Institutional Arrangements

For “project management and follow-up” provision has been made for the creation of the PIUand the establishment of a Steering Committee whose chairman will be appointed by the Minister ofthe Economy, Finance and the Budget. It will comprise representatives of the Debt Directorate (CCA,the DGP, DGE and the Office of the MEFB) and to ensure that the project objectives are met, it willpropose appropriate solutions to the any problems encountered in the context of its implementation.Thus, it will play the role of structure expected to stimulate, direct, validate and supervise projectactivities. Furthermore, it will ensure harmonisation of the training curricula that should be sent tothe Bank not later than six (6) months following entry into force of the grant. The SteeringCommittee will endorse activity reports by the consultants and ensure application of theirrecommendations, especially those relating to the structural re-organisation of the departments andintroduction of new work procedures. The Steering Committee should advise on the reportssubmitted by the consultants within a two-week timeframe. Past this period, reports submitted willbe considered as having been endorsed by the Committee.

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5.3 Implementation Schedule

The grant will enter into force in November 2003, and project implementation should lasttwenty-four (24) months. Project completion is scheduled for December 2005. Project activitieswill start with the appointment of support staff and procurement of equipment.

Table 5.1Provisional Project Implementation Schedule

Activities1. Board presentation2. Signing of grant protocol3. Entry into force of grant4. Project launching mission5. Invitation of bids6. Delivery of goods and services7. Recruitment of consultants8. Midterm review mission9. Supervision mission10. Annual audit of accounts11. End of project12. Completion report

ResponsibilityADFDADF/GOVTADF/GOVTADFPIUPIUPIUADFADFADF

ADF

Date/PeriodSeptember 2003October 2003November 2003December 2003January 2004May 2004May 2004January 2005June 2005Feb. to Dec.2005December 2005February 2006

5.4 Goods and Services Procurement Arrangements

5.4.1 Procurement arrangements are summarised in Table 5.2. All goods and services financed bythe Bank will be procured in compliance with Bank Rules of Procedure for the Procurement ofGoods or Bank Rules of Procedure for the Use of Consultants, as the case may be, using theappropriate standard bidding documents of the Bank.

Goods

5.4.2 Contracts for the supply of goods worth over UA 100,000 each will be awarded in accordancewith ICB procedures. Contracts for the procurement of information technology and office equipment(computers and accessories, printers, scanners, software, photocopies) for a total value of UA 0.13million, will be awarded on the basis of international competition.

5.4.3 Various other goods such as sundry supplies, airplane tickets, consumables, office furnitureand equipment, a variety of external services and operating expenses estimated at less than UA30,000 per contract but not exceeding UA 380 000 in all, will be subject to national shopping.

Consultancy Services and Training

5.4.4 A consulting firm will be recruited on the basis of a shortlist to provide consultancy servicesand training. The following consultants will be required: a debt management expert (7 months) anda public-investment-planning expert (6 months).

Audit

5.4.5 Project auditing (UA 0.02 million) will be subject to competition based on a short list ofaudit firms.

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Rules and Regulations, Executing Agency

5.4.6 The PIU will be responsible for the award of contracts for goods, services and training underthe project. The resources, capacity, expertise and experience of the project manager will be adequateto carry through the procurement process.

General Procurement Notice and Review Procedure

5.4.7 The text of the General Procurement Notice has been adopted with the Government and willbe published in Development Business, upon approval of the grant proposal y the Board of Directors.The following documents will be submitted to the Bank for review and approval before publication: (i)specific procurement notices; (ii) pre-selection notices (if applicable); (iii) bidding documents andletters of invitation to consultants; (iv) reports on the evaluation of bids from contractors and suppliersor consultants’ proposals, and the reports should include recommendations on contract award, and tothat end, the Bank’s prior opinion on the bidding document and the technical analysis report isrequired; and (v) draft contracts in the event of modification of the terms of the bidding documents.

5.4.8 Procurement arrangements are summarised in Table 5.2 below. All goods and servicesfinanced by the Bank will be procured in compliance with Bank Rules of Procedure for theProcurement of Goods or Bank Rules of Procedure for the Use of Consultants, as the case may be,using the appropriate standard bidding documents of the Bank. The PIU will be responsible for theaward of contracts for goods, services and training. The resources, capacity, expertise andexperience of the project manager shall be adequate to carry through the procurement process.

Table 5.2Goods and Services Procurement Arrangements

In UA million

Shortlist

Expenditure Category ICB LCB Other *

Financingother thanTAF Total

1. Goods

1.1 Information technologyand automationofficeequipment 0.13 0.13

1.2 Furniture and material 0.02 0.021.3 Vehicle 0.01 0.01

2. Consultancy servicesand training

2.1 Technical assistance 0.15 0.152.3 Training 0.15 0.153 Operating

3.1 Audit 0.02 0.02

3.2 Various local servicesand operation 0.03 0.08 0.11

TOTAL 0.13 0.05 0.32 0.09 0.59

*Shortlist applies to the use of consultants only.- “Other” refers to shortlist, international competitive bidding, national shopping and direct negotiation.

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5.5 Disbursement Arrangements

Disbursements for operating expenses will be made through the special account replenishedin compliance with terms approved by the ADF. The opening of this special account in a bankacceptable to the Fund and communication to ADF of details thereof is a condition for the entryinto force of the grant. Application for replenishment of the revolving fund should be sent to theBank after utilisation of 50% of the resources available, accompanied by a programme of activitiesand a recapitulation justifying utilization of the previously released resources. Disbursements oncontracts (for equipment, supplies, etc.) will be made directly to suppliers. The executing agencywill see to it that the services of the various project suppliers and service providers are consistentwith specifications before dispatching them to the Bank and it will prepare the disbursementrequests.

5.6 Follow-up and Evaluation

Follow-up and evaluation of project implementation will be the responsibility of the PIUand Steering Committee. The PIU will keep the beneficiary and Fund informed through regularquarterly activity reports sent in a format agreed to by the Bank. These reports will cover, for thequarter in question, aspects relative to project implementation, including progress, expenditure,work plan, a review of the slippages recorded, as well as possible problems encountered andsolutions proposed. They will also give an overview of activities for the next quarter. In addition,the PIU will prepare a wrap-up report in the six months following project completion.

5.7 Financial and Audit Reports

Project accounts will be kept by the PIU using a private-type accounting plan. To that end, itwill keep detailed ledgers showing expenditure by component, category and source of finance, aswell as separate accounts for all Bank-financed operations. Project accounts will be audited once ayear by an external audit firm with ADF funding, and the reports sent straight to the Bank. Thefirst audit has been scheduled for February 2005.

5.8 Donor Coordination

Aid coordination is the responsibility of the Inter-ministerial Reform Monitoring Committeeset up by the Government and chaired by the Ministry of the Economy, Finance and the Budget.This Committee steers implementation of the World Bank’s capacity building and transparencyproject as well as all operations designed to rebuild and modernise the administration. Its goal iscloser coordination between the various players in the drive to avoid duplication. Moreover, thediscussions that the appraisal mission had with donors present in Brazzaville (World Bank, the IMFResident Adviser, the United States Embassy, the European Union, French Technical Assistanceand UNDP), made it possible to strengthen consultations on their various operations. Plans havebeen made in that connection to create a permanent consultation framework, not only during fieldmissions but also within the Inter-ministerial Reform Monitoring Committee. One of the missionsof the latter Committee is to create synergy between all the capacity building activities of thedifferent partners.

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VI. PROJECT SUSTAINABILITY AND RISKS

6.1 Recurrent Project Costs

Project implementation will call for the procurement of a number of computers in the drive tocomputerise the main directorates of the MFEB and MPATIR. Maintenance of these computers willinvolve recurrent expenses that will gradually be integrated into the operating expenses of theadministrative structures concerned. In the long term, the Government should defray such expenses.Besides, the only expected recruitment is that of the accountant, the other staff will be seconded to thePIU. The coordinator will be entitled only to benefits that will cease upon completion of the project.

6.2 Project Sustainability

Sustainability of the achievements of the project effects will depend to a great extent on thesatisfactory implementation of the Government’s capacity building programme, as well as on theredeployment of staff in the context of the ongoing civil service reform designed to provide thevarious structures with the relevant skills to define, apply and monitor economic policies.Similarly, it will be vital to create motivating working conditions to encourage staff stability. Theimplementation of the customized training programme within the framework of this project willcontribute to capacity building for public investment programming, project monitoring and debtmanagement. The continuity of these skills will be highly dependent on the stability of the officerstrained. Furthermore, supervision and on-the-job training of national counterparts by the technicalassistants is of great importance as it is a way of capitalising experience, which ensures thesustainability of project achievements. Of course, to ensure success of the project andconsolidation of its outputs, each consultant must be assigned a national counterpart expected tosecond him in his duties and take over ultimately.

6.3 Major Risks and Mitigating Measures

The main project risks are: (i) persistent insecurity especially in the Pool Region (ii) the scale ofthe country’s debt crisis which impacts negatively on the State’s financial credibility and limitsexternal aid to the country; and (iii) the poor institutional capacity of the administration, which wasbadly affected by the armed conflicts of 1997 and 1998. Concerning the first risk, the negotiations thattook place between the Government and the leader of the “Ninja” rebels and which culminated in thesigning of a peace agreement on 17 March 2003, marks a decisive step towards the consolidation ofpeace in the country. As to the second risk arising from the debt situation, the efforts made by theGovernment with assistance from the Pole-Dette should lead to adequate human and materialresources for a enhanced debt management. Lastly, regarding the third risk of limited capacity, theGovernment’s resolve to rebuild and modernise the administration through capacity building, with thehelp of development partners, especially the World Bank, via the transparency, governance andcapacity building project should contribute to attenuating the risk. In addition, implementation of thecivil service reform, which aims at streamlining staffing and developing human resource will impactpositively on the institutional capacity of Congo’s central administration.

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VII. PROJECT BENEFITS

7.1 Economic and Social Benefits

7.1.1 The institutional capacity of the administrations in charge of formulating, implementing,monitoring and evaluating Congo’s economic policies leave much to be desired. Officers of thedirectorates concerned generally lack the requisite skills and experience to control management ofthe country’s economic policies. Moreover, the lack of pluridisciplinary teams, particularly in thearea of public investment project review and selection, is a major constraint, which restricts thepossibility of making the right choice of sectoral strategies in line with the poverty reductionobjectives. To attenuate the constraint, the Congolese Government should underscore humanresource development within the framework of the ongoing civil service reform.

7.1.2 Against that backdrop, the project will contribute to ease such constraints by buildingcapacity through customized training in macroeconomic management (rationalisation of publiccapital expenditure and debt monitoring), planning-budgeting techniques and physical and financialmonitoring of public investment programmes. Implementation of the training component willfurther the Government’s action and contribute to improving the efficiency of public spending,facilitating thereby attainment of the performance criteria, particularly in the area of public finance,which is a prerequisite for becoming eligible to the HIPC initiative. In addition, the project willhelp put in place, harmonised databases on projects and the debt and thus facilitate formulation andapplication of coherent policies in line with the poverty reduction strategy framework.

7.2 Impact on Cross-cutting Issues

7.2.1 Impact On Poverty Reduction: The project will have a major social impact as it should enableinter alia a systematic exchange of information between the various departments of the MEFB andthe MPATIR with a view to increased efficiency of economic and social policies for povertyreduction. Actions to improve public investment planning for a rationalisation of budget expenses,on the one hand, and on the other, for better project selection should lead to more effectivemanagement of public finance, which will no doubt benefit the social sectors (education andhealth).

7.2.2 Environmental Impact of the Project: given its components, this institutional support projectshould not have a negative impact on the environment. On the contrary, through capacity buildingfor project identification and ex-ante analysis, it will enable the sectoral policy planning officers topay special attention to environmental aspects when defining investment programmes. The projectis classified under category 3.

7.2.3 Impact on Governance: the project will impact positively on governance by helping toimprove the country’s macroeconomic management capacity through support to the CCA andDGP. Control of capital expenditure and rationalisation of the country’s debt policy shouldimprove public finance management, thus promoting in the process, rehabilitation of themacroeconomic framework, which is indispensable for strengthening economic governance.

7.2.4 Impact on Women: capacity building project selection, in keeping with the povertyreduction strategy, will be positive for public investment on women who are severely hit bypoverty. Similarly, through the training seminars scheduled under the project, special attentioncould be paid to the issue of gender mainstreaming into sectoral strategies.

17

7.2.5 Impact on Private Sector Development: In line with the Government’s drive to create theconditions for sustainable economic recovery, through privatisation of public enterprises andrehabilitation of the macroeconomic framework, the project will lay the groundwork for aninstitutional environment propitious to private sector development. The support that the projectwill provide to improve public investment planning is designed to promote the participation of theprivate sector and the entire civil society in the country’s economic and social advancement.

VIII. CONCLUSION AND RECOMMENDATIONS

8.1 Conclusion

For more than a decade now, the Republic of Congo has been faced with a severe economicand social crisis that worsened with the armed strife of 1997 and late 1998. The country’sinstitutional capacity was eroded with time as administrations were disrupted, civil servants losttheir motivation and working tools became outdated. The situation worsened because there wereno training and upgrading programmes for officers. Hence, to offset the combined effects of aworsening socio-economic situation and rundown administrative apparatus, the Governmentintends to build institutional capacity to manage economic and social policies. This project wasdesigned accordingly and its implementation will enhance management of the public investmentprogrammes and debt. It is also a response to the Government’s efforts at partial payments, whichamounted to of UA 20.94 million made between December 2002 and July 2003. These paymentsvirtually cover current 2003 maturities. The Bank’s strategy aims at finding a solution to thearrears problem so as to enable full resumption of its cooperation with Congo. This project fallsinto that framework and is a tool for strengthening dialogue on arrears with the Government.

8.2 Recommendations

In view of the foregoing, it is recommended that an ADF grant not exceeding UA 0.5million be allocated to the Government of the Republic of Congo to finance the project. Entry intoforce of the grant shall be subject to fulfilment of the following specific conditions precedent todisbursement:

(i) Provide evidence that a special account has been opened for the project in a bankacceptable to the Fund, into which the ADF resources will be paid (§ 5.5);

(ii) Provide the Fund with evidence that the PIU has been set up (§ 5.1.1);

(iii) Provide evidence that the Project Steering Committee, comprising managers of thedirectorates concerned by the project, has been set up (§5.2);

(iv) Provide evidence of the appointment of an officer, whose qualification and experiencewill be subject to prior Fund approval, as coordinator of project activities (§ 5.1.1);

The Donee shall furthermore:

(i) Submit to the Fund the training curricula, not later than six (6) months following entryinto force of the grant (para. 5.2);

Annex 1

CONGOADMINISTRATIVE MAP

This map was drawn is for the exclusive use of the readers of the report to which it is attached. The names used and the borders do not implyon the part of the Bank Group and its members, any judgement concerning the legal status of a territory nor any approval or acceptance ofthese borders.

CENTRAL AFRICAN REPUBLIC

CAMEROON

DRC

DRC

ATLANTICOCEAN

Annex 2

ORGANIZATION CHART OF THE PROJECTIMPLEMENTATION STRUCTURE

Secretary Driver

Comp. 1 Comp. 2 Comp. 3

Accountant

Coordinator

Steering Committee

MEFB

Annex 3Page 1 of 2

CONGO: Detailed Project Cost

CFAF Million UA MillionPROJECT COMPONENTS & UP 2004 2005 Cofin. 2004 2005 Cofin

EXPENDITURE CATEGORIES Units QCFA

F 000. L.C. F.E. L.C. F.E. Total TAF GVT L.C. F.E. L.C. F.E.. Total TAF GVT

COMPONENT ADebt management capacity building

1. ConsultantsInternational expert/ debt specialist Month 7 9000 31.5 31.5 63.0 63.0 0.038 0.038 0.076 0.076

Sub-total consultants 31.5 31.5 63.0 63.0 0.038 0.038 0.076 0.0762. Training

Training in debt management (external courses) Pers 10 3600 18.0 18.0 36.0 36.0 0.022 0.022 0.043 0.043

Information technology training workshopsWorksh

. 3 4600 13.8 13.8 13.8 0.017 0.017 0.017

Debt management workshopsWorksh

. 3 4600 6.9 6.9 13.8 13.8 0.008 0.008 0.017 0.017Sub-total training 20.7 18.0 6.9 18.0 63.6 63.6 0.025 0.022 0.008 0.022 0.076 0.076

3. Equipment, Supplies and SundryPC (PIII, 866 Mhs, 128 Mo, 10 G0, Modem, Office 2000) PC 14 850 11.9 11.9 11.9 0.014 0.014 0.014Servers Serv. 1 2000 2.0 2.0 2.0 0.002 0.002 0.002Laptops Ord. 3 1100 3.3 3.3 3.3 0.004 0.004 0.004Laser printers Printer 8 608 4.9 4.9 4.9 0.006 0.006 0.006

Matrix printerMat.

Print.. 2 400 0.8 0.8 0.8 0.001 0.001 0.001UPS Undu. 14 200 2.8 2.8 2.8 0.003 0.003 0.003Scanners Scan. 1 250 0.3 0.3 0.3 0.000 0.000 0.000Network connection CCA 11.0 11.0 11.0 0.013 0.013 0.013Debt management software 20.0 20.0 20.0 0.024 0.024 0.024

Sub-total equipment 56.9 56.9 56.9 0.068 0.068 0.0684. Operating costs 6.1 6.1 12.2 12.2 0.007 0.007 0.015 0.015

Base cost 26.8 106.4 13.0 49.5 195.8 183.5 12.2 0.03 0.13 0.02 0.06 0.23 0.22 0.01Physical contingencies (5%) 1.3 5.3 0.7 2.5 9.8 9.2 0.6 0.00 0.01 0.00 0.00 0.01 0.01 0.00Provision for inflation (4%) 1.1 4.3 0.5 2.0 7.8 7.3 0.5 0.00 0.01 0.00 0.00 0.01 0.01 0.00

TOTAL COMPONENT A 29.2 116.0 14.2 54.0 213.4 200.0 13.4 0.04 0.14 0.02 0.06 0.26 0.24 0.02

COMPONENT B

Public investment management support1. Consultants

Expert in public investment planning Month 6 9000 54.0 54.0 54.0 0.065 0.000 0.065 0.0652. Training

Workshop on investment planningWorksh

. 2 4600 4.6 4.6 9.2 9.2 0.006 0.011 0.011

Workshop on project analysis and managementWorksh

. 3 4600 6.9 6.9 13.8 13.8 0.008 0.008 0.017 0.017Short-term external training 8 3600 14.4 14.4 28.8 28.8 0.017 0.017 0.035 0.035

Sub-total formation 11.5 14.4 11.5 14.4 51.8 51.8 0.008 0.017 0.014 0.017 0.062 0.0623. Equipment

PC (PIV, 866 Mhs, 256Mo, 20 G0, Modem, Office XP) PC 8 850 6.8 6.8 6.8 0.008 0.008 0.008

Annex 3Page 2 of 2

CONGO: Detailed Project Cost

Servers Serv. 1 2000 2.0 2.0 2.0 0.002 0.002 0.002Laser printers Print. 5 1100 5.5 5.5 5.5 0.007 0.007 0.007

UPS Undu 8 200 1.6 1.6 1.6 0.002 0.002 0.002

Networking 18.0 18.0 18.0 0.022 0.022 0.022Sub-total equipment 33.9 33.9 33.9 0.041 0.041 0.041Operating costs 7.6 7.6 15.2 15.2 0.009 0.009 0.018 0.018

Base Cost 19.1 102.3 19.1 14.4 154.9 139.7 15.2 0.017 0.123 0.023 0.017 0.186 0.167 0.018Physical contingencies (5%) 1.0 5.1 1.0 0.7 7.7 7.0 0.8 0.001 0.006 0.001 0.001 0.009 0.008 0.001

Provisions for inflation (4%) 0.8 4.1 0.8 0.6 6.2 5.6 0.6 0.001 0.005 0.001 0.001 0.007 0.007 0.001TOTAL COMPONENT B 20.8 111.5 20.8 15.7 168.8 152.3 16.5 0.019 0.134 0.025 0.019 0.202 0.182 0.020

COMPONENT CProject management and follow-up

1. Equipment, supplies and sundryPC (PIV, 866 Mhs, 256Mo, 20 G0, Modem, Office XP) Comp.. 2 850 1.7 1.7 1.7 0.002 0.002 0.002Laptops Lapt. 0 1100 0.0 0.0 0.0 0.000 0.000 0.000Laser printers Impr. 1 1100 1.1 1.1 1.1 0.001 0.001 0.001UPS Und. 2 200 0.4 0.4 0.4 0.000 0.000 0.000Scanners Scan. 1 250 0.3 0.3 0.3 0.000 0.000 0.000Photocopier Phot. 1 0 0.0 0.0 0.0 0.000 0.000 0.000Liaison vehicle Vehi. 1 11500 11.5 11.5 11.5 0.014 0.014 0.014Equipment, office furniture 14.0 14.0 14.0 0.017 0.017 0.017

Sub-total equipment 28.9 28.9 17.4 11.5 0.035 0.035 0.021 0.0142 Operating cost

Computer maintenance Year 2 1800 1.8 1.8 3.6 3.6 0.002 0.002 0.004 0.004Vehicle maintenance, fuel and insurance 4.0 4.0 8.0 8.0 0.005 0.005 0.010 0.010Project coordinator’s allowance Month 24 450 5.4 5.4 10.8 10.8 0.006 0.006 0.013 0.013

Accountant Month 24 200 2.4 2.4 4.8 4.8 0.003 0.003 0.006 0.006Secretary Month 24 180 2.2 2.2 4.3 4.3 0.003 0.003 0.005 0.005Driver Month 24 120 1.4 1.4 2.9 2.9 0.002 0.002 0.003 0.003Other operating costs (rent...) 10.9 10.9 21.8 21.8 0.013 0.013 0.026 0.026

5. Audit 2 7700 7.7 7.7 15.4 15.4 0.009 0.009 0.018 0.018Sub-total operating cost 35.8 35.8 71.6 41.8 29.8 0.043 0.043 0.086 0.050 0.036

Base cost 35.8 28.9 35.8 100.6 59.2 41.3 0.043 0.035 0.043 0.121 0.071 0.050Physical contingencies (5%) 1.8 1.4 1.8 5.0 3.0 2.1 0.002 0.002 0.002 0.006 0.004 0.002Provisions for inflation (4%) 1.4 1.2 1.4 4.0 2.4 1.7 0.002 0.001 0.002 0.005 0.003 0.002

TOTAL COMPONENT C 39.0 31.6 39.0 109.6 64.6 45.1 0.047 0.038 0.047 0.131 0.077 0.054

BASE COST OF PROJECT 81.7 237.7 67.9 63.9 451.2 382.5 68.7 0.09 0.28 0.08 0.08 0.54 0.46 0.08Physical contingencies (5%) 4.1 11.9 3.4 3.2 22.6 19.1 3.4 0.00 0.01 0.00 0.00 0.03 0.02 0.00

Provisions for inflation (4%) 3.3 9.5 2.7 2.6 18.0 15.3 2.7 0.00 0.01 0.00 0.00 0.02 0.02 0.00

TOTAL PROJECT COST 89.1 259.1 74.0 69.6 491.8 416.9 74.9 0.10 0.31 0.09 0.08 0.59 0.50 0.09

Annex 4

Detailed Project Implementation Schedule

DETAILED PROJECT IMPLEMENTATION SCHEDULE

Year 2 0 0 3 2 0 0 4 2 0 0 5

Activities Months S O N D J F M A M J J A S O N D J F M A M J J A S O N D

Board Presentation

Signing of grant protocol

Entry into force of grant

Establishment of PIU

Setting up of Steering Committee

Equipment

Procurement of information technology equipment

Delivery of goods and start-up

Consultants

Expert in investment planning

Debt expert

Training: seminars and workshops

Computer science workshop

Thematic workshops

External training or study tours

Annual audit of accounts

Operating cost

Annex 5Page 1 of 5

CAPACITY BUILDING PROJECT

Terms of Reference of the Consultants and Project Executing Agencies

Expert in Public Investment Planning:

Objective:

The expert will be required to strengthen the General Planning Directorate in its publicinvestment programming and monitoring functions as well as coordinate the actions of theother directorates involved in public investment management.

Duties:He will be required to:

1. Analyse the investment planning system in its entirety while giving special attention tothe following points:

(i) a review of the DGP’s organisational structure in order to propose areorganisation and a redeployment of its staff in the various services;

(ii) the operational capacity for project identification, selection, implementationand monitoring-evaluation; and

(iii) the operational links between the DGP, DGE, Debt Directorate and thetechnical departments when drawing up the public investment programmes;

2. Diagnose with precision the aspects mentioned above and propose measures likely toimprove, from the administrative and technical standpoints, the efficiency of the systemin PIP execution and resource utilisation,;

3. Propose a mechanism for consultation between the DGP and technical departmentswhen defining sector and investment planning strategies;

4. Propose a method for improving project implementation, external aid coordinationthrough efficient disbursement control;

5. Formulate recommendations on how to improve the information management system forphysical and financial project monitoring and implementation;

6. Standardise a method for the evaluation, planning, budgeting and both the physical andfinancial monitoring of projects and assess their impact on the national economy(excluding direct financial impact);

7. Work out a training programme on project management and monitor its implementation;

Annex 5Page 2 of 5

8. Develop models for preparing the reports and project monitoring and evaluation notes;

9. Check and evaluate consistency between the public investment programmes, the projectsselected and their impact on sector policies, especially on poverty;

10. Participate in the design and implementation of a training programme for officers of theDGP and main technical departments;

11. Give lectures to DPG officers on the project cycles and evaluation techniques;

Skills Required

The applicant for this position must hold a post-graduate degree in development economics(PhD level), possess sound experience of at least ten years in public project management inAfrica. He/she must have a good knowledge of French which is the country’s workinglanguage.

Duration of Contract: Six (6) months.

Duty Station: Ministry of the Economy, Finance and the Budget, Directorate General ofPlanning, Brazzaville (Congo).

Annex 5Page 3 of 5

Expert in Public Debt Management and Follow-up

Objective:

The Consultant, an expert in public debt management will be required to build CCA’stechnical and administrative capacity. He/she should, in collaboration with the DGP, ensurethat the statistics provided by the Treasury, CCA and Central Bank on the external debt areconsistent.

Duties:

Primarily he will be expected to:

1. Take precise stock of the situation: the institutional environment and the availablehuman and material resources;

2. Propose, on that basis, measures likely to enhance the efficiency of the CAA fromthe administrative and technical standpoints (reorganisation and staffredeployment);

3. Propose a method for proper management of the public debt in view of a regularrepayment of maturities owed to the country’s development partners;

4. Establish a file of the procedures and regulations of the lead bilateral andmultilateral sources of official development assistance;

5. Install a debt management software and train officers on its use;

6. Give lectures to CCA officers on the techniques for public debt monitoring andmanagement.

Qualifications:

The applicant for this position must hold a post-graduate degree of PhD level and possesssound experience of at least ten years in public debt management. He/she must have a goodknowledge of the financing mechanisms of multilateral institutions. In addition, he/she mustbe computer-literate and have a good knowledge of cutting-edge debt management andanalysis software.

Duration of contract: Seven (7) monthsDuty Station : Ministry of the Economy, Finance and the Budget, Caisse

congolaise d’amortissement/Debt Directorate/CCA, Brazzaville(Congo)

Annex 5Page 4 of 5

Terms of Reference of the Coordinator

Objective:

Under the supervision of the Project Steering Committee, the Secretary/Coordinatorwill be required to monitor all project related activities. He/she will be expected to produce alldocuments regarding the operation of the project, which the Government and Bank will need.

Duties:

He/she will be required primarily to:

(i) Manage the project on a day-to-day basis and coordinate actions with otherinstitutions;

(ii) Submit to the Steering Committee all problems encountered in the context ofproject implementation and possibly propose concrete solutions;

(iii) Carry out all functions relating to the award of contracts;

(iv) Check compliance with Bank Rules of Procedure for the Procurement of Goodsand Works, on behalf of the Government and in the context of the project;

(v) Establish, with the help of the technical assistants, a capacity buildingprogramme (local training, seminars, study tours, etc.) to be carried out withinthe framework of the project;

(vi) Prepare quarterly reports for the attention of the Bank and Government statingproject trend and progress;

(vii) Participate in all meetings and working sessions convened by the Governmentor any other donor, likely to give new ideas for improving Congo’s economicand social management capacity.

Skills Required:

The applicant for this position should hold a university degree in economics andpossess sound experience in institutional development and macroeconomic management.He/she must have a good knowledge of procurement procedures and at least five years ofexperience in central government or international organisations. A thorough knowledgeof French, the country’s working language, is indispensable.

Duration of contract: Two (2) years.Duty Station : Brazzaville (Congo)

Annex 5Page 5 of 5

Composition and Terms of Reference of the Steering Committee

Composition