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

PEP Private Enterprise Partnership for Africa

PER Public Expenditure Review

PETS Public Expenditure Tracking Survey

PFM Public financial management

PHU Public health unit

PIU Project implementation unit

PPIAF Public-Private Infrastructure Advisory Facility

PPP Public-Private Partnership

PRGF Poverty Reduction and Growth Facility

PRS Poverty Reduction Strategy

PRSP Poverty Reduction Strategy Paper

PSC Public Services Commission

PSD Private sector development

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)

5 http://wbl.worldbank.org/data/exploreeconomies/sierra-leone/

5

annual per capita growth rates could be 3.3 percentage points higher than those recorded in recent years.

The total installed energy generation capacity in the country has increased to 90MW since the

commissioning of the Bumbuna dam in late-2009. At the same time, the national distribution network

suffers from high technical and non-technical losses caused by lack of maintenance, overloading and

inadequate metering, billing and revenue collection. Access to electricity is extremely low, at an

estimated 6 percent of the population, while tariffs remains high even by regional standards. The National

Power Agency (NPA) faces endemic structural and operational issues. Improving its technical and

operational performance is a critical step to raising fiscal viability and overall performance of Sierra

Leone‘s power sector. The transport infrastructure has been upgraded during the CAS period, with most

of the district headquarters being connected, and a number of urban roads being constructed and

upgraded. The network of feeder roads has expanded and is starting to show a positive impact on

agricultural production and marketing.

15. The recent track record on structural reforms has been mixed, and requires renewed

government commitment in implementing the reforms. Strengthening sector-level policy, regulatory

and institutional structures in agriculture, fisheries, energy and water utilities, will be key to improving

the efficiency and performance of different sectors, and thus further improving the prospects of economic

diversification. Such reforms can help deliver improvements in efficiency in order to maintain high

growth rates. Sierra Leone rightly aspires to become a Middle Income Country (MIC), but structural and

regulatory reforms would need to be undertaken for the country to become a MIC. During the CAS period

there have been some important developments in this regard, like the implementation of the concession

agreement for the container terminal at the port which is now being run by a private company. There has

also been progress in the liberalization of the telecommunications gateway, which could unlock the full

potential of this key growth sector. The Parliament has also passed new legislation to unbundle the

electricity sector. The law setting up an independent National Minerals Agency (NMA) has also been

passed, which would now act as a regulator in the mineral sector. Seeing through these and other reforms

should put the economy in a better position to deliver on the ambitious vision of the government.

Independent regulatory oversight is being strengthened in some sectors, which is key in ensuring that

costs and inefficiencies are not passed on to consumers.

16. Sierra Leone needs significant financial resources for meeting its development needs, and

must look for innovative ways for raising such resources, even before the mining revenues start

materializing. Over the next three to four years, the country would need significant resources for

rehabilitating and upgrading the infrastructure in the country, e.g. upgrading electricity distribution in the

capital of Freetown would require slightly less than $170m. Electricity generation for meeting the needs

of the urban population alone would require another $300m. Additionally, the energy and transportation

needs of the mining sector are substantial, requiring billions of dollars in investment. One way to respond

to this challenge would be to develop infrastructure for multiple users, e.g. shared transportation

arrangement for mineral resources and possibly for multiple uses e.g. ports, which can be used for mineral

exports and other potential economic activities. The government recognizes these challenges, and has

recently embarked on a process of holding a series of ‗Public – Private Sector Roundtables‘ for finding

solutions to some of the binding constraints in achieving the economic transformation.

17. The end-2012 national elections are critical in ensuring that the country continues on the

path to development and economic transformation. For the first time, Sierra Leone will be holding

four elections, simultaneously at the end of 2012 – Presidential, Parliamentary, Local Council

Chairpersons and Council representatives. The first-ever biometric voter registration process has been

completed and around 2.7 million registered voters are expected to be issued voter registration cards.

These cards should enhance the likelihood of fair and smooth elections. However, sporadic political

violence among supporters of the political parties in recent months has underscored the risks of possible

violence and voter intimidation during the elections, and all stakeholders have a responsibility in ensuring

6

violence-free elections. The political landscape is dominated by two political parties largely drawing

support along regional and ethnic lines. In recent months new legislation has confirmed the exact role of

the National Election Commission. An election basket fund of around $38m with contributions from the

government and development partners is being used to finance the elections.

18. The governance and anti-corruption agenda continues to experience serious challenges. On

the positive side, according to some of the international benchmarks, there have been some improvements

in the fight against corruption and the overall governance trajectory. In the Transparency International‘s

Corruption Perception Index (CPI), Sierra Leone has moved from a score of 2.2 in 2009 (global rank of

146) to 2.5 in 2011 (global rank of 134). In the latest CPI assessment, it ranks 26th among 48 African

countries. The 2011 Mo Ibrahim Index ranks Sierra Leone 30th out of 53 countries with a score of

48.2/100. Yet, there remains significant frustration within the population at the slow pace of institutional,

legislative and systemic improvements to tackle corruption. Recent setbacks with some high profile

prosecution cases reinforce the perceptions that some of the elite are not impacted. Although the asset and

income declaration system has undergone some improvements, a comprehensive Politically Exposed

Persons (PEP‘s) list still does not exist, as required by international law. The passage of the Anti Money

Laundering/Combatting the Financing of Terrorism Act was delayed and was only enacted in early 2012.

The need for transparency and accountability, as well as more effective tools and safeguards to fight

corruption is only likely to increase exponentially with the extractives boom, and improvements in

systems and enforcement capacity needs sustained action. The Government will need to put in place a

strong framework for public procurement to ensure value for money and give confidence to investors and

citizens alike. On the positive side, space continues to exist for civil society and non state actors to

openly engage on issues that are of public concern - the World Governance Indicators 2010 (Figure 1)

give Sierra Leone a percentile ranking of 41.7 for Voice and Accountability, which is better than the

average of 33 percentile ranking for SSA – this should be an important element in strengthening the

accountability agenda going forward.

Figure 1: Benchmarking Sierra Leone on Governance Indicators

19. The CAS period has seen renewed momentum in addressing public sector capacity and

performance challenges. Prior to the conflict, technical and administrative capacity was severely

depleted within government and outside, and the war further exacerbated this situation. Subsequent

government and development partner efforts have not systematically addressed the need for building a

public sector that is meeting present day needs of the country. During the CAS period, there has been a

renewed emphasis and a more coherent approach between key stakeholders to start addressing

systematically the issue of efficiency, capacity, and effectiveness of the public sector, and its ability to

7

attract and retain quality professionals. The Cabinet approved a ‗Multi-Year Pay Reform Strategy‘ in

2011, and a ‗Program for Improving Public Sector Productivity through Management and Pay Reforms‘

in 2012. These are important developments in taking forward the public sector reform agenda, but

implementation will be crucial and will require continued commitment at all levels of government and the

ability to address some difficult reforms.

20. The sub-region has enjoyed relative peace and stability during the CAS period, raising

hopes of enhanced regional cooperation6. Neighboring Guinea and Liberia have had recent elections,

and are also experiencing varying degrees of extractive sector booms. Sierra Leone enjoys peaceful

relations with its neighbors, and has been an active member of sub-regional groups such as the Economic

Community of West African States (ECOWAS) and the Mano River Union. Opportunities for regional

cooperation are enormous, and are only starting to be realized, for example through new power pool

agreements. Road connectivity with neighboring countries has also been upgraded. There is unexploited

potential for economic diversification and developing regional transportation infrastructure, i.e. railways

and ports, around the mining growth corridors among these neighboring countries.

III. PROGRESS TOWARDS CAS OUTCOMES AND PORTFOLIO PERFORMANCE

A. Progress against CAS Pillars: Human Development and Inclusive Growth

21. Progress against CAS objectives is satisfactory at this stage, with approximately 85 percent

of indicators achieved or on track to be achieved, and only 5 percent of indicators unlikely to be

achieved until the end of June 2013. Progress is equally promising for the two pillars of human

development and inclusive growth. Lack of data is an issue as 10 percent of the indicators do not have

updated progress values, especially for Pillar 2. This is due to weak sectoral monitoring and evaluation

(M&E) systems as identified by the « Managing for Development Results Cpacity Scan » (CAP Scan)

fielded in Oct 2010 and facilitated by the Bank. Constraints persist in project-related monitoring

arrangements and implementation. The achievement of CAS milestones lags behind, as slightly over 50

percent have been achieved, which could be attributed to a lack of alignment between indicators and

milestones7 during the design of the CAS. Of the cross-cutting indicators on gender and governance,

which are a sub-set of the overall set of indicators, more than 80 percent have been achieved or are on

track to be achieved, which is noteworthy. World Bank TA support to Statistics Sierra Leone (SSL) has

been targeted at specific areas, including in the analysis of the Integrated Household Living Conditions

Survey. Going forward, discussions would be carried out on providing more coordinated support for

SSL.

6 During the CAS period, Cote d’Ivoire and Mali have witnessed conflict, but the impact on Sierra Leone seems to

have been limited so far. 7 The milestones are to be reviewed at CAS mid-point, and are not included in the forward-looking Results Matrix

(Annex 1b).

8

Table1: Summary of achievements on CAS indicators and milestones (excluding AfDB)

INDICATORS – TOTAL 39 MILESTONES – TOTAL 38

PILLAR 1 Achieved On track Not on track No data Achieved Not achieved No data

Education 2 2 4

Health 4 2 1

Water 2 1 2 1

Social risk 2 2

Decentralization 2 3 1 5 2

PILLAR 2

Agriculture 1 4 1 3 1

Private sector 3 3 6

Energy 2 1 1 2 1

Transport 2 2 1 2 3

16 (41%) 17 (44%) 2 (5%) 4 (10%) 20 (53%) 16 (41%) 2(5%)

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

http://news.sl/drwebsite/publish/printer_200519577.shtml. 16

GAC-2 Companion Piece: Strengthening the World Bank‘s Engagement on Demand for Good Governance [hereinafter

GAC-2 DFGG], at 27. 17

See id. 18

See Joint Assistance Strategy for Sierra Leone (2010), at 1, 24-28. 19

See id. at 37. The JCAS notes civil society‘s critical role in drafting the Freedom of Information Bill, and the need to

publish development project information. See id. at 26. It also stresses improving service delivery and conducting a

political economy analysis of the DFGG environment. See id. at 37, 52.

37

3. In developing a country-specific DFGG strategy, it is important to consider the political economy and broader

environment for citizen-state interactions. The 2004 World Development Report identified three key aspects of the

accountability relationship between citizens, policy makers and service providers: citizen voice with respect to influence

over policy makers, citizen power with respect to influence over service providers, and the compact between policy

makers and service providers.20

4. There remains a need to better understand how Sierra Leone fares in promoting citizen voice, citizen power, and

in having an effective compact. There is also an ongoing need to map the context for DFGG, understand how powerful

groups promote or restrict citizens‘ efforts in this space, and assemble evidence showing how development partners can

facilitate the citizen-state accountability relationship.21

Based on available global governance data, Sierra Leone performs

relatively well in the areas of citizens‘ voice and empowerment, although the country has significant room for

improvement in government effectiveness, rule of law, and anti-corruption, all of which may undermine the viability of

relationships between citizens, policy makers, and service providers.22

A growing body of empirical data has also

suggested that the decentralization process in Sierra Leone has emboldened citizens‘ voice vis-à-vis local government

authorities, especially where communities are disconnected from transport, telecommunications, markets, or contact with

the state.23

Yet it is important to assess why Sierra Leone performs well in some areas such as citizen voice and

empowerment and not in others, as well as to consider how best to boost civil society‘s and government‘s capacity to

prompt and respond to, respectively, citizens‘ demands for improved governance.

5. Notably, from the supply-side, the Government of Sierra Leone has increasingly emphasized and created space for

DFGG, making the time ripe for strengthened development partner engagement in this space. In 2009, Government and

Non State Actors (NSA) agreed on a NSA Component in the Integrated Public Financial Management Project, thereby

laying the groundwork for NSAs and Civil Society to become informed and engage directly on PFM issues. This

supported the creation of the CSO-led Budget Advocacy network, and in turn provided a forum for civil society to

comment and engage in the budget debate process. The latest effort in this regard was the launch in May 2012 of the

country‘s first citizen-version of the public budget, drafted by a formative coalition of civil society organizations

interested in promoting public financial management. Among other significant opportunities, the Freedom of Information

Bill has been resubmitted to Parliament in May 2012, and Sierra Leone is currently undertaking the reconciliation process

under the Extractives Industry Transparency Initiative (EITI), with a validation deadline scheduled for December 2012.

The country is also preparing its PRS3, which provides another opportunity for strengthening the SA / DFGG agenda at

the policy / strategy level. Yet another issue to ponder over is how can Sierra Leone make quick and dramatic

improvements in human development, including meeting key MDGs, and does SA / DFGG offer an opportunity in this

regard.

20

See AFR Strategy, at 8-9. 21

See id. at 14. 22

See WBI Worldwide Governance Indicators, Sierra Leone (2010); Mo-Ibrahim Foundation Governance Indicators,

Sierra Leone (2010). 23

See The World Bank, Decentralization, Democracy, and Development: Recent Experience from Sierra Leone (Yongmei

Zhou ed. 2009), at 25.

38

6. Outside the portfolio of Bank financed projects, the Bank has also engaged with other DFGG initiatives in Sierra

Leone such as the capacity enhancement of youth organizations on Right to Information (RTI), the Global Youth Anti-

Corruption (GYAC) initiative, supporting the Parliamentary Network on the World Bank (PNoWB), the Contract Watch

initiative, among others.

7. Against this promising backdrop, in 2011 the Bank conducted an internal assessment of the Bank‘s current social

accountability engagement in Sierra Leone. The review analyzed the Bank‘s portfolio across a range of DFGG measures,

including: information-sharing, citizen consultation and participation, third-party monitoring by CSOs, and grievance

mechanisms.24

A broad outline of these measures follows:

Information-sharing: Citizens‘ and civil society‘s ability to demand better governance depends on their access to

actionable information. The effectiveness of DFGG requires disclosure of information, explanation of the

information, and dissemination of the information. Information and communications technology can facilitate

effective aggregation and dissemination of actionable information.

Consultation and participation: While information-sharing is a critical component of DFGG, citizens and civil

society need mechanisms through which to provide feedback to the state. Consultation and participation allow

citizens to influence public decisions and service delivery, although it remains challenging to identify which

mechanisms – whether citizen scorecards, community oversight committees, or otherwise – best channel this

―feedback‖ or its ―uptake‖ into Government decisions and policy making.

Third-party monitoring: DFGG also calls for the media and other civil society actors to monitor and oversee

government activities. Such monitoring can help detect and manage risks. These civil society actors aggregate

and disseminate relevant information to enable citizens to discuss government performance and opportunities for

strengthened action.

Grievance mechanisms: In some instances, citizen consultation/participation and third-party monitoring create

pressure, but government fails to respond in the desired manner. Effective grievance mechanisms channel

concerns and provide citizens a voice in development. They can mitigate risks and conflict before they become

serious or costly.25

8. The review revealed that the Bank is supporting some innovative work on DFGG, but the overall effort is largely

focused on project-level approaches to DFGG, with a focus on information-sharing and community

consultation/participation, but with limited grievance mechanisms, third-party monitoring, and sustainable policy uptake

mechanisms. More importantly, there is scope for tightening the link between use of SA / DFGG and development results.

The review recommended that:

During the preparation process, projects undertake better prior analysis of accountability constraints and the demand-

side measures to alleviate them; Projects better engage and avoid duplication with other accountability structures

that already exist in Sierra Leone – especially during implementation;

Relatedly, the Bank consider facilitating citizen participation and DFGG beyond a project‘s life cycle;

The Bank sharpen the coherence in its overall approach to DFGG in the Sierra Leone program, and engage with

government further on how DFGG can help accelerate achievement of development results.

The Bank gather stronger evidence to demonstrate the effectiveness of DFGG work, including mixed-methods

approaches that can help explain why certain DFGG interventions are effective (or ineffective) in a particular

context.26

IV. Towards a Country-Specific DFGG Strategy

9. Framed by the priorities and limitations outlined in the Africa Regional DFGG Strategy, as well as the findings

from the 2011 portfolio review, there is a need to develop a country-specific DFGG strategy for Sierra Leone. The Africa

24

See GAC-2 DFGG, at 36 (outlining these four categories). The review categories loosely tracked these four categories. 25

Notably, in order to be effectual and credible, grievance mechanisms must have a supply-side response from the

government and those who act on its behalf. 26

See GAC-2 DFGG, at 13.

39

DFGG Strategy recommends five areas of strategic influence for the region: (i) understanding the socio-political context

for DFGG; (ii) accountability for service delivery; (iii) enabling environment for DFGG; (iv) strengthening natural

resource management; and (v) supporting media in promoting good governance.27

10. The Sierra Leone DFGG strategy framework proposed here builds upon existing successes, focuses on select and

promising entry points for engagement, and leverages the Bank‘s comparative advantages as a convener, financier, and

knowledge institution to deliver development impact.28

In implementing a country-level DFGG strategy, the Bank should

engage in more internal dialogue and robust discussions with the government, civil society and other development

partners to ensure that its work complements and enhances the needs identified and efforts underway. In this regard, the

Bank will work to forge relevant partnerships. The Bank should also consider how to boost the capacity of civil society to

place demands on government, and of government to respond to those demands, encouraging partnerships between the

two where possible.

11. With these principles in mind, three potential key priority areas for DFGG work in Sierra Leone during the

remainder of the CAS period are: (i) promoting a strong policy and enabling environment for DFGG, (ii) reinforcing

accountability to improve health care delivery and health outcomes, and (iii) promoting the synergy and cross-learning on

DFGG issues across the country portfolio.

i. Promoting a strong policy and enabling environment for DFGG.

12. The Bank would play a stronger role in working with government and other stakeholders in promoting an

enabling environment for citizen engagement and accountability of service providers to citizens. This would help focus

the Bank efforts much more on using the ‗policy and planning space‘ to strengthen SA / DFGG as a way of promoting

transparency and governance in Sierra Leone. In supporting the broader enabling environment, the Bank would work to

identify and then address context-specific constraints to effective DFGG, such as lack of awareness of entitlements,

restricted social capital and group mobilization, and citizen concerns about the efficacy or impartiality of feedback or

grievance systems. Specifically, the Bank‘s would have different dimensions: (i) engaging with the PRS3 and sector

strategy / policy discussions in order to also ensure that SA / DFGG issues get sufficient attention in these documents; (ii)

working with stakeholders to create opportunities for using open information exchange and communication between

citizens, policy makers, and service providers in Sierra Leone. This could involve looking at ways to facilitate

implementation of the Right to Information Bill, once it is approved by Parliament and ratified into law, and using ICT

and mapping to provide the same quality information to both local level decision-makers and citizens (and thus addressing

the problem of potential ‗information asymmetry‘ in making planning decisions at the local level). It could also entail

strengthened engagement with and capacity-building within media sources; (iii) continue to strengthen the use of the

budget as an important tool for promoting accountability, e.g. through quality use of Citizens Budget and supporting the

government to continue disclosing revenues from the extractives sector; and (iv) make the Bank itself more accountable

by use of initiatives like External Implementation Status Report (EISR), which aim to complement the Bank‘s Access to

Information policy, and to get third party / beneficiary feedback on implementation of Bank-supported projects.

ii. Reinforcing Citizen Accountability to Improve Health Care Delivery and Health Outcomes.

13. Although Sierra Leone has made progress in promoting human development since the end of the civil war, the

country still lags far behind in achieving certain Millennium Development Goals (MDGs), particularly in the health

sector. The country remains near the bottom of the Human Development Index with very high maternal and under-five

mortality rates. As Sierra Leone undergoes a rapid economic transformation driven by the extractives sector, the socio-

political and economic imperative to ensure that there is faster progress on the MDGs is only likely to increase. The

government‘s bold Free Health Care Initiative (FHCI) aims to improve the country‘s health statistics, and health care

delivery more broadly. However, the government and civil society have observed gaps in monitoring and accountability

(improper use fees, absent nurses, missing drugs, etc.) that undermine service delivery. As this Annex has suggested, the

Bank needs to focus on select, promising points of engagement with DFGG, and the health sector poses one such

27

See id. at 14-16. 28

See AFR Strategy.

40

promising entry point. There are identified gaps in monitoring and accountability in the health sector, and citizens (who

are closest to the point of service delivery) may be best equipped to document these and press for change. Further, the

Government has indicated a keen interest in both advancing health outcomes (via the FHCI, among other efforts) and,

notably, in using DFGG to improve health service delivery. Hence, it is recommended that the Bank support the

Government and civil society in their endeavors by focusing its efforts around using DFGG to improve health care

delivery. This emphasis is consistent with the Africa Regional DFGG Strategy and the CAS, both of which emphasize the

importance of SA / DFGG for strengthening service delivery. Experience elsewhere has shown that parallel efforts to

strengthen the delivery systems (‗supply-side‘) and the accountability systems (‗demand-side‘) are likely to improve the

prospects of achieving more sustainable development impact. Yet, the true benefits of SA / DFGG in helping achieve

development results in the health sector in Sierra Leone must still be validated, and, hence, rigorous and mixed-methods

evaluation will be an important component of the Bank‘s activities in this space. The revised CAS Results Framework

captures the intended outcomes of this consolidated DFGG effort in the health sector in the country.

iii. Promoting Cross-learning and Synergy on DFGG across country portfolio.

14. As noted above, the review of ongoing of DFGG efforts in Bank-supported programs in Sierra Leone has

confirmed that SA / DFGG is being actively pursued in many projects in the portfolio. Going forward, the cross-learning

and synergy between these efforts would be promoted in a number of ways. Firstly, the following framework would be

used as a guide to help identify opportunities for DFGG to contribute to specific sector / project outcomes or address

binding constraints to good governance and enhanced service delivery in ongoing and new projects. Secondly, the Bank

will maintain the focus on high-impact DFGG initiatives and avoid undue proliferation of efforts and ensure optimal use

of limited government capacity. Thirdly, put greater attention on ‗closing the feedback loop‘ i.e. stronger grievance

redressal systems and helping ensure that citizens can use the ‗empowerment‘ provided through DFGG initiatives in

helping improve service delivery and accountability of providers. Next, continue and strengthen the use of established

tools to support DFGG in improving service delivery, such as surveys carried out for several years, including CLoPAS,

PETS and INPSS. And finally, consider opportunities to enhance synergies on a regional basis with other countries

confronting similar development challenges and opportunities for DFGG engagement in areas including increased access

to information, budget transparency, and extractives.

Strategic country-level approach to DFGG

15. The next opportunity to review the state of play with the overall DFGG effort of the Bank in Sierra Leone would

be during the preparation of the next CAS. At that time, the Bank should identify key sectors for future Bank DFGG

Identify binding constraints in a particular sector or development area.

Consider whether empowering citizens/civil society may help alleviate that binding constraint. Is there evidence that

citizens‘ involvement makes a difference? Do citizens/civil society have the capacity and willingness to work in this space,

and, if not, is support available to assist them in so doing? Does government have the capacity and willingness to respond,

and, if not, is support available to assist it in so doing?

If empowering citizens/civil society may make a difference, consider which DFGG measures in particular are best targeted

to the local context and to the particular need. Are grievances or discord foreseeable? Are there existing accountability

structures that can be bolstered?

41

engagement in order to enhance project performance and/or minimize risks, using a strategic approach such as the one

outlined above. In addition, the Bank should execute further adjustments and refinements to the country DFGG strategy.

Developing an integrated approach to DFGG in the health sector

DFGG

Measure

Binding Constraint and Potential DFGG Solution

Promoting

information-

sharing and

community

consultation

and

participation

Since the government of Sierra Leone passed a free health care initiative (FHCI) in 2010,

civil society organizations (CSOs) have scrutinized the accountability of service delivery

providers and pointed to gaps in monitoring that lead, inter alia, to leakage of drugs,

improper fees for health services, and missing health staff.29

Government and CSOs have pointed to DFGG as a potentially powerful tool to empower

citizens to aggregate information about gaps in services and monitor and participate in

improving health service delivery. The government Decentralization Secretariat, with

World Bank DSDP financing, is implementing two DFGG interventions around health

clinics in four districts, beginning in May 2012:

1. Seeking to improve accountability in health delivery by convening discussions in

communities around a clinic scorecard and drafting a compact between

communities and clinic staff wherein both commit to improving health delivery.

2. Linking bottom-up feedback from users with top-down, formal state recognition

through a non-financial award to the top improving clinics and their staff.

The interventions will be implemented over approximately 8 months using a randomized-

controlled trial. Qualitative research by the World Bank Justice for the Poor program

will also seek to understand why and how these measures work.

Grievance

mechanisms

Government and CSOs have noted certain accountability gaps, such as drug leakage or

poor management, that reflect breakdowns in state structures. Information-sharing or

community consultation/ participation may not suffice in these cases; to obtain a remedy,

communities may need help navigating administrative or other accountability channels.

Legal empowerment practitioners are exploring their role in addressing such systemic

breakdowns that create problems felt by an entire community. Small-scale pilot activities

are taking place in two districts to investigate role of legal empowerment (paralegals) and

DFGG (community-based health oversight committees) in improving paths for citizen

grievances around health delivery. The findings will inform the broader portfolio of

Bank-financed approaches to accountability for service delivery in Sierra Leone.

29

See Amnesty International, At a Crossroads: Sierra Leone‘s Free Health Care Policy (2011).

42

Annex 4 – Progress on Millennium Development Goals

Millennium Development Goals

1990 1995 2000 2005 2010

Goal 1: Eradicate extreme poverty and hunger

Employment to population ratio, 15+, total (%) 64 64 63 65 65

Employment to population ratio, ages 15-24, total (%) 39 38 39 42 42

GDP per person employed (constant 1990 PPP $) .. .. .. .. ..

Income share held by lowest 20% .. .. .. 6 ..

Malnutrition prevalence, weight for age (% of children under 5) 25 .. 25 28 21

Poverty gap at $1.25 a day (PPP) (%) 45 .. .. 20 ..

Poverty headcount ratio at $1.25 a day (PPP) (% of population) 63 .. .. 53 ..

Vulnerable employment, total (% of total employment) .. .. .. 92 ..

Goal 2: Achieve universal primary education

Literacy rate, youth female (% of females ages 15-24) .. .. .. 37 48

Literacy rate, youth male (% of males ages 15-24) .. .. .. 60 68

Persistence to last grade of primary, total (% of cohort) .. .. .. .. ..

Primary completion rate, total (% of relevant age group) .. .. .. .. 74

Total enrollment, primary (% net) .. .. .. .. ..

Goal 3: Promote gender equality and empower women

Proportion of seats held by women in national parliaments (%) .. 6 9 15 13

Ratio of female to male primary enrollment (%) 66 .. 67 .. 93

Ratio of female to male secondary enrollment (%) 49 .. 68 .. ..

Ratio of female to male tertiary enrollment (%) .. .. 78 .. ..

Share of women employed in the nonagricultural sector (% of total nonagricultural

employment) .. .. .. 23.2 ..

Goal 4: Reduce child mortality

Immunization, measles (% of children ages 12-23 months) .. .. 37 71 82

Mortality rate, infant (per 1,000 live births) 162 159 142 128 114

Mortality rate, under-5 (per 1,000 live births) 276 271 233 202 174

Goal 5: Improve maternal health

43

Adolescent fertility rate (births per 1,000 women ages 15-19) .. 151 146 144 120

Births attended by skilled health staff (% of total) .. .. 42 43 42

Contraceptive prevalence (% of women ages 15-49) 3 .. 4 5 8

Maternal mortality ratio (modeled estimate, per 100,000 live births) 1,300 1,400 1,300 1,100 970

Pregnant women receiving prenatal care (%) .. .. 68 81 87

Unmet need for contraception (% of married women ages 15-49) .. .. .. .. 28

Goal 6: Combat HIV/AIDS, malaria, and other diseases

Children with fever receiving antimalarial drugs (% of children under age 5 with fever) .. .. 61 52 30

Condom use, population ages 15-24, female (% of females ages 15-24) .. .. .. .. 5

Condom use, population ages 15-24, male (% of males ages 15-24) .. .. .. .. 18

Incidence of tuberculosis (per 100,000 people) 207 279 377 509 682

Prevalence of HIV, female (% ages 15-24) .. .. .. .. 1.5

Prevalence of HIV, male (% ages 15-24) .. .. .. .. 0.6

Prevalence of HIV, total (% of population ages 15-49) 0.1 0.2 0.9 1.5 1.6

Tuberculosis case detection rate (%, all forms) 8 18 24 26 32

Goal 7: Ensure environmental sustainability

CO2 emissions (kg per PPP $ of GDP) 0 0 0 0 0

CO2 emissions (metric tons per capita) 0 0 0 0 0

Forest area (% of land area) 43.5 .. 40.8 39.4 38.1

Improved sanitation facilities (% of population with access) 11 11 11 12 13

Improved water source (% of population with access) 38 42 46 51 55

Marine protected areas (% of territorial waters) 0 0 0 0 0

Net ODA received per capita (current US$) 15 54 44 66 81

Goal 8: Develop a global partnership for development

Debt service (PPG and IMF only, % of exports, excluding workers' remittances) 10 62 46 9 4

Internet users (per 100 people) 0.0 0.0 0.1 0.2 0.3

Mobile cellular subscriptions (per 100 people) 0 0 0 14 34

Telephone lines (per 100 people) 0 0 0 1 0

Fertility rate, total (births per woman) 6 6 6 5 5

Other

GNI per capita, Atlas method (current US$) 200 200 150 230 340

44

GNI, Atlas method (current US$) (billions) 0.8 0.8 0.6 1.2 2.0

Gross capital formation (% of GDP) 10.0 5.6 6.9 17.0 15.8

Life expectancy at birth, total (years) 39 37 40 44 47

Literacy rate, adult total (% of people ages 15 and above) .. .. .. 35 41

Population, total (billions) 0.0 0.0 0.0 0.0 0.0

Trade (% of GDP) 46.2 45.1 57.4 60.1 46.6

Source: World Development Indicators

45

Annex 5: Planned Lending and Actual Deliveries FY10 – FY13

FY CAS Plans Planned

amount (US$m)

Current Status Approval

Date

Approved Amount

(US$m)

FY10 GRG3 Development policy lending

Decentralized Service Delivery Program I

Mining TA

Financial Sector TA: Capacity Building

and Regulatory Reform

Youth Employment and Skills (including

IDA Crisis Response Window)

GRG3 supplemental financing (IDA Crisis

Response Window)

Regional

Fisheries

10

20

4

2

20

4

5

Closed

Active

Active

Active

Active

Active

Active

11/24/2009

10/15/2009

12/3/2009

4/7/2011

6/30/2010

6/11/2010

6/28/2011

10

20

4

4

20

7

8 (national IDA) + 20m

in regional IDA & TF

65

FY11 DPO1 – Development Policy Operation

Infrastructure I (Energy/Transport)

Mining Additional Financing

Rural & Private Sector Development

Regional

West Africa Communications

West Africa Agriculture

7

15

4

Closed ??

-

??

??

10

-

4 (IDA) + 4 (TF)

20

25

22 (IDA + TF)

46

26

FY12 DPO2 – Development Policy Operation

Decentralized Service Delivery Program II

Pay & Performance Project

Regional

Regional Mining Sector TA Initiative

(incl. EITI++)

Regional Agriculture

7

13

2

4

-

Active

-

-

12/20/2011

-

24

26 (IDA) + 5 (TF)

17

-

26

FY13 DPO3 Development Policy Operation

Infrastructure II (TBD)

Energy Access Program (Phase 1, MDTF-

funded)

Energy Access Program (Phase II, IDA

funded)

7

15

20

25

-

-

Under Preparation

Under Preparation

-

-

-

67

Total FY10 -13 184

47

Annex 6 - Sierra Leone - Active Trust Funds

( Figures in thousands of USD )

Trust Fund # Trust Fund Name Net Grant

Amount

Funds Disb.

to Date

Avail.

Balance

Progra

m

Source

Grant

Donor Name Grant Sign

Date

End Disb.

Date Exec. By Closing

Date

TF010099

Sierra Leone - Safety Net

Support 300.00 170.53 86.31 RSR 9/30/2012

Multiple

Donors 7/1/2011 1/30/2013 Bank

TF010224

Sierra Leone Reproductive

and Child Health Project

Phase II (RCHP2) (FY12 SPN

Budget) 112.00 84.76 27.24 ACGF 6/29/2012

Multiple

Donors 7/14/2011 10/29/2012 Bank

TF010349

Sierra Leone Reproductive

and Child Health Project

Phase II (RCHP2) (FY12

Supervision Staff Time) 50.00 49.99 0.01 ACGF 6/29/2012

Multiple

Donors 8/1/2011 10/29/2012 Bank

TF010655

Additional Financing for the

West Africa Regional

Fisheries Program (Phase I) -

Sierra Leone Project 8,000.00 0.00 8,000.00 ACGF 10/30/2013

Multiple

Donors 10/17/2011 4/30/2014 Recipient

TF010710

Technical Assistance for

Tariff Analysis and Integrated

Resource Planning Project 750.00 0.00 750.00 SLIN 5/15/2013

Multiple

Donors 11/15/2011 11/15/2013 Recipient

TF010801

Sierra Leone Higher and

Tertiary Education Sector

Note 100.56 62.70 37.31 NPEF 10/31/2012

Norway -

Ministry of

Foreign

Affairs 10/5/2011 2/28/2013 Bank

TF011013

Evaluating Social

Accountability and Legal

Empowerment for Health

Services in Nigeria and Sierra

Leone 250.00 15.49 80.61

TFESS

D 8/1/2014

Multiple

Donors 10/28/2011 12/1/2014 Bank

TF011070 Sierra Leone - Updating the

193.00 44.57 111.76 FTIE 8/31/2012 Multiple

11/7/2011 12/31/2012 Bank

48

Education Sector Plan Donors

TF011615

Sierra Leone - Pro-growth

pro-poor Transport Sector

Strategy (PGPTS) 113.00 0.00 0.00 SSATP 10/31/2012

Multiple

Donors 1/18/2012 2/28/2013 Bank

TF011786

Sierra Leone Extractive

Industries Technical

Assistance Project 1,682.20 116.52 1,568.51

AFRS

D 6/30/2016

United

Kingdom -

Department

for

International

Development

(DFID) 2/14/2012 12/30/2016 Recipient

TF012220

Sierra Leone: Financial

Assessments for the Districts

of Tonkolili, Koinadugu, and

Bombali 75.00 0.00 58.10 PPIAF 12/31/2012

Multiple

Donors 4/12/2012 4/30/2013 Bank

TF012393

Beyond Broadband Access:

Opportunities in Innovation

and Content Development

using ICT for Improving Basic

Services 250.00 0.00 250.00 INFOD 6/30/2013

Korea-

Ministry of

Finance &

Economy 4/2/2012 10/30/2013 Bank

TF050485 HIPC - IDA - Sierra Leone 229,859.98 31,008.08 0.00 HIPC 12/31/2030

IBRD 1818 H

Street, NW 7/9/2008 12/31/2030 Recipient

TF050687 HIPC - AFDB - Sierra Leone 57,094.93 57,094.93 116.05 HIPC 12/31/2030

Multiple

Donors 7/9/2008 12/31/2030 Recipient

TF056937

Sierra Leone Bum Buna

Hydro 0.00 0.00 0.00

CARB

ON 6/30/2014

Netherlands -

Ministry of

Infrastructure

and the

Environment 4/11/2011 12/30/2014 Recipient

TF091155

Chyao-Africa - Support to

Education of War affected

Children in the Northern

Province of Sierra Leone 469.92 469.92 0.00

ICHYA

O 6/30/2012

Italy - Ministry

of Foreign

Affairs 3/4/2008 12/31/2012 Recipient

TF092755

Sierra Leone Education for all

Fast Track Catalytic Giant 13,900.00 11,397.30 2,502.70

EFAFT

I 9/30/2012

Multiple

Donors 9/15/2008 3/31/2013 Recipient

49

TF093688

Strengthening Capacity of

Directorate Office of Diaspora

Affairs for developing

Capacity Development in

Public Sector 453.26 278.85 174.41 IDF 2/28/2012

IBRD 1818 H

Street, NW 3/25/2009 8/31/2012 Recipient

TF093966

DRF Sierra Leone -

Preparation 950.00 0.00 950.00 DRF 12/31/2011

IBRD 1818 H

Street, NW 4/24/2009 6/30/2012 Recipient

TF095389

Sierra Leone Integrated Public

Financial Management Project 12,882.47 7,745.81 1,017.23

AFRQ

K 7/31/2013

Multiple

Donors 10/19/2009 1/31/2014 Recipient

TF095497

SL-Empowering Vulnerable

Youth for Self-Reliance in

Kono District and Western

Area 17.76 17.45 0.32

ICHYA

O 6/30/2012

Italy - Ministry

of Foreign

Affairs 11/1/2009 10/30/2012 Bank

TF095498

SL-Empowering Vulnerable

Youth for Self-Reliance in

Kono District and Western

Area 382.24 141.89 240.34

ICHYA

O 6/30/2012

Italy - Ministry

of Foreign

Affairs 11/27/2009 12/31/2012 Recipient

TF095748

Sierra Leone Integrated Public

Financial Management

Reform Program (IPFMRP) 1,038.93 599.00 439.93

AFRQ

K 7/31/2013

Multiple

Donors 11/20/2009 11/30/2013 Bank

TF096085

IDF : Institutional Capacity

Building for Combating

Corruption in Sierra Leone 499.83 191.67 308.16 IDF 3/16/2013

IBRD 1818 H

Street, NW 3/16/2010 9/16/2013 Recipient

TF096537

Sierra Leone Biodiversity

Conservation Project 5,000.00 1,066.08 3,933.92 GEFIA 12/1/2014

Multiple

Donors 5/27/2010 6/1/2015 Recipient

TF096812

Financing of the 2nd Phase of

the Reproductive and Child

Health Project in Sierra Leone 20,000.00 11,265.40 8,734.60 ACGF 10/31/2013

Multiple

Donors 8/12/2010 4/30/2014 Recipient

TF097505

W1 - Sierra Leone Good

Governance Initiative -

Integrating Governance

Principles into New Joint

Country Assistance Str ategy

(JAS) for FY10-13 1,400.00 397.80 67.24 GPF 4/30/2013

Multiple

Donors 7/1/2010 8/31/2013 Bank

50

TF097566

Round 1: Sierra Leone Rapid

Response Growth Poles:

Community-Based Livelihood

and Food Support - Bank

Supervision 171.00 143.39 27.61 JSDF 12/1/2014

Japan -

Ministry of

Finance 12/1/2010 4/1/2015 Bank

TF097914

Round 1: Sierra Leone - Rapid

Response Growth Poles:

Community-Based Livelihood

and Food Support Program 2,813.32 917.03 1,896.28 JSDF 12/1/2014

Japan -

Ministry of

Finance 12/1/2010 6/1/2015 Recipient

TF097943

Round 28: Sierra Leone

Artisinal Mining Community

Development and Sustainable

Livelihoods (Bank Executed) 137.50 77.03 60.47 JSDF 9/14/2012

Japan -

Ministry of

Finance 8/26/2010 1/14/2013 Bank

TF098212

Sierra Leone - EFA FTI

Catalytic Fund Supervision

Grant 230.46 166.60 63.86

EFAFT

I 9/30/2012

Multiple

Donors 10/28/2010 1/31/2013 Bank

TF098734

Sierra Leone HRBF K&L

Grant 124.70 119.90 1.06 HRBF 12/31/2011 Donors 1/14/2011 4/30/2012 Bank

TF098957

Wetlands Conservation

Project 1,800.00 300.00 1,500.00 GEFIA 6/30/2015 Donors 6/1/2011 12/31/2015 Recipient

TF099032

Sierra Leone Infrastructure

Development Fund: Bank

Staff and Consultant Costs for

Program Management and TF

Administration 38.95 34.80 4.15 SLIN 12/31/2015

Multiple

Donors 2/7/2011 4/30/2016 Bank

TF099111

Round 28: Sierra Leone

Artisinal Mining Community

Development and Sustainable

Livelihoods 2,750.09 387.79 2,362.30 JSDF 7/28/2015

Japan -

Ministry of

Finance 7/28/2011 1/28/2016 Recipient

TF099118

Sierra Leone: #10067

Strengthening Internal Audit

at the Bank of Sierra Leone 115.70 69.86 15.90 FIRST 9/1/2012

Multiple

Donors 2/22/2011 1/1/2013 Bank

51

TF099425

AFTEG- DFID Multi-Donor

Trust Fund for Sierra Leone

Infrastructure Development

Fund: Energy/Infrastructure

Specialist (Based in Sierra

Leone) 400.00 309.81 90.19 SLIN 12/31/2015

Multiple

Donors 2/10/2011 4/30/2016 Bank

TF099510

Sierra Leone Project under the

First Phase of the West Africa

Agricultural Productivity

Program ( WAAPP) 10,000.00 0.00 10,000.00 PHRD 6/30/2016

Japan -

Ministry of

Finance 6/1/2011 12/31/2016 Recipient

TF099536

Sierra Leone: Supervision of

Grant 50.00 46.39 3.61 ETAF 8/30/2012 Donors 4/6/2011 12/30/2012 Bank

TF099537

Sierra Leone Extractive

Industries Technical Advisory

Facility Project 750.00 200.00 550.00 ETAF 6/30/2012

Multiple

Donors 7/6/2011 12/30/2012 Recipient

TF099629

Sierra Leone - Pro-growth

Pro-poor Transport Sector

Strategy (PGPTS) 187.53 32.69 0.00 SSATP 3/31/2013

Islamic

Development

Bank (IDB) 4/27/2011 4/30/2013 Bank

TF099676

AFTEG-MDTF for Sierra

Leone Infrastructure Dvpt

Fund: Funds for Identification

and Preparation of the First

Project Su pported by the

Fund 250.00 157.23 48.90 SLIN 12/31/2015

Multiple

Donors 5/2/2011 4/30/2016 Bank

Total 376,925.64 125,937.47 46,530.87

52

Annex 7 - Summary of Non-lending Services - Sierra Leone

Product

Completion

FY

Cost

(US$000) Audiencea Objective

b

Recent completions

Public Expenditure Review FY11 304 Government, donors, Bank Knowledge generation, problem-solving

Public Expenditure Review for Water and Sanitation FY12 Government, donors, Bank Knowledge generation, problem-solving

Underway

TA & Policy Note: Revenue Administration FY12 50 Government, Bank Knowledge generation, problem-solving

TA & Policy Note: Road Map to Prepare for Petroleum FY12 45 Government, Bank Knowledge generation, problem-solving

Social Protection Assessment FY13 154 Government, Donor, Bank and Knowledge generation, public debate

public dissemination

Higher and Tertiary Education FY13 120 Government, donors, Bank Knowledge generation, problem-solving

Good Governance Initiative FY13 1400 Government, Bank and Knowledge generation, public debate

public dissemination

Constraints to Service Delivery FY13 100 Government, Bank and Knowledge generation, public debate

Transport Strategy Update FY13 240 Government, Bank Knowledge generation, public debate

Planned

Diagnostic Trade Integration Study Update FY13 235 Government, donors, Bank, and Knowledge generation, problem-solving, and

public dissemination public debate

TA & Policy Note: Public Investment Management FY13 60 Government, Bank Knowledge generation, problem-solving.

TA & Policy Note: Poverty Profile, 2011 FY13 60 Government, donors, Bank and Knowledge generation, public debate

53

public dissemination

Education Sector Plan Update FY13 443

Government, donors, Bank and

public dissemination Knowledge generation, public debate

Improve Governance through ICT FY13 250

Government, donors, Bank and

public dissemination Knowledge generation, public debate

Education Sector Plan Development FY13 250

Government, donors, Bank and

public dissemination Knowledge generation, public debate

54

Annex 8 - Selected Indicators* of Bank Portfolio Performance and Management

As Of Date

5/10/2012

Indicator 2009 2010 2011 2012

Portfolio Assessment

Number of Projects Under Implementation a 8 9 10 12

Average Implementation Period (years) b 4.2 2.4 2.4 2.9

Percent of Problem Projects by Number a, c

50.0 0.0 0.0 0.0

Percent of Problem Projects by Amount a, c

60.4 0.0 0.0 0.0

Percent of Projects at Risk by Number a, d

50.0 22.2 10.0 0.0

Percent of Projects at Risk by Amount a, d

60.4 25.6 11.6 0.0

Disbursement Ratio (%) e 20.9 34.4 44.0 22.5

Portfolio Management

CPPR during the year (yes/no)

Supervision Resources (total US$)

Average Supervision (US$/project)

Memorandum Item Since FY 80 Last Five FYs

Proj Eval by OED by Number 30 4

Proj Eval by OED by Amt (US$ millions) 617.0 69.7

% of OED Projects Rated U or HU by Number 43.3 25.0

% of OED Projects Rated U or HU by Amt 40.0 24.9

a. As shown in the Annual Report on Portfolio Performance (except for current FY).

b. Average age of projects in the Bank's country portfolio.

c. Percent of projects rated U or HU on development objectives (DO) and/or implementation progress (IP).

d. As defined under the Portfolio Improvement Program.

e. Ratio of disbursements during the year to the undisbursed balance of the Bank's portfolio at the

beginning of the year: Investment projects only.

* All indicators are for projects active in the Portfolio, with the exception of Disbursement Ratio,

which includes all active projects as well as projects which exited during the fiscal year.

55

Annex 9 - IDA Program Summary

5/10/2012

Proposed IDA Base-Case Lending Program a

Fiscal

year Proj ID US$(M)

Strategic

Rewards b

(H/M/L)

Implementation

b Risks

(H/M/L)

2012

SL-Public

Sector Pay &

Performance

(FY12)

17.0 H

M

Result 17.0

2013

Sierra

Leone:Energy

Access Project -

IDA

25.0 H

M

Result 25.0

Overall Result 42.0

56

Annex 10 - Sierra Leone Key Economic & Program Indicators - Changes from Last CAS

Forecast in Last CAS Actual Current CAS Forecast

Economy (CY) 2009 2010 2011 2012 2010 2011 2009 2010 2011 2012

Growth rates (%)

GDP 4.0 4.7 5.5 6.0 5.3 6.0 3.2 5.3 6.0 32.5

Exports (US$)

33.8 2.3 -1.0 33.8 2.3 348.4

Imports (US$)

60.7 105.3 -2.6 60.7 105.3 -9.3

Inflation (%) 1 9.5 8.8 7.5 6.5 17.8 18.5 9.2 17.8 18.5 11.5

National accounts (%

GDP)

Current account

balance -9.4 -8.7 -7.5 -7.2 -19.4 -48.2 -6.5 -19.4 -48.2 -13.6

Gross investment

Public finance (% GDP)

Fiscal balance -4.4 -4.2 -5.0 -4.4 -5.2 -4.6 -2.5 -5.2 -4.6 -1.5

Foreign financing

1.6 2.4 1.9 1.6 2.4 2.3 a/

57

International reserves

2.1 2.4 4.1 2.1 2.4 2.6

(as months of imports)

Program (Bank’s FY) FY__a FY__

b FY__

b FY__

b FY__

c FY__

c FY__

d FY__

b FY__

b FY__

b

Lending ($ million)

Gross disbursements

($ million)

1 Period average.

a/ Percent of non-iron ore GDP. The fiscal balance on the same basis would be -1.9

percent.

58

Annex 11 - IFC Investment Operations for Sierra Leone

2009 2010 2011 2012*

Original Commitments (US$m)

IFC and Participants

7.16 1.05

2.85

IFC's Own Accounts

only

7.16 1.05

2.85

Original Commitments by Sector (%)- IFC Accounts

only

FINANCE &

INSURANCE

100 100

PLASTICS &

RUBBER

100

Total

100 100 0 100

Original Commitments by Investment Instrument (%) - IFC Accounts only

Guarantee

100 100

Loan

100

Total

100 100 0 100

* Data as of May 01,2012

59

Annex 12 – IFC‟s Committed and Oustanding Portfolio

Committed Disbursed Outstanding

FY Approval Company Loan Equity

**Quasi

Equity

*GT/

RM

Partici

pant Loan Equity

**Quasi

Equity

*GT/R

M

Partici

pant

2012 Vitafoam 2.85 0 0 0 0 0 0 0 0 0

Total Portfolio: 2.85 0 0 0 0 0 0 0 0 0

* Denotes Guarantee and Risk Management Products.

** Quasi Equity includes both loan and equity types.

60

Closed Projects 43

IBRD/IDA *

Total Disbursed (Active) 116.99

of w hich has been repaid 0.00

Total Disbursed (Closed) 331.74

of w hich has been repaid 32.03

Total Disbursed (Active + Closed) 448.73

of w hich has been repaid 32.03

Total Undisbursed (Active) 96.76

Total Undisbursed (Closed) 0.00

Total Undisbursed (Active + Closed) 96.76

Active Projects

Project ID Project NameDevelopment

Objectives

Implementation

ProgressFiscal Year IBRD IDA GRANT Cancel. Undisb. Orig. Frm Rev'd

P121514 Financial Sector Support TA ProjectS S 2011 4 3.561594 0.2923077

P086801 SL-Bumbuna Env. and Social SIL (FY05)MS MS 2005 22 7.522187 -2.628939 -2.62894

P113757 SL-Decentr. Serv. Del. Program (FY10)S S 2010 20 0.348689 0.2286256

P094307 SL-GEF Biodiversity Conservation ProjectMS MS 2010 5 3.933918 2.3089179

P115836 SL-GEF Wetlands Conservation (FY11)S MS 2011 1.8 1.5

P078389 SL-IDP Transp (FY06) S S 2006 55 13.51465 -0.606357 9.380485

P099357 SL-Mineral Sector Technical AssistanceS S 2010 8 5.339579 0.5183787

P108069 SL-Public Financial Management TAL (FY09S S 2009 4 2.674543 1.5982537

P096105 SL-Rural Dev & Priv Sec Dev SILS S 2007 50 23.73583 2.554173 2.444173

P121052 SL-Youth Employment Support (FY10)S S 2010 20 14.27326 1.6607959

P119355 SL:Decentralized Service Delivery Prog 2# # 2012 26 25.79198

P121056 SL:GRGC-3 Suppl.Credit (Crisis Window)# # 2010 7

P122065

West Africa Agric. Prod.

Program (WAAPP-1C) S 2012 83.8

P106063

3A-West Africa Fisheries

Phase 1 MS 2010 97.3

P108941

3A-West Africa Fisheries

GEF (FISH) MS 2010 10

P116273

31: West Africa Reg.

Ccomm Infrast. Prog. S 2011 56.6

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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This map was produced by the Map Design Unit of The World Bank. The boundaries, colors, denominations and any other informationshown on this map do not imply, on the part of The World BankGroup, any judgment on the legal status of any territory, or anyendorsement or acceptance of such boundaries.

0 20 40

0 20 40 50 Miles

60 Kilometers

IBRD 33478

NOVEMBER 2004

S IERRA LEONESELECTED CITIES AND TOWNS

DISTRICT CAPITALS

NATIONAL CAPITAL

RIVERS

MAIN ROADS

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