report no. 59772-lr international development association international finance ... · pdf...

Document of The World Bank

FOR OFFICIAL USE ONLY

Report No. 59772-LR

INTERNATIONAL DEVELOPMENT ASSOCIATION

INTERNATIONAL FINANCE CORPORATION

AND

MULTILATERAL INVESTMENT GUARANTEE AGENCY

COUNTRY ASSISTANCE STRATEGY PROGRESS REPORT

FOR

THE REPUBLIC OF LIBERIA

FOR THE PERIOD FY09-FY12

June 2, 2011

World Bank West Africa Country Department 1

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 LIBERIA – FISCAL YEAR

July 1 - June 30

CURRENCY EQUIVALENTS (as of May 31, 2011)

Currency Unit = Liberian Dollar (LR$)

US$1.00 = 73.00 LR$

WEIGHTS AND MEASURES

Metric System

ACRONYMS AND ABBREVIATIONS

AfDB African Development Bank ACE Africa Coast to Europe ADF African Development Fund AFREA African Renewable Energy Access Grant Program CAS Country Assistance Strategy CSA Civil Service Agency DFID Department for International Development EFCRP Emergency Food Crisis Response Program EGIRP Economic Governance and Institutional Reform Project EITI Extractive Industries Transparency Initiative EI-TAF Extractive Industries Technical Advisory Facility EMUS Emergency Monrovia Urban Sanitation Project EPA Environment Protection Agency EPAG Economic Empowerment of Adolescent Girls EU European Union FDA Forest Development Authority FDI Foreign Direct Investment FIAS Foreign Investment Advisory Service FY Fiscal Year GAC General Auditing Commission GBOBA Global Partnership on Output-Based Aid GEF Global Environment Fund GOL Government of Liberia GDP Gross Domestic Product HIPC Highly Indebted Poor Countries HRMIS Human Resources Management Information System IFC International Finance Corporation IFMIS Integrated Financial Management Information System IMF International Monetary Fund

ITAS Integrated Tax Administration System LACE Liberia Agency for Community Empowerment LEC Liberia Electricity Corporation LESEP Liberia Electricity Sector Enhancement Project LIBRAMP Liberia Road Asset Management Project LIPA Liberia Institute of Public Administration LRDC Liberia Reconstruction and Development Committee LRTF Liberia Reconstruction and Development Trust Fund MDG Millennium Development Goals MDTF Multi-donor Trust Fund MHI Manitoba Hydro International Ltd MOE Ministry of Education MOF Ministry of Finance MOP Ministry of Planning and Economic Affairs NGO Non-governmental Organization NPA National Port Authority OPRC Output and Performance Based Road Contracting PEFA Public Expenditure Financial Accountability PFM Public Financial Management PPIAF Public-Private Infrastructure Advisory Facility PRS Poverty Reduction Strategy SES Senior Executive Service RREA Rural and Renewable Energy Agency SME Small and Medium Enterprises TFLIB Trust Fund for Liberia UNMIL United Nations Mission in Liberia URIRP Urban and Rural Infrastructure Rehabilitation Project UNDP United Nations Development Program WAPP West Africa Power Pool WB World Bank

WORLD BANK

Vice President: Obiageli K. Ezekwesili

Country Director: Ishac Diwan

Country Manager: Ohene Owusu Nyanin

Task Team Leader (s): Renée Desclaux and Coleen R. Littlejohn

Task Team Members Sergiy Kulyk, Errol Graham, Jariya Hoffman, Raymond Muhula, Anders Jensen, Serena Cavicchi

INTERNATIONAL FINANCE CORPORATION

Vice President: Thierry Tanoh

Country Director: Yolande Duhem

Resident Representative : Jumoke Jagun-Dokunmu

Strategy Unit: Frank Douamba

Core CAS Team: Maria Miller, Kobina Daniel

MULTILATERAL INVESTMENT GUARANTEE AGENCY

Vice President and Corporate Secretary: Jorge Familiar Calderón

Executive Vice President: Izumi Kobayashi

Chief Operations Officer: James Bond

Finance and Risk Management: Thomas Hum, Conor Healy

ACKNOWLEDGEMENTS

The World Bank Group greatly appreciates the close and fruitful collaboration with the Government of Liberia in the preparation of the Country Assistance Strategy (CAS) and of this Progress Report (CASPR). This CASPR was prepared by members of the World Bank Group’s Liberia Country Team, including Ohene Owusu Nyanin, Sergiy Kulyk, Errol George Graham, Jariya Hoffman, Gylfi Pallson, Giulio de Thomaso, Smile Kwawukume, Raymond Muhula, Giuseppe Zampaglione, Emmanuel A. James, Ventura Bengoechea, Oliver Braedt, Roberto Panzardi, Waafas Ofosu-Amaah, Waqar Haider, Boutheina Guermazi, Keiko Inoue, Ekaterina Mikhaylova, Ismaila Ceesay, Deo Ndikumana, Yi-Kyoung Lee, Nyaneba Nkrumah, Christopher Jackson, Frank Armand Douamba, Jumoke Jagun-Dokunmu, Maria Miller, Kobina Daniel, Anders Jensen, Serena Cavicchi, Conor Healy and Deryck Brown, under the overall leadership of Ishac Diwan.

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 .................... 4

A. Progress on CAS Strategic Theme 1: Rebuilding of Core State Functions and Institutions.. ........ 4

B. Progress on CAS Strategic Theme 2: Rehabilitating Infrastructure to jump-start growth .............. 5

C. Progress on CAS Strategic Theme 3: Facilitating Pro-poor Growth .............................................. 6

D. Portfolio Performance ...................................................................................................................... 7

E. Cross Cutting Issues ......................................................................................................................... 8

IV. ADJUSTMENTS TO THE CAS AND MOVING FORWARD ..................................................... 9

V. KEY CONSTRAINTS AND RISKS ......................................................................................... 11

Annex 1a: CAS Results Matrix – Progress to date .................................................................................... 14 Annex 1b: CAS Results Matrix – FY-11-12 .............................................................................................. 25 Annex 2: Progress on the Millennium Development Goals........................................................................ 33 Annex 3: Main Funding Sources (FY09 – FY11) ....................................................................................... 34 Annex 4: Changes in the Indicative Lending Program for the FY09-11 CAS (US$ million) .................... 35 Annex 5: Status of Non-Lending Activities ............................................................................................... 36 Annex 6: Selected Indicators* of Bank Portfolio Performance and Management .................................... 37 Annex 7- IDA Program Summary .............................................................................................................. 38 Annex 8: Key Economic & Program Indicators - Changes from Last CAS .............................................. 39 Annex 9: IFC Investment Operations for Liberia ....................................................................................... 40 Annex 10: Liberia Committed and Disbursed Outstanding Investment Portfolio ...................................... 41 Annex 11: Operations Portfolio - IBRD/IDA and Grants as of 3/28/2011 ................................................ 42 Annex 12: Donor Partnership .................................................................................................................... 43 Annex 13: Liberia at a glance .................................................................................................................... 44 MAP of Liberia No. 33435R

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I. INTRODUCTION

1. This Progress Report assesses the implementation to date of the Joint Country Assistance Strategy (CAS) of the World Bank Group (WBG) and the African Development Bank (AfDB) Group for FY 2009-2011. 1 The CAS, presented to the Bank’s Board on March 30th, 2009, was based on the priorities identified in Liberia’s first Poverty Reduction Strategy (PRS I) and addressed the following three themes: (i) rebuilding core state functions and institutions; (ii) rehabilitating infrastructure to jump-start economic growth; and (iii) facilitating pro-poor growth. At the time of this report, the objectives of the CAS remain relevant and significant progress has been achieved towards original CAS outcomes and milestones.

2. Two PRS Annual Progress Reports (2009 and 2010) were prepared by the Government of Liberia (GOL) and satisfactory progress was noted in a Joint Staff Advisory Note. Given that the country basically began to “rebuild from ashes” in 2006, it is notable that in the last few years, the GOL has been able to stabilize the economy, grow, advance on policy reforms and rebuilding of state institutions, complete several emergency infrastructure projects, improve two basic social indicators and attract important foreign investors. Notwithstanding those advances, the country remains fragile and there is a perceived failure in the speed in which the government is delivering tangible improvements in living standards for the population, still devastated by 14 years of civil war. Although Bank operation portfolio ratings are generally satisfactory, given that most have partially internationally staffed Project Implementation Units and are subject to intense supervision, this is not the norm in government. The very weak implementation of the central government project budget to date in FY 11 demonstrates that there are major capacity issues at the line ministry level and, at current speed and financing levels, it will be many years before there are significant improvements in people’s lives. Given the high unemployment rate, especially among young people and ex-combatants, continued frustration could mean continued fragility for many years to come.

3. The GOL is now constructing an ambitious national visioning planning, LIBERIA RISING, with the help of the World Bank and other development partners. The dream of this vision is to transform Liberia into a middle income country, capable of meeting and sustaining its own development aspirations by 2030. At the same time, the GOL is also elaborating, again with Bank support, a second Poverty Reduction Strategy (PRS II), the first of a series of 5 year operational plans based on LIBERIA RISING. No one doubts the potential of the country in terms of growth opportunities, but it is evident that in this next poverty reduction and growth strategy, the state must take on new and more ambitious initiatives in order to accelerate progress exponentially. 4. The implementation of a National Vision represents an enormous challenge for Liberia, a country that is still a fragile state and vulnerable to external and internal shocks. Key constraints are access to sufficient financing and capacity to implement. To finance reconstruction costs in infrastructure, service delivery and employment creation, significant support from current development partners, private sector, foreign direct investment, international financial markets and investments from nontraditional bilateral partners will be needed. Capacity will continue to be a binding constraint given that Liberia still does not have a critical mass of local technical expertise to translate commitment to reform into policy and technical capacity to deliver results. A dual track approach to capacity building will still be needed. Short term measures to address bottlenecks must coexist with longer term investments in human capital, especially in health, nutrition and education and longer term programs to promote stronger state capacity. 1 AfDB presented a separate progress report to their Committee on Development Effectiveness on May 5th ,2011

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II. COUNTRY CONTEXT AND RECENT DEVELOPMENTS

5. To better position the Bank to more effectively support the preparation of LIBERIA RISING and the PRS II, this report presents a proposed partnership, knowledge and financing plan for a one year extension of the current CAS in consonance with the Bank’s new Africa Strategy.2 Extending the CAS to the end of FY 12 will allow the Bank group to prepare a new five year CAS (FY 13-18), which will be aligned with PRS II.

6. Strong post-conflict economic recovery continued into 2008 but the global crisis towards the end of 2008 through most of 2009 created substantial challenges for Liberia’s fledgling economy. The PRS growth forecast was 9.6 percent in 2008, increasing to 10.3 percent in 2009 and further to 14.8 percent in 2010 before slowing down to 12.3 percent in 2011. The lower level of investments as well as lower demand in the domestic economy from reduced remittances and credit resulted in growth slowing down to 7.1 percent in 2008 and decelerating to 4.6 percent in 2009. The weaker growth resulted in substantial job losses including approximately 1,000 jobs in the rubber sector. Although exports fell, the larger decline in imports as well as the marginal improvements on the services and income accounts resulted in an improvement in the balance of payments from a deficit of 57.4 percent of GDP in 2008 to a smaller deficit of 36.8 percent of GDP in 2009. The fiscal impact of the crisis has been largely due to the slowdown in revenue.

7. Liberia has made substantial progress in reconciling, reducing and strengthening the management of its debt. The government reached a “Cologne terms” agreement with Paris Club creditors on April 17, 2008, which resulted in the immediate debt cancellation of US$254 million. In April 2009 and November 2010, the government concluded a first and second commercial debt buy-back of US$1.2 billion, respectively. This effort was supported by a technical assistance grant under the Bank’s Debt Reduction Facility (DRF) and US$15.2 million from the IBRD contribution to the DRF as well as support from Germany, Norway, the United Kingdom and the United States. Following the achievement of HIPC completion point in June 2010, Liberia received additional debt relief from IDA, the African Development Fund and the IMF; at present, external debt now stands at about US$ 90 million or about 9 percent of GDP.

8. The economy has broadly stabilized through prudent macro-economic policies. The pace of economic growth has picked up after the 2009 slowdown. The growth estimate for 2010 was 6.3 percent as FDI expanded and agriculture and forestry recovered. Inflation also decreased from nearly 10 percent in 2009 to about 5 percent in 2010. The overall fiscal balance shifted to a surplus of about 0.6 percent of GDP from a deficit of about 1.6 percent of GDP in 2009. In addition, public investment improved from just 2.5 percent of GDP in FY2006/07 to 5.5 percent of GDP in FY2009/10. The current account deficit is sustainable at around 40 percent and the higher inflows of foreign direct investment have stabilized the exchange rate and led to a modest build-up of reserves equivalent to about US$300 million or equivalent to two-and-a-half months of imports.

9. Liberia’s medium-to-long term prospects are good but given that the Liberian economy remains undiversified and largely dependent on primary commodity exports, it remains highly vulnerable to fluctuation in commodity prices. Moreover, the high price correlation between the commodities which Liberia exports exacerbates the impact of commodity price shocks. The Government is committed to a macroeconomic framework anchored in sound fiscal, monetary, trade and exchange policies to foster competition, maintain price stability and encourages private sector investment to provide a foundation for rapid and sustained growth to increase employment and reduce poverty. Since the Peace Accords of 2003,

2 Africa’s Future and the World Bank’s Support to It., March, 2011

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30 concession contracts have been signed for the exploitation of iron ore, petroleum, palm oil and forestry, and a significant number of further potential contracts have already been identified. Once all these contracts are awarded, the concessions will constitute a major “footprint” covering almost 40 percent of the national territory, and encompassing some 30 percent of the rural population. To date, concrete benefits from those concessions, with respect to tax revenues or employment have not been very impressive. Expectations about tax revenue from the export of logs under concessioned producers, for example, was once estimated to have the potential to contribute as much as US$ 12 million to the national budget by FY 11. But barely US$ 2 million have been received due to a variety of factors that have made government officials think more realistically about the potential revenues to be obtained from concessions. Nevertheless, a recent Bank study3, which was prepared to inform the PRS II, estimates that the potential production value of the concession areas could be estimated at US$2.5 billion annually. Revenues that may accrue to Government accounts from such production in the form of taxes and duties paid by producers could be used to leverage significant market financing of infrastructure investments. It is not out of the question that such revenues would be able to cover the totality of Liberia’s infrastructure needs over the next ten years.4 Public Private Partnerships could also play a significant role.

10. The success of a LIBERIA RISING means that the issues of nation building, national consensus and reconciliation must be addressed in PRS II. Recent analytical work carried out by the Bank’s Social Development Department on “Societal Dynamics and Fragility” indicates that a large number of social issues remain unsolved and that this results in a lack of social cohesion, poor links between citizens and their state, and the lack of a common project uniting citizens throughout the country. A lack of understanding of the average Liberian of how to interact with the state and a lack of trust of state institutions are present throughout the country. Land issues continue to be one of the most volatile issues in Liberia, especially between the different ethnic groups that comprise Liberia’s population.

11. There is also widespread disappointment over jobs not materializing for local populations during the current administration. According to a Bank study5 published in December, 2009, overall under and unemployment in Liberia is about 20%. The study also asserts that foreign investments in the traditional export sectors (rubber, oil palm, forestry and mining) are unlikely to create significant employment opportunities. Private sector growth, if equitable, is poised to be the main engine of Liberia’s post-war recovery and a dynamic small and medium enterprise sector will be essential to achieve growth and create jobs on the broad scale that is needed. A revitalized agricultural sector is also key to employment creation as is a national skills training program. 12. As mentioned earlier, there is a perceived failure to deliver tangible improvements in living standards and Liberia’s social indicators remain among the poorest of the world, with a per capita GNI of US$190 in 2010. It is estimated that the majority of MDGs will not be achieved by 2015, which is not surprising considering that serious efforts to achieve these goals only began in 2006. There have been two notable exceptions-infant and under-five mortality rates have been almost halved in that period and it is possible that two other goals related to HIV/AIDs and global partnerships may also be attained by 2015. Other key indicators, however, such as child malnutrition and maternal mortality remain some of the highest in the world. Details of Liberia’s MDGs are presented in Annex 2. 13. Presidential and legislative elections are planned for October 2011 and the current President will seek reelection. The violent aftermath of the recently contested elections in neighboring Ivory Coast is a reminder of substantial risk that contested elections results could provoke a similar renewal of unrest in Liberia. Security and humanitarian issues still currently pressure Liberia and there are

3 Liberia: Infrastructure and Concessions Paper (draft), Vivien Foster, May, 2011 4 A recent Africa Infrastructure Country Diagnostic for Liberia estimated that a total of US$ 3.7 billion would be needed. 5 Liberia: Employment and Pro-Poor Growth, Report No. 51924-LR, December 9, 2009.

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over 185,000 Ivorian refugees who remain in the country and it is expected that they will be slow to return to their country. Armed Liberian combatants, however, are returning home; this situation is being closely monitored by UNMIL (United Nations Mission in Liberia) and Liberian security forces.

III. PROGRESS TOWARDS CAS OUTCOMES AND PORTFOLIO PERFORMANCE

A. Progress on CAS Strategic Theme 1: Rebuilding of Core State Functions and

Institutions

14. Approximately 50% of CAS milestones associated with this theme have been achieved to date. A new Public Financial Management (PFM) law was approved in August 2009, budget preparation and execution have improved under the new budget framework, and a new budget classification and chart of accounts were introduced in line with international public sector accounting standards. PFM transparency is improving: quarterly expenditure reports are posted and there has been a decrease in direct contracting in public procurement. The Integrated Financial Management Information System (IFMIS) has been designed, equipment procured and the system is scheduled to be launched in July 2011. An internal audit strategy, also adopted, is now being implemented. The Integrated Tax Administration System (ITAS) has been operational since April, 2011.

15. Two-thirds of the milestones associated with Civil Service Reform have been achieved. The Senior Executive program (SES) is fully operational (97 staff currently in post) and overall program performance has been rated satisfactory. Restructuring plans have been prepared for five ministries, but implementation started only in the Civil Service Commission. Human Resource management of civil servants has improved; for example, the number of civil servants has been reduced by 15 percent since 2006, mainly through the removal of a number of “ghost” workers from the payroll. The recently installed Human Resources Management Information System (HRMIS) is expected to be fully functioning by mid 2011. Little progress has been made however, in the implementation of the pay reform and in linking compensation and promotion to a performance based system.

16. Bank and other donors have also supported increased capacity and transparency in other branches of the government and with civil society. IFC collaborated with the World Bank to co-finance and provide technical expertise for the design and implementation of an integrated project to develop a modern commercial code, refit premises for a commercial court and develop alternative dispute resolution mechanisms. The legislature has enacted the Commercial Code (comprising 8 laws) and a Law to create a Commercial Court. This project is expected to significantly improve the investment climate, ensure greater security for commercial transactions, substantially improve access to finance and inspire greater confidence in Liberia as an investment destination. A website for the Judiciary was also developed as well training courses for judges, magistrates and public defenders. The World Bank Institute, together with the Carter Center and the International School of Transparency at the University of Cape Town, are facilitating knowledge exchanges and showcasing international good practices on “Right to Information” implementation issues with the Liberia Parliament.

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B. Progress on CAS Strategic Theme 2: Rehabilitating Infrastructure to jump-start growth

17. Despite a series of implementation delays and cost overruns at the beginning of the CAS period, the Bank has played a major role in supporting the rehabilitation of basic transport infrastructure. The majority of CAS outcome indicators and milestones in transport has been achieved or will be achieved by the end of the present CAS. In addition to the rehabilitation of 15 km section of the Buchanan road (Cotton Tree – Bokay Town) in September 2010, another 10 km section has been completed. The contract for the 56.5 km remainder of the road to Buchanan port has been awarded and is expected to be completed by mid 2013. The resurfacing of 24 kilometers of city streets in Monrovia has also been completed. A Landlord Port Authority was established in 2010 and GOL signed a Public and Private Partnership concession contract with one of the world’s largest port terminal operators.

18. Bank support has helped the Monrovia City Corporation collect and dispose of 35% solid waste in the city. Additional support from the Liberian Reconstruction Trust Fund (LRTF) will raise that percentage to 45%, as planned, before the end of the CAS period. Other CAS outcomes and milestones for water supply and distribution in Monrovia were delayed by design issues. At the request of the GOL, the AfDB took the lead with the GOL on redesigning the water component. 19. The CAS urban and rural electrification outcomes and milestones are on track but the vast majority of the urban and rural populations do not have access to energy. A study on Liberia’s electricity supply options and a demand analysis for the period 2010-2040 was prepared with technical assistance by the Bank. IFC advised the GOL for the design of a five-year contract and management of an international competitive bidding process to select a qualified international utility operator to rebuild, operate and manage the Liberia Electricity Corporation (LEC); the Manitoba Hydro International (MHI) was selected. This US$50 million public-private partnership 6 is now responsible for providing electricity services to more than 30,000 new customers, including poor households. This supports the Government’s goal of providing 30 percent of Monrovia’s population with electricity by 2015. Another major achievement in the sector was the launching of the Catalyzing New Renewable Energy in Rural Liberia program funded by an AFREA grant that is supporting a two-year effort to establish and Liberia’s Rural and Renewable Energy Agency (RREA) and build its functionality. Sufficient energy generation, however, is likely to become a major issue in 2012 and there has been a lack of coordination within the GOL with respect to securing financing to date for the country’s energy needs. 20. The Policy Framework for Land Tenure Reform has not yet been adopted by the GOL and discussions are continuing both at a national and community level. Popular demands for land redistribution continue to play a role in the political arena, such that the emergence of a stable regime for land tenure continues to be elusive. The urgency once attached by the authorities to adopting a clear policy framework for registration of transactions in land and providing for greater security of tenure has lost momentum, which has had a negative effect on the environment for private sector development, particularly in areas where investment would be predicated on the award of concessions. Land issues are particularly volatile in the interior, given the constitutional recognition of customary law as a parallel system to private ownership based on statutory law, and because of sharp divisions that exist between Liberia’s different ethnic groups in terms of their understandings of land and property rights.

6 Donors providing US$50 million in funding for the LEC Management Contract include the Government of Norway, the US Agency for International Development, and the World Bank.

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C. Progress on CAS Strategic Theme 3: Facilitating Pro-poor Growth

21. Satisfactory progress has been made in all CAS outcomes related to this theme, with the exception of results in agriculture. Unforeseen processing delays, capacity issues and unrealistic project indicators in the implementation of the agricultural component of the Agriculture and Infrastructure Development Project (AIDP) hampered progress in this sector. 22. All CAS milestones related to the forestry sector have been achieved and the Bank continues to support the government’s “three C’s” approach to the forestry sector (commercial, conservation, and community forestry) with a goal to achieving accountability, transparency, security and social responsibility. Progress has also been made in forestry governance and institutional capacity building. The Chain of Custody, currently supported by the Bank through the PROFOR Trust Fund, ensures that only legally harvested logs from the forestry concessions are exported and that all taxes and fees are collected. Seven forestry concessions have been approved to date and ten community economic development sites established. Concessionaires, however, have been frustrated by current road conditions which limit their ability to get their shipments to port.

23. Liberia was the first African country to be EITI (Extractive Industries Transparency Initiative) compliant. This is a major advance with respect to governance and resource management. Over the past two years, the government has used standard mineral development agreements (MDAs) and bidding documents in-line with international good practices. The Extractive Industries Technical Advisory has provided advice on several iron ore and related infrastructure negotiations as well as proposed changes to the mining concessions agreement structure and negotiation procedures. The Bank is reviewing the forest, mining, petroleum and fishery sectors to identify gaps as per the EITI++ value chain approach and the World Bank Institute (WBI) has also carried out consultations on social accountability issues and opportunity mechanisms for Liberia. However, mining legal and regulatory frameworks still need to be updated and a recent assessment by the UN Panel of Experts on Liberia suggested that although progress has been made in improving the regulatory environment governing natural resources, implementation constraints still hinder its operation.

24. All CAS milestones relating to improving Liberia’s business and investment climate have been achieved as well as one outcome. In 20107, Liberia was recognized as a Top Ten Global Reformer. On the ease of doing business, Liberia was ranked 155 out of 183 economies in 2010, up from 170 out of 178 in 2007.8 IFC is supporting improvements in the regulatory environment and supports investment generation through direct support to sector ministries and a public-private dialogue through the Liberian Better Business Forum. A state-of-the-art Business Registry was recently launched and allows a business to complete registration 48 hours from submission of complete documentation. IFC also supported the establishment of a commercial microfinance bank—Access Bank Liberia (ABL), which opened its first branch in January 2009. ABL went on to established five additional branches and now manages 28,000 accounts, exceeding CAS expectations. In addition and in recognition of the capital constraints of Liberian SMEs, IFC worked to set up the West Africa Venture Fund (“WAVF”) to provide risk capital and advisory services to SMEs. WAVF Liberia launched on April 19, 2011 and the average investment size is expected to be between US$100,000 - US$500,000. IFC has also expanded its Global Trade Finance Program and accelerated technical assistance for Liberia’s banks, to improve the take-up and use of the Global Trade Finance program. Access to finance remains however, a major constraint for the growth of the SME sector.

7 Doing Business Report 2011 8 Doing Business Report 2008-2011

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25. Most CAS social protection milestones have been achieved through successful government implementation of quick-impact social protection measures to mitigate the negative effects of the food crisis. For example, a school-feeding program operation in five counties in southeast Liberia in 2008/09 benefitted over 62,000 students from both pre-school and primary levels. A cash-for-work program implemented by the Liberia Agency for Community Empowerment (LACE) benefitted 17,000 people, including in marginalized urban areas, where unrest is a significant threat. In addition, the Community Empowerment Project in Liberia has successfully enhanced community cohesion, social capital and community infrastructure. To date, LACE has completed 155 infrastructures, including schools, health clinics, markets, bridges and culverts, and improved water and sanitation sites, throughout Liberia’s 15 counties. Approximately 2,750 community members and local government authorities also have received training from LACE on project management, as well as conflict resolution and reconciliation.

D. Portfolio Performance

26. The quality of the IDA portfolio overall is satisfactory. The active IDA portfolio currently consists of 11 projects with net commitments of US$270 million. The undisbursed balance as of March 22, 2010 was US$142.87 million. The portfolio has no net commitments at risk or over-age projects. Implementation performance for the country shows 46 percent of projects rated satisfactory and the remainder as marginally satisfactory, mainly because of capacity constraints and implementation delays. As of April of 2011, the disbursement rate for the IDA portfolio was 25.5%. Annex 6 presents more detail on selected indicators of Bank portfolio and management.

27. Regional projects now represent a substantial part of the Bank’s portfolio. With the approval of two regional projects namely the West Africa Power Pool (Phase1) and the Africa Mineral Governance Project APL 1, the Bank will be supporting a total of four regional initiatives in FY 12 for a total commitment of US $158.6 million.

28. The last Country Portfolio Performance Review (CPPR) was held with the GOL in February of 2010 and highlighted capacity issues in overall implementation, procurement and contract management. Both the GOL and the Bank shared a common assessment that the country is gradually moving out of an emergency recovery situation to a normal development path, albeit with various challenges. It was also noted that, once out of emergency status, higher standards would be required for implementation of development policy and projects. The GOL needs to have greater country ownership in planning, managing and supervising its investment, and to develop and sustain its institutional capacity, building upon the experience and lessons learned during this transition period. This is especially important given that operations for Liberia are no longer being processed under emergency procedures and in addition, Bank IDA support is now delivered as concessional credits not grants, given that Liberia’s debt stress has been reduced to tolerable levels.

29. The next CPPR will be held in late June, 2011. Members of the country team and the GOL will not only review progress made since the last CPPR, but also discuss how to more effectively mainstream the guidance of the Bank’s new Africa Strategy in dealing with issues such as capacity building and improving development partnerships. It is also important to note that, in FY 2011, the Liberia Country office added three new staff to the team: procurement and a financial specialist as well as a Senior Operations Officer in order to strengthen portfolio management. This operations’ team will assist the Ministry of Finance in setting up a framework for systematic joint reviews of Bank operations in the country.

30. Trust Funds have been and will continue to be a very important source of program financing for the rest of the CAS period and beyond. At present, the Liberia Country Program has a portfolio of approximately 56 trust funds, including the Liberia Reconstruction Trust Fund (LRTF), a

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Bank-administered multi-donor trust fund which has signed pledges to date for about US$171 million and has thus far in the CAS period committed US$145 million. The Liberia country office local operations’ team will be analyzing the trust fund portfolio in coming months to ensure a more strategic use of funds, avoid fragmentation and its associated costs, and promote greater alignment with the extended CAS.

31. Another challenge facing the portfolio is the need to improve the monitoring and evaluation and statistical capacity of the GOL. The current PRS was based on the achievement of deliverables and outputs, not development outcomes. One major underlying issue is the lack of adequate and reliable statistics at the country level. A proposal has been submitted to the Bank’s Statistical Trust Fund in order to support the GOL, together with other donors such as the AfDB and the UNDP, in their efforts to improve their measurement of basic development indicators and the results indicators that will be developed for the PRS II with the assistance of the WBI.

E. Cross Cutting Issues

32. Low levels of implementation and sector capacity have been the most serious binding constraint in the delivery of Bank financed programming in Liberia since the reengagement of the Bank in 2005. Liberia is still a country with only 100 trained medical doctors and 31 certified public accountants. In the Civil Service, reform needs have been addressed through shorter-term solutions, such as Bank support to the Senior Executive Service, a program which finances highly qualified Liberians in key public positions; this program has been a key driver for capacity building in the public sector and the GOL has expressed its intention to absorb SES staff into its payroll beginning January 2013. Additionally, the Bank and other donors continue to support the Liberia Institute of Public Administration to train core civil servants in various areas. There has been notable progress in several institutions, such as the Ministry of Public Works and the Monrovia Municipal Corporation in building stronger technical units to implement Bank projects, with the idea that these units will gradually transfer to line ministries and government agencies. Nevertheless, many project coordinators and key fiduciary staff continue to be non-Liberians; the sustainability of their salary rates remains an issue. Low public sector wages, especially in health and education, also constrain government capacity to improve overall professional levels in these ministries.

33. Reforms in core state institutions have been underpinned by broad-based capacity building efforts. The Financial Management Training School, for example, is building Public Financial Management (PFM) human resources capacity in government agencies by training a cadre of qualified practitioners. The establishment of an independent General Auditing Commission (GAC) and programs to strengthen audit capacity has enabled the audit of government accounts for the first time in twenty years. World Bank Institute (WBI) capacity development activities have drawn on South-South platforms for regional knowledge exchanges and access to technical know-how on four governance-related themes: access to information, procurement and contract monitoring, particularly in the area of extractive industries, parliamentary strengthening and social accountability.

34. Capacity building is also important for Liberia’s private sector. Entrepreneurship is weak in Liberia, and excepting a few major companies such as Arcelor Mittal and Firestone, most businesses are small, informal, with low production capacity and with very limited access to reliable business support services. IFC is addressing this challenge through the roll out of its trademark SME capacity development solutions tools such as an SME Toolkit and Business Edge programs. IFC is also working to strengthen Small and Medium Scale Enterprises (SMEs) through the SME Toolkit and Business Edge programs. Through its Africa Schools Program, the IFC supports the GOL’s Education Sector Plan by providing opportunities for the development of private vocational and technical schools through business development services and access to finance.

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35. In 2010, Liberia was the winner of the 2010 MDG 3 award for outstanding leadership, commitment and progress towards the achievement of MDG 3, which purpose is to eliminate gender disparity in education and empower women. Women comprise 56 percent of the informal non-agriculture sector and are still significantly underrepresented in key emerging areas of the Liberian economy such as mining, construction and services. They also have consistently less access than men to key productive inputs, including land with 16 percent of women owning land compared to 33 percent of men. During the CAS period, the Bank, with various partners9, has supported two pilot programs focusing on the economic empowerment of 2,500 adolescent girls and young women, aged 16 to 27 in Monrovia and Kakata and of 1,000 women in 10 communities in Ganta, Nimba County who are involved in the production, processing and marketing of cassava products. Lessons learned from these programs will be vitally important for the national visioning document: “Liberia Rising 2030” especially with respect to inclusive development. The GOL and the Bank also prepared a Policy Memorandum on Gender and Agricultural Value Chains with a goal to support programs on gender issues in agricultural and rural development.

IV. ADJUSTMENTS TO THE CAS AND MOVING FORWARD

36. During the CAS period (FY09-11), the Bank was able to mobilize significantly higher levels of financing, both from IDA and Trust Funds, than anticipated in the original lending strategy. 10 The total original Bank financing package for the CAS was estimated to be approximately US$ 284.8 million but to date, has reached a total of approximately US$528.7 million. Specifically, IDA lending increased from the US$138 million to US$ 248 million during FY09-11. The majority of the funding was to support investment lending but to date, the Bank has also delivered a total of US$15 million in budget support as planned. This has sent a strong signal to other development cooperation partners, several of whom are now working with the GOL and the Bank in discussing the content of a common results framework for a future coordinated budget support operation. Budget support operations have been focusing on: (i) improving the capacity for and transparency of public procurement; (ii) improving internal control measures and the capacity for internal audit; (iii) improving revenue administration; and (iv) improving land administration to reduce conflicts and enhance the investment climate. These operations have complemented the Economic Governance and Institutional Reform Project, which received additional financing to increase support for rehabilitation of core state functions, especially with respect to capacity building in public financial management and procurement. In line with the Africa Strategy, efforts will continue to scale up partner collaboration and leverage resources to supplement still modest domestic revenues.

37. Increased resources meant that the Bank was able to respond positively to the GOL’s request to increase funding for key infrastructure program, including roads, which was the number one priority, identified in PRS I. This made possible not only the financing of new investments but also the mitigation of cost overruns in individual IDA operations affected by the inflationary impact of the global crises. Planned investments for the transport sector had originally totaled US$96 million but a total of US$274 million in operations will have been delivered by June 7th, the Board date of the Liberia Road Asset Management Project (LIBRAMP). US$25.5 million of was assigned for the West Africa Regional Connectivity Program which will significantly improve Liberia’s access to internet. The West Africa

9 Partners have included the Nike Foundation, the UNIFEM, and the International Center for Research on Women as well as Denmark. 10 Annex 3 describes CAS funding sources per project during FY09-11; Annex No. 4 documents changes in the Indicative Lending Program for FY09-11 CAS

10

Regional Fisheries Program (WARFP) also received additional financing and will be investing US$12 million in the sector over the next 5 years to help generate more revenue from fisheries.

38. Additional resources also allowed the Bank the flexibility to respond to the GOL’s growing concern about responding more adequately to investments in human capital and employment creation, activities not programmed in the CAS. US$40 million were approved by the Education for All-Fast Track Initiative Grant for Basic Education which will support targeted interventions for expanding access to education in rural areas and improving the classroom learning environment. Previously, the Bank had helped the Ministry of Education draft and disseminate the Education Sector Plan (2010-2020) which was a prerequisite to obtaining the grant. Support was provided for the YES (Youth, Employment and Skills Project), which is expected to promote employment through skills training in both the formal and informal sectors and also to scale up a successful cash-for-work program which will provide 45,000 Liberians with temporary employment between 2010 and 2013. These efforts are fully aligned with the pillar of the Africa Strategy addressing competitiveness and employment and they will be enhanced moving forward.

39. Responding to specific needs of GOL, the Bank group also increased the amount of non-lending activities originally planned in the CAS, as can be seen in Annex 5. Bank Policy Notes and World Bank Institute technical assistance have evolved into important vehicles for informing the government’s longer term visioning document, Liberia Rising 2030 as well as the PRS II. WBI is currently providing technical assistance to the Ministry of Planning and Economic Affairs to develop a results framework for PRS II that clarifies medium-term goals and objectives in terms of observable development outcomes and priorities. A unified set of indicators will also be developed; this will facilitate PRS II coordination, planning, and implementation monitoring by country stakeholders and donor partners.

40. PREM, HD, SD and IFC staff are working on a series of analytical studies, including a Growth Diagnostic and Scenario Planning for the PRS II, which will be used to simulate impacts of various policy alternatives given a fiscal envelope on key macro variables as well as MDGs. They are also preparing specific studies on Infrastructure and Private sector development, including Private Public Partnerships to improve service delivery and leverage concessionaire activity to drive economic diversification. Two other studies, Political Economy and Exclusion in Liberia and a Social Protection Policy Note will look both to deepen understanding of the political and economic dimensions of exclusion and also provide the basis for the formulation of an effective social protection policy and strategy for Liberia. These studies will explore options in which Foreign Direct Investment could be more pro-national development, for example by developing linkages to public infrastructure and linking concessionaire activities to the local private sector. As discussed in the Africa Strategy, these knowledge products might be turned into the instruments to identify the constraints for improvement and help government to boost its performance.

41. The original CAS results framework (Annex 1a) is revised into a leaner and more realistic forward-looking matrix (Annex 1b) which reflects the extension of the CAS until the end of FY12. Changes in the composition of projects and AAAs in the Bank’s portfolio are reflected in the indicators and milestones. Primary education is added as a component. Generally, targets for indicators and milestones are revised upwards except in the agricultural sector due to late start of activities in this sector. 42. FY12, the final year of the extended CAS, will be a strategic year for Bank programming in Liberia. Important analytical work will continue to be undertaken to support the elaboration of PRS II, final elaboration and consultation of which will be done after the upcoming elections in October. The Bank will also prepare a CAS completion report and afterwards, begin preparation of a new five year Country Assistance Strategy based on priorities of the PRS II that the GOL will want the Bank to focus on and taking into account the strategic framework of the Bank’s new Africa Strategy.

11

43. Donor coordination will continue to be a vital component of Bank work. Partnerships will be strengthened with donors not only to promote harmonization in programming and alignment with government priorities but also to promote new funding sources for those priorities. Reconstruction financing needs to establish a solid base in infrastructure and human capital remain enormous. Non-traditional partners and bilateral donors are channeling significant levels of aid to Liberia, especially the European Union, the African Development Bank and the governments of the United States, China, Japan, France, Sweden and Ireland, and the UN family. At the sector level, it is expected that donor coordination will improve with the consolidation of the sector working groups that have been established to elaborate the PRS; each group is co-led by a development partner and a GOL ministry. At the beginning of the CAS period, the Liberian Reconstruction Development Committee was the setting for high level strategic coordination and policy dialogue between GOL and the donor community. Over the past year, many donor partners have felt the urgent need to revitalize the current level of policy dialogue and the Bank will be working to facilitate that process; a recent meeting with the President to discuss the issue of energy policy was a step in the right direction. 44. Partnership will also be strengthened with Civil Society, especially in the area of governance and transparency. WBI and several NGOs are working together to improve social accountability and increase demand for good governance through access to information work, contract and procurement monitoring, budget transparency, and monitoring of performance of Bank projects through External Implementation Status Reports. 45. In addition to the ongoing AAA work described in paragraphs 30-31, the Bank team will also prepare several pieces of core analytical work to inform the new CAS. These will include a Public Expenditure Review, a Poverty and Gender Assessment, in addition to a series of policy notes on Road’s Sector Reform and Rebuilding State Capacity.

46. Finally, in FY12, IDA proposes to deliver three country level operations and two regional initiatives. A new Transport operation for US$35 million will focus on rural roads and maintenance and a Development Policy Operation (RRSP4) for US$5 million will continue to promote reforms in governance and land tenure reform. The third FY 12 IDA deliverable will be the US15 million Small Holder Tree Crop Revitalization Support operation, that will target small farmers and reintroduce rural credit to the country’s economy. IFC is also considering several investment opportunities in the tree crop sector and will begin to do follow-up work to the new World Bank Framework and IFC Strategy for the Palm Oil Sector.

V. KEY CONSTRAINTS AND RISKS

47. The risks identified in the CAS stand relevant at the time of this progress report. Liberia remains a fragile state and a divided country, politically and culturally, because of lingering historical and post-conflict tensions which could be exacerbated by the political tensions immanent in the period of national elections. The WDR 201111 concludes that the risk of relapse into conflict could be derived from an unfinished or haphazard truth and reconciliation process. In addition, any problems in government transition, resulting from the elections results, could spark a relapse, which then would pose a substantial risk for the rest of the CAS implementation period. UNMIL continues to maintain a peacekeeping force, and to help the national police develop an integrated security and contingency plan, including the establishment of security hubs in selected parts of Liberia, in preparation for its anticipated draw down. Accelerated support for the security sector will be an essential aspect of

11 WORLD DEVELOPMENT REPORT 2011, Conflict, Security, and Development. The World Bank, Washington D.C., January 2011.

12

consolidating the fragile peace in Liberia; considerable work remains to be done before the eventual handover of UNMIL security responsibilities to national authorities. 48. Over the past several years, the government’s strong economic and political reform efforts have been recognized by the local and international community, but the population’s expectations for concrete peace dividends still remain high. Managing short term expectations of the population is complicated given that there are no quick fixes for structural issues such as land tenure, underemployment and issues of exclusion which continue to be factors of instability in the country. The 14 year conflict that devastated the country is largely blamed on the exclusion and marginalization of a large part of the Liberia population from political power and the economic wealth from the country’s natural resources. It is important therefore that the new visioning exercise, Liberia Rising, be accompanied by a communication strategy that discusses these issues and the search for strategies and implementation plans which respect a multi-cultural nation. Bank analytical work in support of PRS II could play an important role in supporting GOL’s efforts to promote a more equitable and inclusive national growth and poverty reduction strategy. Bank programming for employment creation, increased access to infrastructure and educational and health service delivery for both urban and rural populations will also be key.

49. Capacity building, in order to implement a national development plan that is more pro-poor and equitable is one of the major challenges facing Liberia. Shortage of capacity within Government to implement reforms or programs poses a significant risk. Building capacity to implement will be one of the major components of a results based PRS II. To date, there has been notable progress in building strong technical units and functions in various sectors and the Bank funded SES program has been a key driver for capacity building in the public sector. Some of these are short to medium term measures but it is important that the Bank, together with other donors, work closely with the GOL to evaluate what has been done, what has worked and what elements are important to take into consideration for the medium and long term. As suggested by the WDR 2011, a dual track approach to capacity building will be pursued: the short term measures to address bottlenecks will coexist with longer term investments in human capital, especially in health, nutrition and education and longer term programs to promote stronger state capacity. The Africa Strategy also offers a useful framework for this discussion.

50. Weak governance and high levels of perceived corruption remain a key constraint to development. Diversion of public resources and poor value for money remain significant concerns. Improving the quality of legislation and the system of law codification will help build the rule-of-law foundation and minimize the potential for direct conflicts. Each Bank investment operation contains mitigation measures and broader governance policy reforms will be supported by budget support operations. Strengthening procurement capacity, not only in Bank supported operations, but also for the execution of the entire national budget will continue to be a priority of Bank programming in governance and transparency in FY 12 and beyond. 51. FY12 presents an opportunity to strengthen the solid partnership that the World Bank Group has developed with Liberia since reengagement. The development of a National Vision and a more ambitious second generation PRS is an opportunity for the GOL to consolidate gains and accelerate development and at the same time confront key development challenges and obstacles. For the WBG, it is an opportunity to deepen understanding of Liberian reality and the underlying political economic and technical constraints to development through key analytical work to support the PRS II process as well as to inform the new CAS, whose implementation will coincide with the time frame of the PRS II. The Bank will also continue to do what it has done successfully over the current CAS period to date, strategically use IDA financial and knowledge resources to leverage more development resources from public, private and public/private sources for Liberian reconstruction and development.

13

CAS Progress Report

ANNEXES

14

Annex 1a: CAS Results Matrix – Progress to date

Selected Liberia PRSP objectives & indicators12

Key Issues from PRSP

CAS Outcome & Indicators

CAS Milestones

Progress to Date (March 31, 2011)

World Bank Group/ADB Instruments

CAS Strategic Theme 1 – Rebuilding of Core State Functions and Institutions (aligned with PRSP Pillar III)

Create a new framework for PFM

Improve PFM using an integrated financial management system

Improve revenue collection by implementing tax administration reforms and automation

(No indicators presented in the PRSP)

Fragmented and incomplete legislation, unclear rules and lack of coordination create opportunities for abuse and corruption

The accounting system is handicapped by a single-entry system, weak purchase order and accounts payable systems and weak coordination between HR and Payroll and between MOF, BoB and CBL

Outdated laws, overlapping procedures, weak organizational structures and limited automation have resulted in inefficient revenue administration

Weak procurement legal framework and practices lead to inefficiencies in the use of public funds

1. Improved efficiency of budget preparation and execution and enhanced revenue administration

Budget Execution

1.1 Reduction in number of days to process payment vouchers by at least 50% (from 14 days) by 2010 (WB) Achieved. 7 days

Budget Preparation and Execution

80 % of vouchers can be approved and paid by MOF by 2009 (compared to 60% in 2006) (WB)

Quarterly expenditure reports posted within 6 weeks after end of quarter by 2009 (compared to 3 months after in 2007) (WB)

Three modules of the IFMIS system (General Ledger, Budget Preparation and HR and Pay Roll) operational by 2011 (WB & ADB).

<20% of public procurement that used direct contracting and/or less competitive methods without proper justification by 2010 (compared to estimated more than 80% in 2008) (WB)

General auditor produces audits for five Ministries that are submitted to Parliament by 2009 (ADB)

Internal audits produced for 3 key ministries by 2009 (ADB)

Macro-fiscal unit performs functions linking budget to Medium Term Fiscal Framework by 2010 (ADB)

Achieved.100% of vouchers are approved and paid by MOF Controller in 2010.

Achieved. The quarterly report ended 2010 is published after 45 days

Not achieved. Now scheduled for July 2011.

Not achieved. 68.3% in 2010

Achieved. 22 audits submitted in 2009.

Not achieved.

Not achieved. Rescheduled to 2011.

On-going Projects:

Support for MOF Resource Management Unit (FY07)

ADB Institutional Support Project (FY07)

EGIRP (FY08)

IFMIS (FY08)

Public Procurement Reform (FY04)

Pipeline Projects:

ADB budget support operation (FY09)

WB Development Policy Operation (FY09)

AAA

DTIS (FY09)

Partners: DfID

12 This is a subset of the Liberia PRSP Objectives taken directly from the final PRSP document.

15




CAS Milestones



Revenue Administration

1.2 50% of collected revenue captured in the Integrated Tax Administration System by 2010 (WB) No data


New computerized Integrated Tax Administration System (ITAS) operational by 2010 (WB)

Tax administration risk management systems implemented and post audit systems enhanced by 2010 (ADB)

Achieved. ITAS implementation started in Oct 2010

Not achieved.Scheduled for 2011

Strengthen and enhance the effectiveness and efficiency of public institutions and functions

% of population that perceives the Government of Liberia to be performing better than in the previous year

Number of Ministries, Agencies and SOEs/parastatals restructured based on revised, published and adopted mandates

Public institutions, for the most part, have been bloated, disorganized, weak and supportive of corrupt practices.

Experienced and qualified professional staff left the civil service because of low salaries

Staff motivation is low Payroll controls are

weak and there is a high number of ghost workers

2. Increased professionalization and improved HR management of the civil service

Civil Service Professionalization

2.1 35% of SES staff who are rated satisfactory in terms of performance against targets in performance contracts are retained in the civil service at the end of their contract (WB) No data 13

2.2 50% of SES staff builds sustainable capacity for improved management of government functions by effectively training and nurturing and least one staff during the time of their contract. (WB) Partially achieved.

Civil Service

ProfessionalizationSenior Executive Service (SES) Scheme is fully operational - at least 70 staff recruited by 2009 (WB)

Ministries implement restructuring plans based on redefined mandates, new organizational structures and matching staffing plans (WB)

Civil Service Reform Strategy in place by 2009 (WB)

Development of a plan for LIPA’s training delivery by early 2009 and 25 MDA staff trained by 2010 (WB & ADB).

Ssystem of performance evaluation based on merit is designed and linked to compensation and promotion systems by 2011 (WB)

Achieved. 97 staff currently at post.

Not achieved. Restructuring plans prepared for 5 ministries. However, implementation has begun for one (the civil service agency).

Achieved. Civil Service Reform Strategy approved by Cabinet

Not achieved. Training plan not developed, no training conducted.

Not achieved.No significant progress.

Ongoing Projects:

Senior Executive Service (TFLIB- FY08)

Civil Service Reform Project (LICUS - FY08)

EGIRP (FY08)

Capacity building for Judicial Services (LICUS - FY08

Partners: UNDP, USAID, Carter Institute, DfID

13 Update: At the end of December 2010, the performance of 92% of SES staff was rated satisfactory. The absorption of SES staff into the civil service would only be considered at the end of their existing contracts that would be expiring at various times between January to June 2011.]

16




CAS Milestones



Capacity-building is on-going.

HR Management of Civil Service

2.3 Discrepancy between nominal and actual payroll less than 2% in 2010 (compared to 25% in 2007) (WB) Not achieved.8 %


Personnel records maintained with one file for each employee with matching payroll records. (WB)

Personnel file includes biometric information for 100 percent of employee. (WB)

Rationalisation of civil service grades and development of a well defined salary structure. (WB)

Retirement age and rules are enforced 100% of the time. (WB)

Achieved. Personnel records created and matching with payrolls on-going.

Achieved.Biometric information available for 45% of personnel files.

Achieved. Grading rationalized (from 16 to 10) and salary strategy approved by Parliament.

Achieved. Employees exceeding retirement age removed from payroll.

CAS Strategic Theme 2 – Rehabilitating Infrastructure to jump-start growth (aligned with PRSP Pillar IV)

Transportation - to improve the Liberian transport sector through policy, systems and infrastructure development that create access to reliable, affordable and efficient services

Indicators: roads rehabilitated or reconstructed by 2011

Vessels clearing Freeport of Monrovia increased

Transport

Liberia’s roads network is in complete deterioration.

Liberia has limited road maintenance workforce.

Poor port facilities, inefficient institutional framework and inadequate port maintenances.

3. Improved access to key infrastructure services

Transport

3.1 20% reduction in travel time between Monrovia – Ganta Not achieved. Yet to start and Cotton Tree – Buchanan by 2011 (WB) Achieved. 30 %

3.2 Primary and feeder roads rehabilitated and subject to sustainable maintenance increase from 25% to 45% by 2010 (ADB) Achieved.45 %

3.3 Productivity of the Monrovia port increased

Transport

Cotton Tree – Buchanan road corridor under Output Based Road Performance Contract (OPRC) by 2010; Monrovia Ganta corridor under OPRC by end 2011. (WB)

Partially Achieved. Cotton-Tree-Bokay Town complete. Bokay-Town to Buchanan (57km) procured under Limited International Bidding (LIB). Works to start by May 2011 to be completed in 25-months: Monrovia - Ganta corridor bids under 10-yr OPRC invited in December 2010. Bid submission in May 2011, expected evaluation and award by October 2011.

Partially achieved. Draft legislation on establishment of a Road Authority and Road Maintenance Fund in preparation for enactment by Legislature.

On-going Projects

Agriculture and Infrastructure Dev. Project (FY08)

Emergency Infrastructure Project (FY06)

ADB Labor-based Public Works Program

Pipeline Projects:

Monrovia/Urban Infrastructure Emergency Project (FY09)

Urban and Rural Infrastructure Rehabilitation Project

17




CAS Milestones



from 28 to 32 per month

from 3 moves/hr per crane in 2008 to 8 moves/hr per crane in 2011 (WB) Partially achieved

Draft legislation on establishment of Road Authority and Road Maintenance Fund by 2011 (WB)

24 kms of Monrovia roads resurfaced (WB)

New Vai Town, Caldwell (WB) and four other bridges (ADB) and 35 minor river crossings built or improved by June 2011

600 kms of roads under maintenance 2009-2011 (WB)

400 kms (WB) + 600 kms (ADB) of rural feeder roads rehabilitated by 2011

125 km of primary roads rehabilitated by end 2010 using LB methods (ADB)

229 drainage points constructed by 2010 (ADB)

70% of the general cargo operations by professional terminal operator by 2010 (WB)

Landlord Port Authority established by 2010 (WB)

Achieved. 24 km resurfaced.

Partially achieved.Vai Town Bridge 75% completed. Caldwell consultancy in award process. ADB: Four bridges under construction at Fishtown-Harper Road

Achieved. Maintenance of these roads is ongoing.

Partially achieved. Rehabilitation of 200 km of feeder roads started in 2011 under WB/ILO. ADB works contracted to ILO also currently in progress.

Partially achieved.Rehabilitation of Fish Town – Harper Road 125 km primary roads in construction.

Achieved. 229 drainage points constructed at Fishtown- Harper Road.

Achieved. Private concession effective in 2010 and handles near 100% of general cargo.

Achieved. Concession agreement became effective in October, 2010

Achieved. 229 drainage points constructed on Fishtown-Harper Road.

Achieved. Private concession effective in 2010 and handles near 100 % of general cargo.

Achieved. Concession agreement became effective in October 2010.

(FY09)

ADB Agriculture Sector Rehabilitation Projct (FY09)

Partners: Norway, EC, US

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CAS Milestones



Water and Sanitation - Reduce the water and sanitation-related disease burden in Liberia

Water and Sanitation

Only about 42% of the Liberian population has access to improved drinking water.

Only about 39% of the population has adequate means of human waste collection.

Liberia’s urban infrastructure is destroyed and in disarray and city planning is poor.

Operation of water and sanitation facilities currently unsustainable.

Water and Sanitation (Monrovia)

3.4 Number of people served with safe drinking water increased to 700,000 by 2010 (ADB) Not achieved.Redesign of project

3.5 Number of people with access to sanitation facilities increased to 300,000 by 2010 (ADB) Not achieved.Redesign of project


Number of household water connections in Monrovia increased from 17,900 in 2007 to 50,000 by 2010 (ADB)

75 km of Transmission Mains and over 200 km of Distribution lines rehabilitated in Monrovia by 2010 (ADB)

Treated water volume at Monrovia plant increased from 2 million gallons per day (MGD) to 6 MGD by 2010 (WB)

1 sewage stabilisation pond, and 31 public toilets, rehabilitated/ constructed by 2010 (ADB)

40% of solid waste disposed of in a sanitary manner annually (compared to 25%) (WB)

Not achieved.Deliverable rescheduled from 2010 to 2011-15 due to the redesign of the project – approved in May 2010.

Not achieved Deliverable rescheduled from 2010 to 2011-15 due to the redesign of the project – approved in May 2010.

Not achieved. 4.2 MGD in Oct 2010

Not achieved. Deliverable rescheduled from 2010 to 2011-15 due to the redesign of the project – approved in May 2010.

Partially achieved.35 % of solid waste collected and disposed.

On-going Projects


Labor-based Public Works Project (FY08)

ADB Monrovia Water Supply and Sanitation Rehabilitation Program

Pipeline Projects:

ADB Monrovia Extension and 3 County Capitals Project (FY09)

Monrovia/Urban Infrastructure Emergency

Project (FY09)

Community Empowerment Project II (FY07 + FY08)

AAA:

Water/sanitation Expansion and Rehabilitation – study (ADB)


Energy – Provide reliable, sustainable and affordable energy services to all Liberians in an environmentally sound

Energy

Grid electricity is non-existent outside Monrovia

Presently only

Energy (Monrovia)

3.6 Number of connections to the electricity grid increased from 350 in 2006 to 3,600

Energy

Selection of a Management Contractor for an integrated Electricity Concession for

Achieved. Management Contractor selected.

On-going Projects


Improved Electricity Access for Liberia

19




CAS Milestones



manner

Indicators: % of households with access to electricity increased from 0.6% to 10% by 2011

Installed capacity increased from 2.6 MW to 29.6 MW by 2011

2.65MW of power is available in Monrovia while the demand is between 30 to 50MW

in 2010 (WB) Partially achieved. 3,090

Monrovia by 2009 (IFC/WB)

Special Purpose Company for regional transmission operation formed by 2010 (WB)

Feasibility Study for the interconnections between Liberia, Cote D’Ivoire, Guinea and Sierra Leone completed by June 2010 (WB)

Not achieved.Special Service Company not set up yet.

Achieved.Feasibility study completed.

(GPOBA)

Pipeline Projects:

Monrovia/Urban Infrastructure Emergency Project (FY09)

IFC Program to Implement Public Private Partnership in the Monrovia Power Sector

WB Power Sector PRG (FY10)

Regional West Africa Power Pool Project (FY10)

AAA:

Infrastructure Strategies: (Energy FY09/10) (ADB)


CAS Strategic Theme 3 – Facilitating Pro-poor Growth (aligned with PRSP Pillar II)

Agriculture and Food Security - Revitalize the food and agricultural sector to contribute to shared, inclusive and sustainable economic growth and development; provide food security and nutrition; increase employment and income; and

Agricultural supply chains have collapsed due to fragmented markets, weak rural demand, no value addition, and few incentives for cash crop production.

Agricultural institutions remain largely ineffective at delivering services such as regulation, policy and planning, and research and

Improved agriculture and natural resources management in a way that generates pro- poor growth

Agriculture

4.1 Yields of rice increased from 700 kg/ha to 1200 kg/ha among beneficiary farmers by 2010 (WB) No data

Agriculture

Number of markets where seed rice is available has increased from 3 in 2007 to 7 (WB)

Local seed multiplication facility established and produces 1000 mt of certified seed (WB)

Two new agricultural sector policies completed with results framework (WB)

At least 3 markets

Not achieved. Activities not started yet.

Not achieved. Activities not started yet.

Not achieved. No activities yet.

On-going Projects

Agriculture and Infrastructure Development Project (FY08)


Pipeline Projects:

Agriculture Sector Rehabilitation Project

20




CAS Milestones



measurably reduce poverty.

Indicator: Growth of agricultural production %

extension. 4.2 Yields increased (ADB):

- irrigated rice from 1 ton/ha in 2009 to 1.5 ton/ha in 2011

- upland rice from 0.7 ton/ha in 2009 to 1.2 ton/ha in 2011

- maize from 1 ton/ha in 2009 to 1.5 ton/ha in 2011

- cassava from 5 ton/ha in 2009 to 6.5 ton/ha in 2011 No data

4.3 Metric tons of cocoa sites increased from 3,000 in 2007 to 4,000 tons by 2010 (WB) No data

constructed/rehabilitated (WB)

Reduced import tax on rice and tariffs for agricultural inputs (ADB)

Not achieved. No activities yet.

Achieved. Met

(FY09) (ADB)

AFCR component of Budget Support Operation (FY09) (ADB)

Regional Fisheries (FY09)

Smallholder Tree Crop Revitalization Support Project (FY10)

West Africa Agricultural Productivity Program-1C (FY11)

AAA:

IFC sector study on palm oil (FY09)

Policy Note on Pro-Poor Growth (FY09)

DTIS (FY09)

Partners: WFP, EC, US, FAO

Forestry – The forestry sector should become a source of higher incomes for the rural population, ensuring that the benefits are shared equitably, and that adequate environmental and other regulatory safeguards are in place to ensure sustainability.

Forest

Lack of awareness and information and compliance with the law in relation to commercial and other forestry.

Small area allocated for protected area network and a non-comprehensive legal framework to govern wildlife management

Rights and responsibilities of

Forest

4.4 All illegal concessions cancelled and no commercial logging outside of concession framework (WB) Achieved. All illegal concessions cancelled and no commercial logging for export outside of concession framework

Forest

2 community forestry concessions by 2010 (WB)

Community Rights Law approved by 2009 (WB)

Declaration of 3 new Protected Areas by 2010 (WB)

Achieved. 10 economic development sites established

Achieved. Law approved.

Partially achieved. One Protected Area declared.

Ongoing Projects:

Forestry Sector Management Project

(TFLIB – FY07)

EGIRP (FY08)

GEF-Sapo (FY05)

GEF-COPAN (Consolidation of Protected Areas Network) (FY10)

21




CAS Milestones



Indicator: Volume of timber products produced increase from 0 to 1327 000 cubic meters by FY10/11

communities with respect to forests are lacking.

Calculation of the carbon storage for Liberia by 2009 (WB)

Achieved. Done in 2009 by Conservation International

AAA:


DTIS (FY09)

Pipeline Projects:

GEF-EXPAN (Expansion of the Protected Areas Network) (FY10)

Mining - To rapidly expand mining as an engine of economic growth and social development, to ensure that the benefits from mining activities are widely shared, to diversify the mining sector into new and downstream activities, and to improve support to local miners.

Indicator: Volume of iron ore produced increase from 0 to 3 million tons by 2011

Mining

Lack of consistent, fair and enforceable mineral agreements, and high transaction costs.

Low efficiency in recovery of minerals, and poor environmental and social practices.

Lack of adequate logistics and human resources in the Ministry of Lands, Mines and Energy

Mining

4.5 Achieve EITI compliant status by 2011 (WB and ADB) Achieved. Liberia EITI compliant in 2009

Mining

Large-scale exploration and mining licenses issued through/ recorded in mining cadastre system (WB)

Transparent and internationally competitive mineral asset tendering procedures are consistently applied to all tendered out mineral concessions (WB)

At least 2 reports of payments to and revenues received by the Government for mining and minerals are published (WB)

Adopt environmental and social management framework for minerals sector compliant with international good practices (WB)

Achieved.All new licenses (all types) are issued through MCMS.

Achieved.Standard mining development agreements and bidding documents mining tenders and new mining agreements.

Achieved.Two reports published on revenues of the mining sector (as well as forestry, oil and agriculture sectors)

Not achieved.Update of environmental/ social frameworks for mining delayed.

Ongoing Projects:

EGIRP (FY08)

EITI Secretariat Support (WB TF and ADB TF)

Pipeline Projects:

Regional Mining

COCPO TA

Potential ADB iron mining private sector window project

AAA:

Mining Sector Review (FY09)


DTIS (FY09)

22




CAS Milestones



Land and Environmental Policy - To develop a comprehensive national land tenure and land use system that will provide equitable access to land and security of tenure ….

Land

Inequities in access and utilization of land.

Polices to promote investment and development are nonexistent or inadequate.

Taxation and zoning rules are inadequate and/or outdated

Land

Policy framework for land tenure reform adopted (WB, ADB)

Not achieved. (WB, ADB) Land framework not yet adopted by GOL

Ongoing Projects:

ADB Land Reform Commission (TF FY07)

Pipeline projects:

Land tenure support project (SPF)

Land Tenure Study (FY09)


DTIS (FY09)

Private Sector Investment - Create a strong enabling environment for private sector investment and exports in non-traditional activities.

Indicator: Number of new registered businesses increase from 1047 in 2007 to 1622 in 2011

Administrative and regulatory barriers severely limit the ability of businesses, especially SMEs, to operate effectively and efficiently.

Outdated provisions of the investment code create obstacles to domestic and foreign investment.

Majority of payments are made in cash, which undermines security and flexibility of finances and credit

Financing for productive investments for the

5. Improved business and investment climate

5.1 3-4 reforms related to Doing Business indicators per year14 (IFC) Not achieved. 2 reforms per year

5.2 Increased access to micro-credit for micro-enterprises (IFC,ADB) Achieved. 5,090 micro loans provided by Access Bank Liberia as of 09/2010

Creation of Liberian Better Business Forum (LBBF) with functioning and operational Secretariat to facilitate Public Private Dialogue (IFC)

Creation of at least one commercial microfinance bank (IFC)

Identification of barriers to business formalization (IFC)

Redrafting Investment Code (IFC)

Modern business registry developed (IFC)

2 Business Reform Committee (BRC) and Liberian Better

Achieved. LBBF officially launched in 2007

Achieved.Access Bank, Liberia opened first branch in Jan 2009 and has five branches now.

Achieved. Barriers identified and led to business registry.

Achieved. Investment code passed by Legislature in Apr 2010

Achieved. Launch of business registry in Jan 2011

Achieved.46 investment climate improvements and 8 Doing

Ongoing Projects:

IFC – Business Registry with support from the Investment Climate Facility for Africa

IFC Global Trade Finance Program

IFC CASA Advisory Program

WBG Doing Business

14 Will not necessarily translate into an increase in ranking as countries are ranked relative to other country’s performance.

23




CAS Milestones



Financial Sector -

To promote a stable, sound and market-based financial system that supports efficient mobilization and allocation of resources to foster sustainable economic growth and poverty reduction

Indicator: Banking system deposits/GDP increase from 21.4% to 30% in 2011

Non-performing loans decrease from 31% to 15% (by 2011) of total assets of the banking system

poor and for MSMEs is limited

High volume of non-performing loans

Poor integrity, weak internal controls and long delays in customs clearance result in poor investment climate, revenue leakage

Business Forum (LBBF) reforms enacted (IFC)

Access Bank Liberia manages 20,000 accounts by 2011 (IFC, ADB)

Functioning one-stop shop service for customs facility (ADB)

Business reforms implemented by BRC and LBBF

Achieved. > 28,000 accounts in Nov 2010

Achieved. One-stop shop service for customs functioning since early 2010

Reform Program

ADB Access Bank Liberia Project (FY08)

IFC Access Bank Liberia Project (FY09)

Pipeline projects:

Pro-Poor Growth (FY10)

IFC SME Ventures

Budget support operation (FY09) (ADB)

Potential ADB private sector window LBDI Project (FY10)

WB DPO (FY09-11

Labor and Employment - Promote productive employment that will reduce poverty, ensure peace and stability, and enhance the overall well-being of the Liberian population

Indicators:

Employment rate (TBD)

Employment

Current labor administration programs have limited impact and lack coordination.

Unequal and limited opportunities for women, youth and persons with disabilities

Inadequate and inappropriate skills and knowledge in the labor force

6. Increased access to social protection and social services in the face of shocks

Employment generation

6.1 680,000 person days (WB) and 453,800 person days (ADB) generated through labor intensive works. Partially achieved. 125,00 person-days created Fishtown-Harper Road

6.2 More than 2,500 direct and indirect permanent jobs


Cash for work program operational with >17,000 vulnerable households benefiting by 2010 (WB)

1000 adolescent girls in the Monrovia area have received training relevant for business employment by 2010 (WB).

50% of road maintenance contracts use LB methods supervised by the

Achieved. Cash-for-work program operational and > 17,000 vulnerable households benefitting.

Achieved. 1,250 adolescent girls in the Monrovia area have received training relevant for business employment

Not achieved. 30 % achieved.

Ongoing Projects:

Community Empowerment Project II (FY07 + FY08))

Health System Reconstruction (FY07)

AfDB Labor-based Public Works Program

24




CAS Milestones



Wage employment in the non-agricultural sector (TBD)

Agriculture and Food Security - Revitalize the food and agricultural sector to contribute to shared, inclusive and sustainable economic growth and development; provide food security and nutrition; increase employment and income and measurably reduce poverty.

Food Security

High levels of food insecurity and child malnutrition impede socioeconomic development and poverty reduction.

created by 2010 (ADB) No data.

Food security

6.3. 62,000 pre-school and primary school children from vulnerable households in 3 targeted districts receiving meals on a daily basis at school in 2008/9 (WB) Achieved

MPW (ADB)

Food security

School-feeding program operational in five counties in South East Liberia for the school year 2008/09 (WB)

Social Services

25 targeted clinics with a minimum set of equipment by 2011 (WB)

20 schools and health facilities rehabilitated by 2010 (ADB)

90% of the at least 80 sub-projects undertaken under CEP II reflect beneficiary priorities (WB)

Achieved. School-feeding program operation in five counties in SE Liberia 2008/09

Achieved. Equipment procured and distributed.

Not achieved.10 schools and 5 health facilities rehabilitated.

Achieved. 70 % (56 sub-projects) completed

EIPSC/TSF


Food Support for Vulnerable Women and Children (FY08)

Pipeline Projects:

Economic empowerment of adolescent girls (FY09)

ADB Agriculture Sector Rehabilitation (FY09)

25

Annex 1b: CAS Results Matrix – FY-11-12

Selected Liberia PRSP objectives

& indicators15



CAS Milestones


CAS Strategic Theme 1 – Rebuilding of Core State Functions and Institutions (aligned with PRSP Pillar III)

Create a new framework for PFM

Improve PFM using an integrated financial management system

Improve revenue collection by implementing tax administration reforms and automation

(No indicators presented in the PRSP)

Fragmented and incomplete legislation, unclear rules and lack of coordination create opportunities for abuse and corruption

The accounting system is handicapped by a single-entry system, weak purchase order and accounts payable systems and weak Payroll control

Outdated laws, overlapping procedures, weak organizational structures and limited automation have resulted in inefficient revenue administration

Weak procurement legal framework and practices lead to inefficiencies in the use of public funds

1. Improved efficiency of budget preparation and execution and enhanced revenue administration

Legal Framework

1.1 A legal framework for PFM exists that forms the foundation for budget management and accountability for public finances.

Budget Credibility

1.2 Aggregate expenditure out-turns compared to the original approved budget for five ministries16 decrease from -25 % in 20109/10 to -12 % in 2011/12 (WB)


1.3 50% of collected revenue captured in the Integrated Tax Administration System (WB)

Public Financial Management

IFMIS core budget and treasury system modules implemented at the MoF for budgeting, budget execution, and financial reporting by 2011/12 (WB).

Monthly Budget Execution reports on the Consolidated Fund published on the website of the MoF within 4 weeks of end of each month with effect from July 2011 (WB).

Complete IPSAS compliant financial statements on the Consolidated Fund for FY10/11 submitted for audit within 3 months of end of FY. (WB)

Procurement monitoring system developed in PPCC (WB)

TIN re-registration for Large taxpayer unit completed.

On-going Projects:

Economic Governance and & Institutional Reform Project (EGIRP) (FY08)

Institutional & Financial Management Information System (IFMIS (FY08)

Senior Executive Services Project (FY08)

Re-engagement and Reform Support III (FY11)

Pipeline Projects:

AAA

Partners: EC, AFDB, IMF, SIDA

Strengthen and enhance the effectiveness and efficiency of public

Public institutions, for the most part, have been bloated, disorganized, weak and

2. Increased professionalization and improved HR management


A system of performance evaluation based on

Ongoing Projects:

15 This is a subset of the Liberia PRSP Objectives taken directly from the final PRSP document.

26


& indicators15



CAS Milestones


institutions and functions

% of population that perceives the Government of Liberia to be performing better than in the previous year

Number of Ministries, Agencies and SOEs/parastatals restructured based on revised, published and adopted mandates

supportive of corrupt practices.

Experienced and qualified professional staff left the civil service because of low salaries

Staff motivation is low Payroll controls are weak

and there is a high number of ghost workers

of the civil service


2.1 All core positions filled by competitive selection


2.2 Full account of Civil Service

Pensioners (WB)

merit is designed and linked to compensation and promotion systems by 2012(WB)

Aggregation of allowances to basic pay implemented (WB)


All employees, both current and retired are registered in the EBIRS, and interface between EBIRS and HRMIS is developed. (WB)

29 Ministries, Departments and Agencies (MDAs) registered in HRMIS (WB)

Personnel Action Notice process is streamlined from the average of 5 months, to 21 days by 2012.(WB)

Senior Executive Service (FY08)

Civil Service Reform Project (LICUS - FY08)

EGIRP (FY08)

Partners: UNDP, EC, USAID, SIDA

CAS Strategic Theme 2 – Rehabilitating Infrastructure (aligned with PRSP Pillar IV)

Transportation - to improve the Liberian transport sector through policy, systems and infrastructure development that create access to reliable, affordable and efficient services

Indicators:

roads rehabilitated or reconstructed by 2011

Vessels clearing in Freeport of Monrovia increased from 28 to

Transport

Liberia’s roads network is in complete deterioration.

Liberia has limited road maintenance workforce.

Poor port facilities, inefficient institutional framework and inadequate port maintenances.

3. Improved access to key infrastructure services

Transport

3.1 20% reduction in travel time between Monrovia – Ganta and Cotton Tree – Buchanan by 2011(WB)

3.2 3.2 Productivity of the Monrovia port increased from 3 moves/hr per crane in 2008 to 8 moves/hr per crane in 2011 (WB)

Transport

Cotton Tree – Buchanan road corridor under Output Based Road Performance Contract (OPRC) by 2010; Monrovia Ganta corridor under OPRC by end 2011. (WB)

Draft legislation on establishment of Road Authority and Road Maintenance Fund by 2012 (WB)

24 kms of Monrovia roads resurfaced (WB)

New Vai Town, and four other bridges (ADB) and 35 minor river crossings built or improved by June,. 2012

600 kms of roads under maintenance 2009-

On-going Projects



Urban and Rural Infrastructure Rehabilitation Project (FY09)

Emergency Monrovia Urban Sanitation Project (FY09)

Pipeline Projects:

Liberia Road Asset Management Project (FY11)

Agriculture Sector Rehabilitation

27


& indicators15



CAS Milestones


32 per month

2011 (WB)

400 kms (WB) of rural feeder roads rehabilitated by June, 2012

70% of the general cargo operations by professional terminal operator by 2010 (WB)

Landlord Port Authority established by 2010 (WB)

Project (FY09)

Partners: LRTF (Norway, EC, Sweden, DFID, Ireland, Germany), ADB

Water and Sanitation - Reduce the water and sanitation-related disease burden in Liberia

Water and Sanitation

Only about 39% of the population has adequate means of human waste collection.

Liberia’s urban infrastructure is destroyed and in disarray and city planning is poor.

Operation of water and sanitation facilities currently unsustainable.


3.3 Number of people with access to municipal solid waste services increases from 0 (2009) to 334,000 (WB)


40% of solid waste disposed of in a sanitary manner annually (compared to 25%) (WB)

Increase in landfill disposal cell volume by 300,000 m3 (WB)

On-going Projects

Emergency Monrovia Urban Sanitation Project (FY09)

Pipeline Projects:

AAA:

Partners: Norway, EC, USAID, JICA

28


& indicators15



CAS Milestones


Energy – Improve access to reliable, sustainable and affordable energy services to Liberians.

Indicators: number of households with access to electricity increased.

Energy

Liberia’s electricity network and institutions had been fully destroyed and since 2006 are only slowly being rebuilt.

Most Liberians are forced to rely on traditional sources of energy services. These include firewood for cooking and candles and kerosene lamps for lighting.

Access to grid-based electricity is limited to Monrovia only. In November 2010 only 0.11% of households had access. While overall electricity demand for Monrovia is estimated at 30-50 MW, in early 2011 only 22.6 MW of power capacity is installed. Due to the lacking distribution network not all capacity installed can be dispatched.

Energy (Monrovia)

3.4 Number of connections to the electricity grid increased from 350 in 2006 to 4000 by 2012 (WB)

3.5 Number of household connection to the electricity grid increased to 1000 by 2012 (WB).

Energy

Distribution network reinforced and extended (300 transformers supplied) by 2012 (WB)

Enhancing options for power generation (First Phase of main generating units overhaul completed) by 2012 (WB)

Enhancing the institutional framework for the provision of rural energy services through fully operationalizing Liberia’s new Rural and Renewable Energy Agency (RREA) by 2012 (WB)

National Assessment of Household Energy Needs/Willingness to Pay Analysis completed by 2011 (WB)

Special Purpose Company for regional transmission operation formed by 2012 (WB)

On-going Projects

Liberia Electricity System Enhancement Project (LESEP) (WB FY11)

Catalyzing New Renewable Energy in Rural Liberia (AFREA Phase 1 FY10, and AFREA Phase 2 FY11)

IFC Program to Implement Public Private Partnership in the Monrovia Power Sector

Pipeline Projects:

Côte d'Ivoire, Sierra Leone, Liberia, and Guinea Power System Re-development Project (West African Power Pool APL4 (Phase 1) - (WB FY12)

Lighting Lives in Liberia: Towards Eliminating Fuel-based Lighting (GEF FY12)

AAA:

National Assessment of Household Energy Needs/Willingness to Pay Analysis (FY11)

Liberia Support to Electricity Sector Reform (PPIAF FY11)

Partners: Norway, EC, US, JICA

29


& indicators15



CAS Milestones


Education

improve access to and the quality of relevant education at all levels, emphasizing the availability of Universal Primary Education and recognizing the needs of the disadvantaged, especially girls

Increasing demand for quality and relevant education

Weak capacity for management and governance

An outdated curriculum and inadequate textbooks, chairs, desks, and school supplies

Insufficient school access that limits the ability of every child, including girls and persons with disabilities education

Basic Education

Basic Education

Textbook procurement for Grades 5-9 in at least four core subjects: Contract awarded to publisher and 20 draft manuscripts reviewed

Construction initiated for 164 classrooms in early childhood development and basic education

On-going Projects

Education For All Fast Track Initiative Catalytic Fund (FY11)

Pipeline Projects:

AAA: Post-Basic Education Study

Partners: UNICEF, EU, USAID

CAS Strategic Theme 3 – Facilitating Pro-poor Growth (aligned with PRSP Pillar II)

Agriculture and Food Security - Revitalize the food and agricultural sector to contribute to shared, inclusive and sustainable economic growth and development; provide food security and nutrition; increase employment and income; and measurably reduce poverty.

Indicator: Growth of agricultural production %

Growth of net economic benefits from the fisheries %

Agricultural supply chains have collapsed due to fragmented markets, weak rural demand, no value addition, and few incentives for cash crop production.

Agricultural institutions remain largely ineffective at delivering services such as regulation, policy and planning, and research and extension.

Fish resources are essentially open access, in a management vacuum, whose use is uncontrolled and often illegal

The Governance regime and the infrastructure do not exist to support local processing of fish caught in Liberia’s waters.

Improved agriculture and natural resources management in a way that generates pro-poor growth

Agriculture

4.1 Yields of rice increased from 700 kg/ha to at least 1,000 kg/ha/year among beneficiary farmers by 2016 (WB)

4.2 Number of industrial vessels observed fishing without a license reduced by 25%

Agriculture

Number of markets in targeted areas where seed rice and cassava cuttings are available has increased from 3 in 2007 to 7 in 2013 (WB)

Local seed multiplication facility established and produces 1000 mt of certified seed (WB)

Program Management Unit within the Ministry of Agriculture established”

At least 3 markets constructed/rehabilitated by 2013 (WB)

A new Fisheries Monitoring Center is established to coordinate fisheries surveillance activities, in 2012 (WB)

Total days of sea patrols per year to monitor coastal fisheries is increased from 0 to 50 by 2012

On-going Projects


Community Empowerment II (FY07 + AF FY08)

WA Agriculture Productivity Program (FY11)

Agriculture Sector Rehabilitation Project (FY09) (ADB)


Pipeline Projects:

AFCR component of Budget Support Operation (FY09) (ADB)


Smallholder Tree Crop Revitalization Support Project

AAA:

30


& indicators15



CAS Milestones


IFC sector study on palm oil (FY09)


DTIS (FY09)

Partners: WFP, EC, US, FAO, IFAD, AfDB, SIDA

Mining - To rapidly expand mining as an engine of economic growth and social development, to ensure that the benefits from mining activities are widely shared, to diversify the mining sector into new and downstream activities, and to improve support to local miners.

Indicator: Volume of iron ore produced increase from 0 to 3 million tons by 2011

Mining

Lack of consistent, fair and enforceable mineral agreements, and high transaction costs.

Low efficiency in recovery of minerals, and poor environmental and social practices.

Lack of adequate logistics and human resources in the Ministry of Lands, Mines and Energy

Mining

4.1 All industrial scale mining operations inspected twice a year by Ministry of Lands, Mines and Energy (WB)

4.2 All industrial scale mine production subjected to technical audit at least once a year by MLME and BOC (WB)

Mining

Update Model Mineral Development Agreement and consistently apply it to all large-scale mining projects by 2011

EITI compliant status maintained since 2009 and reconciliation reports prepared and disclosed annually (WB)

Mining Cadastre System developed and fully in use for issuance of all new licenses (WB)

Ongoing Projects:

EGIRP (FY08)

EI-TAF Grant (FY10)

Additional financing for EGIRP (FY11)

Pipeline Projects:

AAA:

Land and Environmental Policy - To develop a comprehensive national land tenure and land use system that will provide equitable access to land and security of tenure.

Land

Inequities in access and utilization of land.

Polices to promote investment and development are nonexistent or inadequate.

Taxation and zoning rules are inadequate and/or outdated

Land

Staff trained in the relevant skills in departments that are responsible for these tasks (WB)

Land policy reform proposal finalized and presented to cabinet. (WB)

Ongoing Projects:

Re-engagement and Reform Support Program III

Land Reform Project

Pipeline projects:

AAA:

Partners: MCC, UN Habitat, USAID, UNMIL

Private Sector Investment - Create a strong enabling environment for private sector

Administrative and regulatory barriers severely limit the ability of

5. Improved business and Creation of Liberian Better Business Forum (LBBF) with functioning and operational Secretariat to facilitate Public Private

Ongoing Projects:

31


& indicators15



CAS Milestones


investment and exports in non-traditional activities.

Indicator: Number of new registered businesses increase from 1047 in 2007 to 1622 in 2011

Financial Sector -

To promote a stable, sound and market-based financial system that supports efficient mobilization and allocation of resources to foster sustainable economic growth and poverty reduction

Indicator: Banking system deposits/GDP increase from 21.4% to 30% in 2011

businesses, especially SMEs, to operate effectively and efficiently.

Outdated provisions of the investment code create obstacles to domestic and foreign investment.

Majority of payments are made in cash, which undermines security and flexibility of finances and credit

Financing for productive investments for the poor and for MSMEs is limited

High volume of non-performing loans

Poor integrity, weak internal controls and long delays in customs clearance result in poor investment climate, revenue leakage

investment climate

5.1 3-4 reforms related to Doing Business indicators per year17 (IFC)

5.2 Increased access to micro-credit

for micro-enterprises (IFC,ADB)

Dialogue (IFC)

Creation of at least one commercial microfinance bank (IFC)

Identification of barriers to business formalization (IFC)

Redrafting Investment Code (IFC)

Modern business registry developed (IFC)

2 Business Reform Committee (BRC) and Liberian Better Business Forum

(LBBF) reforms enacted (IFC)

Access Bank Liberia manages 20,000 accounts by 2011 (IFC, ADB)

Functioning one-stop shop service for customs facility (ADB)

Pipeline projects:

AAA:

Partners:

Labor and Employment - Promote productive employment that will reduce poverty, ensure peace and stability, and enhance the overall well-being of the Liberian population

Agriculture and Food Security - Revitalize the food and agricultural sector to contribute to shared, inclusive and sustainable economic growth and development; provide food security and

Employment

Current labor administration programs have limited impact and lack coordination.

Unequal and limited opportunities for women, youth and persons with disabilities

Inadequate and inappropriate skills and knowledge in the labor force

6. Increased access to social protection and social services in the face of shocks


6.1 1,800,000 person days from YES and 680,000 Fishtown-Harper Road (WB) generated through labor intensive works

6.2 45,000 beneficiaries of Community Works Program (WB)


Cash for work program operational with >17,000 vulnerable households benefiting by 2010 (WB)

2,500 adolescent girls in the Greater Monrovia and Kakata areas have received job skills and business development training relevant for gainful employment by 2012 (WB)

Social Services

90% of the at least 80 sub-projects undertaken under CEP II reflect beneficiary priorities

Ongoing Projects:

Community Empowerment Project II (FY07 + FY08))

Health System Reconstruction (FY07)


Economic Empowerment of Adolescent Girls and Young Women (EPAG) Project Youth, Employment, Skills Project (FY10)

Global Food Price Crisis Response

17 Will not necessarily translate into an increase in ranking as countries are ranked relative to other country’s performance.

32


& indicators15



CAS Milestones


nutrition; increase employment and income and measurably reduce poverty.

6.3 4,500 persons participating and completing skills development programs and receiving certification (WB)

(WB)

75 % of public works schemes completed with satisfactory quality (WB)

(FY10)

Pipeline Projects:

AAA

33

Annex 2: Progress on the Millennium Development Goals

Millennium Development Goals Base 2007 2008 2009 Target(2015) Goal 1: halve the rates for extreme poverty and malnutrition

Poverty (% below poverty line) 55.1 63.8 27.5 (% in extreme poverty) N/A 47.9 Prevalence of malnutrition (% of children under 5) 14.8 18.8 20.4 7.4 Goal 2: ensure that children are able to complete primary schooling

Female literacy rate (%) N/A 61.0 Net primary enrollment N/A 37.0 31.0 58.0 100.0 Goal 3: eliminate gender disparity in education and empower women

Ratio of girls to boys in primary education (%) N/A 89.5 100.0 Goal 4: reduce under-5 mortality by two-thirds Under-five mortality (per 1,000) 194.0 133.0 112.0 64.0 Goal 5: reduce maternal mortality by three-fourths

Maternal Mortality ratio (per 100,000 live births 578.0 994.0 990.0 990.0 145.0 Goal 6: halt and begin to reverse the spread of HIV/AIDS and other major diseases

Prevalence of HIV (% of population 15-49) 1.5 1.5 1.5 0.75 Goal 7: halve the proportion of people without sustainable access to basic needs

Access to safe water (% of population) 57.0 50.0 64.0 68.0 78.0 Access to improved sanitation (% of population) 40.0 40.0 32.0 70.0

Goal 8: develop a global partnership for development

Mobile phone subscribers (per 100) 0.0 19.3 34.0

Internet users (per 100 people) 15.0 21.0

Sources: Development Economics, Development Data Group (DECDG). Government of Liberia.

34

Annex 3: Main Funding Sources (FY09 – FY11)

Main Theme PRS Project IDA ($m)Reg. IDA

($m)Additional Allocation LRTF TFs

Rehabilitation of Core State Functions and Institutions II & III

Reengagement and Reform Support II (FY09) 4

Reengagement and Reform Support III (FY11) 5 6

Econ Governance and Institutional Reform Project (EGIRP) AF(FY11) 7

IFMIS (FY09) 3.7

COMMERCIAL DEBT REDUCTION PROGRAM FOR LIBERIA(FY09) 32.5

COMMERCIAL DEBT REDUCTION PROGRAM FOR LIBERIA(FY09) 6.5

Land Sector Reforms: Rehabilitation and Reform of Land Rights Registration Project 2.9

Liberia Extractive Industries Technical Advisory Facility Project 1

Subtotal 16 0 6 46.6

Rebuilding Infrastructure to Jump Start Growth IV

Emergency Infrastructure Rehabilitation Project (EIRP) AF (FY09) 8.2

Urban and Rural Infrastructure Rehabilitation Program (URIRP) (FY09) (FY10) 44 20 9.2

Agriculture and Infrastructure Development Project (AIDP) AF (FY09) (Note 5) 16 13.1

Liberia Road Asset Management Program (LIBRAMP) (FY11) 67.7 141.1

Liberia Electricity System Enhanced Project (LESEP) (FY11) 10

West Africa Regional Connectivity Program (IT-ACE) 8.5 17

Emergency Monrovia Urban Sanitation (EMUS) (FY09) + AF(FY11) 4 18.4

AFREA - Liberia Rural Energy (Phase 1) 1.4

Subtotal 158.4 17 168.7 14.5

Facilitating Pro Poor Growth II&IV

West Africa Regional Fisheries Program (FY10) 2.9 5.8

Youth Employment and Skills Project (YES) (FY10) 16

West Africa Agriculture Productivity Program (WAAPP) (FY11) 2 4

CO-FINANCING OF THE LIBERIA COMMUNITY EMPOWERMENT PROJECT II 10.8

Liberia - Basic Education Project 40

Subtotal 4.9 50.8

Grand Total 179.3 26.8 42 168.7 111.9 528.7

Note (1) Note (2) Note (3) Note (4)

35

Annex 4: Changes in the Indicative Lending Program for the FY09-11 CAS (US$ million)

Original Planned IDA Deliverables in CAS (US$139 million) Status Revised IDA Deliverables - CAS Progress Report (US$312.7 million)

FY09 (US$48 m) FY09 (US$72.2 m)

Reengagement and Reform Support II US$4 m LR-Urban and Rural Infrastructure Rehabilitation Program (URIRP) US$44 m

Delivered Delivered

Reengagement and Reform Support II US$4 m LR-Urban and Rural Infrastructure Rehabilitation Program (URIRP) S$44m

Additional lending not in CAS Emergency Infrastructure Rehabilitation Project (EIRP) Additional Financing US$8.2 m Agriculture and Infrastructure Development Project (AIDP) Additional Financing US$16 m

FY10 (US$2.9 m) FY10 (US$44.7 m)

West Africa Regional Fisheries Program US$2.9 m

Delivered

West Africa Regional Fisheries Program US$8.7 m

Additional lending not in CAS LR-Urban and Rural Infrastructure Rehabilitation Program (URIRP) - Bockay Town – Buchannan Additional Financing (CRW) US$20 m Youth, Employment and Skills Project (YES) (CRW and African Growth Catalytic Fund*) US$16 m

FY11 (US$89.8 m) FY11 (US$ 131.2m)

Re-Engagement and Reform Support Program III US$11 m West Africa Agriculture Productivity Project (phase 1c) US$ 2 Liberia Road Asset Management Program (LIBRAMP) US$58.3

LIBERIA Electricity System Enhancement Project (LESEP)US$10mWest Africa Regional Connectivity Program (IT –ACE) US$8.5 m

Small Holder Tree Crop Revitalization US$ 10 m West Africa Power Pool – CSLG (APL4, Phase 1) US$ 8.6m

Delivered Delivered Delivery FYQ3 Delivered Delivered

Slip to FY12Slip to FY12

Re-Engagement and Reform Support Program III US$11 m West Africa Agriculture Productivity Project (phase 1c) US$ 6m Liberia Road Asset Management Program (LIBRAMP) US$67.7m LIBERIA Electricity System Enhancement Project (LESEP) US$ 10 m West Africa Regional Connectivity Program (IT –ACE) US$25.5m

Additional lending not in CAS Emergency Monrovia Urban Sanitation (EMUS) Additional Financing US$4m Economic Governance and Institutional Reform Project (EGIRP) Additional Financing US$7m

36

Annex 5: Status of Non-Lending Activities

Table 3. CAS Non-Lending Activities

Status Status at Progress Report

FY09 Diagnostic Trade Integration Study Gender Profile (ADB) Water Sector Reform Study (ADB) Oil Palm Sector Study Policy Note on Pro-poor Growth

Delivered Not DeliveredDelivered Not DeliveredSlipped to FY10

Diagnostic Trade Integration Study Water Sector Reform Study (ADB)

FY10 Policy notes (e.g. macro, fiscal decentralization, agriculture, and social protection) Women’s Economic Empowerment (WB) Education Sector Plan Poverty Assessment (WB) Energy and Electricity Strategy (WB) FY10 EITI ++ Scoping Study

Delivered Delivered Delivered Partially Delivered Delivered Slipped to FY11

Policy Note on Pro-poor Growth Women’s Economic Empowerment (WB) Poverty Assessment (WB): Background paper and workshop delivered

FY11 PEFA (WB/ADB) EITI ++ Scoping Study

Slipped to FY12 Not Yet Delivered

Additional PRS Technical Assistance (Macroeconomic Framework for National Vision, Private Sector development, and Infrastructure Prioritization) Policy Notes: Growth Diagnostic, Political Economy and Exclusion in Liberia, Social Protection in Liberia Agro-Industrial Development Policy

FY12 Public Expenditure Review (including PEFA (WB/ADB) Policy Notes PRS Technical Assistance: Water point mapping, Decentralization Second Poverty Reduction Strategy (PRSII) Roads Sector Reform (Maintenance, Roads Fund)

37

Annex 6: Selected Indicators* of Bank Portfolio Performance and Management

As of 3/30/2011

Indicator 2008 2009 2010 2011 Portfolio Assessment Number of Projects Under Implementation a 10 12 11 10 Average Implementation Period (years) b 1.3 1.9 2.9 3.2 Percent of Problem Projects by Number a, c 0.0 8.3 0.0 0.0 Percent of Problem Projects by Amount a, c 0.0 4.2 0.0 0.0 Percent of Projects at Risk by Number a, d 10.0 16.7 9.1 0.0 Percent of Projects at Risk by Amount a, d 35.6 6.7 2.3 0.0 Disbursement Ratio (%) e 54.7 47.3 25.4 25.5 Portfolio Management CPPR during the year (yes/no) yes yes Supervision Resources (total US$) Average Supervision (US$/project)

Memorandum Item Since FY 80 Last Five FYs Proj Eval by OED by Number 26 1 Proj Eval by OED by Amt (US$ millions) 600.4 405.2 % of OED Projects Rated U or HU by Number 50.0 0.0 % of OED Projects Rated U or HU by Amt 15.4 0.0

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. 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.

38

Annex 7: IDA Program Summary

As of 5/31/2011

Proposed IBRD/IDA Base-Case Lending Program a

Fiscal year

Proj ID US$(M) Strategic Rewards b (H/M/L) Implementation b Risks (H/M/L)

2011 Electricity System Enhancement (LESEP)

10.0 H M

DPO 11.0 M M LIBRAMP 67.7 H M Solid Waste - Additional Financing 4.0 H M

EGIRP – Additional Financing 7.0 M M

ACE 8.5 H M

Regional Agriculture Project 2.0 M M

Total FY11

110.2

2012 LR-RRSP4 Budget Support 5.0 M M Small Holder Tree Crop Project 15.0 H M

Africa Mineral Governance Project – APL1

1.0 M M

WAPP APL4 (Phase 1) CSLG 8.6 H M

Transport 35.0 H M

Total FY12 64.6

a. This table presents the proposed program for FY 12 and the actual program for FY 11

b. For each project, indicate whether the strategic rewards and implementation risks are expected to be high (H), moderate (M), or low (L)

39

Annex 8: Key Economic & Program Indicators - Changes from Last CAS

Forecast in Last CAS Actual Current CAS Forecast

Economy (CY) 2008a 2009b 2010b 2011b 2008c 2009c 2010a 2011b 2012b 2013b Growth rates (%)

GDP 7.1 4.9 7.5 10.3 7.1 4.6 6.3 8.8 11.7 8.4 Exports 25.0 -57.3 55.9 104.6 22.2 -39.7 34.8 52.5 30.9 49.1 Imports 33.7 -2.2 27.1 13.1 42.2 -20.6 16.8 60.9 11.2 13.8

Inflation (end of period) (%) 9.4 4.0 5.0 5.0 9.4 9.7 4.7 4.6 5.0 5.0

National accounts (% GDP)

Current account balance -40.7 -39.4 -59.9 -49.6 -57.3 -36.8 -40.4 -59.2 -64.9 -74.9

Public finance (% GDP) Fiscal balance 1.2 -2.3 0.3 -0.9 1.2 -1.6 0.6 -0.5 -3.4 -4.5 Foreign financing 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 3.0 4.0

International reserves (as months of imports) 0.6 2.3 1.9 1.7 1.7 1.7

Program (Bank’s FY) FY08a FY09b FY10b FY11b FY09c FY10c FY__d FY__b FY__b FY__b Lending ($ million) n/a 71.3 25.5 41.2 491.1 111.2 n/a n/a n/a n/a Gross disbursements ($ million) 35.9 30.9 n/a n/a n/a n/a

a. Estimated year b. Projected year c. Actual outcome

40

Annex 9: IFC Investment Operations for Liberia

2008 2009 2010 2011*

Commitments (US$m) Gross 1.01 12.61 3.75 Net** 1.01 12.61 3.75

Net Commitments by Sector (%) EQUITY 8.56 12 GUARANTEE 100 12.14 8 LOAN 79.3 QUASI LOAN 80 Total 100 100 100 0

Net Commitments by Investment Instrument (%) Equity 8.56 12 Guarantee 100 12.14 8 Loan 79.3 Quasi loan 80 Total 100 100 100 0

* As of March 31, 2011 ** IFC's Own Account only

41

-

Annex 10: Liberia Committed and Disbursed Outstanding Investment Portfolio

As of 2/28/2011 (In USD Millions)

Committed Disbursed Outstanding

FY Approval Company Loan Equity **Quasi Equity

*GT/RM Partici pant Loan Equity **Quasi Equity

*GT/RM Partici pant

10/11/2008 Access liberia 0 2 0 0 0 0 2 0 0 0 2010 Ecobank liberia 0 0 3 0 0 0 0 0 0 0 2009 Salala rubber 10 0 0 0 0 6 0 0 0 0

Total Portfolio: 10 2 3 0 0 6 2 0 0 0

* Denotes Guarantee and Risk Management Products.

** Quasi Equity includes both loan and equity types.

42

Annex 11: Operations Portfolio - IBRD/IDA and Grants as of 3/28/2011

IBRD/IDA * Total Disbursed (Active)

116.52

of which has been repaid

0.00

Total Disbursed (Closed)

426.16


207.07

Total Disbursed (Active + Closed)

542.68


207.07

Total Undisbursed (Active)

94.12

Total Undisbursed (Closed)

0.00

Total Undisbursed (Active + Closed)

94.12

Active Projects Difference Between Last PSR Expected and Actual

Supervision Rating Original Amount in US$ Millions

Disbursements a/

Project ID Project Name Development Objectives

Implementation Progress

Fiscal Year

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

P120660 LIBERIA Electricity System Enhancement

S S 2011 10 9.951955

P104716 LR-Agric. & Infra. Dev. Proj. ERL (FY08)

S S 2008 53 18.57026 0.0882817 6.492247

P098266 LR-Com Empowerment ERL (FY05)

S S 2005 6

P104287 LR-Development Forestry Sector (FY07)

MS MS 2007 2.8 0.00015114 0.129782 -0.670067

P107248 LR-Econ. Gov. & Institut. Ref. TAL (FY08

S S 2008 11 3.016795 3.0611869

P100160 LR-Emergency Infrastructure ERL (FY06)

S MS 2006 54.7 0.872127 -26.60394 -5.13583

P109195 LR-Emergency Senior Executive Svce (FY08

S S 2008 2.3 0.153188 0.153188

P105282 LR-Health Systems Reconstr.

MS S 2007 8.5 1.668678 1.3381038 0.445813

P113099 LR-Urban and Rural Infra. Rehab. Project

S S 2009 64 54.48115 19.565719

P121686 LR: Youth, Employment, Skills Project

S MS 2010 6 5.559453 0.9608682

Overall Result 207.2 11.1 0.00015114 94.40338 -2.106662 1.802231

43

Annex 12: Donor Partnership

Sector/Thematic Areas

Partner Peace & Security

Financial sector

Food & Agriculture Forestry

Labor & Employ.

Gov. & Rule of

Law Educati

on Energy Health Multi Sector

Transport

Road & Bridges

WATSAN

AfDB X X X

EU X X X X X X X X X

Denmark X

DFID/UK X X

Foundations X

Germany X X X X

Ireland X

Norway X X X X X SIDA/Sweden X X United States X X X X X X X X

World Bank X X X X X X X X X X X

UN System: X X X X X X

UNICEF X X X X

UNPFA X X

WHO X

WFP X X X X

44

Annex 13: Liberia At A Glance

Liberia at a glance 2/25/11

Sub-Key D evelo pment Indicato rs Saharan Low

Liberia Africa income(2009)

Population, mid-year (millions) 4.0 819 828Surface area (thousand sq. km) 111 24,242 17,838Population growth (%) 4.3 2.5 2.2Urban population (% of total population) 61 36 28

GNI (Atlas method, US$ billions) 0.7 897 389GNI per capita (Atlas method, US$) 160 1,095 470GNI per capita (PPP, international $) 290 1,981 1,131

GDP growth (%) 4.6 5.2 6.2GDP per capita growth (%) 0.3 2.7 3.9

(mo st recent est imate, 2003–2008)

Poverty headcount ratio at $1.25 a day (PPP, %) 84 51 ..Poverty headcount ratio at $2.00 a day (PPP, %) 95 73 ..Life expectancy at birth (years) 58 52 57Infant mortality (per 1,000 live births) 80 83 77Child malnutrition (% of children under 5) 20 25 28

Adult literacy, male (% of ages 15 and o lder) 63 72 73Adult literacy, female (% of ages 15 and o lder) 53 54 59Gross primary enrollment, male (% of age group) 96 105 107Gross primary enrollment, female (% of age group) 86 95 100

Access to an improved water source (% of population) 68 60 64Access to improved sanitation facilities (% of population) 17 31 35

N et A id F lo ws 1980 1990 2000 2009 a

(US$ millions)Net ODA and official aid 97 114 67 1,250Top 3 donors (in 2007): Germany 11 7 -1 317 United States 32 19 16 276 European Commission 4 8 13 50

Aid (% of GNI) 10.4 10.2 17.4 185.8Aid per capita (US$) 51 52 24 330

Lo ng-T erm Eco no mic T rends

Consumer prices (annual % change) 14.7 9.1 12.1 11.7GDP implicit deflator (annual % change) 9.1 -0.2 -1.3 7.4

Exchange rate (annual average, local per US$) 1.0 1.0 41.0 68.3Terms of trade index (2000 = 100) .. .. .. ..

1980–90 1990–2000 2000–09

Population, mid-year (millions) 1.9 2.2 2.8 4.0 1.3 2.7 3.7GDP (US$ millions) 954 384 561 876 -7.0 4.1 0.0

Agriculture 35.9 54.4 72.0 61.3 .. .. ..Industry 28.1 16.8 11.6 16.8 .. .. .. M anufacturing 7.7 .. 9.5 12.7 .. .. ..Services 36.0 28.8 16.4 21.9 .. .. ..

Household final consumption expenditure 66.1 .. 89.1 202.3 .. .. ..General gov't final consumption expenditure 19.1 .. 14.4 19.3 .. .. ..Gross capital formation .. .. 4.9 20.0 .. .. ..

Exports o f goods and services 64.3 .. 21.5 31.1 .. .. ..Imports o f goods and services 64.4 .. 26.0 172.6 .. .. ..Gross savings .. .. .. -126.8

Note: Figures in italics are for years other than those specified. 2009 data are preliminary. .. indicates data are not available.a. Aid data are for 2008.

Development Economics, Development Data Group (DECDG).

(average annual growth %)

(% of GDP)

10 5 0 5 10

0-4

15-19

30-34

45-49

60-64

75-79

percent of total population

Age distribution, 2009

Male Female

0

50

100

150

200

250

300

1990 1995 2000 2008

Liberia Sub-Saharan Africa

Under-5 mortality rate (per 1,000)

-100

-50

0

50

100

150

95 05

GDP GDP per capita

Growth of GDP and GDP per capita (%)

45

Liberia

B alance o f P ayments and T rade 2000 2009

(US$ millions)Total merchandise exports (fob) 120 260Total merchandise imports (cif) 182 667Net trade in goods and services -25 -1,183

Current account balance -131 -220 as a % of GDP -23.3 -26.1

Workers' remittances and compensation o f employees (receipts) .. 54

Reserves, including gold 2 85

C entral Go vernment F inance

(% of GDP)Current revenue (including grants) 12.8 27.5

Tax revenue .. 20.8Current expenditure 7.5 30.2

T echno lo gy and Infrastructure 2000 2008Overall surplus/deficit -0.7 -6.4

Paved roads (% of to tal) 6.2 ..Highest marginal tax rate (%) Fixed line and mobile phone Individual .. .. subscribers (per 100 people) 0 19

Corporate .. .. High technology exports (% of manufactured exports) .. ..

External D ebt and R eso urce F lo ws

Enviro nment(US$ millions)Total debt outstanding and disbursed 2,809 1,660 Agricultural land (% of land area) 27 27Total debt service 1 64 Forest area (% of land area) 35.9 31.5Debt relief (HIPC, M DRI) 2,988 .. Terrestrial pro tected areas (% of surface area) .. 15.0

Total debt (% of GDP) 500.8 189.4 Freshwater resources per capita (cu. meters) 65,427 52,723Total debt service (% of exports) 0.5 5,370.2 Freshwater withdrawal (billion cubic meters) 0.1 ..

Foreign direct investment (net inflows) 21 378 CO2 emissions per capita (mt) 0.15 0.19Portfo lio equity (net inflows) 0 0

GDP per unit o f energy use (2005 PPP $ per kg of o il equivalent) .. ..

Energy use per capita (kg of o il equivalent) .. ..

Wo rld B ank Gro up po rt fo lio 2000 2009

(US$ millions)

IBRD Total debt outstanding and disbursed 130 0 Disbursements 0 0 Principal repayments 0 0 Interest payments 0 0

IDA Total debt outstanding and disbursed 100 69 Disbursements 0 0

P rivate Secto r D evelo pment 2000 2009 Total debt service 0 4

Time required to start a business (days) – 20 IFC (fiscal year)Cost to start a business (% of GNI per capita) – 52.9 Total disbursed and outstanding portfo lio 4 4Time required to register property (days) – 50 o f which IFC own account 4 4

Disbursements for IFC own account 4 4Ranked as a major constraint to business 2000 2009 Portfo lio sales, prepayments and (% of managers surveyed who agreed) repayments fo r IFC own account 0 0 n.a. .. .. n.a. .. .. M IGA

Gross exposure – –Stock market capitalization (% of GDP) .. .. New guarantees – –Bank capital to asset ratio (%) .. ..

Note: Figures in italics are for years o ther than those specified. 2009 data are preliminary. 2/25/11.. indicates data are not available. – indicates observation is not applicable.


0 25 50 75 100

Control of corruption

Rule of law

Regulatory quality

Political stability

Voice and accountability

Country's percentile rank (0-100)higher values imply better ratings

2009

2000

Governance indicators, 2000 and 2009

Source: Kaufmann-Kraay-Mastruzzi, World Bank

IBRD, 0IDA, 69

IMF, 891

Other multi-lateral, 85

Bilateral, 502

Private, 21

Short-term, 92

Composition of total external debt, 2009

US$ millions

46

Millennium Development Goals Liberia

With selected targets to achieve between 1990 and 2015(estimate closest to date shown, +/- 2 years)

Go al 1: halve the rates fo r extreme po verty and malnutrit io n 1990 1995 2000 2008

Poverty headcount ratio at $1.25 a day (PPP, % of population) .. .. .. 83.7 Poverty headcount ratio at national poverty line (% of population) .. .. .. .. Share of income or consumption to the poorest qunitile (%) .. .. .. 6.4 Prevalence of malnutrition (% of children under 5) .. .. 22.8 20.4

Go al 2: ensure that children are able to co mplete primary scho o ling

Primary school enro llment (net, %) .. .. 75 .. Primary completion rate (% of relevant age group) .. .. .. 58 Secondary school enro llment (gross, %) .. .. 37 32 Youth literacy rate (% of people ages 15-24) .. .. .. 75

Go al 3: e liminate gender disparity in educat io n and empo wer wo men

Ratio of girls to boys in primary and secondary education (%) .. .. 72 86 Women employed in the nonagricultural sector (% of nonagricultural employment) .. .. 11 .. Proportion of seats held by women in national parliament (%) .. 6 8 13

Go al 4: reduce under-5 mo rtality by two -thirds

Under-5 mortality rate (per 1,000) 247 253 198 119 Infant mortality rate (per 1,000 live births) 165 169 134 85 M easles immunization (proportion of one-year o lds immunized, %) .. .. 63 64

Go al 5: reduce maternal mo rtality by three-fo urths

M aternal mortality ratio (modeled estimate, per 100,000 live births) 1,100 1,400 1,100 990 B irths attended by skilled health staff (% of to tal) .. .. 51 46 Contraceptive prevalence (% of women ages 15-49) .. .. 10 11

Go al 6: halt and begin to reverse the spread o f H IV/ A ID S and o ther majo r diseases

Prevalence of HIV (% of population ages 15-49) 0.4 1.2 1.4 1.7 Incidence of tuberculosis (per 100,000 people) 200 220 240 280 Tuberculosis case detection rate (%, all forms) 47 33 22 46

Go al 7: halve the pro po rt io n o f peo ple witho ut sustainable access to basic needs

Access to an improved water source (% of population) 58 61 65 68 Access to improved sanitation facilities (% of population) 11 13 14 17 Forest area (% of total land area) 42.1 39.0 35.9 31.5 Terrestrial protected areas (% of surface area) .. .. .. 15.0 CO2 emissions (metric tons per capita) 0.2 0.2 0.2 0.2 GDP per unit o f energy use (constant 2005 PPP $ per kg of o il equivalent) .. .. .. ..

Go al 8: develo p a glo bal partnership fo r develo pment

Telephone mainlines (per 100 people) 0.4 0.2 0.2 0.1 M obile phone subscribers (per 100 people) 0.0 0.0 0.1 19.3 Internet users (per 100 people) 0.0 0.0 0.0 0.5 Personal computers (per 100 people) .. .. .. ..

Note: Figures in italics are for years other than those specified. .. indicates data are not available. 2/25/11


Liberia

0

25

50

75

100

2000 2002 2004 2006 2008

Primary net enrollment ratio

Ratio of girls to boys in primary & secondary education

Education indicators (%)

0

10

20

30

2000 2002 2004 2006 2008

Fixed + mobile subscribers

Internet users

ICT indicators (per 100 people)

0

25

50

75

100

1990 1995 2000 2008

Liberia Sub-Saharan Africa

Measles immunization (% of 1-year olds)

S I E R R AS I E R R AL E O N EL E O N E

G U I N E AG U I N E A

C Ô T EC Ô T ED ’ I V O I R ED ’ I V O I R E

Wologiz

i Rang

e W

onogizi

Mts

.

Nimba M

ts.

Mt. WuteveMt. Wuteve(1,380 m)(1,380 m)

L O FAL O FA

B O M IB O M IM A R G I B IM A R G I B I

B O N GB O N GN I M B AN I M B A

G R A N DG R A N DB A S S AB A S S A

R I V E R C E S SR I V E R C E S S G R A N D G E D E HG R A N D G E D E H

S I N O ES I N O E

G R A N DG R A N DK R UK R U

MA RY L A

ND

GRANDGRANDCAPECAPE

MOUNTMOUNT

BoBo

GelahunGelahun

VahunVahun

KolahunKolahun

KlayKlay

TototaTototaZienzuZienzu

PalalaPalala

BotataBotata

YopieYopie

YekepaYekepa

TapetaTapeta

GuataGuata

TradeTradeTownTown

GongleeGonglee

PynePyne

Kola TownKola TownPoabliPoabli

BabuBabu

KopoKopo

TawlokehnTawlokehn

PliboPlibo

NyaakeNyaake

JuazohnJuazohn

PelokehnPelokehn

KahnwiaKahnwiaTawakeTawake

BokoaBokoa

HartfordHartford GaamodebiGaamodebi

SagleipieSagleipie

GloieGloie

TobliTobli

ZorzorZorzor

HarbelHarbel

KakataKakataCareysburgCareysburg

Bong TownBong TownTubmanburgTubmanburg

BopoluBopoluGbarngaGbarnga

ZwedruZwedru

BarclayvilleBarclayville

SenniquellieSenniquellie

VoinjamaVoinjama

G B A R P O L UG B A R P O L U

R I V E R G E ER I V E R G E E

BensonvilleBensonville

Fish TownFish Town

GbalatuahGbalatuah

KarnplayKarnplayGantaGanta

Kongo

Bo

Gelahun

Vahun

Kolahun

Klay

TototaZeansue

Gbalatuah

Palala

Botata

Yopie

Yekepa

Karnplay

Tappita

Guata

TradeTown

Gonglee

Pyne

Kola TownPoabli

Babu

Nana Kru

Kopo

Tawlokehn

Plibo

Nyaake

Juazohn

Pelokehn

KanweakenTawake

Sasstown

Grand Cess

Bokoa

Sehnkwehn

Hartford Gaamodebi

Ganta

Sagleipie

Gloie

Tobli

Zorzor

Harbel

Careysburg

Bong TownTubmanburg

BopoluGbarnga

Buchanan

Cestos City

Greenville

Zwedru

Barclayville

Fish Town

Harper

Senniquellie

Robertsport

Voinjama

Kakata

BensonvilleMONROVIA

L O FA

G B A R P O L U

B O M I

MONTSERRADO

M A R G I B I

B O N GN I M B A

G R A N DB A S S A

R I V E R C E S S G R A N D G E D E H

R I V E R G E ES I N O E

G R A N DK R U

MA RY L A

ND

GRANDCAPE

MOUNT

S I E R R AL E O N E

G U I N E A

C Ô T ED ’ I V O I R E

Dube

Cestos

St. Joh

n

St. Paul

Nia

nda

Via

Loffa

Gbeya

Nuon

ATLANTIC OCEAN

To Buedu

To Irié

To Nzérékoré

To Lola

To Danané

To Toulépleu

To Tabou

To Zimmi

To Kenema

To Pendembu

Wologiz

i Rang

e W

onogizi

Mts

.

Nimba M

ts.

Mt. Wuteve(1,380 m)

11°W 10°W 9°W 8°W

10°W 9°W 8°W

5°N

6°N

7°N

8°N

9°N

4°N

5°N

6°N

7°N

8°N

9°N

LIBERIA

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 6040 80

0 60 Miles4020

100 Kilometers

IBRD 33435R2

JULY 2007

L IBERIASELECTED CITIES AND TOWNS

COUNTY CAPITALS

NATIONAL CAPITAL

RIVERS

MAIN ROADS

RAILROADS

COUNTY BOUNDARIES

INTERNATIONAL BOUNDARIES

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