The World Bank Report No: ISR9158 Implementation Status & Results Cameroon Cameroon - Competitive Value Chains (P112975) Public Disclosure Copy Operation Name: Cameroon - Competitive Value Chains (P112975) Project Stage: Implementation Seq.No: 4 Status: ARCHIVED Archive Date: 24-Feb-2013 Country: Cameroon Approval FY: 2010 Product Line: IBRD/IDA Region: AFRICA Lending Instrument: Specific Investment Loan Implementing Agency(ies): Key Dates Board Approval Date 22-Jun-2010 Original Closing Date 30-Mar-2016 Planned Mid Term Review Date 19-May-2014 Last Archived ISR Date 13-Aug-2012 Effectiveness Date 29-Apr-2011 Revised Closing Date 30-Mar-2016 Actual Mid Term Review Date Project Development Objectives Project Development Objective (from Project Appraisal Document) The Project Development Objective (PDO) is to contribute to the growth of the wood and tourism value chains in Cameroon by improving their competitiveness and the investment climate. Has the Project Development Objective been changed since Board Approval of the Project? Yes No Component(s) Component Name Component Cost 1. Sustainable wood processing 2.20 2. Ecotourism 8.70 3. Cross-cutting actions to support competitiveness and investment 9.20 4. Project coordination 6.00 Reimbursement of Project Preparation Advance and non allocated funds 2.90 Public Disclosure Copy Overall Ratings Previous Rating Current Rating Progress towards achievement of PDO Moderately Satisfactory Unsatisfactory Overall Implementation Progress (IP) Moderately Satisfactory Unsatisfactory Overall Risk Rating High High Implementation Status Overview For this ISR, the rating in unsatisfactory for both the (i) progress towards achievement of PDO and (ii) overall implementation progress. This is due to the fact that the overall implementation progress has continued to fall well behind the pace required for a satisfactory implementation. This has resulted in the aggravation of the disbursement lag, which has Page 1 of 6 The World Bank Report No: ISR9158 now reached 16 months after being at a 7 month disbursement lag in February 2012. From a disbursement stand point, this represents only SDR 3.82 million or 19% of the credit amount. The consistently unsatisfactory implementation progress, since the project became effective in May 2011, has resulted in an unsatisfactory progress towards achieving the PDO. Public Disclosure Copy The day to day supervision and the in depth supervision mission of October 2012, confirmed that the project coordination remains a risk for not only for achieving the project development objectives, but also using the Project’s funds for their intended purposes. Over the last few months, the risks have not reduced. In addition to the 4 violations of the Financing Agreement, which were noted in the last ISR, the ineligible expenditures incurred and violations of procurement guidelines – noted in the last ISR – the project risks remained high. The October 2012 mission confirmed the already noted additional structural weaknesses, which need to be addressed for the project to fully contribute to its development impact. For this reason, the project will be restructured along the following lines: (i) review the Results Framework to strengthen the link between the activities and the performance indicators; (ii) redefine the nature and scope of the Competitiveness Support Fund (Fonds d'Appui à la Compétitivité); (iii) reallocate additional funds to generate faster impact in the wood transformation component; (iv) revamp the Project Coordination Unit which is currently overstaffed with 25 staff and is neither proactive nor reactive, while the operating cost represents 20 percent of the entire budget allocation; (v) focus on activities that yield the greatest development impact (e.g. Kribi growth pole); and (vi) improve the Project’s governance. The restructuring is planned along the following time line: January 31, 2013: Receive a request for the restructuring February 1 to March 15: Engage with the authorities regarding the terms of the restructuring April 15: Draft a restructuring paper for internal review May 7: Start process to seek clearance for restructuring June 10: Restructuring paper approved and submitted to RVP. Locations Country First Administrative Division Location Planned Actual Cameroon Centre Region Yaounde Cameroon Far North Province Roumsiki Cameroon West Province West Region Cameroon North-West Province North-West Region Public Disclosure Copy Cameroon South Province Longji Cameroon South Province Kribi Cameroon West Province Foumban Cameroon East Region Reserve du Dja Cameroon South Province Dipikar Cameroon South-West Province Cameroon Mountain Page 2 of 6 The World Bank Report No: ISR9158 Country First Administrative Division Location Planned Actual Cameroon North-West Province Bamenda Public Disclosure Copy Cameroon West Province Bafoussam Cameroon South Province Campo Ma'an Results Project Development Objective Indicators Indicator Name Core Unit of Measure Baseline Current End Target Number of artisans and formal workers in the Number Value 40000.00 40000.00 55000.00 wood value chain Date 27-May-2010 14-Dec-2012 30-Mar-2016 Comments No change to register at this stage in light of slow implementation progress. Value of wood products of the third stage Amount(USD) Value 1000000.00 10000000.00 processing Date 27-May-2010 14-Dec-2012 30-Mar-2016 Comments At this stage, the project has had no impact on this indicator given its slow implementation pace. Number of hospitality workers in the tourism Number Value 55000.00 55000.00 70000.00 value chain Date 27-May-2010 14-Dec-2012 30-Mar-2016 Comments The project has not had impact in light of its slow implementation of all its activities. Number of international arrivals in Cameroon Number Value 487000.00 650000.00 Date 27-May-2010 30-Mar-2016 Public Disclosure Copy Comments Intermediate Results Indicators Page 3 of 6 The World Bank Report No: ISR9158 Indicator Name Core Unit of Measure Baseline Current End Target Number of formal firms in the wood value chain Number Value 100.00 100.00 200.00 Date 27-May-2010 14-Dec-2012 30-Mar-2016 Public Disclosure Copy Comments No impact thus far in light of very slow implementation progress. Number of workers trained in the wood value Number Value 0.00 0.00 3000.00 chain Date 27-May-2010 14-Dec-2012 30-Mar-2016 Comments Number of visitors to the Mount Cameroon Number Value 1000.00 1500.00 5000.00 National Park Date 27-May-2010 31-Oct-2012 30-Mar-2016 Comments Number of visitors to the Chiefdoms supported Number Value 125000.00 160000.00 by the project Date 27-May-2010 30-Mar-2016 Comments Number of visitors to the Campo Ma'an Number Value 200.00 2500.00 National Park Date 27-May-2010 30-Mar-2016 Comments Number of workers trained in the tourism value Number Value 0.00 1000.00 chain by programs supported by the project Date 27-May-2010 30-Mar-2016 Comments Number of hits on the e-tourism platform Number Value 0.00 10000.00 Date 27-May-2010 30-Mar-2016 Comments Number of registered hotel nights Number Value 1800000.00 2200000.00 Date 27-May-2010 30-Mar-2016 Comments 1,537,000 in 2005 Public Disclosure Copy Amount of taxes and tariffs levied on imported Percentage Value 45.00 20.00 equipment (%) - excluding VAT Date 27-May-2010 30-Mar-2016 Comments Number of business taxes and licences Number Value Date 30-Mar-2016 Comments To be determined during the X*0.5 first step of the guillotine. Page 4 of 6 The World Bank Report No: ISR9158 Average annual increase in turnover of firms Percentage Value 0.00 10.00 benefiting from the FAC Date 27-May-2010 30-Mar-2016 Comments Public Disclosure Copy Number of firms benefiting from the FAC Number Value 0.00 90.00 Date 27-May-2010 30-Mar-2016 Comments Cumulative Number of days to register a business Days Value 34.00 15.00 15.00 Date 27-May-2010 01-Jun-2012 30-Mar-2016 Comments The end target has been met The end target will be revised despite the fact that the during the restructuring. project has not implemented any activity to this end. Number of hours to pay taxes Hours Value 1400.00 645.00 700.00 Date 27-May-2010 30-Mar-2016 Comments The end target has been met The end target will be revised despite the fact that the during the restructuring. project has not implemented any activity to this end. Number of firms benefiting from the FAC Percentage Value managed by women Date Comments Percentage on the Y+5 cumulative. To be determined following the first two quarterly rounds. Data on Financial Performance (as of 25-Jan-2013) Financial Agreement(s) Key Dates Project Ln/Cr/Tf Status Approval Date Signing Date Effectiveness Date Original Closing Date Revised Closing Date Public Disclosure Copy P112975 IDA-47800 Effective 22-Jun-2010 19-Oct-2010 29-Apr-2011 30-Mar-2016 30-Mar-2016 Disbursements (in Millions) Project Ln/Cr/Tf Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P112975 IDA-47800 Effective XDR 19.90 19.90 0.00 3.81 16.09 19.00 Disbursement Graph Page 5 of 6 The World Bank Report No: ISR9158 Public Disclosure Copy Key Decisions Regarding Implementation The Ministry of Economy is expected to submit a letter requesting the Project's restructuring so that this restructuring can be concluded by the end of February 2013. Restructuring History There has been no restructuring to date. Related Projects P122772-Cameroon - Competitive Value Chains Additional Financing Public Disclosure Copy Page 6 of 6