Document of The World Bank Group FOR OFFICIAL USE ONLY Report No. 123736-NE INTERNATIONAL DEVELOPMENT ASSOCIATION INTERNATIONAL FINANCE CORPORATION MULTILATERAL INVESTMENT GUARANTEE AGENCY COUNTRY PARTNERSHIP FRAMEWORK FOR THE REPUBLIC OF NIGER FOR THE PERIOD OF FY18-FY22 March 13, 2018 Africa Region The International Finance Corporation Multilateral Investment Guarantee Agency 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 World Bank Group authorization. The date of the last Country Partnership Strategy FY13-FY16 was March 29, 2013. CURRENCY EQUIVALENTS US$1 = 529.8 CFA francs (FCFA) (as of January 31, 2018) FISCAL YEAR January 1 - December 31 ABBREVIATIONS AND ACRONYMS AAA Analytical and Advisory Assistance ACBP Africa Climate Business Plan AF Additional Finance AFD French Development Agency (Agence Française de Développement) AfDB African Development Bank AFL Africa Leasing Facility AFR Africa region AIDS Acquired Immune Deficiency Syndrome ANFICT National Agency for the Financing of Local Governments (Agence Nationale de Financement des Collectivités Territoriales) ANVD Nigerien Agency for Volunteers for Development (L’Agence Nigérienne de Volontariat pour le Développement) APL Adaptable Program Lending ARMP Public Procurement Regulation Authority (Autorité de Régulation des Marchés Publics) AS Advisory Services ASA Advisory Service and Analytics ATM Automated Teller Machine BCEAO Central Bank of West African States BCC Behavior Change Campaigns CAPC Community Action Project for Climate Resilience CCA Climate Change Adaptation CERC Contingency Emergency Response Component CLR Completion and Learning Review CNESS National Center for Strategic and Security Studies CPF Country Partnership Framework CPIA Country Policy and Institutional Assessment CPPR Country Portfolio Performance Review CPPP Criteria of Public-Private Partnership CPS Country Partnership Strategy CSO Civil Society Organization CSR Country Status Report DAC Development Assistance Committee DHS Demographic and Health Survey DP Development Partner DPO Development Policy Operation DPSP Domestic Private Sector Participation DRM Disaster and Risk Management DSA Debt Sustainability Analysis i ECOWAS Economic Community of West African States ECD Early Child Development EITI Extractive Industries Transparency Initiative ESMAP Niger Energy Sector Assessment ESW Economic and Sector Work EWS Early Warning System EU European Union FAO Food and Agriculture Organization FCS Fragile and Conflict-affected State FCV Fragility, Conflict and Violence FDI Foreign Direct Investment FINDEX Global Financial Inclusion Index FM Financial Management FP Family Planning FY Fiscal Year G5 Niger, Mauritania, Mali, Chad, and Burkina Faso GAC Governance and Anti-Corruption GDP Gross Domestic Product GEF Global Environment Facility GHG Greenhouse Gas GOLD Governance of Extractive Resources for Local Development GoN Government of Niger GP Global Practice GPE Global Partnership for Education GSMA Global System for Mobile Communications Association (Association des Opérateurs de Téléphonie Mobile) Ha Hectare HACP High Authority for Peace Building (Haute Autorité à la Consolidation de la Paix) HD Human Development HIV Human Immunodeficiency Virus ICR Implementation, Completion and Results Report ICT Information and Communication Technology ID4D Identification for Development IDA International Development Association IE Impact Evaluation IEC Information and Education Campaign IEG Independent Evaluation Group IFC International Finance Corporation IMF International Monetary Fund IMSA Identity Management System Analysis IMT Intermediate Means of Transport IPF Investment Policy Financing IPP Independent Power Producer IRM Immediate Response Mechanism ISR Implementation Status and Results Report IT Investment Technology JSA Joint Staff Assessment K2M Kano-Katsina-Maradi LSMS Living Standards Measurement Study M&E Monitoring and Evaluation M&R Monitoring and Reporting ii MCC Millennium Challenge Corporation MIGA Multilateral Investment Guarantee Agency MIS Management Information System MP Member of Parliament MW Megawatts NDC Nationally Determined Contribution NGO Non-governmental Organization NIGELEC The Nigerian Electricity Corporation (Société Nigérienne d'Electricité) NGO Non-governmental Organization NIP Niger Irrigation Project NSDS National Strategy for the Development of Statistics OECD Organisation for Economic Co-operation and Development OHADA Business Law Harmonization Organization (Organisation pour l‘Harmonisation en Afrique du Droit des Affaires) P4R Program for Results PBF Performance-Based Financing PC-NTDs Preventative Chemotherapy for Neglected Tropical Diseases PDES Plan for Economic and Social Development (Plan de Développement Economique et Social) PEFA Public Expenditure and Financial Accountability PEMFAR Public Expenditure Management and Financial Accountability Review PER Public Expenditure Review PFM Public Finance Management PforR Program for Results PIU Project Implementation Unit PLR Performance and Learning Review PPCR Pilot Program for Climate Resilience PPG Public and Publicly Guaranteed PPP Public Private Partnerships PRACC Competitiveness and Growth Support Project (Projet d'Appui à la Compétitivité et aux Sources de Croissance) PSW Private Sector Window RAP Resettlement Action Plan RDP Regional Development Plans REDISSE Regional Disease Surveillance Systems Enhancement REER Real Effective Exchange Rate RMR Risk Mitigation Regime RRA Risk and Resilience Assessment SABER Systems Approach for Better Education Results SCD Systematic Country Diagnostic SDG Sustainable Development Goals SDI Service Delivery Indicator SGC Shared Growth Credits SIGMAP Integrated Public Procurement Management System SIL Specific Investment loan SIM Sector Investment and Maintenance SIP Solutions and Innovations in Procurement SME Small and Medium Enterprise SOE State Owned Enterprise SPCR Strategic Program for Climate Resilience SSA Sub-Saharan Africa iii STI Sexual Transmitted Infection SURSH Scaling up Rural Sanitation and Hygiene SWEDD Sahel Women’s Empowerment and Demographic Dividend TA Technical Assistance TF Trust Fund TVET Technical and Vocational Education and Training UN United Nations UNDP United Nations Development Programme UNFPA United Nations Fund for Population Activities UNHCR United Nations High Commissioner for Refugees UNOPS United Nations Office for Project Services VAT Value Added Tax WA West Africa WAEMU Western Africa Economic and Monetary Union WAPP West African Power Pool WARCIP West Africa Regional Communications Infrastructure Program WASH Water, Sanitation and Hygiene WBG World Bank Group WDR World Development Report WSS Water and Sanitation Services IDA IFC MIGA Vice President: Makhtar Diop Sergio Pimenta Keiko Honda Director: Soukeyna Kane Cheikh Oumar Seydi Merli Margaret Baroudi Task Team Leader: Siaka Bakayoko Ronke Amoni Ogunsulire/Frank Douamba Paul Barbour iv COUNTRY PARTNERSHIP FRAMEWORK FOR THE PERIOD OF FY18-FY22 THE REPUBLIC OF NIGER Table of Contents I. INTRODUCTION .................................................................................................................... 1 II. COUNTRY CONTEXT AND DEVELOPMENT AGENDA ................................................................ 2 A. Socio-political and Institutional Factors...................................................................................... 2 B. Recent Economic Developments and Outlook ........................................................................... 3 C. Poverty and Shared Prosperity ................................................................................................... 6 D. Development Agenda ................................................................................................................. 8 III. WBG PARTNERSHIP STRATEGY ............................................................................................ 12 A. Lessons from the Completion and Learning Review (CLR) of the FY13-FY16 CPS .................... 12 B. In-country Consultations........................................................................................................... 13 C. Government Program and Medium-Term Strategy.................................................................. 13 D. Overview of WBG Strategy and Intervention Logic .................................................................. 14 E. Focus Areas and Objectives supported by the WBG Program.................................................. 16 F. Implementing the FY18-FY22 Country Partnership Framework ............................................... 31 G. Managing Risks to the CPF Program ......................................................................................... 35 Annex 1: Results Matrix ............................................................................................................. 39 Annex 2: Completion and Learning Review ................................................................................. 52 Annex 3: IDA18 Risk Mitigation Regime (RMR) Niger Implementation Note ................................. 79 Annex 4: Statistical Capacity....................................................................................................... 94 Annex 5: Regional and Agro-ecological Dimensions of Poverty .................................................... 95 Annex 6: Map of Niger ............................................................................................................... 95 Annex 7: Distribution of Official Development Assistance in Niger .............................................. 96 Annex 8: Selected Indicators of World Bank Portfolio Performance and Management ................. 97 Annex 9: World Bank Group Portfolio (as at February 12, 2018) .................................................. 99 Annex 10: Country Consultations ............................................................................................. 100 Box 1: Key Messages of the Systematic Country Diagnostic for Niger ................................................... 2 Box 2: The Kandadji Program ................................................................................................................ 21 Box 3: Summary of Program Implementation ...................................................................................... 53 Figure 1: Selected Governance Indicators .............................................................................................. 3 Figure 2: Key Macroeconomic and Financial Indicators, 2014-2022 ...................................................... 5 Figure 3: Impact of Natural and Political Shocks on GDP Growth 1990-2016 ........................................ 6 Figure 4: Poverty and Human Development Indicators in Niger by Region…………………………………………7 Figure 5: ‘Business Unusual’ in Niger .................................................................................................... 14 Figure 6: Geographic Focus of the FY18-FY22 CPF................................................................................ 16 Figure 7: CPF Alignment ........................................................................................................................ 17 Figure 8: Niger Indicative CPF Program FY18-FY22 (US$ millions) ....................................................... 32 Figure 9: Evolution of CPF Portfolio by Pillar ........................................................................................ 33 Figure 10: Planned ASA ......................................................................................................................... 34 Figure 11: Systematic Operations Risk Rating Tool .............................................................................. 35 v I. INTRODUCTION 1. This Country Partnership Framework (CPF) presents the World Bank Group (WBG) program for Niger for the period FY18-FY22. The proposed CPF comes at an opportune moment as an exceptional volume of resources is now available to Niger, allowing the WBG to intensify and deepen its engagement in Niger. It will succeed the FY13-FY16 Country Partnership Strategy (CPS)1, and is aligned with the second Plan for Economic and Social Development (Plan de Développement Economique et Social - PDES) prepared by the Government of Niger (GoN) within the context of its Vision 2035. The CPF draws on a comprehensive Systematic Country Diagnostic (SCD)2 completed in FY17, which identified growth constraints and opportunities to achieving the World Bank’s Twin Goals of eliminating poverty and fostering shared prosperity in a socially and environmentally sustainable way (see Box 1). It also reflects the GoN’s commitment to the Sustainable Development Goals (SDGs) and its responsibilities and priorities in the area of climate change mitigation and adaptation. 2. The CPF argues that “business as usual” is no longer an option for Niger. A combination of deep-rooted structural factors and short-term drivers have exacerbated Niger’s fragility and significantly increased risks of conflict and violence. A narrow export based economy and rain-fed agriculture keep growth rates low and volatile. Rapid population growth combined with persistent low agricultural productivity, climatic change and environmental degradation is exerting unsustainable pressure on food supplies, natural resources and public services, and is exacerbating competition over resources. These factors have also constrained welfare more generally: Niger has ranked near to last in the United Nations (UN) Human Development Index since 2010. Meanwhile, external pressures due to conflicts involving violent extremist groups in neighbouring Mali and Nigeria, and the lack of a state presence in southern Libya have dramatically increased internal risks to Niger, with the potential to fuel pre-existing inter-communal tensions. Responding to security and humanitarian needs is further stretching already limited public resources. At the same time, weak governance and dissatisfaction over the management of public resources (including mining revenues) and the delivery of services is reinforcing grievances and encouraging alternative – especially religious - forms of mobilization. As flagged in Vision 2035, a step change in the focus and quality of delivery of development policies is now needed, one that goes beyond what has so far been achieved by successive governments. 3. The overarching goal of the CPF is to help safeguard and accelerate Niger’s economic and social development, by tackling growth constraints, unsustainable population growth and other fundamental (and emerging) drivers of fragility. In the short term, and within this overarching goal, the FY18-FY22 CPF will not only focus on boosting rural productivity and incomes, and strengthening human capital and governance, but also on empowering women and girls, a key strategy to reverse Niger’s record high levels of fertility and population growth. In the medium-term, reduced demographic pressures are expected to unleash women’s economic potential and free up public resources for improving basic service delivery, which in turn will enable further empowerment of women and girls in a self-sustaining virtuous circle. The CPF will also address fragility, conflict and violence (FCV) risks by supporting Niger’s response to existing crises and by helping to reduce rising tensions. This will require targeting resources to the most fragile and crisis-affected regions and directly addressing other drivers of conflict and fragility, such as youth disenfranchisement, grievances over allocation of government resources, and competition for scarce natural resources. Strengthening institutions will be critical to manage these risks and support social cohesion (see Annex 1: Results Matrix). The CPF draws on the combined contribution of the WBG including renewed efforts by the International Finance Corporation (IFC) and Multilateral Investment Guarantee Agency (MIGA) to de- risk private investment in Niger (see also Annex 2: Completion and Learning Review). 1 Report no. 76232-NE 2 Report no. 115661-NE 1 4. The proposed strategy is made possible by a significant increase in resources. This CPF sets out a strategy for achieving a crucial change of trajectory financed by a doubling of resources relative to the previous CPS. The program draws on new sources of financing available under the International Development Association (IDA) 18, including enhanced country allocation with additional resources from the Risk Mitigation Regime (RMR)3, and potential access to the Refugees Sub-Window, the Regional Integration Window, and other IDA windows. Total IDA resources available in IDA18 could be over US$1 billion, which represents an unprecedented opportunity to upgrade and expand the scope of the WBG’s assistance in Niger. Box 1: Key Messages of the SCD for Niger Niger is one of the poorest countries in the world and a change of trajectory is needed. Modest growth rates and low levels of education, poor health and rapid population growth are major challenges, as are the country’s vulnerability to weather shocks, the increasing pressure of climate change, limited access to insurance, credit and other financial instruments, and the existence of multiple poverty traps. The SCD identifies three binding constraints: (i) low rural productivity; (ii) inadequate human capital; and (iii) poor governance. Addressing the constraint of inadequate human capital first requires a focus on the quality of health and education services, greater emphasis on skills and competencies and behavioral change among service users. To improve service delivery in the presence of weak governance, a citizen-centered approach is proposed, that aims to reach citizens directly and empower them while depending less on public intermediaries. The SCD also recognizes the importance of improving the capacity of the administration and proposes a “center of excellence” approach. II. COUNTRY CONTEXT AND DEVELOPMENT AGENDA A. Socio-political and Institutional Factors 5. Niger has a turbulent history that has fuelled political and social tensions. Since its independence in 1960, Niger has experienced seven republics and four military coups including the latest in 2010 when military officers overthrew the incumbent president, President Tandja. Civilian rule was restored in 2011 with the election of President Issoufou, who was re-elected in 2016. Niger has also experienced internal conflict linked to rebellions, especially in the Northern part of the country. 6. Niger is currently facing a serious security and humanitarian crisis, which thrives on and reinforces pre-existing institutional vulnerabilities and inter-communal tensions. Since 2011, regional instability has taken on a new dimension, due to the Libyan and Malian crises and the deteriorating situation in North-Eastern Nigeria.4 In addition to their fiscal impacts, regional spill-overs from these conflicts have led to massive forced displacement5, negatively affected trade networks and caused a rapid deterioration of the social and economic situation in border regions. The impact has been particularly strong in the Diffa region – also affected by the economic crisis and ongoing conflict in Nigeria – where Boko Haram continues to carry out attacks. Along the North-Western border, the 3 The purpose of the RMR is to provide enhanced support to countries to mitigate increasing risks of FCV where governments are committed to addressing them. These could include risks resulting from internal or external stresses (e.g., as a result of spill-overs, economic marginalization, lagging regions, political uncertainty or insecurity). The special allocation helps countries address identified FCV risks or stresses (long-term and/or short-term) and build institutional resilience to manage them. While countries may be exposed to multiple risk factors, the focus of the regime is on those risks that may trigger or reinforce instability, conflict or violence. See Annex 3 IDA18 RMR Niger Implementation Note. 4 Niger has contributed a significant military contingent as part of Mali’s MINUSMA operation in Gao in northern Mali and is also part of the Multinational Joint Task Force that fights against Boko Haram in the Lake Chad area. In early 2017, Niger and the other members of the G5 (Mauritania, Mali, Chad, and Burkina Faso) put in place arrangements for a joint counter- terrorism force in the region. 5 Niger is host to 165,645 refugees, mostly Malian and Nigerian nationals, and approximately 153,000 internally displaced persons (United Nations High Commissioner for Refugees (UNHCR) 2017). 2 regions of Tillabery and Tahoua are subject to incursions by armed groups coming from Mali that have reignited localized communal conflicts. The protracted conflict in Libya has also spilled over into the Agadez region through trafficking of human beings, drugs, arms and goods. The state of emergency and restrictive security measures in the border regions have in turn stifled economic activity and deprived many Nigeriens of their sources of livelihoods and income. 7. Although Niger has so far avoided a major break down, there is popular discontent over the management and distribution of public resources and the quality of services. Offering quality and legitimate services to all Nigeriens is a major challenge. Inequalities in resource allocations, with most public resources being spent in Niamey, are reflected in uneven public service provision across the country. The health sector, for instance, is characterized by a high concentration of doctors in Niamey (one per 5,642 people), to the detriment of highly-populated areas such as Zinder, Maradi and Tahoua. Nonviolent radical organizations are exploiting this dissatisfaction. Together with a general disenchantment with political governance, since independence, this fuels grievances among marginalized communities, and increases the risk of radicalization and recruitment by violent extremist organizations. Similarly, a lack of transparency in the redistribution of mining revenues and benefits reinforces territorial imbalances and fuels grievances among the population from mining areas in the North and East. 8. Public sector governance remains weak, but is showing some progress. According to the 2016 Public Expenditure and Financial Accountability (PEFA) report, while showing some slight improvement, structural problems of budgeting, cash management, and weak revenue mobilization continue to undermine budgetary discipline.6 As shown in Figure 1: Selected Governance Indicators, which compares Niger with neighboring countries, the country still needs to improve its governance outcomes, especially in terms of the integrity of its civil service and openness. Figure 1: Selected Governance Indicators Burkina Niger Senegal Benin Ghana Faso Source Year (0=lowest, 100=highest) Public Management 53 53 65 45 55 Global 2016 Civil Service Integrity 25 63 29 54 38 Integrity Access to Information & Openness 33 38 32 34 51 9. Finally, Niger’s financial sector needs to develop significantly to better support the domestic economy.7 Limited deposits and savings, high interest rates and user fees, as well as very limited financial infrastructure contribute to the shallow financial markets. Poor identification systems and the prominence of informal firms are also inhibiting factors. Niger’s financial institutions are characterized by their low reach; there are less than 1.5 bank branches and automated teller machines (ATM) per 100,000 adults. Consequently, financial inclusion metrics in Niger are extremely poor, both for firms and households (less than 4 percent of adults have a bank account and less than 2 percent borrow from a financial institution, including 1 percent of women). B. Recent Economic Developments and Outlook 10. GDP growth is on an upward trend (Figure 2). After declining to 4.0 percent in 2015, Niger’s economic growth reached 5.0 and 5.2 percent (1.1-and 1.3 percent in per capita terms) in 2016 and 6 Even though there has been a slight improvement the 2016 PEFA found that six indicators scored at or above B for the 2016 evaluation (compared with only four in the PEFA 2012 evaluation), while the number of indicators rated C or D has fallen to 22 (against 24 in the 2012 assessment). 7 World Bank (WB) Global Financial Development Database. 3 2017 thanks to a buoyant season in agriculture supported by favorable weather conditions and an expansion of crop irrigation. Modest growth performance in 2015 reflected the impact of multiple shocks including security challenges with growing social and humanitarian pressures, the economic downturn in Nigeria, unfavorable weather and the depressed level of commodity prices. 11. Inflation remained stable and well below target. Niger is a member of the Western Africa Economic and Monetary Union (WAEMU). Monetary and exchange rate policies are therefore managed at the regional level by the Central Bank of West African States (BCEAO). Average inflation was almost flat (0.3 percent) in 2016 and increased to 2.4 percent in December 2017, well below the WAEMU target of three percent. This reflected a regional monetary policy that was tight in Niger’s economic context, a good crop season (and hence low crop prices) and public food subsidies in 2016 and a somewhat loose monetary policy in 2017. 12. Tighter controls on expenditure have helped narrow the fiscal deficit. Total revenue and grants declined to 22.6 percent of GDP in 2017 from 23.5 percent in 2015. Fiscal adjustment in 2016 was driven primarily by a decline in public investment of about five percent of GDP. Fiscal consolidation continued during 2017 with further tight controls on expenditures. As a result, the overall fiscal deficit (on a commitment basis, including grants) narrowed to an estimated 6.1 percent of GDP in 2017 from 9.1 percent in 2015. 13. The current account deficit (excluding grants), although still high, improved on the back of cuts in public investment. Recent external current account deficits have been caused by persistently low commodity prices, the high-import content of public investment and a decline in Niger's exports to Nigeria following the depreciation of Nigerian Naira. In 2017, the deficit narrowed to 13.4 percent from 20.5 percent of GDP in 2015. Improvement since 2016 has been driven by a sharp decline in public investment. 14. As in previous years, the current account deficit was primarily financed by external public borrowing. Niger’s external public and publicly guaranteed (PPG) debt stock has risen sharply in recent years, driven by rising natural resource projects and infrastructure. External PPF debt reached an estimated 49.7 percent of GDP in 2017, up from 41.6 percent in 2015, and was largely composed of concessional debt to multilateral creditors. Such rapid growth reflects the scaling up of government borrowing to fund public investment in infrastructure. The risk of external debt distress is moderate, per the latest debt sustainability analysis (DSA). Foreign direct investment (FDI) was also a source of financing. Foreign exchange reserves in 2016 stood at a level equivalent to an estimated four months of imports. Outlook 15. The macroeconomic outlook for the medium-term is positive, but subject to significant downside risks. Real GDP growth is projected to average more than 6.0 percent during 2018- 2021, mainly as a result of an expansion in agriculture and an increase in public and private investment.8 The extractive industry is expected to continue to play a key role in the economy with prospects for major oil and uranium projects coming on stream in 2020.9 A gradual improvement in Nigeria’s economic situation and in commodity prices, and the further development of emerging agri-exports, would help improve trade prospects. For its part, and in line with prudent monetary policy supporting fiscal 8 The construction of transport and energy infrastructures, including a dam and two cement factories, and the development of the ICT/telecoms sector are expected to upgrade Niger’s infrastructure. 9 Growth in agriculture would be supported by expanding irrigated areas, more organized extension services, and increased access of producers to rural credit. In mining, these include crude oil production and oil exports, and the Imouraren uranium mine project. 4 consolidation, inflation is projected to remain contained, at about two percent on average over 2018- 2021. Figure 2: Key Macroeconomic and Financial Indicators, 2014-2022 Projections 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Real Economy (annual percentage change, unless otherwise specified) Real GDP 3.6 7.5 4 5 5.2 5.2 5.4 5.6 7.2 8.2 Per capita GDP growth -0.3 3.6 0.1 1.1 1.3 1.3 1.5 1.7 3.3 6.1 Non-resources GDP 1.5 8.2 4.5 5.1 4.8 5.1 5.5 5.9 4.6 5.2 Exports vol 10.9 11.1 -4.5 -4.2 12.5 9.3 10.5 6.5 31.9 7.8 Imports vol 2.5 5.5 7.3 -14.1 2.3 12.3 8.5 7.5 -6.2 4.2 GDP deflator 2.2 -0.5 0.5 -0.4 1.8 2.3 1.9 1.9 1.7 2.0 Consumer price index Annual average 2.3 -0.9 1 0.3 2 2.5 2 2 2.0 2.0 End-of-period 1.1 -0.6 2.2 -2.4 3 2 2 2 2.0 2.0 Fiscal Accounts (Percent GDP, unless otherwise indicated) Total revenue and grants 24.6 23 23.5 20.5 22.6 22.6 23.7 24.9 24.3 26.8 Total expenditure and net lending 27.2 31.1 32.5 26.6 28.6 28.8 29.4 29 26.6 26.3 Current expenditure 13.5 14.6 15.5 14.1 14.3 14.1 13.9 13.3 12.7 12.5 Capital expenditure 13.7 16.4 17 12.5 14.4 14.8 15.6 15.8 13.9 13.8 Overall balance 1/ -2.6 -8 -9.1 -6.1 -6.1 -6.2 -5.7 -4.1 -2.3 -1.5 Selected monetary Accounts (Annual change, in percent of beginning-of-period broad money) Broad money 11.8 25.7 4.6 8.7 12.4 10.8 9 8.2 8.7 6.6 Credit to non-government 4.1 6.1 6.3 6.8 4.3 6.4 5.6 5.7 6.4 6.7 Net bank claims on the government 1.1 9.1 6.3 6.9 2.5 1.2 -1.5 -5.2 -6.3 Balance of payments (Percent GDP, unless otherwise indicated) External current account balance 2/ -17.2 -15.4 -20.5 -15.5 -13.4 -15.9 -16.4 -17.7 -11.3 -11.1 Imports 27.4 26.2 27.4 22.8 22.4 23.8 24.5 25 22.0 21.7 Exports 21.6 17.6 15.1 13.7 14 14.1 14.5 14.5 17.4 17.0 Foreign Direct investment 8.4 8.9 6.9 3.5 3.4 4.5 5.3 6.5 2.7 2.6 Gross Official Reserves 3/ 4.6 4.9 5.4 5.6 5.7 5.4 5.2 5.7 5.8 5.3 Total public and publicly guaranteed debt 33.8 41.6 46.7 49.7 51.9 53.4 54.2 53.7 53.3 Public and publicly guar. external debt 29.6 25.1 30.3 33 35.2 37 38.8 41.4 42.3 43.3 Public domestic debt 8.7 11.4 13.7 14.6 14.8 14.6 12.8 11.3 10.1 Foreign Aid 9.3 8.9 10.4 10.6 12.2 11.8 12.5 12.7 10.3 10.1 Terms of Trade (percentage change) -8.2 -19.4 -7.5 -2.2 -7.4 -5.6 -2.2 -1.2 -6.0 -0.3 Exchange rate (average) 471.3 510.2 493.9 493.6 592 593 593 593 593 593 Memorandum items: GDP (Nominal-local currency) 3,635 4,069 4,269 4,464 4,778 5,143 5,523 5,942 6,479 7,013 GDP (in Nominal US$ bn) 7.7 8 8.6 9 8.1 8.7 9.3 10.0 10.9 11.8 1/ commitment basis, including grants 2/ including grants 3/ in months of next year's imports of goods and services Source: Nigerien authorities; International Monetary Fund (IMF) and World Bank staff estimates, 2016. 16. The fiscal deficit is projected to reach 6.2 percent in 2018 followed by steady decreases through 2021. This will be achieved through a combination of stronger revenue mobilization capacity and a sizable downward adjustment in primary spending over the medium term. Domestic revenue is expected to rise on the back of measures aimed at broadening the tax base and enhancing tax revenue management. The government’s plan is to continue rationalizing current and investment spending. 17. The external current account deficit is projected to remain above 15 percent of GDP until 2020, but then reverse. Under this scenario, a recovery of official trade flows with Nigeria and more dynamic exports will be offset by a substantial increase in imports to support growth. This trend should be reversed from 2021 onwards with the coming on line of crude oil exports and a number of large mining projects, which would also provide for a boost to FDI. Gross official reserves would remain above five months of imports of goods and services over the medium term, on the back of steadily increasing FDI inflows until 2020 and sustained inflows of project grants. 5 Figure 3: Impact of Natural and Political Shocks on GDP growth 1990-2016 15 10 First Tuareg insurgency 1994/5 drought drought 5 1990 2000 0 -5 drought drought and political political locust 2004/5 2009/10 instability instability Tuareg rebellion -10 1992 1999 2007-09 Source: Adapted from Niger SCD 2017. 18. The outlook, however, remains subject to substantial external and domestic risks and assumes that there will be no further deterioration in the country's security situation over the next few years. Key risks include negative externalities of regional conflicts, vulnerability to natural disasters, international commodity prices, delays in completing the infrastructure required to export oil, and economic turmoil in the sub-region. C. Poverty and Shared Prosperity 19. Although poverty rates have fallen, they have been outweighed by rapid population growth rates, resulting in a large increase in the absolute number of poor people in Niger . Between 2005 and 2014, the incidence of income poverty fell from about 54 percent to about 45 percent. The absolute number of people living in poverty, however, rose from 6.8 million in 2005 to 8.2 million in 2014, an increase of one fifth or 1.4 million people. Overall population growth accelerated from 3.1 percent between 1988 and 2001 to 3.9 percent between 2001 and 2012 and the population of Niger now stands at about 21.5 million. This is explained by a fertility rate of 7.6 children per woman, the highest fertility rate in the world, and a rapid decline in child mortality. In Maradi and Zinder, the fertility rate climbs to nine births per woman (Figure 4: Poverty and Human Development Indicators in Niger by Region) 20. Niger’s human development indicators are very poor. Per capita GDP was US$895 in 2015 (constant 2011 US$), making Niger one of the poorest nations in the world. Life expectancy at birth is estimated at about 61 years. The under-five mortality rate is 104 per 1,000 live births and the maternal mortality rate is 553 per 100,000 live births, higher than the sub-Saharan Africa (SSA) average of 546. Only 52 percent of children receive a complete set of vaccinations, 44 percent of under-fives are stunted and 34 percent are under-weight. Education outcomes are no better. About seven Nigeriens out of ten are illiterate, average school attendance is less than six years, and only four female students in primary school out of ten reach sixth grade. Today’s children attend school for, on average, just six years and learning outcomes are among the weakest in the region. See also Annex 3: Statistical Capacity. 6 Figure 4: Poverty and Human Development Indicators in Niger by Region10 Number of children born Share of women with no U-5 mortality per Poverty incidence (%) to women aged 40-49 0 education (%) 100,000 live births 2011 2014 2006 2012 Source: Strategic C ountry Diagnostic, DHS 2006, 2012, team calculations 21. Consumption inequality is less pronounced than elsewhere in the region although there are pronounced differences based on land assets and across areas. The Gini coefficient based on consumption is 0.34 compared with a coefficient of 0.46 based on land. The vast majority of Niger’s 8.2 million poor live in rural areas where food insecurity is high and exacerbated by the effects of climate change (see also Annex 5: Regional and Agro-ecological Dimensions of Poverty). About two thirds of Niger’s poor (about 5.3 million people) live in the semi-intensive agriculture and livestock- rearing regions of Maradi, Dosso and Zinder in the south of the country. Thirty percent of the poor live in Maradi alone which has the highest incidence of poverty at 66.5 percent. Many are chronically poor i.e. subject to one or more poverty traps including lack of adequate assets, poor nutrition, inadequate education, and soil fertility. These households are also highly vulnerable to the severe effects of climate change.11 During the last drought in 2011, a 21 percent decline in rainfall led to a 28 percent decline in cereal production and an eight percent reduction in the stock of animals. Niger’s vulnerability to climate shocks, combined with the country’s rapid demographic growth, increase the risks of local conflict, as a growing number of people compete for diminishing resources, including fertile land and water. While there are more land disputes among farmers, conflicts between sedentary farmers and pastoralists often lead to violence. 22. Niger’s exceptionally high population growth rate is a result of multiple economic and social factors. Many women earn very low incomes, have very little education, and enjoy only limited access to information and health services. Women’s decision-making powers, including over fertility, are limited. Social norms may also explain a preference for children. Without improvements in these general conditions (risk, human capital, access to health services) and without active engagement to 10 Poverty incidence defined by share of population living below national poverty line with data adjusted to enable comparison over time. 11 Over the period 2009–2014 most households surveyed experienced less rainfall overall (52 percent), worse in-year distribution of rainfall (62 percent), more frequent droughts (59 percent), shorter rainy seasons (77 percent), and more delays in the start of rainy seasons (66 percent). 7 discuss and challenge established norms, population growth is likely to remain high, and the impact of population policies, limited. 23. The consequences of continued rapid population growth could be dire. The population of Niger is projected to increase to around 30 million by 2030 and 70 million by 2050. High dependency reduces the ability to save and invest in human and physical capital, thus perpetuating poverty as families opt to rely more on labor and invest less in the education and health of their children. High fertility has negative consequences for women’s health, their nutritional status as well as that of their offspring. It increases pressures on limited resources (water, fertile land and forests) and, with the number of children increasing by 750,000 per year, the state is burdened with much higher demands for investments in education and health services than would be the case in a situation of lower population growth. Because of its still very high fertility rate, Niger is the only Sahelian country that is yet to benefit from a demographic dividend. On the contrary, the combination of high demographic growth, depletion of natural resources and weak state institutions, represent a significant risk factor that increases Niger’s fragility and likelihood of conflict. D. Development Agenda 24. The medium-term development agenda for Niger should focus on accelerating structural transformation through: (i) raising agricultural productivity; (ii) investing in human capital; and (iii) strengthening governance, but a shift in approach is urgently needed. The SCD for Niger (completed in 2017) provides an analytical framework for the CPF. The SCD found that Niger is still at the early stages of structural transformation. Modernizing the rural sector, integrating rural producers in domestic and global markets, and reducing the population’s dependence on subsistence livelihoods are all critical for food security. Improving human capital will support productivity increases, spur off- farm rural economy and prepare Nigeriens for economic diversification and urbanization. Achieving this requires improvements in the business environment, regional integration, and infrastructure and public resource management. Innovative approaches in these areas have yielded some success, but much of the poverty reduction observed over the past decade can be attributed to favorable external conditions that no longer exist, and Niger is facing new challenges. 25. To shift Niger’s trajectory will also require refocusing on: (i) the role of women and girls and (ii) addressing near term risks of conflict and fragility. Niger has made some significant gains in social outcomes over the past two decades but these have been overwhelmed by rapid population growth stemming from the highest levels of fertility in the world. Demand for family planning services is the lowest in Africa, and maternal mortality rates are among the highest in the world. The route that leads to the empowerment of women and girls is therefore also the route leading to a sustainable rate of population growth and more inclusive pattern of economic growth. Improved economic prospects, better education and health, will boost female decision-making powers, particularly, in regards to marriage and fertility.12 Addressing the increasing near-term drivers of fragility and conflict in Niger will require targeting resources toward communities most at risk – geographically (Diffa, Tillabery, Tahoua and parts of Agadez) and towards youth and refugee-hosting communities. Adopting citizen- centred approaches to service delivery and resource management, using digital solutions as appropriate, will help ameliorate public dissatisfaction and resolve longer term grievances. 12 As required by World Bank Operations Policy (OP)/Bank Policy (BP) 4.20 the gender analysis in this CPF is informed by a range of analytical work including preparatory analysis for the SCD; a gender assessment conducted by UN Women in Niger May 2017; Prospere Backiny-Yetna and Kevin McGee, “Gender Differentials and Agricultural Productivity in Niger”, World Bank, Policy Research Working Paper 7199, 2015; and “Voices of Men and Women Regarding Social Norms in Niger” produced under Gender, Agency and Economic Development ESW (P132794) in 2014. 8 Modernizing the rural economy 26. Agriculture and the rural economy hold the key to extreme poverty reduction in Niger. Together the agriculture and livestock sectors engage about 16 million people (80 per cent of the workforce) and account for 40 percent of GDP. But their productivity levels remain very low, with a large gap between actual and potential yields for the most popular cereal crops (such as sorghum, millet and rice) and for livestock production. Yields of rain-fed sorghum and millet could increase by factors of almost 20 and eight respectively, while irrigated rice yields could double.13 Strategic and productivity enhancing interventions in livestock sector could foster resilience and boost incomes. There are also opportunities to increase the export of horticultural products through regional and global value chains, as well as to formalize and improve environmental management of the artisanal and small-scale mining sector. 27. Modernizing and diversifying the rural economy also requires improving productive infrastructure, adapting technologies to climate change and correcting some distortionary policies. Higher rates of agricultural productivity will not be possible without improving the access of farmers, to water, information and other inputs and services. Niger can make progress through innovative investments in emerging agri-value chains and has great potential for expanding irrigation using groundwater. Ongoing investments in expanding both access to on- and off-grid electricity, water supply and sanitation, strengthening rural roads and expanding access to the digital network and services remain crucial. Policy reforms are also required to address on-going degradation of cultivated, pasture and range lands, inefficient seed systems, poor quality extension services, lack of access to finance and poor connectivity of farmers to markets. 28. Gender: Given the significant share of women potentially participating in agricultural production, Niger should target female labor participation and female productivity in rural areas. Plots managed by women produce 19 percent less per hectare (ha) than plots managed by men. Contributory factors are: (i) greater difficulty in accessing, using, and supervising male farm labor; (ii) lower use of inorganic fertilizer per ha; and (iii) lower rates of land ownership and returns to ownership. There are also large gaps in access to digital services. Recent research by the Global System for Mobile Communications Association (GSMA) Connected Women programme suggests that women in Niger are 45 percent less likely to own a mobile phone than men. The World Development Report (WDR) 2012 shows that gender gaps in agricultural productivity diminish considerably when access to, and use of, productive inputs are taken into account. 29. Maximizing the potential of the artisanal mining sector should also include a focus on female miners. Women play an important role in the extraction and trade of ‘low value minerals’ such as salt, gypsum, natrium, and phosphate. Thousands of women, often accompanied by their children, earn an income by the extraction of these minerals. Empowering them with better equipment, knowledge and agency while improving the environmental, health and safety conditions will have a large development impact on the community and regional level. 30. Fragility: Targeting opportunities in agriculture and pastoralism toward women and youth in conflicted-affected regions could help to break cycles of insecurity, marginalization and violence. Efforts to raise agricultural productivity and income in these areas should also focus on connectivity to ensure rural communities that currently do not have access to broader markets due to security and trade restrictions have alternative trade routes for selected value chains (e.g. the Diffa-Zinder-Nigeria corridor). Ensuring that Niger’s youth are also directly empowered with income earning activities, have access to education and training opportunities and a voice in local decision-making should help 13 Numbers vary by source: FAOSTAT reports for instance yields for millet of 544 kg/ha and 442 kg/ha for sorghum, while the Global Yield Atlas puts the yield potential at 1.2 t/ha for rain -fed millet and of 3.3 t/ha for rain-fed sorghum. Irrespective of the source, the yield gap is very large. 9 reduce the potential for their radicalization. In addition, it will be important to strengthen and expand mechanisms and tools for peaceful management and sharing of agro-pastoral resources. Boosting Niger’s human capital 31. Along with measures to boost rural productivity, improving the delivery of social services to the poor, including the challenge of Early Years, can help to break multiple poverty traps, accelerate improvement in social outcomes and strengthen resilience to various shocks. Human capital in Niger is depleted both by low levels of education, poor health and health services, limited social protection and the on-going security and humanitarian crisis in border regions. x Despite increased enrolment over the past 20 years, education levels remain exceptionally low in Niger. About 50 percent of the population aged 15–24 cannot read or write and 72 percent has no formal education. In addition, these low outcomes further mask very large regional disparities: the mean year of completed schooling for the poorest quintile in rural areas is about one year and the share of the population with no education in other regions is double that of Niamey. Moreover, the return to education is low for levels below secondary school, especially in rural areas. Addressing the quality of education is key to help tackle youth unemployment and to promote a sense of identity and inclusion in a secular context. x Recurrent health issues trap the poor in a vicious cycle of low productivity, low incomes, and poor health, leading to even lower productivity. Malaria is the main cause of illness, followed by respiratory infections (related to indoor air pollution) and diarrhoea. Only 39 percent of those affected in the poorest quintile sought treatment, compared to 66 percent in the richest quintile. Quality of health services remains low with only one-third of diagnoses correctly performed14. Only 29 percent of women aged 15-49 give birth with qualified assistance, and while infant/child mortalities have improved in recent years, stunting and wasting remain extremely high. Niger’s extremely low nurse-to-population ratio, together with uneven spatial distribution and high absentee rates of health staff, create severe regional disparities in service provision. x Very high levels of chronic malnutrition (i.e. 44 percent of children under-5 being stunted), jeopardize human development and the country’s economic growth for decades to come. The early years of life (from preconception, through pregnancy and birth, the newborn period, infancy, and transition to primary school) is a pivotal period of development. Exposure to risks and adversities during these years can disrupt cognitive, emotional and physical development, and hold children back from reaching their full potential. Chronic malnutrition is one of the most damaging risks in those young ages resulting in lifetime negative consequences with reduced cognitive and physical development, education attainment and lower wages in adulthood. And finally, children suffering early life malnutrition have and increased risk of suffering chronic disease as adults x Limited social protection in Niger, particularly in the face of rising security threats, climate variability, and forced displacement, exacerbates prevailing poverty traps. Poverty in Niger has been exacerbated by high levels of insecurity and forced displacement. Regional conflicts and the deteriorating security situation near the Malian border and in the Diffa region have led to a serious humanitarian crisis which is depleting human capital. Forced displacement and the disruption of productive and economic activities have had a major impact on affected communities and exacerbated poverty. Niger is home to an estimated 165,645 refugees mostly Malian and Nigerian nationals, and approximately 153,000 internally displaced persons. The lack of a comprehensive system of social protection is a major liability including for refugees and communities at risk of multiple hazards. Social safety nets can be used as short-term instruments to help the poor cope with economic shocks as well as medium/long-term poverty alleviation 14 Service Delivery Indicator (SDI) survey completed in 2016. 10 programs, supporting minimum consumption levels and promoting the accumulation of human and physical capital. 32. Gender: An intensified focus on reproductive health and girls’ education should ultimately help to unleash economic and social outcomes for women and achieve the needed demographic transition. Niger may be unique in its high desired levels of fertility15 which may be due to cultural norms, but the established correlates of fertility decline– income, education and health services – have been found to be valid for Niger as well. WDR 2012 demonstrated that impressive gains in achieving more sustainable fertility rates are indeed possible across a range of countries. 33. Fragility: Focusing on service delivery at the local level is critical, not only to address disparities in social outcomes, but to reduce FCV risks by reinforcing a positive state presence throughout Niger. This involves strengthening the presence and the quality of services, especially in marginalized and high-risk areas. Focusing on service delivery directly at the local level can help to mitigate broader capacity constraints in the public sector (until those can be addressed), and also strengthen citizen’s voice and women’s collective agency that counter dissatisfaction in the state. New digital technologies make such direct, citizen-centric, service delivery possible. In addition, social safety nets can be used as short-term instruments to help the poor cope with economic shocks as well as medium/long-term poverty alleviation programs. They can support minimum consumption levels and promote the accumulation of human and physical capital. Scaling-up safety nets is also critical to address the current challenge of refugees and displaced households, and to build capacity to respond more rapidly to communities facing future shocks, including from conflict/insecurity. Such approaches would help to strengthen the development-humanitarian-development-peace nexus. Using cash for work to stabilize affected communities, combined with measures aimed at encouraging recovery, can together build confidence in these areas until more sustainable solutions can be mobilized. Strengthening governance 34. Niger will need to achieve better resource management to tackle its many challenges and achieve sustainable growth. With security and humanitarian costs likely to increase, subdued incomes from the extractive sector and increased variability associated with climate impact on rain-fed agriculture, it is imperative that Niger improves the management of its scarce public resources. Dependency on aid and natural resources further negatively impacts Niger’s development and resilience to shocks x Niger has the opportunity to increase its returns from, and reduce grievances in the extractives sector. Better management and increased exploitation of the mining sector could also help boost public revenues and, in some cases, increase employment for the poorest particularly women. Opportunities include increasing existing production, the creation of more upstream and downstream jobs with increased local content and developing new deposits. Revenues generated by the sector could be used to boost investment in physical and human capital in affected communities and to nationally finance redistribution schemes to reduce territorial disparities. They could also be used to address grievances among the population in mining areas. This will contribute to mitigate future risks and drivers of conflict and instability. x Improved policies will be necessary to accelerate future economic diversification and urbanization. The business environment is constrained by a high regulatory burden, limited competition, and a state-led approach to development. More progress is needed in: (i) improving the business environment (building on recent gains in Niger’s Doing Business ranking); (ii) mitigating the costs of transport and energy associated with being land-locked; (iii) strengthening the regulatory and institutional framework for telecommunications and 15 In Niger, the desire for an additional child barely declines with the number of children. 11 Information and Communication Technology (ICT) based services; (iv) developing the financial sector; and (v) integrating better into regional markets. There is also a scope to increase the range of economic activities in cities and towns. Niger is barely urbanized and the migration of labor from the agricultural sector, with high levels of seasonal under-employment, to urban areas, with scope for year-round employment, is clearly an additional potential source of growth. x Improve governance in the public sector. Many opportunities from private investors remain unrealized due to weak governance. The capacity of the public administration is limited and incentives are not aligned with service delivery. It is crucial to improve the management of public resources and the administration’s capacity to deliver services. This requires strengthening the human and financial resources available to local governments and shifting more central administration functions to local levels to enable effective management of local government. 35. Gender: Augmenting women’s influence in public decision-making will shape better responses to the country’s development challenges at the national and local levels. At a minimum, more female-decision makers and greater women’s collective agency should be better harnessed into governance structures for public service delivery, internal and external security, and management of natural resources. In turn, better governance and improved public sector service delivery at central, regional and local levels will help bolster outcomes in women’s labor productivity and human capital. 36. Fragility: Targeting more citizen-centred, local level solutions, could help direct more resources to those areas where youth and other populations are vulnerable to rising tensions. Public programs that reach more closely to citizens (e.g. through e-vouchers, performance-based financing and local infrastructure committees) can create better incentives for both public and private actors to invest at the local level, and create opportunities for off-farm rural activities. Strengthening deconcentrated administration and decentralised authorities, including existing mechanisms for conflict management, can play a key role in consolidating security, resolving conflicts and facilitating inclusive delivery of services. This will help reinforce confidence between formal state institutions and the population. III. WBG PARTNERSHIP STRATEGY A. Lessons from the Completion and Learning Review (CLR) of the FY13-FY16 CPS 37. The following lessons derived from the review of the FY13-FY16 CPS have helped frame this CPF (see Error! Reference source not found. for further detail): x More can be done to mainstream gender across the portfolio to mitigate the high population growth issue – this was a significant weakness in the previous CPS – and to ensure inclusion of gender outcomes in the results matrix. x There is a need to find strategies, including possibly outsourcing to civil society organizations (CSOs), to mitigate the effect on World Bank projects of insufficient counterpart staff in regions experiencing prolonged insecurity. x Emergency operations in a fragile environment such as Niger are more effective when they prioritize actions focusing on the immediate restoration of productive assets for food-insecure rural households, than trying to address medium-term development objectives. x Engaging hard to reach communities and making a reality of decentralization ambitions requires significant preparation and incentivizing of key counterparts. 12 x Ensuring greater national leadership of projects may require different delivery mechanisms, simpler program design, earlier engagement of technical counterparts, and better linkages across the WBG portfolio. x Portfolio-wide efficiencies and synergies are needed to maximize the reach of WBG staffing resources in Niamey, and dedicated to Niger, which are limited in number. x Effective monitoring and evaluation (M&E) of World Bank-supported programs requires strong results matrices. x Measures to address climate change need to be better integrated into the WBG’s portfolio. x There is value in a firm but supportive dialogue in aligning the GoN’s view on safeguards with that of the WBG as exemplified by the Kandadji Program. x The Niger lending program would benefit from better linking the advisory services and analytics (ASA) program to emerging challenges and knowledge gaps. B. In-country Consultations 38. Consultations on the CPF strategic directions took place during the first week of November 2017 (Annex 10: Country Consultations). They included in addition to Government officials; parliamentary members, universities and research institutes, non-governmental organizations (NGOs) and development associations, the private sector, decentralized entities, and development partners (DPs). Discussions were held in Niamey, Agadez, Dosso, Tahoua and Zinder. The consultations generally confirmed the choices made in the proposed CPF. Parliamentarians raised the issues of ICTs, Human Immunodeficiency Virus/Acquired Immune Deficiency Syndrome (HIV/AIDs), education, irrigation and the mining sector. The private sector stressed the importance of youth entrepreneurship, the modernization of education, the need to do more to include people with disabilities, and the important role of IFC to promote inclusive private sector led growth. Other issues raised included the importance of decentralizing government functions and formalizing the informal private sector. C. Government Program and Medium-Term Strategy 39. The GoN stated its development objectives in its Vision 2035. The Vision proposes a long- term strategy for a prosperous and peaceful country with a diversified and dynamic economy that can create jobs for its young population. The key priorities of the 2035 Vision include the overarching goal of bringing demographic pressures under control and: (i) the restoration of security; (ii) extension of public functions; (iii) strengthening of human capital; (iv) transformation of the productive sectors, particularly rural; (v) further improvement to the business environment; and (v) pursuing prudent macro-economic policy16. 40. In line with its Vision 2035, the GoN prepared the Economic and Social Development Strategy for 2017-2021 PDES. The PDES aims to bring about a transformation of the country at all levels and to eradicate poverty and inequality. It comprises five core areas of focus: (i) cultural renaissance; (ii) social development and demographic transition; (iii) acceleration of economic growth; (iv) improvement of governance, peace and security and (v) sustainable management of the environment. Its goals are to reduce the incidence of poverty from 39.8 percent in 2016 to 31.3 percent in 2021, achieve an average annual economic growth rate of seven percent, and raise the tax rate to 20 percent. The PDES also aims to achieve the structural transformation of the economy by 16 Vision 2035 is aligned with the United Nations (UN) 2030 Agenda for Sustainable Development and the Paris Agreement under the UN Framework Convention on Climate Change and published Niger’s Nationally Determined Contributions (NDC). 13 strengthening the secondary (manufacturing) sector, including through a profound transformation of the rural economy, a modernization of public administration and a revitalization of the private sector. 41. The GoN has shown a strong commitment to address critical FCV risks. Beyond steps towards improving security and addressing grievances through the PDES and sector policies, the authorities have recognized the need to monitor and address multiple short- and long-term conflict and fragility challenges. Niger has forged a strong nexus between security, mediation and development, in part through an innovative mechanism for early warning and mediation. The High Authority for Peace Consolidation (HACP) supports early mediation through a network of local and community actors with feedback to the HACP when there are signs of heightened tension in a particular region or community. It is highly dynamic and coordinates closely with the security agencies, line Ministries, local administration and traditional authorities. In addition, measures have been taken to foster a sense of inclusion that cuts across divides such as the election or appointment of Tuareg leaders to national and local governance positions. D. Overview of WBG Strategy and Intervention Logic 42. This CPF is business unusual (see Figure 5). Existing development policies cannot succeed in accelerating structural transformation and poverty reduction in Niger without also addressing the unsustainable demographics and the drivers of FCV in the country. Following the SCD and aligning with GoN priorities, this CPF will first sharpen the focus (of the FY13-FY16 CPS) from resilient growth toward rural productivity; from reducing vulnerabilities toward building human capital; while maintaining a strong focus on governance. Given the significant uptick of resources, the WBG will be able to continue focusing on areas in which it has already demonstrated comparative advantage among DPs, such as economic infrastructure, multi-sectoral interventions and sub-sectors such as social protection (see Annex 7: Distribution of Official Development Assistance in Niger), while introducing new areas which have been identified as critical. Figure 5: ‘Business Unusual’ in Niger “Business unusual” in Niger’s FY18-FY22 CPF Lens: Mitigating FCV Risks CPF Focus Areas Lens: Women’s Empowerment Increased opportunities Increased female for youth and women in participation in LF 1/ fragile regions Increased rural productivity and Long term impacts Peaceful management and incomes Increased female labor sharing of agro-pastoral productivity1/ Fall in rate of growth of resources population Increased per capita Improved management of Better governance incomes including women Female public resources and local for jobs , service agency Improved citizen satisfaction conflict resolution delivery and growth in state institutions Reduced number of security Increased resilience to Increased reproductive / conflict incidents future shocks in vulnerable control by women; fall communities Improved human in desired fertility capital and social Plus spatial Integrated response to protection Early child-bearing and lens crisis-affected marriage delayed communities 1/ Also enabled by access to digital services 14 43. Selectivity will be achieved by introducing three new lenses/filters in the program to simultaneously address gender, fragility and spatial inequities. These include: (i) measures to mainstream female empowerment, agency and opportunity across the WBG program to support the needed transition in fertility; (ii) an integrated set of measures to address drivers of FCV and mainstream FCV-related issues throughout the portfolio; and (iii) a specific geographical focus that will target multi-sectoral investments in high poverty rural areas, and other interventions in fragile areas such as the Diffa and Tillaberi regions. These lenses will interact with the three focus areas of the CPF namely increased rural productivity and incomes; better governance for jobs, service delivery and growth; and improved human capital and social protection. During the CPF period the WBG will look to test and evaluate innovative approaches that seek to sharpen the focus of the three lenses. In addition, this CPF will also support renewed efforts by IFC and MIGA to enable private investments in Niger, including through de-risking mechanisms. 44. The CPF pursues measures that support female empowerment in the short term that will contribute to also addressing risks of fragility, conflict and social resilience in the medium term. Over time, a more productive labor force and smaller, healthier families, will increase per capita incomes. As labor market outcomes for women improve (e.g. due to improved schooling for girls and active support for women in the labor market) the opportunity cost of marriage and childbearing should increase, leading to a decline in fertility. Meanwhile as women’s desired and actual expected fertility rates fall, and the age of marriage increases, girls and women may dedicate more time to income- earning activities. Population growth will slow, easing the pressure on land and natural resources and the risk of FCV. Looking beyond the horizon of the CPF, as incomes increase, demographic pressures will reduce and risks of FCV decline; this will feed back into greater investment in the rural sector, human capital and better governance in a self-sustaining virtuous cycle. 45. Helping women to safeguard the growth of their children is also key to their decision-making regarding family size. Over the last decade, Niger has successfully scaled up the treatment of acute malnutrition among under-five children. However, chronic malnutrition or growth faltering (which is more difficult to recognize), remains unaddressed. Interventions to prevent chronic malnutrition and promote healthy nutrition behavior (such as exclusive breastfeeding and appropriate complementary feeding), as part of the Essential Family Practices package, are being successfully implemented at the community level, mainly by NGOs. However, coverage is very low and interventions are not being implemented in the same areas as other cross-sectoral determinants of child welfare such as water and sanitation and agriculture (particularly husbandry of small livestock at community level). 46. Addressing FCV risks will require responding to existing crises and reducing drivers of potential further fragility and conflict. Through an interrelated set of activities, the WBG will focus on: (i) addressing short-term drivers of conflict and fragility in part by targeting support to the most fragile and crises-affected regions; and (ii) medium-to long-term drivers through investments that strengthen institutions that manage risks, and support social cohesion. To support access to the IDA18 RMR window, three priority areas have been identified by the RMR Implementation Note which is being finalized: (i) increasing opportunities for youth and women in fragile regions and supporting the peaceful management and sharing of agro-pastoral resources; (ii) strengthening crisis prevention, preparedness and response, and (iii) reducing grievances through more equitable and transparent institutions and improved local governance and service delivery. Accompanying the design and implementation of the World Bank’s operational portfolio with a robust ASA program will also be key to ensure the integration of a fragility and conflict lens in all operations, notably those financed under the RMR. This will include fragility and political economy analysis in key sectors, and tools to measure and monitor FCV risks. 15 47. Thus, the Niger CPF will also have a spatial focus in four main regions, those with the highest levels of poverty and fragility (Figure 6). Tillaberi and Diffa are already home to over 300,000 displaced persons and face increasing risks from regional conflicts, while around two thirds of Niger’s poor live in the Maradi (which alone accounts for 30 percent of the poor) and Zinder region in the south of the country. As noted in Section II above, these regions also have the highest levels of fertility in the country. Figure 6: Geographic Focus of the FY18-FY22 CPF The NIGER CPF is focusing on 4 regions The two regions with conflict and refugees The two regions with highest poor population and fertility ZINDER: TILLABERI: MARADI: DIFFA: • 25% of poor in Niger 60,000 displaced • 30% of poor in Niger 280,000 displaced • 8.6 fertility rate persons • 9 fertility rate persons E. Focus Areas and Objectives supported by the WBG Program 48. The FY18-FY22 CPF comprises nine objectives, clustered in three Focus Areas. These are aligned with the main constraints and interventions identified by the SCD (Error! Reference source n ot found.). The nine objectives are a selective sub-set of actions proposed in the SCD. The criteria used for this selection include: (i) alignment of proposals with the Government’s own strategic priorities; (ii) their likely contribution to the twin goals of reducing extreme poverty and boosting shared prosperity; and (iii) the extent to which their delivery matches areas of comparative advantage within the WBG (see Annex 7: Distribution of Official Development Assistance in Niger). Together they seek to operationalize the underlying logic of women’s empowerment as a means to address demographic pressures, the need to address risks of conflict and fragility, and targeting to reduce spatial inequities without which it will be difficult for Niger to achieve the gains to which it aspires. 16 Figure 7: CPF Alignment Constraints & interventions CPF Objectives and Planned highlighted in SCD Lending 1. Low Rural Productivity Systematic biases in rural sector CPF Focus Area I: Increased (finance, inputs, tenure, etc.) Rural Productivity and Incomes Low on-farm productivity and access to Increased rural production with farm inputs (especially for women) diversified output in the agriculture and livestock sectors Low productivity of livestock (especially small ruminants) animal health services, Improved availability of land management, destocking etc. productive infrastructure for trade in rural areas Productive capacity of vulnerable populations CPF Focus Area II: Improved Market access, logistics and local Human Capital and Social Protection Features in Vision 2035 transformation Increased access to quality 2. Inadequate human capital health services Skills & competencies (with focus on girls’ Increased access to quality education & women’s economic education and training services Systemic governance failures that affect Improved social protection the health and education sectors system and ability to manage forced displacement Quality of teachers & health care Health behaviors (reproductive health, CPF Focus Area III: Better hygiene, nutrition, child care) Governance for Jobs, Service Delivery and Growth 3. Poor governance Strengthened public finance and human resource management Female agency & citizen-centered service for improved service delivery delivery Streamlined regulatory framework for private sector & Security risks & stressors to stability export development Lack of economic opportunities Improved access to digital (mining, cities, trade and business) economy Improved urban environments Public financial Management PFM for income generation & growth Focus Area One: Increased Rural Productivity and Incomes 49. The first Focus Area, ‘Improved Rural Productivity and Incomes’, consists of two outcomes, which aim to increase Niger’s low levels of productivity and household incomes in rural areas. They comprise a first and important step on the path towards structural transformation: (1) increased rural production with diversified output in the agriculture and livestock sectors; and (2) improved availability of productive infrastructure in rural areas. 50. The WB will adopt a multi-sectoral rural investment strategy to boost productivity and diversify agricultural products of smallholders (especially women) and to help resolve tensions over natural resources. This strategy will combine innovative IDA projects with development policy 17 financing. The investment program will build on ongoing programs in farm productivity, social protection and energy, and add a pipeline in rural finance and mobile phone connectivity. It will also support the provision of water and sanitation in areas of the Niger Basin affected by the construction of the Kandadji dam. Special targeting will ensure that interventions disproportionately benefit women farmers and women miners and reach communities in fragile regions. At the same time, programs will help to strengthen local mechanisms for managing shared water, land and other natural resources to reduce tensions and potential for conflict. A series of cross-sectoral development policy operations (DPOs) may support the policy framework for enhancing access to finance, reducing the cost of owning productive assets and supporting value chain development. Through its Creating Markets Advisory Window, IFC will seek to provide a funding mechanism for transformational advisory projects to unlock investment opportunities, while exploring opportunities to use the IDA Private Sector Window (PSW) to de-risk potential investments in infrastructure, agri-business, and agri- finance. MIGA is actively seeking opportunities in the infrastructure and financial service sector via its political risk insurance products—namely, transfer and convertibility, expropriation, war and civil disturbance, and breach of contract, the latter in the context of public-private partnerships (PPP) concessions. 51. To reach the most vulnerable households and fragile areas, the WB will push to “walk the last mile” using disruptive technologies and digital services as appropriate . Covering both the last mile and the “last woman” is notoriously difficult, particularly at the scale required to also reduce new and emerging FCV risks in Niger. Projects focusing on agricultural productivity will include innovation components with rural citizens at the center. They will be implemented by multi-Global Practice (GP) teams (governance, agriculture, poverty, finance, digital development, social protection), and remain relatively small (less than US$5 million) and typically finance five types of activities: (i) designing and field-testing last-mile, rural productivity-increasing approaches that are scalable; (ii) preparing and adopting legislative measures to accommodate innovative last mile approaches; (iii) studies and technical assistance (TA) (including audits; value chain analyses; political economy analyses) to identify and address bottlenecks to a productive rural environment; (iv) preparing for scale by exploring the best ways to engage and leverage private sector financing; and (v) spatial and cross-sectoral coordination, monitoring and overall management. These components will not only stimulate learning and information exchange between GPs about what approaches are most effective in Niger, but they will empower rural residents and contribute to building social resilience, and lay the foundation for a new generation of projects that are in a better position to reach beneficiaries more directly. Objective 1: Increased rural production with diversified output in the agriculture and livestock sectors Indicators: 1.1 Increased yields (Millet, Sorghum, Cowpea and Irrigated Rice) in target areas 1.2 Percentage increase in yields produced by targeted beneficiaries (men and women) in selected livestock value chains 1.3 Number of mining permits issued to artisanal miners 52. The World Bank will support reforms in agriculture through a mix of policy and investment lending, with a focus on creating opportunities for women and youth. A DPO series will support institutional and legal reforms. These include agricultural input markets (seeds, fertilizer), legal reforms enabling Water User Associations, increased coverage of irrigation schemes, formalization of artisanal mining supported by technology transfer and expansion of the geographical coverage of mobile networks and services to support the roll out of e-extension and e-voucher services and the availability of mobile payment services in rural areas. The proposed DPO series will also contribute to Climate Change co-benefits currently estimated at nine percent. 18 53. The World Bank will also help to strengthen economic opportunities in agriculture and pastoralism in conflict-affected regions and include at-risk regions such as Diffa, Tillabery, Tahoua and Agadez. A combination of investments will aim to improve outputs, to increase cultivable area, to reduce rain-fed agriculture and to enable alternative trade routes for selected value chains. This will also allow the expansion of Bank’s engagement to strengthen institutions and tools for peaceful management of natural resources, including transhumance areas and corridors and water points. CPF interventions to increase yields in rain-fed agriculture will combine interventions aiming at building the seed supply chain (foundation seeds production scheme, seed use promotion, e-vouchers), improving soil fertility, soil and water management, implementing inclusive rural mechanization programs, strengthening the research–extension–farmer linkages, which limit transfer and adoption of technology with more private interventions and better use of mobile phones and digital services, and designing and implementing local climate change adaptation plans at commune level. In each intervention, where possible, there will be an explicit target for reducing gender inequities in access to inputs, and opportunities for off-farm rural employment. Attention will also be given to nutrition- sensitive issues for those working in the agriculture sector including training sessions to improve dietary diversity as well as understanding of early-years nutritional needs in young children. 54. A proposed Agriculture and Livestock Transformation Project (expected in FY19) will develop sedentary mixed crop-livestock and commercial livestock systems. This will initially encompass cattle, small ruminant production and meat processing, as well as the milk and poultry value chains which are particularly suitable for women’s groups. The project will scale up work on promising agri-value chains already piloted under the Agro-Sylvo Pastoral Export and Market Development Project and its AF, and factor in impact evaluation (IE) results on the gender- differentiated effects of the interventions on producer group and household production and revenue, and the effects of the matching grants on women’s bargaining power and access to markets. 55. To deepen its engagement in the agribusiness sector, IFC will explore a range of private sector-related initiatives. It will explore linking smallholder farmers with export potential in selected value chains (e.g. onion) with off-takers and buyers to increase access to markets and financing. Given the inherent risks of financing agribusiness projects in Niger (rain unpredictability, lack of collateral, low yields, financial institutions’ limited resources/capacity), IFC will explore working with these off- takers and buyers to provide risk mitigation instruments to allow financial institutions to increase their lending to agriculture. IFC will continue to support the agriculture sector through the Niger Irrigation Project (NIP), which is part of the Pilot Program for Climate Resilience (PPCR)17. Phase I of the project will test the commercial viability of selling improved irrigation systems by the private sector to 1,200 small and mid-sized farmers in Niger to improve their productivity by at least 50 percent in three years and strengthening their resilience to climate change. Provided the first phase is successful, Phase II is expected to involve an IFC investment and advisory services program to increase the scale of private sector involvement in improved irrigation systems in Niger. IFC will also explore the leasing of agricultural equipment as a means of providing medium-term financing without the requirement of collateral. It will seek to develop agri-finance solutions to support the expansion of the agribusiness sector and explore opportunities to use the blended finance and local currency facilities of the IDA18 PSW. The World Bank and IFC will together seek to find ways to stimulate the private sector. 56. Complementary approaches among WBG operations will be exploited to maximize their joint impact in the agriculture sector and on women farmers. Opportunities to coordinate with the Safety Net Project will be explored with a view to helping women farmers find farm labor (through project agents) and providing cash transfers to help pay for the labor. Other productivity boosting measures will also be explored such as community-based childcare and financing of labor-saving tools 17 The Pilot is under the Community Action Project for Climate Resilience (P132306) FY13 19 and machinery. Small-scale irrigation investments will be financed under the regional Sahel Irrigation Initiative Support Project (FY18). Larger scale irrigation in the Niger River area (downstream of the Kandadji dam) will be developed to expand the area available for agriculture under the proposed Agriculture and Livestock Transformation Project (expected in FY19). The planned FY19 regional Building Climate Resilience in the Niger Basin Project will address the issue of massive erosion in the watershed, which causes sedimentation in the Niger River as well as recurrent flooding downstream from the Kandadji dam. Improved soil and water conservation measures will also help increase food production and household incomes. 57. The World Bank will also seek to enhance mining’s contribution to sustainable development at regional and community levels. The World Bank will build on pilots developed under the Competitiveness and Growth Project (FY12) and in the Governance of Extractive Resources for Local Development (GOLD) Project (expected in FY19). Under this operation, World Bank support will help to: (i) formalize the artisanal and small-scale mining sector to increase productivity and improve the social and environmental footprint, with a strong focus on improving the position of women in the sector; (ii) improve the climate for attracting sustainable investments to the sector; (iii) improve policies and mechanisms for the collection and (participatory) management of extractive revenues at the national and local levels. A sector risk and assessment of artisanal gold mining will be undertaken to better understand the political economy of this sector and to identify ways to address the risk of grievances and conflict in these critical regions. Objective 2: Improved availability of productive infrastructure for trade in rural areas Indicators: 2.1 Number of rural weekly markets benefitting from all-season road access 2.2 Number of additional households provided with electricity access from new solar mini-grid systems (separate targets for male and female headed households) 58. In transport, the World Bank will focus on improvement of access roads in key agriculture areas identified for market development and irrigation potential. It will develop a simple maintenance mechanism to be implemented by rural communities – with a focus on the needs of women - to improve the sustainability of the investments, and promotion of Intermediate Means of Transport (IMT). The World Bank will also support Niger’s National Transport Strategy (2016-2025) and ensure that transport initiatives are aligned with agriculture projects financed by the World Bank and other DPs. IFC will look to build on its advisory with the Government in relation to the Dosso Dry Port concession to intervene in the transport sector, including roads. It will explore the use of the IDA18 PSW facilities to mitigate payment risk and increase participation of the private sector. In the airport sector, IFC will explore whether Niger can be included in IFC’s regional airports initiative with the objective of increasing fiscal revenues and improving service quality through increased private sector participation. 59. In energy, this CPF will build upon ongoing projects in the sector which seek to increase access to energy both on grid and off grid. By 2025, 85 percent of the population is expected to be served on-grid; five percent by decentralized mini-grids and 10 percent by basic service for light and cell phone charging through stand-alone solar systems. The World Bank is actively involved in supporting access to electricity in rural areas in coordination with the Islamic Development Bank. It is supporting the development of a National Electrification Strategy which will, among other things, identify new interventions to be supported through additional financing (AF) for the Electricity Access Expansion Project in FY17 such as expanding its scope to rural areas through further investments in densification, reinforcement and extension of the distribution system. The project will also support an updated PPP framework, including technical and quality of service standards for rural mini- concessions. In addition, a multi-sector DPO is planned that could include legal reforms in the power 20 sector including strengthening the financial health of the Nigerian Electricity Corporation (Société Nigerienne d'Electricité, NIGELEC), the state-owned distribution company, and supporting the off-grid expansion agenda. TA to strengthen the Regulatory Body’s capacity to set up tariff systems is also planned. If the government is open, IFC and MIGA may explore private sector participation in NIGELEC with the aim of increasing electrification rates, and reducing technical and commercial losses. 60. The World Bank will promote access to solar power and measure progress among households headed by women as well as men. IFC will explore opportunities to support this initiative. The initiative is will potentially draw on concessional resources to crowd in private capital, possibly as part of the Sahel solar initiative, which includes Niger. The Niger Solar Electricity Access Project will support 16,500 rural connections through development of subsidized, privately operated mini-grids in large localities that lie outside the national utility’s concession area. It will also provide support to further develop solar energy generation in Niger including feasibility studies, capacity building, and transaction advisory services for private sector investments in solar independent power producer (IPPs) projects, particularly in secondary cities. A Solar Generation Partial Risk Guarantee is planned in the CPF (FY20) to de-risk private sector investment in solar generation. 61. The water and sanitation interventions proposed in this CPF build upon on the water, sanitation and hygiene (WASH) diagnostic (FY16). The gap between rural and urban access rates is more pronounced in Niger than in other African countries, and the trend in access to sanitation is particularly worrying: open defecation has increased due to population growth with over 14 million people relying on this practice as of 2014. Water collection is the responsibility of women, placing a significant burden in time (typically mobilizing up to six hours per day for a household including water needs for cattle and garden) and in personal safety. The Kandadji Resettlement Action Plan (RAP) 2 Additional Finance (AF) will contribute to rebalancing and increasing the financing of water and sanitation in areas of the Niger Basin affected by the construction of the Kandadji dam where the gap in both access and quality of service is the most pronounced (See Box 2). Box 2: The Kandadji Program The Niger Basin extends from the mountains of Guinea through the arid and semi-arid lands of the Sahel. It has tremendous potential for infrastructure development, including hydropower (up to 6,000 megawatts (MW) installed capacity), a four-fold expansion of irrigation (to 2 million ha) and the potential to create 1.7 million jobs. The World Bank is one of 11 donors co-financing the Kandadji Program which includes construction of a dam, a hydropower plant, electric transmission lines, a road, socio-economic infrastructure and services, local community development, irrigated agricultural development, resettlement and livelihood restoration. The development objective of the project is to increase access to water for agriculture development and capacity for energy generation in the Niger part of the Niger Basin. Resettlement of 10,000 people at the dam site has been completed. Construction of the Kandadji dam will take place in two phases. The first phase at a dam height of 224 meter will not affect the territory of Mali and the scope of resettlement required for reservoir impoundment will be in the order of 35,000 people. The total cost of the first phase is estimated at approximately US$430 million of which the World Bank will contribute US$150 million. The second phase at a dam height of 228 meter is scheduled to begin in FY23, following the end of the proposed new CPF, and only once: (i) the resettlement for the first phase has been satisfactorily completed and (ii) the GoN has demonstrated its ability to manage complex resettlement by resettling more people as required by a reservoir height of 228 meter (e.g. another 20,000 to 30,000 people, in addition to about 1,000 people in Mali). A US$150 million AF for the Kandadji program is envisaged to cover a share of the costs associated with the resettlement for a dam height at 224 meter, under a RAP designed as a broader regional development program, which would also facilitate financial commitments from donors who would be interested in financing specific cost items, such as roads and other infrastructure. 21 Focus Area Two: Improved Human Capital and Social Protection 62. The second Focus Area, ‘Improved Human Capital and Social Protection’, comprises three objectives that together aim to deepen Niger’s human capital base and protect the most vulnerable. The first objective is to strengthen both the accessibility and quality of health services. Better accessibility will be supported with a focus on two areas: reproductive health and nutrition particularly in relation to strengthen Early Child Development. The World Bank will support improvements in the quality of care (especially child and maternal care) by scaling up the Performance Based Financing (PBF) approach, given the very positive evidence coming from PBF experiences in Niger and neighbouring countries. When it comes to the second objective, e.g. education, the Bank will place a particular emphasis on quality and gender parity and also work to increase access. Regarding quality of learning, the World Bank will step up its support for the national languages curriculum reform, functional literacy training, and mathematics and sciences education. These efforts will be complemented by additional support to build appropriate skill sets among young people and in strong connection with the overarching CPF objective of increasing rural productivity and incomes. The third key objective is to continue supporting the set-up of resilient and scalable social protection systems, which extend Niger’s capacity for managing increasing flows of forcibly displaced people and builds resilience to future shocks, including conflict and natural hazards. It will also reduce protection gaps between men and women. 63. In addition to girls and women’s empowerment, another cross-sectoral priority for World Bank operations is the Early Years agenda, for which Niger is among a first wave of countries. To boost human capital development, health, nutrition, pre-primary education and parenting programs are good operational entry points in Niger. The World Bank’s ambition is to reduce the prevalence of stunted children aged 0-59 months while enhancing the number of children benefiting from early stimulation and pre-primary education. Under the Population and Health Support Project, the World Bank targets women of reproductive age, pregnant and lactating women, adolescent girls and children under-5 to increase well-nourished children with greater physical and cognitive capabilities. In pre- primary, the preschool rate enrolment is extremely limited (7.2 percent in 2016) with high variability between urban and rural area. The Basic and Secondary Education Project (expected FY19) will therefore have one component on pre-primary education with a focus on community-based pre- school institutions and the training of early childhood education teachers. Finally, the ongoing Niger Safety Net Project (FY11) helps protect the poorest families with young children against poverty with cash transfers combined to parenting practices conducive to early childhood development Objective 3: Increased access to quality health services Indicators: 3.1 Share of women (aged 15-49) delivering with trained health professional 3.2 Stunting prevalence in children aged 0-59 months (percentage) 64. The World Bank’s current engagement in this area aims at helping Niger to bring demographic growth rates down to sustainable levels, improve maternal health and nutrition, and empower women and girls. Through the Niger Population and Health Support Project (FY15), the World Bank has targeted reproductive, maternal, new-born, child health and nutrition services in selected areas of Niger, while the Sahel Women’s Empowerment and Demographics Dividend Project (FY15) has aimed at increasing regional capacity and catalyzing national responses to improve women and adolescent girls’ empowerment and their access to quality reproductive and maternal health products. Both projects have recently started to generate results. For instance, the first project has helped more than 590,000 women and children to access reproductive and nutrition services, while Sahel Women’s Empowerment and Demographic Dividend (SWEDD) has been instrumental in furthering the agenda for women’s empowerment, which is now fully endorsed in the Government’s 22 strategy. The Population and Health Support Project also includes an important component on preventing chronic malnutrition during the early years and building institutional capacity to address stunting. World Bank support has also increased access to high quality interventions for the prevention and treatment of malaria and Preventative Chemotherapy for Neglected Tropical Diseases (PC-NTDs) across borders through the Sahel Malaria and Neglected Tropical Diseases Project (FY16). This project will continue to support cross-border collaboration and collective actions to scale up community based interventions to control and eliminate malaria and PC-NTDs. These interventions are supported by World Bank support for measures that strengthen public finance and human resource management to improve service delivery in targeted ministries. 65. Building on existing activities the World Bank will finance a program for results (P4R) health investment project, which will help combat HIV/AIDS. By extending the existing PBF scheme in the health sector the World Bank will help increase the accountability of, and provide direct funding for: (i) NGOs and community-based organizations operating in communities that are at the centre of the HIV/AIDS pandemic; and (ii) health facilities and their health workers. This will help: (i) attract more and better qualified health workers to work in remote areas (thus reducing the inequity of geographical distribution of the health workforce); (ii) reduce absenteeism; and (iii) incentivize improved performance by health workers and hence help improve the quality of care. The PBF mechanism will also improve fiscal decentralization by providing a reliable channel for reimbursing health facilities operating within free care programs. The World Bank will also finance an ASA piece focusing on decentralization of service delivery and human resources for health. This will complement an ASA on improved social accountability and service delivery. 66. The World Bank will complement the PBF operation with measures to bring payroll and other human resource management decisions closer to the point of delivery. This will improve accountability and contribute to improving service delivery. The work will draw on the results of ASA on decentralization and other work and comprise two initiatives supported by the multi-sectoral DPO: (i) the creation and deployment of a new cadre of community health workers (along the lines of the Health Extension Workers in Ethiopia); and (ii) the decentralization of human resource management in the health sector. Deconcentrating and decentralizing payroll and introducing electronic payment systems of wages using Mobile-Banking, wires and cheques, for example, would enable health finance departments to check whether a given health worker is still working where s/he has been appointed. As part of the health operations, the Bank will finance additional Service Delivery Indicator (SDI) surveys in 2019 and 2022. 67. The World Bank will continue to support activities to strengthen and promote behavior change with respect to reproductive health and fertility, including engaging men as allies. The SWEDD project is scaling up the écoles des maris (“husband schools”) model that was first piloted in Niger by United Nations Fund for Population Activities (UNFPA) and which saw the rate of professionally attended births in project areas increase from 15 to 74 percent. The SWEDD is conducting a rigorous IE to generate more evidence that could support further improvements in the effectiveness of the intervention. The World Bank will also work with community health workers through social protection programs; and support use of communication tools: national and community radio, TV, and other media to encourage changes related to reproductive health, hygiene, nutrition, and early stimulation for optimum child development. This strategy will be implemented through the upcoming health P4R expected in FY20 as well as through a possible AF for the existing Population and Health Support Project (FY15). 68. Finally, the World Bank will help build national capacity for outbreak preparedness and response. It will provide dedicated funding to strengthen national and regional cross-sectoral capacity for collaborative disease surveillance and epidemic preparedness in Niger. This will be addressed 23 through Niger joining the FY18 Regional Disease Surveillance Systems Enhancement (REDISSE) regional initiative. Objective 4: Increased access to quality education and training services, particularly for women Indicators: 4.1 Children enrolled in at least one year of pre-primary schooling (percentage) 4.2 Women and adolescent girls trained in literacy campaigns or second-chance programs 69. The current education portfolio includes two projects under implementation on basic education and youth skills development, as well as some TA. Under the FY18-FY22 CPF, World Bank support will include a multi-sectoral DPO that will help strengthen human resource management. Policy lending will be underpinned by proposed investment project financing in basic and secondary education in FY19 and a multi-sectoral analysis of governance in the education sector, including social accountability and service delivery, and a study of on higher education. The education project will also finance the second and third rounds of the SDIs in Education (2019 and 2022). 70. The World Bank will support a range of policy reforms to improve financial and human resource management in the sector. These could include: (i) a medium-term expenditure framework for the education sector; (ii) improvements to the human resource management system, including reform of pre- and in-service teacher training to align with proposed curriculum reform; (iii) curriculum reform itself; (iv) establishment of a national learning assessment; and (v) mechanisms for inter- governmental resource transfers and transfers to schools. The latter could direct a higher proportion of funding directly to schools to finance activities managed by local school committees, which could help not only to compensate for the weak implementation capacity of the central government, but also empower local citizens in decision-making as a measure to reduce grievances and build social cohesion. 71. In addition, the proposed World Bank support would tackle weaknesses in the primary and secondary sectors with a focus on girls’ education. In primary education, the World Bank would help by: (i) scaling up adult literacy training for women based on the model previously tested under the Support to Quality Education Project (FY15); (ii) deepening reform of the national language curriculum (with a focus on early grades); (iii) increasing teacher effectiveness; (iv) strengthening school committees’ capacity especially regarding school improvement plans and remediation; and (v) building evaluation capacity. The World Bank will also support interventions to foster early childhood development (i.e. pre-schooling and nutrition). In secondary education, World Bank support would: (i) help implement a new low unit cost schooling model at lower secondary level in rural areas to boost enrolment of rural children, particularly girls; (ii) selectively expand the school network at upper secondary level; (iii) raise the quality of teaching through teacher development; (iv) support remediation to reduce the high dropout rate in schools; and (v) improve the teaching of math and science. 72. The World Bank will increase its focus on girls’ education, by scaling up its support for promising interventions piloted by the SWEDD and health projects at primary and secondary levels. These include: (i) providing safe and affordable accommodation for girls in secondary schools (either in building community-managed boarding schools or in paying urban families to take care of these girls), (ii) incentivizing families for sending and keeping their daughters in secondary schools, and (iii) sensitizing teachers about specific girls’ needs. 73. The World Bank will also increase its support for technical and vocational education and training (TVET). Proposed World Bank support includes AF under the Skills Development for Growth Project (FY13) with a focus on rural employment. This would support: (i) improving formal training 24 courses with an emphasis on agriculture and livestock; (ii) short term skills development and apprenticeship programs for out-of-school youth; and (iii) other measures to support youth employability and productivity in rural activities. Other activities to be supported under the AF could include: curriculum reform, training of trainers, development of new models of private sector management of TVET institutions; access to financing to encourage self-employment, business creation and expansion of income-generating activities; and equipping young graduates from the general education system with vocational skills. These interventions will strengthen the supply of skills, and thus complement other WBG interventions aimed at boosting demand for jobs including efforts to formalize the artisanal mining sector and boosting the local content employed in the extractives sector. Interventions will specifically target fragile and “at risk” regions and communities to help address the vicious cycle of insecurity and lack of opportunities for youth. Objective 5: Improved social protection system and ability to manage forced displacement Indicators:18 5.1 Number of poor households covered by safety nets programs 5.2 Number of individuals participating in productive employment or employment programs 5.3 Number of refugees receiving social service benefits from a vulnerability-based assistance system 74. The World Bank will continue to support the development of an effective and adaptive safety net system as well as measures to address the socio-economic aspects of displacement. Support for the safety net system will increase access of poor and vulnerable people to cash transfer and cash for work programs and be more responsive to shocks while building households’ resilience. Within this context, the World Bank will extend the Safety Nets Projects (FY11 and FY16) through additional financing, and focus on the medium-term socioeconomic dimensions of forced displacement19, while providing short-term assistance to help the Government weather the current situation. The approach aims to help displaced persons to take advantage of economic and social opportunities that may be available in the environment where they live. In parallel, it supports host communities to manage the additional pressure created by an inflow of forcibly displaced persons where security concerns remain high. 75. World Bank support will build on existing support for forcibly displaced people and their hosts. Niger is currently hosting over 165,645 refugees and 153,000 internally displaced people. The Safety Net Project (FY11) is already supporting the development of an effective safety net system with cash transfers and cash-for-work programs, including in the Tahoua and Tillabéri regions. The Skills Development for Growth Project (FY13) targets young people in all eight regions of the country and would incorporate about 3 500 young displaced persons in Tillabéri and Diffa regions. In addition, the Community Action Project – Phase 3 (FY13) with its AF approved in FY17 targets small-scale rural producers including in disadvantaged and marginal areas, which also overlap with areas hosting refugees. Finally, the Disaster Risk Management (DRM) and Urban Development Project has already conducted selected DRM interventions in areas hosting refugees (Diffa region) and has activated the Immediate Response Mechanism in FY17 at the request of the Government. 76. The FY18-FY22 CPF will explore opportunities to further support the Government as it manages the effects of forced displacement. The Niger Forcibly Displaced Support Project Initiative (expected in FY19) will build on the findings and recommendations of the recent Risk and Resilience Assessment (RRA). The project, under preparation, will use a multi-sectoral approach and seek to 18 All indicators include a gender-specific dimension. See Result Matrix (Annex 1: Results Matrix).) 19This approach, endorsed by the Development Committee (2016 Spring Meetings), is part of its development mandate, and of its efforts to achieve the SDGs and its own goal of eradicating extreme poverty by 2030. It is complementary to, but distinct from, the rights-based protection agenda and short-term crisis responses. (Niger Forced Displacement Note, 2017 ).) 25 improve access to basic services and economic opportunities for forcibly displaced and host communities in selected areas of the Diffa Region and the Malian border (Regions of Tillabéri, Tahoua and Agadez), targeting the following categories of beneficiaries: refugees, host communities, internally displaced, returned, repented, youth, women, children, and vulnerable people. Potential activities, under assessment, to be carried out by the project include interventions to support economic recovery and economic development in sectors such as agriculture (including livestock), markets and trade, housing, education, health, water and sanitation, and maintenance services, and to strengthen decentralized capacity, including for the delivery of basic services for both host communities and forced displaced population. A FY21-22 Lake Chad Regional Recovery will contribute to building resilience of populations affected by conflict and forced displacement and increasing economic opportunities in the medium to long term on by addressing several issues that demand cross-border collaborative solutions (such as restoring livelihoods around the Lake and associated commercial corridors). Focus Area Three: Better Governance for Jobs, Service Delivery and Growth 77. The third Focus Area, ‘Better Governance for Jobs and Growth’ addresses four distinct outcomes that together aim to strengthen the institutional and regulatory environment for jobs and growth: (i) improved access to digital services to strengthen citizens’ voice; (ii) stronger public finance and human resource management for better service delivery; (iii) a streamlined regulatory framework for private sector development; and (iv) improved local governance and urban environments for income generation and growth. The measures under this Focus Area will also help improve the country’s capacity to prevent, monitor and respond to conflicts and violence. 78. Improving governance in Niger will also require transcending the top down, state-led approaches of the past. As already noted, business as usual is simply not an option for Niger. The change of trajectory will need to include new approaches to engage users more directly and open up to a wider group of providers and suppliers of public services. The WB will support greater budgetary empowerment of citizens, increased user feedback and a modern identification system for citizens. This CPF will also support innovations in engaging the private sector (e.g. in expanding the use of mobile technology and digital services for service delivery), citizen-centered initiatives, (e.g. school committees), and NGOs (e.g. to reach to the last mile in insecure regions) to advance inclusive service delivery. De-concentrated administration and decentralized authorities can play a key role in strengthening the confidence between formal institutions and the population that can reduce grievances as a source of FCV risk, boost accountability and resilience. In addition to their role in monitoring and managing local tensions and security risks, some national institutions like the HACP can contribute to building confidence and capacity for local participation and for local solutions. Reforms in these areas at the central level will be expanded to the deconcentrated (sector and regional level) and local government level. 79. Strengthening governance in Niger will require regulatory and institutional changes to improve delivery of public services, increase social cohesion and free up private enterprise. Demographic pressure weakens the state’s ability to resist shocks and to provide quality basic services, especially in the already dysfunctional health and education sectors, where institutions struggle to adapt to the growing demand for services. Improving service delivery will also require not only increased resources, but also better allocation of those resources, institutional capacity building, policy and regulatory reform. To this end, this CPF will continue to prioritize strengthening of public financial management (PFM) (revenue mobilization and expenditure management) and public sector human resource management in Niger. 80. Both IFC and MIGA will seek to catalyze private capital in Niger, leveraging on WBG collaboration and the IDA18 PSW. These efforts should benefit from ongoing TA for implementing 26 investment climate reforms. IFC will work on expanding its footprint in Niger by actively exploring opportunities to use the Creating Markets Advisory Window and the IDA 18 Private Sector Window. A small formal private sector with predominately traders as opposed to long-term investors, and a lack of project sponsors that can meet IFC’s financing and environmental standards have constrained IFC’s ability to do more in the past. With its renewed strategy and enhanced WBG cooperation, IFC will seek to convert prospects into concrete investment opportunities. To do so, IFC will focus on value chains and synergetic interventions leveraging product innovation and partnerships as much as possible. An avenue would be to first use advisory services to build capacity and make prospective projects investment ready, especially in agriculture and irrigation. The Creating Markets Advisory Window could provide a funding mechanism for transformational advisory projects – such as the Sahel Irrigation Initiative - that may unlock investment opportunities. 81. IFC will explore opportunities to use the IDA Private Sector Window (PSW) to de-risk potential investments in infrastructure and agri-business. These activities, will likely benefit from the support of the WBG’s ongoing work on improving the investment climate by providing assistance to the government for the implementation of reforms aimed at facilitating private investment. IFC will endeavour to close opportunity gaps between men and women in its projects by integrating gender throughout in line with the IFC Gender Strategy Implementation Plan. MIGA will actively seek opportunities to support foreign private sector investment (i.e. FDI) into Niger, and may make use of the IDA-PSW MIGA Guarantee Facility to further de-risk eligible projects. (MIGA has no pre- determined envelope for guarantees over the CPF period). MIGA’s newly established Africa hub office in Senegal is expected to help the Agency identify opportunities for MIGA support. As much as possible, the WBG will apply the Maximizing Finance for Development (MFD) principles, so that public sector financing is used only when commercial solutions are not yet available, and concessional resources will always attempt to catalyse private capital (large and small) for greater impact and sustainability. Objective 6: Improved access to digital services Indicators: 6.1 Mobile market and internet mobile penetration rate 6.2 Increased in percentage points of people with a registered identity (ID4D) 82. The World Bank will work to identify and develop ways of using digital services to support citizen-centred approaches to service delivery and boost female agency. Applying such an approach at scale has become increasingly feasible thanks to advances in ICT, biometric identification, and engineering. Examples of citizen-centred approaches include: (i) designing publicly funded interventions on a smaller unit scale (small pumps rather than large irrigation schemes, off-grid electricity solutions, and mobile phones over fixed telephony); (ii) providing improved access to information (including through improved literacy); (iii) a better alignment of the incentives of service providers with results through performance-based financing, for example; and (iv) promoting private sector service provision, including by local entrepreneurs, where feasible. The World Bank will do this through fostering the expansion of digital networks in rural areas by the private sector and developing the use of key digital applications and services by the population. Under the proposed Digital Sector Development and ID4D Projects (FY19), the World Bank will support the development of digital applications and services and, in doing so involve the local youth entrepreneurship community. This will focus particularly on the following sectors: agriculture (developing digital services on market information, e-vouchers, etc.), rural finance (digital payment and micro-credit systems), health and education. Significant attention will be paid to digital literacy, so as to ensure effective and sustainable use of key digital applications and services by rural population, in particular women and youth. 83. The World Bank will also support GoN in developing a robust identification for development capability as a key enabler for better targeted government to citizen services. It will finance this 27 through the West Africa ID4D Regional Project. In addition, a multi-sector DPO is planned that could include reforms needed to unlock the development potential of the sector. Priorities include a wide range of sectoral regulatory reforms to improve competition ahead of the take-off of broadband internet markets, to using universal service fund resources to serve the uncovered and to implement and a transparent and efficient fiscal policy designed to generate a fair share of revenues for the public authorities as part of a pro-growth agenda to unlock sector growth. 84. In the context of the WBG Digital infrastructure initiative (DII), IFC will explore the possibility of supporting broadband penetration and access in Niger by; (i) working with the public and private sectors to reduce the cost of broadband access in this landlocked country through; (a) additional access to other active submarine cable systems in the region; (b) support for deployment of backhaul and metro access infrastructure; (c) support for further deployment of wireless connectivity in major cities; (ii) support Government in developing policies and regulations to create carrier neutral open- access networks, reduce tax, and levy burden etc. Objective 7: Strengthened public finance and human resource management for improved service delivery capacity Indicators: 7.1 Share of public sector agents paid through the new human resource Management Information System (MIS) 7.2 Expenditure outturn in health and education relative to budget 85. The World Bank will support the Government to strengthen core capacities of public sector agents while building the necessary operational systems for public and human resource management to create the needed foundation for sustained reform implementation. In doing so, it will directly support: (i) the modernization of human resource management including wage-bill management; (ii) identifying training needs in the administration and tailoring the supply of training accordingly, using local institutions to provide the training; (iii) piloting incentive systems for teacher deployment; (iv) planning and budgetary processes including budget-program reforms; (v) public investment management; (vi) procurement processes, execution and control; (vii) tax and customs administration reforms including reforms to improve the value added tax (VAT) system; (viii) cash management and treasury payment systems; (ix) budgetary and treasury information systems; (x) the setup of a national M&E system; (xi) access to information and improved transparency and, (xii) leadership enhancement and support to change management in the public sector. As part of the analytical work of the World Bank, an ASA of state owned enterprises (SOEs) will be undertaken to inform policy reforms of the public sector including mechanisms to improve fiscal oversight. 86. To improve service delivery at local levels the World Bank will explore opportunities to work with local agencies. The Local Infrastructure Development Project (FY08-FY13) paved the way for additional transfers of resources from central to local levels, but the transfer of responsibilities to local governments has yet to be effectively accompanied by corresponding financial resources. Local governments remain financed mostly by the limited revenues they collect at the local level or by DPs. Large mining firms are also investing in local development as part of corporate social responsibility. To improve service delivery at local levels the World Bank will explore working with the National Agency for the Financing of Local Governments (Agence Nationale de Financement des Collectivités Territorials, ANFICT) and the Nigerien Agency for Volunteers for Development (L’Agence Nigérienne de Volontariat pour le Développement, ANVD). The World Bank program will also provide support to institutions at the local level to help them play a positive role in dealing with conflicts and tensions. National specialized institutions have already proven capable of playing an effective role in addressing the risk of fragility and conflict – e.g. the HACP that contributes to anticipate and mitigate social, religious, and community tensions. Local institutions can also play a key role in strengthening 28 confidence between formal institutions and the population by consolidating security and conflict resolution Objective 8: Streamlined regulatory framework for private sector and export development Indicators: 8.1 Distance to frontier in Doing Business Survey 8.2 Share of adult population with an account in a formal financial institution (including bank microfinance, mobile finance) 87. To support private sector growth, the WBG will continue to support deeper investment climate reforms building on recent momentum and seek to initiate operations in trade facilitation and PPPs in infrastructure. Niger’s Doing Business Index ranking has improved from 158 in 2016 to 144 in 2018. Under the CPF special attention will be focused on further improving access to land and to trading across borders through a regional Transport and Logistics Corridor Project proposed for FY20. For a land-locked country like Niger, belonging to the most isolated region in the world, trade facilitation along the Niamey-Cotonou or Niamey – Ouagadougou - Lome corridors will increase the competitiveness of domestic products as well as access to regional trade and markets.20Accordingly, IFC will focus on promoting trade, micro and small enterprise (MSMEs) development through increased access to finance and fostering value chains and synergetic interventions. In line with IFC’s renewed strategic approach which aims to create markets, IFC will leverage the WBG’s comparative advantages and partnerships so as to convert prospects into concrete investment opportunities. Specifically, IFC will seek to forge partnerships with local banks to support the microfinance and SME sectors, and support agri-finance and value chain financing programs for banks and financial institutions, while providing risk management advisory services. Part of the access to finance intervention will include a leasing program aimed at assisting Niger to deepen its financial sector activities and enhance support to MSMEs. IFC will also continue to support the WBG’s work on the investment climate by providing TA to the Government for implementing investment climate and PPP reforms. Following on its recent PPP work in Niger, IFC will continue to seek opportunities to support Niger’s PPP agenda. MIGA is also exploring opportunities to support these and other new private investments in Niger through its provision of political risk insurance products. 88. In line with the Maximizing Finance for Development Principles which aim to encourage infrastructure development through the private sector and use scarce public and donor funds to crowd in private capital, IFC will aim to develop infrastructure through the promotion of PPPs in critical areas such as power generation. Besides, IFC will continue to support the WBG’s work on improving the investment climate by providing technical assistance to the Government for the implementation of reforms aimed at facilitating private investment across several sectors and encouraging PPPs. 89. The WBG will also work together to support financial inclusion, including with a focus on micro and small enterprises, agricultural finance and female entrepreneurs. The WBG 2016-2019 trust funded Improving Access to Financial Services Program will continue to strengthen the supply side and improve access to and usage of financial services including through expanding use of the postal network, improving mobile financial services, and switching Government payments from cash- 20 The Niamey-Cotonou corridor is the most important transit corridor for Niger because it is also the shortest - 1,035 km- compared to any other, and covers about 80 percent of the total traffic . While Niger has made noticeable progress in recent years is with respect to logistics performance, it still compares relatively unfavorably to neighbors (e.g. Burkina Faso). Trade costs are still too high to ensure better competitiveness and reduce import prices to the economy. It is also clear that Niger suffers from the poor performance of its main gateway countries, Benin and Togo – thus a holistic, corridor approach in addressing the main bottlenecks along the logistics chains is critical. 29 based to digital channels. There will be a particular focus on women who face larger challenges in terms of limited collateral (houses and lands generally belong to men), limited access to bank accounts, social and cultural norms with gender biases, as well as the fact that women-owned Small and Medium Enterprises (SMEs) tend to be smaller, have limited access to business education opportunities and networks, and suffer greater mobility constraints. The Financial Inclusion Program will also focus on strengthening the M&E system to help effectively monitor implementation of the National Financial Inclusion Strategy and the growth of agriculture and women’s financing. A DPO series will support the establishment of a sound legal and regulatory framework for leasing and warrantage, and IFC plans to continue working on its leasing program. IFC will also seek to forge partnerships with local banks and financial institutions to support the microfinance/SME sectors, agri- finance and value chain financing programs, while providing risk management advisory services. MIGA is also exploring opportunities to help de-risk private investment in the financial services sector. Objective 9: Improved urban environments for income generation and growth Indicators: 9.1 Additional MW generated nationally/imported on the grid 9.2 Share of extractives sector revenues benefiting local governments 90. The CPF will support Niger to be better prepared for future urbanization through investments in the national energy supply, urban infrastructure and local government capacities. Although Niger is experiencing rapid urban growth at 5.3 percent in 2016, one of the highest among comparator countries in Africa, urbanization is slow, as rural population growth is also among the highest. The result: Niger is vulnerable to rapid, unplanned urbanization stemming from forced migration. For urban areas in Niger to reach their economic potential as centres of knowledge, innovation and productivity growth they will require improved infrastructure and service provision (including at municipal level21). Well-functioning local governments depend on sufficient financing from fiscal transfers and local taxes that do not deter local economic activities. This financing needs to be budgeted and executed in a participatory and transparent manner to ensure that services are provided in line with stakeholder’s priorities. Finally, local government needs to be held accountable with timely audited financial statements. 91. The WBG will continue to support the development of the national electricity grid as the least cost option for both urban and national access to energy. The World Bank is already involved in supporting the extension of and access to the national electricity grid together with the French Development Agency (Agence Française de Développement, AFD), African Development Bank (AfDB) and the European Union (EU). The Niger Basin Water Resources Development and Sustainable Ecosystems Management Program Adaptable Program Lending (APL) 2A (FY14) is currently financing additional power generation capacity. Through the proposed North Core/Dorsale North Corridor Project (FY19), the World Bank will increase Niger’s ability to import hydropower energy from Nigeria, while IFC and MIGA will explore opportunities to participate in the financing of an IPP project to reduce reliance on imported power from Nigeria. In addition, more than 60,000 urban connections are being established with Bank support through the Electricity Access Expansion Project (FY16). The World Bank will help accelerate grid-connections through NIGELEC’s access programs in Niamey and seven secondary cities. 92. The World Bank will also continue to support the Government’s urban water sector reform plan as well as measures to bolster the resilience of cities to natural hazards. It will support continued water quality and access improvements in collaboration with the national water utility under the ongoing Urban Water and Sanitation Project. In addition, AF for the ongoing Disaster Risk 21 Services provided at municipal level are in the 4 sectors of education, health, water and environment. 30 Management and Urban Development Project in FY19 will enable an expansion of the scope of the project to two new regions affected by natural hazards (Agadez and Tahoua regions). The project supports flood risk management through innovative combination of urban drainage and flood protection infrastructure, restoration of large irrigated schemes in peri-urban areas, enhanced planning capacities for drainage and urban development, sustainable land and water management practices in upstream watersheds, and capacity development for local and central governments to manage financial resources with due consideration for disaster risks, early warning and preparedness and response. 93. The World Bank will support improved management and use of mining revenues for more balanced urban and local development. The GOLD Project (expected in FY19) is anticipated to contribute to defining the framework for transferring and managing resources to local governments (collectivités territoriales), including the future transfer of extractive revenues to affected communities. The support will include activities to strengthen the capacity of: (i) central institutions including deconcentrated entities (at sector and regional level) and local governments (collectivités territoriales); and (ii) local governments to collect revenues, prepare, execute budgets, and account for expenditures in a transparent and participatory manner. Finally, the project will also focus on operationalizing inter-governmental fiscal transfers and ensuring that local governments receive adequate supervision, oversight and support from central governments institutions. 94. The World Bank will also strengthen the architecture for conflict resolution and support government in monitoring risks. This will include support to strengthen local-level conflict resolution and monitoring mechanisms, and strengthening central institutions such as the HACP and its role in resolving social, religious, and community tensions. An assessment of existing local level risk monitoring and early warning systems (EWS) will help the World Bank to build on existing mechanisms, plans and capacities, including those established by the CNESS (National Center for Strategic and Security Studies), the HACP and line ministries 95. The World Bank will invest in improving its overall understanding of urban dynamics in Niger. There are very few studies of cities and urban dynamics in Niger. The World Bank will therefore undertake a review of urban institutional capacity, financial resources and economic potential to identify incentives for cities to improve their local governance and service performance. This will help identify investment interventions that could further enable cities to play a larger role in an inclusive growth strategy under an Urban Local Government Support Project (expected FY21). F. Implementing the FY18-FY22 Country Partnership Framework Current Active Portfolio 96. Despite a significant increase in the size of WB’s program in Niger during the FY13-FY16 CPF, the portfolio performance has been healthy (Annex 8: Selected Indicators of World Bank Portfolio Performance and Management). The current IDA portfolio in Niger comprises 17 national and six regional projects, representing total IDA commitments of US$1.5 billion (Annex 9: World Bank Group Portfolio (as at February 12, 2018). In FY17, the disbursement ratio was 24.1. Financial Envelope and New Instruments 97. Under IDA18, Niger could benefit from approximately US$1-1.1 billion in resources22, double its previous IDA allocation of US$598 million. These resources include both the Performance-Based 22 Referenced IDA18 volumes are indicative. It includes the additional allocation from the IDA18 FCV Risk Mitigation Regime. Actual PBA allocations will be determined annually during the FY18-20 period and will depend on: (i) total IDA resources available; (ii) the number of IDA-eligible countries; (iii) the country’s performance rating, per capita GNI, and population; and (iv) the performance and other allocation parameters for other IDA borrowers. 31 Allocation and the special allocation under the RMR. Niger is one of four countries eligible under IDA18 to draw on the new RMR, which provides financing up to one-third of a country’s indicative original IDA18 allocation during IDA 18. Financing terms will follow the terms of concessional core IDA financing. In addition, the World Bank plans to access other window under IDA18, viz, the Regional Integration Window, the Refugees Sub-Window to address forced displacement, and the PSW (Figure 8). Figure 8: Niger Indicative CPF Program FY18-FY22 (US$ millions) 1/ 1/ 98. The new IDA Private Sector Window is expected to help increase IFC and MIGA’s interventions in Niger. Historically, IFC and MIGA’s interventions in Niger have not been significant given that the private sector is mostly made up of short-term trading entities and a few local companies that satisfy IFC’s basic investment, environmental and social requirements and can implement projects of the required scale. Given that the perceived security risk and inadequate knowledge about the advances Niger is making in the enabling business environment area continue to result in limited foreign investments, it is expected that the PSW – which is designed to help de-risk certain aspects of private sector projects, could enable IFC and MIGA to mobilize private investment through rebalancing the return risk profiles of potential investments. This could allow IFC and MIGA to develop and consider projects that were not possible in the past, including projects in infrastructure and the financial sector. By working together more closely, the WBG institutions will aim at easing the impediments that have historically limited IFC and MIGA involvement in Niger. 32 99. The share of human capital in the overall IDA portfolio will increase as a result of the proposed CPF program. Commitments under the improved human capital and social protection focus area will likely increase to 41 percent of the portfolio from 33 percent currently. Rural productivity will continue to account for the largest share of the portfolio at 44 percent (down slightly from the current allocation). Governance will account for approximately 15 percent of the portfolio under the proposed CPF program. The majority of IDA resources will be allocated equally across the first two focus areas namely rural productivity and incomes and human capital (Figure 9). Figure 9: Evolution of CPF Portfolio by Focus Area Evolution of the Niger Portfolio 50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% Rural productivity and incomes Human capital Governance pre-CPF CPF 100. The WB will use a mix of DPO financing, including new DPOs, and Investment Policy Financing (IPF) to deliver the FY18-FY22 CPF. A multi-sector DPO is tentatively planned for each of FY18, FY19 and FY20, which will target a systemic change in the policy environment while potentially focusing on agriculture, human development, economic diversification, energy and/or digital services. The World Bank will work with the Government to ensure that high-levels of budget support are accompanied by greater efforts to mobilize resources domestically. The World Bank will also use IPFs across all three Focus Areas and the cross-cutting theme. Several Pfor R projects are planned. Several projects, including the West African Power Pool (WAPP) North Core, Digital Sector Development and ID4D, Niamey-Cotonou or Niamey-Ougadougou-Lome corridor and Building Climate Resilience in the Niger Basin Projects could all potentially benefit from the Regional Integration Window and Niger Forcibly Displaced Support Project should qualify for the Refugee Window. The World Bank will also continue to provide significant emergency response to Niger through the recently approved Immediate Response Mechanism (US$26 million). Analytical and Advisory Services 101. This CPF proposes a complementary program of ASA which respond to knowledge gaps identified in the SCD and contribute to the ‘business unusual” approach (Figure 10). With regard to gender issues, much of the work will be embedded in the projects and so does not feature heavily here. As part of its poverty monitoring, and in support of the spatial targeting, the World Bank will undertake surveys and studies on lagging regions (areas most at risk from a mix of population growth, limited land and climate change and refugees), perform iterative project monitoring and explore/assess new interventions, e.g. skills and value chain development, improved agriculture 33 technology transfer mechanisms and better solar electricity programs, that can help spur catch-up. To help strengthen local participation and service delivery in these areas, the World Bank ASA program will also: look at social accountability and service delivery, including development of SDIs for PforR operations; the role of local conflict resolution and ESW; explore ICT policies and applications to help reach the most vulnerable communities, including identity management and payment systems; and investigate the role of the private sector in health and education. More specific work will be undertaken to build knowledge about special challenges in education (particularly for girls) and health care (management and deployment of financial and human resources). The World Bank will also continue its ongoing ASA work on fiscal management, to help Niger assess its fiscal risks and SOEs performance with a view to better control and make transparent its scarce resources, while absorbing new aid resources. In addition, it is planned to have an ASA regarding a full study on urbanization to help the country to prepare for future urbanization. Figure 10: Planned ASA Increased Rural Improved Human Development and Better Governance for Jobs, Productivity and Incomes Social Protection Service Delivery, and Growth Completed SCD for Niger FY18 Gender Assessment x ICT Policies and x HD PforR assessment x Government to Persons Applications Payment Systems x Studies on Bottlenecks x Iterative Project Monitoring, to Urban Growth and Third Party Project Poverty Supervision in Conflict Areas x Water and Sanitation and E-Vouchers (Phase 1) PforR Technical and x Niger SOEs Assessment Fiduciary Assessment FY19 Mainstreaming Citizen Engagement in the Niger portfolio x Urban Local x ECD Policy Dialogue x Poverty Monitoring and Government Support x Systems Approach for Better Refugee Welfare Survey Readiness Assessment Education Results (SABER) Study x Niger SOEs TA Advisory x Solar IPP Development on Governance and Integration x Iterative Project Monitoring, Study x Diagnostics of Structure and Fiscal Third Party Project Sustainability of Social Protection Supervision in Conflict Areas and Labor Expenditure in Niger and E-Vouchers (Phase 2) x Fiscal Risk Assessment FY20 x SDI follow up in health and education x Post Basic Education Study Portfolio Management 102. To help Niger absorb the larger lending program, the CPF will emphasize simpler project design, test innovations in multi-sectoral and spatial synergies, and strengthen capacity in key implementation areas. Recent disbursement rates and fiduciary performance in Niger have been encouraging, nevertheless implementation challenges remain and the risk of portfolio fragmentation is real. Though benefitting from an important resource scale up, the proposed program seeks to keep the increase in overall number of projects under implementation to a minimum and favours larger average project financing amounts. In addition, five of the proposed new operations are AF 34 supporting projects deemed very successful or where considerable institutional capacity is being built. The World Bank also will incorporate lessons from the CLR and from the RMR Note. 103. The multi-sectoral approaches among complementary IPF interventions combined with spatial targeting should help to ensure better linkages and synergies across the portfolio. The CPF will also pilot multi-GP P4R operations and other result-based financing in urban water and sanitation, health and nutrition and in the power sector. Where possible, IPFs will be delivered at scale to reduce transaction costs and will complement other DPs’ interventions. However, to avoid artificially inflating the size of projects with disconnected components, the World Bank will explore simpler program designs, earlier engagement of technical counterparts and beneficiary communities, and innovate service delivery mechanisms including local actors. Given the plan to introduce pilot new innovations across the portfolio, strengthening overall capacity for M&E will also be a focus of the PFM and P4R programs. 104. The WBG will also focus on capacity for implementing new gender and FCV commitments, as well as the new Environmental and Safeguards Framework. Given the focus of this CPF on women’s empowerment and agency, the Niger country office will move to strengthen its local capacity for support in this area, including on strategies to address gender-based violence. To support the risk mitigation agenda through addressing local grievances, the World Bank will help develop and implement a strategy for improved service delivery at each level of local government, while moving toward community implementation (including NGOs and CSOs) as local level PFM improves. Finally, the World Bank will maintain a firm but supportive dialogue on safeguards as exemplified by the Kandadji Program (see Box 2: The Kandadji Program). G. Managing Risks to the CPF Program 105. The overall level of risk facing the FY18-FY22 CPF is substantial. This reflects high political and governance risks, substantial macroeconomic risk, as well as substantially rated technical design of project and program risks, institutional capacity, fiduciary and safeguards risks (Error! Reference s ource not found.). In addition to the specific mitigating actions laid out below, the WBG will respond to Niger’s multiple fragility and conflict risks by: x working in partnership with other actors: programs receiving funding from RMR will strengthen this dimension in their activities, especially for programs in the most insecure areas or that require strong coordination with security and humanitarian actors. x adopting a transnational approach: because many dynamics transcend borders, a focus on FCV in the CPF will require a very strong connection with programs in neighboring countries (e.g. Lake Chad Project, Programs in Northern Mali). Figure 11: Systematic Operations Risk Rating Tool Risk categories Rating (H, S, M or L) Political and governance H Macroeconomic S Sector strategies and policies M Technical design of projects or program S Institutional capacity for implementation and sustainability S Fiduciary S Environment and social S Stakeholders M Other (operating in a fragile and insecure environment) H Overall S 35 Political and governance 106. Political and governance risks are high. The 2016 general election and associated irregularities raised social tensions. These frustrations could encourage some political actors to block the normal operation of state institutions and see popular grievances fuelling protests. In addition, the next presidential elections, scheduled for 2021, will likely be marked by a generational shift and struggles around succession. A possible deterioration of the situation in Oubari or any international intervention in Libya would have consequences on Niger’s trade routes and spur return migration of thousands of Nigeriens living in Libya. A spill over of the situation prevailing in Northern Nigeria also cannot be excluded. A deterioration of the situation in Northern Mali could also directly affect Niger. 107. In light of the heightened level of these risks the World Bank will pay close attention to monitoring and adaptive approaches. This will allow an assessment of country progress in the contextual FCV risk landscape, feedback on the impact of the World Bank’s overall engagement in terms of risk reduction and incorporation of indicators that capture FCV-dynamics in operations (see RMR Implementation Note for further detail). The World Bank will leverage its policy dialogue with the client to maintain a focus on key reforms needed to address structural FCV risks. This could include integration of risk-related triggers in the DPO and ensuring increased World Bank presence in dedicated fora for dialogue and coordination, notably in the humanitarian-development-peace nexus given the increased need for coherence across the multiple actors working in Niger and supporting the government efforts on making the security, mediation and development nexus work. Macroeconomic risks 108. Macroeconomic risks are substantial. Depressed commodity prices, the persistence of Nigeria’s economic crisis, and security challenges may affect the macroeconomic and fiscal situation. Commodity price shocks could continue adversely affecting government revenue and the balance of payments. Trade diversion stemming from the economic crisis in Nigeria would compound such risk. High security outlays and the cost for hosting refugees would also challenge fiscal stability both by diminishing public revenues and diverting priority spending away from economic and social priorities. These risks are already affecting fiscal balances, and could worsen if the Government does not adopt timely measures to increase its fiscal space. The World Bank will maintain a close dialogue with the IMF to ensure that it is fully abreast of emerging macroeconomic risks throughout the CPF period. It will also engage directly with the Government to strengthen structural aspects of its fiscal management through its work on PFM. Technical design of projects or program 109. Technical design risks are substantial. On the World Bank side, the limited number of staff based in Niamey has constrained the World Bank’s ability to support project implementation to the extent needed, while improved GoN’s ownership of projects would have also increased results. Consequently, opportunities to achieve synergies across projects were sometimes missed. Due to these and other factors, the average disbursement rate of World Bank’s project in June 2016 was approximately 20 percent, somewhat lower than might be expected given the age and profile of the portfolio. 110. The World Bank will deploy a combination of dedicated investments financed under the RMR and measures that are integrated in programs as part of the CPF portfolio. The latter will specifically target key risk drivers of FCV-related issues. It will accompany the design and implementation of the World Bank’s operational portfolio with a robust ASA program that ensures the integration of FCV considerations in all operations, notably those financed under the RMR, e.g. analysis of fragility and political economy issues in key sectors. 36 Institutional capacity for implementation and sustainability 111. Institutional capacity risks are substantial: Niger’s overall Country Policy and Institutional Assessment (CPIA) rating in 2015 was 3.5 i.e. higher than the average for IDA-eligible SSA. Public sector management and administration is also somewhat stronger in Niger than in the region. Despite this slightly superior performance relative to regional peers, institutional frailties still pose a substantial risk to CPF implementation. Standardizing the employment status of the project management units with a view to further integration into the line ministries should also help to improve project implementation. The World Bank will also work with the Ministry of Planning to establish a robust mechanism for monitoring the portfolio performance. Fiduciary and safeguard risks 112. Fiduciary risks are substantial. The 2016 PEFA indicator P19, which measures public competitive bidding, optimal use of resources and public procurement thresholds, remained unchanged in 2016 relative to 2012 at B+. Nevertheless, procurement of contracts for WBG projects has been subject to delays largely attributable to: low levels of private sector participation and poor responsiveness of the national system, cumbersome government procedures and weak follow-up. The WBG will work with the GoN to strengthen fiduciary systems through its work on PFM. Close coordination across World Bank teams will also help reduce excess stress on government fiduciary systems. 113. Safeguard risks are substantial, particularly with regard to the regional program of the Kandadji Growth Pole for which over 40,000 affected people might be resettled. To mitigate the risks associated with resettlement, the second phase, which is scheduled to begin in FY23, following the end of the proposed new CPF, will only begin once: (i) the resettlement for the first phase has been satisfactorily completed; and (ii) the GoN has demonstrated its ability to manage complex resettlement by resettling more people as required by a reservoir height of 228 meter (i.e. another 20,000 to 30,000 people, in addition to about 1,000 people in Mali). Environment and social 114. Environmental and social risks are substantial and lie at the core of the risks associated with operating in a fragile and insecure environment – see further below. Weather-related shocks are a frequent occurrence and threaten the CPF’s objectives of boosting agricultural productivity to reduce poverty. In 2014, a normal agricultural year, about three quarters of households faced shocks of different types and experienced a decrease in revenue and/or lost some assets. These shocks can lead to food insecurity and malnutrition, which could impact on CPF objectives to improve Early Child Development. WBG interventions that will help mitigate these risks include support for local climate change adaptation plans at commune level; efforts to improve soil and water management; improved access to mobile technology and hence information; and strengthening social safety net systems. Households who have access to irrigation are less exposed to weather shocks. Operating in a fragile and insecure environment 115. Project implementation in Niger faces several challenges stemming from the fragile and insecure environment. These include: delays caused by the overriding need for humanitarian assistance work in times of crisis; the impact of refugees on the quality of interventions; difficulty of assessing the effectiveness of interventions in areas of insecurity; and a reallocation of public resources away from projects towards security objectives. The WBG will respond to Niger’s multiple fragility and conflict risks by adopting the following strategic approach: 37 x A dual focus on (i) addressing short-term drivers of conflict and fragility that may contribute to an escalation of existing conflict with a focus on the most fragile and crises-affected regions (prevention of escalation); (ii) tackling medium- to long-term drivers and structural factors, for example through investments that can reduce risks of future conflict and strengthen institutions to manage risks and support social cohesion (sustaining peace). x A spatial approach that targets the regions and communities that are more fragile and at highest risk of violence, conflict and instability, including the border regions. This approach will require very close coordination between various World Bank sector teams to avoid a set of fragmented and/or too thinly spread interventions. x A combination of dedicated investments financed under the RMR and measures that are integrated in programs as part of the CPF portfolio that specifically target key risk drivers of FCV- related issues. x Leveraging policy dialogue with the client to maintain a focus on key reforms needed to address structural FCV risks (possibly through integration of risk-related triggers in the DPO) and ensuring increased Bank presence in dedicated fora for dialogue and coordination. This is notable in the humanitarian-development-peace nexus given the increased need for coherence across the multiple actors working in Niger and supporting the government efforts on making the security, mediation and development nexus work. x Because of the importance of partnerships in addressing fragility, programs receiving funding from RMR will strengthen this dimension in their activities, especially for programs in the most insecure areas or that require strong coordination with security and humanitarian actors. x Accompanying the design and implementation of the World Bank’s operational portfolio with a robust ASA program that ensures the integration of FCV considerations in all operations, notably those financed under the RMR, e.g. analysis of fragility and political economy issues in key sectors. x Close attention to monitoring and adaptive approaches to allow both assessment of country progress in the contextual FCV risk landscape, feedback on the impact of the World Bank’s overall engagement in terms of risk reduction and incorporation of indicators that capture FCV-dynamics in operations. x Because many dynamics transcend borders, a focus on FCV in the CPF will require a very strong connection with programs in neighbouring countries (e.g. Lake Chad Project, Programs in Northern Mali). 116. The WBG will take account of the risk of conflict in the planning of projects during FY18- FY22. It will draw on the findings of the November 2017 RMR mission to Niger and on the Immediate Response Mechanism (IRM) when needed. The IRM allows rapid access to 5 percent of IDA's undisbursed portfolio to meet immediate financing needs. It is already available to some projects such as the Community Action Program. The WBG will also explore ways of operating that are adapted to insecure areas, such as third-party execution and monitoring or reliance on NGOs. 38 Annex 1: Results Matrix CPF FOCUS AREA ONE: INCREASED RURAL PRODUCTIVITY AND INCOMES Niger Vision 2035 objectives: x revitalize and intensify traditional rain-fed cereal agriculture, including soil protection and restoration, rural roads, market organization, agronomic research, and the dissemination of context-relevant farming practices, harvesting and agro-ecological practices x continue and accelerate investments in irrigation, particularly in small developments x re-structure transhumant and sedentary livestock systems The World Bank will support the rural sector through a mix of policy and investment lending, with a focus on creating opportunities for women and youth as well as addressing the incidence of forced displacement and degradation of livelihoods in conflict-affected regions. CPF interventions to increase yields in rain-fed agriculture will combine interventions aiming at building the seed supply chain (foundation seeds production scheme, seed use promotion, e-vouchers), improving soil fertility, soil and water management, implementing inclusive rural mechanization programs, strengthening the research–extension–farmer linkages, which limit transfer and adoption of technology with more private interventions and better use of mobile phones and ICT services, and designing and implementing local climate change adaptation plans at commune level. In addition, interventions aimed at improving the governance of the extractive sector will focus on formalizing artisanal mining. In each intervention, where possible, there will be an explicit target for reducing gender inequities in access to inputs, and opportunities for off-farm rural employment. Objective 1: Increased rural production with diversified output in the agriculture and livestock sectors SDG2: End hunger, achieve food security and improved nutrition and promote sustainable agriculture CPF Objective Indicators Milestones WBG Engagement Indicator 1.1: Milestone 1.1: Ongoing: Increased yields (Millet, Sorghum, Yields by start FY20: IDA Cowpea and Irrigated Rice) in target Millet (501kg/ha); Sorghum x Niger Agro-Sylvo-Pastoral Export and Market Development Project areas: (448kg/ha); Cowpea (336kg/ha); rice (P095210) FY09; Niger-Competitiveness and Growth Support Baseline (2015): Millet (451kg/ha); (6380kg/ha). (P127204) FY12; Community Action Project for Climate Resilience Sorghum 399; Cowpea 298; Irrigated (P132306) FY13, AF FY17; Integrated Ecosystems Management Rice (paddy) 5500 (P143079) FY13; Agro-Sylvo Pastoral Exports and Markets Target (mid 2022): 486 Kg/ha; 440 Development Project AF (P148681) FY15; Climate Smart Agriculture kg/ha; 330 kg/ha; 62OO kg/ha Support Project (P153420) FY16; Second Public Investment Reform Source: Ministry of Agriculture and Supplementary Credit (P159969) FY17; Competitiveness and Growth Projects Project (FY12) 39 Indicator 1.2: Milestone 1.2: x Kandadji Niger Basin Water Resources Program APL2A (P148972) Percentage increase in yields 16 percentage increased by all yields FY14; Disaster Risk Management and Urban Development Project produced by targeted beneficiaries by start of FY20 (P145268) FY14); Electricity Access Expansion Project (P153743); (men and women) in selected x Urban Water and Sanitation Project (P117365) FY11, AF FY16. livestock value chains: x DPO series (P159969) FY17 x cattle Baseline (2017): 0 Trust Funds Target (2022): 20 percent men; 20 x Niger WASH Poverty Diagnostic (FY16); percent women x small ruminant o/w regional Baseline (2017): 0 x West Africa Agricultural Productivity Program-1C Niger Phase 1 Target (2022): 20 percent men; 20 (P117148) FY11; Niger Basin Water Resources Development and percent women Sustainable Ecosystems APL2A (P130174) FY12, AF (P149714) FY15; x poultry Regional Sahel Pastoralism Support Project (P147674) FY15; North Baseline (2017): 0 Core/Dorsale North Corridor (FY19) Target (2022): 20 percent men; 20 percent women IFC x milk x Niger Irrigation Project (600247) Baseline (2017): 0 Target (2022): 20 percent men; 20 Trust Funds percent women x Carbon Sequestration and Rural Livelihoods Improvements Through Source: Ministry of Agriculture Acacia Plantations (FY07); Agriculture Risk Management and Inclusive Green Growth TA (FY); Active Global Environment Facility Indicator 1.3 Milestone 1.3 (GEF) FSP Projects - Agriculture GP (FY15); AFR - Support to Number of mining permits issued to - Baselines and targets for number institutional strengthening of the irrigation (FY16). artisanal miners of women and youth artisanal Baseline (2016): 30,000 miners to be added by FY19 Pipeline: Target (mid 2022): 60,0000 - Dedicated artisanal mining areas IDA national o/w women: to be added in the identified and delineated by FY19 Agriculture and Livestock Transformation Project (FY19); Multisector Performance and Learning Review - Mineral sector policy in place by DPOs (expected FY18-20); Governance of Extractive Sector for Local (PLR) FY19 Development (FY19); Governance of Extractive Resources for Local o/w youth: to be added in the PLR Development (GOLD) Project (expected in FY19). Source: Ministry of Mines, PRACC 40 IDA regional x Sahel Irrigation Initiative Support Project (expected FY18); Building Climate Resilience in the Niger Basin (FY19); Building Climate Resilience in the Niger Basin (FY19); Kandadji Niger Basin Water Resources Program APL2A AF (FY20); ICT Sector Development and ID4D Project (FY19). ASA Study on bottlenecks to urban growth and poverty; Water and Sanitation P4R Technical and Fiduciary Assessment; Urban Local Government Support Readiness Assessment; Solar IPP development study (ESMAP); 41 Objective 2: Improved availability of productive infrastructure for trade in rural areas SDG6: Ensure availability and sustainable management of water and sanitation for all SDG7: Ensure access to affordable, reliable, sustainable and modern energy for all SDG 9: Build resilient infrastructure, promote inclusive and sustainable industrialization and foster innovation Indicator 2.1: Milestone 2.1 Ongoing: Number of rural weekly markets Number of markets with access in IDA benefiting from all-season road access FY21: 14 x Electricity Access Expansion Project (P153743) FY16; Niger Solar Baseline (2018): 0 Electricity Access Project (P160170) (FY17) Target (mid 2022): 22 Source: Ministry of Equipment Pipeline: IDA Indicator 2.2: Milestone 2.2: x Rural Transport Project (FY19); Electricity Access Expansion Project AF Number of additional households Number increased by 3000 by 2019 (expected FY18); Kandadji RAP 2 AF (FY20); Multisector DPOs provided with electricity access from (o/w 16 percent women-headed (expected FY18-20); Solar Generation Partial Risk Guarantee (FY20); new solar mini-grid systems (separate households) Niger Solar Electricity Access Project AF (expected FY21). targets for male and female headed households) o/w regional Baseline (2017): 0 West Africa Power Pool (WAPP) North Core (FY 18); Transport and Target (mid 2022): 6000 Logistics Corridor Project (expected FY20). o/w which households headed by women: 16 percent Trust Funds Source: Niger Solar Electricity Access x TA programs improving Access to Financial Services (FY16-FY19) Project (NESAP) ASA ICT Policies and Applications 42 CPF FOCUS AREA TWO: IMPROVED HUMAN CAPITAL AND SOCIAL PROTECTION Niger 2035 objectives: x improve the quality of basic education x refocus secondary and higher education to meet the needs of professional, technical and scientific sectors x raise the education level of the informal workforce x improve post-primary teaching x encourage and enable a more modest rate of population growth Issues addressed: The WBG program in this area is built around three main avenues: health services, education and social protection, including a focus on forced displacement. In health, the CPF aims at bringing demographic growth rates down to sustainable levels, improve maternal health and nutrition, and empower women and girls. With respect to education, the CPF attempts to address the issue of poor quality of school education and training services, particularly for women. The World Bank also continues to provide TA and financial resources to develop an effective and adaptive safety nets system that will increase access of poor and vulnerable people to cash transfer and cash for work programs and be more responsive to shocks while building households’ resilience. The World Bank will also focus on the medium-term socioeconomic dimensions of forced displacement, while providing short-term assistance to help the Government weather the current situation. Objective 3: Increased access to quality health services SDG 3: Ensure healthy lives and promote well-being for all at all ages SDG4: Ensure inclusive and equitable quality education and promote life-long learning opportunities for all Indicator 3.1: Milestone 3.1: Ongoing: Share of women (aged 15-49) Percentage increased by 5 percent by IDA delivering with trained health FY19 x Niger Disaster Risk Management and Urban Development Project professional and women: (145268) FY14; Population and Health Support project (P147638) Baseline for DLI 2 (2015): 40 percent FY15; Capacity Building for Service Delivery (P145261) Target (2022): 55 percent Percentage increased by 4 percent by Source: Niger Demographic and Health FY19 o/w regional Survey (DHS) x Sahel Women's Empowerment and Demographics Project (P150080) FY15; Sahel Malaria and Neglected Tropical Diseases (149526) FY15. Indicator 3.2: Milestone 3.2: Stunting prevalence in children aged Number increased by 17 percent by Trust Funds 0-59 months (percentage) FY19 x Niger WASH Poverty Diagnostic (FY16) Baseline (2016): 42,2 percent Target (2022): 38,01 percent (of which 55 percent girls) 43 Source: national SMART 2016 survey Pipeline: x Health and Nutrition Program for Results (PforR) (expected FY20); Multisector DPOs (expected FY18-20); Niger Disaster Risk Management and Urban Development Project AF (FY19); Basic and Secondary Education project (Expected FY19); AF Social Safety Nets (expected FY19) o/w regional x Regional Disease Surveillance System Enhancement (Expected FY18); Niger Service Delivery Indicators (FY20 and FY22) ASA/ESW x Niger Service Delivery Indicators (FY17); CL4D Niger Health (FY17 or FY18); Identity Management System Analysis (IMSA) (FY17); ASA: Preconditions of P4R in Health study (FY18); ASA Social Accountability and Service Delivery (FY18) Objective 4: Increased access to quality education and training services, particularly for women SDG 3: Ensure healthy lives and promote well-being for all at all ages SDG4: Ensure inclusive and equitable quality education and promote life-long learning opportunities for all Indicator 4.1: Milestone 4.1: Ongoing: Children enrolled in at least one years 8 percent target reached by FY19 IDA of pre-primary schooling (percentage) x Skills Development for Growth Project (P126049) FY13; Capacity Baseline (2016): 7.2 percent Building for Service Delivery (P145261); Sahel Women's Empowerment Target (2022): 10 percent and Demographics Project (P150080) (FY15). o/w girls: 50 percent Source: Ministry of Primary Education Trust Funds x Niger Implementation Support of Quality Basic Education Project Indicator 4.2: Milestone 4.2: (FY14); Niger - Global Partnership for Education (GPE) Support to Women and adolescent girls trained in Number increased to 22,000 by 2020 Quality Education Project (FY15); Niger REACH for Quality Education literacy campaigns or second-chance (FY16) programs Baseline (2017): 11,500 ASA Target (2022): 25,000 x Analytical work to identify vocational training and skills needs; TA to help the Government set up the institutional framework for it, 44 Source: Ministry of Primary Education including private sector participation; SDI; Social Accountability and and Ministry for Technical and Service delivery (FY18); IMSA (FY18) Vocational Education – Project Reports Pipeline: IDA x Skills Development for Growth AF (FY18), Youth Employment and Productive Employment (expectedFY18); Basic and Secondary Education project (expected FY19), AF Social Safety Nets (expected FY19); Multisector DPOs (expected FY18-20); Gender Assessment (FY18). ASA x HD-governance ASA on service delivery and Service Delivery Indicator Survey (FY20 and FY22); Post Basic Education study; Systems Approach for Better Education Results (SABER) study on engaging the private sector in education (including faith-based schools, such as Islamic ones); ECD Policy Dialogue Objective 5: Improved social protection system and ability to manage forced displacement SDG 1: End poverty in all its forms everywhere Indicator 5.1: Milestone 5.1: Ongoing: Number of poor households covered Number increased to 175,000 by IDA by safety nets programs FY19 x Niger Safety Net Project (P123399) FY11; Community Action Project – Baseline (2016): 137,636 Phase 3 (FY13) and AF (FY17); Adaptive Social Safety Nets Project Target (2022): 200,000 (P155846) FY16. o/w households headed by women: 50 percent ASA Source: Safety Nets National Unit x Adaptive Social Protection for Resilience in Niger (FY15); Analytical work on vulnerabilities and targeting; Identity Management Systems Indicator 5.2: Milestone 5.2: Assessment - IMSA (FY18); Diagnostics of structural and Fiscal Number of individuals participating in Number reaches 10,000 by FY19 sustainability of social protection and labor expenditure (FY19). productive employment or employment programs [project level] Baseline (2016): 0 45 Target (2022): 50,000 Pipeline: o/w women: 50 percent IDA o/w young entrepreneurs: 50 percent x Skills Development for Growth, Youth Employment and Productive Source: Ministry of Social Protection Employment (expected FY18); Niger Forcibly Displaced Support Project and Employment (expected FY19); Youth Employment and Productive Inclusion (expected FY19); Social Safety Nets AF (expected FY19); Niger Disaster Indicator 5.3 Risk Management and Urban Development Project AF (FY19); Niger Number of refugees receiving social Refugee Project (FY19) service benefits from a vulnerability- based assistance system Regional Baseline (2017): 30,000 x Lake Chad Regional Recovery Project (expected in FY21 Target (2022): 100,000 o/w women: 55,000 Source: Minitry of Social Protection and Employment 46 CPF FOCUS AREA THREE: BETTER GOVERNANCE FOR JOBS, SERVICE DELIVERY, AND GROWTH Niger 2035 objectives: x limit public sector employment and ensure that recruitment processes are transparent, fair and objective x revise the public administration legal framework x prevent excessive aging of the civil service through a proactive retirement policy x rationalize salary grids to keep up with inflation and avoid excess proliferation of bonus schemes x ensure alignment between payroll as controlled by the Ministry of Finance and public employment headcount as monitored by the Ministry of Civil Service x formalize the payment of salaries through banks to reduce losses through fraud and corruption x transform a limited number of key departments into institutions of excellence on a par with those in other emerging economies In this area, the WBG support will help develop and begin implementation of a strategy for improved service delivery at each level of local government including both deconcentrated and decentralized administration. This will focus on (i) improving PFM including analytical work on public investment at the local levels; (ii) development of technologies and mechanisms to support citizen voice and engagement, including through communication and information systems; and (iii) better preparing Niger for urbanization and productive urban environment, while improving access to electricity and preventing environmental degradation. The CPF will focus on the extractive sector, given its potential role in creating jobs and growth while potentially addressing grievances through a better redistribution of resources and increased shared prosperity. The WBG program in Niger will continue to support investment in climate reforms and work along the WB-IFC-MIGA nexus to find new opportunities in trade facilitation and PPPs in infrastructure. Objective 6: Improved access to digital services SDG9: Build resilient infrastructure, promote inclusive and sustainable industrialization and foster innovation SDG 16: Promote peaceful and inclusive societies for sustainable development, provide access to justice for all and build effective, accountable and inclusive institutions at all levels Indicator 6.1: Milestone 6.1: Ongoing: Mobile market and internet Mobile market penetration rate IDA penetration rate: reaches 35 percent by FY19 x Public Sector Capacity and Performance for Service Delivery Project Baseline for mobile market: (2016): 25 (FY14) percent o/w women: 11.25 percent ASA Target (mid 2022): 45 percent x ICT Policies and Applications TA (FY17); SOE ASA (FY17) o/w women: 32 percent Source: GSMA Connected Women Pipeline: programme IDA x ICT Sector Development (FY19); Multisector DPOs (expected FY18-20). Baseline for internet (2017): 10 percent 47 Target (mid-2021): 25 percent Regional: Source: GSMA Connected Women ID4D Project (FY19) programme ASA Indicator 6.2: Milestone 6.2: x ICT Policies and Applications TA (FY18); Poverty Monitoring and Increased in percentage points of Percentage increased to 15 percent Welfare Refugee Survey (FY19). people with a registered identity by FY19 (o/w women to 12 percent) (ID4D) Baseline (2017): 0 Target (mid-2022): 30 percent o/w women: 24 percent Source: ICT Sector Development and ID4D Project (FY19) CPF Objective 7: Strengthened public finance and human resource management for improved public service delivery capacity SDG 1: End poverty in all its forms everywhere SDG 5: Achieve gender equality and empower all women and girls SDG 10: Reduce inequality within and among countries Indicator 7.1: Share of public sector Milestone 7.1: Ongoing: agents, paid through the new Human Biometric census of civil servants IDA national Resource Management Information finalized (FY19) x National Strategy for the Development of Statistics (P129572) FY14; System (percentage) Integrated human resources and Public Sector Capacity and Performance for Service Delivery Project Baseline (2017): 40 wage bill system operational (FY20) (P145261) FY14; Skills Development for Growth Project (P126049) Target (2022): 85 FY13; Population and Health Support project Source: Budget execution reports IDA regional x Sahel Women's Empowerment and Demographics Project (P150080) Indicator 7.2: Milestone 7.2: FY15. Expenditure out-turn in health and Budgets executed in Budget-Program education relative to budget format as of 2018 Pipeline: x Health IDA Baselines (2015): ±-50 percent Governance of Extractive Resources for Local Development (GOLD) Targets (2021): ±15 percent (FY19); Statistics Project (FY18) x Education Baselines (2015): ±40 percent 48 Targets (2022): ±15 percent ASA Source: Budget execution reports, PEFA x Programmatic PER (expected FY18-FY20); P4R assessment in health; Social Accountability and Service Delivery (FY18); Government to Persons Payment Systems (FY18); State-Owned Enterprises Assessment (FY18); Fiscal Risk Assessment (FY19). Objective 8: Streamlined regulatory framework for private sector and export development SDG 8: Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all Indicator 8.1 Milestone 8.1 Ongoing: Distance to frontier in Doing Business Establishment of One Stop Shop for IDA survey construction permits by 2020 x Niger Competitiveness and Growth project (P127204) FY12; Line of Baseline (2018): 52.34 credit to Financial institutions under the Niger Solar Energy project Target (2022): 62.0 Doing Business Trust Funds x Niger Investment Climate and Competitiveness Support (P148839) Indicator 8.2 Milestone 8.2 (FY16); Niger Africa Extractive Industries trust fund (TF) (P150108) Share of adult population with an Share of adult population with (FY15); Improving Access to Financial Services TA (FY16- FY19); account in a formal financial accounts in formal financial Improving access leasing TA AFL leasing Facility (F16-FY17). institution (including bank institutions (2019): 13 percent Pipeline: microfinance, mobile finance) (total), 9 percent (women) IDA Baseline (2014): 7 percent Target (2022) to be established after x Improving financial inclusion for women and SMEs (expected FY19); Governance in the Extractives Sector for Local Development (expected next FINDEX survey report is released. FY19) Source: FINDEX x Multisector DPOs (expected FY18-20) o/w regional x Transport and Logistics Corridor Project (FY20). MIGA x Explorative: political risk products in support of private investment 49 Objective 9: Improved urban environment for income generation and growth SDG 11: Make cities and human settlements inclusive, safe, resilient and sustainable SDG 16: Promote peaceful and inclusive societies for sustainable development, provide access to justice for all and build effective, accountable and inclusive institutions at all levels Indicator 9.1 Milestone 9.1 Ongoing: Additional MWs of electricity Call for tenders for Northcore IDA generated nationally / imported on interconnector launched by FY19 x Kandadji Niger Basin Water Resources Program APL2A (P148972) FY14; the grid x Disaster Risk Management and Urban Development Project (P145268) Baseline (2016): 0/0 FY14); Target (mid 2021): 200 x Electricity Access Expansion Project (P153743); Source: Ministry or Electricity, Projects x Urban Water and Sanitation Project (P117365) (FY11, AF FY16). x DPO series (P159969) (FY17) Indicator 9.2 Milestone 9.2 Share of extractives sector revenues Dedicated percentage (15 percent) of Trust Funds benefiting local governments. extractive sector revenues x Niger WASH Poverty Diagnostic (FY16); Baseline (2015): 0 percent transferred to affected communities Target (2022): 15 percent by FY20 Pipeline: Source: Budget reports, EITI reports - local and regional revenue IDA national management mechanisms in place by x Electricity Access Expansion Project AF PfoR (expected FY18); Niger FY19 Disaster Risk Management and Urban Development Project AF (FY19); Solar Generation PRG (FY20); Kandadji Niger Basin Water Resources Program APL2A AF (FY20); Multisector DPOs (FY18-20); ICT Sector Development and ID4D Project (FY19); Governance of Extractive Sector for Local Development (GOLD) (FY19); Niger improved water and sanitation service delivery in Peri-urban and in small towns (P154888) FY19; Urban-Local Government Support (FY21) IDA regional x North Core/Dorsale North Corridor (FY19) ASA x Programmatic Service Delivery, Accountability and Decentralization (expected FY18-20); Project monitoring, third party project supervision 50 in conflict areas and e-vouchers phase 1 (expected FY18) ad phase 2 (expected FY19). x Study on bottlenecks to urban growth and poverty; Water and Sanitation P4R Technical and Fiduciary Assessment; Urban Local Government Support Readiness Assessment; Solar IPP development study (ESMAP) 51 Annex 2: Completion and Learning Review COUNTRY: The Republic of Niger COVERAGE: Country Partnership Strategy FY13-FY16 DATE OF PERFORMANCE AND LEARNING REVIEW: May 29, 2015 INTRODUCTION 1. This Completion Report reviews the World Bank Group’s (WBG) program in Niger during FY13-FY16 (see Table 1 for Summary of CPS Program Self-Evaluation). The Report covers both program implementation and Bank performance. It has drawn on discussions with Bank Group staff members involved in the delivery of projects and investments, AAA and advisory work, a range of World Bank documents as well as other reports [and discussions with Government of Niger (GoN) counterparts]. 2. The FY13-FY16 WBG CPS comprised a planned program of US$917.6 million. By the end of the period, this had resulted in actual commitments of US$922.81 million (see Table 2). The CPS was built around two pillars – Promoting Resilient Growth and Reducing Vulnerability - and a cross-cutting theme: Mainstreaming Gender and Strengthening Governance and Capacity for Public Service Delivery. The results framework comprised a total of nine outcomes and 22 indicators. Active projects increased, from 12 in FY13 to 17 in FY16, while net commitments more than doubled from US$532 million in FY13 to US$1,115 million in FY16. There was also a steady increase in annual disbursements over the course of the CPS period from US$45 million in FY13 to US$202 million in FY16. 3. The CPS supported Niger’s new Poverty Reduction Strategy – the Plan for Economic and Social Development (PDES). The PDES was approved by the Council of Ministers on August 1, 2012 and represented the overarching framework for the GoN’s development agenda. It sought to operationalize the Niger Renaissance Program launched by the country’s president, incorporating the orientations of the Government’s general policy statement. The overarching focus of the PDES was on achieving higher real GDP growth of around eight percent over the PDES period (2012-2015) as the means to improve significantly the living conditions of all Nigeriens. 4. Progress towards CPS outcomes was reviewed in a Performance and Learning Review (PLR) discussed by the Board of Executive Directors on May 29, 2015. The PLR was prompted by changes in the external environment notably: (i) slower than anticipated growth coupled with an increased fiscal deficit; and (ii) growing insecurity associated with terrorist activity in the Sahel region. The PLR retained the overall structure of the CPS results matrix, but proposed adjustments to respond to the new environment including enhanced support for security and development programs under the umbrella of the G5 Sahel Group. The PLR did not seek to extend the strategy beyond FY16 pursuant to a request by the GoN to align the new CPF with the Government’s own medium term strategy, the PDES, which was initially expected in early FY17. The Government published its long term strategy, Vision 2035, in April 2017 and the PDES is now expected in early FY18. To bridge the resulting gap between the end of the last CPS and the start of the proposed new CPF this CLR provides an update on achievements during FY17. The actual assessment, however, is made on the basis of the results matrix for the years FY13-FY16 only, as set out in the PLR. 5. Overall, this Review finds that the CPF outcome was moderately satisfactory and that WBG performance was good. A majority of CPS outcomes, eight out of 11, were achieved or mostly 52 achieved (see Box 3)23 and the commitment to mainstream gender was partially achieved. Although two outcomes were not achieved there were no major shortfalls. Hence the overall rating for the FY13-FY16 Niger CPS Program is moderately satisfactory. World Bank Group performance successfully contributed to achievements in some areas. The design and implementation of the program, including the ASA program (Table 3), contributed to the achievement of a significant number of CPF objectives. The WBG proactively engaged to address implementation problems, including issues relating to the Kandadji Program, and adapt to changing circumstances. Bank performance is therefore rated as good. Box 3: Summary of Program Implementation CPS PROGRAM PERFORMANCE 6. Overall the results achieved through the FY13-FY16 CPS were moderately satisfactory. The program was divided into three pillars. The results of these were as follows: x The results of the first pillar, ‘Promoting resilient growth’, were moderately unsatisfactory. The result of the first outcome was partially achieved, namely: ‘Fiscal performance consolidated’. The second outcome, ‘Improved investment climate and access to finance for SMEs,’ was mostly achieved. The third outcome, namely ‘Increased agricultural productivity of selected crops in selected areas’, was mostly achieved; and the fourth outcome, ‘Improved selected trade infrastructures’, was not achieved. x The results of the second pillar, ‘Reducing vulnerability’, were satisfactory. Three outcomes were achieved, namely ‘Increased adoption of climate resilience policies and actions in targeted communes’, ‘Improved education and employment skills for youth’, and ‘Increased access to water, sanitation, health and population services’. One outcome was mostly achieved, namely: ‘Increased access of poor and food insecure people to safety net programs’. x The results of the third pillar, ‘Mainstreaming gender and strengthening governance and capacity for public service delivery’, were moderately satisfactory. One outcome was partially achieved namely: ‘Improved budget execution and efficiency’. Two outcomes were achieved, 23 Outcomes are rated as ‘mostly achieved’ where a majority of quantitative targets have been met; ‘partially achieved’ where some but less than half of quantitative targets have been met; and ‘not achieved’ where few if any targets have been met. 53 namely: ‘Improved transparency of sector budget allocations’ and ‘Improved transparency in the mining and oil sector’. An additional commitment to mainstream gender, though not included as a results indicator was partially achieved. Pillar 1: Promoting Resilient Growth – Moderately Unsatisfactory CPS outcome 1.1: Fiscal performance consolidated – partially achieved 7. During 2012-2014 the Bank supported the GoN’s public finance reforms through a series of three Shared Growth Credits (SGCs, FY12, FY13 and FY14). The Government’s reform plan had been adopted in December 2011 and included reforms relating to the collection of tax revenue, the preparation and execution of the budget, financial accounts, controls and transparency, cash management, debt and procurement. Bank support supplemented assistance provided by the IMF including through an Extended Credit Facility which concluded in March 2012 which also aimed to rationalize the management of public finances and debt. 8. Despite continued development efforts, there was no significant improvement in tax and customs collection during the period of the CPS. Following the Niger Reform Management and TA (FY10) project, the second Shared Growth Credit (FY14) aimed to reduce multiple tax inspections on enterprises and continue reforms of the customs administration. However aggregate indicators show no significant change. The indicator in the CPS results matrix was originally specified as a PEFA indicator. Since the PEFA methodology has changed substantially in recent years, the latest 2016 Niger PEFA report, Annex 1, applies the previous PEFA methodology to both 2012 and 2016 public financial management outcomes to enable a comparison. Using this approach the current rating for Indicator P15 is D+ i.e. no change relative to 2012. 9. There was a small improvement in Treasury and debt management. The rating for treasury and debt management (PEFA indicator P17) improved to C+ in the September 2016 PEFA report relative to C in 2012, albeit short of the target B in the CPS results matrix. Although revenue collection improved from 16.6 percent of GDP in 2013 to 18.1 percent in 2015, it remained well below the West African Economic and Monetary Union (UEMOA) Commission convergence criteria threshold of 20 percent, and was outpaced by expenditure growth. Revenues have subsequently declined to 16.1 percent in 2017. The deterioration of the basic fiscal balance (revenues minus expenditures net of externally financed capital expenditure) from -2.1 percent of GDP in 2013 to -7.5 percent in 2015 has now reversed largely on account of improving revenues. The fiscal deficit has been largely financed by external funding, which accounted on average for over 80 percent of the annual deficit and reflect strong development partner support for the Government's program. There were some improvements in debt management during this period although significant issues remain. Quarterly debt management reports, an inventory of public debt and a guidance note on the national public debt policy were prepared and sustainability criteria of public-private partnership contracts (CPPP) were introduced. CPS outcome 1.2: Improved investment climate and access to finance for SMEs – mostly achieved. 10. With Bank support, there were modest improvements in the overall investment climate. The annual number of enterprises registered jumped from 2094 during 2012 to over 7000 during January to June 2016 compared to a target of 3000 per year. Niger’s distance to the frontier’ of the Doing Business index, improved from 42.6 to 47.1, supported by Shared Growth Credits (FY13 and FY14) and the Competitiveness and Growth Support Project (FY12). There are no data available to validate the second indicator on the SME loan portfolio of banks, nor gender disaggregated data for 54 this outcome. Given the very substantial over-achievement of enterprises registration, this outcome was rated “mostly achieved”. CPS outcome 1.3: Increased agricultural productivity of selected crops in selected areas – mostly achieved. 11. During the CPS, Bank support for improved agriculture in Niger focused on accelerating technology adoption of in the selected commodities and value chain development. Bank support has improved yields in millet, sorghum and cowpeas through the regional West Africa Agricultural Productivity Program (FY11) and helped strengthen value chains in rice, meat, onion and butchery through the Agro-Sylvo-Pastoral Exports and Market Development Project (FY09), the Second Emergency Food Security Project (FY15) and the Competitiveness and Growth Support Project (FY12). These projects have contributed to significant increases in productivity for rice (up 42 percent), millet (up 5 percent) and sorghum (up 58 percent) exceeding the CPS target of “25 percent productivity increases in two out of three instances”. CPS outcome 1.4: Improved selected trade infrastructures – not achieved. 12. Bank support for trade infrastructure has been delivered primarily through the Competitiveness and Growth Support Project (FY12). This support aimed to foster trade and regional integration with Nigeria and to attract private investment in the Kano, Katsina and Maradi (K2M) corridor. However, proposals to support the development of inter-urban roads and the rehabilitation of the Maradi Central Market (to facilitate trade with Nigeria) were dropped as the GoN shifted priorities to other areas. Although road blocks were almost halved from 3.0 to 1.6 per 100 km, the introduction of pre-inspection requirements raised the time needed to process imports, while the per container cost of exporting increased by 25 percent from 2011 to 2015. 13. During the CPS, MIGA maintained an ongoing exposure of US$5.2 million in Niger, supporting the import verification and scanning operations of Cotecna Inspection S.A. and has continued to explore additional investments under its traditional covers of Transfer Restriction, Expropriation, Breach of Contract and War and Civil Disturbance. Pillar 2: Reducing Vulnerability – Satisfactory CPS outcome: 2.1. Increased access of poor and food insecure people to safety net programs – mostly achieved 14. Bank support has helped reduce vulnerability by enhancing food security . The Niger Safety Net Project (FY11) supported the establishment of a well-performing safety net system by investing in management systems, targeting and payments systems, monitoring and evaluation and capacity building. The cash transfer program and accompanying measures supported poor and food insecure households to increase their income and invest in their human capital, through short term labor intensive public works. With Bank support, 137,636 households had accessed cash transfer and cash for works programs by June 2016, exceeding the CPS target of providing at least 100,000 additional households with access to the safety net programs (cash transfer and cash for work) by 2015. However, since the target was met in 2016 rather than 2015, the overall outcome is rated “mostly achieved”. 55 CPS outcome: 2.2 Increased adoption of climate resilience policies and actions in targeted communes – achieved 15. Good progress was made strengthening production systems and thus enhancing the resilience to climate change and variability in targeted communities. Bank support through the Niger Community Action Project for Climate Resilience resulted in additional agricultural areas with improved sustainable land management of 1407 hectares. Additionally, an area of 887 hectares was cultivated with improved irrigation and drainage services under the Second Emergency Food Security Project. Hence the CPS target of 2000 hectares was achieved. Bank support also enabled land and water management practices to be improved and scaled up over an area of 7,584 hectares of sylvo- pastoral land. This result exceeded the CPS target of 5,000 hectares. Under the same project, climate change and related adaptation measures were integrated into all 38 community development plans included in the project and also the national health strategy. This result also exceeded the target of 25 local development plans incorporating climatic resilience by 2015. Additionally, project interventions under the Niger Community Action Project for Climate Resilience led to an increase of 53 percent in crop yield and 61 percent of forage yield in the areas of intervention, compared to other sites in similar agro-ecological zones. Progress is also being made to integrate climate resilience into the national water resource management and transport strategies were delivered in December 2016 and March 2017, respectively. Under the Niger Basin Water Resources Program APL 2A (FY15), which involves nine communes, the number of direct beneficiaries from the completed micro projects is estimated at 359,572 people, including 182,558 women (51 percent). Overall, therefore, this outcome is rated as “achieved.” 16. During the CPS, IFC is responsible within the WBG for the private sector interventions in Niger under the regional Pilot Program for Climate Resilience (PPCR). US$50 million in grant finance and US$60 million in concessional loan finance were made available to fund interventions under Niger's Strategic Program for Climate Resilience (SPCR) in collaboration with African Development Bank’ private sector. Phase I of the program comprises Advisory Services to test the financial viability of commercializing improved irrigation systems. The program aims to facilitate adoption of these systems by farmers in Niger, increase agricultural productivity and strengthen resilience to climate change. Pending the success of Phase I, a second phase will comprise investments and associated AS to scale up private sector investments in improved irrigation systems. CPS outcome 2.3: Improved education and employment skills for youth - achieved 17. Bank assistance helped to increase access to quality education as well as vocational and technical education in Niger. The education system in Niger has seen rapid improvements in recent year supported by, inter alia, the GPE Support to Quality Education Project (FY15). The primary completion rate increased from 52 percent in 2012 to 62 percent in December 2015 (73.8 percent by December 2016), thus exceeding the CPS target of 60 percent in 2015. The target of 53 percent for girls’ primary completion rate was also achieved (53.5 percent in the December 2015 ISR and 64.6 percent in the June 2016 ISR). 18. By May 2015, 2,730 youth were enrolled in dual apprenticeship programs, and by December 2016, 27 percent of the enrolees were women. While the CPS target was to have 800 persons complete dual apprenticeship programs in 2015 (including at least 20 percent women), the objective is considered to be mostly achieved given the scale of enrolments. Of the first cohort under the Skills Development for Growth Project (FY13), 109 apprentices completed their training in February 2016 and another group in August 2016. In addition, 860 apprentices with limited education have benefited from literacy courses. Furthermore, 373 youth were enrolled in various training programs related to agriculture trades such as poultry, agri-food processing, and fish farming. From this cohort 56 160 youth completed their training in February 2016 and 520 new young people were recruited to start their training in the same agriculture areas by July 2016. By December 2016, a group of 472 (of which 48 percent were women) had completed their training. CPS Outcome 2.4. Increased access to water, sanitation, health and population services - achieved 19. Bank support enabled a significant increase in the number of people with access to drinking water and sanitation services. 536,750 additional people in selected urban areas obtained access to improved water sources by 2015 through the Urban Water and Sanitation Project (FY11) compared with a target of 509,000. The project also provided 58,530 additional student access to sanitation services in school by 2015, nearly achieving the CPS target of 60,000 by 2015. Additional financing approved in FY17 is expected to further increase these outcomes to 850,000 people and 87,000 students, respectively. 20. There were also major advances in the supply and quality of health care services for the population. Bank support in the health sector was provided through the HIV/AIDS Support Project 2 (FY11). As a result of this support 30,096 sex workers were seen in health facilities in 2015 well in excess of the CPS target of 5,000 by 2015. By December 2016, this number had risen to 70,990. In addition, 12,621 sex workers were treated for sexually transmitted diseases by December 2015 while the target was 5000 by June 2016. Overall the ICR recorded that 66 percent of direct project beneficiaries were female. Due to excellent results in all of the four indicators, this outcome is rated “achieved”. Regional projects were a further important instrument for supporting health care in Niger. The Bank supported the empowerment of women and adolescent girls and improved access to child, reproductive and maternal health services through the Sahel Women’s Empowerment and Demographic Project (FY15). Similarly, it helped increase access to and use of harmonized community- level services for the prevention and treatment of tropical diseases through the Sahel Malaria and Neglected Tropical Diseases Project (FY15). Cross-cutting theme: Mainstreaming gender and strengthening governance and capacity for public service delivery – moderately unsatisfactory 21. The cross-cutting theme comprises four outcomes: improved budget execution and efficiency; improved transparency of sector budget allocations; improved transparency in the mining and oil sector; and (proposed): incorporation of gender across CPS outcomes. CPS outcome 3.1: Improved budget execution and efficiency – partially achieved Total expenditure realized relative to initially approved budget 22. Notwithstanding some technical improvements, budget execution rates have not improved relative to 2011. Bank support in this area was delivered primarily through the series of three Shared Growth Credits (FY12, FY13 and FY14) and the Reform Management and TA project (FY10) and resulted in improvements in budget classification, allocation, release and expenditure analysis and reporting. The CPS indicator focuses on the budget execution rate which measures the difference between actual primary expenditure and primary expenditure originally approved. It aims to assess whether the public finance management system has the necessary mechanisms to develop and agree a realistic budget and to execute expenditure consistent with the approved budget. However, the PLR indicator did not specify the precise basis on which execution rates were to be calculated leading to difficulties in measurement. This CLR has therefore adopted the PEFA budget execution indicator, P1: total expenditure realized relative to initially approved budget. Based on this revised indicator, there 57 was no improvement during the CPS with the rating remaining flat at D in both the 2012 and 2016 PEFAs. Public competitive bidding and optimal use of resources 23. The GoN maintained a relatively high share of public procurement subject to competitive bidding over the course of the CPS. The PLR indicator in this case was not easily capable of measurement. Competitive bidding is defined in the CPS following the GoN classification which includes all forms of procurement other than direct contracts. This is wider than the World Bank definition which excludes certain forms of bidding such as shopping. Data is also only available with a considerable lag. The most recent available audit report is from 2013 and the latest audit report available at the time of the CPS was published in 2010. Progress, with Bank support, in computerizing the procurement chain using the Integrated Public Procurement Management System (SIGMAP) has been slow. For these reasons a new indicator is proposed, namely the 2016 PEFA indicator P19, which measures public competitive bidding, optimal use of resources and public procurement thresholds. Applying a consistent assessment methodology to both 2012and 2016 PEFA data, this indicator remained unchanged at B+. Given the aspiration of the original CPS target was to maintain the existing share of public procurement contracts awarded through competitive bidding at existing levels this indicator is considered to be achieved. CPS outcome 3.2: Improved transparency of sector budget allocations – achieved 24. Transparency of sector budget allocations has improved somewhat albeit from a relatively low base. According to the Open Budget Initiative the GoN made two of eight key budget documents available to the public in 2015 in a timely manner – up from one document in 2011. To further improve budget transparency, Niger should prioritize publication of the Citizen’s Budget and Audit Report. CPS outcome 3.3: Improved transparency in the mining and oil sectors – achieved 25. Transparency has been increasing in both the oil and mining sectors, although recent developments since the CPS suggest a reversal. Niger is the world’s fourth largest producer of uranium and an important producer of gold, coal and crude oil. It was the first francophone African country to achieve EITI validation in 2011, and later attained a seat on EITI’s International Board. Transparency improved with the publication of more data in the oil, large scale, artisanal and small- scale mining sectors, including data on employment and payments by Niger’s oil refinery. EITI has been a useful platform for communication between the industry, civil society and the public sector. Since the CPS period however, Niger was suspended from EITI and announced its full withdrawal in October 2017. The main areas of disagreement have been civil society engagement, governance of EITI process, transparency in license allocations and quality of EITI reporting. As such, significant further institutional reform is needed is to recover earlier gains (inside or outside the EITI process) and to resolve key issues such as the environmental impact of mining and local communities’ appropriate share of mining revenues collected by the Government. Mainstreaming gender – partially achieved 26. The CPS committed in the title of this cross-cutting pillar to mainstream gender and in the text, but no indicator was included in the results matrix. Although there are no related indicators included under this pillar, a number of CPS indicators under other pillars did explicitly include gender targets against which this commitment can be evaluated. In addition, this CLR reviews other indicators that have gender disaggregated data available. In practice, less than one third of indicators include a gender dimension at all. 58 27. Although the CPS failed to adequately mainstream gender in its results framework, gender was incorporated at the project level in several sectors. Less than one third of the original or revised CPS indicators included any gender dimension at all. In agriculture, 38 percent of beneficiaries of the Agro Pastoral Export and Market Development project (FY09) were women in FY16 exceeding the project target of 35 percent a year early. In education, the gender parity index fell short of its target for both primary and secondary education in targeted areas under the Support to Quality Education Project (FY15), although the overall number of female beneficiaries was on track. Outcome 2.4 of the CPS focused on women’s health. The success of these projects is reflected in the ratings for that outcome as already noted above. The Sahel Women's Empowerment and Demographics Project (FY15) had as its primary focus the empowerment of women and adolescent girls and improving their access to quality reproductive, child and maternal health services. Knowledge and awareness of maternal, new-born and child health issues, among others, improved significantly among Project project participants. The Regional Sahel Pastoralism Support Project (FY15), which is still at an early stage, focused on access to essential productive assets, services, and markets for pastoralists and agro-pastoralists, including women. In other projects, such as the Skills Development for Growth Project, gender mainstreaming was achieved with a stronger focus on female beneficiaries. However, in other projects, opportunities were lost to improve women’s representation, empowerment, and to reverse biases in access to opportunities. WBG PERFORMANCE 28. Overall Bank performance during the FY13-FY16 CPS was good. The design and implementation of the program successfully contributed to the pursuit of the key CPS Objectives and there was timely adaptation to changing circumstance and priorities through the PLR. A sound program of ongoing activities is in place for the next strategy period. Design of the CPS 29. The outcomes of the FY13-FY16 CPS were broadly relevant to the context in Niger in 2012/13. The two pillars of the CPS, Promoting Resilient Growth and Reducing Vulnerability, effectively incorporated the five pillars comprising the Government’s Economic and Social Development Plan, namely: (i) strengthening the credibility and efficiency of public institutions; (ii) creating the conditions for inclusive, sustainable and balanced development; (iii) food security and sustainable agricultural development; (iv) competitive and diversified economy for accelerated, inclusive growth; and (v) promotion of social development. 30. WBG interventions were generally relevant to CPS objectives. Independent Evaluation Group (IEG) ICRs for projects exiting during FY13-FY16 also consistently rated the relevance of project outcomes as high. Project design was also rated in high in more than half of projects. Some projects were considered to have only modest relevance in their design. This was because they failed to take account of capacity deficiencies and/or their results frameworks were insufficient in particular respects. 31. In addition, the CPS did reflect some of the guidance that was sought as part of the preparation of the FY13-FY16 CPS. The FY13-FY16 CPS included lessons from the last Completion Report that reviewed performance under the FY08-FY11 CPS. For example, the FY13-FY16 CPS concluded that: i) the strongest impact is achieved when multi-sectorial DPOs are delivered in parallel with sectoral operations and that a programmatic DPO approach helps keep the reform agenda on track in an environment of frequent external shocks and instability. In practice the series of three Shared Growth Credits were well supported in some respects sectors by investment operations and less so in others. Bank projects and TA buttressed the three SGCs in the area of fiscal consolidation. 59 The SGCs also aligned well with the IMF’s Extended Credit Facility Arrangement (FY12). In other areas, such as agricultural productivity, the foundations laid by the SGCs have not been followed up due to delays in associated project implementation. The CPS also reflected guidance on the need to engage for the long term. The series of three SGCs as well as the extension of the Community Action Plan are both evidence of a long-term engagement by the Bank that has helped reinforce Government commitment and enabled the Bank Group to play a convening role with other donors. This did not prevent the Bank also responding successfully to short term crises, for example through the Second Emergency Food Security Project (FY11). 32. The results matrix contained a number of weaknesses that have reduced the value of the CPS as an instrument for monitoring and evaluating progress. On one hand the matrix comprised a manageable number of pillars (three), outcomes (nine) and indicators (22). Most indicators included a target that could be verified using reasonably accessible data. The FY13-FY16 CPS also recognized that addressing gender and demographic issues was challenging and needed a long term, multi- sectoral, sustained approach based on social-cultural economic analysis and action. On the other hand, the CPS results matrix also contained flaws. Almost a third of indicators provided a weak basis for assessment in the current CLR. In the case of three indicators (relating to outcome 1.4 on improved trade infrastructure) there was no Bank activity at all and hence no results to report. In two cases (relating to the outcome improved budget execution) indicators were poorly defined and had to be redefined for the CLR to permit an assessment. In one case - expansion of the SME loan portfolio - there were no data and hence the indicator was not validated. In the case of the third, cross-cutting pillar, there was no mention at all of gender in any of the indicators for this pillar, nor sufficient disaggregation of other pillar outcome indicators by gender. Finally, the Treasury and debt management indicator, 1.1.2, was excessively ambitious in calling for an improvement from D to B, a leap in progress that is rarely seen in contexts such as that in Niger. 33. The CPS provided a coherent analysis of possible risks and mitigation strategies to address these. The first risk comprised Sahel crisis and security related risk. The Bank proposed to support Government efforts to enhance security through implementation of a PER of the security sector as well as a readiness to alter the strategy in a flexible manner. The second key risk consisted of exogenous climactic risks such as drought, locust infestations, flood and other shocks. The Bank proposed to mitigate this risk through its support for disaster risk management and climatic adaptation activities. A “zero-dollar” Contingency Emergency Response Component (CERC) was included in a number of Bank projects. This aims to reduce damage to infrastructure, ensure business continuity, and enable early rehabilitation. In the event of an eligible adverse event, the GoN may request the Bank to channel resources from other components into an IRM. The IRM enables the use of a portion of uncommitted funds from the overall IDA portfolio to respond to emergencies. The third risk involved natural resources including over-reliance on volatile mineral revenues and wider management deficiencies. Bank strategies to mitigate this included support to increase transparency and management standards in the extractives sector. Implementation of the CPS 34. A recent CPPR found that there was room to improve both Bank and Government management of the Niger portfolio. On the Bank side, the limited number of staff based in Niamey has limited the Bank’s ability to drive project implementation to the extent needed. On the Government’s side there was limited ownership of projects, with a tendency to see these as Bank initiatives. This meant that opportunities to achieve synergies across projects were sometimes missed. As a result of these and other factors, the disbursement rate in June 2016 was approximately 20 percent, somewhat lower than might be expected given the age and profile of the portfolio. The overall quality of the portfolio, however, was broadly satisfactory. 60 35. Bank support through the CPS was hampered by the effects of an unstable security environment on Bank projects. Poor security resulted in delays in realizing outcomes as implementation of projects was negatively affected; inability to assess project implementation in areas of insecurity; the overall impact of reassigning counterpart funding to the maintenance of security at the expense of longer term development. Several projects had the potential to trigger a reallocation of up to five percent of the undisbursed IDA allocation for Niger in the event of an emergency. No project, however, sought to trigger this mechanism. 36. The Bank acted promptly to adjust its strategy in light of emerging circumstances. The World Bank’s approach to the resettlement and other safeguards issues posed by the Kandadji Program are a clear example of actively responding to new circumstances (see para 49) In addition the Bank acted swiftly to adjust its strategy in light of: (i) lower than expected growth and fiscal consolidation and (ii) a worsening security situation. A PLR was discussed by the Board of Executive Directors in May 2015. While the basic structure of the CPS remained intact a number of adjustments to the results matrix were made. Under the first pillar, Promoting Resilient Growth, new opportunities to better integrate Niger with the Benin corridor resulted in the introduction of new dry port and other targets in the results matrix. At the same time Bank support for the telecoms sector was scaled back in response to shifting Government priorities. The Bank also set out a plan to scale up its support for access to finance for SMEs and to consider additional support for the energy sector through a new series of DPOs. The first of a new series of DPOs, First Public Investment Reform Support Credit was approved and fully disbursed in FY16. The Credit supported improvements in Niger’s Public Finance and Investment Managements systems; establishment of the policy and regulatory framework necessary for a well- functioning irrigation system; and facilitating reform of the electricity sector. An assessment of the first DPO is underway. Under the second pillar, Reducing Vulnerability, the PLR laid out a scaled-up set of interventions, including those under the Bank Group Sahel Initiative, that aimed to address a deteriorating security situation. Additional support for social safety net programs was also proposed and translated into preparation and approval of the Adaptive Social Safety Nets Project (FY16). 37. The Bank has played an important role coordinating budget support operations. The Bank has recently taken on a leadership role among the development partners involved in budget support operations. Better harmonization of budget support in Niger is expected to help reduce transaction costs for government, support policy coordination within government, and improve the coherence of policy dialogue among development partners. This in turn is expected to reduce the burden on limited government implementation capacity. The collaboration between the Bank and Millennium Challenge Corporation (MCC) has also helped advance reforms in irrigation and achieve in the DPO operation reforms that were expected to be only fulfilled in future operations. 38. The Bank has also collaborated effectively with the IMF. The Bank worked closely with the IMF on a Joint IDA-IMF Staff Advisory (JSA) Note on the Government’s Economic and Social Development Plan 2012-2015. The series of three Shared Growth Credits dovetailed well with the program supported by the Fund’s Extended Credit Facility. 39. The Bank has worked with a wide range of partners. Key development partners have included the United Nations Development Programme (UNDP), the EU, France, Germany, Switzerland, Japan and others. Several projects have been jointly funded. For example, the Bank’s Support to Quality Education Project (FY15) is funded by a number of development partners who have undertaken supervision missions jointly with the Bank. The Bank is also providing direction as well as resources to UNFPA for technical support to government to address the demographic challenge in the country. In addition, the World Food Program is adopting the Bank’s targeting and monitoring approaches to better identify beneficiaries and assess the effectiveness of their operations. Within 61 the WBG, by contrast, there has, in practice, been little opportunity for MIGA and IFC to extend their exposure although both organizations continue to look actively for opportunities. LESSONS LEARNED 40. The Bank’s experience in Niger during FY13-FY16 has yielded a number of insights and lessons. These are discussed in detail in Table 4 and include: (i) early and substantive involvement by Government counterparts to ensure subsequent ownership of projects; ii) encouraging greater Government leadership of WBG-financed projects through simpler program design and better linkages across the WBG portfolio; iii) the need to strengthen the results matrix in the next Country Partnership Framework in order to provide a firm basis for monitoring and evaluation; iv) the importance of combining short term economic and humanitarian needs as well as longer term development objectives to maximize the impact of emergency operations; v) ensuring sufficient preparation and sufficient incentivization of key counterparts in order to engage hard-to-reach communities and make a reality of decentralization ambitions; vi) doing more to integrate climate change across the portfolio; (vii) the need to develop strategies to mitigate the effect on Bank project implementation of insufficient counterpart government staff in regions experiencing prolonged insecurity; (viii) doing more to mainstream Gender dimension across the portfolio in order to mitigate the high population growth issue; and ix) the value of a firm but supportive dialogue in aligning the GoN’s view on safeguards as exemplified by the Kandadji Program. 41. Early and substantive involvement by Government counterparts is needed to ensure subsequent ownership of projects. In several instances there was insufficient Government involvement in the appraisal of projects. This later resulted in a lack of Government engagement. For example, despite repeated encouragement by the Bank, the Ministry of Agriculture played a relatively marginal in the early preparation of the Climate Smart Agriculture Support Program. This has resulted in a sub-optimal level of Government engagement in the project following approval. Government involvement has also been undermined on occasion by overly prominent project implement units. The Urban Water and Sanitation Project (FY11), for example, although well managed by a strong Project Implementation Unit (PIU) in its first phase, suffered during the preparation of additional financing by insufficiently close Government involvement. 42. Ensuring greater Government leadership of WBG-financed projects will require alternative delivery mechanisms, capacity building and better linkages across the WBG portfolio. The June 2016 Country Portfolio Performance Review identified the need for greater overall leadership to ensure that Bank-financed projects continue to progress in a satisfactory manner. At the same time ,it is clear that the competing demands, such as a highly fragile security environment, place additional pressures on the Government’s slender resources. The Bank as project funder cannot itself substitute for Government leadership. Moreover, Bank staffing resources in Niamey are limited in number. It is therefore important that: (i) alternative program designs are considered, including third party delivery e.g. through non-governmental organizations (NGOs) and out-sourcing of procurement; (ii) there is capacity building e.g. through the United Nations Office for Project Services (UNOPS) and a reduced use of PIUs; and (iii) opportunities are created, perhaps enabled by the Bank, to enable better communication across projects and to maximize synergies between elements of the overall portfolio. While multi-sector programs can reduce overall transaction costs they also require leadership at the highest level of government. This may stretch capacity unless additional efforts are made to build capacity. 43. A strong program of ASA helps lay the foundation of a strong lending program. A wide range of ASA supported both the Promoting Resilient Growth and Reducing Vulnerability pillars. Examples of core ESW included public expenditure reviews; studies to underpin the development of future interventions in energy and in gender; study on country health status (CSR); study on Demography 62 and policy notes on growth, poverty and access to finance. Other products addressed issues of water, sanitation, governance and corruption among others. The PLR added an extensive program of ASA also. 44. Effective monitoring and evaluation of Bank-supported programs requires a strong results matrix. The PLR was completed in 2015 and offered an opportunity to revise the results matrix so that it could act as a firm basis for implementation and evaluation during the remaining year of the CPS. In practise the matrix suffered from a number of weaknesses including: a lack of Bank activity in some cases; poorly defined indicators; lack of data; no mention of gender in many indicators even though gender was intended to be mainstreamed; and excessively ambitious targets in at least one case. 45. Emergency operations work best when they address short term economic and humanitarian needs as well as longer term development objectives. In a fragile environment such as Niger Emergency operations are most effective when they prioritize actions focusing on the immediate restoration of productive assets for food-insecure rural households, instead of trying to tackle the deep causes of recurrent food crises (such as irrigation systems). Similarly, poor people struggling with survival frequently rank productive micro-projects higher than projects focusing on natural resource management. Encouraging engagement in long-term natural resource management, therefore, requires concrete incentives such as food or cash for work. 46. Engaging hard-to-reach communities and making a reality of decentralization ambitions require significant preparation and incentivization of key counterparts. The Bank’s work supporting the construction of schools demonstrated that a community based approach to construction should be adopted in difficult-to-reach areas. However, communities need to be properly prepared if they are to participate in school construction. Similarly working with non-governmental organisations can be a critical component of reaching communities. For example, Veterinarians Without Borders oversaw the distribution of 17,000 goats (3 per woman) to 5,600 households in 45 villages in the departments of Ouallam and Banibangou as part of the Second Emergency Food Security Project (FY14). The Multisector Demographic Project also suggested that by linking key behavior change messages to issues of women’s economic empowerment the impact of awareness campaigns supported by the project could be increased. 47. Measures to address climate change need to be better integrated in the WBG’s portfolio in Niger. The 2015 PLR correctly noted that the risk of climate change should be monitored and addressed alongside risks of security and disaster. Monitoring the impact of climate change and other risks and developing strategies to address these were to be built into the WBG’s portfolio in Niger. In reality, however, climate change did not feature so centrally in project design. In the Community Action Program 3 (FY13) climate change was a relatively tangential consideration. Similarly, in the Disaster Risk Management and Urban Development Project (FY14) attempts to address climate change were offset by a lack of capacity among government counterparts. Overall the WBG could have done more to integrate measures to adapt to climate change in the agricultural sector. 48. There is a need to develop strategies to mitigate the effect on Bank project implementation of insufficient counterpart government staff in regions experiencing prolonged insecurity. Regions experiencing prolonged insecurity, such as Diffa region in the south-east corner of Niger, have had difficulty attracting and retaining staff in education, health and other government departments. This has highlighted the need for the Bank to develop back-up options to mitigate this risk in the new CPF. 49. A firm but supportive approach resulted, ultimately, in an alignment of the Government’s approach to safeguards with that of the Bank. The WBG’s support for the Niger Basin Water 63 Resources Development and Sustainable Ecosystems Management Program became effective in March 14, 2013 and additional financing effective December 12, 2014. The World Bank’s total support to the Kandadji Program amounts to US$258.2 million. Approximately 60,000 people will need to be resettled as part of project implementation, including 10,000 in the first phase of the Resettlement Action Plan at the dam site (RAP1) and another 50,000 in the second phase of resettlement in the reservoir impoundment zone (RAP 2). The World Bank worked extensively with the Government during FY13-FY16 to ensure full and effective implementation of RAP1 at the dam site. Despite these efforts, the World Bank was obliged to partially suspend disbursements on September 23, 2016 due to: 1) continued challenges in the implementation of RAP 1 (issues related to poor quality of irrigated perimeters and housing, difficulties of access to drinking water, etc.); and 2) concerns over the feasibility of RAP 2, given that the proposed reservoir elevation (228m) would affect a large number of agro-pastoral communities, including a few located across the Mali border. On December 23, 2016, however, the suspension of disbursements was lifted. The Government of Niger has now committed to implementing a remedial Action Plan to fully resolve issues highlighted in an independent audit of RAP1 and has requested that the Bank fund implementation of the Action Plan. 64 Table 1: Summary of NIGER FY13-FY16 CPS Program Self-evaluation Cluster of outcomes and outcome Status and evaluation summary Lending and non-lending activities that Lessons and suggestions for the indicators contributed to the outcome new CPS PILLAR 1: PROMOTING RESILIENT GROWTH MODERATELY UNSATISFACTORY Related country development goals: Reduce vulnerability to external shocks through a stable and resilient macroeconomic environment (debt management, revenues collection etc.); increase access to finance; increase access to finance for SMEs; boost private investments; ensure food security and sustainable agriculture development; increase access to modern infrastructures. CPS Outcome 1.1:Fiscal performance consolidated PARTIALLY ACHIEVED 1.1.1 Efficiency of tax and 1.1.1Not achieved. The 2016 IDA x Stronger synergies between customs collections has improved. PEFA report, Annex 1, applies the Growth Policy Reform Operation II DPO policy reforms and related Increase in PEFA rating of 2012 PEFA methodology to 2016 (FY12); Shared Growth Credit I (FY12); investment operations could performance indicator 15. results to enable a comparison. Shared Growth Credit II (FY13); Shared have ensured better outcomes. Baseline: D+ in 2012 Based on this approach the Growth Credit III (FY14). x When institutional capacity at Target: C in 2015 current rating for Indicator P15 is sector ministries is limited, it D+ i.e. no change. IFC: may be advisable to concentrate Source: PEFA (September 2016) None on a limited number of ministries to improve the 1.1.2 Treasury and debt 1.1.2Partially achieved. 2016 Trust Funds: prospects for Program management has improved. PEFA report, Annex 1, applies the NE: Support to the Niger Supreme Audit outcomes. Increase in PEFA rating of 2012 PEFA methodology to 2016 Institution (FY13); Niger Trust Fund for x Sustained follow-up and performance indicator 17. results to enable a comparison. Statistical Capacity Building -2 (FY14); monitoring is critical for the Baseline: C in 2012 Based on this approach the Niger Investment Climate and improvement of audit functions. Target: B in 2015. current rating for Indicator P17 is Competitiveness Support (FY16). x DPO results indicators should be C+ i.e. a modest improvement. closely related to the prior Source: PEFA (September 2016) Other ASA: actions, for more effective PER annual updates. evaluation. CPS Outcome 1.2: Improved investment climate and access to finance for SMEs MOSTLY ACHIEVED 1.2.1 Average number of new 1.2.1 Achieved. 7000 enterprises IDA x The inclusion of gender enterprises registered per year were registered in the year to Growth Policy Reform Operation II disagreggated indicators for increased. June 2016. (FY12); Shared Growth Credit I (FY12); business registrations could Baseline: 2094 in 2012 Niger - Competitiveness and Growth have allowed for more analysis 65 Table 1: Summary of NIGER FY13-FY16 CPS Program Self-evaluation Cluster of outcomes and outcome Status and evaluation summary Lending and non-lending activities that Lessons and suggestions for the indicators contributed to the outcome new CPS Target: 3000 in 2015 (of which 20 Source: Competitiveness and Support (FY12); Shared Growth Credit II into the gender bias and percent led by women) Growth Support (FY12) ISR (June (FY13); Shared Growth Credit III (FY14); measures needed to promote 2016). Electricity Access Expansion Project female entrepreneurship. 1.2.2 SMEs loan portfolio increased. (FY16). x Administrative delays by funders Baseline: US$19 million in 2012 1.2.2 Not validated. No data need not delay trust fund Target: US$23 million in 2016 (of available. Trust Funds activity if this is mitigated by which 20 percent are received by Source: Competitiveness and Energy Sector TA (FY16); Agriculture Risk conducting preparatory activity female-owned SMEs) Growth Support (FY12) ISR (June Management and Inclusive Green in parallel – as shown by the 2016). Growth TA (FY14); Niger Investment Niger Investment Climate and Climate and Competitiveness Support Competitiveness Support (FY16). project (FY16). Other ASA: None CPS Outcome 1.3: Increased agricultural productivity of selected crops in selected areas MOSTLY ACHIEVED 1.3.1 Average yield of cereal crops 1.3.1 Mostly achieved. Results IDA: x The regional design of WAAPP1- in targeted rain fed areas increased. achieved for the main crops : Niger Agro-Pastoral Export and Market Niger was an effective means of Baseline (kg/ha) average over 2008- Millet 530 kg/ha, Sorghum : 561 Development Project (FY09); West transferring technologies across 12: kg/ha, Irrigated rice : 7800 kg/ha Africa Agricultural Productivity Program countries and supporting Millet: 506 Source: Ministry of Agriculture, -1C Niger Phase 1 (FY11); West Africa ECOWAS’s regional integration Sorghum: 354 Rapport d’évaluation finale de la Agricultural Productivity Program APL mechanisms. Technologies Rice: 5500 campagne agricole 2015. (FY11); Niger - Competitiveness and included: (i) the improved Target: 25 percent increase by 2015 Source: ICR for the Second Growth Support (FY12); Regional Sahel bovine races of Azawak zebu Emergency Food Security Support Pastoralism Support Project (FY15); Agro and Goudali; (ii) improved Project, May 2014. Sylvo Pastoral Exports and Markets animal feeding infrastructure. Development Project AF (FY15); Climate Niger was able to import 60 tons Note: The Ministry report is Smart Agriculture Support Project of improved rice which reached referring to rainfed yield which (FY16). at least 10,000 producers during are very low compared (less than Trust Funds: 2012/2013. 66 Table 1: Summary of NIGER FY13-FY16 CPS Program Self-evaluation Cluster of outcomes and outcome Status and evaluation summary Lending and non-lending activities that Lessons and suggestions for the indicators contributed to the outcome new CPS 1.5/t/ha compared to irrigated Agriculture Risk Management and rice with higher yields) Inclusive Green Growth TA (FY14); Niger: Community Action Project for Climate Resilience (CAPC) (FY12); Disaster Risk Management and Urban Development Project (FY14); Active GEF FSP Projects - Agriculture GP (FY15); BIOCF T1W1 NIGER ACACIA PLANTATIONS PROJECT (FY15); AFR - Support to institutional strengthening of the irrigation (FY16). Other ASA: None CPS Outcome 1.4: Improved selected trade infrastructures NOT ACHIEVED 1.4.1 Setting up of dry port 1.4.1 Not achieved. Activity IDA authority. dropped due shifting priorities of Niger Basin Water Resources the authorities. Development and Sustainable Ecosystems (FY08); Local Urban Infrastructure Development Project 1.4.2 Inter-urban roads 1.4.2 Not achieved. Activity (FY08); NE Transport Sector Program rehabilitated in targeted areas. dropped due shifting priorities of Support Project AF (FY08); Transport Baseline: 0 the authorities. Sector Program SIM and AF (FY08); Target: 300 km by 2015 Competitiveness and Growth Support Project (FY12); Niger Basin Water 1.4.3 Rehabilitation of Maradi 1.4.3 Not achieved. Resources Development and Central Market Activity dropped due to shifting Sustainable Ecosystems APL2A (FY15). priorities of the authorities. Trust Funds Disaster Risk Management and Urban Development Project (FY14). 67 Table 1: Summary of NIGER FY13-FY16 CPS Program Self-evaluation Cluster of outcomes and outcome Status and evaluation summary Lending and non-lending activities that Lessons and suggestions for the indicators contributed to the outcome new CPS Other ASA: Electricity Access Expansion Project (FY16). PILLAR 2: REDUCING VULNERABILITY SATISFACTORY Related country development goals: Ensure food security; create the conditions for sustainable development; increase access to quality education as well as vocational and technical education; promote social development; extend access to drinking water and sanitation services; improve the supply and quality of health care services for the population. CPS outcome: 2.1. Increased access of poor and food insecure people to safety net programs MOSTLY ACHIEVED 2.1.1. Additional households with 2.1.1. Mostly achieved. A total of IDA: x Government leadership was access to the safety net programs 85,988 people had access to cash Niger Safety Net Project (FY11); Niger critical to the coordination of DP (Cash transfer and cash for work) transfer and cash for works Second Emergency Food Security efforts. Baseline: 0 programs by December2015. This Support Project (FY11); Niger Second x Working with established NGO Target: at least 100,000 additional increased to 137,636 households Emergency Food Security Support partners such as Veterinarians by 2015 by June 2016. Project (FY14); Regional Sahel Without Borders can improve Source: Niger Safety Net Project Pastoralism Support Project (FY15); operations when local capacities (FY11) ISR (June 2016). Adaptive Social Safety Nets Project are strained . (FY16). x The effectiveness and sustainability of the Bank model Trust Funds: of cereal banks was somewhat Gates Global Core Child Trust Fund undermined by the (FY10); Niger Early Childhood Nutrition Government’s parallel food crisis and Development Impact Evaluation response, which distributed (FY13); Adaptive Social Protection for subsidized grain rather than Resilience in Niger (FY15); Niger WASH locally purchased food. Poverty Diagnostic (FY16); Drivers of x Emergency operations are Poverty Reduction- Niger (FY16). most effective when they prioritize immediate restoration 68 Table 1: Summary of NIGER FY13-FY16 CPS Program Self-evaluation Cluster of outcomes and outcome Status and evaluation summary Lending and non-lending activities that Lessons and suggestions for the indicators contributed to the outcome new CPS Other ASA: of productive assets for food- Security Sector PER; TA on social insecure rural households, protection for resilience; LSMS ISA instead of trying to tackle the Niger; LSMS ISA Niger. deep causes of recurrent food crises (such as irrigation systems). CPS outcome: 2.2 Increased adoption of climate resilience policies and actions in targeted communes ACHIEVED 2.2.1. Additional agricultural areas 2.2.1. Achieved. 1407 hectares IDA: x Poor households struggling with with improved SLM. as of 31 Dec 2015. Community Action Program Phase 2 survival often rank productive Baseline: 0 Source: Niger Community Action (FY09); Community Action Program micro projects higher than Target: at least 2000 ha. Project for Climate Resilience, ISR Phase 3 (FY13); Niger Basin Water projects focusing on natural May 2016. Resources Program APL 2A (FY15); resource management. Regional Sahel Pastoralism Support x Encouraging engagement in Additionally, 887 ha area Project (FY15); Sahel Women's long-term natural resource cultivated with improved Empowerment and Demographics management, therefore, irrigation and drainage services as Project (FY15); Climate Smart requires concrete incentives of May 2014. Agriculture Support Project (FY16). such as food or cash for work. Source: Second Emergency Food Trust Funds: x Until institutional capacities Security Project, ICR May 2014. Agriculture risk Management and improve, public sector Inclusive Green Growth TA; NE environmental staff may also 2.2.2. Additional sylvo-pastoral 2.2.2. Achieved. A total of 7,584 Community Action Program GEF (SIP); require incentives, such as areas with improved SLM. hectares of sylvo-pastoral areas Niger: Community Action Project for provision for transport, training, Baseline: 0 benefited from the scaling up of Climate Resilience (CAPC) (FY12); Niger: and allowances. Target: at least 5000 ha. improved sustainable land and Community Based Disaster Risk water management practices. Reduction (GFDRR: ACP/E) (FY13); Source: Niger Community Action Disaster Risk Management and Urban Project for Climate Resilience, ISR Development Project (FY14); Multi- May 2016. Hazard Approach to Early Warning System with Focus on (FY15); Niger - PPCR M&R Targeted Funding (FY15); 69 Table 1: Summary of NIGER FY13-FY16 CPS Program Self-evaluation Cluster of outcomes and outcome Status and evaluation summary Lending and non-lending activities that Lessons and suggestions for the indicators contributed to the outcome new CPS 2.2.3. Achieved. Climate change Niger WASH Poverty Diagnostic (FY16); 2.2.3. Number of Local dimension and related adaption AFR - Support to institutional Development Plans incorporating measures were integrated in 38 strengthening of the irrigate (FY16). climatic resilience increased. community development plans. Baseline: 0 in 2012 Source: Niger Community Action Other ASA: Target: 25 by 2015. Project for Climate Resilience, ISR May 2016. CPS outcome 2.3: Improved education and employment skills for youth ACHIEVED 2.3.1. Primary completion rate 2.3.1. Achieved. The IDA: x Communities need to be increased. completion rate was 62.2 percent Niger Basic Education Project (FY10); properly prepared if they are to Baseline: 52 percent in 2012 by December 2015, and 53.5 for Skills Development for Growth Project participate effectively in school Target: 60 percent in 2015 girls (73.8 percent by June 2016, (FY13). construction. (including 53 percent for girls). and 64.6 for girls). x A community based approach to Source: Niger GPE Support to Trust Funds: construction should be adopted Quality Education Project (FY15) Niger Implementation Support of in difficult-to-reach areas in ISR (June 2016). Quality Basic Education Project (FY14); Niger. Niger - Global Partnership for Education 2.3.2. Youth who completed dual 2.3.2. Mostly Achieved. 2,730 (GPE) Support to Quality Education apprenticeship programs. had been enrolled by May 2015 of Project (FY14); Niger REACH for Quality Baseline: 0 in 2012 which 14 percent women. Education (FY16). Target: 800 in 2015 (including at Source: Skills Development for least 20 percent of women). Growth Project (FY13) ISR Other ASA: (December 2015). Youth employment and Jobs Study; Education and health service delivery TA. 70 Table 1: Summary of NIGER FY13-FY16 CPS Program Self-evaluation Cluster of outcomes and outcome Status and evaluation summary Lending and non-lending activities that Lessons and suggestions for the indicators contributed to the outcome new CPS CPS Outcome 2.4. Increased access to water, sanitation, health and population services ACHIEVED 2.4.1. Number of additional people 2.4.1. Achieved. 536,750 IDA: x In Niger, the multi-sectoral in selected urban areas provided additional people obtained access Multisector Demographic Project population agenda would be with access to improved water to improved water sources by (FY07); Local Urban Infrastructure best managed through a high- sources. 2015. Development SIL (FY08); HIV/AIDS level representative multi- Baseline: Missing Source: Urban Water and Support Project 2 (FY11); Urban Water sectoral body or through an Target: 509,000 by 2015. Sanitation Project (FY11) ISR (June and Sanitation Project (FY11); Niger entity such as a Prime Minister’s 2016). Disaster Risk Management and Urban office. Development Project (FY14); Population x Information, education and 2.4.2. Number of additional 2.4.2. Mostly achieved. 58,530 and Health Support project (FY15); Sahel behavior change campaigns (IEC students provided with access to additional students obtained Women's Empowerment and and BCC) may be more sanitation services in their schools. access to sanitation services in Demographics Project (FY15); Sahel successful in raising awareness Baseline: 0 school by 2015. Malaria and Neglected Tropical Diseases when linked to women’s Target: 60,000 by 2015. Source: Urban Water and (FY16). empowerment programs. Sanitation Project (FY11) ISR (June Empowerment programs raise 2016). Trust Funds: social status and create Niger WASH Poverty Diagnostic (FY16); opportunities that could 2.4.3. Number of sex workers seen 2.4.3. Achieved. 30,096 sex Water and Sanitation TAs: (DPSP24, strengthen the demonstration at health facilities after referral by workers were seen in health SURH25 and Monitoring systems). effect that empowered women NGO. facilities in 2015. have on their surroundings. Baseline: 0 Source: National AIDS Other ASA: x In Niger, Government decision Target: 5,000 by 2015. Coordination, Dec 31, 2015. Health Country Status Report; Sahel making is taking more time, Demographic Study particularly when there are 2.4.4. Number of sex workers 2.4.4. Achieved. 922 sex workers changes in high level policy treated for Sexual Transmitted were treated for STI by December makers. despite briefing notes Infection (STI) increased. 2015. 24 DPSP: Domestic Private Sector Participation in water and sanitation 25 SURSH: Scaling up Rural Sanitation and Hygiene 71 Table 1: Summary of NIGER FY13-FY16 CPS Program Self-evaluation Cluster of outcomes and outcome Status and evaluation summary Lending and non-lending activities that Lessons and suggestions for the indicators contributed to the outcome new CPS Baseline: 0 Source: HIV/AIDS Support Project and follow-up discussions – new Target: 500 by 2015. 2 (FY11) ISR (May 2016). strategies are needed. x Some domestic private operators are emerging in the sustainable management of rural water supply systems and . there is an opportunity to strengthen the capacity for large scale service provision. x IEC/BCC need to take into account local culture, needs, and issues, e.g. tailoring messages to Islamic sensibilities on raising the age of marriage for girls and boys, and on girls’ schooling. CROSS CUTTING: Mainstreaming gender and strengthening governance and capacity for MODERATELY SATISFACTORY public service delivery Related country development goals: Strengthen credibility and efficiency of public institutions. 3.1 Improved budget execution and 3.1 Partially achieved. IDA: x Procurement verification needs efficiency Niger Reform Management and TA to be more than a one-time 3.1.1 Budget execution ratio of own 3.1.1. Indicator not well defined. (FY10); Niger Reform Management and effort to be effective. funded expenditures TA (FY10); Niger EITI Post Compliance I (actual/budget) increased. (FY11); Growth Policy Reform Operation Baseline: 75 percent in 2011 II (FY12); Shared Growth Credit I (FY12); Target: 80 percent in 2015 Shared Growth Credit II (FY13); Shared Growth Credit III (FY14); National 3.1.1 (alternative indicator): 3.1.1 Not achieved. Strategy for the Development of Statistics (FY14); Public Sector Capacity 72 Table 1: Summary of NIGER FY13-FY16 CPS Program Self-evaluation Cluster of outcomes and outcome Status and evaluation summary Lending and non-lending activities that Lessons and suggestions for the indicators contributed to the outcome new CPS Total expenditure realized relative The 2016 PEFA report, Annex 1, and Performance for Service Delivery to initially approved budget. applies the 2012 PEFA Project (FY14); Sahel Women's Increase in rating of PEFA methodology to 2016 results to Empowerment and Demographics performance indicator P1. enable a comparison. Based on Project (FY15). Baseline: D this approach the current rating Target: na for Indicator P1 is D i.e. no Trust Funds: change. Niger Africa Extractive Industries Trust Source: PEFA (September 2016) Fund (FY05); NE PROCUREMENT REFORM (FY13). 3.1.2 Share of public procurement 3.1.2: Indicator not well defined. contracts awarded through Other ASA: competitive bidding maintained. Service Delivery Indicators TA; Support Baseline: above 75 percent to Cours des Comptes; Support to Target: maintain above 75 percent Procurement Office ARMP; PER annual updates; Gender assessment; Support to 3.1.2 (alternative indicator): 3.1.2. Achieved. The 2016 PEFA National Statistical Office TF for Public competitive bidding, optimal report, Annex 1, applies the 2012 Statistical Capacity Building III. use of resources, and public PEFA methodology to 2016 procurement thresholds. Increase results to enable a comparison. in rating of PEFA performance Based on this approach the indicator P19. current rating for Indicator P19 is Baseline: B+ still B+ i.e. the previous level has Target: na been maintained (in line with the ambition underlying the old indicator). Source: PEFA (September 2016) 3.2 Improved transparency of 3.2. Achieved. There were two sector budget allocations. budgetary documents available to the public in 2015. 73 Table 1: Summary of NIGER FY13-FY16 CPS Program Self-evaluation Cluster of outcomes and outcome Status and evaluation summary Lending and non-lending activities that Lessons and suggestions for the indicators contributed to the outcome new CPS Number of budgetary documents published based on the ‘Open Source: Open Budget Survey, Budget Initiative’ classification. International Budget Partnership. Baseline: 1 in 2011 Target: 2 in 2015 3.3. Achieved. Niger became EITI 3.3 Improved transparency in the compliant in 2011, following the mining and oil sector. publication of its first two EITI EITI reports published annually. Reports. Oil and gas company’s Baseline: 1 in 2009 payments are captured starting Target: annually. from the 3rd EITI Report. Niger’s 6th EITI Report is due on 31 December 2016 following which Niger has been targeted to undergo a second round of EITI Validation Source: EITI website (accessed October 18th, 2016). 3.4 Not achieved. Only seven out 3.4 No indicator provided in CPS to of 23 indicators include a gender measure mainstreaming gender. component. Alternative measure: Majority of CPS indicators reporting on gender dimension. 74 Table 2: Niger Planned and Delivered Operations FY13-FY16 CPS ($US millions) CPS PLANS (03/29/2013) STATUS Projected Committed FY Project IDA IDA 2013 Shared Growth Credit II 50.0 Actual 50.0 Community Action Program 3 40.0 IDA grant (see Table 2) Transport Sector Program SIM and AF 19.5 Actual 19.5 Education Enhancement and Skills Development 30.0 Skills Development for Growth Project 30.0 Subtotal (FY13): 139.5 99.5 2014 Shared Growth Credit III 50.0 Actual 70.0 Sup to Governance and Capacity for Service Delivery 20.5 Public Sector Capacity and Performance for Service 40.0 Delivery Land, Urban, Disaster management 100.0 Niger Disaster Risk Management and Urban Development 100.0 Project WARCIP Regional WA Com. Infrastructure 10.0 Dropped Additional actuals: National Strategy for the Development of Statistics 0.39 Subtotal: 180.5 210.39 2015 AF PRODEX 10.0 Niger Additional Financing to the Agro-Sylvo Pastoral 13.8 Exports and Market Development Project Public Investment Reform Support Credit I 80.0 Rescheduled to FY16 Population and Health Support 116.0 Actual 103.0 Sahel Women Empowerment and Demographic Dividend 53.6 Actual (regional) 53.6 Project Regional Sahel Pastoralism Support Project 45.0 Actual (regional) 45.0 Sahel Malaria and Neglected Tropical Diseases 37.0 Actual (regional) 37.0 Additional actuals: Additional Financing Niger Basin Water Resources 55.00 Program APL 2A (regional) Niger River Basin Management Project (regional) 7.5 Subtotal (FY15): 341.6 314.9 2016 Public Investment Reform Support Credit II 80.0 Dropped. na 75 Climate Smart Agriculture Program 111.0 Climate Smart Agriculture Support Program 111.0 Electricity Access Expansion Project 65.0 Actual 65.0 Additional actuals: Public Investment Reform Support Credit I 80.0 Adaptive Social Safety Nets Project 22.5 Niger Investment Climate Support Project 18.28 Subtotal (FY16): 256.0 296.78 Total 917.6 907.81 76 Table 3: Planned Non-lending Services and Actual Deliveries (FY13-FY16) CPS PLANS STATUS 2013 x Local Development (Kandadji) TA All delivered x GAC Strategy & Inst. Develop. TA x Policy Notes Series13 x PEMFAR Update x Advisory on Rural Finances x Social Protection Building Resilience TA x Gender Assessment I x Debt Management Reform Plan TA x EITI – Post Compliance TA x IFC –PPP/Niger Dry port TA x IFC – Access to Finances – AMSME x IFC- Pilot Program for Climate Resilience 2014 x Policy Notes Series All delivered unless stated otherwise. x Debt Management Reform Plan TA x Regional Railways Program TA (partially Additional Products (i.e. not initially delivered through PRACC) planned but delivered or ongoing) x Security Sector PER and Fiduciary Review ESW: x Country Status Report for Health x Country Statistical Assessment x Education and Health Service Delivery TA Management x Gender Assessment II x PEMFAR update and dialogue x Agriculture Risk Management and Inclusive TA: Green Growth TA x Social Protection for building resilience x Programmatic Study on FM/Procurement x Local Development (Kandadji) x Bottlenecks to Service Delivery x Advisory on Rural Finance x GAC Strategy and Institutional Development 2015 x Policy Notes Series All delivered unless stated otherwise. x PER Update x Sahel Drylands Flagship Report Additional Products (i.e. not initially x Sahel Demographic Study planned but delivered or ongoing) x Youth Employment and Jobs Study ESW: Niger Reform Plan TA: Strengthening Enabling Environment for Sanitation Strengthening WSS planning and monitoring Civil Society Organizations – Niger Extended Governance and Anti-Corruption Review 77 CPS PLANS STATUS 2016 ESW: All delivered or ongoing unless stated Policy Notes Series on Growth & Poverty otherwise. Financial Sector Development Strategy Public Expenditure Review -Annual updates Additional Products (i.e. not initially Policy Notes Series on Growth, Gender, planned but delivered or ongoing) Governance and Trade ESW: Youth Employment and Jobs Study Niger Safety Nets Project IE Health Country Status Report TA: Sahel Demographic study Strengthening the Domestic Private Sector Gender Assessment Niger Electricity Access Expansion TA: Financial Sector Strategy Implementation Debt Management Reform Plan Agriculture Risk Management and Inclusive Green Growth Energy Sector Social Protection for Resilience Service Delivery Indicators Education and Health Service Delivery 78 Annex 3: IDA18 Risk Mitigation Regime (RMR) Niger Implementation Note INTRODUCTION 1. The Republic of Niger has a long history of political instability, punctuated by military coups, rebel movement uprisings and terrorist incursions from neighboring countries. Niger’s economy is reliant on primary commodities and aid. It is also highly vulnerable to external shocks, including changes in raw material prices and extreme climatic events, which occur frequently. Forty-four percent of the population lives below the poverty line,26 although regional and ethnic inequalities are significant. In 2014, Niger ranked second to last out of 188 countries on the 2016 Human Development Index. The World Bank’s new Country Partnership Framework (CPF) for FY2018-22 therefore argues that “business as usual” is no longer an option for Niger. Its overarching goal is “to help safeguard and accelerate Niger’s economic and social development by tackling growth constraints, unsustainable population growth and other fundamental (and emerging) drivers of fragility”. The CPF will have a dual focus on empowering women and girls and addressing fragility, conflict and violence (FCV) risks. It will do so by supporting Niger’s response to existing crises and by directly addressing the drivers of conflict and fragility, such as youth disenfranchisement, grievances over the allocation of governmental resources, and competition for scarce natural resources. 2. This Implementation Note provides the background and rationale for granting Niger access to the IDA18 Risk Mitigation Regime (RMR). This regime is designed to provide eligible countries enhanced support to reduce risks of fragility, conflict and violence. It aims to provide a dedicated financing mechanism to incentivize investments in prevention, and support countries with additional financing of up to one-third of their indicative International Development Association (IDA)18 allocation. This Niger Implementation Note draws on a Risk and Resilience Assessment (RRA) prepared in July 2016 and updated in late 2017. This Note provides an analysis of the key drivers of fragility, conflict and violence facing Niger, as well as opportunities for risk mitigation, including government commitment, existing development responses, and institutional set-up. The Implementation Note defines a strategic approach and activities for the RMR, including the distribution of the RMR allocation in full alignment with the CPF. Lastly, the note describes proposed arrangements for monitoring progress, and partnership and coordination arrangements. I. Overview of Critical Fragility, Conflict and Violence Risks 3. Niger is exposed to multiple conflict and fragility risks, which stem from a combination of deep-rooted structural causes and short-term drivers.27 The most immediate vulnerability is related to the growing regional insecurity and violent extremist groups, which threaten the country’s stability and fuel pre-existing intercommunal tensions. Some of these security threats have increased considerably in recent years, resulting in conflict spill-overs and terrorist attacks on the border with Mali and in the Diffa region. As a result, the local economy in the affected regions has been shattered, depriving thousands of livelihood activities — and leading to a significant humanitarian crisis. Authorities lack the resources to respond to such challenges because of an already weak public service delivery system throughout the country, and partly as a result of severe governance shortcomings. In addition, the scarcity of natural resources increases the risks of livelihood insecurity, which is further intensified by the country’s strong demographic pressures and climate-related stresses, thereby increasing competition and conflict risks. In this context, the extractive sector is a significant contributor to revenues, exports and employment. Investments to further develop the sector, formalize artisanal mining activities, improve the management and oversight of the extractive sector 26 $1.90 a day, 2011 purchasing power parity (PPP), 2014. 27 This analysis is based on the Risk and Resilience Assessment (RRA) that was conducted in 2016. 79 and strengthen the extractive revenue management and distribution mechanisms could be an important vector to reducing tensions, particularly in mining areas. 4. There is increasing competition over natural resources (water, arable land and forests), which is intensified by the country’s strong demographic pressures and climate related stresses. Niger’s economy is dominated by agriculture, which represents 40 percent of the economy and, with livestock rearing, engages 80 percent of the workforce. Given Niger’s mostly arid and dry desert climate, arable land is relatively scarce. Further, with the highest population growth rate in the world, Niger’s population is set to increase by 70 percent by 203028. As a result, competition over access to arable land is fierce. Increasing land pressure, combined with inadequate yields and poor diversification of incomes, have led to persistent economic and food insecurity, as well as high malnutrition levels. Extensive land degradation, due to over- farming, desertification and droughts, further threatens food security. In addition, the expansion of agriculture into areas previously dedicated to pastoralism creates new conflict risks. Although land disputes among farmers are more frequent, the conflicts between farmers and herders, as well as among herders, are more likely to lead to violence. Demographic pressure also weakens the state’s ability to resist to shocks, especially climate-related shocks. 5. The marginalization of youth in the form of limited economic opportunities, difficulty accessing land and low education levels reinforces grievances and makes them more vulnerable to radicalization. The reservoir of unemployed youth continues to expand, especially in urban areas where the population’s growth rate is the highest, at 5 percent per year. As a result of the weak quality of the education system, youth remain largely unskilled and basic jobs in electricity, repairs, plumbing, or services are often left to better-educated foreigners. Insecurity has magnified their precarious economic and social situation. The state of emergency in Diffa, for example, has forced thousands of young Nigeriens to suspend their activities as taxi-moto drivers, pepper producers, or fishermen. Because of their economic and political marginalization, youth are therefore more vulnerable to mobilization and exploitation by radical groups or actors. 6. Governance challenges hamper the already weak delivery of public services and have resulted in widespread popular dissatisfaction. Niger’s administration is plagued by severe structural deficiencies that limit its effectiveness.29 Weak human resource management and low levels of competition in the recruitment process have resulted in poor civil-service performance. Low capacity combined with poor incentive and motivation mechanisms further limits governmental effectiveness, despite a wage-bill that represents a significant part of the budget. Public procurement remains opaque with the use of single source procurement methods being used at three times the rate of the West African Economic and Monetary Union (WAMEU) norms. Nascent public investment management reforms have yet to be completed. Public financial management (PFM) reforms have also been delayed, and budget transparency has stagnated. Also, domestic revenue mobilization has encountered significant challenges. Overall, this weakens the quality of service provision and the management and distribution of public resources. 28 Niger’s growth rate has reached 3.9 percent per year. Child mortality is slowly declining, whereas the fertility rate of 7.6 children per woman remains unchanged. Based on this trend and according to United Nations (UN) projections, Niger’s population will reach 34.5 million in 2030, and more than triple to 69 million by 2050, from 20 million to date. 29 According to the 2016 Public Expenditure and Financial Accountability (PEFA) report, PFM in Niger is deemed too weak to be satisfactory. There are structural problems of forecasting, budgeting, cash management and treasury, procurement, public investment management, state-owned enterprise oversight and management, as well as weak revenue mobilization. This undermines budgetary discipline, lowers budget credibility and weakens service delivery. 80 7. Offering quality and legitimate services to all Nigeriens is a major challenge, and institutions struggle to adapt to the growing demand for services resulting from the country’s rapid demographic growth. As a result, levels of education are very low (1.4 years on average)30, and malnutrition rates have reached 44 percent.31 Public services are also unevenly distributed, with most resources being spent in Niamey. Moreover, resource allocation for public service provision has been skewed toward large investment projects. For instance, the health sector is characterized by a high concentration of medical staff in Niamey (one-third of the country’s doctors and 50 percent of its medical staff), to the detriment of highly- populated areas such as Maradi, Tahoua and Zinder. These trends have led to popular dissatisfaction with state institutions, which is fuelling grievances and, in some cases, alternative forms of mobilization. The state’s absence is notably providing space for nonviolent radical organizations to gain influence, in particular over the growing youth population and marginalized communities. It is also influencing the political discourse and elite. In the education sector, in particular, many facilities are now run by religious organizations. A major risk is that these nonviolent Islamic organizations could become a recruiting ground for more violent extremist organizations. 8. Inadequate management of extractives and unequal redistribution of mining revenues have exacerbated tensions, especially in the mining areas. Extractive industries amount to 17 percent of state revenues.32 In a context of deconcentration and decentralization, mineral resource exploitation provides an opportunity to restore a territorial equilibrium between regions, especially those populated and rich in agriculture, and those which possess extensive mineral resources (or nothing) and remain poor. The current legal framework includes provisions for the retrocession of 15 percent of mineral income to the municipalities of the regions concerned with mineral exploitation. However, this 15 percent is not being regularly paid to the municipalities, which lack the capacities and tools to manage the additional funding. Efforts to deconcentrate central functions, including to the municipalities, have yet to be scaled-up. This situation creates frustrations among the population in the mining areas. Apart from the uranium located in the strategic and sensitive region of Agadez that has fuelled a rebellion in the past, revenues from Agadem oil could be subject to tension with the local communities. Another sensitive issue is the “gold rush” in Tchinbarakaten. After two years of artisanal mining, successful discoveries require deeper digging in Tchinbarakaten and Djado, which makes the case for a progressive formalization of gold mining in northern Niger. This raises some major concerns about the future of gold miners and the distribution of the mining revenues, especially in a context where the downturn in illegal migration flows has already reduced local revenues. Potential in sub-sectors, such as salt, could be further developed to the benefit of youth and women’s employment, as well as to stimulate local economic activity and generate revenues. 9. Growing regional insecurity and violent extremist groups threaten Niger’s stability and fuel pre-existing intercommunal tensions. Since 2011, regional instability has steadily increased, especially as a result of the spillover from the Libyan, Malian and Nigerian crises. Although the situation in Libya has had mitigated consequences for Niger, its evolution still represents a substantial risk for the country. Libya is the home of numerous powerful militias, some composed of Nigeriens. As such, it represents a potential safe haven for violent extremist groups. The Malian conflict also poses a serious threat and has significantly impacted on the security situation, as most terrorist attacks that struck Niger were launched from Malian territory.33 Finally, Boko Haram’s cross-border expansion from Nigeria into the south-eastern part of Niger represents one of the biggest security threats. By 2014, Boko Haram was recruiting hundreds of young 30 Niger Service Delivery Indicators – Education, World Bank, 2015. 31 Niger Systematic Country Diagnostic, World Bank, 2016. 32 Niger has been a producer of uranium since the first Republic. It has also produced coal since 1975, and gold since 2004. It has been an oil producer since 2011, with the advent of oil exploitation in Agadem. 33 Terrorist attacks such as those orchestrated by the MUJAO in May and June 2013 in Agadez and Niamey, and the more recent ones in 2017 in the Tillaberi region that involved terrorist groups based in Mali. 81 people in Niger’s Diffa region and fuelling tensions. The first attack in Niger took place in February 2015. Niger’s response has largely been security driven, joining the military efforts of the Mult inational Joint Task Force (MNJTF) created in 2015.34 It declared a state of emergency in the region and imposed commercial restrictions. 10. The humanitarian impact has been enormous; it has threatened the economy in Niger’s south-east and deprived thousands of Nigeriens — especially the youth — of their livelihood activities. In addition to fiscal impacts, regional spillovers of these neighboring conflicts have led to massive forced displacement.35 This has also had an important impact on trade networks, and has caused a rapid deterioration of the social and economic situation in border regions. In both cases, radical groups manipulate local intra- and intercommunal tensions to consolidate their position, capitalizing on local grievances over governance, lack of services and corruption. They create alliances with marginalized communities in particular, offering them protection against rival communities and helping them to gain control over natural resources. 11. Some of the security threats Niger faces increased considerably in 2017. Terrorist attacks perpetrated in northwestern Niger on the border with Mali have escalated since the end of 2016, prompting authorities to declare a state of emergency in seven departments of the regions of Tillaberi and Tahoua36 in March 2017. Insurgent actors include the Islamic State in the Greater Sahara37 and Jamaat Nosrat al-Islam wal-Muslimin, a group with al-Qaeda ties. For the first time in the region, four American forces were killed in a jihadist ambush in October 2017 alongside five Nigerien soldiers. This occurred during a mixed patrol near Tongo Tongo in the Tillabery region (approximately 120 km north of Niamey). That same month, at least 13 gendarmes were killed in Ayorou. The number of fatalities from attacks on civilians in the Tillabery and Tahoua regions could surpass those against security forces. However, they often go unreported. The number of attacks in the Diffa region have also increased. In December 2016, Boko Haram’s last enclave in the Sambisa forest in Nigeria was captured, and the group started to retreat, especially to the Lake Chad islands. Attacks in the Diffa region subsequently abated slightly, although they picked up again as of March 2017,38 targeting villages and Internally Displaced People (IDP) camps. During the same period, the Nigerien Government began establishing demobilization sites in Diffa for Boko Haram surrenders. It also drafted a special plan for the recovery of the region, expanding its policy beyond repressive actions. See map below for details of conflict hotspots. 34 The force’s mandate is to restore security in Boko Haram-affected areas. It will also help reestablish the state’s authority in liberated areas and assist with the return of IDPs and refugees. 35 Niger is host to 165,645 refugees, mostly Malian and Nigerian nationals, and approximately 153,000 internally displaced persons (UNHCR 2017). 36 Ouallam, Ayorou, Bankilare, Abala and Banibangou in Tillaberi and Tassara and Tilia in Tahoua. 37 ISGS, the Islamic State’s local branch led by Abou Walid Al Sahraoui. 38 As of August 2017, 48 Boko Haram attacks had been recorded in Diffa for 2017, compared with 76 attacks in 2016 and 82 attacks in 2015. 82 12. Notwithstanding this challenging environment, Niger has thus far managed to avoid internal instability and open conflict. The country boasts several resilience factors that help generate the institutional arrangements needed for various groups to coexist and manage violent contests. Some of these resilience factors include: (1) a political settlement in which the elites manage to solve their disputes in a regulated manner without state collapse; (2) a culture of relatively open dialogue supported by a shared narrative of national unity and social cohesion; (3) the dynamic role of civil society and the existence of structures of dialogue and conflict resolution; and (4) strong international support behind government efforts to establish a response that brings security, mediation and development in a relatively effective nexus for the prevention of violent conflict. II. Opportunities for Risk Mitigation 13. The Government of Niger has shown a strong commitment in addressing critical FCV risks; it articulated its approach in a series of key strategic documents. Niger’s development strategy, the second Economic and Social Development Plan (PDES) 2017-2021, operationalizes Niger’s Renaissance Program, launched by President Issoufou in 2011. The PDES aims at achieving high and inclusive growth in order to eradicate extreme poverty and significantly improve the living standards of all Nigeriens. The program recognizes that insecurity constitutes an obstacle to economic, social and cultural development. The following issues are considered key: improving the strategic framework of security governance; mitigating security threats; reducing community conflicts; and promoting development initiatives for peace and security (see annex 1). The Strategy for Sustainable Development and Inclusive Growth – Niger 2035, also adopted in 2017, proposes a long-term vision for a prosperous and peaceful country with a diversified and dynamic economy that can create jobs for its young population. The key priorities of the 2035 Vision include the overarching goal of bringing demographic pressures under control. Other priorities include: (i) restoration of security; (ii) extension of public functions; (iii) strengthening human capital; (iv) transformation of the productive sectors, particularly in rural areas; (v) further improving the business environment; and (v) pursuing a prudent macroeconomic policy. 83 14. Various development responses have been articulated specifically to address short-term security risks. The Government launched the Strategy for Development and Security in Sahel-Saharan Areas (SDS) 2012-201739 to address the root causes of instability in the region, and to implement local, national and regional mechanisms to prevent grievances. The strategy establishes a firm link between security and development. Specifically, it focuses on the socioeconomic development of regions as a means of restoring security and stabilization. This includes the development of road infrastructure, schools, health facilities, pastoral hydraulic works, as well as support to income-generating activities. Increasing state presence in these areas is intended to contribute to the rebuilding of the social contract with the population. The following key issues are identified: (i) strengthening the security of persons and property; (ii) facilitating people's access to economic opportunities; (iii) improving access to basic social services; (iv) strengthening local governance; and (v) ensuring the social and economic integration of forced returnees from Algeria, Côte d'Ivoire, Libya and Nigeria. Complementing the SDS strategy, 14 communal strategies for community security and social cohesion were validated in March 2015, targeting municipalities in the Agadez and Tahoua regions. 15. The Government of Niger has established national bodies dedicated to promoting peace and security, which act as key national counterparts for the World Bank and other partners. The High Authority for Peace Consolidation (HACP) is an institution attached to the Presidency of the Republic of Niger in charge of analysis, prevention and management of crises and conflicts. The institution administers a range of programs, from intercommunal dialogue, to the demobilization and reintegration of former combatants, as well as development projects aimed at promoting peace and cohesion.40 Currently, the HACP contributes to the implementation of the project REGARDS, financed by the Peace-Building Fund (PBF). The project is aimed at building trust and collaboration between the population, and the defense and security forces. The HACP is also developing an Action Plan for the recovery of the Diffa region. In 2016, the Government established the National Center for Strategic and Security Studies (CNESS). Its role is to carry out prospective analysis and studies on strategic and security issues, as reflected in its strategic orientation plan (2017-2019). 16. Niger is part of the Economic Community of West African States (ECOWAS ), which is actively involved in prevention of violent conflict and management of political crises, as illustrated by recent events in Burkina Faso and Gambia.41 It is also part of the recently launched G5 Sahel, a security and development partnership between 5 countries in the Sahel42 that aims to strengthen security across the region. The G5 is still being established. It includes a military alliance with a strong inter-country collaboration as well as a development pillar charged with the promotion of a number of joint development projects. On February 6, 2018, the G5 Sahel Head of States met in Niamey, when Niger took over the presidency of the G5’s Council of Ministers for the next 12 months. The G5 receives the support of international partners, notably from French and US troops based in the region. Additional funds pledged by the international community, including at a funding summit held in Brussels on February 23, 2018, will support the G5 Sahel’s joint military force. To date, it has brought the total pledged funding to €414m ($510m). To complement these regionally driven initiatives, Niger is also benefitting from the support of the Sahel Alliance. It was officially launched in July 2017 by the Governments of France and Germany, along with key partners such as the European Union (EU) (through the European Commission [EC]), the African Development Bank, the United Nations Development Programme (UNDP) and the World Bank Group. The initiative’s overarching objective is to contribute more effectively and broadly to stabilizing and reducing poverty in the G5 zone. This would be achieved through the creation of a common platform for the Sahel G5 countries 39 An updated Action Plan is currently being developed to cover the period 2018-2021. 40 The HACP receives funds from the EU, UN and other partners (for example, Denmark and Switzerland). It has also benefitted from targeted interventions under the Bank’s Regional Sahel Pastoralism Support Project (PRAPS). 41 UN-World Bank, Pathways for Peace, 2017. 42 The G5 Sahel countries include: Burkina Faso, Chad, Niger, Mali, and Mauritania. 84 and their European and international development partners. The aim is to promote increased and better- targeted interventions in the Sahel, including through more effective aid coordination and increased resources directed to security, short-term stabilization efforts, and longer-term development. These collective efforts are to revolve around 6 selected priority focus areas, including: youth employment; rural development; access to energy and climate change; decentralization and basic services; governance; and homeland security. 17. Various non-governmental actors are also involved in conflict prevention and resolution in Niger. Traditional authorities play a consistent and official role43 in Niger and are dedicated to addressing social fragilities. Although their authority is sometimes called into question in some regions, especially by young people, traditional chiefdoms can in certain cases mitigate conflicts and can be serve as a liaison for the HACP. Religious actors (notably the Imams) are often involved in mediation activities, which seek to maintain social peace in their neighborhoods. Several civil society organizations also play a key social role in helping address FCV risks by promoting social cohesion and external oversight. These organizations – for instance, the Network of Organizations for Transparency and Budgetary Analysis (ROTAB) – are mobilized around various issues such as democratic consolidation, social cohesion and accountability. 18. Numerous international partners are supporting Niger’s efforts to tackle its humanitarian, development and security challenges. Official development assistance (ODA) to Niger quadrupled between 2000 and 2015, reaching US$ 865 million. Between 2005 and 2015, ODA per capita averaged US$ 41, slightly less than the US$ 49 average in Sub-Saharan Africa over the same period. The ODA per capita stood at US$ 43 in 2015. Based on the 2014-2015 average, Niger’s major donors of gross ODA were the EU institutions (US$ 244.2 million), IDA (US$ 121.2 million), and the US (US$ 96.3 million). External security support to Niger has steadily increased since Al Qaeda in the Islamic Maghreb (AQIM) started to operate in the Sahel beginning in 2007-2008. From 2013, Niger’s military engagement against the presence of armed groups in the North of the country and against Boko Haram — as well as the country’s participation in the United Nations Multidimensional Integrated Stabilization Mission in Mali (MINUSMA) — have served to justify this increase in military support. Chad, the EU, France and the United States are the main partners helping Niger to tackle security challenges and terrorist threats, working through either operational cooperation or capacity building. 19. The World Bank is well placed to scale-up its contribution in a major way by mitigating the risk of fragility and violent conflict in Niger. To date, the World Bank has already engaged on several FCV-related issues.44 In addition, the World Bank can build on the following opportunities : (i) the Government’s active efforts to address risks of conflict and violence, including the establishment of a promising institutional framework; (ii) a comprehensive portfolio identified in the CPF, comprised of several operations that could be scaled up and adjusted to address a number of critical risks; and (iii) key donors and partners that are eager to engage more closely with the World Bank on the topic of violent conflict prevention (the EU, the UN and many bilateral partners). The World Bank strategy for mitigating the risks of violent conflict and fragility is based on: (i) the identification of its comparative advantage, notably its ability to address structural and institutional factors that can contribute to the prevention of violent conflict; (ii) an ability, because of its comprehensive engagement, to address a number of gaps left by other partners; (iii) a solid analytical knowledge, that has been bolstered by the Risk and Resilience 43 According to a Law adopted in March 1993, and modified in 2008, traditional chiefs must promote dialogue between communities and, if a conflict occurs, encourage mediation before submitting the case to authorities. 44 These include governance (notably issues relating to deconcentration, decentralization, transparency and accountability); improving the mining sector’s performance and social impact; addressing regional imbalances; improving livelihood and job opportunities, especially in areas of low density of population; supporting management of agro-pastoral resources; and addressing social sector weaknesses that influence the legitimacy of the state. 85 Assessment (RRA) and other relevant sector work, as well as recent regional and global analyses;45 and (iv) a strong engagement and policy dialogue with the government on economic and social reforms that can provide the platform to table important issues related to the mitigation of fragility and conflict risks. III. Proposed Activities: Strategic approach and activities for risk mitigation 20. The overall objective of the Bank’s RMR support in Niger is to mitigate the escalation of existing crises and contribute to the reduction of key fragility and conflict risks. The World Bank’s strategy for risk reduction will pursue a dual approach. First, it will address the short-term drivers of conflict and fragility that may contribute to an escalation of existing conflicts, with a focus on the most fragile and crises-affected regions (prevention of escalation). Second, it will tackle medium- to long-term drivers and structural factors, for example, through investments that can reduce risks of future conflict and strengthen institutions to manage risks and support social cohesion (sustaining peace). 21. A spatial approach that targets the regions and communities that are more fragile and at highest risk of violence, conflict and instability — including the border regions — will be pursued. This approach is geographically differentiated and takes into account the specificities of each region, in particular varying conflict dynamics and FCV-related risks (for example, intercommunal tensions, extremism, banditry and crime), as well as stresses faced by institutions, d the presence of different actors, and so on. This will require very close coordination between various Bank sector teams to avoid a set of fragmented and/or too thinly spread interventions. 22. To scale-up efforts to address the risks of violence and fragility, the Bank will adopt the following guiding principles: (i) Increase geographical targeting of critical interventions in at-risks regions; scale-up the ability to implement programs in insecure areas through third-party monitoring, enhanced monitoring and evaluation, and other similar mechanisms; (ii) Improve attention to the development-security-mediation nexus that the government is promoting in the design of selected programs; (iii) Participate more actively in platforms established by the government and donors on issues of security and prevention of violent conflict; scale-up policy dialogue around fragility issues; (iv) Strengthen the contribution in supporting the government in its institutional development efforts, especially in the area of early warning and monitoring of violent conflict risks; boost the platform for coordination between humanitarian and development actors and help with mechanisms of monitoring and impact assessments of interventions on fragility and violent conflict; (v) Scale-up conflict sensitivity in the Bank programs as a whole, with support provided to Task Teams Leaders (TTLs) to assess violent conflict risks and prevention benefits of the various project components; also, integrate monitoring of FCV impact in selected projects, and carry out selective operational/analytical work to help inform programming and policy dialogue on some critical issues (for example, on artisanal gold mining); and (vi) Building connections with programs in neighbouring countries and exploring opportunities for risk mitigation through regional projects, which is of importance given the regional and cross- border dimensions of fragility (for example, the Lake Chad Project, and programs in Northern Mali). 45 These include the World Development Report 2011 on Conflict, Security, and Development, analytical work on West Africa (Marc, Alexandre et al.: The Challenge of Stability and Security in West Africa, 2015), and the joint World Bank-UN 2018 Pathways for Peace study, as well as Independent Evaluation Group (IEG) evaluations of Bank programing in fragile contexts. 86 23. Some of this scaling-up will require important coordination efforts between various projects in the Bank portfolio, including specific support to TTLs and stronger partnerships on issues of security and mediation throughout the portfolio. The modalities of such efforts will not be cost neutral, and the Bank will identify resources to effectively implement these tasks through some reallocation of Bank Budget and Trust Funds. Priority FCV risk mitigation areas and activities The following three strategic priority areas have been identified to support the attenuation of FCV-related risks. 3.1. Reducing grievances through more equitable and transparent institutions and improved local governance and service delivery 24. Demographic pressure weakens the state’s ability to resist shocks and to provide quality basic services, especially in the already weak health, education and water sectors, where institutions struggle to adapt to the growing demand for services. Addressing these grievances through the reinforcement of a positive state presence throughout the territory is key to the mitigation of FCV risks. At the local level, a deconcentrated administration and decentralized authorities can play an important role in strengthening the confidence between the formal institutions and the population by consolidating security, resolving conflicts and ensuring inclusive delivery of basic services. Evidence suggests that beyond access to services, opportunities for citizen engagement and access to grievance redress mechanisms play a critical role in improving state legitimacy. 25. In a country so dependent on mining, mineral resources represent a unique opportunity to improve state revenues and to provide livelihoods in regions with low prospects for agricultural development. The current legal framework includes provisions for the retrocession of 15 percent of the mineral income to the municipalities of the region concerned with mineral exploitation. However, the fact that this legal framework has not been fully implemented creates grievances among the population in the mining areas. 26. The High Authority for Peace Consolidation (HACP) has proven its ability to play an effective role in anticipating and mitigating social, religious, and community tensions. It has developed an innovative mechanism for early warning, which is based on a network of local and community actors who report back to the HACP when there are signs of heightened tension in a particular region or community. The HACP supports local level mediation and closely coordinates its activities with the security sector, as well as with the various sectoral ministries, the local administration and traditional authorities. 27. Priorities for RMR financing include the following: - Reinforcing a positive State presence throughout the territory by strengthening institutions at the local level and improving service delivery. This will target both a deconcentrated administration and decentralized authorities. Support will aim to improve the public financial management of deconcentrated and decentralized authorities, and to strengthen the presence and quality of basic services at local level. This will include ensuring the effective transfer of human and financial resources to the local level, improving control of local government public financial management and fostering citizen oversight of local government action. A second axis of intervention will strengthen basic services, which are particularly under stress in view of the demographic growth rate. Indeed, they remain constrained by a high degree of centralization in Government. Regarding health and education services, the utmost priority will be to ensure that health centers and schools are receiving timely and significant financial resources, so as to be fully 87 functional and provide an adequate quality of care and learning to the population. Projects: Governance of Extractive Resources Local Development; Health Program-for-Results (PforR); Basic and Secondary Education; and a water and sanitation component under the Kadhiji Niger Basin Water Resource Program. - Fulfilling the economic potential of extractives with attention to the local impact on peace and development: This will include activities supporting the transparent management of extractives at the national and local levels, as well as the effective and transparent local redistribution of mining revenues. Support to artisanal-scale mining and the development of under-exploited sub-sectors, such as salt, will improve the livelihood of youth and women, as well as local authorities’ revenue mobilization. At the same time, it will support the management of large-scale mining to enhance the impact of extractives on local economies and revenue mobilization by the central government. Project: Governance of Extractive Resources Local Development. - Strengthening the architecture for conflict resolution and early warning/risk monitoring: This will provide support to strengthen local-level conflict prevention and monitoring mechanisms, strengthening a governance architecture for early warning and response, as well as support institutions on qualitative research/analysis on issues related to conflict. This will build on existing mechanisms, plans and capacities established by the CNESS, the HACP and line ministries. This component will also be connected to the monitoring arrangements described below. Project: Additional Financing (AF) to the Governance of Extractive Resources Local Development Project. 3.2. Increasing opportunities for youth and women in fragile regions and supporting the peaceful management and sharing of agro-pastoral resources. 28. Climate-change and weather-related events, water scarcity, environmental degradation and the extension of agriculture to new areas reinforce competition over access to scarce natural resources. Niger’s very rapid demographic growth in a context of limited economic opportunities creates significant additional pressures. In combination with increasing popular frustrations over limited access to services and economic opportunities, and growing insecurity and influence of extremist groups in border regions, fragility risks are increasing significantly. The socioeconomic marginalization of youth and women is reinforced by limited opportunities for participation in political life and decisions at both the local and national levels. 29. Building on the CPF’s objective of modernizing the rural economy, interventions under the RMR will target the most fragile and “at-risk” regions to break the vicious cycle of insecurity, loss of livelihoods, economic marginalization and violence. Furthermore, the Bank’s engagement on pastoralism issues opens avenues for strengthening mechanisms for peaceful resolution of tensions over natural resources. Priorities for RMR financing include: - Strengthening economic opportunities for youth and women, including in conflict-affected regions: Consultations with the government highlighted the urgency to create economic opportunities for youth – including in at-risk regions such as Diffa, Tahoua, Tillabery, and parts of Agadez. This will be achieved through a combination of investments to: improve agricultural outputs; increase cultivable areas; intensify rain-fed agriculture to enable alternative trade routes (namely the Diffa-Zinder-Nigeria corridor) for selected value chains; and facilitate economic diversification in off-farm activities and microenterprises. Given the low level of education, investments in business and agricultural skills can be seen as complementary measures. Improving 88 road access of farming communities to markets and essential services will also be critical.46 Further, the promotion of routine maintenance works by local communities can provide income and training opportunities for the poorest people, including women. Projects: Agriculture and Livestock Transformation Project; Skills Development for Growth, Youth Employment and Productive Inclusion; and Niger Rural Mobility and Connectivity Project. - Peaceful management and sharing of agro-pastoral resources and supporting transhumance: this would allow the expansion of Bank’s engagement to strengthen institutions and tools for peaceful management of natural resources, for example building on the experiences from the regional PRAPS (Regional Sahel Pastoralism Support Project). The PRAPS project is already supporting animal health programs, the drilling of boreholes & wells, the development of pastoral resources and the management of transhumance areas, including marketing facilities and conflict management support. These activities should be expanded in more areas, as they are central to address conflict dynamics in border regions, such as the Tillabery and Tahoua regions. Project: AF for Regional Pastoralism Support Project (if considered during the CPF period). 3.3. Strengthening crisis prevention, preparedness and response 30. Since the end of 2016, insecurity in Niger has taken on a new dimension because of the deteriorating situation near the Malian border and an increase in the number of attacks in the Diffa region linked to the presence of Boko Haram in the Lake Chad area. In this context, the Government has identified areas that are at risk of fragility and conflict. They require both urgent efforts of stabilization, as well as addressing long-term structural and institutional issues. These areas are Diffa, Tahoua, Tillabery, and parts of the Agadez region. 31. In light of the dire situation, including the need for sustainable responses to the current crises, the RMR will allow the Bank to scale up its support to vulnerable communities and build resilience against various future shocks, ranging from conflict to refugee flows and the disruption of production and economic activities in the most fragile and vulnerable regions. It will be important to take a development perspective to complement the short-term humanitarian focus of many external partners. Strong coordination across the humanitarian-development-security nexus will be instrumental. It will also ensure a focus on the nexus between security, mediation/conflict resolution and development efforts. Areas for Bank RMR financing include: - Increasing crisis preparedness through scalable safety nets: This will include a focus on communes that are experiencing, or are at heightened risks of, multiple shocks, including conflict/insecurity. Various approaches will be used (that is, cash transfers, cash for work, income generating activities, and so on) to build resilience and preparedness for future shocks. RMR resources will allow for the scaling-up of these activities in the at-risk regions mentioned above. Project: Social Safety Nets. - Supporting recovery and post-crisis support in affected communities: This could allow for a potential scale-up of recovery and immediate peacebuilding activities – including the development of economic activities – in conflict/crises-affected regions beyond communes that are hosting refugees. Such a program would include support to the local government’s capacities to provide basic services and to anticipate shocks. It could also serve as an integrator across the Bank’s sector 46 About 40 percent of communities in the agricultural and agro-pastoral zones are often isolated, and have limited access to agricultural inputs (fertilizers, improved seeds), government extension services, and opportunities to create market surpluses. 89 programs and help identify priority needs in targeted communities. Project: Forcibly-Displaced Support Project (with expansion of project scope). - Strengthening institutional capacities for crisis management and recovery planning: The engagement of multiple national and international actors (humanitarian, security, and development) requires adequate institutional arrangements for planning, coordination and information-sharing. The Bank could play an important role in further strengthening this architecture. Project: Forcibly- Displaced Support Project, with an additional component on institutional development and coordination, including the development/humanitarian nexus. Distribution of the RMR allocation: The distribution of the RMR allocation among sectors will be as follows: RMR AllocationAmount Program Component (US$ millions) 1. Reducing grievances through more equitable and transparent institutions and improved local governance and service delivery Governance of Extractive Resources for Local Development 30 Water and sanitation component under the Kandaji Niger Basin Water Resources Program (to be designed as a broader, local development program) 35 Health PforR 17 Basic and Secondary Education with Early Childhood Development (ECD) 25 2. Increasing opportunities for youth and women in fragile regions, and supporting the peaceful management and sharing of agro-pastoral resources Agriculture and Livestock Transformation Project 50 Additional Financing for the Regional Pastoralism Support Project 10 Rural Mobility and Connectivity Project 20 Skills Development for Growth Project 20 Youth Employment and Productive Inclusion Project 20 Sahel Regional Irrigation Initiative Project 8 3. Strengthening crisis prevention, preparedness and response Social Safety Nets Project 50 Forcibly-Displaced Support Project 15 TOTAL 300 Advisory Services and Analytics (ASA) 32. Among the operational analytical work that will inform the scaling-up of Bank efforts on FCV issues are the following: (i) sector RRA of artisanal gold mining to identify ways to address the risk of conflict in this critical area; (ii) an assessment of existing local-level, risk-monitoring and early-warning systems (EWS) to ensure better coordination and effectiveness of existing country systems — and especially to ensure that they are designed to directly support the Government in its design of appropriate policies and responses in the field; (iii) a perception study linked to the various ASA proposed in the CPF 90 on service delivery will assess how much service delivery improves trust in the state and the overall legitimacy of the state system (central and local government); (iv) an analysis linked to the regional pastoralism project to examine how livestock interventions through bore hole and pasture management can effectively allow for the management of local conflict. This will be done in particularly sensitive areas, notably on the Malian border. IV. Arrangements for monitoring progress 33. The implementation of the FCV Risk Mitigation Regime requires simple monitoring arrangements at the country level. A set of relevant indicators will be selected and used to monitor Niger’s progress on mitigating the identified risks and their evolution. As noted, this section includes two key components: (i) monitoring progress in the implementation of the Risk Mitigation Regime by the World Bank; and (ii) strengthening the Government’s own systems for monitoring FCV risks and conflict early-warning systems. a) World Bank monitoring of the implementation of the Risk Mitigation Regime 34. The Bank will monitor key trends in FCV-related risks at a strategic level, and integrate relevant FCV-specific indicators into new projects, notably those that will benefit from RMR financing. It will also periodically take stock of overall RMR implementation, including government commitment. In addition, it will undertake a qualitative assessment of the FCV landscape, including the effectiveness of the Bank’s RMR support in mitigating risks. 35. Contextual risk monitoring: A light-touch monitoring framework will be put into place to track the overall evolution of Niger’s risk landscape. It will measure results in risk-mitigation activities. A short list of indicators and related baselines will be determined in the 3 months following the adoption of the present Implementation Note.47 This will complement indicators that have been integrated in the CPF. Data collection will build as much as possible on existing systems and data collection efforts. The monitoring framework will comprise a mix of qualitative indicators, which will measure perceptions, as well as quantitative indicators, which will aim to capture objective changes. 36. Given the important role of perception surveys in monitoring key risks and trends in areas such as security, governance, service delivery and social cohesion, the Bank will exploit synergies with existing and planned surveys. For example, the proposed Communes Survey, which is currently under design by the Poverty Global Practice (GP), expected to be launched in early 2018, could provide an important source of information for a number of indicators. Data will also be drawn from other surveys conducted by the World Bank, such as the Service Delivery Indicators (SDI) survey, or those carried out by other development partners or academic institutions.48 37. Portfolio and project-level monitoring: The Country Management Unit (CMU) is planning to establish a geo-spatial platform to facilitate the monitoring of portfolio implementation. It will also seek to understand the spatial distribution of interventions, for example, in relation to Niger’s poverty/vulnerability profile. The geo-mapping of project activities will allow for the tracking of key project information, and it 47 As the Risk Monitoring Framework will draw on existing indicators, most baselines will be available. However, for some qualitative indicators, the identification of the baseline may require more time if a perception survey is needed. 48 In the security sector, the Center for Democratic Control of Armed Forces (DCAF) is currently working with the Research and Study Laboratory on Social Dynamics and Local Development (Laboratoire d'Études et de Recherche sur les Dynamiques Sociales et le Développement Local, LASDEL); and the Stockholm International Peace Research Institute (SIPRI) is launching a perception survey. Useful data can also be drawn from existing research networks, such as the Afrobarometer. 91 will also help identify opportunities for cross-sector coordination and collaboration. This will be particularly important for projects operating in crisis-affected or “at-risk” regions. The geo-mapping of project data will be combined with other readily available data layers, for example, data related to security incidents, citizen perceptions, and overall vulnerability. As such, it will be linked to the monitoring of contextual risks. Current initiatives by the United Nations Office for the Coordination of Humanitarian Affairs (OCHA), the United Nations High Commissioner for Refugees (UNHCR) and other UN agencies — such as the proposed humanitarian information center and the creation of a country-level Index for Risk Management (INFORM) to determine the risk profile of regions and provinces — will be an opportunity for the World Bank to leverage data and information from other partners as part of its own risk monitoring system. 38. Projects supported by the RMR will include indicators and their results frameworks to monitor the impact of their interventions on FCV issues. These will be defined during the preparation phase of the projects. Data will need to be sufficiently disaggregated by geographical area (for example, national level versus “at-risk” regions), gender, age, and social groups, when relevant. This data will help to capture differential dimensions of the situation, as local circumstances can vary within the same country, region, or community. In this context, it can help to ensure that the right groups are benefiting from the interventions addressing FCV risks. In fragile situations, data collection in insecure environments can be challenging. Therefore, the World Bank will seek to adopt innovative solutions and integrate flexible monitoring and evaluation (M&E) methods for current or planned projects. This could include the use of Iterative Beneficiary Monitoring (IBM), third party monitoring / enhanced monitoring and evaluation, participatory monitoring, and/or technologies (mobile phone surveys for instance) to collect real-time and localized data. 39. Periodic stock-taking and qualitative review: In order to assess the implementation of the RMR, the World Bank will produce a short narrative progress report for the IDA Mid-Term Review, as well as at the end of IDA18. These reports will include an assessment of government policies and actions in addressing FCV-related risks. 40. A new Risk and Resilience Assessment will be conducted toward the end of FY20 to provide an updated qualitative assessment of Niger’s risk landscape. This will include a review of the Bank’s engagement on risk mitigation and could provide baseline information for the IDA19 cycle. b) World Bank support to the Government of Niger in strengthening risk monitoring and early- warning systems and capabilities 41. The World Bank will support the Government’s own efforts to monitor FCV-related risks and provide assistance to a few targeted institutions. This support will be part of the envisaged operations that are financed by the RMR that will also build on the Government’s ongoing efforts in conflict early warning, as well as its capacity building with regard to monitoring and evaluation, and data collection. 49 42. The World Bank will also explore how to strengthen early- warning systems and will build on existing initiatives. Early-warning systems allow stakeholders to anticipate trends and better understand the rapidly changing dynamics of situations. If these systems are clearly linked to response mechanisms, they can be a useful tool for the management and prevention of conflicts, including the generation of local responses to avoid the escalation of violence. Therefore, the World Bank will work with actors involved in early-warning systems, such as the West Africa Network for Peacebuilding (WANEP) and the Peace- Building Fund (PBF), to identify windows of opportunities. The National Center for Strategic and Security 49 The Public Sector Capacity and Performance for Service Delivery Project is supporting the Government in developing a national monitoring and evaluation strategy, as well as in designing the National Integrated Monitoring and Evaluation System (NIMES). 92 Studies (CNESS), established in 2016 by Niger to conduct prospective analysis and studies on strategic and security issues, intends to create a National Observatory for Security Risks (ONaRiS-Karia) to prevent crises and conflicts in Niger. This initiative is promising and the World Bank will explore synergies and ways to support the CNESS. This support will include efforts to ensure that a strong link exists between the activities of all stakeholders (including CNESS, HACP, the Laboratory of Studies and Research on Social Dynamics and Local Development [LASDEL], and so on). 43. The Global Partnership for Social Accountability (GPSA) is working on a 12-month pilot project to be implemented in an initial group of four countries (including Guinea, Nepal, Niger, and Tajikistan). This project seeks to learn how collaborative state-citizen engagement can help to improve public service delivery, while also building the skills and capacities needed for conflict prevention and consensus- building. The project will support capacity development for effective and collaborative citizen engagement and promote the engagement of Civil Society Organizations (CSOs) and governments. Efforts to strengthen mechanisms for early-warning and risk-monitoring systems will take into account lessons from the GPSA pilot activities. V. Partnership and coordination arrangements 44. The coordination of ODA in Niger is currently framed around a donor committee, which leads the policy dialogue with the Government, especially on the PDES. In addition, several sector working groups seek to ensure better coordination between donors in different areas of cooperation. A UNDP-led group supports the coordination process. Coordination of RMR-funded programs will primarily be Niger-based and will be sought within this framework. 45. The Sahel Alliance, launched in Bamako in July 2017, gathers key partners of the Sahel region, including the African Development Bank (AfDB), the European Union, France, Germany, Italy, Spain, the United Kingdom, UNDP, and the World Bank. Their objective is to adopt an urgent and coordinated approach in six priority sectors in G5 Sahel states, including: youth employment; rural development and food security; energy and climate; governance; decentralization and access to basic services; and security. The Bank is the leader of the energy and climate sector. Depending on what arises out of the current exploratory phase, this platform could be used to advance a more integrated, cross-sectoral approach to mitigating FCV risks in Niger. 93 Annex 4: Statistical Capacity Niger has recently made significant efforts to improve its statistical system. Nevertheless, the National Institute for Statistics is still not equipped to meet increasing demands for quality data. The main constraint is the scarcity of human and financial resources and insufficient governance. A number of surveys have been implemented to monitor poverty. The four most recent household surveys were implemented in 2005, 2007, 2011, and 2014 of which only the last two (both supported by the World Bank), are comparable. Niger is also participating in the WAEMU regional survey program which is an IDA- funded regional initiative to harmonize welfare surveys across eight WAEMU countries. The GoN has acknowledged the need for quality data to enable effective decision-making and the formulation of economic and social policies. The development of the Sustainable Development and Inclusive Growth Strategy – Niger 2035; the 2017-2021 PDES; and other development programs such as Nigeriens Nourish Nigeriens (3N) Initiative have created an important demand for statistics to monitor progress. To meet this demand, the 2017-2021 National Strategy for the Development of Statistics (NSDS) aims to: • Meet the increasing demand for quality data through censuses and surveys and bespoke data- processing and analysis; • Improve public access to data and statistical products by using modern technologies; and • Improve coordination and foster synergies within the National Statistical System to build efficiency and credibility. 94 Annex 5: Regional and Agro-ecological Dimensions of Poverty Sahel (pastoral/ trans-humant Desert cattle herding) Agro-pastoral (millet, goat rearing, casual labor) Agricultural/ semi-intensive cultivation Annex 6: Map of Niger AGADEZ = share of 1% all poor people in Niger TAHOUA DIFFA 12% 3% ZINDER TILABERI 14% 30% 25% NIAMEY 1% MARADI DOSSO Hi ghest rates of poverty 15% 95 Annex 7: Distribution of Official Development Assistance in Niger (in percent) Social infrastructure Production 11 2 11 3 9 USA 61 15 EU 4 Germany Switzerland 17 Belgium Other France 5 Other 7 25 Switzerland 34 6 Economic infrastructure Multisector 1 1 2 USA 6 2 EU France EU Other Switzerland 3 22 3 Humanitarian assistance Program assistance 5 6 5 10 16 13 USA 12 Japan USA France 18 84 EU EU 101 35 Source: OECD Development Assistance Committee (2017) 96 Annex 8: Selected Indicators of World Bank Portfolio Performance and Management National Projects 97 Regional Projects 98 Annex 9: World Bank Group Portfolio (as at February 12, 2018) 99 Annex 10: Country Consultations The Consultations on the CPF 2018-2022 were held from October 30, 2017 to November 7, 2017 in Niamey, and in the regions of Agadez, Dosso, Tahoua and Zinder. They were co-chaired in Niamey by the Minister of Budget, acting as the interim Minister of Plan Governor of the World Bank, and the World Bank Resident Representative, while in the regions the Government was represented by Governors. These consultations brought together: (i) Parliament Finance Committee Members of the; ii) regional and local elected; (iii) traditional and religious leaders; (iv) representatives of the private sector; (v) bilateral and multilateral technical and financial partners; (vi) universities and research institutes; (vii) NGOs and development associations, women, youth and persons with disabilities; and (viii) the Government through the Ministries Permanent Secretaries General, as well as many senior public officials. The World Bank was represented by the participation more than a dozen staff based at the resident mission and a support mission from headquarters. The participants in the consultations unanimously appreciated the opportunity to become familiar with the World Bank's procedures and for the excellent occasion offered to them to express their expectations. They generally confirmed the choices made in the CPF under finalization. While stressing the need to promote behavioral change at all levels, they have in a concerted manner recognized the urgency of acting through a package of initiatives on the demographic issue as well as on the women development (fight against violence, strengthening of economic power, girls schooling) for more equity. More specifically, the main ideas expressed at the various meetings are as follows: The session with Members of Parliament and Secretaries General focused on: ƒ The promotion of communication by setting up an information platform and organizing open days; strengthening synergy through improved coordination and the use of the program approach; ƒ Considering HIV / AIDS in all interventions at least regarding the awareness component while acting effectively on the entire health sector; ƒ The interest of approaching the issue of education with a holistic approach integrating all segments of formal education (primary, secondary, higher and vocational), as well as literacy; ƒ The mobilization/development of irrigable potential as a key trigger to stimulate the agro- pastoral production systems modernization; ƒ The need of improving the knowledge of the Niger’s mining resource Niger by carrying out geophysical surveys, the development of infrastructures including energy, and considering the urban environment concerns. The session with the private sector and NGOs / associations revealed that: ƒ Support to the private sector should be better reflected in the CPF by focusing on: (i) the conditions for creating and developing SMEs for young people; (ii) the need for interest rate decrease, guarantees resource need and advisory support needs; • Increasing IFC involvement in Niger is considered as very relevant and highly beneficial for business development in Niger. As such, there is a need for supporting: i) act very quickly to turn good ideas into good projects; ii) structural reforms implementation for private sector development; • The modernization of Koranic schools would make it possible to take them into account in educational statistics and make them pillars for preserving social balance and lasting peace; 100 • The inclusion of persons with disabilities must be effective in all areas as well as the promotion of partnership between civil society and the Government in project monitoring. The session with technical and financial partners insisted on: • Promoting accountability at all levels (local elected representatives, parliamentarians, civil society, etc.) by involving political parties; • The exchange of information and know-how through the implementation of appropriate frameworks. The sessions in the regions highlighted the following points: • Formalization of the informal sector by easing the procedures for preparing essential documents, and access to social security benefits; • Intensified support for decentralization through: (i) capacity building; (ii) access to bank credit at premium rates; iii) support to the operationalization of Regional Development Plans (RDPs); iv) a greater involvement of regional councils in the implementation of projects funded by the bank, and v) if possible the setting up of a financial window dedicated to local development financing; • Strengthening support for: i) improving rural productivity and incomes by taking tailored actions based on the regions constraints and opportunities; ii) better interventions in the social sectors: education, health, access to water and sanitation; • Consider the regional specificities with respect to environment vulnerability, demographic issues; • Harmonization and streamlining of project and program procedures. At the end of the consultations, it emerges that the objective assigned to these participative meetings has been largely achieved as the team has been able to gather the expectations and stakeholders’ points of view on the CPF. 101