Document of The World Bank FOR OFFICIAL USE ONLY Report No: 72612-CM INTERNATIONAL DEVELOPMENT ASSOCIATION COUNTRY ASSISTANCE STRATEGY PROGRESS REPORT FOR THE REPUBLIC OF CAMEROON FOR THE PERIOD FY10 - FY13 October 2, 2012 Country Management Unit: AFCC1 Africa Region This document is being made publicly available prior to Board consideration. This does not imply a presumed outcome. This document may be updated following Board consideration and the updated document will be made publicly available in accordance with the Bank's policy on Access to Information. GOVERNMENT FISCAL YEAR January 1 - December 31 CURRENCY EQUIVALENTS As of September 17, 2012 Currency Unit: CFA Franc (CFAF) US$ 1.00 = 500.526 Regional Vice President: Makhtar Diop Country Director: Gregor Binkert Task Team Leader: Cia Sjetnan 11 ABBREVIATIONS AND ACRONYMS AAA: Analytical and Advisory Activities AFD: Agence Franqaise de Diveloppement/French Development Agency AfDB: African Development Bank ANIF: Financial Investigation Agency APL: Adaptable Program Lending BB: Bank budget BUCREP: Bureau Central des Recensement et des Etudes de Population CAA: Caisse Autonome d'Amortissement CAS: Country Assistance Strategy CASPR: Country Assistance Strategy Progress Report CEMAC: Communautd Economique et Montaire de I'Afrique Centrale/Monetary and Economic Community of Central Africa CFA: Communautd Financidre Africaine/African Financial Community CHOC: Changing Habits Opposing Corruption CONAC: National Anti-Corruption Commission CPIA: Country Policy and Institutional Assessment CPPR: Country Portfolio Performance Review DHS: Demographic Health Surveys DSCE: Document de Stratigie pour la Croissance et l'Emploi/Growth and Employment Strategy DFID: Department for International Development DPL: Development Policy Loan DPO: Development Policy Operation EITI: Extractive Industries Transparency Initiative ESW: Economic and Sector Work EU: European Union FLEGT: Forest Law Enforcement Governance and Trade Initiative GDLN: Global Development Learning Network GEF: Global Environment Facility GIZ: Deutsche Gesellschaft fir Internationale. Zusammenarbeit/German Cooperation GPF: Governance Partnership Facility Ha: Hectare HDI: Human Development Index HIPC: Highly Indebted Poor Countries HR: Human Resource IBRD: International Bank of Reconstruction and Development ICA: Investment Climate Assessment ICR: Implementation Completion Report IDA: International Development Association IFC: International Finance Corporation IMF: International Monetary Fund INS: Institut National de Statistiques/National Statistical Institute ISR: Implementation Status Report JICA: Japan International Cooperation Agency LPHP: Lom Pangar Hydropower Project MINFOF: Ministry of Forestry and Fauna MINEPAT: Ministry of Economy, Planning and Regional Development MDGs: Millennium Development Goals MDRI: Multilateral Debt Relief Initiative MDTF: Multi Donor Trust Fund MIGA: Multilateral Investment Guarantee Agency MoU: Memorandum of Understanding MTEF: Medium Term Expenditure Framework MW: Megawatt NGOs: Non-governmental organizations 111 OECD: Organization for Economic Co-operation and Development OHADA: Organisation pour l'Harmonisation du Droit des Affaires en Afrique / Organization for the Harmonization of Business Law in Africa PACA: Projet d'Amlioration de la Comptitivitd Agricole/Agricultural Competitiveness and Diversification Project PAISS: Projet d'Investissement enfaveur du Secteur de la Santd/Health Sector Support Investment Project PASE: Projet d'Appui au Systime Educatif/ Education Development Capacity Building Project PCFC: Projet de Comptitivitd des Filidres de croissance/Cameroon Competitive Value Chains Project PDUE: Urban and water development project PDSEN: Projet de Diveloppement du Secteur de l'Energie/Energy Sector Development Project PEFA: Public Expenditure and Financial Accountability Assessment PEMFAR: Public Expenditure Management & Financial Accountability Review PER: Public Expenditure Review PFM: Public Financial Management PNDP: Programme National de Ddveloppement Participatif/National Community Development Program PRECASEM: Projet de renforcement des Capacitis du Secteur Minier/Mineral Sector Institutional Capacity Building Project PRECESSE: Programme de Renforcement des Capacitis Environnementales et Sociales du Secteur Energie/Environmental & Social Capacity Building Project for the Energy Sector PSFE: Projet Sectoriel Foret-Environnement/Forestry and Environment Sector Project REDD: Reducing Emissions from Deforestation and Degradation SIL: Specific Investment Loan SWAP: Sector-Wide Approach TACD: Transparency and Accountability Capacity Building Project TF: Trust Fund USAID: United States Agency for International Development USD: Unites States Dollars WB: World Bank WWF: World Wildlife Fund for Nature ZEP: Zone d'Education PrioritairelPriority Education Zone iv Contents I. Introduction ..................... 1 II. Country Context ......................................................1 III. Progress towards CAS Outcomes ......................................... 3 A. Progress on Overall CAS Theme: Generate Shared Growth ................... 4 B. Progress on CAS Foundation: Governance ......................... ..... 4 C. CAS Strategic Theme One: Increasing Cameroon's Competitiveness..... ......... 6 D. CAS Strategic Theme 2: Improving Service Delivery ........................ 8 E. Gender ........................................................ 9 IV. Lessons Learned in Implementation and Adjustments to the CAS ................... 9 A. Generate shared growth .................11.... .................11 B. Governance .................................................... 11 C. Increasing Competitiveness.................................... ...... 12 D. Improving Service Delivery.......................................... 13 IV. Risks ............................................................ 14 Tables Table 1: Indicative lending and analytical work during the remainder of the CAS period..... 14 Boxes Box 1: Poverty related analytical work in Cameroon ..............4.... ............4 Annexes Annex 1: Progress on Results Matrix for the Cameroon CAS ......... ............... 16 Annex 2: Analysis of Progress towards CAS Outcomes ...................... 26 Annex 3: Revised CAS Outcomes, Indicators, and Milestones................ ........ 34 Annex 4: Planned vs Actual Lending and AAA Program and Pipeline ......... ................... 43 v  I. Introduction 1. This Country Assistance Strategy Progress Report (CAS PR) reviews and assesses the relevance of the current World Bank CAS for Cameroon and proposes readjustments to Bank engagement in the country. It provides a brief stock-taking of progress towards achievement of CAS objectives and proposes changes to the CAS results framework. 2. As outlined in the current CAS, World Bank engagement in Cameroon aims to help stimulate and generate inclusive growth by improving the competitiveness of the Cameroonian economy. The strategy has two pillars: (i) increasing Cameroon's competitiveness; and (ii) improving service delivery; and a cross-cutting governance theme and is consistent with the Bank's Africa Strategy. Progress to date towards achieving the CAS outcomes had been steady, even though a number of outcomes have not yet been achieved. In some cases there are also noteworthy delays in implementation, which may hamper the achievement of certain outcomes by the end of the CAS period. Delivery of lending and analytical work has been strong. II. Country Context 3. Cameroon is a lower middle income country, but poverty levels are high and social indicators low. Cameroon has an estimated population of 19.96 million (2010), and an average per capita GDP of approximately US$1,160 (2010)1. The annual population growth rate is 2.7, with 41 percent of the population under 15 years old. The overall poverty headcount ratio is 40 percent (2007)2, with large socioeconomic and regional variations. 4. The incumbent President is only the second Head of State since independence in 1960 and was re-elected for a sixth seven-year term in October 2011. Cameroon is characterized by a dominant party-system, where the political opposition is highly fragmented (more than 250 political parties). The ruling party, Cameroon People's Democratic Movement (CPDM) is strong - it currently occupies 140 of the National Assembly's 180 seats (17 seats vacant). Legislative and local elections, originally to be held by September 2012, have been postponed by a year to allow for the introduction of biometrics in the voter lists-a change that has been lobbied for by donors and partners and which is expected to significantly improve the voting process. The National Assembly adopted a single electoral code in April 2012, which combines all existing legislation in one document and clarifies the mandates of the various institutions involved. A December 2011 Cabinet reshuffle brought in a more technical economic team at the highest level of Government. 5. Cameroon has recovered from the adverse effects of the global crisis and has so far not been affected by the sovereign debt crisis. After declining in 2009, due to the drop in commodity prices and volumes, Cameroon's exports rebounded in 2010. The recovery of non-oil sectors contributed to an increase in real GDP growth, to 2.9 percent in 2010, from two percent in 2009. This recovery gained momentum in 2011, with an estimated real GDP growth of 4.2 percent, driven by strong activities in agriculture, construction, and telecommunications. The Gross National Income per capita (GNI) in 2009 is US$1,136. 2 Percent of the country's population living below the poverty threshold of US$1.25 per day 1 Economic growth is expected to increase moderately under current policies, with the IMF projecting real GDP growth to increase gradually to 5.5 percent in 2016. Average inflation was 2.9 percent in 2011, an increase compared to 1.3 percent in 2010. This increase primarily reflects a rise in food prices. 6. Cameroon's debt situation has improved in the last five years. The public debt-to- GDP ratio declined from 52 percent in 2005 to 10 percent in 2008, due to HIPC and MDRI relief in 2006 and prudent borrowing policies since then. As a result, Cameroon has recently been able to sign several non-concessional loans for high priority national investment projects. The Government of Cameroon (GOC) is discussing with the Bank its ceiling for non-concessional borrowing for the future. To continue assuring a sound and manageable debt ratio, the GOC will need to adopt a cautious approach to non-concessional borrowing and strengthen its debt management policy. 7. Despite significant natural resources, Cameroon's economic growth is lagging behind its potential and has not had a lasting impact on poverty. Cameroon is endowed with significant natural resources, including oil, high value timber species, and agricultural products (coffee, cotton, cocoa). Poor infrastructure, an unfavorable business environment, and weak governance hamper economic activity and make it difficult to reach the growth rates needed to reduce poverty in a sustainable manner. Poverty levels are around 40 percent, with significant regional disparities (some departments with poverty levels above 70 percent, whereas Douala and Yaound6, for instance, have poverty levels of between 0 and 10 percent3). Cameroon is not likely to meet any of the Millennium Development Goals (MDGs). Ranked 150th out of the 187 countries tracked in the 2011 Human Development Index (HDI), Cameroon is one of a group of countries whose HDI scores have deteriorated in the past two decades. Access to sanitation is low and access to sewerage virtually inexistent at 1.8 percent. With a few exceptions, such as immunization, most key indicators of maternal and child health and nutrition have improved only slightly-or stagnated-since 1990. While access to primary education is close to universal, there are large regional and social disparities. 8. Corruption and vested interests are prevalent at all levels of society and hamper implementation of reforms and delivery of services. Cameroon ranks 134 out of 183 countries in Transparency International's 2011 Corruption Perception Index. The fight against corruption has been stepped up in the past year by holding former ministers and high public officials accountable through the administrative and criminal justice systems. While the press in Cameroon is relatively free, Cameroon ranks poorly on indicators linked to voice and accountability, control of corruption and rule of law (World Governance Indicators). Citizens' access to information is also limited. Cameroon's CPIA score for 2011 was 3.2, compared to an average of 3.3 among all IDA borrowers. Sub-ratings on "transparency, accountability, and corruption in the public sector" and "property rights and rule-based governance" were all at 2.5-compared to an average of 2.9 among IDA borrowers. Cameroon is a candidate country for the Extractive Industries Transparency Initiative (EITI), but has not yet achieved validation. Adherence to the Kimberley process was, however, achieved in August 2012. Draft poverty map, Institut National de la Statistique, June, 2012 2 9. National development priorities are expressed in the Government's long-term planning document, "Vision 2035", which envisions Cameroon as an "emerging nation" by 2035. The 2009 Growth and Employment Strategy ("Document de Strat6gie pour la Croissance et l'Emploi", DSCE - equivalent to a Poverty Reduction Strategy), covering the 2009 - 2019 period is anchored in the Vision 2035 and foresees significant investments in infrastructure, productivity increases in agriculture and livestock farming, mining, key value chains, and in the business climate. Further, the DSCE looks to strengthen human development and develop more robust formal sector employment. It also aims to strengthen governance, outlining specific initiatives related to corruption, public procurement, business climate, and civic participation. The DSCE will be subject to a mid-term review and possible adjustments in 2014. 10. There seems to be renewed focus on the part of Government to create more inclusive economic growth. Inclusive growth is a national development objective and expressed in the DSCE, aiming to bring poverty down from 40 to 28 percent in 2020. Following the Arab Spring, the Government seems increasingly aware of the need to deliver more tangible development results. In this regard, large infrastructure projects and agriculture are national priority areas over the next few years. Both areas are expected to significantly contribute to economic growth and employment creation. 11. The main development challenge in Cameroon over the next decade - and critical to becoming an emerging nation - will be to accelerate growth and assure growth is translated - in a sustainable manner - into poverty reduction. Over the next few years, it will be critical for Cameroon to implement some of the major investment projects that have been planned over the last decade and to assure that these investments, together with resources and revenues, benefit the population. The country will also need to make substantial headway on improving social indicators. Employment creation and the creation of a workforce that can respond to the country's employment requirements also remain an important challenge. Improvements on the governance front will be critical to achieve these goals. III. Progress towards CAS Outcomes 12. The current CAS has nine CAS outcomes, divided between the cross-cutting governance theme and the two strategic themes of increasing competitiveness and improving service delivery. A full analysis of progress towards achieving the stated CAS outcomes, indicators, and milestones can be found in Annexes 1 and 2. Below is an overview of progress made in the areas targeted through Bank engagement. 13. Delivery of lending and analytical work during the CAS period is strong. On the lending side, the planned Competitive Value Chains and Sanitation projects were delivered as planned in FY10 and FY11 respectively. The Lom Pangar Hydropower, Kribi Gas to Power, and a Mining sector TA project were all approved in FY12. Regarding regional projects, the CEMAC transport and transit facilitation project benefited from additional financing on two occasions (from regional and national IDA). On the analytical side, a fiscal decentralization, a safety nets assessment, a Sanaga river basin management report, and a regional fisheries study have been delivered. Annex 3 provides detailed information of deliverables during the CAS period. 3 A. Progress on Overall CAS Theme: Generate Shared Growth 14. To achieve its vision of becoming an emerging economy by 2035, growth needs to accelerate to seven to nine percent and be more inclusive. Current Government focus is on large-scale infrastructure investments, such as Lom Pangar and Kribi deep-sea port and commercial zone. Significant and further efforts are needed, however, to translate the benefits of such investments, together with national resources and revenues, into sustainable benefits for the wider population - to include improved quality and access to services. The on-going decentralization process is one current measure to improve service delivery, supported by the Bank through extensive analytical work on fiscal decentralization, as well as through service delivery and the strengthening of local capacity and decision making process at local levels through the on-going local and urban development projects (PDUE and PNDP). However, Government remains highly centralized and the co-existence within the same geographical area of both "deconcentrated" ministerial services and "decentralized" local governments generates ambiguity of authority. While budget execution is improving, further alignment between development priorities/needs and spending, including regional allocations, is needed. B. Progress on CAS Foundation: Governance 15. Demand for better governance is being Box 1: Poverty related analytical work in fostered. The Bank has, over the CAS period, Cameroon paid more attention to ways in which to identify A third household study was undertaken, by and mobilize alternative forces in the system that the BUCREP, in 2005. Based on this study, could offer a counter-weight to the existing vested the National Institute of Statistics (INS) is interests and question the status quo. Through a currently in the process offinalizing a poverty GPF-funded governance program, round-tables on mapping. In 2008, the INSpublished a study governance in the education, mining, and forestry on living conditions andpoverty in Cameroon sectors have been held. A Development in 2007. The INS also published, in 2010, a Marketplace initiative has encouraged grass-root study on cash transfers and other subsidies organizations across the country to come up with allocated to households by the Statefrom innovative projects to improve governance in 2001 to 200b education, health, and forestry, and the best ideas opertynrea ted t or er the have received funding. The project has also Cfperio d nli o or and financed a number of political economy studies- vulnerability of Cameroonian households in telecoms, forestry, health, education, and (2010), a report on fiscal policyfor growth mining-which have informed the Bank regarding and development in Cameroon (2010), a its operations and work in the respective sectors, feasibility study on safety nets in Cameroon and also served as the basis for dialogue. (2011), a governance and integrity perception study (INS/ World Bank, 2011), and a study on 16. Similarly, a more evidence-based public the effectiveness of safety nets in Cameroon debate on governance issues is being promoted. (2010). The right to access to information legally exists in Cameroon since 1990, but actual access to information is still limited. Some laws and decrees are published on ministry websites and as per the CAS, the Finance Law and budget execution reports have been regularly published on Government websites as well as in the press. In spite of this, civil society organizations claim they meet strong resistance from public officials when 4 requesting information. As a response, a bi-annual publication - the Cameroon Economic Update - has been launched to provide information on recent economic developments and feed evidence-based discussions on critical issues such as the lack of competition in the telecom sector, the cost and benefits of fuel subsidies, or the impediments to greater trade facilitation. This publication has been accompanied by a more active outreach effort towards the media, civil society, and academia. 17. Budget preparation and execution are generally improving, with, as envisaged under the CAS, the preparation of financial statements and further debate by the legislature around the budget, and expenditure processes mapped and proposals for streamlining prepared in 2011. The GOC is also introducing program budgeting in the 2013 budget year. However, limited progress has been made on legislature scrutiny of the annual budget law. Policies and priorities are broadly reflected in the budget and elements of forward budget planning are in place. A PEFA was undertaken in 2007, but the results have not been made public. 18. Civil society is increasingly involved in budget tracking and dialogue with local authorities is stronger. Since 2009, authorities have strengthened project preparation and execution, mobilizing local monitoring committees where civil society participates. This innovative approach has had very positive effect, with the execution rate of the investment budget increasing from 50 percent in 2008 to about 85 percent in 2011. Civil society has increasingly made use of these committees to examine and report on misuse of public funds. MINEPAT is also more receptive to civil society reports and is in the process of improving the participative tracking system linked to the investment budget. In 2010, the Adamawa and North- West Regions of Cameroon initiated a budget transparency pilot initiative aimed at fostering budget transparency in education and health at the regional level. This initiative has led to increased access to information and budget awareness particularly in the North-West region, in addition to strengthened dialogue between the Governor and local civil society. Parents are also increasingly holding local schools and health units accountable. The pilot continues in 2012-13. An increasing number of local councils have also, over the last two years, piloted participative budgeting methods, and recently SMSs have been used to obtain the citizen votes and as part of local council outreach. 19. On the revenue side, a pilot initiative introducing performance-based contracts in the customs department has led to impressive results and change, including the establishment of an internal meritocracy. Individual performance contracts for custom officers have been introduced - making Cameroon the first country in the world to adopt such an approach. These performance contracts use objective and quantifiable data from an automated computer system. The objectives of customs administration (facilitation and enforcement) are complemented by specific objectives, which aim at abolishing bad practices. The results are encouraging: higher revenue collection, shorter clearance times, and lower corruption (measured through systematic firm surveys of a representative sample of customs brokers undertaken before, during, and after the experimentation). The appointment of inspectors is also increasingly based on the results of the performance contracts, and therefore on data, where the best ones are being promoted and the lower performers sent to smaller offices. 5 20. Progress is also being observed in the delivery of critical services. In the health sector, corruption in health facilities has been significantly reduced and the quality of services improved through the introduction of results-based financing. A trust funded pilot initiative, the involved health facilities are granted financial autonomy, which, together with the introduction of a results-based approach, has changed the way in which the facilities work, allowing them to invest in equipment and buildings, and to establish a performance-based bonus system for staff. 21. Transparency in extractive industries: Cameroon is still working towards EITI validation, with August 2013 as the final deadline. The GOC formally adopted the EITI process in 2005. Since then, an Action Plan has been adopted and three reconciliation reports, for the years 2001-2004, 2005, and 2006-8, have been submitted to the international EITI Secretariat. The 2009 and 2010 reconciliation reports are currently under preparation - to be published by the end of 2012 - and will include the mining sector (originally only oil revenues and volume were included in the reports). If Cameroon does not achieve compliant status in August 2013, the country will be de-listed. 22. In spite of progress, the legal framework is still weak and corruption seen as an impediment to development. In recent years, progress has been registered on the governance front, as illustrated by an improvement, for instance, in the TI "International Perceptions Index" from 2.2 in 2010 to 2.5 in 2011. However, institutional mechanisms aimed at improving governance and curbing corruption are still weak. This is evidenced, for instance, by the failure to adopt an Anti-Corruption Law (in spite of pressure from partners and donors to do so), and delays in enacting the application decrees of a 2006 Asset Disclosure Law (thereby precluding implementation). In spite of this, a growing number of politicians and civil servants are being held accountable by the justice system for corruption and embezzlement of public funds. The National Agency for Financial Investigation is now fully operational, and the immediate effect has been an increase of about three percent in the number of suspicious transactions reports and a 14 percent increase in the number of cases referred to the competent prosecutors as compared to 2010. Furthermore, a number of highly visible corruption cases have been brought to the courts, including that of a former Minister of Territorial Administration and a former Prime Minister. The results from a 2011 study on perceptions of governance and integrity in Cameroon, however, show that corruption is identified by 87 percent of the population as a major problem for Cameroon's development. Furthermore, Cameroonians perceive that both large- and small- scale corruption is increasing. C. CAS Strategic Theme One: Increasing Cameroon's Competitiveness 23. Recent significant investments have been undertaken in the energy sector, with financing secured for and construction started at the Lom Pangar Hydropower Project, Kribi Gas to Power Project, Memve'ele, and Dibamba over the last 12 months. Current installed generation capacity-less than 1,000MW-will increase by over 50 percent in the coming four years, and once finalized, these investments will result in a significant increase in the availability of lower cost electricity. These investments are important as the lack of reliable and low cost energy has been identified as one of the main restraints to increasing Cameroon's competitiveness and 4 Governance and integrity perception study based on the 2007 household study (ECAM3), INS, World Bank, May 2011. 6 obstacles to doing business. Limited progress has been made in terms of assuring further access to electricity in rural areas, even though a Rural Energy Fund was established in 2009. 24. High level of investments in the transport sector led to significant improvements in road conditions on major transit corridors. The GOC, with the assistance of a number of international partners (IDA5, AfDB, EU, France, Spain, Japan, and Islamic Development Bank) has focused investments in the transport sector on the two transit corridors: Douala - N'Djamena and Douala - Bangui. As a result, road conditions have improved considerably on the two corridors between 2007 and 2012: the length of roads in good condition between Douala and N'Djamena has increased from 40 to 65 percent and on the Douala - Bangui corridor from 53 to 67 percent. On rehabilitated sections of these corridors, the travel time has more than halved and a significant increase in traffic and economic development has been observed. In spite of this progress, the cost of transporting a 40-foot container between Douala and Bangui is currently about US$0.21 per ton per km-among the highest in Sub-Saharan Africa. As such, further reforms are needed to reduce transport prices charged to customers, improve customs procedures and customs data exchanges between Cameroon and its neighboring countries, computerize external trade procedures, and increase competition and transparency in the trucking industry. 25. The areas classified as permanent forests and protected areas in Cameroon have increased and there is an increase in the area of natural forests and plantations under sustainable forest management. Over the past two decades, the Ministry of Forest and Fauna (MINFOF) has significantly expanded the total area classified as permanent forest, reaching 8.72 million hectares in 2011. A further 3.12 million hectares have been declared as permanent forest, but are pending classification and an additional 1.5 million hectares are planned to become permanent forest. Also part of this permanent forest estate, the protected area network, has been expanded to protect some of Cameroon's rich biodiversity, and now covers over 3.7 million hectares accounting for around eight percent of the country's land area. In 2011, the area of natural forests and plantations under sustainable forest management in Cameroon reached 4.7 million hectares, one year ahead of and above the CAS target of 4.5 million hectares in 2012. Progress has been made on the number of forest management units under forest management plans-reaching 90 in December 2011 and thereby exceeding the CAS target of 75. As these examples illustrate, progress can be registered in the area of forestry and protected areas. Nevertheless, firm, or final outcomes to improve transparency, equity and sustainability in the use and management of natural resources are so far lacking. Often described and referred to as a sector with deep governance challenges, efforts are being made to "clean up" the sector. Through a 1994 Forestry Law, an independent observer was introduced in the allocation of forestry titles. In 2002, the GOC, with the support of development partners, also introduced an independent observer in the monitoring of logging activities, leading to a reduction in illegal logging activities in Allocated Forest Management Units. Nevertheless, the forestry sector continues to face illegal activities particularly in the non-permanent domain, where the allocation of the small titles remains less transparent. It is also worth noting the increased role of local and international NGOs in the natural resource dialogue, as well as the support of international partners, including the EU, who supports, for instance, the Forest Law Enforcement Governance and Trade (FLEGT) initiative. 5 Originally a USD 147 million regional operation, the Bank's CEMAC Transport Transit Facilitation Project in Cameroon has benefited from additional financing of USD 150 million in 2009 and USD 112 million in 2011 (national IDA). 7 D. CAS Strategic Theme 2: Improving Service Delivery 26. Access to good quality, reliable, and affordable social services remains low. With poverty levels around 40 percent and only moderate progress towards achieving some of the MDGs, Cameroon is faced with significant challenges to provide the population with reliable, good quality, and affordable services. While the DSCE acknowledges the importance of investing in human development, resource allocations and the importance accorded to proper service delivery are not adequate to address current insufficiencies and regional disparities. 27. Access to primary education in Cameroon is close to universal but resource distribution and education outcomes are unequal. Completion rates in primary education have increased, to reach an estimated 74 percent for the 2010/2011 school-year, thereby exceeding the CAS target of 70 percent. In spite of these successes, access to quality basic and post-basic education remains a significant challenge, especially for the poorest and most vulnerable. Children from the poorest households are, for instance, 40 times less likely to attend upper secondary school (lyc6e) than children from the richest households. Furthermore, there is a large bias in favor of the most developed regions regarding resource distribution and a high degree of randomness (48 percent) in teacher allocation6. 28. Little progress on key indicators for maternal and child health. Under-five mortality in Cameroon reached 148 per 1000 live births in 2004 - up from 144 in 1991. Since then, there has, however, been a decrease in the under-five mortality rate: at 122 per 1000 live births in 2011 . Maternal mortality has remained high, only slightly decreasing from 680 deaths per 100,000 live births in 1990 to 600 deaths in 2008. Although a relatively large proportion of women receive some prenatal care, a much smaller proportion-at 64 percent-benefit from skilled assistance at birth. While DPT3 coverage has increased from 67 percent in 2004 to 70 percent in 2011, further efforts are needed to reach the target of immunizing 85 percent of children under one year of age against DPT3'. 29. Access to urban and rural infrastructure has improved over the CAS period with most of the CAS indicators and milestones already achieved: about 200,000 additional people are benefiting from improved roads and drainage, more than 7.2 million people having access to improved water supply, more than 37 km of drainage has been built and is functioning, and about 80,000 new piped household connections have been made over the last years. Regarding rural infrastructure, progress towards achieving CAS targets for improved access to education and health facilities are on track. The level of access to an improved water source envisaged in the CAS has been exceeded - currently at 219,824 people - against the CAS figure of 208,000. 30. While there are no well-targeted or comprehensive social safety nets programs in Cameroon, the Bank has worked with the GOC to lay the ground work for the development of such a system. To date, rigorous analytical work has been undertaken on poverty and vulnerability, the landscape of existing safety net programs, and the feasibility to 6 Randomness of teacher deployment/allocation refers to the dispersion of teachers across the regions of the country. The indicator is calculated as the regional variation from the country mean. In statistical terms it is calculated as 1-R 2. Perfect allocation across the country would be along the country mean and would statistically be equal to 1. Demographic and Health Surveys, INS/Cameroon and Macro, International DHS data 8 reform current mechanisms to better transfer resources to the poorest. Moreover, a Government funded and operated pilot initiative for the use of cash transfers is under development. The introduction of such a system may also be an important mitigating factor in case of a possible decision to reduce general fuel and food subsidies, which, in addition to weighing heavily on the national budget, are deemed regressive and not benefiting the poorest and most vulnerable. E. Gender 31. The Bank's engagement in Cameroon seeks to improve equality between sexes and is aligned with recommendations in the 2012 World Development Report on Gender Equality and Development. Through the Government's contract teachers program-supported by an EFA-FTI grant-gender-specific progress has been made in the area of recruitment and deployment of teachers to educational priority zones. This has resulted in some improvements in gender parity ratio (girl to boy ratio) in enrolments-from 0.63 in 2006/07 to 0.89 in 2010/11. Up to now, about 1.5 million women and girls have benefitted from improved basic infrastructure and services supported by the Bank's Urban and Water Project (PDUE). Furthermore, the role of women in assuring project sustainability and impact has been explicitly incorporated in the design of various Bank projects. For example, the Cameroon Sanitation Project prioritizes consultation and participation by women in publicity campaigns to promote hygiene and latrine construction. This approach is aligned with the 2012 World Development Report on Gender Equality and Development, which finds that investments in water and sanitation are critical to reducing excess female mortality rate in girls less than five years of age. On-going analytical work on cross-border trade with Nigeria includes a specific analysis of women traders, and recent work on employment has a gender angle. IV. Lessons Learned in Implementation and Adjustments to the CAS 32. The overall scope of Bank engagement in Cameroon as well as the objectives and outcomes as set forth in the current CAS remain valid and relevant. No changes are proposed to the current nine CAS outcomes, whereas some of the CAS indicators and milestones will be updated through this progress report. These changes are laid out in Annex 3. 33. The CAS period will be extended by one year-through FY14. This extension aligns the CAS with the timeline of the GOC's national development strategy. It also aligns the development of the next CAS with the mid-term evaluation of the DSCE and thereby allows for the next CAS to take into account any adjustments that may be made to this strategy. 34. Fewer projects will focus the engagement. Over the remainder of the CAS period, the Bank's lending program in Cameroon will, as per requests from the GOC and based on lessons from CAS implementation, be more focused. FY13 and FY14 lending projects will consist of larger operations and additional financing for well-performing projects. 35. Freestanding technical assistance projects and projects relying on government reform typically experience problems in implementation. Infrastructure investments make good progress (CEMAC Transport; PDUE) and Bank-executed AAA has been effective in informing the Government and the public. Freestanding technical assistance projects and projects 9 in support of GOC-led reforms have, however, advanced slowly (TACD; PSFE; PASE). Building on positive experience from our engagement in urban development (PDUE), energy (PDSEN, LPHP), and transport (CEMAC TTF), the Bank will, as far as possible combine technical assistance and infrastructure investments. This should also facilitate the adoption and implementation of various reforms. 36. Knowledge and partnerships will be the base for the Bank's engagement in Cameroon. Building on positive experiences in the past-such as joint donor involvement in the local development project (PNDP), the Lom Pangar Hydropower project, and multi-stakeholder engagement under the GPF program, the Bank will further strengthen relations with existing partners and establish new relations in the country with state and non-state actors by making its global experience available to decision-makers and the public in general. The semi-annual Economic Update has played an important role to launch evidence-based public debates on key policy issues. This work will continue and outreach efforts stepped up. The Bank will further exploit links between analytical work, policy dialogue, partnerships, and lending work. This will strengthen the Bank's dialogue, project preparation and implementation. Analytical work will, when possible, be developed in partnership with national counterparts. Building on lessons from the on-going GPF program, there will be increased emphasis on the dissemination of knowledge generated, through various forms, such as multi-stakeholder discussion forums, other types of face-to-face engagement, the Internet, and social media. 37. The Bank will continue to support the GOC with just-in-time policy advice and technical assistance. Based on recent positive experience working with the GOC on policy reform issues in the electricity sector, the Bank is increasingly seen as a trusted partner in the provision of just-in-time advice and technical assistance-also on highly delicate issues. The Bank will seek to respond favorably to GOC requests for further such support, taking into consideration the cost (time and financial) that this represents. Such support may also be undertaken, upon specific demand from authorities, when there is no formal Bank lending. 38. Strengthened monitoring of results and progress towards achieving CAS outcomes and indicators over the remainder of the CAS period. The CAS results framework was developed using indicators from on-going and planned activities during the CAS period. The results framework - and hence monitoring - has, however, suffered from a certain degree of inconsistency between the CAS outcomes, indicators and the milestones, and a high number of CAS indicators. The revised CAS results framework - as presented in this CAS PR (Annex 3) - takes this into account and proposes appropriate changes. Country management has, over the CAS eriod, undertaken regular country portfolio performance reviews (CPPRs) (November, 2010 and July, 2011), carefully monitored deliverables and progress at project level - through the ISR system and through continuous dialogue with task team leaders and their teams - and participation in various missions. Over the remainder of the CAS period, monitoring of results and progress towards achieving CAS outcomes and indicators will be further reinforced. Impact assessments are planned or on-going for the safety nets and the health operations. 39. Leveraging World Bank Group assistance - furthering links with IFC and examining opportunities for MIGA support. The Bank has worked and continues to work 9 The November 2010 CPPR made use of the recently developed "stop-light" system in the operations2 portal. 10 closely with the IFC in the energy sector (Kribi Gas to Power, Lom Pangar, AES Sonel concession). Further on-going collaboration includes work to improve the investment and business climate in Cameroon, with, among other things, support to the Cameroon Business Forum. Future areas for collaboration may include SME development, including access to finance, support to the mining, agri-business, tourism, and transport sectors, as well as to the development of the Kribi deep-sea and commercial zone. Possible future MIGA involvement could build on positive outcome from the partial risk guarantee provided by the Bank which allowed for local banks to engage in the Kribi Gas to Power Project. MIGA currently has one project in Cameroon - 4G Africa - approved and signed in June 2012. 40. The current active Bank lending portfolio in Cameroon has a heavy emphasis on energy, transport and urban development sectors. It consists of 13 national IDA and GEF operations, five regional IDA operations, and six trust funded operations, with a net committed amount of (IDA, GEF, trust funds) USD 1,081.5 million, with an undisbursed balance of USD 800 million (as of June 30, 2012). The average portfolio age is 2.8 years. Annual disbursement rates have been low, around 10 to 12 percent since 2008. In FY12, however, the disbursement rate for the national IDA portfolio reached 20 percent0. This significant increase is a result of concerted efforts and collaboration between all parts of the Bank matrix, close collaboration with GOC/implementing partners and agents, close and enhanced supervision support from the Bank side, and a number of project restructurings. There has been a significant increase in the number of projects and the volume of lending between 2007 and 2012 - committed amounts increasing from USD 425 million to USD 1,081.5 million. The portfolio has five projects currently classified as "problem projects". Three of these projects will close by end 2012 and the remaining two will be restructured. A. Generate shared growth 41. The Bank will strengthen focus on link between growth and poverty reduction and engage to improve the efficiency of public expenditure. This will be done through reinforced dialogue, further analytical work (including poverty analysis), and a strengthening of such links in lending operations. The Bank will continue work to strengthen the budget process, the demand-side of governance, and to pilot new approaches that deliver better services at lower cost (such as performance based financing and rapid results initiatives). The Bank will also work to assure sector frameworks assure benefits for the populations, as is the case in the energy sector. The adoption of such frameworks will underpin further Bank engagement in sectors. B. Governance 42. Though no additional financing for the ongoing PFM lending operation, the Bank stays engaged in the sector through analysis and policy dialogue, including strong engagement on the debt management side. The Bank will provide support to PFM through analysis and Bank-executed technical assistance. This will include the finalization of a PFM master-plan, an assessment of national PFM systems, the development and implementation of a solid debt management strategy (with the IMF), and support to on-going procurement reforms and the EITI validation process. Trust funds and alternate sources of financing (besides BB and o Includes disbursements under GEF- and EFA-FTI-financed operations. 11 IDA) will be sought to provide additional support. The Bank will work closely with financial and technical partners in the sector. 43. Economic monitoring and reporting will continue. Based on regular economic monitoring undertaken by the economic team as well as recent Bank-sponsored or executed analytical work, the Bank will continue the semi-annual publication and dissemination of Country Economic Updates made up of an economic and a thematic section. Capitalizing on already existing analytical work, the Bank will deliver a Country Economic Memorandum (CEM). 44. On-going work under the GPF program will continue and efforts will be made to mobilize additional funds to scale up efforts to strengthen demand-side governance, possibly with the support of other donors (interest from EU, US, Canada, and Germany). C. Increasing Competitiveness 45. The Bank will deepen its engagement in the agriculture sector, with a planned FY13 ESW and FY14/15 lending operation. Demand from GOC for the Bank to further engage in the agricultural sector is strong. This is an area where the Bank can add significant value and where it has important regional and global lessons and experience to bring. The regional fisheries SIL indicated in the CAS will be dropped. 46. Continued strong support to the infrastructure sectors. Building on momentum and positive experiences in the last phases of preparation of the Kribi Gas Partial Risk Guarantee and Lom Pangar Hydropower Project and strong demand from the GOC, the Bank will further strengthen its engagement in the energy sector through deepened and reinforced sector dialogue. The Bank will begin analyzing issues relating to a future regional energy pool connecting Central Africa with the Nigerian market and the role that Cameroon can potentially play in such a set-up. Questions linked to improving the transmission system will also be addressed through sector dialogue/TA. The Bank will, based on a strong request from GOC, provide additional resources to the transport sector, to complete rehabilitation of the Douala - N'Djamena corridor. Through the restructuring of the on-going Competitive Value Chains project, the Bank may provide support to the development of the Kribi industrial zone. The Bank will continue its dialogue and engagement in the water sector, aiming to increase general access to water and also help support the development of the sector. The envisaged second phase of the Central African Backbone project is dropped as the GOC did not sign off on the principles of open competition and transparent management of the regional fiber-optic cable within the timeframe agreed by CEMAC, the three countries concerned (Chad, CAR, Cameroon), and IDA. As a result of immediate and strong seasonal floods, with the imminent risk that two dykes in the Extreme North will collapse (Maga and Logone), the Bank has been asked by Government to finance the full rehabilitation of one dyke (EU to finance the second). Studies for the rehabilitation of the two civil works are already under preparation, and the Bank is examining the request for financing for the rehabilitation. 47. Based on expressed GOC priorities and past experience, the Bank is redefining its engagement in the forestry and environment sectors. Implementation of the recently closed 12 forestry DPO and an environment SIL faced considerable challenges, caused - among others - by weak implementation capacity and changing GOC priorities. The protected areas operation envisaged in the CAS is therefore dropped. Instead, the Bank will focus on more targeted investments in the forestry sector, including the Competitive Value Chains Project, the GEF Conservation and Sustainable Use of the Ngoyla Mintom Forest Project, support to the REDD Readiness process, and significant funding for an environmental offset within the context of the Lom Pangar Hydropower Project (as part of the joint donor financing to the project). New pressures on forested land deriving from other sectors will require the Bank to broaden its support to not only work with the Ministries of Forestry and Environment, but to work across the administration on natural resources management issues - including allocation of land and water. In view of the regional nature of the forestry sector and Cameroon's position in the Congo basin, regional ESW in the sector is being undertaken and additional work is under consideration. This may allow for the identification of entry points for further engagement by the Bank in the sector, which may be addressed in the next CAS period. D. Improving Service Delivery 48. Fiscal decentralization will be mainstreamed into local service delivery programs supported by IDA, including the on-going urban and rural development projects. The Bank's engagement on local service delivery through an additional phase of the local development APL (PNDP) and the ongoing urban development project (PDUE) will focus more explicitly on building and transferring competencies for service delivery and local administration. The Bank's recent fiscal decentralization study points out that intergovernmental transfers lack transparency and that local governments often have inappropriate financial resources to meet spending responsibilities. In light of the regional disparities in social indicators, greater fiscal decentralization may make matters even worse, if local governments are not given sufficient resources to provide equal quality of services. In this regard, efforts will continue to inform respective project teams and foster dialogue between the Ministry of Finance, sector ministries and local government on the need to develop own sources of revenue and establish a truly equalizing transfer mechanism. 49. Developing effective social safety nets may reduce extreme poverty and facilitate the reduction of universal subsidies. On the human development side, the Bank will deliver a USD 50 million social safety nets operation in FY13. The operation is based on extensive analytical work during FY 11/12 on the existence of safety nets and modalities for implementing a safety nets system. A sector strategy is also under development. The operation represents one measure that may help GOC start a process to reduce costly universal fuel and food subsidies. Further financing for health, through additional financing for the existing project, will be considered based on project performance. 50. Employment creation remains an important challenge which requires substantial analytical basis. The Bank will continue its support to the GOC to gain a better understanding of the employment issue Cameroon is faced with and how to better align the education system to existing and future employment opportunities. This will be done primarily through a skills development study. The Bank will also continue its work through on-going and forthcoming 13 lending operations that stimulate employment creation, such as the mining, competitive value chains, urban and local development projects, as well as the safety nets operation (public works). 51. The indicative IDA16 allocation for Cameroon is USD 324.3 million". Through strong portfolio management, about USD50 million12 will be or has been cancelled from committed resources and returned to the IDA envelope for recommitment. To date, USD 182.50 million has been committed under IDAl 6. A table of indicative lending and analytical work during the remainder of the CAS period can be found below and in Annex 4. For lending operations, the sources of financing will include the remaining IDA envelope along with recommitments. Table 1: Indicative lending and analytical work during the remainder of the CAS period Formal Analytical work/technical assistance Sector and Demand-Side Drivers of Deforestation in the Country Health Status Report Governance Program - GPF (FY13) Congo Basin (FY13) (FY13) EITI (FY13) Road-safety TA (FY13) Safety Nets Pilot (TF) (FY13) Country Economic Memorandum Agriculture ESW (FY13) Skills Development Study (FY14) (FY13) Customs Integrity TA - Phase 2 PPIAF to Water Sector Reform (FY14) (FY14) PEFA/PEMFAR (FY14) Economic Policy Notes (FY13+14) Lending Community Development Program Transport- Douala - N'Djamena Social Safety Nets SIL (FY13) Support APL3 (FY13/14) corridor (FY13) (USD70M) - under (USD50M) (USD40M) - under consideration consideration Dyke Rehabilitation (FY13) - under GPE grant (FY13) (USD52M) consideration Agriculture SIL (FY14/15) Health Sector Support SWAP (USD80M) Additional Financing (FY14) I (USD20M) - under consideration IV. Risks 52. A fragile global economy and a challenging country context are identified in the CAS as the main risks to the Bank's engagement in Cameroon. Exogenous, macroeconomic, development effectiveness, reputational, fiduciary, and political economy risks remain about the same as in 2010. The uncertainties of the sovereign debt crisis and the slow-down in global economic activity have so far not affected Cameroon's growth. The political picture is relatively stable, with no major incidents linked to the 2011 presidential election, even though reports from independent observers highlighted a number of irregularities and a low level of participation. The Figures in paragraph are based on SDR- USD exchange rate as of September 21, 2012. The IDA16 resource envelope is provided for the 3- year replenishment cycle of FY12-14. As of July 1, 2012, the FY13 allocations is firm while the FY14 allocation is indicative and can change depending on: (i) total IDA resources available in FY14; (ii) the country's performance rating; (iii) the terms of IDA's assistance to the country (grants or credits) based on its debt sustainability position; (iv) MDRI debt relief amount and the redistribution of the MDRI compensatory resources as applicable; (v) the performance and assistance terms of other IDA borrowers; (vi) the number of IDA-eligible countries. 12 Cancellations and recommitments: forestry sector DPO (USD 16.25 million), energy sector project (USD 16.20 million), education, PFM, and environmental capacity development projects (amounts to be confirmed at project close). 14 President was, in the 2011 election, re-elected for another seven-year mandate. The question of succession is recurrent in the media but not on the official agenda of the ruling party. 53. The development effectiveness risk is still relatively high, where the impact of reforms and spending on poverty reduction is still weak. Technical and financial partners are, through various partnership coordination mechanisms, tabling and discussing this issue with the GOC. In terms of reputational risk, the Bank is managing this through better project preparation, as for example for the LPHP, with an emphasis on assuring strong, pro-poor sector frameworks. This effort will persist during implementation and also extends to the remainder of the portfolio. The Bank's work in Cameroon also benefits from strong resident procurement, financial management, and safeguards support. Finally, the recent approval of a number of important and highly visible lending projects has strengthened Bank dialogue with the GOC thereby improving the environment in which the Bank operates in Cameroon. 54. Natural disaster risk - volatility of Cameroon expressed by on-going floods in the North and Extreme North regions. Due to exceptional rainfall, more than 30,000 people are currently affected by floods. UNICEF and WHO are already providing emergency support in the affected areas. The GOC is coordinating efforts. The Bank has been asked by GOC to support the full rehabilitation of one of two dykes in the Extreme North (Maga and Logone), as these ageing structures are starting to show irreparable tears. The rehabilitation of these dykes would represent an extensive mitigating measure against a possible collapse during rains over the next few years. The Bank's Disaster Reduction and Recovery Unit is providing support to identify the appropriate Bank response. 15 Annex 1: Progress on Results Matrix for the Cameroon CAS CAS Outcome CAS Outcome Indicators (from CAS) CAS Milestones and Status (from CAS) WBG Program (from CAS) (from CAS) CAS Progress Report Status CAS Progress Report Status CAS Foundation: Governance 1. Enhanced Scope of the legislature scrutiny of the annual Capacity building program for National Assembly On-going Proiects transparency and budget law. (PI-27i) Commission for Finance and Budget prepared by - Transparency and efficiency in Baseline: C in 2007 2011 -Not achieved Support to befinancedfrom Accountability Project public financial Target: B in 2012 an IDA Transparency and Accountability project, (ACD) (FY08) management Progress cannot be formally registered - No PEFA but no qualified candidate was identified. Project is assessment has been undertaken. Qualitatively, now closing On-going Activities limited progress can be noted, though some actions - EITI, support to validation to improve collaboration between the Audit Bench Expenditure processes mapped and proposals for - Anti-Money Laundering and the Parliament were implemented streamlining prepared by 2011 -Partially achieved Technical Assistance - Stolen Asset Recovery (StAR) Completeness of the financial statements (in New Decree on General Accountancy signed and support French, Loi de R&glement) (PI-25 i) effective by 2012 - Partially achieved: New Decree - Budget Transparency Baseline: D in 2007 on General Accountancy submittedfor signature Initiative Target: B in 2012 (Presidency of the Republic) but not yet signed (or Progress cannot be formally registered - No PEFA effective) Planned activities assessment has been undertaken. Some progress - DeMPA follow up can be noted: The IMF Fiscal Affairs Dept confrms Cameroon achieves EITI validation by 2011 - Not - Anti-Money Laundering TA improvements infinancial statements. Delays in the achieved: New submission deadline is August 2013 _ Customs Integrity TA submission offinancial statement to the Audit - Possible TACD additional Bench and the Parliament have been reduced. Opening balance and accrual accounting principles fiNAncn remain a challenge - C Cg TA - Budget Transparency Intiative - Public Investment Diagnostic 2. Improved Availability of information on resources received 4 Political Economy Analysis Reports produced by On-going/Recent Activities sector by service delivery units (PEFA P-23) June 2012- Achieved PE reports financedfrom - Forensic Audits, Education govemnance Baseline: D in 2007 the GPF undertaken in the Education, Telecoms, and CDD focused on Target: B in 2012 Mining, Forestry, Health sectors - Performance-Based Approach, transparency and Progress cannot beeformally registered - No PEFA Health accountability assessment has been undertaken. Some(progress At least 6 Govemance Dialogues held by June 2012 - Political Economy Analysis: can be registered: since 2008, the Ministry of - Achieved Dialogues successfully held with multi- Education, Energy Finances has been issuing and publishing in the stakeholder partners in Mining, Education, - Roundtable on NRM newspaper detailed instructions in relation to the Forestry, Health, PFM, and-for social safety nets Govemance 16 CAS Outcome CAS Outcome Indicators (from CAS) CAS Milestones and Status (from CAS) WBG Program (from CAS) (from CAS) CAS Progress Report Status CAS Progress Report Status execution and control of the budget, including for Annual Reports on procurement activities in the 5 - CHOC Program public entities (those receiving subsidies from the selected ministries available for each year, from Central Government). This has helped enhance 2010 Pipeline activities transparency in budget execution and management. - Customs Integrity Action Plan The GOC, in partnership with representatives of (FY10) beneficiaries and members of civil society, has - GPF -Sector and demand side established and organized local committees to governance (FY10) monitor projects financed from the public - PETS: Health, Education investment budget in provinces and departments Contracts above threshold procured through open competition, in selected ministries (Health, Education, Agriculture, Public Works, Finance) Baseline: TBD in 2010 audit Target: 40%o over baseline in 2012 Progress cannot be-formally registered - The latest audit was undertaken in 2008 Percentage change of public awareness about governance issues in targeted sectors (Governance Survey) Baseline: TBD in first Survey Target: 250% increase Progress cannot be formally registered - Governance Survey was not undertaken 3. Improved Public access to key fiscal information (PEFA PI-- Release of semi-annual budget reports on available On-Ijoinll/Recent Activities demand-side 10) media every 3 months (government websites, - Civil Society Fund governance and Baseline: B in 2007 national newspapers) by 2010 - Partially achieved: - CHOC Program participation Target: A in 2012 Semi-annual budget reports published on GOC Progress cannot be formally registered - No PEFA websites and in national newspapers Pipeline activities assessment was undertaken. Limitedprogress: In - GPF -Sector and demand side spite of actions implemented (quarterly publication PETS2 for education and health reports governance (FY10) offiscal report, creation of local committees, disseminated and discussed in four regions by end annual publication ofAudit Bench report, of 2012 - Good progress: Reports need to be publication ofpublic procurement process,..) an finalized and disseminated upgrade of the B score to A is not envisaged/likely Annual Reports on procurement activities in the 5 17 CAS Outcome CAS Outcome Indicators (from CAS) CAS Milestones and Status (from CAS) WBG Program (from CAS) (from CAS) CAS Progress Report Status CAS Progress Report Status Percentage of respondents aware of civil society selected ministries released each year, from 2010 work for governance (Governance Survey) Baseline: TBD in Governance Survey 20-40 civil society initiatives are displayed and Target: 25% increase discussed publicly with donors, officials, medias Progress cannot be registered - Governance Survey and citizens - Achieved: Development Marketplace was not undertaken initiative launched, with the display andpublic discussion of 30 civil society initiatives (July Level of perceived collaboration and coordination 201]).Funding grantedfor 15 civil society on governance issues in civil society organizations initiatives through a public and transparent process (Governance Survey) that included donors, government, the media, and Baseline: TBD in Governance Survey the public. Projects are currently under Target: 25% increase implementation and will be evaluated at closing. Progress cannot be registered - Governance Survey Continuous monitoring and dissemination Of was not undertaken progress CAS Strategic Theme One: Increasing Cam2eroon0's Copetitiveness 4.dncreased Enerpiy: Enerwty: Enery: access to and Electrified villages (grid and off-grid) in targeted Setting up a financing and planning mechanism for On-goingi Projects quality of areas rural energy (Rural Energy Fund) by 2010 - - Energy Sector Development infrastructure Baseline: 2, 100 in 2008 Achieved (Dec 2009) [but has not allowed for SIL (FY08) services Target: 2,300 in 2013 implementation of]DA-financed support to rural No progress: No progress on village electrification electrification TA to date - due to change in Government policy. Bank - PPIAF Grant for Regulatory engagement will commence shortly under A long term least cost development plan for the Model restructured project dueifor completion end 2015 sector adopted by 2011 (Yes/No) - No - not achieved: The plan is currently under development, Pipeline proects Electricity supplied from Kribi gas to power project duefor completion 2013 - Kribi Gas (with IFC) (FY10) Baseline: 0 MW - Lon Pangar Hydropower Target: 216MWry 2012 Satisfactory electricity tariff review by 2011 (FY11) Goodprogress: Krii gas to power plant duefor (Yes/No) - No - not achieved: Tar ff were commissioning by end 2012 reviewed in May 2012 Loi Pangar Hydropower Project activities in accordance with international best practice technical, environmental and social standards every year between 2010-2013 (Yes/No) - Yes - achieved: Project approved in March 2012. All 18 CAS Outcome CAS Outcome Indicators (from CAS) CAS Milestones and Status (from CAS) WBG Program (from CAS) (from CAS) CAS Progress Report Status CAS Progress Report Status activities undertaken from 2010 to 2012 are in accordance with technical, environmental and social international best practice standards Start of construction of Kribi gas in 2010 - Partially achieved: Kribi gas construction commenced 2011, due for completion end 2012 Transport: Transport: Transport: Douala port dwell time" for main importers 86 km of Mbere - Ngaounde section rehabilitated On-vini Proiects Baseline: 10.6 days in 2009 by 2011 - Not achieved: Rehabilitation works are - CEMAC- Transport-Transit Target: 8.8 days in 2013 expected to be completed in August 2012 Facilitation (FY07) + Add. Achieved: The operational and transactional dwell Financing (FY10) time is currently 7 days. Total port dwell time4, 2 bridges rehabilitated by 2011 - Not achieved: - West and Central Africa Regl however, is 19 days (compared to 3-4 days in most Rehabilitation works have started on 4 bridges Air Safety (FY06) large international ports).A large part of this dwell between Ngaoundere and Garoua; one work - Ag. Competiveness (FY09) time is caused by the use by importers ofport contract to rehabilitate a 5h bridge between facilities for storage purpose Dabanga and Kousseri has been awarded Pipeline proiects - Competitive Value Chains Average transit time for imports from the exit at the Automated transit system operational by 2011 - Not (FY10) port of Douala to N'Djamena achieved: The new CEMAC regulationfor the Baseline: 14.4 days in 2009 transit regime in the sub-region was adopted in Pipeline TA Target: 12 days in 2013 2010. Implementation is underway Customs Integrity (FY10) No progress: Average transit time for imports from the exit at the port ofDouala to N'Djamena is Batchenga Ka'a railway rehabilitated (125 ki) by currently 15 days, including 7 days for transport 2011 -Not achieved: Railtrack rehabilitation and 8 days for border operations in Ngueli at the contract (175km) could not be awarded in 2011 and border between Chad and Cameroon tender had to be declared unsuccessful. A new bidding process was re-launched in 2012 Average transit time for imports from the exit at the port of Douala to Bangui 30 train coaches purchased for passenger service by Baseline: 12 days in 2008 2011 - Not achieved: The purchase orderfor the Target: 8 days in 2013 acquisition of38 passenger cars was passed in Good progress: Average transit time for imports 2011. Train coaches are expected delivered in 2013 from the exit at the port ofDouala to Bangui is 13 The definition of the CAS indicator was refined in 2011 as the "operational and transactional dwell time" STotal port dwell time is composed of operational dwell time, transactional dwell time and storage time. 19 CAS Outcome CAS Outcome Indicators (from CAS) CAS Milestones and Status (from CAS) WBG Program (from CAS) (from CAS) CAS Progress Report Status CAS Progress Report Status currently 8.5 days (dry season only), including 5 100 km of rural roads rehabilitated by 2011 (Ag. days for transport and 3.5 days for customs Comp. Project) clearance operations in Bangui Telecommunications: Telecommunications: Telecommunications: Total teledensity (active fixed and mobile New legislation for Electronic Communications On-vini proiects subscribers per 100 inhabitants) adopted by end 2010 -Achieved: New - Central Africa Backbone Baseline: 28.1 in 2008 telecommunication Law passed Decemher 2010. APUA (CAB) (FY10) Target: 70 in 2013 Major secondary legislation issued June 2012 Good progress: 2011: Total teledensity (active fixed TA and mobile subscriber per 100 inhabitants) Award a new mobile license to a private operator by - PPIAF - Technical Study to estimated at 57 2011 - Not achieved: Award of the new mobile deploy CAB (FY09) licence process re-launched 2012, with the - IDF CEMAC ICT legislation Average monthly price of wholesale international expectation that a new mobile operator will be & M&E (FY09) capacity link from Yaounde to European hub (El) recruited end 2012 Baseline: 6,000 USD in 2008 Pipeline proiects Target: 1200 USD in 2013 Existing fiber-optic network laid along the Chad- - Central Africa Backbone Some progress: 2011: Wholesale international Cameroon oil pipeline used to connect Chad (by APL1B (CAB) (FY11) capacity price per Mbps was negotiated at 2,500 2011) and CAR (by 2012)- Achieved: USD per Mbps Interconnection between Cam eroon and Chad effective and operational since December 2011 Internet Servers registered under the Country Top-Level Domain (ccTLD) increased from 1,100 in 2008 to 100,000 in 2011 - Not achieved 5. Improved A2riculture: A priculture: Ariculture: business climate Average rice yields in rehabilitated irrigated areas Targeted irrigation area rehabilitated increased from On-gioingi Projects and investment in Baseline: 5.2 tons/ha in 2009 0 ha in 2009 to 5000 ha by 2011 - Not achieved: - Agricultural Competiveness targeted value Target: 5.8 tons/ha in 2013 Rehabilitation of rice irrigated perimeters has not Project (PACA) (FY09) chains Achieved - 5.8 tons/ha achieved 2012 started since feasiility and detailed design (agriculture, eco- studies-prerequisites for rehabilitation-are not Pipeline proi ects tourism, and yet completed - Regional Fisheries project wood (FY12) transformation) Targeted Agriculture Producer Organizations engaged in economic partnerships increased from 0 to 400 by 2011 - Achieved: Agriculture Producer 20 CAS Outcome CAS Outcome Indicators (from CAS) CAS Milestones and Status (from CAS) WBG Program (from CAS) (from CAS) CAS Progress Report Status CAS Progress Report Status Organizations engaged in economic partnerships increased from 0 to 532 by 2012 Producer Organizations receiving support services through APEX organizations increased from 0 in 2009 to 200 in 2011 - Good progress: Data collection in progress Eco-tourism: Eco-tourism: Eco-tourism & Wood TBD TBD transformation: Pipeline project Wood transformation: Wood transformation: - Competitive Value Chains TBD TBD Project (FY10) Investment climate: Investment climate: Investment climate: Days to register a property On-line inventory of all legal taxes and licenses Pipeline proiects Baseline: 93 in 2009 established by 2011 (TBC as part of new operation) - Competitive Value Chains Target: 40 in 2013 - Not achieved Project (FY10) No progress AAA - Doing Business (with IFC) 6. Improved Mininj!: Mininj!: Mininj!: transparency, Mining title system in compliance with established Mining Cadastre Assessment completed by 2011 - On-vini Proiects equity and procedures for transparency and efficiency Achieved: Mining cadastre assessment was - Mineral Sector Inst Cap Bldg sustainability in (Yes/No) successfully completed under the IDF grant (FY08) the use of natural Baseline: No system in place (2009) resources Target: Yes by 2013 Artisanal and Small-Scale Baseline assessment of Pipeline projects Some progress: Improvements to the mining Cameroon completed and results shared with - Mining TA (FY12) cadastre is one of the activities to start in the early stakeholders by 2011 - Achieved: Small-scale phase of the implementation of the Mining TA business assessment was successfully completed under the IDF grant Mineral Strategy developed by 2011 -Partially Achieved: A draft mineral strategy was presented during a May 2012 Mining Forum Forestry and Protected Areas: Forestry and Protected Areas: Forestry and Protected Areas: Increase in area of natural forests and plantations 4.5 M ha of natural forests gazetted by 2011 On-vinu Projects 21 CAS Outcome CAS Outcome Indicators (from CAS) CAS Milestones and Status (from CAS) WBG Program (from CAS) (from CAS) CAS Progress Report Status CAS Progress Report Status under Sustainable Forest management - GEF Forest & Env DPL Baseline: 3.5 M ha ofnaturalforests and 0 ha of Plan for contracting out management of plantations (FY06) plantations in 2009 to local community, local government or private - Forest and Environment SAD Target: 4.5 M ha ofnaturalforests and 5,000 ha sector agreed upon by 2011 -Partially achieved: (FY06) ofplantations in 2012 Plan adopted in July 2010 but re-assessed in May Achieved: Natural Forests under Sustainable 2012 to clarify extent of transfer of land ownership Pipeline projects Management: 4,7 Million ha by April 20]] - Protected Areas (FY12) At least 75 Forest Management Units under Forest Management Plan by 2011 -Achieved: 90 Forest AAA Management Units under Forest Management - Protected Areas ESW Plans by 3] Dec 2011 Environment and social manaMement: Environment and social manaement: Environment and social Area under SLM practices in targeted zones Sustainable Land Management (SLM) Micro manallement: Baseline: 1000 ha by 2009 projects implemented increased from 210 in 2009 to On-goingi Proiects Target: 10,000 ha by 2013 240 by end 2011 - Not achieved: 206 SLM Micro- - GEF Sst AgroPastor & Land Achieved: Target value achieved and exceeded as projects implemented: 15 communal micro-projects Mgmt (FY06) actual area under SLM practices in targeted zones financed and implemented to date and 19] - Environment Capacity is 88,448 ha community micro-projectsPfinanced and Energy SIL (PRECESSE) implemented to date. 52 additional SLM micro- (FY08) Facilities for which annual environmental projects still under implementation performance report certified as compliant by MinEP with EMP Landscape Use Management Plans established Baseline: 000 in 2009 increase from 5 in 2009 to 10 by 2011 - Not Target: 70% in 2013 achieved: 5 landscape use managementplans have Good progress: 2011: 89 facilities with EMPs were been prepared and officially approved and are now subject to inspection - 22 were fully compliant, under implementation 45 were moderately satisfactory, and 13 were unsatisfactory 45 EAs for new investments reviewed by Inter- Ministerial Committee yearly between 2009-2013 - Achieved: Between 2009 and 2011, 288 EAsfor new investments were reviewed by the Inter- ministerial Committee 800 of existing energy sector facilities with all environmental and social impacts identified through audit process by 2011 - Not achieved: Only three existing energy sectorfacilities have 22 CAS Outcome CAS Outcome Indicators (from CAS) CAS Milestones and Status (from CAS) WBG Program (from CAS) (from CAS) CAS Progress Report Status CAS Progress Report Status carried out an audit (SCDP - 2011, Kribi Gaz Plant - 2010, and AES Sonel - 2010). For the Mape, Bamendjin and Mbakaou dams, the process is on- going CAS Strategic Theme Two: Improving Service Delivery 7. Improved Completion rate in primary education Increase in the number of contractual teachers to On-vinu Proiects quality and Baseline: 64% by 2007 37,000 by 2011 - Achieved - Education Dev CB efficiency of the Target: 70% by 2012 education system Achieved: 2009/2010: 73% (all), 68,8% (girls) Analytical tools (CSR update and sector simulation On-uoini TF & Grants: 2010/2011 (estimation): 74,2% (all) models) developed and applied by 2011 - Partially - EFA-FTI Grant achieved: Preparation of analytical tools on-going Efficiency in the distribution of teachers measured Proposed TF & Grants: by a low degree of randomness in teacher allocation Timely and accurate annual statistical reports - EFA-FTI; GPF. (FY11) Baseline: 45% by 2009 produced by 2011 - Some progress Target: 25% by 2012 Proposed AAA: Not achieved: 2010/2011: 48% School micro-projects using a participatory - Yaound6 CDS; approach are developed and implemented by the - Technical and Vocational communities in 43 ZEP by 2011 - Achieved Education Training (TVET) Study; - Decentralized Service Delivery ESW 8. Improved Immunization DPT3 under-i (P) Pregnant women with at least 3 prenatal visits to Qn-Poin Proects access and Baseline: 80.6%o in 2006 anti-natal clinic increase from 60.4%o in 2004 to - Health Sector SWAp (FY08) quality of health Target: 85%o in 2013 65%o in 2011: Information not available until services Some progress: DPT3 coverage increasedfrom October 2012 (Country Health Status Report) Proposed AAA: 67%o in 2004 to 70%o in 2011 using DHS data - Health Sector Status Report (which dffers from data sourcefor 2006) (FY 11) Births attended by skilled professional Baseline: 63cZ in 2006 Target: 66Er in 2013 Limitedprogress: 2011: 64% coverageDfor Births attended by skilled professional 23 CAS Outcome CAS Outcome Indicators (from CAS) CAS Milestones and Status (from CAS) WBG Program (from CAS) (from CAS) CAS Progress Report Status CAS Progress Report Status 9. Improved Urban infrastructure: Urban infrastructure: Urban infrastructure: access to basic People benefiting from all-year access to Increased length of drainage network functioning On-vinu Proiects infrastructure and transportation and improved sanitary conditions in properly from 5 km in 2007 to 37 km by 2011 - - Urban & Water Dvt Project social safety nets targeted urban areas Achieved More than 37km built andfunctioning Baseline: 35,000 in 2009 Pipeline proiects Target: 290,000 in 2012 50,000 (IDA) + 55,000 (OBA) additional - Urban Sanitation (FY12) Good progress: About 200,000 people benefited connections of piped household water connections - PDUE Additional Financing from improved roads and drainage by 2011 - Partially achieved: About 80,0000 new (FY10) piped household connections installed Additional people with access to improved water On-uoinu TF & Grants supply (IDA+OBA) 700 additional community water points constructed - Cities Alliance; Baseline: 6.9 million in 2009 by 2011 - Not achieved: Only 10 water points built - GPOBA on Water Target: 8.3 million in 2012 due to preferencefor piped water connections Good progress: More than 7.2 million people have Proposed TF & Grants access to improved water supply 6 City development contracts by 2011 - Partially - GPOBA Water 2 achieved: 6 contracts are still under preparation - GPOBA Sanitation Increased share of municipal budget allocated to maintenance of investments from 1 in 2009 to 1000 in 2011 - Partially achieved: About 500 of municipal budget allocated to maintenance Rural infrastructure: Rural infrastructure: Rural infrastructure: People in project area with improved access to: Communes with priority investments reflected in O-oi Poet the communal development plans and budgets up On-oinu Progects - Education facilities from 155 in 2009 to 220 in 2011 - Achieved and e Pro Baseline: 78,000 in 2009 exceeded: A total of230 Communes supported yproects Target: 103,000 in 2013 the project have reflected priority investments in the Pipeline ProSu.1, Good progress: A total of 86,249 students in project communal development plans and budgets (FoiYDv1 rg3up)II areas have improved access to Education facilities( Classrooms built/rehabilitated increased from 232F - Health care facilities in 2009 to 500 in 2011 - Achieved and exceeded: A P iesed Alae Baseline: 66,000 in 2009 total of 325 classrooms have been - GPcOal ate F Target: 196,000 in 2013 built/rehabilitatedpratentraiation Good progress: A total of 104,500 people in project areas have improved access to Health care facilities Health facilities constructed, renovated, or equipped increase from 50 in 2009 to 100 in 2011 - Some 24 CAS Outcome CAS Outcome Indicators (from CAS) CAS Milestones and Status (from CAS) WBG Program (from CAS) (from CAS) CAS Progress Report Status CAS Progress Report Status - Improved water source progress: A total of 66 health facilities constructed, Baseline: 92,000 in 2009 renovated or equipped Target: 208,000 in 2013 Achieved and exceeded: A total of219,824 people Improved community water points constructed in in rural areas have access to improved water points rural areas increase from 262 in 2009 to 600 in 2011 - Achieved and exceeded: A total of 896 improved community water points have been constructed in rural areas Social safety nets: Social safety nets: Social safety nets: People covered by targeted safety net programs Safety nets strategy approved in 2011 - Not Proposed AAA (number) achieved: Safety Nets Assessment, Safety Nets - Safety Nets Assessment Baseline: TBD - Based on current estimates from Feasibility Study, and Analysis of General Subsidies inventory undertaken Pipeline proiects Target: TBD Social Sector / Safety Nets No progress: Safety nets operation not yet under Safety net pilot program started in 2012 - Good (FY13) implementation progress: Safety nets pilot underdevelopment, to start later in 2012, IDA operation is under development, with February 2013 Board date 25 Annex 2: Analysis of Progress towards CAS Outcomes 1. This annex provides detailed analysis of progress toward CAS outcomes and achievement of indicators. Progress on CAS Foundation: Governance 2. CAS outcome 1: Enhanced transparency and efficiency in public financial management - Some progress. Budget preparation and execution are generally improving, with, as envisaged under the CAS, the preparation of financial statements and further debate by the legislature around the budget, and expenditure processes mapped and proposals for streamlining prepared in 2011. However, limited progress has been made in terms of increasing legislature scrutiny of the annual budget law - one of the objectives set out in the CAS. Policies and priorities are broadly reflected in the budget and elements of forward budget planning are in place. The GOC is also preparing for the introduction of program budgeting for the 2013 budget year. The necessary guidelines have been issued and capacity building of civil servants in all ministries and Members of Parliament is on-going. Budget classification is comprehensive and extra-budgetary spending is limited. Since 2006, a central MTEF has periodically been updated and sector MTEFs exits in priority sectors (education, health, public works and agriculture). This approach is gradually being extended to other sectors. A Journal of projects, including relevant budget allocations, is officially published in the national newspapers and local committees in charge of monitoring projects execution created in 2010 are now fully operational. National investment budget rates have increased from an average of 50 percent in 2005 to over 70 percent in 2011. 3. Cameroon is still working towards EITI validation, with August 2013 as the final deadline. The GOC formally adopted the EITI process in 2005 and quickly moved to establishing a tripartite EITI Committee and Secretariat. Since then, an Action Plan has been adopted and three reconciliation reports, for the years 2001-2004, 2005, and 2006-8, have been submitted to the international EITI Secretariat. The GOC has continued to implement its revised EITI action plan and communications strategy. The preparation of the 2009 and 2010 reconciliation reports are currently under preparation - to be published by the end of 2012 - and will include the mining sector (originally only oil revenues and volume were included in the reports). An independent evaluation is planned before submission to the EITI Secretariat of the final reports-with expected validation in August 2013. If Cameroon does not achieve compliant status in August 2013, the country will be de-listed. The Bank is providing technical assistance to the process (PREM and SEGOM). Cameroon became a participant to the Kimberley Process in August 2012. 4. CAS outcome 2: Improved sector governance focused on transparency and accountability - Some progress. On the revenue side, a pilot initiative introducing performance- based contracts in the customs department has led to impressive results and change. Individual performance contracts for custom officers have been introduced - making Cameroon the first country in the world to adopt such an approach. These performance contracts use objective and quantifiable data from the automated computer system. The objectives of customs administration (facilitation and enforcement) are complemented by specific objectives, which aim at abolishing bad practices. The results are encouraging: higher revenue collection, shorter clearance times, 26 and lower corruption (measured through systematic firm surveys of a representative sample of customs brokers undertaken before, during, and after the experimentation). The appointment of inspectors is also increasingly based on the results of the performance contracts, and therefore on data, where the best ones are being promoted and the lower performers sent to smaller offices. An internal meritocracy is thereby being established. 5. Public debate is strengthened and access to information is improving. No follow-up PEFA has been undertaken so far during the CAS period and formal progress on sector governance-as was envisaged in the CAS-can therefore not be registered. During the CAS period, there has, however, been an increase in the level and intensity of public debate around sector governance issues and enhanced transparency and accountability can be seen in various sectors and relating to budget execution. Furthermore, since 2008, the Ministry of Finance has issued and published - in newspapers - detailed instructions relating to the execution and control of the budget - including for public entities. The GOC has, in partnership with beneficiaries and civil society, established and organized local committees in provinces and departments that monitor projects financed from the national investment budget. Through the Governance Partnership Facility-financed (GPF) governance program in Cameroon, five political economy studies have been undertaken (education, telecommunications, mining, forestry, health) - thereby exceeding the CAS objective of undertaking four such studies. The conclusions from these studies have been disseminated and discussed with a wide audience, including representatives from the press. The studies have also served as the base for six governance dialogues and debate forums-as envisaged in the CAS, which have benefited from multi-stakeholder participation and press coverage. A large-scale mining forum, held in May 2012, also opened up debate among all national stakeholders in the sector around sector governance issues, and facilitated access to international knowledge and best practice. Through political economy work and governance dialogues, sector governance issues have been unveiled, discussed, and potential solutions identified. The work has also fed into project work on the Bank side (e.g. mining, social safety nets, and telecoms operations). 6. CAS outcome 3: Improved demand-side governance and participation - Limited progress. The right to access to information legally exists in Cameroon since 1990, but actual access to information is still limited. Some laws and decrees are published on ministry websites and as per the CAS, the Finance Law and budget execution reports have been regularly published on Government websites as well as in the press. In spite of this, civil society organizations claim they meet strong resistance from public officials when requesting information. Formal progress cannot be registered on the CAS outcome indicators linked to improved demand-side governance and participation because the envisaged governance survey and a follow-up PEFA have not been undertaken. Still, Bank-led governance dialogues have been successful and spurred further public debate. The same is true for information and knowledge produced and disseminated by the Bank, including through the bi-annual Economic Updates. Information made available around the cost of fuel and food subsidies, for instance, has spurred a dialogue and debate between the main involved actors, including the trade unions, and government. For the involved non-government actors, the debate and dialogue is appreciated as it assures access to information and knowledge and can hence contribute to reducing tension and limiting misinterpretation. 27 7. Civil society organizations engaged and capacity was built through a Development Marketplace initiative. In 2011, a GPF-financed Development Marketplace initiative was launched in Cameroon, where 15 grassroots civil society organizations were chosen to receive funding for implementation of governance initiatives in the education, health and forestry sectors. The initiative has received high level of attention, with involvement from the respective sector ministries. Media coverage has also been high. Results and impact will be evaluated at project end in late 2012. The process for identifying the 15 winner initiatives was public and transparent, with the display and public discussion of 30 such initiatives. It involved officials, donors, the press, and civil society. CAS Strategic Theme One: Increasing Cameroon's Competitiveness 8. CAS Outcome 4: Increased access to and quality of infrastructure services - Good progress. Recent significant investments have been undertaken in the energy sector, with financing secured for and construction started at the Lom Pangar Hydropower Project (LPHP), Kribi Gas to Power Project, Memve'ele, and Dibamba over the last 12 months. Current installed generation capacity-less than 1,000MW-will increase by over 50 percent in the coming four years, and once finalized, these investments will result in a significant increase in the availability of lower cost electricity. These investments are important as the lack of reliable and low cost energy has been identified as one of the main restraints to increasing Cameroon's competitiveness and obstacles to doing business. Some delays in fulfilling indicators or achieving milestones have been experienced. This is often due to difficulties adopting or implementing reforms (customs, transport facilitation, rural electrification). Investments in road infrastructure are, however, strong and solid progress can be recorded. Likewise, in the energy sector, true progress can be demonstrated, particularly with regards to the adoption of an appropriate sector framework, and advances on the Lom Pangar Hydropower and Kribi Gas to Power Projects. 9. The World Bank Group is heavily engaged in the energy sector in Cameroon. An IDA partial risk guarantee of USD 82 million was provided for the Kribi Gas to Power project in November 2011, thereby allowing for local private lenders to contribute local currency financing to the project. In March 2012, USD 132 million in financing was approved for the Lom Pangar Hydropower Project (LPHP). An on-going energy sector development project has provided analysis and technical assistance in the development of the LPHP, but the project's main investment in rural electrification has been delayed. Progress in providing electricity to 2,300 villages by 2013-as envisaged in the CAS-is therefore also delayed, even though a Rural Energy Fund was established in 2009. A revised approach to rural electrification has now been agreed with the GOC and the project is being restructured accordingly. The Kribi Gas to Power project is due for commissioning by end 2012, and as such, the CAS target of supplying an additional 216 MW is expected to be achieved in early 2013. After some delays, electricity tariffs were reviewed and adjusted in May 2012. The IFC is also heavily involved in the energy sector, with support to AES Sonel, Dibamba and the Kribi Gas to Power Project. 10. High level of investments in the transport sector led to significant improvements in road conditions on major transit corridors. The GOC, with the assistance of a number of 28 international partners (IDA: CEMAC Transport Transit Facilitation Project", AfDB, EU, France, Spain, Japan, and Islamic partners) has focused a large proportion of its investments in the transport sector on the two transit corridors: Douala - N'Djamena and Douala - Bangui. As a result of this investment program, road conditions have improved considerably on the two corridors between 2007 and 2012: the length of roads in good condition between Douala and N'Djamena has increased from 40 to 65 percent and on the Douala - Bangui corridor from 53 to 67 percent. On rehabilitated sections of these corridors, the travel time has more than halved and a significant increase in traffic and economic development has been observed. In spite of this progress, the cost of transporting a 40-foot container between Douala and Bangui is currently about US$0.21 per ton per km-among the highest transport costs in Sub-Saharan Africa. While operational and transactional dwell times in Douala port have reached the CAS objective of 8.8 days, work still needs to be done to reduce the total dwell time in the port-currently at 19 days. As such, further reforms are needed to reduce transport prices charged to customers, improve customs procedures and customs data exchanges between Cameroon and its neighboring countries, computerize external trade procedures, and increase competition and transparency in the trucking industry. Delays are also observed in the rehabilitation of rail-track rehabilitation, where the rehabilitation of 125 km of rail-tracks foreseen in the CAS to be achieved by 2011 has not yet started due to a complex and contentious procurement issue. 11. While teledensity in Cameroon increases, competition within mobile telephony is still limited. The mobile telephony sector is characterized by high tariffs, primarily a result of limited competition in the sector (de facto duopoly). While a new telecommunications law was passed in 2010, as envisaged in the CAS, the GOC is yet to award a third mobile license to a private operator. While teledensity has significantly increased-from 28 percent in 2008 to 55 percent in 2012-the CAS target of 70 percent in 2013 will likely be missed. Lack of competition in the access to international submarine cables (Cameroon has currently access to one single international cable landing station) impedes the development of the broadband sector. Despite the adoption of secondary legislation for the newly passed telecommunications law that translates the CEMAC Directives for electronic communications services into the national legislation which is in line with good international practices, the ICT sector in Cameroon performs poorly when compared to regional benchmarks. 12. CAS Outcome 5: Improved business climate and investment in targeted value chains (agriculture, eco-tourism, and wood transformation) - Some progress. Agriculture is benefiting from increasing budget allocations - up 22 percent between 2010 and 2012. Increasing agricultural production is a main objective for the GOC and progress can be observed: The CAS target of an increase in rice yields in rehabilitated irrigated areas from 5.2 tons/ha in 2009 to 5.8 tons/ha in 2013 has already been achieved. 13. Delays in achieving results in eco-tourism and wood transformation. Regarding eco- tourism and wood transformation, no indicators or milestones were identified in the CAS, but were to be determined at the CAS mid-point. An IDA-financed value chains operation (USD 30 million, approved in June 2010) is the main Bank vehicle for engaging in these sectors. The 1 Originally a USD 147 million operation, the Bank's CEMAC Transport Transit Facilitation Project in Cameroon benefited from additional financing of U SD 150 million in 2009 and U SD 112 million in 2011. 29 project has suffered from implementation delays and will be restructured over the coming months to respond to current realities and the GOC's wish for support. 14. It is getting easier to start a business in Cameroon-but it still takes time. Cameroon's ranking in the 2012 Doing Business improved slightly from 165th to 161st - essentially on the back of an OHADA level improvement on the indicator "Getting Credit", and to a lesser degree as a result of the improvement of the indicator "Starting a business". As was the case in 2009, it still takes 93 days to register a property in Cameroon-far from the CAS target of 40 days in 2013. There have also been delays in the creation of an online inventory of legal taxes and licenses-foreseen to be achieved by 2011. Further reforms in the sector will be supported through the Cameroon Business Forum. 15. CAS Outcome 6: Improved transparency, equity and sustainability in the use of natural resources - Some progress. Despite Cameroon's geological wealth-iron ore, bauxite, and nickel-cobalt deposits-the mining sector does not presently contribute significantly to the country's economy or development. A recently approved (December 2011) IDA technical assistance operation will accompany the GOC in the development of the mining sector, aiming to assure a transparent and sound development of the sector - building on international best practice and lessons learned. As outlined in the CAS, the operation will support the development of a strong mining sector cadaster, where an assessment has already been completed. The GOC shared a draft mineral strategy with partners and stakeholders during the GOC-Bank organized mining sector forum in May 2012. 16. The areas classified as permanent forests and protected areas in Cameroon have increased and there is an increase in the area of natural forests and plantations under sustainable forest management. Over the past two decades, the Ministry of Forest and Fauna (MINFOF) has significantly expanded the total area classified as permanent forest, reaching 8.72 million hectares in 2011. A further 3.12 million hectares have been declared as permanent forest, but are pending classification and an additional 1.5 million hectares are planned to become permanent forest. Also part of this permanent forest estate, the protected area network, has been expanded to protect some of Cameroon's rich biodiversity, and now covers over 3.7 million hectares accounting for around eight percent of the country's land area. In 2011, the area of natural forests and plantations under sustainable forest management in Cameroon reached 4.7 million hectares, one year ahead of and above the CAS target of 4.5 million hectares in 2012. Progress has been made on the number of forest management units under forest management plans-reaching 90 in December 2011 and thereby exceeding the CAS target of 75. Often described and referred to as a sector with deep governance challenges, efforts are being made to "clean up" the sector, in particular through the EU supported Forest Law Enforcement Governance and Trade (FLEGT) initiative. 17. Environment and social management in Cameroon is improving. The number of energy facilities that have adopted and are fully compliant with environmental management plans is increasing - at 22 percent in 2011 - up from zero in 2009 (CAS target is 70 percent by 2013). The CAS target for areas under sustainable land management practices has been far exceeded - currently at 88,448 hectares compared to a target of 10,000 hectares in 2013. 30 18. Climate change. The Bank is providing support to Cameroon to prepare a Readiness Preparation Plan. On the hydropower side, climate change work has commenced, financed from the TFESSD. It was foreseen that the on-going energy sector development project would finance off-grid rural renewables, but due to no progress in this area, after four years of implementation, this component was dropped as part of the project restructuring. CAS Strategic Theme 2: Improving Service Delivery 19. Access to good quality, reliable, and affordable social services remains low. With poverty levels around 40 percent and only moderate progress towards achieving some of the MDGs, Cameroon is faced with significant challenges to provide the population with reliable, good quality, and affordable services. While the DSCE acknowledges the importance of investing in human development, resource allocations and the importance accorded to proper service delivery are not adequate to address current insufficiencies and regional disparities. 20. CAS Outcome 7: Improved quality and efficiency of the education system - Some progress. Access to primary education in Cameroon is close to universal. The increase in the number of contract teachers, to 37,000, has contributed to assuring this high level of access. Furthermore, completion rates in primary education have increased, to reach an estimated 74 percent for the 2010/2011 school-year, thereby exceeding the CAS target of reaching 70 percent. In spite of these successes, access to quality basic and post-basic education remains a significant challenge in Cameroon, especially for the poorest and most vulnerable. Children from the poorest households are, for instance, 40 times less likely to attend upper secondary school (lyc6e) than children from the richest households. This may be explained by the observation that while primary education is, in principle free of charge, most schools rely on the contribution of parents for the running of the school - some schools having yearly operating allocations that only amount to around USD 100. 21. Distribution of resources is unequal as are education outcomes: there is a large bias in favor of the most developed regions in terms of classrooms and teachers allocation, while contract teachers (62 percent of the teaching force and increasingly female) and community teachers are more prevalent in the poorest regions. The contract teachers program implemented since 2007 and supported by the EFA-FTI has achieved the CAS milestone target of reaching 37,000 teachers by 2011. It has also had some success in reducing disparities. The program has, however, not contributed to decreasing the randomness in teacher allocation - as was foreseen in the CAS - with a degree of randomness increasing from 45 percent in 2009 to 48 percent in 2011 (against a CAS target of 25 percent)16. This development also points to important governance and transparency issues in the education sector, which hamper the development of the sector and the ability to achieve real improvements in education outcomes. 22. CAS Outcome 8: Improved access and quality of health services - Limited progress. With a few exceptions, such as immunization, most key indicators of maternal and child health and nutrition have improved only slightly-or stagnated-since 1990 and there is little progress 16 Randomness of teacher deployment/allocation refers to the dispersion of teachers across the regions of the country. The indicator is calculated as the regional variation from the country mean. In statistical terms it is calculated as 1-R2. Perfect allocation across the country would be along the country mean and would statistically be equal to 1. 31 towards achieving the MDGs. Life expectancy has decreased by four years during the last ten years, dropping from 55 to 51 years17. Under-five mortality in Cameroon reached 148 per 1000 live births in 2004 - up from 144 in 1991. Since then, there has, however, been a decrease in the under-five mortality rate: at 122 per 1000 live births in 2011 18. Maternal mortality has remained high, only slightly decreasing from 680 deaths per 100,000 live births in 1990 to 600 deaths in 2008. Although a relatively large proportion of women receive some prenatal care, a much smaller proportion-at 64 percent-benefit from skilled assistance at birth. Up from 63 percent in 2006, there is a risk the rate targeted in the CAS-66 percent in 2013-will not be achieved. And while DPT3 coverage has increased from 67 percent in 2004 to 70 percent in 201119, further efforts are needed to reach the target of immunizing 85 percent of children under one year of age against DPT3. Improving access to critical child health services (immunization, diarrhea treatment, nutrition services and insecticide treated nets) and maternal health services (quality anti-natal care, delivery care and contraception) is a priority if maternal and child health are to improve in Cameroon. Furthermore, such indicators are heavily influenced by the level of access to social services, such as water and sanitation. 23. Progress in the Bank financed health sector SWAp has been slow. This is due to the inability to use the planed performance-based financing approach under the original structure of the project. As a result, the project was restructured in July 2011 and implementation pace is picking up, with already positive results documented on the ground. The contracts with all four purchasing agencies have been signed. 24. CAS Outcome 9: Improved access to basic infrastructure and social safety nets - Good progress. Access to sanitation in Cameroon is low and access to sewerage virtually inexistent at 1.8 percent. In 2010, access to improved sanitation was 56 percent for urban populations and estimated at 25 percent in rural areas 20. As for other social indicators, these national figures hide disparities across the country. The lowest access rates are in the North and the North-West regions - both below 10 percent. 25. Access to urban and rural infrastructure has improved over the CAS period with most of the CAS indicators and milestones already achieved: about 200,000 additional people are benefiting from improved roads and drainage, more than 7.2 million people having access to improved water supply, more than 37 km of drainage has been built and is functioning, and about 80,000 new piped household connections have been made over the last years. Regarding rural infrastructure, progress towards achieving CAS levels for improved access to education and health facilities are on track. The level of access to an improved water source envisaged in the CAS has been exceeded - currently at 219,824 people - against the CAS figure of 208,000 by 2013. 26. While there are no well-targeted or comprehensive social safety nets programs in Cameroon, the Bank has worked with the GOC to lay the ground work for the development of such a system. To date, rigorous analytical work has been undertaken on 17 World Health Organization, 2011. World Health Statistics. Geneva 18 Demographic and Health Surveys, INS/Cameroon and Macro, International 19 Using Demographic and Health Survey (DHS) data 20 UNICEF/WHO Joint Monitoring Program 32 poverty and vulnerability, the landscape of existing safety net programs, and the feasibility to reform current mechanisms to better transfer resources to the poorest. Moreover, a Government funded and operated pilot initiative for the use of cash transfers is under development. The introduction of such a system may also be an important mitigating factor in case of a possible decision to reduce general fuel and food subsidies, which, in addition to weighing heavily on the national budget, are deemed regressive and not benefiting the poorest and most vulnerable. 27. Decentralization is one of the tools used by authorities to improve service delivery. The Bank's engagement to build local capacity and contribute to local development has led to remarkable results. Supporting the second phase of the on-going local development project (PNDP), now currently covering all ten regions of Cameroon, 162 communal development plans have been approved and 280 sub-projects are under implementation. The ongoing Urban and Water Development Support Project (PDUE) provides municipal management tools, training, and technical assistance to the municipalities to improve planning, programming, maintenance management, as well as the mobilization and utilization of local financial resources. PDUE- financed city development contracts hold municipalities responsible for the choice and financing of a set of actions to be carried out within the framework of a program by contracting interventions. 33 Annex 3: Revised CAS Outcomes, Indicators, and Milestones CAS Outcome Original CAS Outcome Revised or Additional CAS Original CAS Milestones Revised or Additional CAS SIndicators Outcome Indicators Milestones CAS Foundation: Governance 1. Enhanced Scope of the legislature scrutiny Revised indicator: Capacity building program for Dropped transparency and of the annual budget law. (PI- Scope of the legislature scrutiny National Assembly Commission efficiency in 27i) of the annual budget law. (PI- for Finance and Budget public financial Baseline: C in 2007 27i) prepared by 2011 management Target: B in 2012 Baseline: C in 2007 Target: B in 2013 Expenditure processes mapped Milestone revised: and proposals for streamlining Expenditure processes mapped Completeness of the financial Dropped prepared by 2011 and proposals for streamlining statements (in French, Loi de prepared by 2012 R6glement) (PI-25 i) Baseline: D in 2007 New Decree on General Milestone revised: Target: B in 2012 New indicator: Accountancy signed and New Decree on General Revision of the PFM legal effective by 2012 Accountancy signed and framework in line with CEMAC effective by end 2012 PFM Directives issued on December 2011 achieved by Cameroon achieves EITI Milestone revised: end 2013 and applied in 2014 validation by 2011 Cameroon achieves EITI validation by August 2013 2. Improved Availability of information on Revised indicator: 4 Political Economy Analysis No change sector governance resources received by service Availability of information on Reports produced by June 2012 focused on delivery units (PEFA PI-23) resources received by service transparency and Baseline: D in 2007 delivery units (PEFA PI-23) At least 6 Governance No change accountability Target: B in 2012 Baseline: D in 2007 Dialogues held by June 2012 Target: B in 2013 Annual Reports on procurement No change Contracts above threshold Dropped activities in the 5 selected procured through open ministries available for each competition, in selected year, from 2010 ministries (Health, Education, Agriculture, Public Works, Finance) Baseline: TBD in 2010 audit Target: 40% over baseline in 2012 34 CAS Outcome Original CAS Outcome Revised or Additional CAS Original CAS Milestones Revised or Additional CAS Indicators Outcome Indicators Milestones Percentage change of public Dropped awareness about governance issues in targeted sectors (Governance Survey) Baseline: TBD in first Survey Target: 25% increase 3. Improved Public access to key fiscal Revised indicator: Release of semi-annual budget Revised milestone: demand-side information (PEFA PI--10) Public access to key fiscal reports on available media Release ofsemi-annual budget governance and Baseline: B in 2007 information (PEFA PI--0) every 3 months (government reports on available media participation Target: A in 2012 Baseline: B in 2007 websites, national newspapers) every 3 months (government Target: A in 2013 by 2010 websites, national newspapers) every yearfrom 2010 - 2014 Percentage of respondents Dropped aware of civil society work for PETS2 for education and health No change governance (Governance reports disseminated and Survey) discussed in four regions by end Baseline: TBD in Governance of 2012 Survey Target: 25% increase Annual Reports on procurement No change activities in the 5 selected Level of perceived Dropped ministries released each year, collaboration and coordination from 2010 on governance issues in civil society organizations 20-40 civil society initiatives No change (Governance Survey) are displayed and discussed Baseline: TBD in Governance publicly with donors, officials, Survey medias and citizens Target: 25% increase New indicator: Additional milestones: Establishment of a free online 12 CSOs successfully communications and implemented DMfunded information sharing platform projects (ie achieved set results) for civil society organizations by end 2012 by 2014 (Yes/No) Involvement of civil society in the establishment of a sector- specific (mining) accountability platform by end 2013 35 CAS Outcome Original CAS Outcome Revised or Additional CAS Original CAS Milestones Revised or Additional CAS Indicators Outcome Indicators Milestones CAS Strategic Theme One: Increasing Cameroon's Competitiveness 4. Increased Enerly: Enery: access to and Electrified villages (grid and Indicator revised: Setting up a financing and No change quality of off-grid) in targeted areas Electrified villages (grid and planning mechanism for rural infrastructure Baseline: 2,100 in 2008 off-grid) in targeted areas energy (Rural Energy Fund) by services Target: 2,300 in 2013 Baseline: 2,100 in 2008 2010 Target: 2,300 in 2014 A long term least cost Milestone revised Electricity supplied from Kribi Indicator revised: development plan for the sector A long term least cost gas to power project Electricity supplied from Kribi adopted by 2011 (Yes/No) development plan for the sector Baseline: 0 MW gas to power project adopted by 2013 (Yes/No) Target: 216MW hy 2012 Baseline: 0 MW Target: 216MWhby QI 2013 Satisfactory electricity tariff No change review by 2011 (Yes/No) Loi Pangar Hydropower No change Project activities in accordance with international best practice technical, environmental and social standards every year between 2010-2013 (Yes/No) Start of construction of Kribi No change gas in 2010 Transport: Transport: Douala port dwell time for main No change 8 km of Mbere - Ngaounde No change importers section rehabilitated by 2011 Baseline: 10.6 days in 2009 Target: 8.8 days in 2013 2 bridges rehabilitated by 2011 No change Average transit time for imports No change Automated transit system No change from the exit at the port of operational by 2011 Douala - to N'Djamena Batchenga Ka'a railway Milestone revised: Baseline: 14.4 days in 2009 rehabilitated (125 km) by 2011 Batchenga Ka'a railway Target: 12 days in 2013 rehabilitated (125 km) by end - to Bangui 2013 36 CAS Outcome Original CAS Outcome Revised or Additional CAS Original CAS Milestones Revised or Additional CAS Indicators Outcome Indicators Milestones Baseline: 12 days in 2008 30 train coaches purchased for Milestone revised: Target: 8 days in 2013 Additional indicator: passenger service by 2011 30 train coaches purchased for Reduction in the total dwell passenger service by end 2012 time in the Douala port Baseline: 19 days in 2011 100 km of rural roads Milestone revised: Target: 14 days in 2013 rehabilitated by 2011 (Ag. 100 km of rural roads Comp. Project) rehabilitated by end 2013 (Ag. Comp. Project) Telecommunications: Telecommunications: Total teledensity (active fixed Indicator revised: New legislation for Electronic No change and mobile subscribers per 100 Total teledensity (active fixed Communications adopted by inhabitants) and mobile subscribers per 100 end 2010 Baseline: 28.1 in 2008 inhabitants) Target: 70 in 2013 Baseline: 28.1 in 2008 Award a new mobile license to Milestone revised: Target: 70 by end 2013 a private operator by 2011 Award a new mobile license to a private operator by end 2012 Average monthly price of Dropped wholesale international capacity Existing fiber-optic network Dropped link from Yaounde to European laid along the Chad-Cameroon hub (El) oil pipeline in used to connect Baseline: 6,000 USD in 2008 Chad (by 2011) and CAR (by Target: 1200 USD in 2013 2012) Internet Servers registered Milestone revised: under the Country Top-Level Internet Servers registered Domain (ccTLD) increased under the Country Top-Level from 1,100 in 2008 to 100,000 Domain (ccTLD) increased in 2011 from 1,100 in 2008 to 100,000 by end 2012 5. Improved Auriculture: Alzriculture: business climate Average rice yields in No change Targeted irrigation area Milestone revised: and investment in rehabilitated irrigated areas rehabilitated increased from 0 Targeted irrigation area targeted value Baseline: 5.2 tons/ha in 2009 ha in 2009 to 5000 ha by 2011 rehabilitated increased from 0 chains Target: 5.8 tons/ha in 2013 ha in 2009 to 5000 ha by end (agriculture, eco- 2013 tourism, and wood Targeted Agriculture Producer No change 37 CAS Outcome Original CAS Outcome Revised or Additional CAS Original CAS Milestones Revised or Additional CAS Indicators Outcome Indicators Milestones transformation) Organizations engaged in economic partnerships increased from 0 to 400 by 2011 Producer Organizations Milestone revised: receiving support services Producer Organizations through APEX organizations receiving support services increased from 0 in 2009 to 200 through APEX organizations in 2011 increased from 0 in 2009 to 200 by end 2013 Eco-tourism: Eco-tourism: TBD Dropped TBD Dropped Wood transformation: Wood transformation: TBD Dropped TBD Dropped Investment climate: Investment climate: Days to register a property Indicator revised: On-line inventory of all legal Milestone revised: Baseline: 93 in 2009 Days to register a business taxes and licenses established On-line inventory ofall legal Target: 40 in 2013 Baseline: 34 in 2009 by 2011 (TBC as part of new taxes and licenses developed by Target: 9 by end 2013 operation) end 2012 6. Improved Minin2: Minin2: transparency, Mining title system in Indicator revised: Mining Cadastre Assessment No change equity and compliance with established Mining titlesystem in completed by 2011 sustainability in procedures for transparency and compliance with established the use of natural efficiency (Yes/No) proceduresfor transparency Artisanal and Small-Scale No change resources Baseline: No system in place and efficiency (Yes/No) Baseline assessment of (2009) Baseline: No system in place Cameroon completed and Target: Yes by 2013 (2009) results shared with stakeholders Target: System in place by 2014 by 2011 Mineral Strategy developed by Milestone revised: 2011 Mineral Strategy developed by end 2012 38 CAS Outcome Original CAS Outcome Revised or Additional CAS Original CAS Milestones Revised or Additional CAS Indicators Outcome Indicators Milestones Forestry and Protected Areas: Forestry and Protected Areas: Increase in area of natural No change 4.5 M ha of natural forests No change forests and plantations under gazetted by 2011 Sustainable Forest management Baseline: 3.5 M ha ofnatural Plan for contracting out No change forests and 0 ha ofplantations management of plantations to in 2009 local community, local Target: 4.5 M ha ofnatural government or private sector forests and 5,000 ha of agreed upon by 2011 plantations in 2012 At least 75 Forest Management No change Units under Forest Management Plan by 2011 Environment and social Environment and social mana2ement: mannement: Area under SLM practices in No change Sustainable Land Management Milestone revised: targeted zones (SLM) Micro projects Sustainable Land Management Baseline: 1000 ha by 2009 implemented increased from (SLM) Micro projects Target: 10,000 ha by 2013 210 in 2009 to 240 by end 2011 implemented increasedfrom 210 in 2009 to 240 by end 2012 Facilities for which annual Indicator revised: environmental performance Facilitiesfor which annual Landscape Use Management Milestone revised: report certified as compliant by environmental performance Plans established increase from Landscape Use Management MinEP with EMP report certfied as compliant y 5 in 2009 to 10 by 2011 Plans established increasefrom Baseline: 00 in 2009 MinEP with EMP Sin 2009 to l0by end 2013 Target: 70% in 2013 Baseline: 0 in 2009 Target: 70% by end 2013 45 EAs for new investments Milestone revised: reviewed by InterMinisterial 45 EAsfor new investments Committee yearly between reviewed by InterMinisterial 2009-2013 Committee yearly between 2009-2014 80o of existing energy sector Milestone revised: facilities with all environmental 80% of existing energy sector and social impacts identified facilities with all environmental through audit process by 2011 and social impacts ident fred MinEPwithEMPi9through auditprocess by end 39 CAS Outcome Original CAS Outcome Revised or Additional CAS Original CAS Milestones Revised or Additional CAS Indicators Outcome Indicators Milestones 2013 CAS Strategic Theme Two: Improving Service Delivery 7. Improved Completion rate in primary Revised indicator: Increase in the number of No change quality and education Completion rate in primary contractual teachers to 37,000 efficiency of the Baseline: 64% by 2007 education by 2011 education system Target: 70% by 2012 Baseline: 64% by 2007 Target: 80% by 2013 - of whom Analytical tools (CSR update Milestone revised: at least 45% are female and sector simulation models) Analytical tools (CSR update developed and applied by 2011 and sector simulation models) Efficiency in the distribution of Revised indicator: developed and applied by end teachers measured by a low Efficiency in the distribution of 2013 degree of randomness in teacher teachers measured by a low allocation degree of randomness in Timely and accurate annual Milestone revised: Baseline: 45%o by 2009 teacher allocation statistical reports produced by Timely and accurate Target: 25% by 2012 Baseline: 45% by 2009 2011 preparation Of annual statistical Target: 25 in 2013 reports produced by end 2013 School micro-projects using a No change participatory approach are developed and implemented by the communities in 43 ZEP by 2011 8. Improved Immunization DPT3 under-i Revised indicator: Pregnant women with at least 3 Milestone revised: access and quality (A) Immunization DPT3 under-] prenatal visits to anti-natal Pregnant women with at least 3 of health services Baseline: 80.6%o in 2006 (o%) (DHS data) clinic increase from 60.4% in prenatal visits to anti-natal Target: 85%o in 2013 Baseline: 67%o in 2004 2004 to 65%o in 2011 clinic increase from 60.4%o in Target: 73%d in 2013 - of 2004 to 65a ay end 2012 whom at least 500 areafemale Facilities that experience drug Milestone revised: Births attended by skilled No change stock-out of more than a total of Percentage of 15 tracer drugs professional 3 days a month for all tracer available in targeted health Baseline: 63%o in 2006 (core) drugs) out together facilities on the day of the visit Target: 66%d in 2013 decreased by 25a in 2011 in 2013 Percentage of districts scoring Milestone revised: at least 2 in the system Percentage of health facilities 40 CAS Outcome Original CAS Outcome Revised or Additional CAS Original CAS Milestones Revised or Additional CAS Indicators Outcome Indicators Milestones performance/quality of care achieving an average score of index (based on 17 tracer 60% of the quality index of categories of SQI) up from 0 in services as measured in RBF in 2008 to 10% in 2011 the targeted areas in 2013 9. Improved Urban infrastructure: Urban infrastructure: access to basic People benefiting from all-year Indicator revised: Increased length of drainage No change infrastructure and access to transportation and People benefitingfrom all-year network functioning properly social safety nets improved sanitary conditions in access to transportation and from 5 km in 2007 to 37 km by targeted urban areas improved sanitary conditions in 2011 Baseline: 35,000 in 2009 targeted urban areas Target: 290,000 in 2012 Baseline: 35,000 in 2009 50,000 (IDA) sed 55,000 (OA) Milestone revised: Target: 290,000 by end 2013 - additional connections of piped 50,000 (IDA)+ 55,000 (OBA) of whom at least 500 are household water connections by additional connections ofpiped female 2011 household water connections by end 2012 Additional people with access Indicator revised: to improved water supply Additional people with access to 700 additional community Milestone revised (IDA--13A) improved water supply water points constructed by A total of]1,200 water points Baseline: 6.9 million in 2009 (IDA+ OBA) 2011 constructed by end 2013 Target: 8.3 million in 2012 Baseline: 6.9 million in 2009 Target: 8.3 million by end 2013 - of whom at least 50% are 6 City development contracts by Milestone revised: female 2011 6 City development contracts by end 2012 Increased share of municipal Milestone revised: budget allocated to maintenance Increased share of municipal of investments from 1 in 2009 budget allocated to to 100 in 2011 maintenance of investments from 1%o in 2009 to 1000 by end 2012 Rural infrastructure: Rural infrastructure: People in project area with Communes with priority No change improved access to: investments reflected in the communal development plans 41 CAS Outcome Original CAS Outcome Revised or Additional CAS Original CAS Milestones Revised or Additional CAS Indicators Outcome Indicators Milestones Education facilities Indicator revised: and budgets up from 155 in Baseline: 78,000 in 2009 Education facilities 2009 to 220 in 2011 Target: 103,000 in 2013 Baseline: 78,000 in 2009 Target: 103,000 in 2013 - of Classrooms built/rehabilitated No change whom at least 50% are female increased from 232 in 2009 to 500 in 2011 Health care facilities Indicator revised: Baseline: 66,000 in 2009 Health care facilities Improved community water No change Target: 196,000 in 2013 Baseline: 66,000 in 2009 points constructed in rural areas Target: 196,000 in 2013 - of increase from 262 in 2009 to whom at least 50% are female 600 in 2011 Improved water source Indicator revised: Health facilities constructed, Milestone revised: Baseline: 92,000 in 2009 Improved water source renovated or equipped increase Health facilities constructed, Target: 208,000 in 2013 Baseline: 92,000 in 2009 from 50 in 2009 to 100 in 2011 renovated or equipped increase Target: 208,000 in 2013 - of from 50 in 2009 to 100 by end whom at least 50% are female 2013 Social safety nets: Social safety nets: People covered by targeted Indicator revised: Safety nets strategy approved in Milestone revised: safety net programs (number) Number of households with 2011 Safety Nets Assessment, Safety Baseline: TBD - Based on access to safety nets created by Nets Feasibility Study, and current estimates from the the project Analysis of General Subsidies inventory Baseline: 0 in 2012 undertaken by end 2012 Target: TBD Target: 15, 000 by 2014 Safety net pilot program started No change in 2012 42 Annex 4: Planned vs Actual Lending and AAA Program and Pipeline Lending is in normal text, AAA in italics. For new lending, indicative/actual IDA amounts are in parenthesis. For AAA, TF source is in parenthesis, if not financed by Bank budget. Sector Planned delivery during CAS period Proposed new deliveries during CAS period Governance Public sector/ Transparency and Accountability TAL (FY08) - on- Country Economic governance going (FY13 closure) Memorandum (FY13) Transparency and Accountability TAL Additional Economic Policy Notes Financing (FY13) - dropped (FY13 + 14) Governance Partnership Facility (TF) Facility - PEMFAR/PEFA (FY14) Sector and Demand side Governance (FY10) - on- going Customs Integrity TA phase 2 (FY14) - under Debt Management Performance Assessment (FY10) development Anti-Money Laundering Assessment TA (FYI 0/11) - Governance Partnership delivered Facility - Sector and Demand side Governance - Stolen Asset Recovery (StAR) Support - delivered extension (FY13) EITI - support to validation - on-going ONECCA TA (IDF) (FYI 0/11) - on-going CAA TA (IDF) (FY1/12) - on-going Fiscal Space for Decentralization (GPF) (FY11) - delivered FY12 Pro-business Fiscal Policies (FY12) - dropped Budget Transparency Initiative (TF) - on-going Public Investment Diagnostic (TF) - dropped Customs Integrity TA (FY10) - delivered PETS health, education - dropped 43 Increase competitiveness Energy Energy Sector Development SIL (FY08) - on-going Energy TA/Policy Advice (FY1 4) Kribi PRG (FY10) (US$82M) - delivered FY12 (US$82M) Sanaga River Basin Management (FY12) - Lom Pangar Hydropower Project SIL (FY11) delivered (US$75-1OOM) - delivered FY12 (US$132M) Regional Energy TA - dropped Impact of Climate Change on Hydropower Potential (FY12) - on-going PPIAF Grant Regulatory Model TA- dropped Telecom Central Africa Backbone APL lA (FY10) (US$3M- 9M) - delivered FY10 (US$10M) Central Africa Backbone APL IB (FY11) (US$5M- 15M) - dropped PPIAF - Technical Study to Deploy - on-going IDF CEMAC ICT legislation and M&E (FY09) - Transport CEMAC Transport Transit Facilitation SIL (FY07) - Road Safety TA (FY13) - on- on-going going CEMAC Transport Transit Facilitation SIL Douala - N'Djamena Additional Financing (FY10) - delivered (FY10) Transport Corridor SIL (US$150M) and (FY11) (US$112M) (FY13) (US$70M) - under consideration West and Central Africa Regional Air Safety APL (FY06) - on-going Agriculture Agriculture Competiveness Project SIL (FY09) - on- Agriculture ESW (FY13) going Agriculture SIL (FY14/15) Agriculture Competiveness Project SIL Additional (US$80M) Financing (FY13) - dropped Dyke Rehabilitation SIL Regional Fisheries SIL - dropped (FY13) - under consideration Regional Fisheries ESW - delivered FY12 44 Environment Forestry and Environment DPO (FY06) - delivered Drivers ofDeforestation in the Congo Basin (FY13) GEF Forestry and Environment DPL (FY06) - delivered GEF Regional Coordination of Sustainable Forest GEF Agro-Pastoral Land Management (FY06) - Management in Congo Basin delivered (FY12) - on-going Ngoyla Mintom (GEF) (FY10) (US$3.5M) - on- Co-generation using Wood going - FY12 Board approval (US$3.5M) Waste (TF) (FY12) - on- going Protected Areas ESW (FY11) - dropped Protected Areas SIL (FY12) (US$50M) - dropped GEF Enhancing Institutional Capacity for REDD in Congo Basin (FY12) - on-going Regionalfisheries (FY11) - delivered FY12 Regional fisheries SIL (FY11) (US$1OM-30M) - dropped Mining Mining Sector TAL (FY12) (US$15M) - on-going (US$30M) IDF Mining Sector - delivered Investment Competitive Value Chains SIL (FY10) (US$40M) - Climate on-going (US$30M) Competitive Value Chains SIL additional financing (FY12) (US$1OM) - dropped CEMAC Regional Institutional Support (FY09) (US$50.0) - on-going Improve Service Delivery Education Education Sector Development Capacity Building GPE Grant (FY13) Project SIL (FY05) - on-going (US$52M) EFA-FTI grant - delivered Skills Development Study (FY12) -pushed to FY14 Technical and Vocational Education Training (TVET) Study - dropped Yaounde Cities Alliance (FY11) - on-going Decentralized Service Delivery ESW - PE study delivered FY11 Health Health Sector Support SWAP (FY08) - on-going Health Sector Support 45 SWAP Additional Financing Health Country Status Report (FY11) -pushed to (FY14) (USD20M) - under FY12/13 consideration Local Community Development Program Support APL Development (FY09) - on-going and Rural Infrastructure Community Development Program Support APL III (FY13/14) (US$40M) - under consideration Water/Urban/ PDUE SIL (FY07) - on-going Douala Cities Alliance Sanitation (FY11) - delivered PDUE SIL Additional Financing (FY10) (US$29.7M) - delivered FY10 (US$29.7M) Sanitation Strategy (FY12) - delivered Urban Sanitation APL (FY12) (US$50M) - delivered (urban + rural) FY11 (US$30M) PPIAF Support to Water Sector Reform (FY14) Yaounde Cities Alliance (FY11) - on-going GPOBA Water (TF) - on-going Social Social Protection Strategy (FY11) - under Safety nets pilot (TF) Protection development (FY13) - under preparation Safety nets assessment - delivered Safety Nets Feasibility Study Safety Nets SIL (FY13) (US$15M) - under (FY11) - delivered preparation (US$50M)21 Analysis of General Subsidies (FY12) - delivered 21 Original planned CAS amount for the operation was USD 15M, while the operation is currently planned for USD 50 M. 46