Public Disclosure Copy The World Bank Implementation Status & Results Report Fiscal Consolidation and Inclusive Growth DPO (P163657) Fiscal Consolidation and Inclusive Growth DPO (P163657) AFRICA | Cameroon | Macroeconomics, Trade and Investment Global Practice | IBRD/IDA | Development Policy Lending | FY 2018 | Seq No: 1 | ARCHIVED on 10-May-2019 | ISR34556 | Implementing Agencies: Ministère de l’économie, de la Planification et de l’aménagement du Territoire., Ministère de l’économie, de la Planification et de l’aménagement du Territoire. Key Dates Key Project Dates Bank Approval Date:20-Dec-2017 Effectiveness Date:22-Dec-2017 Planned Mid Term Review Date:-- Actual Mid-Term Review Date:-- Original Closing Date:31-Dec-2018 Revised Closing Date:31-Dec-2018 Program Development Objectives Program Development Objective (from Program Document) The Operation will help Cameroon adjust to the oil price shock by: (i) supporting structural reforms to reduce the fiscal deficit while protecting the poor; and (ii) strengthening competitiveness of the non-oil economy. Board Schedule Comments PHRPDODEL Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO  --  Moderately Satisfactory Overall Implementation Progress (IP)  --  Moderately Satisfactory Overall Risk Rating  --  High Implementation Status and Key Decisions The first fiscal consolidation and inclusive growth DPF was designed to assist the authorities in the implementation of structural reforms that would restore fiscal stability while improving competitiveness and protecting the poor through fiscal adjustment. A total of ten policy actions were supported by DPO 1. The following summarizes progress achieved under each of the pillars: Pillar 1: Improving fiscal sustainability and public-sector management Satisfactory progress has been made to assess and make public the level and composition of tax expenditures and the implementation of the first phase of a program of joint audits between tax and customs authorities in the cement, forestry, and telecommunication sectors. The report on indirect tax expenditure provided a specific action plan to rationalize tax expenditures with a medium-target of FCFA 314 billion and the joint audits provided revenue gains of FCFA 2.6 billion in 2017. The joint audits program continued in 2018. Satisfactory progress has been made in the introduction of a transparent and equitable payroll and human-resource management. DPO1 supported the implementation of disciplinary proceedings of about 1,800 irregular cases identified through the civil servant census in 2016. The Government initially identified about 3,000 irregular cases at the time of census, from which 1,200 were confirmed later as legitimate cases. 5/10/2019 Page 1 of 7 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Fiscal Consolidation and Inclusive Growth DPO (P163657) Satisfactory progress has also been made on the strengthening of the SOEs framework. In June 2017 the Parliament of Cameroon approved two organic laws on SOEs and Public agencies. The new laws separated commercial enterprises from public agencies with social objectives. They also lifted the requirement that SOEs comply with public procurement procedures, which had significantly hindered their competitiveness. Pillar 2: Enhancing competitiveness The Government has made progress to ensure the financial sustainability of all actors along the electricity value chain. The prior actions for the DPO1 supported the Government’s commitment to clear its arrears to Electricity utility ENEO, estimated at XAF 54 billion at end-August 2017 and to allocate budgetary funds towards this purpose. The payment plan signed between ENO and the Governments is implemented. The Government has also made progress on the improvement of the road maintenance and the efficiency of the Port of Douala. The 2018 Law of Finance ensured sufficient funding for road maintenance their availability in a dedicated account to ensure regular payment to road maintenance contractors; and (ii) a multi-year priority road maintenance program to be maintained in accordance to Output Performance Based Road contracts (OPBC) has been adopted. The National Port Authority increased the storage fee at the Port of Douala to discourage the use of the port as a storage facility and the Single Window for Foreign Trade Operations (GUCE) has extended the single form of trade operations to all phases of the international logistics chain (pre-clearance, take over, clearance, removal). Pillar 3: Improving social services and scaling up social protection The administrative coverage of the PBF program has been extended to 50% of the country’s region and special fiduciary arrangements have been set up to allow Regional Health Promotion Funds to purchase pharmaceutical products out of the CENAME. The Government has revised the textbook policy to increase the quality and availability of textbooks in primary and secondary schools through the adoption of new regulations instituting new principles guiding the new textbook policy and reorganizing the institutional framework for implementation of the textbook policy. These changes aimed to promote a deep change in the legal environment and subsequently in the textbook selection process, that contributed to high costs, poor quality and low availability Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance  High  --  High Macroeconomic  High  --  High Sector Strategies and Policies  Moderate  --  Moderate Technical Design of Project or Program  Moderate  --  Moderate Institutional Capacity for Implementation and Sustainability  Substantial  --  Substantial Fiduciary  High  --  High Environment and Social  Moderate  --  Moderate Stakeholders  Moderate  --  Moderate Other  --  --  -- Overall  High  --  High Results Results Indicators 5/10/2019 Page 2 of 7 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Fiscal Consolidation and Inclusive Growth DPO (P163657) PHINDIRITBL  Tax expenditures as a percent of GDP (Amount(USD), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 4.10 -- -- 3.10 Date 31-Dec-2016 -- 30-Apr-2019 31-Dec-2020 Comments Actual value not available. PHINDIRITBL  Average time between launch of bidding documents and signature of contract for contracts under MINMAP (Days, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 128.00 -- -- 90.00 Date 31-Dec-2016 -- 30-Apr-2019 31-Dec-2020 Comments Actual value not available. PHINDIRITBL Average time between launch of bidding documents and signature of contract for contracts outside MINMAP (Days, Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 225.00 -- -- 150.00 Date 31-Dec-2016 -- 30-Apr-2019 31-Dec-2020 5/10/2019 Page 3 of 7 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Fiscal Consolidation and Inclusive Growth DPO (P163657) PHINDIRITBL  Percentage of irregular/invalid HR and payment cases eliminated from the SIGIPES (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- -- 80.00 Date 31-Dec-2016 -- 31-Dec-2017 31-Dec-2020 Comments Actual Value not available. PHINDIRITBL  Percentage of SOEs publishing their audited annual financial reports (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 0.00 20.00 Date 31-Dec-2016 -- 30-Apr-2019 31-Dec-2020 PHINDIRITBL  Government’s arrears to ENEO. Baseline (2017) (Number (Thousand), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 54,000,000.00 -- 51,070,000.00 0.00 Date 31-Aug-2017 -- 30-Oct-2018 31-Dec-2020 Comments Actual Value not available. 5/10/2019 Page 4 of 7 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Fiscal Consolidation and Inclusive Growth DPO (P163657) PHINDIRITBL  Period of payment of invoices by the Road Funds to companies (Days, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 180.00 -- 50.00 90.00 Date 31-Dec-2016 -- 30-Apr-2019 31-Dec-2020 Comments The Bank team met with the RF, the ministry of public works, our transport specialist and the Treasury. The following milestones for the indicator were agreed upon. Period of payment of invoices by the Road maintenance to companies: Base line: 150 days (2016) Actual : 50 days (December 31, 2018) Target : 40 days ( 2020) These changes will be reflected in the Policy Matrix of second DPO expected to be approved by the Board by late June. PHINDIRITBL  Container dwell time at the Douala Port (Days, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 11.00 -- 19.00 7.50 Date 31-Dec-2016 -- 31-Dec-2018 31-Dec-2020 Comments A recent note from the Transport Department provided the average of 19 days for container dwell time at the Douala Port. It made also reference to the unfeasibility of achieving the 7.5 days target. It suggests that the upcoming DPO should change the baseline to 19 days and the target to 11 days. The DPO has a planned board date for June 2019. PHINDIRITBL  Percentage of births attended by skilled professionals in the three northern regions of Cameroon (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 37.60 -- 49.30 42.00 Date 31-Dec-2016 -- 31-Dec-2018 31-Dec-2020 5/10/2019 Page 5 of 7 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Fiscal Consolidation and Inclusive Growth DPO (P163657) PHINDIRITBL Proportion of health facilities under PBF contract with 100 percent of essential drugs in their checklist available during their quarterly evaluation in the 78 health districts already covered by PBF (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 13.00 -- 80.00 40.00 Date 31-Dec-2016 -- 31-Dec-2018 31-Dec-2019 PHINDIRITBL  Number of textbooks per student in primary school (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.07 -- 0.14 0.50 Date 31-Dec-2016 -- 31-Dec-2018 31-Dec-2020 PHINDIRITBL  Number of textbooks per student in secondary school (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.33 -- -- 0.66 Date 31-Dec-2016 -- 30-Apr-2019 31-Dec-2020 Overall Comments Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed Disbursed P163657 IBRD-88190 Closed USD 200.00 200.00 0.00 206.17 0.00 100% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date 5/10/2019 Page 6 of 7 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Fiscal Consolidation and Inclusive Growth DPO (P163657) P163657 IBRD-88190 Closed 20-Dec-2017 22-Dec-2017 22-Dec-2017 31-Dec-2018 31-Dec-2018 Tranches Restructuring History There has been no restructuring to date. Related Operations P166694-Second Fiscal Consolidation and Inclusive Growth DPO ,P168332-Third Fiscal Consolidation and Inclusive Growth DPO 5/10/2019 Page 7 of 7 Public Disclosure Copy