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CHAD
PUBLIC FINANCE REFORM SUPPORT PROGRAM
PROJECT COMPLETION REPORT
(PCR)
EGCF
February 2018
Translated Document
AFRICAN DEVELOPMENT BANK GROUP
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1
I BASIC DATA
A Report data
Report
date
Date of report 17 November 2017
Mission date (if field mission) From : N/A To : N/A
B Responsible Bank Staff
Positions At approval At completion
Regional Director Marlene KANGA Ousmane DORE
Country Manager Michel-Cyr DJIENA-WEMBOU Ali Lamine ZEINE (Ag)
Sector Director Jacob MUKETE Abdoulaye COULIBALY
Sector Manager Abdoulaye COULIBALY Abdoulaye COULIBALY
Activities Coordinator Amadou IBRAHIM Amadou IBRAHIM
Alternate Activities Coordinator N/A N/A
PCR Team Leader Amadou IBRAHIM
PCR Team Members
C Project data
Project name: Public Finance Reform Support Program
Project code : P-TD-KA0-005 ; P-TD-KA0-
006
Financing Instrument(s) No.(s) :
Project type : Budget Support Program Multisector
Country : Chad Environmental categorization (1-3): 3
Processing milestones – Bank- approved
financing only (add/delete rows depending on
the number of financing sources)
Key Events (Bank-approved
financing only)
Disbursement and closing dates
(Bank-approved financing only)
Financing source/instrument 1 : Grant
Protocol of Agreement No.2100155031216
Financing source/instrument 1 :
ADF Grant of UA 3.365 million
Financing source/instrument 1 :
ADF Grant
Date approved: 9 December 2015 Cancelled amounts: 0 Disbursement deadline: 30/11/2016
Date signed : 11 December 2015 Supplementary financing : NA Original closing date : 30/11/2016
Date of entry into force: 11 December 2015 Restructuring (specify date and amount
involved): NA
Revised(if applicable)disbursement
deadline: NA
Date effective for first disbursement:
11/12/2015
Extensions(specify dates):N/A Revised(if applicable)closing date: N/A
PROJECT COMPLETION REPORT (PCR) FOR PUBLIC SECTOR OPERATIONS
AFRICAN
DEVELOPMENT
BANK GROUP
2
Date of actual 1st disbursement: 22/12/2015
Financing source/instrument 2 : TSF Grant
Protocol of Agreement No. 5900155009401
Financing source/instrument 2 :
TSF Grant of UA 10 million
Financing source/instrument 1 : ADF
Grant
Date approved: 9 December 2015 Cancelled amounts: 0 Disbursement deadline: 30/11/2016
Date signed : 11 December 2015 Supplementary financing : NA Original closing date : 30/11/2016
Date of entry into force: 11 December 2015 Restructuring (specify date and amount
involved): NA
Revised(if applicable)disbursement
deadline: NA
Date effective for first disbursement:
11/12/2015
Extensions(specify dates):N/A Revised(if applicable)closing date: N/A
Date of actual 1st disbursement: 22/12/2015
Financing source (UA): Disbursed
Amount (UA) :
Percentage
disbursed (%):
Disbursed
Amount (UA) :
Percentage
undisbursed (%):
Financing source/instrument 1: ADF Grant 3 365 000 100 0 0
Financing source/instrument 2 : TSF Grant 10 000 000 100 0 0
World Bank 35 700 000 100 0 0
European Union 40 000 000 100 0 0
TOTAL 89 065 000 100 0 0
Executing and implementing agency (ies): Ministry of Finance and Budget
D
Management review and comments
Report reviewed by Name Date
reviewed
Comments
Country Manager Ali Lamine ZEINE
Sector Division Manager Abdoulaye COULIBALY
Regional Director (as Country Team Leader) Ousmane DORE
(Ag) Sector Director Abdoulaye COULIBALY
II Project performance assessment
A Relevance
1. Relevance of project development objective
Rating* Narrative assessment ( max 250 words)
4 PARFIP is a general budget support operation for the Republic of Chad and forms part of donors’ concerted efforts
through special financial support to assist Chad in its bid to address the dual shock of security and budget issues
(respectively, the terrorist threat in the sub-region and declining oil prices). The program's development objective is to
contribute towards promoting public financial management efficiency and transparency in Chad through two
complementary components: (i) improving domestic revenue mobilization; and (ii) enhancing public spending efficiency
and transparency. PARFIP’s deliverables are, notably: (i) broadening of the tax base for improved contribution of the
non-oil productive sector to tax revenue mobilization; (ii) enhanced public spending efficiency for improved social
development indicators; and (iii) enhanced budget process and public procurement transparency for greater equity in
public procurement access for private sector actors, and citizens' access to budget information. The program’s expected
outcomes are: (i) reduction of social inequalities; (ii) improved collection of non-oil domestic revenue; and (iii) enhanced
public spending efficiency and transparency.
*For all ratings in the PCR use the following scale: 4 (Highly satisfactory), 3 (Satisfactory), 2 (Unsatisfactory), 1 (Highly
unsatisfactory
3
2. Relevance of project design
Rating* Narrative assessment (max 250 words)
4 The Program is in line with the strategic objectives of the Country Strategy Paper 2015-2020, approved by the Board in
October 2015 through its second pillar, which focuses on support for reforms to enhance the effectiveness of public action
and attractiveness of the economic framework. It is also consistent with the operational objectives of the Bank's Ten-
Year Governance and Accountability Strategy, and with one of the Bank's new High five institutional priorities, namely
improving the quality of life of the people of Africa. Lastly, it supports the Governance Action Plan 2014 - 2018 (GAP
II) pillar on public sector management. The Bank is among Chad’s leading donors and a key partner in the dialogue on
reform policies in the areas of economic and financial governance and infrastructure development. The Bank's Field
Office plays the lead role in coordinating donors in the country. The Bank's comparative advantage also lies in its
continued institutional support to Chad while the country had not concluded economic and financial programs with
donors over the last ten years. The said support operations had covered various areas, notably: (i) economic and financial
governance (budget planning and programming, public procurement, etc.); (ii) implementation of the EITI and HIPC;
and (iii) improving the business climate and diversifying growth sources. The prior actions of the program are common
to the Bank, World Bank and European Union and have been consensually agreed upon with the Chadian authorities.
3. Lessons learned related to relevance )
B Effectiveness
1. Progress towards the project’s development objective (project purpose)
Comments
Provide a brief description of the Project (components) and the context in which it was designed and implemented. State the project
development objective (usually the project purpose as set out in the RLF) and assess progress. Unanticipated outcomes should also be
accounted for, as well as a specific reference to gender equality in the project. Indicative max length: 400 words.
PARFIP's development objective is to contribute towards strengthening the effectiveness of public spending and budgetary transparency.
The program comprises two components: (i) improving domestic resource mobilization and (ii) enhancing the efficiency and transparency
of public spending. PARFIP’s operational objective is to reduce the State budget’s extremely heavy reliance on oil sector revenues by
broadening the tax base and strengthening the capacity of financial authorities; improving public spending efficiency and transparency
by protecting social spending in budget execution and strengthening the public procurement regulatory framework ; accountability of the
State and access of citizens to budget information. It should be recalled that the six prior measures to the presentation of the program to
the Bank’s Board of Directors have actually been implemented. The said measures are: (i) adoption of the General Tax and Fiscal
Procedure Code by the Council of Ministers; (ii) validation of the general census of enterprises by the competent authority; (iii) adoption
of the new public procurement code; (iv) adoption of the 2013 Budget Review Law; (v) validation of the citizens budget format; and (vi)
validation of the final report on the civil service census and entry of its findings into the computerized payroll file. Additionally, the
following reforms have been implemented: (i) introduction of mobile scanners for goods verification: the two mobile scanners remain
inoperative owing to financing issues regarding their platform installation. The authorities are discussing with China on the financing of
the platform; (ii) the 2013 EITI report was produced by FAIRLINKS in December 2013 and validated in the technical workshop; (iii)
Key issues (max 5, add rows as
needed) Lessons learned Target audience
1. Synergy of donor interventions in
public sector reforms.
2. Need for technical assistance for
the implementation of the
reforms
1. The Agreement between partners providing Chad with
budget support for common prior actions has led to the
implementation of sensitive reforms that could not have been
undertaken by a single partner (e.g. adoption of the public
procurement Code).
2. The technical assistance provided by the Bank through
several institutional support operations facilitated the
implementation of several reform measures in Chad. Given
the Chadian administration’s under-capacity, key reform
measures of the budget support program could not have been
implemented without such operations.
1. Bank and Government
2.Bank
4
the State portfolio assessment was finalized in June 2016; and (iv) the draft transparency code was prepared and sent to CEMAC for a
compliance notice.
Due to the continuing decline in oil prices and insecurity in the sub-region which has disrupted the country's traditional economic
channels (particularly Nigeria and Cameroon), the country has been unable to meet domestic revenue mobilization targets. Furthermore,
oil production did not increase as projected in 2016. PARFIP-I served to control public spending trends with a 26% decrease in primary
expenditure in 2015; better monitoring of pre-authorization expenditure which was reduced from more than 20% in 2013 to 9% in 2015.
The economy’s real growth rate in 2015 was 1.8% due to the slump in oil prices, the disruption of cross-border trade channels in the
context of the sub-regional security crisis and the decline in agricultural production due to poor precipitation. Drastic cuts in capital
spending also contributed to this underperformance. Inflation averaged 3.6% in 2015, doubling its 2014 level owing to higher food prices
resulting from the security crisis. Social expenditures have been preserved and concern pro-women spending and girls’ schooling.
2. Outcome reporting
Outcome
indicators (as per
RLF; add more
rows as needed)
Baseline
value
(year)
(A)
Most
recent
value
(B)
End
target (C)
(expected
value at
project
completio
n)
Progress
towards
target (%
realized)
[(B-A)/(C-
A)]
Narrative assessment
(indicative max length: 50 words per
outcome)
Core Sector
Indicator
(Yes/No)
Outcome 1: Domestic non-oil sector revenue mobilization is improved
(Non-oil sector)
Tax revenue/GDP
Ratio
9.5% in
2014
9.6% in
2016
11% in
2016
7% Partially achieved: Despite the decline in
oil sector revenues and the decline in oil
sector tax revenues from 21.3% of GDP in
2012 to 5.1% in 2015.
Outcome 2: The predictability, ex-post control and supervision of budget execution are enhanced
2.1 Execution rate
of priority social
sector expenditure
2.2 PEFA-P16
indicator:
Predictability of
availability of funds
for expenditure
commitment
78.4% in
2014
D+ in
2009
81% in
2015
D+ in
2015
>95%
B+ in
2016
18.6%
N/A
Partially achieved: Despite a relative
increase in the execution rate of priority
social sector expenditures in 2015 compared
to 2014, the target of at least 95% remained
unattainable owing to the country's financial
difficulties.
Not achieved: The PEFA report originally
planned for 2016 under EU funding is yet to
be produced.
Rating *(see IPR
methodology) Narrative assessment
3. Output reporting
Output indicators
(as per RLF; add
more rows as
needed)
Most recent
value
(A)
End target (B)
(expected
value at
project
completion)
Progress
towards
target (%
realized)
(A/B)
Narrative assessment
(indicative max length: 50 words per
output)
Core Sector
Indicator
(Yes/No)
COMPONENT I : IMPROVEMENT OF DOMESTIC REVENUE MOBILIZATION
Output 1: The tax base is broadened
1.1 Business
Census
11,200
enterprises
listed in the
DGI database
in 2014
Validation of
the business
census by the
competent
authority
75
Achieved: The business census
finalized and validated in 2015. The number
of enterprises listed in March 2016 is
11,200 in 2014 and 11,298 in 2015
5
1.2 Update of the
General Tax
and Fiscal
Procedure
Code
The new Tax
Code was
adopted in
2015
At least 15000
enterprises
listed in the
DGI database
in 2016
The updated
General Tax
and Fiscal
Procedure
Code is
adopted in
2015
100
Achieved: The new General Tax Code was
adopted and promulgated by the Head of
State in September 2015
Output 2: The capacity of the Directorate General of Customs is enhanced
2.1 Installation of
mobile
scanners for
goods
verification
2.2 Deployment
of ASYCUDA
++ in major
customs posts
Two scanners
acquired but
not operational
ASYCUDA
++ is installed
in three offices
At least two
mobile scanners
installed in 2016
Deployment of
ASYCUDA ++
in at least three
additional major
customs posts
50%
100%
Partially achieved: The government
acquired the two scanners but due to lack
of funding the platform could not be set
up and the scanners remain inoperative.
Achieved: SYDONIA ++ has been
installed in the towns of Moundou, Kotere
and Abeché. Additionally, in 2016 the
platform was installed in the following
towns: Kelo, Doba, Bongor and Djermaya
Output 3 : The extractive sector’s contribution to the State Budget is increased
Adoption of the
2013 EITI Report.
The 2013 EITI
Report is not
yet prepared.
The EITI report
was adopted in
December 2015
100% Achieved: The EITI Report was prepared
and adopted in 2015.
COMPONENT II: ENHANCEMENT OF PUBLIC SPENDING EFFICIENCY AND TRANSPARENCY
Output 4: Public spending efficiency is improved
4.1 Maintain the
share of social
spending as a %
of total budget
expenditure
4.2 Preserve
spending on
women’s
advancement
and social
action
4.3 3 The ratio of
pre-
authorization
spending
(excluding
wage bill, debt
service and
security
expenditure)
to overall
19% in 2013
CFAF 6 billion
in 2014
22% in 2016
> 19% in 2015
CFAF 6.9 billion
in 2015
≤ 9% in 2016
100%
97%
0
Achieved: The share of social spending as
% of total budget expenditure reaches
approximately 22% in 2015, well above the
target that was set at 19%.
Achieved: The expenditures allocated to
women’s advancement and social action are
estimated at CFAF 6.7 billion in 2015.
Not achieved: Pre-authorization spending
has risen substantially from 9% in 2015 to
22% in 2016 owing in particular to the
slump in capital expenditures which
generally follow the expenditure execution
rules.
6
expenditures
financed from
domestic
resources
4.4 Wage bill to
GDP ratio
7.5% in 2016
The final report
on the civil
service census is
validated and its
findings
reflected in the
payroll
management in
2015. Payroll to
GDP ratio is
6.4% in 2016
0
Not achieved: The ratio was 7.5% in 2016
despite efforts to contain the wage bill
increase and combat fraud, against 6.4% in
2015.
Output 5 : Public procurement systems and practices are strengthened
5.1 Adoption of the
new public
procurement
code.
The new
public
procurement
code was
adopted in
2015.
The new public
procurement
code was
adopted in 2015
100 Achieved: The new public procurement
code was adopted and promulgated by the
Head of State in September 2015. However,
the related PEFA indicator could not be
assessed as the PEFA report expected in
2016 is yet to be produced.
Output 6 : Transparency and accountability are strengthened
6.1 2013 Budget
Review Law
6.2. Budgetary
transparency
Code
6.3 Citizens
budget format
for 2016
Budget Law
The 2013
Budget Review
Law was
adopted in
2015
The Budgetary
transparency
Code was
adopted in
November
2016.
The citizens
budget format
was validated
in 2015
Adoption of the
2013 Budget
Review Law by
the Council of
Ministers
The Budgetary
transparency
Code is finalized
and adopted by
the Council of
Ministers in
2016
The citizens
budget format
was validated in
2015
100
100
100
Achieved: The 2013 Budget Review Law
was adopted by the Government and
forwarded to Parliament for ratification.
Achieved: Law No. 018/PR/2016 on the
Transparency and Good Governance Code in
Public Financial Management was adopted
on 11 November 2016 by Parliament and
promulgated by the Head of State on 24
November 2016
Achieved: The citizens’ budget was
prepared and adopted in a technical
workshop in 2015. The same applies to the
2016 budget, based on the amended 2016
Budget Law in October 2016.
Rating *(see IPR
methodology) Narrative assessment
4 Despite the growing financial difficulties, most outputs are achieved. Therefore, the output evaluation is
highly satisfactory in the particular context of Chad.
7
4. Development Objective (DO) rating
DO rating (derived from
updated IPR)*
Narrative assessment(indicative max length: 250 words
3 Progress towards achieving the PARFIP development objectives is generally satisfactory. Indeed, the
output indicators have been largely achieved, and the outcome indicators have improved even if the
targets have not been reached.
5. Beneficiaries (add rows as needed)
Actual (A) Planned (B) Progress towards target ( (% realized) (A/B)
% of Women Category (e.g. farmers,
students)
PARFIP’s direct
beneficiaries are the
entire Chadian
population and in
particular the
economic and
financial
administration
structures; women
and youth; and the
private sector.
Chadian population 100% All categories
6. Gender Equality
Performance assessment of gender analysis in the operation : (indicative max length: 250 words)
Priority expenditures include a budget line allocated to "women and social action" but also sector expenditure that benefits
disadvantaged social groups (girls' education, free health care for children, free caesarean section for women, etc.). The preservation
of these expenditures under the program has made it possible to maintain the execution of these expenditures at a significant level
(81%), despite the substantial revenue deficit due to the decline in petroleum product prices.
7. Unanticipated or additional outcomes (add rows as needed)
Description Type (example.
gender, climate
change, social
aspect, others)
Positive or
negative
Impact on project
(high, average, low)
N/A
8. Lessons learnt related to effectiveness (add rows as needed)
Key issues (5 maximum; add rows as needed )
Lessons learned Target audience
1. Combining budget support with institutional
capacity building support
1. Institutional support to strengthen economic and
financial governance has facilitated the
implementation of program reform measures
(including some of PARFIP's prior actions such as
the development and adoption of the new public
procurement code).
Bank and
Government
8
2. Putting reforms in a medium-term perspective Although PARFIP is a 2015 budget support, the
matrix of measures was designed with a medium-
term perspective to ensure the sustainability and
effective operationalization of program measures.
Furthermore, the program follow-up actions whose
implementation deadline was 2016 facilitated the
preparation of the Bank's 2016 budget support.
Bank and
Government
C Efficiency
1. Timeliness
Planned project duration–Years (A)
(as per PAR)
Actual implementation time
–Years (B) (from effectiveness for 1st
disbursement)
Ratio of planned and actual
implementation time (A/B)
Rating*
12 months 1 month 12 4
Report (indicative maximum length: 250 words)
The program became effective within a month of its approval by the Board of Directors of the Bank. The two single tranches of the
ADF and TSF Grants were disbursed by the Bank 15 days after their approval thanks to the rapid signing of the two Financing
Protocols of Agreement (two days after their approval).
2. Resource use efficiency
Median % physical implementation
of RLF outputs financed by all
financiers (A)
(see II.B.3)
Commitment rate (%) (B)
(see Table 1.C –Total commitment
rate of all financiers)
Ratio of the median percentage
physical implementation and
commitment rate (A/B)
Rating*
N/A N/A N/A
Report (indicative maximum length: 250 words)
3. Cost-benefit analysis
Economic rate of return (at
approval) (A)
Updated economic rate of return (at
completion) (B)
Ratio of updated rate of return to
– at- approval rate (B/A)
Rating*
N/A N/A N/A
Narrative assessment (indicative maximum length: 250 words)
4. Implementation progress (IP)
IP rating
(derived from
updated IPR) *
Narrative comments (commenting specifically on those IP items that were rated Unsatisfactory or Highly
Unsatisfactory, as per last IPR). (indicative maximum length : 500 words
4 The program implementation is rated highly satisfactory as the Government has very strictly fulfilled the conditions
precedent to implementation and entry into force and the disbursement of the single tranches of the two financing
instruments.
9
5. Lessons on efficiency
Key issues (5 maximum; add rows as necessary) Lessons learned Target audience
1.Prior actions and disbursement conditions 1. There was broad consensus on the program’s prior
actions between the technical and financial partners
that provided budget support to Chad in 2015, and
the country’s authorities. Additionally, the resources
disbursement condition was simplified considering
the country’s fragility status, thus enabling the rapid
disbursement of resources.
Bank and
Government
D Sustainability
1. Financial sustainability
Rating* Narrative assessment (indicative maximum length : 250 words)
3 Chad’s financial situation has been severely undermined by the dual shock of security and fiscal, requiring massive
support from its technical and financial partners to enable it to meet its needs regarding capacity building in public
sector management and provision of basic social services. The program has implemented robust reform measures to
enhance public spending efficiency and effectiveness and improve public financial management transparency and
accountability, through sustained efforts to broaden the tax base, and thus curb the country's extremely high oil sector
dependency.
2. Institutional sustainability and strengthening of capacities
Rating* Narrative assessment (indicative maximum length : 250 words)
3 The program is complementary to the Bank's institutional support to Chad in the areas of economic and financial
governance and improving the business climate. In this regard, the program’s institutional sustainability is considered
satisfactory, including the dimension of capacity building of government services. The sustained measures designed to
enhance public spending effectiveness and efficiency will ultimately contribute towards improving the provision of basic
social services and the well-being of the Chadian populace.
3. Ownership and sustainability of partnerships
Rating * Narrative assessment (indicative maximum length : 250 words)
4 Ownership and sustainability of partnerships is considered highly satisfactory as this operation was prepared in close
collaboration with all donors who have provided budget support in Chad. The six prior actions of the program were
common to the Bank, World Bank and European Union. The reform measures implementation is monitored within the
framework of the "macroeconomics and public finance" thematic group of the Committee of Technical and Financial
Partners (CPTF) of Chad. This thematic group comprises all the technical and financial partners that provide technical
assistance to Chad in this area. Lastly, most of the program's reform actions are derived from the public finance
modernization action plan, which constitutes the TFPs’ reference framework of support for strengthening public financial
management.
4. Environmental and social sustainability
Rating * Narrative assessment (indicative maximum length : 250 words)
4 The PARFIP program is a budget support operation belonging to Category III as its implementation has no
environmental impact.
10
5. Lessons learned related to sustainability
Key issues (5 maximum; add rows if needed) Lessons learned Target audience
1. Synergy with TFP interventions 1. The designing of the program in synergy with the
other TFPs and in particular the selection of common
prior measures was decisive for accelerating the
implementation of the program reforms.
Bank and
Government
III Performance of stakeholders
A Relevance
1. Bank Performance
Rating* Narrative assessment by the borrower on the Bank’s performance, as well as any other aspects of the project (both
quantitative and qualitative). See guidance note on issues to cover (indicative maximum length: 250 words)
3 The Bank's performance is considered satisfactory as it was able to respond to the urgent request from the Government of
Chad to put in place a robust program of reforms while ensuring strong collaboration with the other technical and financial
partners involved in budget support operations in Chad. Furthermore, the sustained reform measures are in line with the
Government's public finance modernization action plan. Lastly, most of the program's reform measures are derived from
actions supported by the Bank as part of institutional support.
Comments to be inserted by the Bank on its own performance (both quantitative and qualitative). See guidance
note on issues to cover. (indicative maximum length : 250 words)
The Bank's performance is also due to the quality of the structural reform dialogue aimed at diversifying growth sources,
as well as the sector studies prepared (including a study on internal resource mobilization), which facilitated the program’s
design and implementation.
Key issues (related to Bank performance, maximum 5; add rows
as needed ) Lessons learned
1.Anchoring of reforms in the Government’s program 1. The anchoring of PARFIP measures in the public finance
modernization action plan has fostered ownership of the
program by the Chadian authorities.
2. Borrower performance
Rating* Narrative assessment on the Borrower performance to be inserted by the Bank (both quantitative and qualitative,
depending on available information). See guidance note (indicative maximum length: 250 words)
3 The borrower’s performance is considered satisfactory. The National Economic and Financial Program Negotiating
Committee was tasked with monitoring the implementation of the program. This committee is an inter-ministerial structure
and comprises representatives of the Prime Minister's Office and most of the ministries involved in the reforms
implemented under the program. It is chaired by the Secretary-General of the Ministry of Finance and Budget.
Key issues (related to borrower performance, maximum 5; add
rows if needed) Lessons learned
Coordination of the reform program 1. The sound coordination of the reform program by the national
committee put in place has been decisive in the successful
implementation of the reforms.
11
3. Performance of other stakeholders
Rating* Narrative assessment on the performance of other stakeholders, including co-financiers, contractors and service
providers. See guidance note on issues to cover (indicative max. length: 250 words).
4 The donor community has been heavily involved in providing massive budget support to the Government of Chad, which
was adversely impacted by the slump in oil prices and the deterioration of the security situation in the sub-region (Mali,
Lake Chad, etc.). TFPs coordinated their efforts in terms of policy dialogue on economic and financial reforms, thus
facilitating the effective implementation of program measures on schedule.
Key issues(related to performance
of other stakeholders, max. 5; add
rows as needed)
Lessons learned (max. 5) Target audience (for
lessons learned)
IV Summary of key lessons learned and recommendations
Key issues(max. 5; add rows as needed)
1. Key lessons learned
Target audience
Synergy of donor interventions in public sector
reforms.
The Agreement among partners providing Chad
with budget support to have common prior
actions has led to the implementation of
sensitive reforms, which a single partner could
not have sponsored (e.g. the adoption of the
public procurement code).
Bank and
Government
Need for technical assistance in implementing
reforms
The Bank's technical assistance through various
institutional support operations has facilitated
the implementation of several reform measures
in Chad. Without such support, key reforms of
the budget support program would have been
difficult.
Bank and
Government
Combining budget support with institutional
capacity building support
Institutional support to improve economic and
financial governance has facilitated the
implementation of program reform measures
(including some prior actions of PARFIP, such
as the preparation and adoption of the new
public procurement code).
Bank and
Government
12
Putting reforms in a medium-term perspective
Although PARFIP is a 2015 budget support
operation, the matrix of measures was designed
with a medium-term perspective to ensure the
sustainability and effective operationalization of
program measures. Additionally, program
follow-up measures with a 2016 implementation
deadline facilitated the preparation of the Bank's
2016 budget support.
Bank and
Government
Prior actions and disbursement conditions There was broad consensus on the program’s prior
actions between the technical and financial partners
that provided budget support to Chad in 2015 and the
country’s authorities. Additionally, the resources
disbursement condition was simplified considering
the country’s fragility status, thus enabling the rapid
disbursement of resources.
Bank and
Government
2. Key recommendations (with particular emphasis on ensuring the sustainability of project benefits)
Key issues (10 maximum; add rows as needed)
Key recommendation Responsibility Deadline
Synergy with TFP interventions The designing of the program in synergy
with the other TFPs and in particular the
selection of common prior measures was
decisive in accelerating the
implementation of the program reforms
Bank and
Government
Ongoing
Anchoring of reforms in the Government’s program The anchoring of PARFIP measures
in the public finance modernization
action plan fostered ownership of the
program by the Chadian authorities.
Bank and
Government
Ongoing
13
V Overall PCR rating
Dimensions and Criteria Rating*
DIMENSION A : RELEVANCE
Relevance of project development objective (II.A.1) 4
Relevance of project design (II.A.2) 4
DIMENSION B : EFFECTIVENESS
Development Objective (DO) (II.B.4) 3
DIMENSION C : EFFICIENCY
Timeliness (II.C.1) 4
Resource use efficiency (II.C.2) N/A
Cost-benefit analysis(II.C.3) N/A
Implementation progress (IP) (II.C.4) 3
DIMENSION D : SUSTAINABILITY
Financial sustainability (II.D.1) 3
Institutional sustainability and strengthening of capacities(II.D.2) 3
Ownership and sustainability of partnerships (II.D.3) 4
Environmental and social sustainability (II.D.4) NA
OVERALL PROJECT COMPLETION RATING 3.46
VI Acronyms and abbreviations
Abbreviations( add rows as
necessary) Description
ADF
AfDB
EITI
EU
HIPC
PARFIP
PAS
PEFA
TFP
TSF
WB
African Development Fund
African Development Bank
Extractive Industries Transparency Initiative
European Union
Heavily Indebted Poor Countries
Public Finance Reform Support Program
Pre- Authorization Spending
Public Expenditure and Financial Accountability
Technical and Financial Partners
Transition Support Fund
World Bank
Required Attachment: Updated Implementation Progress and Results Report (IPR)–the date should be the same as the PCR mission.
14
IMPLEMENTATION PROGRESS REPORT AND RESULTS (IPR)
AFRICAN DEVELOPMENT BANK
GROUP
A Report summary and proposed actions
Report data
Report type : Report date: 30 March 2015 Mission date (if field mission)
Launch/field supervision mission
/MTR/summary review/ others (specify) :
Field supervision mission
From : 8 March 2016 To: 23 March 2016
Prepared by : Task Manager :
A. IBRAHIM, Principal Macroeconomist
OSGE.1
Alternate Task Manager :
A. EKPO, Macroeconomist,
OSGE.1
Division Manager :
A. COULIBALY, Division
Manager, OSGE.1
Project data
Project code : P-TD-KA0-05
Financing instrument(s) No.(s) : ADF
Grant : No. 5900155003853 ; TSF
Grant :
Project name : Public Finance Reform Program
Country: CHAD
Sector : Multisector
File processing milestones – Bank-
approved financing only (add/delete
rows depending on the number of
financing sources)
Key Events (Bank-approved financing
only)
Disbursement and closing dates (Bank-
approved financing only)
Financing source/ instruments: ADF
Grant , TSF Grant
Date approved :9 December 2015
Date signed :11 December 2015
Date of entry into force :11 December
2015
Date effective for 1st disbursement:11
December 2015 Date of actual 1st disbursement :
22/12/2015
Financing source/ instruments 1:
ADF Grant
TSF Grant
Cancelled amounts: 0
Supplementary financing : 0
Restructuring (specify date and amount
involved):N/A
Extensions (specify dates) :N/A
Financing source/ instruments 1:
1 : ADF Grant
TSF Grant
Original disbursement deadline : N/A
Original closing date :30 November 2016
Revised (if applicable) disbursement
deadline: N/A
Revised (if applicable) closing date :N/A
Financing source/ instruments
(add/delete rows depending on the
number of financing sources):
Foreign Exchange (UA) : Local currency (UA) :
TOTAL (UA)
Financing source/ instruments: ADF
Grant
3 365 000 3 365 000
3 365 000
TOTAL : 3 365 000 3 365 000 3 365 000
Financing source/ instruments
(add/delete rows depending on the
number of financing sources):
Disbursed to date
(amount, UA) :
Disbursed to date
(%):
Undisbursed to
date (amount,
UA) ::
Undisbursed to
date (%):
Financing source/ instruments: ADF
Grant
3 365 000 100 0 0
TOTAL : 3 365 000 100 0 0
15
Financing source/ instrument 2 : TSF
Grant
Date approved :9 December 2015
Date signed :11 December 2015
Date of entry into force :11 December
2015
Date effective for 1st disbursement :11
December 2015 Date of actual 1st disbursement :
22/12/2015
Financing source/ instrument 2 : TSF
Grant
Cancelled amounts: 0
Supplementary financing : 0
Restructuring (specify date and amount
involved):N/A
Extensions (specify dates) :N/A
Financing source/ instrument 2 : TSF
Grant
Original disbursement deadline : N/A
Original closing date :30 November 2016
Revised (if applicable) disbursement
deadline: N/A
Revised (if applicable) closing date :N/A
Financing source/ instruments
(add/delete rows depending on the
number of financing sources):
Foreign Exchange (UA) : Local currency
(UA) :
TOTAL (UA)
Financing source/ instrument 1 : TSF
Grant
10 000 000 10 000 000 10 000 000
TOTAL : 10 000 000 10 000 000 10 000 000
Financing source/ instruments
(add/delete rows depending on the
number of financing sources):
Disbursed to date
(amount, UA) :
Disbursed to date
(%):
Undisbursed to
date (amount,
UA) ::
Undisbursed to
date (%):
Financing source/ instrument 1 : TSF
Grant
10 000 000 100 0 0
TOTAL : 10 000 000 100 0 0
Execution and Implementation Agency(ies):
Ministry of Finance and Budget
Co-financiers and other external partners:
World Bank : UA 35 700 000
European Union : UA 40 000 000
Performance status
Progress towards development objective
Rating of
development
objective (DO)
Performance rating Summary of key findings
Current Previous The program's development objective, which is to foster public financial
management efficiency and transparency, is likely to be achieved with the
reform measures already implemented to enhance public procurement
transparency, protect social spending and ensure public sector management
accountability (production of Budget Review laws).
3 N/A
Implementation status
Implementation
progress (IP) rating
Performance rating Summary of key findings
Current Previous The program was signed on 11 December 2015 and the resources fully
disbursed on 22 December 2015. 4 N/A
Overall performance classification
Classification de la
Project
(PP, PPP or NPPP)
Project status Summary of key findings
Current Previous The program’s overall performance is satisfactory.
NPPP NPPP
16
Problems, risks and measures submitted to management for review
Problems affecting project execution
(Indicate key obstacles to the execution of the project and the measures submitted to management’s attention)
Key problems Corrective measures Responsibility Deadline
Continuing with the implementation of the
reform agenda after the disbursement of the
resources of the two Grants.
The national monitoring committee set up
for the preparation and implementation of
the reform program coordinates the
implementation of the program follow-up
measures planned for 2016. Furthermore, the
"macroeconomics and public finance"
thematic group carries out the periodic
monitoring of the Government's economic
and financial reform program.
Government and Bank
Ongoing
Key risks and mitigation measures
(Indicate key risks to the execution of the project and the measures submitted to management’s attention)
Risks Mitigation measures applied or
proposed
Responsibility Deadline
Use of the resources of the two Grants
for purposes not provided for in the
program
An independent audit of the program is
planned after its closure.
Government and
Bank.
30 June 2017
Review by management and comments
Report reviewed
by Name Review date Comments
Field Office
Manager
Mr Ali Lamine ZEINE, (Ag.)
Resident Representative, COTD
<DD/MM/YY
YY> <TYPE HERE>
Director General Mr. Ousmane DORE <DD/MM/YY
YY> < TYPE HERE >
Sector Division
Manager
A. COULIBALY, Division
Manager, ECGF
<DD/MM/YY
YY>> < TYPE HERE >
Sector Director A. COULIBALY, Ag.
Director, ECGF
<DD/MM/YY
YY> < TYPE HERE >
B Results report and rating
Progress towards project development objective (project goal)
Indicate project development objective (generally the project goal as per RLF) and evaluate progress
PARFIP's development objective is to contribute towards strengthening public spending efficiency and budgetary transparency. The
program will comprise two components: (i) improved domestic resource mobilization and (ii) increased public spending efficiency
and transparency.
17
Outcome reporting
Outcome indicators (as per RLF, add
rows if needed) Baseline
value
Most recent
value
End target
(value
expected at
project
completion)
Progress
towards
target (%
achievem
ent)
Assessment
Outcome 1 : Ratio of tax revenue
(excluding non-oil sector ) to GDP
9.4% in 2014 10.5% in 2015 11% in 2016 100 The taxpayer census
recommendations are being
implemented
Outcome 2: Rate of execution of
expenditures of priority social sectors
74% in 2014 81% in 2015 ≥95% in
2015
75 Despite an improvement in
the execution rate compared
to 2014, the target could not
be reached owing to the
country’s financial
constraints.
Outcome 3 : PEFA –P16 Indicator:
Predictability of availability of funds to
commit expenditures
D+ in 2009 D+ in 2015 B+ in 2016 50 PEFA report preparation
scheduled for 2016 is yet to
begin.
Outcome rating
Project outcome
rating
Present report Previous report Justification
(A score of 2 or 1, as well as the proposed corrective measures, must
be reviewed at the section on Issues, risks and measures submitted to
management for review)
3 N/A Progress towards the three outcomes of the program is overall
satisfactory at this stage of implementation.
Output reporting
Output indicators (as
per RLF, add rows if
needed)
Most recent
value
Annual target
(cumulative value
expected at the
end of the year
covered by the
report)
End target
(cumulative value
expected at
completion)
Progres
s
towards
annual
target
(%
realized)
Progress
towards
end target
(%
realized)
Assessment
Output 1:
Business census
.
11298
enterprises
listed in the
DGI database
in December
2015.
15 000 enterprises
identified in 2016.
The latest available
data is that of
December 2015.
75 50 There is a slight
increase in the
number of
enterprises listed
in the database of
DGI which plans
to continue efforts
to expand the
database
Output 2:
Update of the General Tax
and Fiscal Procedure Code
The new Tax
Code was
adopted in
2015.
The updated
General Tax and
Fiscal Procedure
Code is adopted in
2015.
The new Tax Code
was adopted in
2015
100 100 The new General
Tax Code was
adopted and
promulgated by
the Head of State
in September
2015.
Output 3:
Installation of mobile
scanners for goods
verification
Two scanners
acquired but
not operational
The two scanners
are accepted but are
not installed
At least two mobile
scanners installed
in 2016
100 50 The installation of
the two scanners
requires the
setting up of a
18
platform, for
which the
authorities lack
funding
Output 4:
Deployment of ASYCUDA
++ in major customs posts
ASYCUDA ++
is installed in
three offices
Extension of
ASYCUDA ++ to
three posts in the
country’s
hinterland
Deployment of
SYDONIA ++ in at
least three major
additional customs
posts
100 100 ASYCUDA ++
has been installed
in the towns of
Moundou, Kotere
and Abeche.
Output 5 :
Adoption of the 2013 EITI
Report
The EITI Report
was prepared
and published in
December 2015
The EITI Report
was prepared and
published in 2015
The EITI Report
was adopted in
December 2015
100 100 The EITI Report
was prepared and
adopted in 2015.
Output 6:
Maintain the share of social
expenditures as a % of
overall budget expenditure
22% in 2015 19% in 2015 > 19% in 2015 100 100 This output is
achieved.
Output 7:
Preserve spending on
women’s advancement and
social action
CFAF 6.7
billion in 2015
CFAF 6.9 billion in
2015
CFAF 6.9 billion in
2015
97 97 The share of
spending on
women's
advancement and
social action has
been maintained
at a significant
level despite the
country's
extremely
challenging fiscal
environment.
Output 8 : Ratio of pre-
authorization expenditure
(excluding payroll, debt
service and security
expenditure) to total
expenditure financed from
domestic resources
22% in 2015 9.5% in 2015 ≤ 9% in 2016 100 10 The target was not
reached in 2016
Output 9: Wage bill to
GDP ratio
6.4% in 2015 6.4% in 2016 6.4% in 2016 100 100 Despite
satisfactory
results in 2015,
budget projections
seem to suggest
that the target
would be
exceeded in 2016
Output 10 :
Adoption of the new Public
Procurement Code
The new
Public
Procurement
Code was
adopted in
September
2015
New Public
Procurement Code
adopted in 2015
The new Public
Procurement Code
was adopted in
2015
100 100 The new Public
Procurement
Code has been
adopted by the
Government and
submitted to
Parliament for
ratification.
Output 11 : 2013 Budget
Review Law
The 2013
Budget Review
Law was
adopted in
2015
Budget Review
Law adopted in
2015
Adoption of the
2013 Budget
Review Law by the
Council of
Ministers
100 100 This measure is
implemented
19
Output 12: Budgetary
transparency Code.
The budgetary
transparency
code was
adopted in
2016
The draft budgetary
transparency code
prepared and sent to
Parliament for
adoption
The budgetary
transparency code
is finalized and
adopted by the
Council of
Ministers in 2016
100 100 This measure is
implemented
Output 13 : Citizens
budget format for the 2016
Budget Law
The Citizens
budget format
was prepared
and validated
in 2015
The Citizens budget
format was
prepared and
validated
The Citizens budget
format was
validated in 2015
This measure is
implemented
Output rating
Project output rating Present
report
Previous report Explanation
(A score of 2 or 1, as well as the proposed corrective measures, must
be reviewed at the section on Issues, risks and measures submitted to
management for review)
3 N/A Most of the activities enabling the achievement of the project outputs
are completed before the closure of the program.
Development Objective (DO) rating
Development
Objective (DO)
rating
Present report Previous report Explanation
(A score of 2 or 1, as well as the proposed corrective
measures, must be reviewed at the section on Issues, risks and
measures submitted to management for review)
3 N/A The two Financing Protocols of Agreement signed 48 hours after
their approval by the Bank's Board of Directors, and the resources
disbursed two weeks later. The level of achievement of the
outputs is very high and will in the long term enable the
achievement of the program’s development objectives.
C Implementation progress reporting and results
Compliance with covenants
Criteria Number/Percentag
e of conditions met
Rating Assessment
Accompanied by explanations regarding (a) scores of
2 or 1 and (b) lower scores than in the previous report
Present
report
Previous
report
Compliance with project covenants (Complete report on compliance with
covenants to be communicated in
Annex 2)
100% 4 N/A Evidence of the fulfilment of the conditions precedent
to entry into force was transmitted within a very short
time. The program was approved on 9 December 2015
and entered into force on 11 December 2015.
Resources were fully disbursed on 22 December 2015.
Compliance with environmental
and social protection covenants
(Complete report on compliance with
protection arrangements to be
provided in Annex 3)
N/A N/A N/A PARFIP is a budget support program with no impact
on the environmental conditions of the Republic of
Chad.
Compliance with audit
covenants
75% 3 N/A An independent audit is scheduled for the end of
the program in November with financing from
Chad.
20
Project systems and procedures
Criteria Rating Assessment
Accompanied by explanations regarding (a)
scores of 2 or 1, and (b) lower scores than in the
previous report
Present
report
Previous
report
Goods and services procurement N/A N/A The program is a balance of payments support to
fill the financing gap of the State budget partially.
Financial management N/A N/A Financial management follows the normal public
finance management system in force in Chad.
Monitoring and evaluation
N/A N/A Monitoring and evaluation of the program will be
carried out by the national committee for
monitoring economic and financial reforms as
well as through the public monitoring and
evaluation structures, as part of the
implementation of their respective budgets.
Lastly, the Government will prepare a report on
the implementation of its National Development
Plan (NDP) whose budget constitutes the key
implementing instrument.
Project execution and financing
Criteria Total amount
(a)
Cumulative
amount to
date (b)
Cumulative
amount at
the
beginning of
the year (c)
Annual
projection
(Cumulative
amount
expected at
year end)
(d)
Progress
towards
annual
projection
(%
achieved)
(b-c)/(d-c)
Progress
towards
total
projectio
n (%
realized)
Rating
Present
report
Previou
s report
Disbursement
s (Bank -
approved
financing only)
UA 13
365 000
UA 13 365
000
UA 13 365
000
UA 13 365
000
N/A N/A 4 N/A
Budgetary
commitments
(Bank -
approved
financing only)
UA 13 365
000
UA 13 365
000
UA 13 365
000
UA 13 365
000
N/A N/A 4 N/A
Disbursement
s of
counterpart
funds
N/A N/A N/A N/A N/A N/A N/A N/A
Disbursement
s of Co-
Financing
funds
N/A N/A N/A N/A N/A N/A N/A N/A
21
Criteria Rating
With explanation for (a) ratings of 2 or 1 and (b) ratings lower than in the
previous report
Disbursements (Bank - approved financing only) The disbursement rate is 100%
Budgetary commitments (Bank - approved
financing only)
100% of the amount approved is committed.
Disbursements of counterpart funds N/A
Disbursements of Co-Financing funds N/A
Overall rating of implementation progress (IP)
IPR Rating Present
report
Previous
report
Explanation
(A score of 2 or 1, as well as the proposed corrective measures, must be reviewed at
the section on Issues, risks and measures submitted to management for review)
3 N/A The program was signed, put into force and the resources disbursed in a record time of
fewer than two weeks.
