AFRICAN DEVELOPMENT BANK GROUP REPUBLIC OF LIBERIA

Transcription

1 AFRICAN DEVELOPMENT BANK GROUP Public Disclosure Authorized Public Disclosure Authorized REPUBLIC OF LIBERIA ADB S SUPPORT TO THE INTEGRATED PUBLIC FINANCIAL MANAGEMENT REFORM PROJECT - PHASE II ECGF DEPARTMENT January 2017

2 TABLE OF CONTENTS Currency Equivalents Fiscal Year Weights and Measurements Acronyms and Abbreviations Financing Information Project Milestones and Timelines Project Summary Results-Based Logical Framework Project Implementation Timeframe I STRATEGIC THRUST AND RATIONALE 1.1. Project linkages with country strategy and objectives 1.2. Rationale for the Bank's involvememt 1.3. Donor coordination II PROJECT DESCRIPTION 2.1. Project objectives and components 2.2. Technical solution retained and other alternatives explored 2.3. Project type 2.4. Project cost and financing arrangements 2.5. Project s target area and beneficiaries 2.6. Participatory process for project identification, design, and implementation 2.7. Bank Group experience, lessons reflected in project design 2.8. Key performance indicators III PROJECT FEASIBILITY 3.1. Economic and financial performance 3.2. Environmental and social impact 3.3 Fragility analysis IV IMPLEMENTATION 4.1. Implementation arrangements 4.2. Monitoring and evaluation 4.3. Governance 4.4. Sustainability 4.5. Risk management 4.6. Knowledge building V LEGAL INSTRUMENTS AND AUTHORITY 5.1. Legal instrument 5.2. Conditions associated with Bank s intervention 5.3. Compliance with Bank policies VI RECOMMENDATION i i i ii iii iii iv v viii

3 LIST OF TABLES Table 1.1: Development Partners Interventions and Complementarity with the Project Table 2.1: Summary of Project Activities by Component Table 2.2: Project Alternatives Explored Table 2.3: Project Cost Estimates by Component Table 2.4: Project Cost Estimates by Sources of Financing Table 2.5: Expenditure Schedule by Components Table 2.6: Lessons learned from previous operation and other analytical reports Table 2.7: Selected PEFA Scores for Improved Performance under IPFMRP Phase II Table 4.2: Project Implementation Schedule Table 4.5: Summary of Risks and Mitigation Measures LIST OF APPENDICES Appendix 1: Comparative Socio-Economic Indicators Appendix II: AfDB Projects in the Bank s Portfolio in Liberia Appendix III: Similar Projects Financed by the Bank and other Development Partners Appendix IV: Letter of Request from the Government of Liberia Appendix V: The Bank s Value Addition under IPFMRP Phase I Appendix VI: Map of the Republic of Liberia

4 Currency Equivalents (as of September 20, 2016) UA 1 = US$ 1.39 US$ 1 = LRD UA 1 = LRD Fiscal Year July 1 June 30 Weights and Measurements 1metric tonne = 2204 pounds (lbs) 1 kilogramme (kg) = lbs 1 metre (m) = 3.28 feet (ft) 1 millimetre (mm) = inch ( ) 1 kilometre (km) = 0.62 mile 1 hectare (ha) = acres i

5 Acronyms and Abbreviations ADF AfDB APRM CAG COA CPIA CPPR CSP DeMPA EU FIU FC GAC GC GDP GoL HIPC IAA IFMIS IMF IPFMRP ISP JAS LBO LC LEITI LICPA LIPA LRA LRD MDAs MFDP MFF MTEF NRTU PAR PBA PCR PEFA PEMFAR PFM PFM RS&AP PFMSC PFMU PIMA PIU PRS RCU SDG SIDA SIGTAS SoE TA TADAT African Development Fund African Development Bank African Peer Review Mechanism Comptroller and Accountant General Chart of Accounts Country Policy and Institutional Assessment Country Portfolio Performance Review Country Strategy Paper Debt Management Performance Assessment European Union Financial Intelligence Unit Foreign Costs General Auditing Commission Governance Commission Gross Domestic Product Government of Liberia Highly Indebted Poor Countries Internal Audit Agency Integrated Financial Management Information System International Monetary Fund Integrated Public Financial Management Reform Project Institutional Support Project Joint Assistance Strategy Legislative Budget Office Local Costs Liberia Extractive Industry and Transparency Initiative Liberian Institute of Certified Public Accountants Liberian Institute of Public Administration Liberia Revenue Authority Liberian Dollar Ministries, Departments and Agencies Ministry of Finance and Development Planning Macro Fiscal Framework Medium Term Expenditure Framework Natural Resource Tax Unit Project Appraisal Report Performance Based Allocation Project Completion Report Public Expenditure and Financial Accountability Public Expenditure Management and Financial Accountability Review Public Financial Management Public Financial Management Reform Strategy and Action Plan Public Financial Management Steering Committee Public Financial Management Unit Public Investment Management Assessment Project Implementation Unit Poverty Reduction Strategy Reform Coordination Unit Sustainable Development Goal Swedish International Development Agency Single Integrated Tax Administration System State Owned Enterprise Technical Assistance Tax Administration Diagnostic Assessment Tool ii

6 TSA TSF UA UNDP USAID WB Treasury Single Account Transition Support Facility Unit of Account United Nations Development Program United States Agency for International Development World Bank Financing Information Client Information BORROWER: EXECUTING AGENCY: Republic of Liberia Ministry of Finance and Development Planning Financing Plan Source Amount Amount (UA m) (US$ m) ADF-13 Grant PBA ADF-13 TSF Grant - Pillar III Grant ADF-10 Grant PBA (Unused Balance Reallocation)* ADF-10 TSF Grant - Pillar I (Unused Balance Reallocation)* ADF-10 TSF Grant - Pillar III (Unused Balance Reallocation)* World Bank / IDA Grant and Credit (expected) Government Counterpart In-kind Contribution (10%) TOTAL FINANCING AMOUNT *The unused balances reflected here in the amount of UA 2.07 m (US$ 2.88m) include the funds reallocated from the Liberia: Labor-Based Public Works Project approved on December 8, 2007 for ADF Grant Number Project Milestones and Timelines Project Milestones Timelines Preparation April 2016 Appraisal September 2016 Peer Review September 2016 Regional Director Clearance October 2016 Negotiation November 2016 Board approval December 2016 Grant Signature December 2016 Effectiveness December 2016 Mid-Term Review June 2018 Completion June 2019 Last disbursement December 2019 iii

7 Project Summary Project Overview Needs Assessment Bank s Added Value Knowledge Management Project Name: ADB s Support to the Integrated Public Financial Management Reform Project - Phase II (IPFMRP II) Project Objective: To strengthen transparency and accountability in public financial management and enhance domestic revenue mobilization from the natural resource sector. Expected Outputs: Strengthened PFM capacity; improved PFM processes and accountability; and more efficient domestic revenue mobilization from the natural resource sector. Geographical Scope: Nationwide Overall Timeframe: 36 months (January 2017 December 2019) Grant Amount: UA 6.26 million / US$ 8.72 (AfDB contribution) Project Direct Beneficiaries: There are two direct beneficiary institutions for this project: (i) the Ministry of Finance and Development Planning s (MFDP) PFM Reform Coordination Unit (RCU); and (ii) the Liberian Revenue Authority (LRA). The RCU will coordinate the activities of all the other targeted entities. Within MFDP, the targeted units include the Aid Management Unit and the State- Owned Enterprise Financial Reporting and Coordination Unit. Outside MFDP, entities to benefit from this ISP include the Internal Audit Agency, Legislative Budget Office, Public Accounts Committee, Comptroller and Accountant General s Office, Public Procurement and Concessions Commission, Liberian Anti-Corruption Commission, and the General Audit Commission. Three professional PFM institutions will also be supported: the Liberian Institute of Public Administration, Liberia Institute of Certified Public Accountants, and the Financial Management Training Program. This project will also promote gender balance in its activities and ensure that women s participation in the training sessions reach at least 50% of eligible female staff (i.e., 50% of women professionals in PFM). Project Components: This project has three components: (i) strengthening transparency and accountability in public financial management; (ii) enhancing domestic revenue mobilization from the natural resource sector; and (iii) project management. Activities will include: Upgrade of the Integrated Financial Management Information System (IFMIS) platform, strengthening the capacity of institutions in PFM, strengthening debt management, macroeconomic forecasting, financial reporting, and better domestic revenue mobilization. The project is needed to address some of the deficiencies in PFM based on scores of D/D+ in the recently completed 2016 PEFA exercise and the key priorities specified in the Public Financial Management Reform Strategy and Action Plan ( ). The project is needed at this point in time to address the fiscal challenges resulting from the low commodity prices and the need for critical investments in infrastructure, particularly in the power, transport, agriculture and the health sectors. The health sector needs to be rebuilt in view of the recent Ebola epidemic. The support is therefore focussed on capacity building, particularly for institutions that are involved in public financial management; developing improved revenue collection systems; improving budget and expenditures tracking; and accounting surveillance systems. Support will also be provided to institutions that are involved in commodity product pricing, taxation administration, accounting, surveillance and process monitoring in the natural resource sector. The Bank has played a central role in the PFM reform efforts in Liberia. The previous policy-based operations and institutional support projects have positioned the Bank as a main partner in this area. The Bank has supported the Customs Office in Liberia by rolling out ASYCUDA in ports of entry. The Bank has developed a strong relationship with the GoL and other development partners. Efforts have been made for improved alignment, harmonization, and coordination with other development partners, as demonstrated by IPFMRP I. This project will be complemented by other DP interventions in PFM in the years ahead, notably the World Bank and SIDA that have already indicated their interest in supporting PFM reforms under the new PFM Reform Strategy and Action Plan ( ). New knowledge will be delivered through: (i) Capacity building initiatives that will help government officials to produce PFM products (PFM strategy, PFM progress reports); (ii) Development of tailor made manuals, working practices and tools for continued use; (iii) Procurement information system and (iv) knowledge transfer from long and short-term technical assistance. iv

8 Results-Based Logical Framework Country and Project Name: ADB s Support to the Integrated Public Financial Management Reform Project - Phase II (IPFMRP II) Project Objective: To strengthen transparency and accountability in public financial management and enhance domestic revenue mobilization from the natural resource sector. RESULTS CHAIN Indicator (including CSI) PERFORMANCE INDICATORS Baseline Target MEANS OF VERIFICATI ON RISKS/ MITIGATION MEASURES IMPACTS Improved PFM performance, more efficient revenue collection, and enhanced governance of natural resources Increased tax revenue as a % of GDP Improved resource governance index Improved CPIA Score (Cluster D) 22 % of tax revenue as a % of GDP (2015) Partially satisfactory score of 62% (2015) CPIA Score (Cluster D) of 3.5 (2015) 24% of tax revenue as a % of GDP (2019) Fully satisfactory score > 71% (2019) CPIA Score (Cluster D) of 3.7 (2019) IMF Article IV Reports and LRA Reports Natural resource governance institute scores Risk 1: Capacity constraints: Weak institutional and human resources capacity could cause delays or hamper implementation OUTCOMES Outcome 1: Improved PFM efficiency, transparency, and accountability Outcome 2: Enhanced knowledge in tax audit techniques in the natural resource sector Improved PEFA scores on fiscal discipline, efficiency, and oversight 1 Increased proportion of trained tax auditors in the natural resource sector 10 PEFA Scores of D/D+ (2016) 25% of NRTU staff trained in tax audit techniques in the natural resource sector (2015) 5 or less PEFA Scores of D/D+ (PI-2, 4, 11,15,22) (2019) 50% of NRTU staff trained in tax audit techniques in the natural resource sector (2019) Component 1: Strengthening transparency and accountability in public financial management AfDB CPIA 2019 PEFA Report Annual PFMU Project Progress Reports Mitigation measure: This proposed support is based on a recent and realistic assessment of implementation capacity in general and clearly sequenced PFM Reform Strategy. The project will provide additional project management capacity. OUTPUTS Output 1: Strengthened efficiency, transparency and accountability in PFM Increased number of counties on IFMIS Increased timeliness and quality of production of financial statements IFMIS deployed in 4 counties (2016) Financial statements produced 5 months of end of FY (2015), with disclaimer audit opinion IFMIS deployed in 8 counties (2019) IPSAS cash-basis compliant Financial statements produced 4 months of end of FY (2019) Annual PFMU Progress Reports Risk # 2: Fiduciary risks: Government has made notable progress in improving PFM, but there are still weaknesses in the fiduciary and control 1 PI-2: Composition of actual expenditure compared to the approved budget. PI-4: Stock and monitoring of expenditure payment arrears. PI-11: Orderliness and participation in the annual budget process. PI-15: Effectiveness in collection of tax payments. PI-22: Timelines and orderliness of account reconciliation. v

9 Increased public oversight of government accounts Increased implementation of internal and external audit recommendations Increased number of cases investigated and concluded by the Liberian Anti- Corruption Commission (LACC) Public Accounts Committee (PAC) has held 21 public hearings (total) on GAC audit reports ( ) 10% of internal and external audit recommendations implemented (2015) 12 cases investigated and concluded (2015) PAC holds 12 public hearings annually (2019) >50% of internal and external audit recommendations implemented (2019) 20 cases investigated and concluded (2019) Annual LACC reports Component 2: Enhancing domestic revenue mobilization from the natural resource sector Output 2 : Sector specific training on tax audits for NRTU staff resource sector Increased # tax audits in the natural resource sector Tax audit training conducted for NRTU staff Tax compliance monitoring templates for natural resources developed, deployed, and staff trained on their use Benchmarking visits and secondment of NRTU staff to other revenue administrations to facilitate peer to peer learning, draw lessons and develop applicable solutions for Liberia Production of Manuals on Policies and Procedures in tax audits for the natural resource sector Component 3: Project management No tax audits in the natural resource sector (2015) Less than 25% of tax auditors trained in NRTU (2015) None (2015) None (2015) None (2015) 8 tax audits undertaken annually in the natural resource sector (2019) 50% of NRTU staff undergo tax audit training, ensuring 50% female representation (2019) Tax compliance monitoring templates for natural resources developed, deployed, and staff trained on their use, ensuring 50% female representation (2019) At least two NRTU staff seconded annually to other revenue administrations in Africa for further hands-on training of which one is female (2019) Manuals on Policies and Procedures in tax audits for the natural resource sector produced (2019) LRA/NRTU Progress Reports environment. The weaknesses are especially in the area of corruption due to weak prosecution capacity and sanctions regime. Mitigation: Government has put in place a PFM Act (2009), and PFM Reform Strategy and Action Plan (FY2012-FY2016) that present a broadly credible program for improvement. Plans are also underway implement a new PFM Reform Strategy and Action Plan (FY2017-FY2020) and to grant prosecutorial power to the Liberian Anti- Corruption Commission. The Government s commitment to, and ownership of, reforms is high. Risk 3: Implementation risk. The risk of delayed project take off. Mitigation: To mitigate the negative impact of this risk, the project will continue to be managed by the same RCU which has been instrumental in the successful implementation of IPFMRP and the government is centralizing the implementation of all institutional support projects on PFM through this RCU. vi

10 Enhanced Project Administration and Management with timely preparation and submission of reports, and annual work and procurement plans - # of project progress reports submitted # of financial audit report None - 4 progress reports / year 1 financial report within 6 months after end of each fiscal year RCU generated reports COMPONENTS INPUTS Component 1: Strengthening transparency and accountability in public financial management (UA 3.40 m / US$ 4.73 m) Component 2: Enhancing domestic revenue mobilization from the natural resource sector (UA 2.67 m / US$ 3.70 m) Component 3: Project management (UA.200 / US$ 0.280) ADF Grant : UA 6.27 million (US$ 8.72 m) World Bank /IDA Grant: UA / US$20 m Government (in kind): UA / US$ Total Project Financing: UA m / US$29.67 m vii

11 Liberia: Integrated Public Financial Management Reform Project - Phase II Project Implementation Timeframe ( ) YEAR 2016/ / / /2020 ACTION BY Quarter Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Project Cycle Activities Grant approval Effectiveness Launching workshop Joint supervision and monitoring (IPRs) Mid-term review Disbursement of funds Submission of annual audit reports AfDB project completion report (PCR) All Components General procurement notice published Procurement of goods and technical assistance Provision of training Submission of progress reports PEFA update AfDB GoL AfDB &GoL AfDB AfDB AfDB GoL AfDB GoL GoL GoL GoL GoL viii

12 REPORT AND RECOMMENDATION OF MANAGEMENT OF THE ADB BOARD OF DIRECTORS FOR A PROPOSED GRANT TO LIBERIA TO SUPPORT THE INTEGRATED PUBLIC FINANCIAL MANAGEMENT REFORM PROJECT - PHASE II (IPFMRP II) Management submits the following report and recommendation for a proposed ADF grant of UA 6.27 million (US$ 8.72 m) to finance the Integrated Public Financial Management Reform Project - Phase II (IPFMRP II). The project will help to consolidate the gains achieved from the two previous ISPs and will strengthen the capacity of institutions that promote governance, accountability, and transparency, with an added focus on domestic resource mobilization in the natural resource sector. I STRATEGIC THRUST & RATIONALE 1.1. Project linkages with country strategy and priorities The proposed operation is fully aligned with Liberia s development agenda, the Agenda for Transformation ( ), in particular, Pillars 2-Economic Transformation and 4-Governance and Public Institutions, which are key measures for the achievement of the long-term national vision of Liberia Rising by 2030, as well as the Economic Stabilization and Recovery Plan (ESRP) developed following the Ebola Virus Disease (EVD) outbreak, which also focuses on strengthening public financial management (Pillar III). It is also consistent with the PFM Reform Strategy and Action Plan ( ) 2 which seeks to consolidate PFM reforms while ensuring coordination and alignment of donor interventions to GOL priorities, as well as the emerging PFM Reform Strategy for The intervention is in line with the Bank s Ten-Year Strategy ( ) and aligned with the core operational priority of Governance and Accountability. It is also aligned with Sustainable Development Goal 16 on promoting peaceful and inclusive societies for sustainable development, provide access to justice for all and build effective, accountable and inclusive institutions at all levels. Sound public financial management also cuts across all of the Bank s High-5 priority areas of Light Up and Power Africa, Feed Africa, Industrialize Africa, Integrate Africa, and Improve the Quality of Life for the People of Africa. The operation seeks to improve PFM and natural resource governance as well as Pillar 1 of the Governance Strategic Framework and Action Plan ( ) on enhanced PFM. The project is also aligned with Pillar 2 of the Country Strategy Paper , notably on enhancing governance and the efficient management of resources, and has cross-cutting support for Pillar I on promoting inclusive economic growth through transformative infrastructure investments. This project also has a focus on women economic empowerment and aligned with the Bank Group s Gender Strategy The project is consistent with the ADF 13 operational priorities on governance and accountability, the Bank s strategy for Addressing Fragility and Building Resilience in Africa ( ), 3 the Bussan New Deal for Engagement in Fragile States. Through this project, the Bank will contribute to addressing the country s economic capacity to address the root 2 Liberia s PFM Reform Strategy and Action Plan ( ) will expire on December 31, 2016 and work is in progress on the development of the new PFM Reform Strategy and Action Plan ( ). 3 The focus areas of the strategy on fragile states are strengthening state capacity and support institutions and promoting inclusive and equitable patterns of growth and development. 1

13 causes of conflict, such as: (i) youth unemployment; (ii) rural under-development; and (iii) over-exploitation of natural resources. This project is also linked with the West Africa Regional Integration Strategy Paper ( ) pillar on institutional capacity building particularly through the provision of cross-licensing opportunities for public financial management professionals in Liberia, e.g., cross-licensing of Liberian CPAs in Ghana and Nigeria Rationale for the Bank s involvement With lower economic growth in Liberia following the EVD crisis and the drop in international commodity prices, continued progress on public financial management (PFM) reforms and particularly in domestic revenue mobilization is needed to ensure that limited resources are used efficiently. Although Liberia has made notable progress in PFM reforms and capacity in recent years, particularly with donor support including through the Integrated Public Financial Management Reform Program (IPFMRP), there is a need to consolidate progress made and continue to address challenges to improve transparency and accountability in the PFM system. Strengthened capacity and institutions will be necessary to manage efficiently and transparently government resources in line with its development strategies, to ensure the society benefits from the country s resources, and to increase stability. Improving transparency and accountability is further needed to address perceptions of corruption. Although civil service capacity has improved and numerous sector and reform strategies have been developed, capacity is still weak, and the strategies need to be effectively implemented The GoL has made significant progress across a range of PFM reforms in recent years with the support of development partners including the AfDB through the IPFMRP. These reforms have sought to restore and embed the PFM systems to enable GoL to better implement its development agendas. As presented in Technical Appendix XI, some of the reforms include: the introduction of the Free Balance integrated financial information management system (IFMIS) at the Ministry of Finance and Development Planning (MFDP), with a roll- out to 36 line Ministries and Agencies (M&As); the introduction of elements of a Medium-Term Expenditure Framework (MTEF); enhanced budget transparency through online access to budget documents and quarterly fiscal reports; the establishment of the semiautonomous Liberia Revenue Authority (LRA); the automation of the collection and administration of taxes; the transitioning from an Internal Audit Secretariat into a full Internal Audit Agency that is active in 43 M&As; the establishment of a State-Owned Enterprise (SOE) reporting unit within MFDP; the launch of Treasury Bill auctions; the adoption of a decentralized Treasury Management Framework and county treasuries; and the passage of the GAC Act in 2014, increasing its stability and independence Despite this progress, Liberia still faces serious capacity challenges in PFM. The 2016 PEFA indicated improvement since 2012 in 14 of 31 categories, but ten indicators were still D or D+. A number of key areas still need to be addressed. These include improving budget comprehensiveness to include donor financing; improving the consultative and orderly processes around the budgeting process; institutionalization of the MTEF in line M&As; improving revenue forecasting; strengthening public investment management and monitoring of project execution; improving debt management and coordination; improving fiscal oversight of SOEs; improving fiscal reporting across M&As; full operationalization of a robust cash management framework under a Treasury Single Account; optimizing institutional and business processes to fully benefit from IFMIS and deepening its implementation to cover budget planning, treasury management, and pension management; strengthening the role of the 2

14 Controller and Accountant General (CAG) to oversee controllers in M&As; increasing payroll controls; improving functioning of county treasuries; improving the skills, full integration and utilization of internal auditors in M&As; improving performance of external audit and legislative oversight functions and follow up on audit recommendations. Other PFM capacity challenges include improving public procurement processes; appropriately integrating gender perspectives into PFM; increasing the capacity to investigate corruption cases; strengthening the Financial Intelligence Unit (FIU) to counteract anti-money-laundering and counterterrorism financing; improving regional governance oversight and accountability through the African Peer Review Mechanism (APRM); and continuing institutional reforms and capacity building Improved public financial management and revenue mobilization from natural resources are important for the achievement of the GoL s national development agenda. The natural resource sector contributes approximately 14% of Liberia s GDP and, despite recent downturn in revenues, will continue to be a critical sector of the economy. The LRA has limited capacity to conduct audits and effectively monitor compliance. The delay in resolving some of the regulatory and institutional issues (transfer pricing and beneficial ownership) continue to challenge revenue mobilization. There is a need to strengthen tax compliance, enhance transparency in revenue collection, streamline regulatory policies, build skills for tax and tariff assessments, knowledge on institutional factors affecting natural resource revenue mobilization, as well as knowledge in transfer pricing. Additionally, there is a need to enhance Liberia s progress in transparency of natural resources revenues which has been achieved through the Liberia Extractive Industry Transparency Initiative (LEITI) The proposed IPFMRP II will build on IPFMRP Phase I and pave the way for deeper implementation of the PFM reform agenda through The main achievements under IPFMRP Phase I included enhanced budget planning systems with elements of an MTEF, expanding the coverage of IFMIS to 35 M&As; the preparation, audit, and publication of the Consolidated Fund financial statements; increased consistency in fiscal outturn publication; the expansion of internal auditors into 43 M&As; the Public Accounts Committee (PAC) holding its first seven public hearings on audit reports; and increased transparency of SOEs. The establishment of the LRA in July 2014 has supported improved tax administration, but key capacity challenges continue, with a particular gap relating to natural resource sector taxation which will be addressed by this project. The Bank and other Development Partners value addition under IPFMRP Phase I are detailed in Appendix V Development partners are supporting the finalization of the Government s PFM Strategy for , which will deepen existing reforms and sustain reform momentum into the new administration. The proposed operation will contribute to these efforts and support implementation of the strategy, and address identified weaknesses in the PFM system in Liberia. The proposed operation has been guided by various analytical and diagnostic reports which have identified challenges in the PFM systems, revenue administration, investment management, and debt management, as well broadly identified how to focus support. These studies have included the 2016 PEFA report, the 2016 Public Investment Management Assessment (PIMA), and the 2016 Debt Management Performance Assessment (DeMPA). The Technical Appendix includes a more complete list of all the Analytical Works and Underpinnings used to inform the design of this ISP. 3

15 1.2.7 Social context. The EVD crisis slowed the gains that Liberia had made in reducing poverty and vulnerability during the aftermath of a 10-year civil war. In 2014, GDP growth was 0.7% down from the estimated 8.7% in Iron ore and rubber production which had already slowed down due to lower international prices, were also affected by the ebolarelated quarantines and curfews implemented by the GOL in the bid to contain the ebola crisis. The epidemic resulted in the disruption of production processes across several sectors. Growth in manufacturing continued to be constrained by inadequate electricity and the generally weak business environment. Household incomes suffered from the substantial loss of jobs as businesses were shut down. The fear associated with the ebola outbreak considerably slowed down economic activities with large concession companies suspending their investment plans and relocating some of their expatriate staff out of Liberia. Central to reviving the economy of Liberia is strengthening the capacity of the tax administration to mobilize domestic resources and support government investment in critical infrastructure to spur economic growth. The improved capacity to mobilize domestic revenues will play a central role in reviving the economy, and reduce poverty and vulnerability in Liberia. Improving the efficiency and transparency of PFM is also key to addressing fragility by increasing the ability of the state to deliver services to the people, while also helping to address the negative perceptions about the incidence of corruption. The proposed operation has been guided by various analytical and diagnostic reports such as the recent PFM diagnostic identified in the 2016 PEFA report. The Technical Annexes to this PAR provides the list of the Appendices 1.3. Donor coordination A significant number of development partners currently provide assistance to Liberia through budget support, project funding, pooled funds, and multi-donor trust funds. A PFM Donor Coordination Group, currently chaired by the AfDB, meets monthly with partners including the IMF, World Bank, European Union, USAID, Embassy of Sweden, UNDP, GIZ, Embassy of Norway, the MFDP Reform Coordination Unit (RCU) and other concerned M&As. The existing IPFMRP has integrated support from 5 donors European Union, USAID, Sweden, World Bank, and AfDB in a coordinated PFM reform support program. This has increased the efficiency of support through coordinated supervision missions, project administration, and thereby increasing the efficiency of support for Government and donors while reducing overlap. There is a strong need for building upon this coordinated approach to continue PFM reform. A common monitoring and evaluation framework and operational plan has been developed to guide implementation and coordination of the PFM reforms in Liberia. GoL is committed to improving the effectiveness of aid, by prioritizing coordinated donor financing through a clear institutional arrangement and integrating donor funds into the GoL budget. The different thematic areas of support by the PFM contributing development partners, by funding status, and the areas of complementarity with IPFMRP II are presented in the table below. Table 1.1: Development Partners Intervention and Complementarity with the Project Sources of Financing Total (US$ million) Fiscal Year (s) 4 Funding Status Areas of Complementarity with IPFMRP II EU /2017 Ongoing E-procurement Sweden /2017 Ongoing Inclusive financial governance USAID /2017 Ongoing IFMIS upgrade

16 ADF Grant /18/19 New Budget and expenditure management, IFMIS, revenue management, and inclusive financial governance World Bank/IDA Exp /18/19 New All of the above During the appraisal mission for IPFMRP II, technical consultations were also organized with the relevant development partners in terms of their commitments and prospective areas of future support under the new PFM Reform Strategy ( ). The IMF expressed future capacity building support through LIPA on the MTEF. The EU is likely to support GAC s new professionalization strategy by providing funds for the certification of more auditors, the fiscal decentralization effort through strengthening of the country treasuries, and linking the IFMIS platform with the planned aid management platform. The EU, World Bank, and OECD are also considering design of a transfer pricing scheme for Liberia. With respect to the bilateral agencies, GIZ will be supporting strengthening the interface between the Ministry of Lands and Mines with LRA, by providing systems to connect the monitoring and valuation processes of minerals and precious metals undertaken by the two entities. SIDA also agreed to maintain its commitment to strengthening PFM reforms in Liberia under the new PFM Reform Strategy ( ). II PROJECT DESCRIPTION 2.1. Project Objective and Components Project Objectives: The overarching objective of the project is to strengthen transparency and accountability in public financial management; and enhance revenue mobilization from the natural resource sector. The project objectives are to be achieved through: (i) Upgrade of IFMIS infrastructure to better track budget implementation, revenue collection and government expenditures; (ii) Strengthening the capacity of institutions in PFM; (iii) Capacity building for Debt Management, Macroeconomic Forecasting and Fiscal reporting; (iv) Support to revenue mobilization and Administration; and v) Support to Liberia s integrity and anti-corruption agencies and CSOs involved in promoting accountability through monitoring of PFM processes and Governance in general for more efficient use of national resources Project Components: The project has three components: i) Strengthening efficiency, transparency, and accountability in public financial management; ii) Enhancing domestic revenue mobilization from the natural resource sector; and iii) Project management. The major activities under the components are summarized in Table

17 Components 1. Strengthening efficiency, transparency, and accountability in public financial management UA 3.40 m (US$ 4.73 m) 2. Enhancing domestic revenue mobilization from the natural resource sector UA 2.67 m (US$ 3.70 m) Table 2.1: Summary of Project Activities by Component Description of Project Activities by Sub-Component Sub-component 1.1: IFMIS infrastructural upgrade Assessment of the data centre infrastructure upgrade needs Procurement and installation of hardware: servers, local area network, microwave radios, switches in counties with high transaction volumes. Procurement and installation of software: operating system s business productivity, virtualization, network management and security applications Sub-component 1.2: Strengthen the PFM capacity of beneficiary institutions Development of HR manual for operationalization of the Comptroller and Accountant General s office and provide hardware and software Conduct refresher training for 50 internal auditors and procure equipment for Internal Audit Agency Increase the capacity of State-Owned Enterprise Financial Reporting Unit and develop an asset registry to consolidate State-Owned Assets Support capacity building programs for Liberian Institute for Public Administration (LIPA) Support professional accounting credentialing programs with emphasis on International Financial Reporting Standards at the Liberian Institute of Chartered Public Accountants (LICPA) Procure office equipment and conduct public hearings led by the Legislative Budget Office (LBO) Procure hardware and software for use by the Public Accounts Committee (PAC) Provide training in anti-corruption programs at the Liberian Anti-Corruption Commission (LACC) and undertake asset verification of existing government officials Increase capacity in macro-economic analysis and forecasting, debt management and sustainability analysis, and aid management Roll out the Aid Management Platform (AMP) to donors, and undertake training in Project Management Sub-component 2.1. : Strengthen revenue mobilization from the natural resource sector Pay subscription to mineral price and cost data bases to Platts Data base Via Thomson Reuters Eikon platform, as well as Baltic exchange Develop Terms of reference and procure the services of the mineral valuation expert to conduct training for staff at the Liberian Revenue Authority (LRA) Procure equipment to facilitate grading and sorting of minerals by the Office of precious minerals at the Ministry of Lands, Mines & Energy Procure the services of a technical expert to conduct specialized training and technical support in the natural resource sector Organize peer to peer learning visits and secondments on tax administration systems in the natural resource sector (Botswana, South Africa and Ghana) Procure the services of the external professional firms to conduct effective tax audits in the natural resource sector Support audits for selected companies in the natural resource sector Sub-component 2.2 Enhancing transparency and monitoring of PFM processes for more efficient use of national resources Recruit a consultant to conduct scoping of LEITI s transition to the new 2016 EITI Standards Recruit LEITI consultant to examine the licensing and revision processes of concession agreements & Beneficial Ownership Disclosure 6

18 3.. Project management UA 0.20 m ( US$ 0.28 m) Produce the 9 th, 10 th, and 11 th EITI reconciliation report for Liberia on royalties and tax payments to government and the receipt thereof Town Hall meetings in the 15 counties to promote sensitization on the importance of Tax Payments and GOL Revenue Mobilization (APRM) Train 10 staff of APRM Secretariat staff and 3 National Governing Council members in effective sensitization and community outreach on revenue mobilization Organize and host 6 policy dialogues to strengthen policies on the natural resource sector with stakeholders and publish policy briefs on the GC website (GC) Conduct two public policy studies on issues regarding the natural resource sector (GC) Support the Financial Intelligence Unit (FIU) gather intelligence and conduct investigation on illicit financial activities in the natural resource industries Design and develop software, database and hosting services for FIU Conduct training sessions on the effective use of software and database (FIU) Organize awareness and sensitization sessions on anti-money laundering and counter-terrorism financing regimes (FIU) Preparation of annual work plans and procurement plans Procurement of project goods and services Project Supervision, monitoring and reporting Preparation of Annual Project Audits and Project Completion Reporting 2.2. Technical solution retained and other alternatives explored During project preparation and appraisal, four options were explored regarding the modality for delivery of the support to Liberia s Integrated Public Financial Management Reform Project. The first option considered was the delivery of the grant as a budget support; the second was the delivery of the project as a standalone investment project to be managed as ADF portfolio; the third was Grant delivery under a Technical Assistance Arrangement; and the fourth was as a Grant support delivery under existing the MoU arrangement with the World Bank and Government. Option 4 was retained due its advantage over the first three options. The preferred option in which Partners funds are pooled to pursue the same objective can benefit from portfolio management and implementation synergy. It also promotes aid coordination. The option also better addresses Government s programmatic approach to addressing the PFM reform challenges as identified in the recent PFM reform Country Concept Paper 2016 (See Appendix XII). Unlike the first three options, the selected option provides better opportunity for national capacity building in PFM and monitoring and implementation. The selected option was also based on lessons learnt in project implementation in Liberia, including the need to minimise project coordinating units through more efficient use of available in-country expertise and the need to build capacity of existing institutions; and place more focus on ensuring program sustainability and improve coordination with other development partners In terms of the funding modality, the proposed operation has adopted the pooled fund arrangement including use of the existing Reform Coordination Unit in MFDP to minimise transaction costs and improve development effectiveness. In 2011, to minimise the burden of having a large number of individual projects, GOL developed the comprehensive PFM Reform Strategy and requested donors to provide support on a harmonised basis into a single reform project. The World Bank, USAID, SIDA, and AfDB led the way in the development and implementation of the IPFMRP Phase I multi-donor support on which the 7

19 first operation was based. Consistent with the Bank s commitment to provide a coordinated and harmonised donor support to PFM reform, the proposed operation will use the existing modality for channelling funds through the pooled funding arrangement and the special account maintained at the Central Bank of Liberia. The relative advantages and disadvantages of different funding modalities are summarized below. Table 2.2: Project Alternatives Explored Modality Advantages Disadvantages Option 1 Delivery of the grant as a budget support Option 2 Delivery of the project as a standalone investment project to be managed as ADF portfolio Option 3 Grant delivery under a Technical Assistance Arrangement Option 4 Grant support delivery under the existing MoU arrangement with the World Bank and Government Fast disbursing and ease of access of funds to the Government of Liberia High degree of control and accountability of funds provided Will use the Bank s disbursement, supervision, financial management and procurement processes High degree of control and accountability of funds In line with current good donor practice Substantially reduced administrative burden on the Government of Liberia Greater assurance that key parts of the PFM strategy will be funded Supports effective coordination of the reform program and common approaches to implementation High level of control over the use of project funds The disbursement of funds into the Consolidated Revenue Fund would not necessarily address the PFM challenges in Liberia Will create significant administrative burden for the Government of Liberia May lead to weakened aid coordination and synergy with the overall reform program Not in line with current good practice donor harmonization and maximizing aid effectiveness in fragile states Significant administrative burden for the Government of Liberia Relatively reduced level of direct control over project funds although AfDB would be a key player in the joint donor working group 2.3. Project type IPFMRP II is designed to strengthen the capacity of key public institutions engaged in public financial management under the existing MOU arrangement with the 8

20 World Bank and Government. It will help in consolidating the gains from the previous two phases and address the new emerging challenges. The project will deliver improved capacity and institutional development through a range of interventions including focussed skills transfer from technical advisors, delivery of a range of training and skills development courses and strengthening of local training capacity Project cost and financing arrangements The AfDB shall provide a grant of UA 6.27 million (US$ 8.72) to finance IPFMRP Phase II. The GoL will contribute 10% of the total cost of the project (UA m) in-kind, as counterpart fund to pay the salaries of project management staff deployed from the Ministry of Finance and other government Departments, making the overall project cost of UA 6,897 million (US$ 9,337). GoL contribution will also include the cost of running and maintaining project vehicles that have been provided by the government, and the cost of office utilities. The tables presented below provide the summary cost tables for the project Detailed Cost Estimates: Tables 2.3 to 2.5 provide the categories of eligible expenditures that will be financed over the project life. Table 2.3: Project Cost Estimates by Component Table 2.2: Project Cost Estimates by Component (in Thousand UA) (USD Thousands) (UA Thousands) COMPONENT LC FC Total LC FC Total 1. Strengthening transparency and accountability in public financial management % of Total 1,892 2,838 4,730 1,360 2,040 3,400 54% 2. Enhancing domestic revenue mobilization from natural resource 1,480 2,220 3,700 1,068 1,602 2,670 42% sector 3. Project management 0,280 0,000 0,280 0,200 0,000 0, % Total Baseline Costs 3,372 5,058 8,430 2,628 3,642 6,270 99% Physical contingencies 0,05 0,100 0,150 0,050 0,50 0,1000 Price contingencies 0,040 0,100 0,140 0,050 0,050 0,1000 Total Project Cost 3,462 5,258 8,720 2,728 3,742 6, % GoL in-kind contribution of 10% 0,627 0,627 Overall Project Cost 3,462 5,258 8,720 3,355 3,742 6,897 FC: Foreign Costs: LC: Cost Costs 9

21 Table 2.4: Project Cost Estimates by Sources of Financing Table 2.3: Sources of Financing (in million UA) Sources of Financing Foreign Local Total % of total ADF and TSF 3,642 2,628 6,270 90% GoL in-kind contribution of 10% - 0,627 0,627 10% Overall Project Cost 6, % Table 2.5: Expenditure Schedule by Component (in UA million): ADF financing Table 2.5: Expenditure Schedule by Component (in million UA) (ADF financing COMPONENTS PY1 PY2 FY2 Total 1. Strengthening transparency and accountability in public financial management 0,884 1,700 0,816 3, Enhancing domestic revenue mobilization from natural resource sector 0,667 1,335 0,668 2, Project management 0,050 0,100 0,050 0,200 Total Baseline Cost 1,595 3,135 1,534 6,270 Contingencies 0,0050 0,01 0,0050 0,020 Total Project Cost 1,600 3,136 1,536 6,270 GoL in-kind contribution of 10% 0,209 0,209 0,209 0,627 Overall Project Cost 1,809 3,345 1,745 6, Project s target area and immediate beneficiaries This ISP shall confer benefits to the entire country, but there are two direct beneficiary institutions for this project: (i) the Ministry of Finance and Development Planning s (MFDP) PFM Reform Coordination Unit (RCU) which coordinates PFM reform activities within MFDP, line M&As; and oversight and integrity institutions; and (ii) the Liberian Revenue Authority (LRA). The RCU will coordinate the activities of all targeted entities. Within MFDP, the targeted units include, amongst others, the Department of Economic Management, Debt Management Unit, Macroeconomic Policy Unit, Aid Management Unit, the Budget Department, the Fiscal Affairs Department, the Comptroller and Accountant General s Office, the State-Owned Enterprise Financial Reporting and Coordination Unit. Outside MFDP and line M&As, entities to benefit from this ISP include the Internal Audit Agency, Legislative Budget Office, Public Accounts Committee, Public Procurement and Concessions Commission, the Liberian Anti-Corruption Commission, and the General Audit Commission. Some professional institutions will also be supported: the Liberian Institute of Public Administration, Liberia Institute of Certified Public Accountants, Financial Management Training Program, Liberian Extractive Industry and Transparency Initiative, the Governance Commission, and the African Peer Review Mechanism Secretariat. 10

22 2.6. Participatory process for project identification, design, and implementation During the preparation mission of the project, consultations were held with the beneficiary institutions and the donors listed above. To ensure that a harmonized and collaborative approach was undertaken to support the government s PFM reform strategy, consultations were also held with civil society organizations and other relevant stakeholders to solicit their views on their engagement in this operation Bank Group experience and lessons reflected in project design As of June 30, 2016 the overall rating of the Bank s portfolio in Liberia was satisfactory, with an overall rating of 3.0. The performance rating for Implementation Progress (IP) and Development Objectives (DO) had average scores of 3.01, and were satisfactory. The main recommendations that emerged from the 2016 Country Portfolio Improvement Plan (CPIP) for Liberia relate to the following: i) need to improve quality at entry to accelerate project effectiveness after approval and project take-off; ii) need to ensure that all operations are appraised based on recent feasibility and design studies; iii) need to build the capacity of PIU staff in procurement and contract management; iv) need to closely follow up on annual work implementation, and budget and procurement plans preparation; v) need to reduce implementation slippages through desk and field supervision; and vi need to hold monthly review meeting on outcome of monitoring of project performance, including the performance of contractors and other service providers. In designing this project, the above key lessons learnt were taken into account. To accelerate project effectiveness, the existing Project Implementing Unit with experience in Bank procedures shall be retained to coordinate the project. Joint supervision will be undertaken based on the pooled fund arrangement and the MoU between the AfDB and the World Bank. The project as designed has provided adequate resources to beneficiary institutions for project staff training to enhance the delivery of the expected outputs. The project design was also guided by the GoL concept paper on the expected thrust of the GoL strategy on PFM that is under preparation. 4 The new PFM strategy is being developed by the MFDP in close collaboration with the IMF and World Bank, taking into account the specific circumstances of Liberia and its fragility. The lessons learned are summarized below. 11

23 Table 2.6: Lessons learned from previous operation and other analytical reports Lessons Learned Low levels of in-country capacity had a negative impact on implementation, and serious attention should be given to the design and staffing of the structures established to coordinate and manage PFM reforms The importance of strong coordination arrangements for PFM reform is critical for successful delivery. Fragmented donor interventions and project management requirements have placed a huge burden on scare budgetary resources and diverted very limited PFM expertise to servicing donor requirements as opposed to contributing to improving the PFM reform agenda. The piecemeal approach to capacity development and separate donor funding and reporting arrangements creates unacceptable administrative burdens on limited PFM capacity in fragile states The joint evaluation of African PFM reforms identified institutional and contextual factors that contribute to successful PFM reforms. One of the key messages is that donors should align support as closely as possible to the government program and avoid pursuing independent initiatives. Externally financed support to PFM reform was most efficient and effective, when identified explicitly within the government s PFM reform program. Actions taken to integrate lessons into the project This project will be directly based on the Government of Liberia s PFM Reform Strategy and Action Plan which includes detailed work plans taking into account both technical and human resource requirements and limitations. This ISP will contribute to a multi-donor support program to the PFM Reform Strategy and Action Plan. There is broad consensus on reform priorities as well as mechanisms to improve donor coordination. A detailed Operational Manual and Cooperation Framework has been developed to improve coherence and coordination among donors and between the PFM donor working group and the Government of Liberia. This will greatly reduce the reporting and project management burden on government. The Liberia Field Office will enhance further country dialogue and donor coordination. This proposed operation will provide joint funding to a multi-donor, integrated and coordinated PFM reform program in which every attempt has been made to minimize the burden of multiple reporting and monitoring arrangements and reduces the risk of uncoordinated interventions. This program is directly aligned with the PFM Reform Strategy and Action Plan. It is designed around the needs and priorities identified by the government through an extensive review, consultation and planning exercise. As one of the largest donors in Liberia and as signatory to the Paris Declaration and Busan New Deal for Engagement in Fragile States, the proposed operation will be delivered through the pooled funding arrangement IPFMRP Phase I Pooled Fund Implementation Arrangements Specific Lessons Learned The ongoing IPFMRP is being implemented using a pooled co-financed Multi-Donor Trust Fund arrangement of US$ 28.6 m that includes the World Bank/IDA (US$ 5 m), SIDA (US$ 15.1 m), and USAID (US$ 3.85 m). Under the current joint MOU, the GOL and the co- 12

24 financiers agreed to use World Bank procurement rules and procedures, with the World Bank/IDA Task Team Leader serving as the main administrator of the Multi-Donor Trust Fund. So far, the project implementation arrangement under the pooled account has been satisfactory The main lessons that emerged from IPFMRP Phase I pooled fund implementation arrangements include: (i) the pooled fund leveraged AfDB s investment into a broader, coordinated PFM plan that harmonized programs from several donors and reduced the implementation cost on donors and government, particularly for small grants aimed at achieving similar objectives; and (ii) ADB s participation in the pooled fund enhanced donor coordination in Liberia. To improve the existing collaboration under the pooled fund, it was agreed during the project appraisal that the existing reporting format of the pooled fund will be improved to highlight the contributions of all partners to Liberia s PFM reform program Key performance indicators The key performance indicators and the expected outcomes at project completion are outlined in the results-based logical framework. In the short to medium-term, the expected project outcomes are: (i) improved fiscal discipline, efficiency, and oversight based on 5 PEFA scores of better than D/D+; and (ii) enhanced domestic revenue mobilization based on improved governance of the natural resource sector. The table below provides a list of the selected PEFA scores to be monitored for improved performance under IPFMRP Phase II. Table 2.7: Selected PEFA scores to be monitored for improved performance under IPFMRP Phase II Selected PEFA Scores 2007 Score 2012 Score Score 2016 Score Score PI-2 Composition of actual expenditure compared to approved D D+ D+ budget PI-4 Stock and monitoring of expenditure payment arrears D+ B D+ PI-11 Orderliness and participation in the annual budget process B B D+ PI-15 Effectiveness in collection of tax payments D+ D+ D+ PI-22 Timelines and orderliness of account reconciliation D C D Progress will be measured on a regular basis, through joint supervision missions, review of Quarterly Progress Reports, review of specific outputs such as audit reports, and Minutes of meetings from the RCU, which will also be an important vehicle for donor coordination across the whole PFM Reform Strategy. Objectively verifiable evidence of progress against meeting the targets will be obtained from World Bank and IMF Mission Reports, and governance indicators. Collection and analysis of information to monitor performance will be the responsibility of the RCU. The RCU is responsible for ensuring that information is collected to assess all targets and indicators against the logframe and for preparing the comprehensive program performance reports. 13

25 III PROJECT FEASIBILITY 3.1. Economic and financial performance As an ISP, identifying and quantifying the direct and indirect economic and financial benefits of capacity building interventions is complicated and it is often difficult to carry out rigorous cost-benefit economic and financial analysis. While the costs are quantifiable, the benefits are indirect, and ultimately achieved in the improved public financial governance, service delivery and better performance of the targeted public financial management institutions The economic justification of the proposed operation is its contribution to a better functioning government through improved PFM and capacity to implement the national development strategy. The benefits of the project will flow from improved domestic revenue mobilization, strengthened budget credibility, budget execution, improved internal controls, enhanced oversight, and increased transparency in the management of public resources. The project will also support the development of human resource capacity, thereby ensuring that the benefits will be sustained over time Environmental and social impact Environment. Given that the project is an institutional support project, providing capacity building to government institutions, the operation is not expected to have any direct adverse environmental impact. The project is classified as Category Climate Change. The project activities, which focus on building human and institutional capacity, have no adverse impact on climate change Gender. The Government of Liberia is committed to gender mainstreaming by promoting adherence to the United Nations Security Council Resolution 1325 (2000) on rebuilding institutions in post-conflict societies. This ISP will also support the implementation of the 2009 National Gender Policy and Civil Service Reform Strategy by training more females in PFM. IPFMRP II will ensure that the training program provided through this operation will be made available to all middle to senior level women in beneficiary institutions. The project will promote gender balance in its activities and ensure that women s participation in training reach at least 50% of all eligible female employees (i.e. 50% of middle to senior women professionals in PFM) Social. The aim of the project is to enhance government capacity to implement reform and manage public resources efficiently and effectively. This will strengthen and leverage the impact of the national budget on delivery of services, and poverty reduction through increasing efficiency and effectiveness of resource allocation and budget execution in line with the national economic growth and poverty reduction strategy. A sound PFM system matters to help ensure that budget planning are compatible with macroeconomic stability, and that there is a firm basis for high quality services to be provided to the public Private Sector. The project will contribute positively to private sector development through improved fiscal management. Improved financial governance, particularly creating 14

26 greater clarity on the level of tax liability of companies operating in the natural resource sector will improve investor confidence and the future of the Liberian economy. 3.3 Fragility Analysis Despite progress since the end of the civil war in 2003, Liberia remains a fragile state with limited access to basic social services and infrastructure development. The country s economic capacity to address the root causes of fragility still persists, such as: (i) high youth unemployment; (ii) negligence of rural development; and (iii) over exploitation of natural resources. In addition to the above challenges, GoL would need to step up its efforts at national reconciliation that is essential for sustainability of peace The alleviation of fragility can be addressed through the expansion of opportunities, devolution of power, and inclusion of majority views into decision making processes. With many of these factors complementary and overlapping, progress must be made to simultaneously address these issues for sustainability and consolidation of existing peace. While the country has enjoyed peace and stability for over ten years, the citizens blame government inability to deliver on social services as well as the high youth unemployment. This situation could get worse if the current fiscal deficit persists. Hence this ISP is timely and essential to support the key PFM challenges, and revenue mobilization from the natural resource sector. More details on the country s fragility analysis is presented in Appendix XV. IV IMPLEMENTATION 4.1. Implementation arrangements Institutional Arrangements The project will be managed by the existing PFM Reform Coordination Unit (RCU), under the current IPFMRP arrangement. The unit is managed by a Project Coordinator and comprises other staff including a Deputy Coordinator, a Financial Management Specialist, M&E Officer and an International Procurement Specialist. The unit is further assisted by Financial Management Officers. There is a Project Technical Committee that meets monthly to discuss issues affecting project implementation. The Project Steering Committee is chaired by the Minister of Finance and Development Planning and meets quarterly. The Project Financial Management Unit at the Ministry of Finance and Development Planning will handle all fiduciary matters. The coordination with the other DPs will take place through the joint PFM Working Group that meets quarterly to review plans and implementation progress. A common monitoring and evaluation framework, and an operational plan have been developed to guide implementation and coordination of the reforms. One key element of this operation is the Memorandum of Understanding (MOU) in relation to the Pooled Account between the Government of the Republic of Liberia, the African Development Bank and the World Bank. A new MOU that is aimed at extending the current collaboration under the pooled fund has been prepared Financial Management The Ministry of Finance and Development Planning (MFDP) which has responsibility for the PFM Reform Coordination Unit, will lead the delivery of all project components except those under the General Auditing Commission (GAC) related to GAC staff capacity 15

27 building under Sub-component 1.3 on Support to Integrity and Oversight Institutions, whereby the GAC will manage its own activities. Financial management of the MFDP managed components will be handled by the Project Financial Management Unit (PFMU) while the GAC Finance Department will manage accounting for the GAC component. The PFMU and RCU handled the IPFMRP Phase I, and currently provides financial management services for more than eighty AfDB, World Bank, and other donor-financed projects in the country. The GAC has a stand-alone Finance Department headed by a Chief Financial Officer that manages GAC s own budget. The GAC Finance Department was also responsible for the successful financial management of the GAC component of IPFMRP Phase I. The GAC was set up in 2005, while the PFMU was established by the World Bank in 2006 and both have been in existence for a considerable period of time. Both MFDP and GAC have controls in place that provide reasonable assurance on the accuracy and timeliness of reports generated by both. Technical Annex VII provides more details on the financial management and the fiduciary risk analysis undertaken for IPFMRP Phase II. The assessment of both the MFDP and the GAC concluded that there is sufficient FM capacity to ensure: (a) that project funds are used only for the intended purposes in an efficient and economical way; (b) the preparation of accurate, reliable and timely periodic and annual financial reports; (c) that any assets purchased using project funds are adequately safeguarded. The project FM Risk was assessed as moderate Disbursement Disbursement will make use of the Special Account modality with a segregated USD pooled account to be domiciled in the Central Bank of Liberia for use by the cofinancing partners. In line with the MOU, the partners will contribute to the pooled fund. The Special Account will disburse only towards meeting eligible expenditures for the project. Replenishments will be in accordance with the Bank s Disbursement Handbook and the applicable guides in the MOU with the co-financiers. The reimbursement guarantee may be used for imports. Technical Annex VII provides details of the financial management and joint financing arrangements Audit The proposed project will continue to use the GAC to audit project funds, although a private professional firm of auditors will still be required to audit the GAC component of the project. The private audit firm will be hired on TORs approved by the co-financing partners, using selection procedures agreed upon in the signed MOU. Both audit reports, supported by the relevant management letters, will be required to be submitted to the Bank and the other co-financing partners annually and within six months of the end of the year audited. The details of the audit arrangements are set out in Technical Annex VII Procurement Arrangements The RCU will have overall responsibility to carry out the procurement management functions including preparing procurement plans, contract administration and the procurement monitoring process. In line with the Paris Declaration on Aid Effectiveness (2005), Accra Agenda for Action (2008), and Busan High Level Forum on Development Effectiveness (2011), the proposed operation will adopt the common implementation and procurement arrangement with IDA as the implementing partner for the pooled account. Thus, procurement 16

28 will be carried out using the World Bank procurement guidelines and joint supervision missions will be undertaken. To that end, IDA will serve as primary focal point regarding procurement matters, in consultation with the AfDB. The modalities followed in using the World Bank Procurement Guidelines in lieu of the Bank s are described in the Technical Appendices. In addition, the MOU provides details of the joint implementation arrangement and Bank s fiduciary oversight responsibility. Under IPFMRP Phase I, use of the World Bank Procurement was justified based on the following reasons: (i) AfDB and World Bank have harmonized their procurement policies, procedures and standard bidding documents; (ii) The World Bank s operational framework for dealing with complaints is reliable and similar to that of AfDB; (iii) AfDB and IDA are both signatories of the Cross-Debarment Agreement aimed at ensuring, beyond the mutual recognition of sanctions, the application by each participating institutions of core principles in its internal mechanism for addressing and sanctioning violations of its anti-corruption policies Monitoring and Evaluation MFDP will be responsible for the overall monitoring and evaluation activities in collaboration with the project component managers and beneficiary institutions. AfDB and other partners will undertake bi-annual supervision missions as part of the common implementation framework. Project implementation is scheduled to span 3 years, from January 2017 to December The government will have to submit quarterly progress reports on the implementation of the project. The quarterly progress reports will present the status of physical and financial implementation and highlight any problems that might hamper smooth project implementation. The reports will review progress made in light of the project s Results-Based Logical Framework and include a clear presentation of activities undertaken during the period under review. The reports will also analyze to what extent the activities undertaken have contributed to the realization of the anticipated project development objectives. RCU will also be required to prepare and submit to AfDB, a Project Completion Report within six months of the final disbursement. Table 4.2: Project Implementation Schedule Timeframe Milestone Monitoring process November 2016 Grant approval AfDB December 2016 Effectiveness GoL December 2016 Launching workshop AfDB & GoL December 2016-December 2019 Procurement of goods and services GoL, AfDB, World Bank March 2017 Joint supervision and monitoring AfDB June 2018 Mid-term review AfDB December 2016-December 2019 Disbursement of funds AfDB December 2019 Project completion report AfDB 17

29 4.3. Governance The project will significantly contribute to good fiscal and public financial governance, particularly through human resource development and technical assistance provided to RCU. The project will improve the quality and timeliness of public accounting and auditing and contribute to improved domestic and international confidence in institutions of governance in general. Furthermore, strengthened financial management institutions and processes will lead to increased accountability, reduced public sector corruption and more efficient use of public resources for poverty reduction. The main risks to project governance arise in procurement decisions, use of project assets and selection of persons to attend training and capacity building events. Risks will be mitigated through the preparation of a detailed procurement plan, robust processes for contractors and participant selection and application of the agreed procurement rules and procedures. Procurement plans will be prepared by the RCU on the basis of agreed program plans. Financial management of procurement related expenditure will be carried out by the PFMU. Further training will be provided to RCU and PFMU staff to ensure that they are fully aware of all requirements and regulations. Compliance with these controls will be reviewed during supervision missions. An independent audit will be undertaken every year. 4.4 Sustainability Sustainability is ensured through a number of factors included in the project design and approach. These factors comprise: (i) Capacity building initiatives that will help government officials to produce high PFM products on time (PFM strategy, PFM progress reports); (ii) Development of tailor made manuals, working practices and tools for continued use. In addition, the project will help create conditions for macroeconomic stability by contributing to increased revenue and enhanced fiscal discipline. 4.5 Risk management The table below outlines the residual risks and mitigation measures. Table 4.5: Summary of Risks and Mitigation Measures Risks Level Mitigation measures Risk 1: Capacity constraints: Weak institutional and human resources capacity could cause delays or hamper implementation. Risk 2: Fiduciary Risks: Government has made notable progress in improving PFM, but there are still weaknesses in the fiduciary and control environment. The weaknesses are especially in the area of corruption due to weak prosecution capacity and sanctions regime. Moderate Moderate Mitigation 1: This support is based on a recent assessment of implementation capacity in general and the sequenced PFM Reform Strategy. The project will provide additional project management capacity and technical assistance. Mitigation 2: Government has put in place a PFM Act (2009), and PFM Reform Strategy and Action Plan (FY2012-FY2016) that present a broadly credible program for improvement. Plans are also underway implement a new PFM Reform Strategy and Action Plan (FY2017- FY2020) and to grant prosecutorial power to the Liberian Anti-Corruption Commission. The Government s commitment to, and ownership of, reforms is high. 18

30 Risk 3: Implementation Risk: The risk of delayed project take off Knowledge building Low Mitigation 3: To mitigate the negative impact of this risk, the project will continue to be managed by the same RCU which has been instrumental in the successful implementation of IPFMRP and the government is centralizing the implementation of all institutional support projects on PFM through this RCU. The project will strengthen public financial management. Knowledge will be acquired through skills transfer from technical assistance, as well as through formal and informal training on the job, locally and regionally. Knowledge will also be built through direct hands on support from program advisors to enable beneficiaries to undertake their day to day work. The project will also help to develop guidance manuals, automated financial management systems and various reporting tools and models, such as the MTFF and macroeconomic models, internal audit manuals and IFMIS reporting tools. It will support knowledge and diagnostic work through training on PEFA self-assessment and monitor the quality of public financial governance in Liberia. Specific arrangements to ensure that knowledge is transferred will include assigning counterpart staff to work with external consultants, evaluating technical assistance based on performance on knowledge transfer, and building local capacity in Liberia. V LEGAL INSTRUMENTS AND AUTHORITY 5.1. Legal instrument The bilateral Protocol of Agreements between the Government of Liberia, ADF, and TSF will be signed by the parties concerned. The instrument is an ADF-13 PBA Grant of UA 3.19 m, and ADF-13 TSF Pillar III Grant of UA 1.00 m. It also includes the unused balances reallocated from the Liberia: Labor-Based Public Works Project and these funds include the ADF-10 PBA Grant of UA 0.88 m; ADF-10 TSF Pillar I Grant of UA 1.07 m; and ADF-10 TSF Pillar III Grant of UA 0.12 million Conditions associated with Bank s intervention The Protocol of Agreements will come into effect on the date of its signature by the Government of Liberia and the African Development Fund. The first disbursement of grant resources will be contingent on the effectiveness of the Protocol Agreement and subject to entry into force of the Protocol of Agreement. 5 The unused balances reflect the reallocated funds from the Liberia: Labor-Based Public Works Project approved on December 8, 2007 under ADF-10 (Grant Number ). 19

31 5.3. Compliance with Bank Policies In view of the need to adopt a joint financing modality and harmonized implementation arrangements, it is recommended that the Board of Directors approves a waiver to apply the World Bank Rules and Procedures for procurement of all eligible expenditures specified in this Appraisal Report. The project complies with all applicable Bank policies. VI RECOMMENDATION Management recommends that the Board of Directors approves UA 6.27 m (US$ 8.72 m), including the ADF-13 PBA Grant of UA 3.19 m, and ADF-13 TSF Pillar III Grant of UA 1.00 m. Management also recommends that the Board of Directors approves the utilization of the unused balances from the Liberia: Labor-Based Public Works Project for utilization under IPFMRP Phase II for the purposes and conditions stipulated in this report, i.e., ADF-10 PBA Grant of UA 0.88 m; ADF-10 TSF Pillar I Grant of UA 1.07 m; and ADF-10 TSF Pillar III Grant of UA 0.12 million. 20

32 % LB APPENDIX 1 COMPARATIVE SOCIO-ECONOMIC INDICATORS Liberia Selected Macroeconomic Indicators Indicators Unit (e) 2016 (p) National Accounts NY.GN GNI at Current Prices Million US $ 549 1,305 1,508 1,589 1, NY.G N Y GNI per Capita US$ NY.GN GDP at Current Prices Million US $ 661 1,538 1,802 2,603 2,053 2,750 2,869 NY.GN GDP at 2000 Constant prices Million US $ ,045 1,052 1,057 1,086 NY.GN Real GDP Growth Rate % NY.GN Real per Capita GDP Growth Rate % NE. N Gross Domestic Investment % GDP E NE. N Public Investment % GDP E Ded N Private Investment % GDP E NY.G N Gross National Savings % GDP Y Prices and Money FP.C F P Inflation (CPI) % PA. P Exchange Rate (Annual Average) local currency/us$ FM. F Monetary Growth (M2) % M FM.L F Money and Quasi Money as % of GDP % M GB. G C GB. G C GB. G C Government Finance Total Revenue and Grants % GDP Total Expenditure and Net Lending % GDP Overall Deficit (-) / Surplus (+) % GDP External Sector TX.QT Exports Volume Growth (Goods) % TM. T Imports Volume Growth (Goods) % TT.PT T erms of T rade Growth % BN. B Current Account Balance Million US $ , BN. B Current Account Balance % GDP FI.RF External Reserves months of imports Debt and Financial Flows DT.SD Debt Service % exports DT. D External Debt % GDP DT.ND Net Total Financial Flows Million US $ ,086-1, DT.OD Net Official Development Assistance Million US $ BN. D Net Foreign Direct Investment Million US $ , Real GDP Growth Rate, Inflation (CPI), ,0 04 Current Account Balance as % of GDP, ,0 05 2,0 06 2,0 07 2,0 08 2,0 09 2,0 10 2,0 11 2,0 12 2,0 13 2,0 14 2,0 15 2,0 16 Source : AfDB Statistics Department; IMF: World Economic Outlook, October 2015 and International Financial Statistics, October 2015; AfDB Statistics Department: Development Data Portal Database, March United Nations: OECD, Reporting System Division. Notes: Data Not Available ( e ) Estimations ( p ) Projections Last Update: April 2016 I

33 Liberia PROGRESS TOWARD ACHIEVING THE MILLENNIUM DEVELOPMENT GOALS Goal 1: Eradicate extreme poverty and hunger Employment to population ratio, 15+, total (% ) Malnutrition prevalence, weight for age (% of children under 5) Poverty headcount ratio at $1,25 a day (PPP) (% of population) Prevalence of undernourishment (% of population) Goal 2: Achieve universal primary education Literacy rate, youth female (% of females ages 15-24) Literacy rate, adult total (% of people ages 15 and above) Primary completion rate, total (% of relevant age group) Total enrollment, primary (% net) Goal 3: Promote gender equality and empower women Proportion of seats held by women in national parliaments (% ) Ratio of female to male primary enrollment Ratio of female to male secondary enrollment Goal 4: Reduce child mortality Immunization, measles (% of children ages months) Mortality rate, infant (per 1,000 live births) Mortality rate, under-5 (per 1,000) Goal 5: Improve maternal health Births attended by skilled health staff (% of total) Contraceptive prevalence (% of women ages 15-49) Maternal mortality ratio (modeled estimate, per 100,000 live births) Goal 6: Combat HIV/AIDS, malaria, and other diseases Incidence of tuberculosis (per 100,000 people) Prevalence of HIV, female (% ages 15-24) Prevalence of HIV, male (% ages 15-24) Prevalence of HIV, total (% of population ages 15-49) Goal 7: Ensure environmental sustainability CO2 emissions (kg per PPP $ of GDP) Improved sanitation facilities (% of population with access) Improved water source (% of population with access) Goal 8: Develop a global partnership for development Net total ODA/OA per capita (current US$) Internet users (per 1000 people) Mobile cellular subscriptions (per 1000 people) Telephone lines (per 1000 people) Employment to population ratio, 15+, total (%) SL.EMP.TOTL.SP.ZS Primary completion rate, total SE.PRM.CMPT.ZS Ratio of female to male primary enrollment SE.ENR.PRIM.FM.ZS Mortality rate, infant (per 1000 live births) SP.DYN.IMRT.IN Maternal mortality ratio (modeled estimate, per 100,000 live births) SH.STA.MMRT.NE Incidence of tuberculosis (per 100,000 people) SH.TBS. INCD Improved water source(%) SH.H 2O.SAFE.TO.ZS Mobile cellular subscriptions (per 1000 people) IT.CEL.SETS.P3 Sources : ADB Statistics Department Databases; World Bank: World Development Indicators; last update : UNAIDS; UNSD; WHO, UNICEF, WRI, UNDP; Country Reports, Note : n,a, : Not Applicable ; : Data Not Available, 1 Latest year available in the period ; 2 Latest year available in the period ; 3 Latest year available in the period May, 2014

34 APPENDIX 1I (A) AFDB PROJECTS IN THE BANK S PORTFOLIO IN LIBERIA (AS OF JULY 30, 2016) No Project Name Approval date Closing date Amount (UA mil) Agriculture and Rural Development 1 Agriculture Sector Rehabilitation Project (ASRP) Smallholder Agriculture Productivity Enhancement and Commercialization (SAPEC) 3 Maryland Oil Palm Plantation (MOPP) Transport 4 5 Paving Fish Town-Harper Road Project Phase I MRU Road Construction & Trade Facilitation Project Governance 6 Integrated Public Financial Management Reform Project Supplementary WAMZ Payment System Development Project Water and Sanitation Urban Water and Sanitation Project Fostering Innovative Sanitation and Hygiene in Monrovia Energy CLSG Electricity Networks Interconnection Project CLSG Electricity Project - Rural Electrification Banking 12 Equity in Access Bank (& supplementary Equity) 04-08/ Health Sector- Responding to Ebola Regional Project to Strengthen West Africa s Public Health Systems in Response to Ebola Crisis Ebola Budget Support Fight Back Program (EFBP) / Cote d Ivoire, Guinea, Liberia and Sierra Leone Post Ebola Recovery Social Investment Fund Multi-Sector Capacity Building 16 Capacity Building and Technical Support to the National Housing Authority 17 Technical Assistance and Capacity Building to LISGIS Programme of Assistance to Trade Support Institution in Liberia (PASTIL) III

35 (B) SUMMARY OF THE BANK S PORTFOLIO PERFORMANCE IN LIBERIA (AS OF DECEMBER 31, 2015) 6 Table.: Portfolio Performance Indicators Indicator Bankwide Average size of Project (UA million) Operations formally supervised twice a year (%) Time from approval to 1st Disbursment (no. months) Annual Disbursments Ratio(%) Aging operations total number of operations (%) Problem Projects (%) Projects at Risk (%) Commitment at Risk (%) Value of Private Sector % (of approved amount) Due to the EVD outbreak in Liberia, the formal supervision of Bank projects in the country was temporarily suspended due to health security concerns of Bank staff, and this negatively affected the indicator on the number of operations formally supervised twice a year in comparison to the Bankwide supervision performance. Nevertheless, desk supervision of Bank projects was undertaken to maintain the implementation rate and to follow up on necessary project related activities. IV

36 APPENDIX III: SIMILAR PROJECTS FINANCED BY THE BANK AND OTHER DEVELOPMENT PARTNERS IN LIBERIA Donor Partnerships in Liberia - Agenda for Transformation (updated October 2012) Partner AfDB China EU* France Denmark DFID/UK Germany Ireland Norway SIDA/Sweden JICA United States World Bank** UN Systems UNDP UNMIL UNICEF UNHCR WFP WHO FAO UNWomen UNESCO UNAIDS Pillar I Pillar II Pillar III Pillar IV Peace, Security, and Rule of Law Economic Transformation Human Development Governance and Public Institutions Security Peace and Reconcilliation Justice and Rule of Law Judicial Reform Private Sector Development Macroeconomi c Issues Other Infrastructure Energy Roads Agriculture and Food Security Forestry Mineral Development & Management Education Health and Social Welfare Social Protection Water and Sanitation Political Governance Public Sector Modernization & Reform Economic Governance V

37 APPENDIX IV: LETTER OF REQUEST FROM THE GOVERNMENT OF LIBERIA VI

38 APPENDIX V: THE BANK S VALUE ADDITION UNDER IPFMRP - PHASE I The Bank s Board approved US$4.6 m (UA 3m) for the Integrated Public Financial Management Reform Project (IPFMRP) on September 18, 2012 representing part of its contribution towards strengthening Liberia s PFM reform effort. IPFMRP had five interrelated components each supporting the advancement of seven thematic areas embodied within the PFM Reform Strategy and Action Plan (FY2012-FY2016): (i) comprehensive and credible budgeting; (ii) robust IT systems to support PFM operations; (iii) revenue mobilization; (iv) enhanced transparency and accountability; (v) enhanced controls and respect of the PFM legal framework; (vi) strengthening treasury management and; (vii) fiscal decentralization. (1) Enhanced budget planning systems, coverage and credibility. Based on the 2016 PEFA, PI 1-3 scores representing enhanced budget credibility recorded marked improvement. Revenue forecasting capacity improved despite the Ebola outbreak. This improvement was due to increased collaboration between the macro forecasting units in MFDP and LRA. As part of the effort to transition to MTEF, MFDP prepared and published an MTEF budgeting manual to guide forecasting estimations. Public investment programs have now been centralized and controlled through Cabinet, while recurrent expenditures are budgeted at the level of ministries and agencies. With regard to enhanced budget coverage, efforts have advanced in migrating 15 donor-financed projects in PFMU into IFMIS thereby bringing donor-funded expenditure to the scrutiny of the budget preparation process. (2) Review of the PFM legal framework, budget execution, accounting and reporting. The PFM Law (2009) was reviewed and proposed amendments accepted by the MFDP authorities. IFMIS has also been upgraded to a higher version with better features. As of FY 2014/15, 69% of the budget was executed in the system. The GoL also prioritized security ensuring that the current IFMIS platform is more secure. Notable accomplishments in this area include the first ever adoption of an Information Security Policy that was promulgated by the Minister of Finance and Development Planning across IFMISconnected ministries and agencies. An independent international security firm was hired to undertake a security audit of the system and provide recommendations on best security practices that have been implemented. The Civil Service Module of IFMIS was also deployed thereby establishing better controls between personnel records and payroll management. The electronic document management system was launched in January 2016, the objective being to serve as a repository of supporting documentation for transactions. The project has also completed the development of a system requirement document for e- procurement. There have also been steady improvements with the preparation and publication of the Consolidated Fund financial statements by the Comptroller and Accountant General Department (CAGD). (3) Revenue Mobilization and Administration. The objective of the third component of IPFMRP on Revenue Mobilization and Administration was to complement efforts aimed at improving the efficiency and integrity of revenue administration and increase domestic revenue of central government entities. This component had three VII

39 sub-components: (a) Capacity Development of Customs; (b) Tax Automation (SIGTAS); and (c) Establishment of Revenue Authority. The most relevant achievement of the three sub-components was the establishment of the Liberia Revenue Authority (LRA). LRA was established in July 2014, but the initiation of recruitment was delayed until January 2015 due to the EVD crisis. The allotted resources for LRA have improved, with a budgetary allocation of US$ 13.1 m provided in FY2014/15 increasing to US$ 16.1 m in FY2015/16. Since the establishment of LRA, national revenue performance has improved significantly, particularly for customs revenues, but the key capacity challenge relates to taxation within the natural resource sector which will be addressed by this project. (4) Enhancing transparency and accountability. Scrutiny of the budget has improved through the analytical reviews conducted by the Legislative Budget Office (LBO). The budget for FY 2015/16 was passed into law only 2 months later than the statutory deadline of June 30 (i.e., August 25, 2015), an improvement in comparison to the previous fiscal years. With regards to ex-post legislative budget oversight, several public hearings have been held, with 2 consolidated reports covering 11 General Auditing Commission (GAC) reports tabled before the President of Liberia for action, based on the improved efficiency of the Public Auditing and Accounts Secretariat. (5) Other notable achievements under IPFMRP include the fact that the General Auditing Commission (GAC), having attained enhanced financial and operational autonomy via the new GAC Act passed December in 2014, GAC completed and published 18 audits as of FY 2014/15, including the Consolidated Fund financial statements for FY 2012/13. The Internal Audit Agency (IAA) has also begun to focus on systemic issues undermining the internal control environment in MD&As, while the use of the audit tracker has helped create improvements in the implementation of audit recommendations. The Internal Audit Agency (IAA) now covers more than 70% of budgeted expenditure in terms of its establishment across MD&As. The non-state actors sub-component also continues to make impact in terms of enhancing the public drive for transparency and accountability on the use of state resources. The June 2016 joint supervision of the Integrated Public Financial Management Reform Project (IPFMRP) found that this institutional support project (ISP) was generally on track, despite some of the activities that were delayed due to the ebola crisis. The likelihood of the project achieving its development objectives during the remaining implementation period remains positive and satisfactory. Implementation progress, impaired by the Ebola outbreak, is also rated moderately satisfactory. In consideration of the remaining project period and available financial resources, the key priority of the ongoing ISP for the remaining period is the use of IFMIS as comprehensively as possible, especially at the county level. The Bank s contribution to IPFMRP is fully disbursed and the project is scheduled to close on June 30, VIII

40 APPENDIX VI: MAP OF THE REPUBLIC OF LIBERIA IX