AFRICAN DEVELOPMENT FUND

Transcription

1 AFRICAN DEVELOPMENT FUND CONGO AGRICULTURAL SECTOR STUDY PROJECT COMPLETION REPORT (PCR) OSAN DEPARTMENT May 201 Translated document

2 PROJECT COMPLETION REPORT (PCR) FOR TECHNICAL ASSISTANCE OPERATIONS I. Basic Information A. Report Information Report date: 05/02/201 Mission date (in case of field mission) From: 28/11/2012 to 0/12/2012 A B. Responsible Bank Staff Positions At approval At completion Regional Director L. CHAKROUN, Director, OCCC M. KANGA, Director, ORCE Sector Director o A. BEILEH, Acting Director, OSAN Division Manager D. KEITA, Acting Division Manager, J. M. MWANGI, Division Manager, OSAN.2 OSAN. Task Manager M. AYACHI, Agronomist, OSAN.2 M. AYACHI, Agronomist, OSAN. Alternate Task Manager DIAW, Financial Analyst, OSAN.2 A. SOW, Infrastructure Engineer PCR Team Leader M. AYACHI, Agronomist, OSAN. PCR Team Members V. LOSSOMBOT, Financial Management Specialist, CDFO C. Project Information Project Name: Agricultural sector study Project Code: P-CG-AA0-010 Loan Number: Country: Republic of Congo Sector: Agriculture Project Type: Study Environmental Classification (1-): NA Process stages (Grant): Approval date: 2/10/2008 Signature date: 16/04/2009 Effectiveness date: 16/04/ st disbursement eligibility date: 15/07/ st effective disbursement date: 15/11/2010 Milestones (Grant): Amounts Cancelled: UA Additional Financing: N/A Restructuring (specify the date & relevant amount): N/A Extensions (specify dates): 0/12/ Disbursement and Closing dates Initial last disbursement deadline: 1/0/2011 Initial closing date: 0/09/2011 Revised last disbursement date: 0/12/2012 Revised closing date: 1/0/201 Source of Financing (UA): Foreign Exchange (UA): Local Currency (UA): Grant (ADF): Government: Total: Total: Total: Source of Financing (UA): Disbursed to Date Disbursed to Undisbursed to Date Undisbursed (Amount, UA) Date (%): (Amount, UA): to Date (%) Loan: (ADF) N/A N/A N/A N/A Grant: (ADF) Government Other: NA NA NA NA Total Source of Financing (UA): Commitments to Date (Amount, UA) Commitments to Date (%): Non committed to Date (Amount, UA): Non committed to Date (%): an: (ADF) N/A N/A N/A N/A Grant: (ADF) Government Other: N/A N/A N/A N/A Total Executing Agency (ies) and Implementation: Study Coordination Unit (CCE)/Ministry of Agriculture and Livestock (MAE) Co-Financiers and other External Partners: NA

3 D. Examination by the Department and Comments Report Examined by Division Manager Sector Director Name J. MWANGI, Division Manager, OSAN. A. BEILEH, Acting Director, OSAN Resident Representative N.A N/A Regional Director M. KANGA, Director, ORCE Date of examination Comments Section II: Project Performance Evaluation II. Relevance 1. Relevance of Project Development Objectives Score (4-TS, -S, 2-I, 1-TI) Narrative Evaluation (250 words max) 4 Study objectives take the country s priority needs into account by providing the agricultural investment planning and promotion tools to enhance food security. 2. Relevance of Project Design Score (4-TS, -S, 2-I, 1-TI). Lessons learnt as concerns relevance Narrative Evaluation (250 words max) The study s design is relevant, since its various phases were implemented without major difficulties as expected in the beginning and the results achieved were useful for the country. Indeed, the planned distinct phases with clear objectives and results eased the Consultant s task and that of the national monitoring team. This helped the country significantly to prepare its medium- and long-term agricultural sector strategy. The results presentation and validation workshop organized for various partners helped to highlight their clear appreciation of the results and their readiness to support the agricultural sector s revitalization. However, the Study Coordination Unit (CCE) did not rigorously monitor the consulting firm for lack of qualified staff, leading to delays relative to the initial schedule. There is a risk that the agricultural data base planned in this study will not be updated continuously for want of resources at the level of the Ministry of Agriculture and Livestock (MAE). Key Issues (5 maximum, add rows where necessary) 1. Weak study implementation monitoring capacity in MAE 2. Limited means in MAE for update of the database established by the study Lessons Learnt 1. Prior institutional capacity building for the structures concerned by the study s implementation is necessary. This will help to improve the quality of service provider monitoring and ensure final output quality. 2. Provision should always be made in the study design for a Donee mechanism to finance database updating and maintenance of its IT equipment. Target Public CCE/MAE Government/Bank 2

4 III. Effectiveness (Development Objectives) 1. Progress in the Achievement of Project Development Objective (Project Goal) Provide a brief project description (Components). State the project development objective (generally the project goal as established in the Results-Based Logical Framework - RBLF) and assess progress. The unexpected results should be taken into account. 500 words maximum. The study s sector goal is to improve the country s food security. The study aims, specifically, to prepare a general diagnostic of the agricultural sector, development master plans and priority intervention programmes. Considering the absence of recent basic data on the agricultural and rural sector and the country s inability to collect the necessary information for their update, the Bank deemed it necessary to provide technical assistance. The latter aims to collect reliable data on the agricultural and rural sector s potentials and challenges, with a view to better targeting and planning the Bank s future interventions and those of other development partners. The study entails the following activities: (i) a Diagnostic Assessment leading to the establishment of an agricultural database and a development strategy policy paper; (ii) a medium- and long-term Agricultural Sector Development Master Plan (PDSA); (iii) a National Agricultural Sector Rehabilitation and Revitalization Programme (PNRSA), comprising priority actions to be implemented by Directorate; (iv) an Environmental and Social Management Plan (ESMP); and (v) a Gender Profile. 2. Report on Outcomes Outcome indicators Baseline (according to the RBLF, Value add rows where necessary) 1. Establishment of the agricultural sector s diagnostic assessment and development strategy policy 2. A National Agricultural Sector Revitalization Programme, comprising priority actions by Directorate, is available 2 reports (diagnostic assessment and strategy policy) 11 programmes (one/directorat e) Achieve d Value (A) Target Value (B) (Expected value at project completion) Progress towards Objective (A/B) (% achieved) Narrative Evaluation (50 words max by Outcome) The agricultural sector strategy has been prepared. A data base is operational at the Ministry of Agriculture and Livestock and the Ministry of Fisheries and Aquaculture. The latter, however, needs to be strengthened and updated continuously Eleven priority programme feasibility studies prepared for eleven Directorates Key Sector Indicators (Yes/No) yes yes. Report on Outputs Output Indicators Achieved (according to the Value (A) RBLF, add rows where necessary) 1: A diagnostic assessment and a development strategy policy paper are prepared for the country s 11 Directorates. A report and a strategy paper Target Value (B) (Expected value at project completion) A report and a strategy paper Progress towards Objective (A/B) (% achieved) Narrative Evaluation (50 words max by Output) 100 The planned reports have been prepared: diagnostic assessment and development strategy paper for the country s 11 Directorates. Key Sector Indicators (Yes/No) yes

5 2: Computerized databases are established in the Ministry of Agriculture and Livestock and the Ministry of Fisheries and Aquaculture. : Eleven Agricultural Development Master Plans (PDSA) are prepared 4: Eleven priority programme feasibility studies prepared for eleven Directorates 5: An ESMP and a Gender Profile prepared 2 data bases 2 data bases 100 The data bases have been established in the technical directorates concerned. However, their maintenance (continuous information update) will likely be inadequate for lack of means. 11 PDSAs (1 by Division) 11 priority programmes An ESMP and a Gender Profile 11 PDSAs 100 Reports of 11 Agricultural Sector Development Master Plans for Directorates are available. 11 priority programmes An ESMP and a Gender Profile Priority development programmes have been prepared for the 11 Directorates initially planned. However, their content is still a bit sketchy from the point of view of socio-economic and financial impact analysis, as planned in the TORs. This aspect must be completed during the preparation and appraisal of projects to be financed. An ESMP and a Gender Profile of national scope have been prepared. However, these reports must be further clarified during appraisal of projects. yes yes yes yes 4. Scoring of Development Objectives (DO) DO Score (Based on the Update of the Implementation Progress Report (IPR) (4- TS, -S, 2-I, 1-TI) Narrative Evaluation (400 words max) The target objectives, namely: (i) the Diagnostic Assessment and the strategy policy paper; (ii) the medium and long-term Agricultural Sector Development Master Plan (PDSA); and (iii) the Agricultural Sector Revitalization Priority Programme, have been achieved. However, the Donee has to continuously update the database for possible future planning and disseminate the outputs so as to elicit donor interest in agriculture financing. 5. Lessons Learnt as Concerns Effectiveness Key Issues (5 max, add rows where necessary) Lessons Learnt Target Public 1. The study s implementation monitoring by the CCE 1. Capacity building for structures to and MAE was not very effective, owing to limited human resources monitor similar operations should always Government/CCE/Bank be taken into account in the project 2. The Consultant was late in conducting the study, for lack of mobilization of the necessary resources to which he committed. 2. Ensure, during study implementation, strict compliance with contractual arrangements in terms of mobilization of personal resources and adherence to schedules. Government /CCE/Bank/ Service Provider 4

6 IV. Efficiency 1. Timeliness Expected Project Duration Years (A) (according to the PAR) Effective Implementation Duration Years (B) (from the 1 st effective disbursement date) Expected Duration and Effective Implementation Duration Ratio (A/B) Score (4-TS, -S, 2-I, 1-TI) 24 months 45 months Narrative Evaluation (250 words max) The study was not implemented on time, owing to administrative delays in fulfilling the conditions precedent to the first disbursement and the late recruitment of the consulting firm, whose contract was signed only on 4 January 2011, 26 months after the study s approval. The Consultant on his part was nearly six months late relative to the schedule planned in his contract. 2. Efficiency in Resource Use Physical Implementation Median Percentage of RBLF Outputs (A) (see II.B.) Commitments Ratio (%) (B) Physical Implementation Median Percentage Ratio and Disbursement Ratio (A/B) Score (4-TS, -S, 2-I, 1-TI) 100% Narrative Evaluation (max 250 words) The study was completed fully and savings made in the operating costs of the Coordination Unit and the services category. This was possible thanks to sustained rigour in resource management and coverage by the Donee of a good part of operating costs.. Cost-Benefit Analysis Economic Rate of Return (at appraisal) 4. Implementation Progress (IP) Updated Economic Rate of Return (at completion) Score (4-TS, -S, 2-I, 1-TI) N/A N/A N/A IP Score (see updated IPR) c Narrative Comments (commenting especially on the IP elements that were scored as Unsatisfactory or Very Unsatisfactory during the IPR). 250 words max The study was implemented by a Coordination Unit (CCE), supported by focal points of the Ministries concerned and directed by a National Steering Committee. These structures approved the CCE s reports and validated the various study phase reports. The CCE showed weaknesses in monitoring the Consultant and conducting annual audits on time. The initial study schedule was not adhered to, owing to delays in fulfilling the conditions precedent to the 1 st disbursement and recruiting the Consultant. The Bank conducted on average 2 technical and financial supervision missions per year. It made recommendations to reduce delays and improve the quality of the Consultant s reports and the study s financial management. The content of reports was appreciated, despite the Consultant s lateness. Thanks to this study, the country now has an Agricultural and Rural Sector Diagnostic Assessment, an Agricultural Data Base, a Strategy Policy Paper, Master Plans and Priority Development Programmes for the eleven Directorates. However, the Donee has to continuously update the database for possible future planning, and disseminate the outputs, so as to elicit donor interest in agriculture financing. 5

7 5. Lessons Learnt as Concerns Efficiency Key Issues (Linked to II.C.5, 5 max, add rows where necessary) 1. Fulfilment of conditions precedent to the first disbursement takes a lot of time. 2. Involving the Donee in covering the Coordination Unit s operating costs helps to control this category of expenditure, where budget estimate overruns are generally observed.. The dissemination of final outputs requires MAE s firm mobilization to organize a roundtable for donors to raise agricultural investment funds. V. Sustainability 1. Financial Sustainability Lessons Learnt 1. Plan for the fulfilment of most of the conditions precedent to the first disbursement during project appraisal. 2. Government s coverage of the Management Unit s operating costs averts additional management costs, since control is more efficient.. The inclusion in the study s cost of funds for the organization of a roundtable can help in disseminating outputs and promoting agricultural investments. Target Public Government/CCE/ Bank/ Service Providers Government /Bank Government / Bank Score (4-TS, -S, 2-I, 1-TI) N/A 2. Institutional Sustainability and Capacity Building Score (4-TS, -S, 2-I, 1- TI). Stakeholder Participation and Partnership Narrative Evaluation (250 words max) N/A Narrative Evaluation (250 words max) National executives acquired some experience in the conduct of studies and strategic development planning, owing to their contact with international Experts responsible for this study. Others received training in information collection, processing and analysis, and agricultural database management. The sustainability of these achievements still depends on their supervisory authority s ability to ensure continuing retraining and continuous database updating to render it fully operational. Score (4-TS, -S, 2-I, 1-TI) Narrative Evaluation (250 words max) 4. Lessons Learnt as Concerns Sustainability Key Issues (5 max, add rows where necessary) 1. To conveniently plan and implement development operations, the institutional capacity of Ministries concerned must be adequate. 2. Reliable development planning requires an operational and updated database. In the study s implementation, the Ministries concerned and regional services of the Directorates were involved through their focal points that make up the extended national monitoring team. The reports of each phase were the subject of directorate-level and national workshops, to which all technical and financial partners (TFP) and the civil society were invited. At the end of the study, the Ministry of Agriculture and Livestock organized an exchange meeting on the study results with TFPs and sought their support in the implementation of priority programmes and promotion of agricultural investments. Lessons Learnt 1. Capacity building for national executives eases and improves the operations implementation monitoring quality. 2. The maintenance and update of the agricultural database must be programmed and budgeted annually by the Ministry of Agriculture and Livestock and, if need be, the support of TFPs should be sought. 6 Target Public Government/MAE/TFP Government/MAE/TFP

8 VI Performance of Stakeholders 1. Bank Performance Narrative Evaluation to be included by the Borrower (Both quantitative and qualitative, depending on the availability of information). See Information Note for topics to be covered. 250 words max The Bank closely monitored financial management and supported the study s accounting organization. It always made observations to the Coordination Unit to improve the study s implementation. Recommendations were also made to the Consultant to speed up the study s implementation and improve its content. This helped the Coordination Unit to refocus the study relative to its TORs and improve the Score (4-TS, -S, 2-I, 1-TI) quality of final outputs. Delays were observed in the processing of disbursement requests. Comments to be included by the Bank on its own performances (Both quantitative and qualitative, depending on the availability of information). See Information Note for topics to be covered. 250 words max The Bank conducted 7 study monitoring missions. It supervised work quality and timeliness, which helped improve the content of reports produced by the Consultant and complete this operation under appropriate conditions, despite the lateness. Key Issues (Linked to Bank performance, 5 max, add rows where necessary) 1. The study s low implementation monitoring capacity on the ground makes it difficult to have quality output, without close assistance from the Bank 2. Late payment of service providers bills causes delays in their work progress 2. Donor Performance Lessons Learnt 1. The Bank s assistance and monitoring are always useful for the implementation of operations and the achievement of their objectives, under appropriate conditions. 2. The Bank must do everything to speed up the disbursement process for projects. Narrative Evaluation to be included by the Borrower ((Both quantitative and qualitative, depending on the availability of information). See Information Note for topics to be covered. 250 words max The Donor supervised the process and provided substantial support to the study s service providers to accomplish their mission. However, the study s implementation monitoring and comments on, and reviews of reports were barely average. Key Issues (Linked to Borrower performance, 5 max, add rows Lessons Learnt where necessary) 1. The inability to strictly monitor the Consultant s TORs and technical proposal causes delays in study implementation and affects its quality. 2. The delay in preparing audit reports, on the one hand, and their rejection by the Bank, on the other hand, led to the suspension of disbursements for several months. The said delay is also attributable to the lateness in the hiring of the auditor by the PIU and the low qualification of the audit firm itself. Score (4-TS, -S, 2-I, 1-TI) 1. Particular attention must be paid to compliance with the Consultant s TORs and technical proposal to ensure final output quality. 2. The Bank and the Government must continuously assess the performance of Coordination Unit staff and service providers and, if need be, propose reinforcements and/or replacements on time. In addition, the audit firm must be recruited as soon as the PIU is established.. Performance of other Stakeholders (consulting firms, external auditor mainly) Narrative Evaluation to be included by the Borrower ((Both quantitative and qualitative, depending on information availability). See Information Note for topics to be covered. 250 words max The Consultant met the Borrower s needs. The reports produced for the phases are largely acceptable. Their content is appreciated by the Donee for thrusts identified at the country level and by Directorate. The Consultant generally took into account the Bank s and Donee s observations with regard to improving the quality of final documents. However, the content of final reports remained sketchy regarding the socioeconomic and financial analysis of priority actions proposed (the analysis remains sketchy in terms of the number of beneficiaries, farmer incomes and rates of return identified). The consulting firm was also late by nearly six months relative to the planned schedule. As concerns the review of financial statements, the accounts audit reports produced were not satisfactory. The initial versions of these reports were always rejected by the Bank, leading to the blocking of disbursements. Score (4-TS, -S, 2-I, 1-TI) 7

9 Key Issues (Linked to performance of technical assistance, 5 maximum, add rows where necessary) 1. The quality of service providers final output still depends on their qualifications and experiences and the level of monitoring by the client. VII Summary of Lessons Learnt and Key Recommendations 1. Key Lessons Learnt Lessons Learnt 1. To ensure quality service, it is necessary to set the qualification criteria for service providers and monitor them closely throughout the missions. Key Issues (5 max, add rows where necessary) Lessons Learnt Target Public 1. The weak capacity to monitor the study makes it difficult to obtain quality output and on time. 2. The late payment of service providers bills causes delays in the progress of their work.. The quality of service providers final output still depends on their qualifications. 1. The Bank s support and monitoring are still useful to assist the country in achieving target objectives. 2. Speeding up the processing of disbursement files both by the Bank and the CCE helps in reducing delays in the implementation of operations.. To ensure quality service, it is necessary to set the qualification criteria for service providers and monitor them closely throughout the missions. 2. Key Recommendations (With Particular Emphasis on Risks To sustainability) Risks or Problems (10 maximum, add lines where necessary) 1. Lack of resources for financing priority projects identified by the study may well affect long-term objectives. 2. Failure to continuously update the database established by the study will limit its efficacy. VIII. Overall PCR Score Government/Bank Bank/Government Government/Bank Recommendations Authority Deadline 1. The Government should increase contacts with TFPs to boost the financing for the agricultural and rural sector. 2. MAE should budget funds annually for the database updating and equipment maintenance. In the absence of the MAE budget, the support of TFPs should be sought. Government No deadline MAE/TFPs 1/12/2016 Dimensions and criteria Score DIMENSION A: RELEVANCE.5 Relevance of project development objectives (II.A.1) 4 Relevance of project design (II.A.2) DIMENSION B: EFFECTIVENESS Development Objectives (DO) (II.B.6) DIMENSION C: EFFICIENCY Timeliness (II.C.1) 2 Efficiency in resource use (II.C.2) 4 Cost-Benefit analysis (II.C.) N/A Implementation Progress (IP) (II.C.4) DIMENSION D: SUSTAINABILITY Financial sustainability (II.D.1) N/A Institutional sustainability (II.D.2) Stakeholder Participation and partnerships (II.D.) OVERALL PROJECT COMPLETION SCORE.1 Encl: Report on the State of Progress of AgSS Implementation 8

10 List of Reference Documents 1. Report on the State of Progress of Study Implementation, December 2012: Agricultural Sector Study Appraisal Report: 01. Protocol Agreement of Grant No : Aide-memoirs of Supervision Missions: Diagnostic Assessment and Strategy Policy Paper: Agricultural and Rural Development Plans of Provinces: National Agricultural Sector Rehabilitation and Revitalization Programme (priority projects): Environmental and Social Management Plan: Gender Profile: 01 Scale for Working Scores and Ratings SCORE EXPLANATION 4 Very Good- Fully achieved with no shortcomings Good- Mostly achieved despite a few shortcomings 2 Fair- Partially achieved. Shortcomings and achievements are roughly balanced 1 Poor- Very limited achievement with extensive shortcomings NA Non Applicable ANNEX: Report on the Status of AgSS Implementation as at 1 December

11 ANNEX REPORT ON THE STATUS OF IMPLEMENTATION OF THE AGRICULTURAL SECTOR STUDY AS AT 1 DECEMBER 2012 This report on the status of AgSS implementation was produced during the monitoring mission, which took place from 28 November to 4 December 2012 in Brazzaville. The mission, composed of Messrs. AYACHI Mouldi, Agronomist, OSAN., and LOSSOMBOT Vurce Mafouta, Financial Management Specialist, CDFO, was in the Republic of Congo from 28 November to December Study Objective The sector goal of the AgSS is to contribute to food security in the country. The study s specific objective is to prepare, after the preparation of a diagnostic assessment, a medium- and long-term Agricultural Sector Development Master Plan (PDSA) and a National Agricultural Sector Rehabilitation and Revitalization Programme (PNRSA), comprising priority actions by subsector and by Directorate, so as to shore up agricultural sector financing with donor support. 2. Study Summary Description 2.1 During appraisal of the AgSS, the following three phases were planned: (i) Phase I: Agricultural sector diagnostic assessment, strategic analysis and general thrusts; (ii) Phase II: Strategic agricultural sector development planning; and (iii) Phase III: Formulation of priority development programmes.. Status of Implementation of Study Activities Establishment of the implementation and coordination structures.1 The Study Coordination Unit (CCE) was established since It is composed of a coordinator, an accountant, a secretary and a driver. It was assigned offices in MAE. The offices were equipped with furniture and computer equipment using Grant resources. A team of focal points/facilitators, representing the Ministries involved in rural development, was designated at the central level. In each Directorate, two focal points of the Ministry of Agriculture and Livestock and the Ministry of Fisheries were identified to monitor the consulting firm s team on the ground and facilitate its mission. Procurement of goods and services.2 The consultation regarding the consulting firm s recruitment was launched in March 2010 and the contract was awarded to the SOFRECO/CERAPE Group. However, on account of communication difficulties, the negotiations report, forwarded to the Bank in August 2010, did not reach its destination. This caused a considerable delay in approval of the contract by the Bank. The study implementation contract was only signed in January The other contracts for procurement of goods concern a vehicle, IT equipment and office furniture. These contracts took some time to be executed but were ultimately executed to the Borrower s satisfaction. Conduct of the Study. The study was implemented by the above-mentioned consulting firm. It started late relative to the planned schedule. Actually, it took more than two years to fulfil preconditions, obtain the first disbursement and recruit the consulting firm. Despite this delay, the study ended in a largely satisfactory manner. The first phase ended in October 2011 with the drafting of the diagnostic assessment, the production of 12 directorate-level monographs and the preparation of the agricultural sector policy strategy paper. I

12 The second phase, on Agricultural Sector Development Planning, ended in July 2012 with transmission to the Government of the final reports of Agricultural Sector Development Master Plans (PDSA). Various directoratelevel and national workshops were organized to validate the completed phases and the relevant reports submitted to Government. Maps, survey tables and workshop reports were submitted, along with reports of the first and second phases..4 The study s third and last phase, relating to the National Agricultural Sector Rehabilitation and Revitalization Programme (PNRSA), was implemented and the relevant draft report, amended according to the observations of focal points, was communicated to MAE and the Bank Mission on 0/11/2012. The final version of this phase is expected by 15/12/2012. The database (documentary and digital) was prepared and communicated to the CCE. It is still to be installed in the Ministries of Fisheries and the Plan and the 12 Directorates concerned. The CCE must do everything to complete the database s installation. To ensure closure of the AgSS under appropriate conditions, the Mission emphasized the need to quickly complete the remaining tasks and forward the last service providers bills to the Bank for payment..5 For the reasons previously mentioned, the schedule and implementation timeframes of various phases were not complied with, leading to extension of the study s completion date from 1/0/2011 to 0/12/2012. Delays were observed in the conduct of work on the ground, particularly for the first phase that lasted more than was envisaged. In addition, transmission of the Consultant s disbursement requests to the Bank was not regular, thereby hampering the acceleration of work and improvement of the Grant s disbursement rate..6 The Consultant ensured the involvement of focal points and regional services of the Directorates. Reports of each phase were the subject of directorate-level and national workshops, to which technical and financial partners (TFPs), the civil society and NGOs were invited. Coordination between TFPs was done within the framework of study results consultation workshops organized by MAE in Brazzaville. The consulting firm largely met the Borrower s needs and expectations and took into account the recommendations of the Bank s monitoring missions. The quality of reports submitted was quite satisfactory. However, according to the Government, the study remains sketchy in terms of agricultural statistics as it relied on baseline survey samples. This aspect will be taken into account in the national agricultural survey project being prepared by MAE, in collaboration with FAO..7 The CCE made considerable efforts in recruiting the consulting firm and monitoring activities on the ground. However, problems in communicating files to the Bank constituted one of the causes of delays in the study s completion. The untimely submission of audit reports also led to the blocking of replenishment of the study s special account fund in 2011, thereby undermining the smooth implementation of activities. In addition, audit reports produced were of poor quality and needed each time to be redone. This situation is ascribable to the difficulties in producing acceptable financial statements and the audit firm s lack of professionalism..8 On its part, the AfDB conducted on average two monitoring missions per year for the study s implementation period. It was, therefore, possible to closely monitor the various files and the production of reports by the Consultant. Bank missions also sensitized stakeholders on the need to speed up work and improve the quality of reports to be produced. In addition, the Bank conducted several missions to assist in organizing accounting, setting the accounting software and producing reliable financial statements thereby easing the external audit of the study s accounts..9 On the part of Government, the study was monitored by the Office of the MAE and the Steering Committee. Facilitator focal points, representing the Ministries involved in rural development also took part in monitoring the Consultant s work and reviewing the reports produced. These structures approved the activity reports and annual budgets and validated the documents of various study phases. The national counterpart II

13 contribution to the study s financing was mobilized on time and eased the CCE s operation, especially when disbursements were blocked as a result of the audit delay. Financial management.10 The financial review conducted by the financial management specialist based in Kinshasa, comes within the framework of financial management support and at the closure of the AgSS. It aimed at: (i) (ii) (iii) (iv) Analysing the specific problems and challenges that could undermine the study s proper financial management, especially the problem of software configuration to produce reliable financial statements; Examining the weaknesses noted by audit or supervision missions; Monitoring the implementation of recommendations of external audits; Expressing opinions on the state of the financial management mechanism at the closure of AgSS as concerns: the budget, accounting including reconciliation of the project assets inventory, internal control including internal audit, cash flow including the sample-based review of certain expenditure, financial information and external audit..11 Specifically, the mission examined the following points: (i) (ii) (iii) The status of submission of financial reports; The quality of financial reports generated from various management software; The status of implementation of the recommendations of various missions or reviews; (iv) The situation of the 2011 audits and closure audits (2012) ; (v) (vi) (vii) (viii) (ix) The status of expenditure incurred from the special account; The status of expenditure incurred through direct payments; The status of justification of advances received; The existence of Bank-approved service contracts and the payment situation of these contracts; The application of Bank closure procedures..12 This review revealed that, at the study s closing date, financial risk is moderate for the following reasons: (i) low cash flow from the special account; (ii) payment of most of the contracts using the direct payment method; (iii) absence of any commitment to be taken after the closing date; (iii) revision of setting and update of accounting; (iv) satisfactory implementation of the 2011 audit recommendations, (v) level of the 2012 accounts update, the work whose completion is scheduled for l0 December 2012 at the latest, (vi) auditor s contract that runs till the closing audit but an extension, without any financial impact, is required to ensure payment for the audit service after the closing date; (v) coverage by the counterpart contribution of the salaries of financial staff, three months after the closing date..1 The project s financial management evaluation is relatively satisfactory. At the project s closing, most of the measures aimed at reducing financial risks inherent in the various action plans were implemented. However, weaknesses still persist with regard to the budget process, internal control, cash flow and reporting especially: budget execution preparation and monitoring, absence of a procedures manual, accumulation by the accountant of all financial management tasks, justification of the use of advances received from the special account, and submission of quarterly financial reports. Staff capacity in the setting and use of the TOMPRO software were built following its installation. With the project s completion scheduled for 0 December 2012, urgent and practical measures are necessary to ensure the project s proper financial closing. III

14 .14 The mission took measures to ensure a financial closing in compliance with the Bank s requirements. The disbursement report shows a Grant balance estimated at UA Considering the level of commitments estimated at UA on the closing date, the Grant balance, after payment of commitments, stands at UA The state of commitments and payments by contract is summarized as follows: Contract Amount Currency Payment Currency Balance Balance in UA SOFRECO EUR EUR CAC XAF XAF MOKANGA XAF 0 XAF The special account balance estimated at CFAF 11 million should be used to finance operating costs for the remaining period up to the project s closing. The special account operation was justified only to the tune of 81.5% for the first advance, and 45.65% for the second advance. To audit the study s accounts and closing, in conformity with required procedures, the CCE should particularly finalize the 2012 financial statements, formalize the transfer of assets to beneficiary entities, clear all the ongoing contracts and reconcile the special account. The remaining balance should be used to cover staff allowances for the period running up to 0 December The CCE should redouble efforts to quickly finalize the audit report of the fiscal year that ended on 1/12/2011 and communicate it to the Bank not later than 15/12/2012. The 2012 audit should be finalized before 28/02/ All the above-mentioned actions are necessary to ensure the project s financial closing in conformity with Bank requirements. Other observations by the Mission must serve as lessons to inform the preparation of the study completion report. The Mission supported project coordination in: (i) preparing TORs for the recruitment of the local financial and accounting management expert/consultant, (ii) monitoring implementation of the Consultant s tasks as concerns the software configuration revision and financial statements; and (iii) monitoring relations with the external auditor. The project s accountant, together with PACADEC s financial staff, benefited from a sensitization session in Bank financial management rules and procedures, and ownership of audit terms of reference for a better monitoring of the auditor s work. Disbursement.17 The project s total cost amounts to UA million (CFAF million), of which UA 1 million is financed by the ADF (79% of the total cost) and UA million (21%) covered by the national counterpart contribution. The amount disbursed by the Bank stands at UA , representing % of the Grant. These disbursements concerned two working capital instalments for the CCE s operation and direct payments relating to the procurement of IT and office equipment, and a vehicle as well as the services of the consulting firm, the audit firm and short-term consultants to support the organization of the study accounts..18 The Government disbursed almost all its counterpart contribution, CFAF out of CFAF (representing 99.55%). This amount is used in the Coordination Unit s overheads (staff salaries, vehicle maintenance, communication, water and electricity, office supplies, etc.)..19 To improve the study s disbursement rate, it is necessary to quickly forward invoices that are ready for payment to the Bank (consulting firm, financial and accounting management expert). Currently, two SOFRECO/CERAPE invoices are still awaiting payment relating to the draft (10%) and final (15%) reports, two external audit invoices (2011 final report and 2012 audit) as well as the invoice of the technical assistant for accounting organization. Since the implementation schedules of the consulting firm s contracts and external audit are over, following extension of the study s completion date, the CCE must forward to the Bank a request for extension of their duration and communicate the remaining invoices as soon as possible. 4. CONCLUSIONS AND RECOMMENDATIONS 4.1 The Congolese agricultural sector study is an important tool for rural development planning and agricultural investment promotion. Despite the delay in its preparation, the study is now practically completed. It IV

15 allowed for the collection of basic agricultural and socio-economic data disaggregated by subsector and by Directorate, which made it possible to establish a database at the Ministry of Agriculture and Livestock and the Ministry of Fisheries. Agricultural land maps were prepared. These media helped to spotlight the situation of the agricultural and rural sector and to rationally plan its future development. An overall agricultural development master plan, monographs and priority development programmes were prepared for the country s 12 Directorates. A Gender Profile and an Environmental and Social Management Plan were also prepared. 4.2 The priority intervention programme identified by this study will constitute a choice tool for TFP operations, with a view to boosting public and private agricultural investments. Therefore, MAE needs to present the AgSS outputs to various partners to elicit the financing of the priority actions identified. To conveniently close this study and improve the impact of its results, it is recommended as follows: To the Government: (i) (ii) (iii) To leverage the study s results and achieve its ultimate objective, it is necessary to seek financing sources to implement the study s conclusions and recommendations regarding priority development programmes; Ensure the coverage of AgSS operating costs for the three-month period following the closing date, in order to monitor the last audit ; Forward to the Bank the memo appointing the acting Coordinator, following the death of the former Coordinator. To the Study Coordination Unit (i) (ii) Forward to the Bank a request for extension of the implementation schedule of the consulting firm s and external audit contracts; Complete installation of the study s data base in the Ministries of Fisheries and the Plan and in the 12 Directorates concerned; (iii) Organize a workshop to present the study s final outputs to TFPs before the end of 2012; (iv) (v) (vi) (vii) (viii) (ix) (x) (xi) (xii) Forward the unpaid invoices of the consulting firm, accounting technical assistance and the 2011 external auditor to the Bank for settlement, before 0/12/2012. For the 2012 and closing audits, the relevant invoices should be forwarded to the Bank as soon as the relevant report is approved; Ensure the presence of financial staff for up to three months, after the study s closing date. After the Grant s closing, their salaries should be covered by the counterpart contribution; Formalize the transfer of project assets to beneficiary entities; Finalize the 2012 financial statements to be the subject of the closing audit; Forward the financial statements to the auditor for opinion as soon as they are produced; Proceed with the financial closing of all contracts by ensuring that invoice payments for various balances owed to service providers are forwarded to the Bank before 0 December 2012 ; Reconcile the special account opened on behalf of the AgSS and close it on 0 December The remaining balance should be used to cover staff allowances for the period running up to 0 December forwarded the audit report of the fiscal year which ended on 1/12/2011 not later than 15/12/2012 and that of 2012 before 28/02/201; Finalize and communicate final reports of the study s third phase to the Bank, after their validation by MAE. V