REPUBLIC OF COTE D IVOIRE Union Discipline Labor

MINISTRY TO THE PRIME MINISTER, IN CHARGE OF BUDGET AND STATE PORTFOLIO -------------- SUMMARY OF COMMUNICATION IN THE COUNCIL OF MINISTERS ON BUDGET EXECUTION AS OF THE END OF MARCH 2016 REPUBLIC OF COTE D IVOIRE Union Discipline Labor -------------- I- Resources 1 (cf. annex 1 & 2) The resources mobilized as of the end of March 2016 amount to 1 161.6 billion CFA francs for a target set at 1 127.7 billion CFA francs, corresponding to an achievement rate of 103%. This achievement includes 1 141.2 billion CFA francs of budgetary resources (98.2% of total revenue) and 20.4 billion CFA francs of cash resources. 1. Budgetary resources: 1 141.2 billion CFA francs for a forecast of 1,106 billion CFA francs, representing an achievement rate of 103.2%. This achievement includes 83.6% of domestic resources and 16.4% of external resources. Domestic resources: 953.8 billion CFA francs against a forecast of 890.5 billion CFA francs (achievement rate of 107.1%); Tax revenues: 755.9 billion CFA francs against a target of 698.1 billion CFA francs (achievement rate of 108.3%). This is mainly due to: Tax on oil products: 85.1 billion CFA francs with a surplus of 21.3 billion CFA francs, due to the favorable evolution of international crude oil prices and a higher consumption of fuel than anticipated; Export taxes (Single Export Tax): 150.6 billion CFA francs with a surplus of 21.4 billion CFA francs related to a higher than expected volume of exported cocoa (+170 754 thousands of tons) and a more favorable than projected cocoa CIF price (1647.93 CFA francs/kg against a projected 1600 francs/kg); Coffee-cocoa registration duties : 55.0 billion CFA francs with a positive spread of 16.8 billion CFA francs compared to the target that can be explained by the relatively higher amount of cocoa subject to the formality of registration (+39.5%) and better prices than those used in the projections (1651 CFA francs/ kg against 1600 CFA francs/ Kg as projected). General merchandise: 185.7 billion CFA francs against a target of 180.5 billion CFA francs, representing a positive variance of 5.2 billion CFA francs related to a better growth of ordinary consumption volume (12.2% against a target 6.5%) and good recovery rate of issuances. However, the effect of these performances was offset by a deficit recorded on the telecommunication tax (-2.4 billion CFA francs) and the domestic Value Added Tax (VAT) (-2.1 billion CFA francs). Non-tax revenues: 12.4 billion CFA francs for a forecast of 12.5 billion CFA francs thanks to estate income (5.7 billion CFA francs), services receipts (4.7 billion CFA francs), and the rural investment fund (FIMR) (1.8 billion CFA francs). Issuance of government bonds: 185.5 billion CFA francs including 60 billion CFA francs of Treasury bills (in 2016) and 125.5 billion CFA francs from the recovering in 2016 of the SUKUK issued in December 2015. External resources: 187.4 billion CFA francs against a target of 215.4 billion CFA francs, representing an achievement rate of 87%. These external resources include drawings on 1 All amounts are in CFA francs 1/7

project-loans (129.9 billion CFA francs in line with targets) and grants to projects (57.6 billion CFA francs against a projected amount 85.6 billion CFA francs). 2. Treasury operations: 20.4 billion CFA francs of which 18.2 billion CFA francs allocated to VAT credits repayment and 2.2 billion CFA francs in VAT revenue to be allocated to the electricity sector. II- Expenditures (cf. annex 1) Expenditures by the end of March 2016 amounted to 1 007.4 billion CFA francs against a target of 1 164.7 billion CFA francs (i.e. an achievement rate of 86.5%). They include 987 billion CFA francs of budget expenditure (98%) and 20.4 billion CFA francs of treasury operations (2%). 1- Budgetary expenditures consist of : Public debt: 136.6 billion CFA francs including 72.2 billion CFA francs of domestic debt and an external debt of 64.3 billion CFA francs; Wages and Salaries: 343.1 billion CFA francs for a forecast of 359.8 billion CFA francs showing an under-consumption of 16.7 billion CFA francs, mainly explained by the delay in transmitting the first payment orders files for the 2016 new recruitments to payment services; Public utility charges: 14.3 billion CFA francs against 17.4 billion CFA francs projected. They cover electricity consumption (13.4 billion CFA francs) and telephone (1 billion CFA francs). The under-consumption is explained by the water bills payment order not being issued at the end of March 2016 due to a delayed transmission; Subsidies and other current transfers: They amount to 35.3 billion CFA francs and consist primarily of subsidies to National Public Establishments (11.6 billion CFA francs), transfers to Côte d Ivoire embassies and representations abroad (4.9 billion CFA francs), subsidy to the electricity sector (1.3 billion CFA francs), scholarships and school kits (3.3 billion CFA francs) and transfers to districts and municipalities (1.6 billion CFA francs); Other current expenditures: 94.6 billion CFA francs against a forecast of 106.3 billion CFA francs. They mainly include services operating expenses (94 billion CFA francs) and 0.5 billion CFA francs of targeted social spending; Investment expenditure: 349.2 billion CFA francs against a target of 455.5 billion CFA francs, i.e. an achievement rate of 76.6%. These expenditures were financed at 46.3% by domestic resources and at 53.7% by external resources; Post-election crisis expenditure: 13.9 billion CFA francs including expenditures relating to the National Security Council's activities (6.4 billion CFA francs), elections (4.7 billion CFA francs) and the Authority for Disarmament, Demobilization and Reintegration (2.8 billion CFA francs). 2- Treasury operations: 20.4 billion CFA francs on VAT credits repayments (18.2 billion CFA francs) and the transfer of the VAT quota allocated to the electricity sector (2.2 billion CFA francs). III- Analysis of investments absorption capacity (cf annex 3) 2/7

Investment expenditures (excluding post-crisis expenditures) at end-march 2016 amounted to 349.2 billion CFA francs, corresponding to an execution rate of 19.9% of the annual allocations, and is lower than the level at end-march 2015 which was 27.7%. The gap is partly explained by the reorganization of the government during the first quarter 2016. The Ministry in charge of Budget sent letters to the relevant ministries to draw their attention to the need to accelerate the pace at which investment expenditures are being executed. The analysis of the investment expenditures according to ministries and institutions absorption capacity is as follows: Twenty-nine (29) ministries consumed less than 25% of their investment funds; Eleven (11) ministries and institutions registered an implementation rate between 25% and 50%; Three (03) ministries consumed more than 50% of their investment funds. Following resolution of administrative issues related to the reorganization of the government in January 2016 and increased monitoring through follow-up, (including letters to be sent to Ministers on specific projects), the absorption capacity is expected to improve in the second quarter of the year. IV- Analysis of pro-poor spending (cf annex 4) Expenses relating to the fight against poverty and reduction of social disparities amounted to 397 billion CFA francs above the floor target of 346.6 billion CFA francs, reflecting an achievement rate of 114.5%. V- Payments Payments made by the Public Accountants at end-march 2016 amounted to 710.4 billion CFA francs for a total of 1 007.4 billion CFA francs of payment orders. Those payments include: Public debt : 136,6 milliards CFA francs ; Current expenditures : 464.2 billion CFA francs (wages and salaries: 343.1 billion CFA francs, transfers and subsidies 26.6 billion CFA francs, other current expenses: 94.5 billion CFA francs); Investment : 109,6 billion CFA francs. It is worth noting that expenditures incurred through advances amounted at 52.6 billion CFA francs, against only 20 billion CFA francs over the same period in 2015. Conclusion At the end of the first quarter of 2016, mobilization of domestic resources, especially taxes, is in line with the targets set and expenditures have been executed within the authorized limits. The trend of resource mobilization, especially domestic resources, will be maintained in the context of ongoing reforms, with a view to achieving the annual targets. As for investment expenditures, the services efforts should continue and even increase in order to improve the pace of investment execution from the second quarter as expected. 3/7

End-March End-March DESCRIPTION Target Implementation Target Implementation BUDGETARY RESOURCES 1 106,0 1 141,2 BUDGETARY EXPENDITURES 1 143,0 987,0 Domestic Resources 890,5 953,8 Public debt 139,7 136,6 Tax revenues 698,1 755,9 Domestic debt 73,9 72,2 General Tax Directorate (DGI) 322,9 330,3 Principal 46,9 46,8 FER included Interests 27,0 25,4 THE TREASURY 1,7 4,1 External debt 65,8 64,3 DGD DESCRIPTION Customs (excepted PCC, PCS et SGS) ANNEX 1 : BUDGETARY FRAMING (Implementation status as of the end of March 2016) (Figures in billion CFA francs) 373,5 421,5 Principal 27,2 23,7 FER included 14,9 Interests 38,6 40,6 Non-tax revenues 12,5 12,4 Current expenditures 540,5 487,3 Privatization and asset sales 0,0 0,0 Staff 359,8 343,1 Transfer of businesses 0,0 0,3 Subscription 17,4 14,3 Estate incomes DGI 6,2 5,7 Subsidies and transfers 57,0 35,3 Telecommunication License 0,0 0,0 Including subsidy to the electricity sector 5,7 0,0 Additional resources Integration C2D 0,0 0,0 Other operating expenses 106,3 94,6 Rural area investment funds 3,5 1,8 Army fuel 3,1 0,0 Other non-tax revenues 2,8 4,7 Targeted social expenses 0,0 0,5 Services operating expenses 103,1 94,0 Borrowing on financial and capital markets 180,0 185,5 Post-crisis expenditures 7,3 13,9 Bond loans 120,0 0,0 Domestic funding 7,3 13,9 Treasury bills and bonds 60,0 185,5 Including investment 0,0 7,8 Eurobonds 0,0 0,0 External funding 0,0 0,0 External resources 215,4 187,4 Investment expenditures 455,5 349,2 Budget support 0,0 0,0 Domestic funding 240,1 161,8 IMF 0,0 0,0 Presidential Emergency Program 26,4 26,4 World Bank 0,0 0,0 Construstion of Soubré dam 3,5 3,5 French Development Agency (AFD) (C2D) 0,0 0,0 C2D Projects 36,9 0,0 ADB 0,0 0,0 Universal Health Care Coverage (CMU) 0,0 4,1 EU 3 rd bridge construction 0,0 0,0 FIMR Investment 3,5 1,8 External funding 215,4 187,4 External funding 215,4 187,4 Programs donations 0,0 0,0 Projects donations 85,6 57,6 Projects donations 85,6 57,6 Projects loans 129,8 129,9 Projects loans 129,8 129,9 TREASURY OPERATIONS (II) 21,7 20,4 TREASURY OPERATIONS (II) 21,7 20,4 VAT revenues used to repay VAT credits 18,2 18,2 Reimbursement of VAT credits 18,2 18,2 Electricity sector VAT 3,5 2,2 VAT repaid to electricity sector 3,5 2,2 TOTAL GENERAL 1 127,7 1 161,6 TOTAL GENERAL 1 164,7 1 007,4 4/7

ANNEX 2 EVOLUTION OF BUDGETARY TAX REVENUES (Implementation status as of the end of March) DESCRIPTION Target END-MARCH Implementation In billion CFA francs GAP (Imp-Targ) BUDGETARY TAX REVENUES 698,1 755,9 57,8 General Tax Directorate (DGI) 322,9 330,3 7,5 Direct taxes 139,6 139,2-0,5 Business profits tax on oil and gas 13,0 10,3 - Business profits tax on oil 0,0 0,0 - Business profits tax on gas 13,0 10,3-2,7 Other direct taxes excepted oil and gas 126,6 128,9 - Business profit tax excepted on oil 11,2 12,4 1,2 - Combined tax and Income Tax Prepayment for Informal Sector (AIRSI) 5,1 4,8-0,2 Taxes on income and payroll 100,8 103,1 2,2 Contribution for crisis recovery (former Contribution for National Reconstruction -CRN-) 0,0 0,0 Property taxes 0,0 0,0 0,0 Capital gains taxes /IRC 9,5 8,6-0,9 Indirect taxes 183,2 191,2 7,9 VAT (excluded electricity sector share) 75,6 73,5-2,1 Tax on Stock Exchange Operation (TOB) 13,7 14,0 0,3 Taxes on beverages and tobacco 9,8 9,5-0,3 Registration and stamp duties 52,1 67,8 15,7 Including cocoa-coffe registration 38,2 55,0 16,8 Patents and Licenses 4,8 5,3 0,6 Taxes on oil exploitation 0,0 0,0 Taxes on gas exploitation 6,5 4,4-2,1 Taxes on telecommunication 14,7 12,3-2,4 Special taxes on telephone services 5,7 3,8-1,8 Taxes on rubber 0,0 0,0 Taxes on mining additional profit 0,0 0,0 Other indirect taxes 0,4 0,4 TREASURY 1,7 4,1 2,4 Direct taxes 1,5 3,7 2,3 Taxes on income and payroll 1,5 3,7 2,3 Property taxes (y/c RS 15% Rent) 0,0 0,0 Indirect taxes 0,2 0,3 0,1 RS 10% 0,0 0,0 Patents and licenses 0,0 0,0 Stamps and car registration stickers 0,2 0,3 Other indirect taxes 0,0 0,0 DGD (Customs excepted PCC, PCS et SGS) 373,5 421,5 47,9 Import duties and taxes 244,3 270,8 26,5 Taxes on oil products 63,8 85,1 21,3 Taxes excluded oil products (excepted SGS, PCS et PCC) 180,5 185,7 5,2 Export taxes 129,2 150,6 21,4 5/7

ANNEXE 3: IMPLEMENTATION STATUS OF INVESTMENT EXPENDITURES (EXCLUDING POST CRISIS SPENDING) BY MINISTRY AND INSTITUTIONS AS OF THE END OF MARCH 2016 Ministries/Institutions Allocation 2016 (budget) Allocation 2016 (adjusted budget) 2 Implementation End-March 2016 (In CFA francs) Implementation rate Based on Based on adjusted budget budget Ministry of Technical Education and vocational Training 11 299 644 158 11 299 644 158 0 0,0% 0,0% Ministry of Woman empowerment, Family and Child welfare 1 392 276 709 1 392 276 709 0 0,0% 0,0% Ministry of Solidarity, Social cohesion and Victims compensation 600 000 000 600 000 000 0 0,0% 0,0% Ministry of Human Rights and Public freedoms 1 089 105 785 1 089 105 785 0 0,0% 0,0% Ministry of African integration and Ivorians abroad 5 183 075 166 5 183 075 166 0 0,0% 0,0% Ministry of Urban waste management and Sanitation 9 948 409 633 9 948 409 633 0 0,0% 0,0% Ministry of Housing and social housing 25 920 653 235 25 920 653 235 0 0,0% 0,0% Ministry of Education 103 035 645 187 97 239 745 187 53 979 509 0,1% 0,1% Ministry of Sports and Leisure 20 561 769 915 20 561 769 915 40 000 000 0,2% 0,2% Ministry of Waters and Forestry 6 628 900 000 6 628 900 000 14 875 000 0,2% 0,2% Ministry of Environment and Sustainable Development 7 576 372 040 7 576 372 040 22 891 000 0,3% 0,3% Ministry of Industry and Mining 32 631 460 896 4 062 150 819 104 500 000 0,3% 2,6% State Ministry of Interior and Security 17 604 191 489 17 604 191 489 236 853 456 1,3% 1,3% Ministry of Communication 1 063 979 127 1 063 979 127 22 796 906 2,1% 2,1% Ministry of Livestock and Fishery 3 969 708 124 3 690 008 124 87 415 552 2,2% 2,4% Ministry of Construction and Urbanism 6 112 548 333 6 112 548 333 143 750 000 2,4% 2,4% Ministry of Culture and Francophonie 1 114 592 076 1 114 592 076 29 949 056 2,7% 2,7% Ministry of Foreign Affairs 3 495 411 456 3 495 411 456 110 000 000 3,1% 3,1% Ministry of Digital economy and Post office 6 793 863 242 6 793 863 242 224 895 000 3,3% 3,3% Ministry of Economic Infrastructures 459 764 048 871 459 764 048 871 17 301 918 604 3,8% 3,8% Ministry to the Prime Minister in charge of Economy and Finance 82 085 421 245 82 085 421 245 3 612 360 025 4,4% 4,4% Ministry of National Entrepreneurship, Crafts and SME promotion 3 245 226 633 3 245 226 633 174 329 739 5,4% 5,4% Ministry of Civil Service and Modernization of Administration 1 815 859 415 1 815 859 415 112 500 000 6,2% 6,2% Ministry Delegate to the Presidency of the Republic, in charge of Defense 2 633 829 629 2 633 829 629 289 580 539 11,0% 11,0% Ministry of Tourism 1 595 123 061 1 595 123 061 212 500 000 13,3% 13,3% Ministry for Employment and Social welfare 23 635 357 127 23 635 357 127 4 087 750 000 17,3% 17,3% Ministry to the Prime Minister in charge of Budget and State Portfolio 257 259 485 627 186 615 455 263 47 838 622 850 18,6% 25,6% Ministry of Trade 501 464 962 501 464 962 100 000 000 19,9% 19,9% Ministry of Agriculture and Rural Development 71 813 648 097 71 813 648 097 17 858 881 478 24,9% 24,9% National Assembly 1 100 000 000 1 100 000 000 275 000 000 25,0% 25,0% Independant Electoral commission 330 888 358 330 888 358 82 722 090 25,0% 25,0% General Prosecutor Office 200 188 266 200 188 266 50 047 067 25,0% 25,0% Mediator 157 422 622 157 422 622 39 355 656 25,0% 25,0% Ministry of Justice 16 573 841 678 16 573 841 678 4 958 502 321 29,9% 29,9% Prime Minister s Office 49 766 869 697 49 766 869 697 15 510 299 399 31,2% 31,2% Ministry of Petroleum and Energy 126 643 903 940 126 643 903 940 41 971 213 541 33,1% 33,1% General Accounting Office 595 180 650 595 180 650 222 590 325 37,4% 37,4% Ministry of Health and Public hygiene 125 318 458 175 125 318 458 175 48 000 939 233 38,3% 38,3% Presidency of the Republic 10 567 625 560 10 567 625 560 5 041 906 390 47,7% 47,7% Ministry of Plan and Development 14 261 878 359 14 261 878 359 6 824 561 500 47,9% 47,9% Ministry of Youth advancement, Youth employment and civic Service 16 325 543 134 16 325 543 134 8 355 385 782 51,2% 51,2% Ministry of Higher Education and Scientific Research 45 391 337 181 45 391 337 181 34 861 593 567 76,8% 76,8% Ministry of Transport 74 794 265 501 74 794 265 501 68 067 750 000 91,0% 91,0% Total 1 652 398 474 359 1 547 109 533 918 326 942 215 585 19,8% 21,1% Special Accounts 102 644 573 833 102 644 573 833 22 226 372 115 21,7% 21,7% General total 1 755 043 048 192 1 649 754 107 751 349 168 587 700 19,9% 21,2% Source : DGBF 2 In order to assess the ministries actual absorption capacity, their allocations were adjusted by deducting credits assigned to certain projects, especially grants implemented by the donors themselves. 6/7

ANNEXE 4: IMPLEMENTATION STATUS OF PRO-POOR EXPENDITURES AS OF THE END OF MARCH 2016 2015 2016 Amounts in unit Implementation as of IMPLEMENTATION Budget end-march 01 Agriculture and Rural Development 111 157 837 633 96 186 704 508 18 742 379 379 01.0 General Administration 47 652 176 330 49 353 735 500 5 877 038 762 01.1 Development and agriculture promotion program 23 981 774 265 14 923 986 317 6 615 866 172 01.2 Training and mentoring 19 436 590 683 11 988 356 391 3 087 895 818 01.3 Hydro-agricultural planning 9 189 822 550 6 020 626 300 1 411 206 575 01.4 Other rural areas investments (FRAR, FIMR) 10 897 473 805 13 900 000 000 1 750 372 115 02 Fishery and Livestock 9 801 338 621 9 576 542 638 1 257 360 288 02.0 General Administration / Training and mentoring 6 628 091 355 5 057 879 669 1 132 212 736 02.1 Support for livestock and dairy production 2 683 492 610 1 904 712 969 119 572 552 02.2 Fishing and aquaculture 489 754 656 2 613 950 000 5 575 000 03 Education 991 618 543 157 1 190 927 291 146 238 437 450 192 03.0 General Administration 26 220 760 156 37 034 447 321 3 225 668 181 03.1 Preschool and primary education 399 713 539 373 520 137 329 671 78 436 782 961 03.2 Literacy programs 345 804 014 619 014 915 03.3 General secondary and technical education and vocational training 320 885 672 695 369 635 511 146 74 866 386 010 03.4 Higher education and scientific research 197 952 766 919 220 000 988 093 73 208 613 040 03.5 Presidential Emergency Program / Education component 46 500 000 000 43 500 000 000 04 Health 279 499 757 527 351 866 819 806 94 120 211 205 04.00 Health General Administration 133 395 930 970 161 615 775 161 32 704 174 655 04.01 Health-care system 62 301 953 930 74 021 296 825 9 581 645 961 04.02 Preventive health care (extended vaccination program) 2 874 340 018 2 857 198 977 11 069 034 04.03 Program against diseases and epidemics 5 302 477 154 38 739 798 499 34 374 188 018 04.04 Maternal and child health care and nutrition 10 725 437 243 2 368 622 337 36 000 000 04.05 HIV/AIDS 1 794 988 867 4 245 552 504 1 579 976 692 04.06 Teaching hospitals and specialized medical institutions 43 104 629 345 48 018 575 503 11 833 156 845 04.7 Presidential Emergency Program / Health component 20 000 000 000 20 000 000 000 4 000 000 000 05 Water and sanitation 74 819 315 150 89 118 240 447 7 848 146 753 05.1 Acces to drinking water and sanitation 32 492 082 927 38 842 770 161 652 079 487 05.2 Protection of environment and fight against pollution 15 327 232 223 20 275 470 286 1 196 067 266 05.4 Presidential Emergency Program / Safety and sanitation component 13 500 000 000 13 500 000 000 2 700 000 000 05.5 Presidential Emergency Program / Drinking water component 13 500 000 000 16 500 000 000 06 Energy 53 554 713 180 38 371 373 356 6 245 071 565 06.1 Acces to electricity 40 054 713 180 24 871 373 356 3 545 071 565 06.2 Presidential Emergency Program / Electricity component 13 500 000 000 13 500 000 000 2 700 000 000 07 Roads and bridges 155 613 116 966 120 699 921 204 18 490 836 976 07.1 Maintenance of rural roads 7 289 158 562 6 944 377 764 1 374 512 643 07.2 Bridges construction 12 087 272 054 20 752 028 910 147 000 000 07.3 Other road works 107 992 686 350 68 003 514 530 11 969 324 333 07.4 Presidential Emergency Program / Maintenance and landscaping 28 244 000 000 25 000 000 000 5 000 000 000 08 Social Affairs 28 782 683 711 24 124 762 874 5 218 462 741 08.0 General Administration 23 147 629 038 17 817 353 841 5 018 494 277 08.1 Training for women 507 532 657 509 904 537 08.2 Orphanages, nurseries and community centers 2 876 309 952 3 107 994 566 9 753 336 08.3 Support staff training 1 928 240 216 1 793 558 930 190 215 128 08.4 Care of indigents, victims of war and disasters 322 971 848 895 951 000 09 Decentralization (except education, health and agriculture) 47 962 927 527 61 237 018 023 6 261 500 051 09.1 Decentralization 47 962 927 527 61 237 018 023 6 261 500 051 10 Reconstructions et rehabilitations 14 227 787 001 5 150 000 000 10.1 Reconstruction et rehabilitation 145 816 389 150 000 000 10.2 Housing and social housing 14 081 970 612 5 000 000 000 11 Other areas of fight against poverty 3 140 850 791 11 218 455 738 349 317 913 11.1 Young people advancement and integration 1 183 488 084 8 707 687 569 37 697 430 11.2 Support and follow-up of Poverty Reduction Strategy Paper (PRSP) 127 199 881 473 500 000 11.3 Development of tourism and handicraft 1 830 162 826 2 037 268 169 311 620 483 TOTAL 1 770 178 871 264 1 998 477 129 740 396 970 737 126 Source: SIGFiP-DGBF 7/7